Maybe backtests aren't all they're cracked up to be.
Following on the heels of a previous article warning about the failings of backtesting
columnist Brendan Conway wrote another article looking at the potential pitfalls of a fund's backtest
In the article, Conway cites a column by Morningstar ETF strategist, and MorningstarETFInvestor editor Samuel Lee
Apparently there are a lot of ways that a backtest can turn up bupkis. Among the important things to look for are strong economic intuition, intellectually honest sources and simple and transparent methodologies, among other things.
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