Some bad economic advice

Russell Roberts writing at Cafe Hayek has a great piece nailing some financially dangerous economic advice. The point is that just because some randomness caused a bet to pay off in the past doesn't mean it will work in the future. There is a chance that a fair coin will give me 5 heads in a row, but I wouldn't want to take more than a fifty-fifty chance that it will come up heads a sixth time.


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