What Reversion To The Mean Means | Fee-Only Financial Planners Long Island

What Reversion To The Mean Means

David Serchuk

Ronald Roge, chairman of R. W. Roge & Company, agrees that while asset prices do get over- and underpriced, trying to time their mean reversion is a fool’s game. Part of this is because even if people intellectually understand that cycles can take years, emotionally it’s very hard to stay invested when what you own is underperforming. Typically investors “have less than a three-to-five-year tolerance” for lagging investments, he finds.

Read More

Like Us on Facebook