Tuesday, October 20, 2026

The multiple years of double-digit returns


We still have two and a half months before year-end, yet we might see another year of double-digit equity returns. It is important to look at the before and after surrounding these periods. The before is usually a strong equity sell-off. The double-digit returns are a catch-up, and the after sees a strong decline to reverse the excess. Call this a revision to the mean. 

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