market when they deviate sharply from past norms (the "case rate").
Long-term returns of stocks (the "base rate") are far more likely to be
established again. If returns are particularly high or low, they are
likely to be abnormal.
Sunday, January 16, 2011
RULE 25 - David Dreman
Don't be seduced by recent rates of return for individual stocks or the
market when they deviate sharply from past norms (the "case rate").
Long-term returns of stocks (the "base rate") are far more likely to be
established again. If returns are particularly high or low, they are
likely to be abnormal.
market when they deviate sharply from past norms (the "case rate").
Long-term returns of stocks (the "base rate") are far more likely to be
established again. If returns are particularly high or low, they are
likely to be abnormal.
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