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,
Barron's 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. 
Edited by:
Tommy Fernandez
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