Is The Market About To Experience A Nasty Case Of Mean Reversion?

We’ve frequently looked at Doug Short’s “Real Mega Bears” quarter to get a nice read on how the US stock market recovery compares to the Nikkei bust and other similar market crashes.

That chart looks at the current bust using early 2000 as the peak.

But how does the more recent bust, using 2007 as the peak, look compared to other busts.

Here ya go. If we’re going to mean revert, we need a sharp pullback.


Photo: DShort

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