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“Reversion to the mean” is a useful concept in investing. When we apply this concept to stock index valuation, this implies that there is a tendency for stock prices to trend higher when the market PE is well below the historical mean, and a tendency for stock prices to trend lower when the market PE Read more ➝
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One of the primary ways for an individual investor to gain a competitive advantage relative to the markets is to have a long term time horizon. When viewed through this lens, investors with a disciplined long term approach can benefit from short term market fluctuations systematically. An important way to benefit from market run-ups and Read more ➝