In your interest.
Online Personal Finance Magazine
No beating about the bush.
Why do investors latch on to past performance of funds even though it has little correlation with the future? Debashis Basu explains
In our last issue, we discussed how a study by Litman/Gregory Fund Advisors (LGFA) “failed to unearth a significant positive correlation between past relative performance and future relative performance.” However, the idea that the past gets repeated is firmly...