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Why Ratio Charts Don’t Work: The Seductive Trap of Mean Reversion

Ratio charts have become a staple tool for traders seeking to time markets. The logic seems elegant: when gold becomes “expensive” relative to silver, or when stocks become “undervalued” compared to gold, the ratio must eventually revert to its mean.…

  • Pratik
  • January 15, 2026
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Zoom Out · For informational purposes only. Not investment advice.