Analysts warn that a full mean reversion could see the S&P 500 plunge from 7,000 to 2,500.
Lance Roberts of RIA Advisors warns that the S&P 500 is currently far above its long-term trend, and a full mean reversion could see the index drop from 7,000 points to around 2,500 points. He notes that the market has not deviated this much from its long-term logarithmic trend since 2000, but such a reversion typically takes several years and may not occur as a rapid decline.
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