Sentences with phrase «reversion to mean investing»

Not exact matches

I'm actively looking at my debt and determining if it makes more sense to pay down mortgages (locking in a guaranteed ~ 4 % return) or investing in bonds (~ 1 % returns if held to maturity) or stocks (uncertain, but I just wrote an article about the current PE ratio and the inevitable reversion to the mean and I believe we are likely headed for 10 years of low single digit returns).

I thought the things I read explained mean reversion quite clearly, but I wasn't entirely clear on how to implement momentum investing

With value investing and mean reversion, you have to be careful with saying this time is never different.

Whether you are leaning towards a style of value investing focused on reversion to the mean or the one focused on finding underappreciated compounders of capital, you will need to be able to understand what the future economics of the underlying business are likely to be.

All these things look ripe for mean reversion, which seems to be a key skill in deep value investing.

It is a book about why long - term investing serves you far better than short - term speculation; about the value of diversification; about the powerful role of investment costs; about the perils of relying a fund's past performance and ignoring the principle of reversion (or regression) to the mean (RTM) in investing; and about how financial markets work.

Mean - reversion is involved in value investing, in the sense that return on equity for firms tends to mean - revert over time.

Filed Under: Investing Tagged With: Asset Allocation, Investment Policy Statement, Reversion to the mean

Mean Reversion: In stock investing, mean reversion refers to the theory that prices and returns tend to move back to the averageReversion: In stock investing, mean reversion refers to the theory that prices and returns tend to move back to the averagereversion refers to the theory that prices and returns tend to move back to the average or mean.

Mauboussin observes that reversion to the mean is a powerful force, and it impacts return on invested capital as it does many other data series.

Pure contrarian investing is investing relying solely on the phenomenon of reversion to the mean without making an assessment of value.

Can you invest solely relying on reversion to the mean?

-LSB-...] investors refer to contrarian investing as a phenomenon that takes advantage of reversion to the mean.