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 
1967-1992.


Remembering and employing these rules will serve us well into the 
future.