Skip to comments.Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year
Posted on 05/18/2010 7:05:51 AM PDT by blam
Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year
May. 18, 2010, 8:57 AM
Image: US Army
Richard Russell, the famous writer of the Dow Theory Letters, has a chilling line in today's note:
Do your friends a favor. Tell them to "batten down the hatches" because there's a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don't need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won't recognize the country. They'll retort, "How the dickens does Russell know -- who told him?" Tell them the stock market told him.
That's pretty intense!
Update: By popular demand, here's more on what he sees in the market:
And I ask myself, "Am I seeing things? The April 26 high for the Dow was 11205.03. The Dow is selling as write at 10557 down 648 points from its April high. If business is even better than expected, then why is the Dow down over 600 points? And why, if there were 674 new highs on the NYSE on April 26, were there only 20 new highs on Friday, May 14? And if my PTI was 6133 on April 26, why is it down 17 points since its April high?
The fact is that I've been seeing deterioration in the stock market ever since early-April, and this in the face of improving business news. The D-J Industrial Average is composed of 30 internationally known top-quality blue-chip stocks. These are 30 of "America's biggest companies." If Barron's is so bullish on the future of America's
The DJIA is up 62 as I post. See here.
(Excerpt) Read more at businessinsider.com ...
Money is a liquid asset. Where do you sell your money?
Note: I don’t recognize the country NOW!
You sell it for food, water storage, fuel, supplies and ammunition. You can't eat the money.
Well... back in 1998, I was saying... this is the coming Great Depression... I guess someone else is catching on to it now ... (but he’s certainly not the first, by any means) ... :-)
In fact, I’ve said it’s the “Great Depression” even while other FReepers have been telling me that I’m crazy ... hoo-boy!
I guess we’ll see...
I have been out of the market for a long time. I only look for stocks to short.
To me..... I'll give you a nickel on the dollar. But don't worry, they'll be wet nickels.
Those of us who grew up poor and frugal are at a great advantage in a lot of ways.
freepmail me if you want a free shipping coupon
I will stay as I am. Just another wacko with stock motives.
Too many experts and their crystal ball is cracked.
Hell. I don’t recognize it now.
If the GOP manages to screw up the November elections, the bottom will fall out of the stock market. Traders are banking on a Republican win to halt BO’s Marxist agenda.
I’ve subscribed to Russell for years. He called the big move down.
Take a hard look at the CDOs - especially the ones the FDIC now owns. Look at the projections of federal debt, as provided by the Congressional Budget Office.
His suggestion: cash and gold. I think he’s right.
Stupid. You will die surrounded by boxes of ammo.
The food riots will be ugly. The communists need a catastrophic collapse and are in position to cause it.
So after a 5,500 pt rally, the market loses 700 points (and quickly recoups half of that), and this pricknose wants me to hit the panic button. Curious: Was he issuing strong BUY recommendations in March 2009 when the market was cheaper than it had been in 20 years? No? He was saying SELL then too? Well, then how can anyone who followed his advice then, follow his advice now? They don’t own anything TO sell.
You lost me there. What are you talking about?
And what did I ever do to you to deserve being called "stupid"?
I wish these experts would graph their predictions so we could tell if they are worth listening to.
Same with the religious leaders who predict the end of the world every time there is an outbreak of violence in the Middle East.
While there might be some truth to this, if people do what he says that will of course MAKE that result come true.
Selloffs are what CAUSE crashes. Well, they’re one cause. Again, not saying it couldn’t happen (I’m scared sh*tless lately) but part of me thinks he *wants* this to happen.
I think most people are waiting on the outcome of November to determine whether to go into full survival mode.
However, you should think about what you’re gonna do if November election day comes and goes and the same folks are still in power, especially if this outcome is due to obvious shenanigans.
Think about what you’d do in that “what if”, and start planning to do it NOW.
Where are you going to buy food stores? Water stores? Alternative energy? Guns & ammo? Gold & silver?
Get these things LINED UP, even if you don’t buy them now.
I wasn’t paying that much attention, so I don’t remember the name, but on CNBC they interviewed someone who predicted Dow 5000 by year end.
Maybe if everyone is predicting doom and gloom, it won’t happen.
Good practice run...
This is where I sell my money. :) APMEX
Stocks and bonds are considered liquid assets. That’s what he is referring to.
Amen ... I’ve enjoy the blessings since childhood, but i remember what it was like to not have so many ‘needs’.
buy property, buy stockpiled foods, lots and lots of ammo for the entitlement zombies.
Move away from the big cities.
They are filled with looters and entitlement zombies.
Time to buy...stocks are on sale.
Do a freerepublic search for ‘Arm Your Neighbors’ ...
Depends on what you're defining as 'money.'
If you're talking about rectangular green pieces of paper/linen debt instrument, maybe you should consider exchanging this alleged 'money' for a commodity like gold, silver, ammunition, food, or other preparation items.
Even if one only exchanges 10% of his 'money' for assets, at least the result is something tangible in the event of a monetary collapse.
It's just good insurance.
In the gold market.
How do you short a stock? I’d like to short the whole damn market.
Good question. Likely not.
If he was, I might listen to him now.
Spent or unspent? ;-)
This is not DU.
There was a time on FR where it was possible to disagree with someone without resorting to ad-hominem attacks like 1st graders or DUmmies.
Come on gents...
“In fact, Ive said its the Great Depression even while other FReepers have been telling me that Im crazy ... hoo-boy!”
Even if you’re right... you’re still crazy.
I guess I owe my parents thanks for hard lessons learned when I was young. Like the song says, a country boy can survive.
More gloomy predictions:
Why Dow 5000 Is Still ‘Very Likely’: Strategist
Last week, David Hefty, chief executive of Cornerstone Wealth Management, warned investors of a sudden market âfreefall,â sending the Dow below 5,000.
âThe Dow 5,000 piece is very likelyâthatâs not even the extreme low,â Hefty told CNBC. âIt only takes a few hedge funds to get that margin call.”
March 2009 Lows Will Be Tested: Strategist
The stock marketsâ March 2009 lows could be tested and even broken as sovereign debt continues to grow in Europe and stimulus measures wane, Philippe Gijsels, head of research at BNP Paribas Fortis global markets, told CNBC.com Tuesday.
Of course, as I said, if everyone is bearish, maybe the bottom won’t fall out afterall.
Most families own some fine jewelry. It may not be alot, but still it is a source of gold for sale. Best place to sell it is www.usgoldbuyers.com. They are located in NYC and offers 90 percent of spot price. Do not go to pawnshops or other advertised gold buyers because they offer substantially less. Furthermore, usgoldbuyers post their buy prices of gold. You can send it to them by or walk into their NYC office in the diamond district. Interesting note - Sears and K Mart is starting a service that will buy gold from customers.
Which keyword do I use to find the survivalist thread?
Do I need to know the secret knock, or what? There used to be a lot of good recipes and stuff on there, but I can’t ever get to it!
btw, great blog, ladybug. I recommend it.
It’s cool beans, you guys!
42% accuracy rate for this “guru”? Hrm.
I believe there are serious problems brewing, but you’ll have a better success rate NOT listening to this guy.
Ain’t that the truth!
Post of the day!
any stock market “expert” who’s always Bearish or always Bullish is always useless.
What my guy says to me is that over time, you should buy stocks when they are cheap relative to their value and earnings, and sell them when they are expensive, and you’ll do better than trying to figure out the macro environment, which is a kaleidoscope of confusion. Right now, stocks are pretty expensive. Not a great time to be buying, but these guys who are literally trying to incite panic with their florid language irritate the hell out of me.
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