Sentences with phrase «reversion to the mean»

Index investors, in aggregate, are likely to realize higher returns because of lower costs and the effect of reversion to the mean on active strategies.

«We are impressed by the inexorable tendency for reversion to the mean in security returns.

However, while the bears continue to pound the table for reversion to the mean, the market has not so quietly run up nearly 300 % since March of 2009.

Whether you are leaning towards a style of value investing focused on reversion to the mean or the one focused on finding underappreciated compounders of capital, you will need to be able to understand what the future economics of the underlying business are likely to be.

Use of standardized test scores helps address what statisticians call reversion to the mean.

Behind the term reversion to the mean is the notion that stock prices are related to earnings.

Our current market climate for Trend Followers of commodities is characterized by reversion to the mean instead of trending behavior.

There are few corners of the investment business where reversion to the mean does not hold sway.»

Confusion about reversion to the mean is innocent.

We often predict by extrapolation and do not consider reversion to the mean.

Rather than arguing that CPDOs are inherently bad, however, Morris argues that the structures can be good investments if they are based on higher rated indexes, which have strong reversion to the mean.

Beware of profit margin REVERSION TO THE MEAN!

Reversion to mean makes no sense to me, there are oscillations on many time scales, climate shifts, etc..

I'm actively looking at my debt and determining if it makes more sense to pay down mortgages (locking in a guaranteed ~ 4 % return) or investing in bonds (~ 1 % returns if held to maturity) or stocks (uncertain, but I just wrote an article about the current PE ratio and the inevitable reversion to the mean and I believe we are likely headed for 10 years of low single digit returns).

The defense is not quite as good (player departures, no longer having a devastating punting game that buries opponents, and simple reversion to the mean).

Because of a rougher - looking schedule than in years (I mean, who really knows until halfway through the season — it was a big surprise to most that the AFCW wasn't tougher in 2017 for instance, or that the NYG would suck so epically), and no Shazier, and general reversion to the mean, and no particular reason to think Ben will be available for every game... I'll say 10 -5-1 with losses @ Tampa, @ Cin, Carolina, @ Denver, LAC.

With respect to students and test scores, reversion to the mean suggests that students with scores in the upper or lower tail of the test - score distribution are likely to perform closer to the average when tested more than once.

Gummy's (Peter Ponzo's) web site Gummy's Tutorial on Mean Regression Reversion to the mean DOES exist.

I continue to believe that rates will have to go up (e.g. reversion to the mean, reduce the «real» value of $ 20T in US debt, expiration of «conspiracy theory» suggesting the Fed held rates on the floor until the election to get Hillary elected, etc, etc)....

The idea of reversion to mean investing very much appeals to me (Buffet's idea of being greedy when others are fearful and fearful when others are greedy), but it is difficult to implement.

Reversion to the mean tends to apply to auction markets, especially when the price of assets and commodities is too high or low.

These returns can be a cushion for a potential reversion to the mean or large market decline later on in retirement.

Five - year growth rates are clearly mean reverting, and I love to see an intuitive strategy beaten by a little reversion to the mean.

In the world of mutual funds, reversion to the mean implies that good fund managers often have periods of poor performance followed by periods of superior performance.

There was a presentation made by Richard Pzena, (an investor with a great track record who normalizes earnings,) that mentioned that reversion to the mean always happens with companies with high returns or companies with low returns

Pure contrarian investing is investing relying solely on the phenomenon of reversion to the mean without making an assessment of value.

It depends entirely on the quality of the manager, and sometimes it can suffer from reversion to the mean.

Reversion to the mean says that an event that is not average will be followed by an event that is closer to the average.

By Jack Forehand, CFA (@practicalquant) «Importantly, reversion to the mean in the investment business extends well beyond the results for mutual funds.

There will always be the pull to the mass (it's called reversion to the mean, or average).

Value investing is based on a long - term reversion to the mean.

Behavioral finance teaches us that we overestimate the near - term «story» and ignore the phenomenon of reversion to mean.

There is a BIG «when factor for reversion to the mean.

Can you invest solely relying on reversion to the mean?

Consider reversion to the mean.

This is known as reversion to the mean.

«But in the long term, there's usually a reversion to the mean when it comes to the Canadian dollar.»

It's one of the most basic rules in economics: Reversion to the mean.

«The natural investment instinct is to say, «Oh, there's going to be reversion to the mean, these stocks are going to come in,»» Schlossberg said Monday on CNBC's «Trading Nation.»

A reversion to the mean should be expected

Reversion to the Mean Another way of looking at this from an economics point - of - view is what we call a «reversion to the mean,» which simply means that when you have outlying data points where performance is better than usual for a period the data comes back down to a historical average.

Gold has 5000 years of history behind it as currency, blink and you might miss the reversion to the mean of Gold being money again.

Reversion to the mean will always trump, greed, optimism, liquidity and stupidity.