Step #1 — Past Performance is No Way to Select Funds

After reviewing decades of mutual fund performance, noted financial markets academic and Nobel Prize winner William Sharpe concluded that “past performance is a thin reed for how to predict future performance. Expense ratios and turnover are generally better predictors." My research studies reach the same conclusion. My reports are graphic and colorful. Financial consultants report that my color-scheme concept has been instrumental in convincing investors that following past performance is counter productive. Convincing
prospects and clients alike that selecting funds based on past performance is fools gold is
step number one in the presentation and process.