What back-testing does not tell …

Once again, a superb post by Ben Carlson.

10 Things You Can’t Learn From a Backtest

Those who love back-testing data should take the results with a pinch of salt.

One line that I liked the most in this post is “Unfortunately there is no such thing as a front-test.” And add to it the disclaimer from mutual funds “past performance may or may not be sustained in future.”

#RidingTheRollerCoaster

 

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