Sentences with phrase «up for mean reversion»

That said, the risk premium factor shows that the largest gains tend to come in the southwest quadrant: low equity valuations and high Baa bond yields, which is a perfect set - up for mean reversion.

This means we are seeing fewer stocks sell off and setting up for a mean reversion trade.

Not exact matches

The infatuation with growth at any price has reached an historic extreme, as shown, and sets up for a reversion to the mean, which should be meaningful for value investors.

The research we present in this article provides evidence that valuations are a key reason for this mean reversion: underperforming managers tend to hold cheaper assets, with cheaper factor loadings, setting them up for good subsequent performance, whereas recently winning managers tend to hold more - expensive assets.