TY - JOUR T1 - A Fallacy That Will Not Die JF - The Journal of Investing SP - 7 LP - 15 DO - 10.3905/joi.2016.25.1.007 VL - 25 IS - 1 AU - Gary Smith Y1 - 2016/02/29 UR - https://pm-research.com/content/25/1/7.abstract N2 - Regression to the mean is a pervasive statistical phenomenon that invites causal explanations for random fluctuations. A notorious economic example of this fallacy was exposed more than 80 years ago, yet regression to the mean continues to be overlooked or misinterpreted by economists, even Nobel laureates.TOPICS: Statistical methods, portfolio construction, portfolio theory ER -