How to view financial history in an evidence-based approach

Lee stresses that historical financial data and analysis needs to be understood in the context of its particular economic and monetary conditions. He says that using the Bloomberg tool BQuant, his team can look at how different metrics perform during different investment climates and regimes. The vast and growing wealth of research conducted on financial performance in these different regimes can be instructive.

Lee also emphasized that a view of historical performance in the context of its times is helpful now, as after the COVID-19 pandemic and post-pandemic inflation, the world has returned to far more ‘normal’ monetary conditions of…