Markets And Mean Reversion Tendencies: Deutsche Bank

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Rupert Hargreaves
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Mean reversion equity returns

Deutsche Bank’s annual Long-Term Asset Return Study was originally put together by the bank to explore the notion that developed world asset classes traditionally exhibit a rhythm of returns through time that are subject to definite mean reversion tendencies. And with this being the case, within every edition of the annual publication, Deutsche Bank publishes a table which shows what the nominal and real returns could be over the next decade if assets revert back to their long-term average valuations. Mean reversion assumptions The data used to calculate these projected returns is based on a number of assumptions, the key assumption being that earnings, PE valuations, inflation, real yields…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk