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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: FIFO_kid2 who wrote (62225)	7/23/2019 11:45:36 PM
From: Paul Senior	Respond to of 78470

I can't easily determine how many stocks worked for me based on reversion-to-mean. I don't keep good records of the stocks I've sold. Sometimes too, my definition of reversion to mean changes in my mind: If I buy a standard/academic value stock - low p/e (high e/p)- and I expect the business to recover (earnings to improve, p/e to rise back to an earlier level based on that improvement, I may look at it when I'm holding it as a low p/e play. Otoh, sometimes I'll switch my view and see it as a reversion to mean play (the p/e going back to its former higher p/e, just through better market sentiment for the company/stock, regardless of earnings improvement. I don't know if it will be the fed that will change neofeudalistic macro themes, but somehow, if things keep going in this same direction that they are, business/governments that charge higher and higher rents and offering fewer and fewer benefits to those charged... well that will change, maybe painfully. In the meantime, those large momentum stocks involved could/might/will continue to do ok.