Heather Cullen Blog IN The Money Reversion to the Mean

Reversion to the Mean

Reversion to the Mean. I was reading ‘The Little Book of Commonsense Investing’ and it was espousing ‘reversion to the mean’ – in other words, over time stocks will ‘revert’ to their trend. So, if the stock has been going up and then starts to go down, don’t worry, it will eventually return to its …

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