The most prevalent disclaimer in the investments world goes something like this – “past performance may not be repeated”. If you don’t believe us, just read the disclaimer at the end of this report. Despite the prevalence of this disclaimer, investors often place the lion’s share of their decision making process on past performance, sometimes just recent performance. With this comes a number of dangers, not just for the investment selection process but for overall portfolio construction and diversification. While past performance should not be ignored, it should be viewed with a certain lens that goes beyond the simple numbers and brings in other factors such as an investment’s role in the portfolio and the market environment.