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Reversion to mean constraints?

Posted: Wed Jul 05, 2017 9:19 pm
by gecko10x
This very interesting article suggests that planning tools could be more accurate if they had some way to constrain the portfolio models with long-term reversion to the mean. Thoughts?

Kitces: Does Monte Carlo Analysis Actually Overstate Tail Risk In Retirement Projections?

(Article content removed by moderator to respect owner's copyright).

Re: Reversion to mean constraints?

Posted: Thu Jul 06, 2017 6:51 am
by jimr
It is an interesting article.

Kitces 'Nerd's Eye View' blog is chock full of interesting content. It's in my RSS feed as a must read.