Reverting to the Mean
You have probably heard the phrase “Reverting to the Mean” before, but what does it really mean in the investment world? According to Investopedia, ‘Mean Reversion’ theory suggests that prices and returns eventually move back towards their mean or average. This mean or average can be the historical average of the price or return or […]
Important Investment Concepts, Part II
My last blog post, Important Investment Concepts, Part I, talks about an important investment concept that is intuitively obvious, that is to avoid large investment losses. This investment concept is most applicable to people who have accumulated a large nest egg and are nearing their planned retirement date. This blog post will discuss another important […]
