There's a hard rain a 'comin'
Richard Russell snippet
November 29, 2010 – (From RR November 23, 2010) Yesterday the Dow declined. If this market decline continues, it's going to catch a lot of bullish economists and bullish stock-holders shocked, and on the wrong side of the fence.
Ironically, just as the stock market was ready to fall, the North-South Korea altercation hit the news wires. This gave the public "a clear and obvious reason" for the market to fall. But the forces behind the fall were more serious than the Korean fight. The stock market was looking ahead; and it was discounting an ominous future.
From the Russell perspective, the stock market is duplicating where it was in April of 1930. The market is telling us that despite the rosy expectation, hard times lie ahead.
What I think we are seeing is the early break-up of the huge market top, the top that began forming in February of 2010. This is probably the biggest top I have seen in more than half a century of dealing with markets.
Over the past year, I've done my best to get my subscribers out of common stocks. I've asked (begged, beseeched, scolded, insisted, demanded) that my subscribers be out of common stocks (all except precious metal mining issues). I want my subscribers to be in precious metal items along with some cash -- cash will be handy and serviceable as long as it is accepted. We pay our rent, our restaurant bills and our taxes with cash. And we buy gold with cash.
Let me put it succinctly -- There's a hard rain a 'comin', and now it's just beginning to sprinkle. Forget about creating profits, our job is to avoid losing purchasing power. "In a bear market every one loses, but he who loses the least is the winner."
Richard Russell began publishing Dow Theory Letters in 1958, and he has been writing the Letters ever since (never once having skipped a Letter). Dow Theory Letters is the oldest service continuously written by one person in the business.
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