Big Picture -- Reversion to the MeanPosted By Paul Kammueller |
Thought this would be fun for the new year, a fresh look at the 30+ year Nazdaq chart. Looks like the 'Decade of Deviations' starting in late 1995 and culminating in the bear market bottom of late 2002 has fairly clearly given way to a resumption on the chart of what appears its more historically "normal" slope which appears to approximate a 12.2% increase per year. It indeed appears that the market has reverted to the mean in this respect and that life has returned to 'normal'.