On the heels of continued volatile trading in key global markets, the Godfather of newsletter writers, 90-year-old Richard Russell, urged subscribers to buy physical silver ahead of the coming chaos. The legend also discussed what will signal that a full-fledged bear market is underway.
Richard Russell: "There are two items that bother me: One, the S&P has had 7 distribution days recently, and two, Apple stock is in full correction mode, down 14% from its recent high, and now below its 200-day moving average. Apple stock is widely held by mutual funds and hedge funds, and its capitalization is so huge that the stock can move markets.
Time For A Full-Fledged Bear Market?
I’m afraid that if the Dow breaks under 17,000 and Transports below 8,000, we will be in a full-fledged bear market. The Nasdaq has become a key leading indicator. If the Nasdaq breaks below 5,000 this will be a very bearish indication.
Economist John Williams continues to insist that the US economy is sinking into recession. The Fed must secretly agree with him, since they have still refused to raise short rates. If the Fed’s refusal continues, the stock market will suspect that perhaps John Williams is correct in that the US economy is a lot weaker than advertised.
The Fed Has Guaranteed That Chaos Will Unfold
I have never cared for the Fed’s interference with the natural law of supply and demand. In breathing, one cannot inhale forever. After inhaling you must allow stale air to leave by exhaling. In a normal market cycle, bear markets always follow bull markets. In interrupting the normal cycle, the Fed has paved the way for an enormous correction.
Recently I turned 91 years of age, and I can only hope for the best for the US and prepare for the worst. As for my subscribers, my thought is that the precious metals will outlast everything else.
Buy Physical Silver
Silver is now selling below the cost of production. I like the monster boxes of silver eagles put out by the Treasury. You should buy as much of them as you can afford. I would urge all KWN readers around the world to subscribe to Richard Russell's 90 years of wisdom and remarkable writings at Dow Theory Letters by CLICKING HERE TO SUBSCRIBE.
***KWN has now released the incredible audio interview with the top trends forecaster in the world, Gerald Celente, where he discusses his prediction for a global stock market crash and panic in 2015, as well as giving the KWN listeners a peak at the just released Summer Trends Journal, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Gold Sentiment Reaches 2nd Most Negative Level In The Past 25 Years As Commercial Hedgers Take On Gold Shorts! CLICK HERE.
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The audio interviews with Bill Fleckenstein, Dr. Paul Craig Roberts, Robert Arnott, Eric Sprott, John Mauldin, Stephen Leeb, Egon von Greyerz, Nomi Prins, Gerald Celente, Andrew Maguire, Michael Pento, Rick Rule, David Stockman, Chris Powell, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf and Rick Santelli are available now and you can listen to them by CLICKING HERE.