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Works both ways.
This works both ways.  Say you pick up a pitcher that has a 5.5 ERA for the previous year, like Omar Daal.  He sits on the farm team all year, but since he is having a great season currently, you will be able to use him next year.  
You need to think of players in 3 to 4 year stretches.  If you can get 3 good years out of 4 out of a player, you have done a good job scouting.
Ken