Investors Identify and Remedy Regression to the Mean: #11

Investors should be aware that stocks are not always normally distributed and when this fact is overlooked they may suffer from the 'regression to the mean' bias! What is a regression to the mean? When a stock price is extended either to the upside or downside, then it will usually correct toward its average price. However, there are many exceptions since above or below average performance does not always mean revert because of outlier events beyond a normal distribution. Listen in and learn how to identify and remedy the bias toward assuming a regression to the mean while investing. BUY “Understanding Behavioral BIA$” http://amzn.to/2XHtsOE | NEW Behavioral Finance BOOK | Behavioral finance advice and solutions. #mentalModels Behavioral finance advice Visit mentalmodelspodcast.com for more insights. This book will help you overcome the biases that are keeping you from investment success! Authored by Daniel Krawczyk, Ph.D. & George Baxter, JD, CFA your hosts of Mental models Podcast. Published by Business Expert Press Behavioral Finance Book AVAILABLE NOW ON AMAZON http://amzn.to/2XHtsOE Do you want strategies to make better financial decisions? Do you need a translational guide to Thinking Fast and Slow? Do you want to be a better investor and earn more money? If you said yes to any or all of the above questions then this book is for you! #understandingBehavioralbias