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Make Your Next Vacation Your Best Vacation!®

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Travel planning inspired by Vanguard - past performance

Susan Wolfson

This time of year many investors hear the words "past performance can not be used to predict future returns".  In fact today I received a note from Vanguard discussing this very phenomena.  They called it past performance bias.  Here's the premise:  in many areas of life, performance from one time period to another is consistent.  For example, if you had a really good experience eating at a restaurant, chances are good that you'll enjoy your next meal at the same restaurant.   But in investing (ie: stocks and bonds) this is not necessarily true.  Vanguard suggests that there are three factors to making better decisions about investing:  Education, Discipline and Focusing on what you can control.  I thought it would be interesting to see if these also apply to vacation planning.

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