Bob Farrell's 10 rules of investing and other things to think about at this juncture re AVXL:
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 eras—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 most at the top and the least at the bottom. The downfall of all investors is ultimate ‘greed’ and ‘’fear’’. They don’t sell when markets are near peaks, nor do they buy market bottoms. However, this does not just apply to individuals but many advisors as well.
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: sharp down, reflexive rebound, and a drawn-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.
From the oracle of Omaha, Warren Buffett:
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Two things I have to add are these:
1. You cannot wish the market to do what you want it to do.
2. We could be close to the ”finish” line. By this I mean we could be close to a bottom for AVXL share price. I remember running marathons where people gave up, and all they had to do was take a few more steps to cross the finish line. However, a good many do not do it for whatever reason, but that may be the difference in success or failure.
It's a free country. Take your choice. You may choose to fail or you may choose to succeed.
Think about it!
