Want To Beat The Market ? You Need To Know This !
![Image](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9B14-nE2YLZiOx9HQWPkkmTpsjbp4sz8OoDRIZWN1xkGGMzk8tFmmTI-IXBOgwbbU5ttZfQ_n9d9UJVyzYSX6LLGsl3mgkXXwa9wPNLndBBuyK5iedZKoD1dZ3YBE3FPMAlZpY6S4Ys0/s320/regression-reversion-to-the-mean.gif)
image credit to asymmetryobservation.com Would like to share this great article on the subject of “ Regression to Trend/Mean”: Regression to Trend: Another Look at Long-Term Market Performance <from www.advisorperspective.com> “About the only certainty in the stock market is that, over the long haul, over performance turns into under-performance and vice versa. Is there a pattern to this movement? Let's apply some simple regression analysis (see footnote below) to the question. Below is a chart of the S&P Composite stretching back to 1871 based on the real (inflation-adjusted) monthly average of daily closes. We're using a semi-log scale to equalize vertical distances for the same percentage change regardless of the index price range.”