Reversion to the Mean – A Reminder

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Reversion to the mean is not a new concept and we most recently discussed the principle in a blog, Reversion to the Mean, posted on 11/1/2017.  With the popular averages up some 30% in 2019 it might seem logical to expect a sharp reduction in the near future.  This may occur, but it is important … Continued

The Trend is Your Friend

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“The trend is your friend” is one of Wall Street’s best-known sayings, although the message is incomplete.  A more accurate version would be, “The trend is your friend, until the end, when it bends.” If you are market timing, which we do not recommend, the trick to investing is to be patient through small fluctuations … Continued