Sam (not verified) — POSTED October 18th, 2008 9:19PM
Interesting perspective. I'm confused about this though...
"Our fund metrics are designed to help fund investors avoid funds that are likely to fall - the very funds attracting the most money after posting big returns. Most fund ratings and rankings only direct attention to the overvalued - they encourage performance chasing."
...seems to contradict with the fact that investors have already fled from these funds to what they perceive as safer funds (hence the bigger drop in foreign markets than the S&P). Your methodology must assume that there will continue to be flight from these funds and these markets will continue to drop while the US markets rebound?
Also, it is rather interesting that the dollar has strengthened recently vs. many other currencies. Does your methodology account for the amount of dollars the US is pumping into the system may have a long-term adverse effect on its comparative position. That is, could the return expected on US stocks be tempered or negated by the fact that US dollar's position is at risk of being debased by the amount being pumped into the system?
Interesting perspective. I'm confused about this though...
"Our fund metrics are designed to help fund investors avoid funds that are likely to fall - the very funds attracting the most money after posting big returns. Most fund ratings and rankings only direct attention to the overvalued - they encourage performance chasing."
...seems to contradict with the fact that investors have already fled from these funds to what they perceive as safer funds (hence the bigger drop in foreign markets than the S&P). Your methodology must assume that there will continue to be flight from these funds and these markets will continue to drop while the US markets rebound?
Also, it is rather interesting that the dollar has strengthened recently vs. many other currencies. Does your methodology account for the amount of dollars the US is pumping into the system may have a long-term adverse effect on its comparative position. That is, could the return expected on US stocks be tempered or negated by the fact that US dollar's position is at risk of being debased by the amount being pumped into the system?