Reversion to the mean in real estate. Which stocks will be affected? It is very rare for a parabolic trend not to fall back to earth.


Lately we have seen so many textbook examples of stocks that went parabolic and fell back down hard. Falling back down is the rule, not exception.

In this past year, I've also heard some people say real estate prices will never come down again.

But look at the chart from the stlouisfed website https://fred.stlouisfed.org/series/MSPUS

The last two years have been parabolic.

Textbook says that prices will revert to the mean. It would not be a surprise to see 2018 prices again.

There's definitely a chance to catch the downside.

Which stocks will be affected by the pullback?


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