The median, as calculated periodically, is a "normal" zone of varying width. In mid-1961, this "normal" zone stood at about 30 percent below the actual market, as measured by a stock average. However, such discrepancies do not worry the firm to any great extent. John Templeton, president, points out that the market has been above the median in about half the months since the formula was first used in 1938, and below the median in the other half, and that discrepancies, of whatever duration, have a habit of correcting themselves eventually. Chart 4 shows the normal zone (shaded area) plotted against Standard & Poor's 425 Stock Average, drawn on logarithmic paper. The arrows marked "S" indicate points at which clients were advised to reduce stock holdings, and the arrows marked "B" are times at which they were advised to buy more stocks.

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