Is It Time For Stock Sector Mean Reversion?

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Mark Melin
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There is a long history of sector mean reversion in the stock market — losers transitioning to winners and vice versa. There have been winners and losers in the stock market year to date, but are trends about to change and sector mean reversion about to take hold in certain areas? Technology stocks, healthcare and financials have all been the market’s whipping boy. Can investors anticipate degrees of mean reversion in these sectors? Has all the vitriol towards health care landed in the sewer, is all the blood is on the street? Is the recent negative correlation between increasing home values…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.