Thursday, January 17, 2013

The 80-year S&P 500 Log Chart Trendline: Mean Reversion

I extracted the following chart from Zero Hedge.  The bottom line conclusion from the chart is the following statement: "For over 80 years, the S&P 500 has cyclically reverted to it its logarithmic trend-line growth.  The last time the market reverted from its bullish up-trend was in 1982 (and the previous period of cyclical reversion took 32 years from 1942 to 1974) and suggests the S&P 500 could well revert to around an 850 level within the next year or so." 


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