This is one of the best article on topic of " Reversion to
the Mean " ... just for reading.
The Realities of Mean Reversion by Jack Forehand,
Validea's Guru
Investor Blog
Quote "Mean reversion is one of
the most powerful forces in investing. Whether it be the performance of asset
classes, the fundamentals of companies, or economic data, almost everything in
investing will revert to
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....