I think it is time for me to update the world major stock market’s valuation by “ Regression to the Mean ” after DJ exceeded 21,000 mark in such a short period after hitting 20K level.
Always remembered that “ Reversion to mean “ is just a “statistical phenomena “ and it may take much longer time to “reverting to mean” if market is in bubble or irrational stage.
As renowned economist John Maynard Keynes famously commented, “The market can stay irrational longer than you can stay solvent.”
Please find the link to my previous blog post about this topic (here ) ” Regression Line For Major Stock Market Indexes.”
“When US (market) sneezes, the world (market) catches a cold !! “ . Some may argue that there is a tendency and increasing of divergence between developed and emerging market , but with such an intertwined world economy and huge movement / flow of fund within a click , the …