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It's called reversion to the mean, and very well known among professional investors. http://www.investopedia.com/terms/m/meanreversion.asp http://www.investope
by MR4D 10y ago
It's called reversion to the mean, and very well known among professional investors.
http://www.investopedia.com/terms/m/meanreversion.asp http://www.investopedia.com/terms/m/meanreversion.asp
- vufas 10y agoLink discussing the more general statistical phenomenon in greater detail: https://en.wikipedia.org/wiki/Regression_toward_the_mean https://en.wikipedia.org/wiki/Regression_toward_the_mean
- jstanley 10y agoReversion to the mean means they're likely to improve, relative to their past performance. It doesn't mean they're likely to do well.