Tag Archives: reversion to the mean

Historically, the average P/E ratio of the S&P 500 is 16.64, and a reversion to said mean would represent a further decline in the index of 33%.

Is this stock market decline the "real deal" (that is, the start of a serious correction of 10% or more) or is it just another garden-variety dip in the long-running Bull market?

With the price spike in gold this week (spot gold up nearly 3% and gold stocks up around 7%) some of the perpetual gold naysayers are suggesting the metal had shifted to overbought status but that just is not the case. Below I explain why gold has taken off.

The recent plunge in gold prices below $1500 an ounce has suddenly awoken, well, just about everyone. The “gold bugs” are yelling that it is a conspiracy theory by the Fed while the stock market bulls say it is a sign that the Fed has achieved its goal of creating economic growth. Unfortunately, both arguments, while great for headlines, are wrong...The simple truth is that...

History has shown that investors who stick to disciplined, fundamental-focused strategies give themselves a good chance of beating the market over the long haul and James O’Shaughnessy has compiled data that stretches back to before the Great Depression...back-tested numerous strategies, and has come to some very intriguing conclusions. [Let me share some of them with you.] Words: 1325