I’ve posted Entry #112 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s titled Predicting the Past.
Juicy Excerpt: The predictions cannot be wrong. In the event that we see very different returns than those “predicted,” the caveat that always applies to the work product of the calculator comes into effect. If we see things we have never seen before, the calculator isn’t supposed to work. And it won’t. So don’t look for me ever to say that there’s anything wrong with it!