worst

April 16, 2016 Mutual Funds No Comments

Hedge funds post worst stock picking in 7 years

Hedge funds post worst stock picking in 7 years Hedge funds posted their worst quarterly stock picking performance since the financial crisis last quarter, according to data from a major Wall Street firm. The woeful returns came during a little-changed market so far in 2016, just the kind of environment … Continue reading at cnbc.com […]

March 24, 2016 Earnings No Comments

2015 Was the Worst Year for S&P 500 Earnings Since the Crisis

2015 Was the Worst Year for S&P 500 Earnings Since the Crisis The final big company to release last year’s earnings is heavily-shorted GameStop, which reports fourth-quarter results after the close Thursday. No matter the result, the S&P 500 is sure to see earnings contract for the full year for the first time … Continue […]

March 14, 2016 Personal No Comments

Personal finance website says Bakersfield is one or the worst cities for basketball fans

Personal finance website says Bakersfield is one or the worst cities for basketball fans According to personal finance website WalletHub, basketball is the third most followed sport in America. Taking this into account and with March Madness in full swing, the website found 2016’s Best & Worst Cities for Basketball Fans. WalletHub’s … Continue reading […]

March 8, 2016 Mutual Funds No Comments

Best And Worst Q1’16: Mid Cap Blend ETFs, Mutual Funds And Key Holdings

Best And Worst Q1’16: Mid Cap Blend ETFs, Mutual Funds And Key Holdings The Mid Cap Blend style ranks sixth in Q1’16. Based on an aggregation of ratings of 18 ETFs and 319 mutual funds. XMLV is our top-rated Mid Cap Blend ETF and LSIRX is our top-rated Mid Cap Blend mutual fund. Figures 1 […]

March 4, 2016 Large Cap No Comments

Best And Worst Q1’16: Large Cap Value ETFs, Mutual Funds And Key Holdings

Best And Worst Q1’16: Large Cap Value ETFs, Mutual Funds And Key Holdings Figures 3 and 4 show the rating landscape of all Large Cap Value ETFs and mutual funds. Sources: New Constructs, LLC and company filings Disclosure: David Trainer and Kyle Guske II receive no compensation to write about any specific stock, style … […]

March 2, 2016 Personal 18 Comments

2016’s Best & Worst Cities At Money Management

2016’s Best & Worst Cities At Money Management Money management is a life skill that unfortunately doesn’t come with a manual. If it did, and assuming everyone followed the rules, we’d all have flawless credit and zero debt. Plus, sites like WalletHub wouldn’t exist. But the average credit score … Continue reading at valuewalk.com WalletHub […]

February 29, 2016 Headlines One Comment

Carl Icahn posts worst loss since 2008

Carl Icahn posts worst loss since 2008 Carl Icahn looks at charts on a projection screen during a media conference at the St. Regis on February 7, 2006 in New York City. (Photo: Michael Nagle, Getty Images) NEW YORK — Billionaire investor Carl Icahn, who briefly flirted with a stint as Donald … Continue reading […]

February 1, 2016 Headlines No Comments

Worst may finally be over for Chipotle

Worst may finally be over for Chipotle Chipotle shares surged 5% in premarket trading Monday following reports that the Centers for Disease Control and Prevention may soon declare that the E. coli outbreak at the popular Mexican food chain is over. The Wall Street Journal reported that the CDC … Continue reading at money.cnn.com The […]

"The housing bubble will burst rather than gradually deflate, following the rapid and violent pattern of decline of nearly every financial bubble throughout history," Lubaszka says. "Higher interest rates negatively impact not only the health of the housing market but other economic segments as well. The stock market takes a hit because higher rates make it more costly for companies to pay for debt. Higher rates hurt corporate profit margins and reduce stock value, bad news given the deep debt situation so many companies are in today."

While ranking providers are careful to warn investors that their ratings don't foretell the future, the star system is, unfortunately, used by some investors as if they were reading Consumer Reports to purchase a new drill. Supporters of the ranking approach argue that there's no subjective component to the star rating. It isn't determined by an analyst's review, and can't change simply because the service dislikes the fund's manager or its investment strategy. And that's good.

Past performance is no guarantee of the future. You have probably heard this disclaimer a thousand times before, but it is really important to understand. Most rating systems have little to no predictive element in them. It's natural to think that the best performer of the past will be the best performer in the future. Unfortunately, it's not that simple. Just think about it; if it were that easy, investors would just continue to buy last year's winners knowing that they will be this year's winners. And that seldom works.