Richard Russell—World’s Disastrous Situation to Produce The Greatest Bear Market in History
The comments below are an edited and abridged synopsis of an article by King World News
As people digest news from around the globe, Richard Russell warns that the world’s disastrous situation will produce the greatest bear market in history. Russell also shares his strategy for surviving the coming chaos.
Richard Russell: “Today everybody watches the news with the intensity of a barn owl searching for mice. Over the last few days I think I’ve seen over 100 technical studies all saying that signs of a market top are missing. The definitive characteristics of market tops have not yet appeared.”
“To which I reply, what about long-lost Dow Theory? The Industrials have recorded new record highs and yet the Transports refuse to confirm. The Transports are below their 200-day moving average, yet the Industrials fluctuate within a few hundred points of their all-time high.”
The Transportation Average is a mixture of airlines, truckers and rails. Industry may be producing the goods, but if the goods are not moving, the economy is in trouble.
Investors should hold physical silver and gold and avoid almost everything else. The US dollar has been the prized item for many months; foreigners have wanted dollars so they can buy US stocks and Treasury bonds. But suddenly doubts have arisen about the health of the US economy. The dollar is overbought and may be topping out.
Keep an eye on both the dollar and transports; they may have reached a top.
The article closes with a discussion of the world’s predicament that will produce the greatest bear market in history, and the disastrous endgame.