WATCH THOSE EQUITIES: Historical trends only part of story.(Nicholas C. Barberis wins Paul A. Samuelson Award)(Brief Article)

Pensions & Investments, December, 2000 by Burr, Barry B.

History may be bunk when it comes to extrapolating future performance, according to a new award-winning analysis. Nicholas C. Barberis of the University of Chicago was named the winner of the Paul A. Samuelson Award - which formally recognizes ``outstanding scholarly writing on lifelong financial security'' - for his study cautioning investors on their optimism in using the upbeat historical trend in stock prices to make high allocations to equities.

The award, sponsored by TIAA-CREF, New York, carries a $20,000 prize. Mr. Barberis, associate professor of finance, Graduate School of Business, University of Chicago, points out ``there are only about 70 years of meaningful data on the stock market's behavior. That relatively limited picture isn't reliable...

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