Believing Performance Claims: A Triumph of Hope Over Experience
by Mark Hulbert
I am constantly bombarded with questions about investment advisers that my Hulbert Financial Digesthas not been monitoring.
Inevitably, the inquiries focus on alleged performance that is tantalizingly good—so good, in fact, that even if actual performance were only half as good, it still would justify our immediately allocating all our investment portfolios to following the adviser or strategy in question.
My reply is always the same: Don’t believe it.
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