
If only we had a crystal ball or another device to predict the future. From the general wondering about the enemies next move, to the soldier hoping their equipment will work. In the corporate boardroom estimating the competitions next move, to the maintenance manager ordering spare parts, we have many uses for knowing the future.
We often look to past performance to provide an indication of the future. Has this mutual fund regularly provided adequate returns? If so, we predict it will going forward. And anyone that has reviewed mutual fund performance also has read or heard the admonishment to not use past performance to estimate future returns. Mutual funds, markets, business and battlefields all change and respond in sometimes unforeseen ways. [Read more…]