Base Effects

The Wall Street Journal explains why investors and economy watchers need to familiarize themselves with the idea of “base effects” right now if they want to keep any perspective about what’s going on… The problem is when something screwy happens a year earlier. The base from which a year-over-year comparison is calculated becomes distorted. If a company takes a hit in one year and then gets back to...

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source https://thereformedbroker.com/2021/06/07/base-effects/