Bob Farrell’s 10 Market Rules To Remember

• Markets tend to return to the mean over time.
• Excesses in one direction will lead to an opposite excess in the other direction.
• There are no new eras — excesses are never permanent.
• Exponential rising and falling markets usually go further than you think.
• The public buys the most at the top and the least at the bottom.
• Fear and greed are stronger than long-term resolve.
• Markets are strongest when they are broad and weakest when they narrow.
• Bear markets have three stages.
• When all the experts and forecasts agree, something else is going to happen.
• Bull markets are more fun than bear markets.