LRCX - Sell Alert: 3 Overvalued Dividend Stocks And 2 Replacement Buys
2024-03-07 08:30:00 ET
Summary
- Reversion to the mean is observed in various aspects of life, including the Sahara desert, population cycles, and of course the stock market.
- The semiconductor industry experiences boom-bust cycles due to overproduction and pricing pressure.
- The article highlights 3 overvalued sells, and 2 great replacement dividend buys.
Written by Sam Kovacs
Introduction
What goes up must come down.
I've never yet seen a man throw a ball so high that it wouldn't come down.
Reversion to the mean is a phenomena which we observe in pretty much everything under the sun, if we step back and look.
The Sahara desert was once lush, hospitable and green (5,000 to 10,000 years ago). As the axis and tilt of the earth changes slowly (a 26,000 year cycle) we might expect the desert to return to a vegetated state. Not in our lifetimes, mind you.
Populations also show cycles and reversion to the mean. The Lynx-Hare populations follow these boom-bust cycles. As hare population grows, the lynx which prey on hare, also grow in number. This in turn causes pressure on hare populations (they're all getting killed) which causes the lynx population to decline as they don't have enough prey to sustain....
Sell Alert: 3 Overvalued Dividend Stocks And 2 Replacement Buys