Yet, for equity mutual funds, high past returns are a poor predictor of high future returns.
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The money-tracking firm found no persistent link between past equity-fund performance and future returns.
Past returns are no guarantee of future returns, but they can sure make one look good.
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But as any investor knows, projecting future returns is an inexact science, at best.
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They cannot control the level of future returns but they can do something about costs.
When share valuations are high, future returns are likely to be low and vice versa.
There is much to be said for connoisseurship and its second derivative huge future returns.
Mutual fund executives are as aware as anyone that the link between past performance and future returns is tenuous.
For future returns, correlations over the next 21 and 63 trading days were -0.06 and -0.06, respectively.
In other words, by reducing the principal investment, front-end charges permanently impair the future returns to investors.
She said the foundation would not file amended tax returns, although directors would be listed on future returns.
Of more immediate concern than the possible future returns on as-yet-undeveloped gambling mechanics.
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Deutsche uses the tools to predict not just future returns but also volatility.
But past performance is no guarantee of future returns, which is why portfolio construction is part engineering and part art.
Yet it was still about internal operations and ostensibly better future returns for shareholders as a result of operational enhancements.
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As great as the temptation is to chase the hottest fund or sector, past performance is a dismal predictor of future returns.
Aldo Mazzaferro, an analyst at Macquarie Securities, an investment firm in New York, says future returns are likely to be more modest.
What investors need to do, Mr. Gross argues, it to stay invested in the market, but temper their expectations about future returns.
Keep in mind that past performance is no guarantee of future returns.
As with all investing, however, past outperformance does not guarantee future returns.
If future returns are lower, consumers will need to tighten their belts.
But B2B is a marathon not a sprint and the hand you shake today may provide future returns beyond what you thought possible.
The initial one-time cost is obvious, but investors also incur the opportunity cost of less money in the fund to earn future returns.
Also, for financial reasons, REITS might be forced to sell trees into a weak market to maintain the healthy payouts investors expect, cutting into future returns.
As more money piles into the business, groups could lose their focus, and competition could push up the prices for deals and force down future returns.
Furthermore, we found in the 50 years of data that there was a strong correlation between the size of the earnings yield spread and expected future returns.
We know that past performance does not guarantee future returns.
But if policy favors a weak dollar, investors have greatly reduced incentives to back new ventures given an understandable aversion to future returns that will come back in devalued dollars.
Though the new research seems to give investors an edge in finding good actively managed funds, don't forget that the most proven indicator of future returns continues to be low fees.
On the one hand, high past returns are an indicator of low future returns: that has certainly proved true for those who bought equity mutual funds at the turn of the decade.
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