Tilting at Windmill Jobs - WSJ.com:
"...it's worth recalling that Mr. Obama's economists predicted late last year that the stimulus would keep the jobless rate from exceeding 8%. That was a percentage point and a half ago."
The CFA Institute's Global Investment Performance Standards prohibits firms from annualizing return data for periods less than one year. One need only see a 1% weekly return presented as a potential 68% annual return to see why.
In the real world, annualizing returns for partial periods is no different than trying to predict the future. And no matter how smart a firm's investment team has demonstrated itself to be, nobody can predict the future with reliability.
Unfortunately for the real world, their are no GIPS reporting and presentation standards for politicans. I've often wondered though, whether a politican with a CFA needs to adhere to the Code of Ethics.
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