Bob Farrell’s 10 Market Rules To Remember
August 19, 2013 1 Comment
- 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.


First, remember Benjamin Graham’s mantra “The essence of portfolio management is the management of RISKS, not the management of RETURNS. Well-managed portfolios start with this precept.”



