Discover the concept of mean reversion, a financial theory that states asset prices tend to revert to their long-term average. Learn how this impacts investment strategies.

Mean reversion posits that asset prices and market returns eventually gravitate toward their historical averages. This theory, applicable across diverse financial instruments, offers traders insights ...

Valuations and mean reversion have historically been the primary determinant of returns over the medium to long term ...

Forbes contributors publish independent expert analyses and insights. I write about incisive investing advice. Financial planning is all about managing risk, and using mean reversion is a brilliant ...

DENVER (MarketWatch) -- The stock market has dropped. Corporate profits have collapsed. And profit margins have reverted toward the mean. What is next? Before I dive into the discussion, let me ...

Speaking to the Investing News Network, David Erfle, editor and founder of Junior Miner Junky, explained why he believes a gold stock mean reversion is about to happen and what he's done to get ...

My December 2019 article, “Mean Reversion + Valuation = Opportunity,” cited cheap, out of favor assets including U.S. value and small caps, international, emerging markets, natural resources, MLPs and ...

NVT's stock is pricey at 22x forward EBIT, with a high risk of reverting to the sector multiple of ~17-18x in my view. Despite strong past performance, including a 22% CAGR in operating earnings, the ...