All posts tagged "mean reversion"
Mebane Faber Reveals Asset Classes Poised for Massive Gains
Mebane Faber, co-founder and the Chief Investment Officer of Cambria Investment Management, has authored a post at his investing blog discussing the concept of mean reversion and what it could mean for several downtrodden asset classes.
- Posted April 22, 2016
An Interesting Strategy Involving Mean Reversion
Mebane Faber at World Beta highlights a strategy capitalizing on mean reversion, the tendency of asset classes to revert to their historical average returns. The strategy involves buying the worst performing asset class from 3 years prior...
- Posted September 16, 2010
Odds Favor Bounce After Quarterly Dip
One of the simplest ways to forecast future performance is to look at past performance while weighing in the mean reversion tendencies of the market. Bernard Condon quotes analysis by Standard & Poors Chief Strategist Sam Stovall...
- Posted July 5, 2010
The Case for Large Cap Stocks
Alan Brochstein has an article posted at Seeking Alpha focusing on the virtues of large cap stocks. He discovered by looking at the fundamentals large caps appear to be significantly undervalued. Brochstein projected the total return for...
- Posted October 20, 2009
The Mean Reverting Tendency of the Stock Market
The stock market has a tendency to have positive years after big down years as shown in the chart below (11 out of 15 anyway): Source: http://www.tradersnarrative.com/how-i-learned-to-love-mean-reversion-stopped-worrying-about-the-bear-market-3110.html ***
- Posted October 13, 2009
Henry Blodgett Writes That Stocks are Distinctly Cheap
Henry Blodgett was made famous for touting ridiculously overpriced internet stocks in the late 90’s. He’s now saying that stocks are priced for fairly good returns even though the S&P 500 could temporarily plunge to 600. Blodgett...
- Posted February 18, 2009