Irwin Schrödinger used his cat to explain a peculiar fact ofquantum physics known as the “superposition of states.” In histhought experiment, using the kind of mathematics you only see innightmares, Schrödinger proved the cat can be both alive and deadat the same time. Weird, right? 

I mention this as a way to introduce the controversy of the“superposition of states” of Morningstar's Star Ratings. Shouldthey be used as a predictive reference, or should they be viewedsolely as a historical evaluation? 

A 1996 academic study showed Morningstar's Star Ratings had nopredictive value, and Morningstar concurred. Advisors pointed tothis study to support their views. But Morningstar has sincechanged its algorithm, hurling the study into irrelevancy.

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Christopher Carosa

Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook ( Twitter (