Mr. Robert Ferrell’s Ten Market Rules to Remember
#1. Markets tend to return to the mean over time.
#2. Excesses in one direction will lead to an opposite excess in
the other direction.
#3. There are no new era-excesses are never permanent.
#4. Exponential rapidly rising or falling markets usually go
further than you think, but they do not correct by going sideways.
#5. The public buys the most at the top and the least at the bottom.
#6. Fear and greed are stronger than long-term resolve.
#7. Markets are strongest when they are broad and weakest when they
narrow to a handful of blue chip names.
#8. Bear markets have three stages- sharps down, reflexive rebound,
a draw-out fundamental downtrend.
#9. When all the experts and forecasts agree, something else is
going to happen.
#10. Bull markets are more fun than bear markets.
Mr. Robert Farrell was Merrill Lynch’s chief market strategist from
Remembering and employing these rules will serve us well into the