Random Walk fallacy in investing
The defining feature of randomness of a series of data is that each data event be independent from all other data events in the series.
standard deviation
Volatility and risk – How the investment industry got it wrong
The riskiness of an investment is not measured by beta (a Wall Street term encompassing volatility and often used in measuring risk) but rather by the probability — the reasoned probability — of that investment causing its owner a loss of purchasing power over his contemplated holding period.
Use of charts and statistics to identify bubbles
The S&P 500 appears to cross through the two standard deviation channel in mid-1996.
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