131 Stock Market Crash Ahead? Who Cares?

Didn't we just talk about the Dow broke 17,000 for the first time? Yes we did. Since then the average has fallen and come back just a bit. As of this very moment, its sitting at 16,651.

But honestly do we think the market is headed back up and will keep moving up? Or will it all fall part and accelerate downward trading.

We honestly have no clue.

We (Brandon and Brantley) believe that there is always a regression to the trend or to the mean which ever you prefer. Its not based on some uber complicated set of data, just looking at some pretty basic math will make it pretty clear.

Here's one of the best graphics I've ever seen to illustrate the point (I also encourage you to click the picture to read a great post written by Doug Short).

Doug Short's Stock Market Regression Chart

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