Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: scotthorn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19257  
Subject: Hey, wait a minute... Date: 12/5/2000 7:45 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
It is my understanding that the FF was backtested extensively. What that means is that assumptions were made and tested until they fit historical data. That may not make the statistical analysts happy, but does not necessarily make it a "bad" model.

It is only bad this year. I don't recall that the FF ever guarranteed good returns in EVERY year.

It is true that, "past performance may not be a predictor of future results," but there are many sound principles involved in the FF theory.

Retiring the retiree FF makes sense because of low interest and few responses. I, for one, am not sure that the FF theory is fatally flawed. Maybe someone would point me to some other stock screens that can show results over the long term (other than the S&P index). What do the statistitians have to say about those?

We shall see.

Scott
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement