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John,
Jan 13 09:21 am
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All Comments by DaveW »Reversion to the Mean for Equities [View article]
Critical to drawing the mean is how one calculates adjusted inflation. Doug Short does a better job explaining and displaying this concept than I can:
dshort.com/articles/re...
Briefly, if one adjusts as the BLS has been doing since 1919 we still have some more overshooting to do. But if one incorporates CPI data, generated since 1982, the mean has already been overshot substantially. Which side of the fence do you stand?