A survey of ~450 portfolio managers found that marginal propensity to buy falls and propensity to sell rises as valuations rise, and the two curves intersect almost exactly at 50/50 precisely at the market's historical valuation average—explaining why the market historically mean-reverted, because participants themselves behaved in a valuation-discounting, mean-reverting way.

factualpending

Speaker

Mike Green

Evidence Quote

they intersected almost exactly 50/50 at exactly the market's historical valuation average

Source

The Trillion Dollar Trap | Mike Green on Passive Investing's Fatal Design FlawExcess Returns
Created: 6/18/2026, 1:59:25 PM

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