📉 1. Markets return to the mean
Extreme prices never last.
For eg: The S&P 500 fell 34% in March 2020, then fully recovered by August.

⚖️ 2. Excess in one direction leads to the opposite
Bubbles create busts.
For eg: The dot-com bubble drove tech sky high… then crashed the Nasdaq by ~78%.

⏳ 3. There are no new eras
“This time is different” is costly.
For eg: Pre-profit stocks were unstoppable in 2021. In 2022, they weren’t.

🚀 4. Fast moves don’t end gently
Parabolic rises collapse hard.
For eg: Bitcoin rose 7x in a year, then dropped 75%.

👥 5. The public buys tops, sells bottoms
Crowds chase comfort, not value.
For eg: Retail piled in near highs in 2021, then fled in 2022.

😨 6. Fear and greed beat resolve
Plans are easy. Sticking to them isn’t.
For eg: Many sold at the bottom in March 2020 and missed the recovery.

🌐 7. Broad markets = strength
When only a handful of stocks lead, it’s a warning.
For eg: In 2023, 7 tech giants drove most of the S&P 500.

🐻 8. Bear markets have 3 stages
Sharp fall → reflex rebound → long, grinding downtrend.
For eg: The 2008 crash dragged on for months, not weeks.

🔮 9. When everyone agrees… expect the opposite
If all are bullish, who’s left to buy?
For eg: In Jan 2022, most analysts predicted a strong year. The market sank instead.

📈 10. Bull markets are fun, bears are painful
Everyone looks smart when prices rise.
But real fortunes are made in bear markets… if you can survive them.

Farrell’s rules are reminders:
• Markets swing
• Emotions lie
• History repeats