In financial planning, what key feature do trends represent?

Trends in financial planning represent patterns of increase or decrease over time. This concept is crucial because identifying trends allows analysts and decision-makers to predict future performance based on historical data. By recognizing these patterns, financial planners can make more informed strategic decisions and forecasts. Trends help in understanding the overall direction of an economy, a market, or a specific financial metric, enabling better risk management and investment strategies. Recognizing whether a trend is upward or downward can significantly influence business operations and allocation of resources.