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Mean Reversion

1-4 out of 4 results.

Managing the threat of rising volatility risk

Volatility continues to hit record lows despite political upheaval and the start of interest rate normalisation. But, as inflation continues to take root, can active strategies help investors protect their portfolios from downside risk?

This is mean (-reverting that is)

Fundamentals might not be making a lot of sense right now, but sooner or later mean reversion will kick in. Nobody knows the timing but you should be standing near the exit doors to take advantage of it.

Rob Arnott seeks many happy returns

Smart beta strategies are now common but they were a quirky idea when Rob Arnott set up his first fund. This veteran of US investing talks about asset allocation, demographics and the state of the asset management industry.

Long term equity returns and mean reversion

The 'buy-low, sell-high' mantra implies markets are mean reverting and periods of extreme negative returns are not likely to be sustained. Unfortunately, we find it hard to invest when markets are in the doldrums.

Most viewed in recent weeks

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Australian house price speculators: What were you thinking?

Australian housing’s 50-year boom was driven by falling rates and rising borrowing power — not rent or yield. With those drivers exhausted, future returns must reconcile with economic fundamentals. Are we ready?

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Welcome to Firstlinks Edition 627 with weekend update

This week, I got the news that my mother has dementia. It came shortly after my father received the same diagnosis. This is a meditation on getting old and my regrets in not getting my parents’ affairs in order sooner.

  • 4 September 2025

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