The Laws Of Mean Reversion Have Begun Their Summer Offensive

(Bill Blain via ZeroHedge) “When valuations are extreme, “Mean Reversion” towards historical norms is likely. Once value stocks turn, the recovery can be fast and intense.”

We’re officially in a bear market, but markets are still massively overvalued. The laws of Mean Reversion are immutable – some stocks are going lower. Inflation, Bond Markets and Confidence are all flashing danger signals.

It was messy out there y’day! Stocks prices down and bond yields up! It’s officially a US Stock Bear Market! 20% down this year. Ouch!

There is little to suggest it won’t be much the same today. Recessionary indicators are nailed on. When all around are losing their heads….. and all that. The whole market feels like it’s going to hell in the proverbial handbasket – which is exactly as predicted.

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