Sentences with phrase «to revert to the mean»

You are simply recognizing that all asset classes should eventually revert to the mean.
Sometimes, market sentiment pushes prices to extremes before the prices revert to the mean.
There are two long - term trends that will not revert to any mean.
As these underlying factors revert to the mean, actual earnings will decline.
The markets can revert to the mean by simply going sideways, they do not have to crash in one week by 70 %.
It is a condition that could become permanent if scores in the highest - performing states revert to the mean.
Many traders and investors are unable to make a lot of money in a bubble because they will sell short believing that prices will have to revert to the mean in price.
The question on whether returns revert to the mean over time is probably one of the most fundamental ones to investing, for me.
In re: Panskeptic: As value stocks revert to the mean, they generate momentum.
@Justin, Actually the research bears out the fact that in most cases, fund returns revert to the mean and winning funds usually underperform the next year.
As the first two rules indicate, markets revert to the mean.
It's very common to see public bettors fade a team that looks terrible in the first week, even though more often than not, teams revert to the mean after an «Oaklandish» performance.
Marleau likes shorting because stocks usually revert to the mean.
If the industry's market value has been hit as a result of its bad image — in fact, North American energy indexes are down only slightly since April — its profitability will soon revert to the mean.
GaveKal Research recently published a piece that was highly critical of the idea that profit margins revert to the mean over time.
If Matt Ryan's play reverts to the mean and the defense doesn't take a step forward, things could be disappointing for Atlanta this year.
If my oldest are doing well, there may be a bit of momentum happening for those that have already reverted to the mean.
My view is that profit margins will not revert to mean for many years, until the increase in capitalist labor is absorbed.
Over the long - run performance of both companies and share prices generally revert to the mean.
I trust you mean the statistical significance of CAPE reverting to the mean and so on is higher with indices than with individual stocks.
Heredity plays a role, but over time adult heights revert to the mean.
How fast ROEs revert to mean derives from the length of the businsess written.
It's universally accepted that stock prices revert to the mean with the passage of about 10 -LSB-...]
The market will recognize that overvalued stocks will eventually revert to the mean rather than remain overvalued.
On average, super-normal returns on capital revert to the mean.
Some financials for example, if anything, will revert to the mean upwards and not downwards.
If someone is having a current lucky streak, then just check back later, and then you'll see that this situation has reversed itself dramatically (AKA reverting to the mean).
As the «Un-Excellent» companies revert to the mean, their stock performance is anything but average.
Business Insider on 14 February 2014, in an article titled James Montier's Annotated CAPE Chart Is Brilliant wrote about an insightful chart James Montier used at a presentation in 2011 showing how the market always reverts to the mean explaining why the market is currently overvalued and why future US stock market returns will not be anything to get excited about.
That shift is not your typical revert to mean you are assuming with your nutty ideal gas law nonsense in an open dynamic system.
When those interest rates revert to the mean, and they will, the waves of economic turmoil will lap our shores.
Based on our historical observations and the math of the markets, gold is not overbought, in our opinion, but is simply reverting to its mean.
Had you looked at that graph, the relentless uptrend of the prior decade might have convinced a casual observer that valuations don't revert to the mean over time, but instead can simply drift higher indefinitely.
In addition investors value these company stocks at low earnings multiples that also revert to the mean (multiples expand as earnings rise).
One thing that is for certain is that these oscillations revert to the mean over the long term, and can not be used to explain a natural secular warming trend, which is what the climate sceptics seem to be running on about recently.
If investment returns revert to the mean, and everybody lives to 100, I don't think the non-beneficiary state residents are going to gladly kick in extra taxes to make the pension beneficiaries whole.
Industries tend to trend in the short run and revert to the mean over the intermediate term.
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