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Author: scotthorn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19511  
Subject: Hey, wait a minute... Date: 12/5/2000 7:45 PM
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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.

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