SmartStops comments: Great article highlighting Bob Farrell, a legendary investor, is famous for his 10-Investment Rules to follow.
Rule #8 states:
Bear markets have three stages – sharp down, reflexive rebound and a drawn-out fundamental downtrend
- Bear markets often START with a sharp and swift decline.
- After this decline, there is an oversold bounce that retraces a portion of that decline.
- The longer-term decline then continues, at a slower and more grinding pace, as the fundamentals deteriorate.
Dow Theory also suggests that bear markets consist of three down legs with reflexive rebounds in between.
Read entire aricle here: https://realinvestmentadvice.com/market-crash-is-it-over-or-is-it-the-revenant-2/ Bob Farrell, a legendary investor, is famous for his 10-Investment Rules to follow.’
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