RT Journal Article SR Electronic T1 A Fallacy That Will Not Die JF The Journal of Investing FD Institutional Investor Journals SP 7 OP 15 DO 10.3905/joi.2016.25.1.007 VO 25 IS 1 A1 Gary Smith YR 2016 UL https://pm-research.com/content/25/1/7.abstract AB 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