Mutual Fund Past Performance Monkey Business: BEWARE
Jul 26, 2010
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Soon to be released study from the Journal of Empirical Legal Studies (Sept. 2010) shows that Mutual Fund Past Performance means nothing but is used to seduce and swindle investors. In this video and attached report, you will see exactly why looking at past performance of mutual funds is a cardinal sin (possible an unforgivable sin). The best part is they recommend the SEC require the following Disclosure on Mutual Funds:
‘Do not expect the fund’s quoted past performance to continue in the future. Studies show that mutual funds that have outperformed their peers in the past generally do not outperform them in the future. Strong past performance is often a matter of chance.’
Key components Empirical Study PDF (Key pages selected)
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