Posted on 06/05/2012 6:34:07 AM PDT by blam
RICHARD RUSSELL: This Is Going To Be A Nasty Decline, And I'm Afraid It Has A Long Way To Go
Matthew Boesler
Jun. 5, 2012, 8:17 AM
Richard Russell, the bearish author of the Dow Theory Letters, recently warned that a major primary bear market signal had been confirmed and that stocks were headed lower as a result.
In his latest Dow Theory Letter, he warns that equities could have quite a distance to fall from here.
Via King World News, Richard Russell:
“How far will the bear market carry? No one knows. Already all of 2012's gains have been wiped out. There's a number down there to where the bear market is heading. I don't know what that number is. Dow 8,000? Dow 6,000? Dow 4,000? Dow 2,500?”
“The number could be any one of these. What I hope is that we get to that number as quickly as possible. I just hope we get the pain of the bear market over as fast as possible. One mistake is to think we know how costly the bear market is fated to be -- and how far the bear market will carry. The Primary trend is a law unto itself. It will continue until it dies of exhaustion.
In the meantime, the bear market goes on. I'm afraid it has a long way to go.
Russell also thinks gold is poised to rise without a significant correction, seeing a lot of bullish catalysts on the horizon given macro and sentiment factors:
Gold is finally above 1600 again, and I think it has moved into a buying range. I no longer see a BIG correction ahead for gold. As the euro and other junk fiat currencies weaken, there will be more and more buyers of gold
(snip)
(Excerpt) Read more at businessinsider.com ...
Lead, copper, brass and gunpowder.
Stocks always win in the long run.
Inflation will keep the market high.
And gold and silver and oil and bread and beer...
Also some silver to pay bribes when all else fails.
I did that first.
Then I bought dirt.
Then I went to a cash position in my retirement accounts.
Invest in ammo, silver, dirt, and gold.
But keep some cash, because you’ll need it until it is worthless.
I pulled out of the market before Hussein was elected. Took an ammo position long, long before that.
No, it will carry until the fundamentals which brought it about change
The stock chart for RGR reflects people’s SHTF gut feeling.
John Maynard Keynes: "In the long run, we are all dead."
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You stayed out of the 2009-2012 run-up from 6500 to 13000???
Give Mr. Russell a few weeks and he’ll change his mind...again.
I am unable to recall the last time this man was correct about anything.
If the Dow went to 2500, it would pay a 14% dividend.
That’s why it won’t go down that much. At 10,000, it pays over 3%, which is good in this economy.
When everyone is sure of something like a large kabumski to the downside, it seldom happens.
Morgan Stanley did a great job with Facebook, ay?
Thanks for the post!
You do recall that about 6-8 months before the election, the market was over 14,000 don’t you? So it took two years to get back up to ‘not quite’ and going down ever since. I don’t have that kind of trust in this country right now to stick with it for that long of a haul. The potential exists here that the market could wipe out all gains since then.
Of course but one buys on the dips. I got 90% out in October 2008 but I went back hard in early 2009. I missed the bottom but did just fine before getting 90% out again two months ago. My only current holding is MO.
I was preparing for retirement and wouldn’t chance it. I wouldn’t give a plugged nickel for a world under Obama.
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