Investors have a persistent psychological tendency to extrapolate recent performance into the future, assuming whatever has performed well will continue to perform well and whatever hasn't will continue to underperform, which is the opposite of how reversion to the mean works.

factualpending

Speaker

Matt Ziggler

Evidence Quote

“we always want to think whatever is doing well is going to keep doing well and we always want to stay away from what's not doing well”

Source

Practical Lessons from Ben Carlson— Excess Returns
Created: 8/11/2026, 7:52:29 AM

My Notes

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