Mean Reversion Quotes & Sayings

Going back to the origin is called peace; it means reversion to destiny. Reversion to destiny is called eternity. Those who know eternity are called enlightened. — Laozi

Reversion to the mean is the iron rule of the financial markets. — John C. Bogle

Madness to us means reversion; to such people as Una and Lena it meant progression. Now their uncle had entered into a land beyond them, the land of fancy. For fifty years he had been as they were, silent, hard-working, unimaginative. Then all of a sudden, like a scholar passing his degree, he had gone up into another form ... — Djuna Barnes

Investors tend to discover 'hot' mutual fund managers just after a successful run and just before the inescapable force of mean reversion is about to kick in. — Barry Ritholtz

Our starting point then was trying to find a way to incorporate mean reversion into the HoLee model. — John Hull

Historically, we have always seen reversion to the mean. After stocks have had an unusually great 10 or 20 years, they typically turn in subpar results over the next 10 or 20, and after bad 10- to 20-year stretches, the next 10 to 20 tend to be above average. — James O'Shaughnessy

History teaches that when valuations are extreme, "mean reversion," a move towards historical norms, is likely. Once value stocks turn, the recovery can be fast and intense. — Robert D. Arnott

American politics, like most things, is a story of what statisticians describe as the reversion to the mean. — David Ignatius

Yes, our tree has an interesting shape. The center branches reflect the shape of the zero curve. When extreme parts of the tree are reached the branching pattern changes to accommodate the mean reversion. — John Hull