alt Hacker News> Historically stocks that had a good run then tended to underperform
This is more of a mathematical axiom than a financial effect, because you're defining "underperform/overperform" with respect to an average that contains them.
> Historically stocks that had a good run then tended to underperform
This is more of a mathematical axiom than a financial effect, because you're defining "underperform/overperform" with respect to an average that contains them.
>> Historically stocks that had a good run then tended to underperform
>because you're defining "underperform/overperform" with respect to an average that contains them.
Why is this true? For instance, if you're comparing the GDP growth of countries in the G7, why is it that one country (eg. US) can't consistently overperform year after year?
https://ourworldindata.org/grapher/gdp-per-capita-worldbank?...
Or if you want make it even more clear, you can construct a index consisting of two countries: a normal country (eg. US) and a basketcase (eg. DRC):
https://ourworldindata.org/grapher/gdp-per-capita-worldbank?...