Past performance is not indicative of future results

by Seth Godin
This is clearly and demonstrably true of mutual funds. It's easy to confirm. And yet... We are very uncomfortable with randomness. So the newspaper does a 12 page section of mutual funds, filled with articles and ads and charts, all touting past performance. Superstition is what we call the belief in causation due to a mistaken correlation of unrelated data.Read the full article