- Markets tend to revert 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.
- Exponentially rising or falling markets usually go further than you think, but they do not correct by going sideways.
- 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 to a handful of blue-chip names.
- Bear markets have three stages – sharp down, reflexive rebound, and a drawn-out fundamental downtrend.
- When all the experts and forecasts agree – something else is going to happen.
- Bull markets are more fun than bear markets.
Subscribe
Listen to BarberLM using one of many popular podcasting apps or directories.
