Reversion To The Mean

This is a great write-up from Vanguard that re-inforces my thoughts back on December 12th.  There is a math term known as reversion to the mean that is commonly applied to investing.  Stocks and funds will rise to high points and sink to low levels, but over the long-haul these investments will always revert back to the mean.  Asset Allocation, diversification and investing for the long-term are tried and true methods that remove short-term spikes from the investing equation.

From the Vanguard article, I found these charts very timely in light of some of my recent thoughts within this blog...