Do Not Annualize a Short Period Naively
Block ID: 6e3d1292-bad4-451e-aa86-dfdb39945a0f
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Do not annualize a short or cherry-picked period to make a rate look better. Multiplying a strong month by twelve or a good quarter by four projects a favorable stretch as if it were typical and wildly overstates the expected return. Do not present such an extrapolation as an annual figure — annualize with proper compounding over a representative window, or don't annualize at all.
financialnegativeconstraintreturns
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Submitted by James P FounderMod via mcp · 2026-07-19