There will always be the pull to the mass (it's
called reversion to the mean, or average).
This is
called reversion to the mean.
Not exact matches
Bogle, 87,
called me from his Vanguard office at Valley Forge, Pa., on Wednesday
to discuss the hedge - fund redemptions, which he attributes
to a surge of competition in the sector and the inevitable «
reversion to the
mean» for returns.
I believe # 5, incidentally, from your point of view, though I don't think I could
call the erosion of competitive advantages of certain companies
to be
mean reversion, if and when it occurs.
Some would
call this a «rebalancing bonus» — a way
to capitalize on «
reversion to the
mean.»
The idea in picking these funds is
to ride the ups and downs of what academics
call «
reversion to the
mean.»