Regression To Trend: S&P Composite 227% Above Trend In August

Advisor Perspectives Charts 6.84K Followers Follow Summary The index has been consistently above its trend for nearly three decades, with one brief exception during the 2008-2009 period, when it dropped to 30% below trend. The stock market's current departure from its long-term trend is entirely unprecedented. The standard deviation for prices above and below the trend is approximately 48%. mustafaU/iStock via Getty Images By Kirsten Chang The stock market's only certainty is its cyclical nature: long-term overperformance eventually leads to underperformance, and vice versa. Using regression analysis, we can examine the historical pattern of this movement. The Current This article was written by Advisor Perspectives Charts 6.84K Followers Follow Advisor Perspectives is a leading interactive publisher for Registered Investment Advisors. Our AP Charts & Analysis portion of our website analyzes economic and market trends.