As the world continues to digest breaking news out of Greece, today the Godfather of newsletter writers, 90-year old Richard Russell, warned that the global crisis will get even worse, so investors need to dump all common stocks and buy gold and silver. Russell also discussed why even tougher times are still ahead for the world.
Richard Russell: “I had expected an upside blow-off to occur, based on the trillions of fiat money that has recently been created. I had also expected the world’s debt load to be lowered. However, I now see that instead of world debt heading lower, the debt load has actually been accelerating to the upside. The world’s balance sheet is now worse than ever.
Dump All Common Stocks – Buy Gold And Silver
I’m afraid that the prevailing forces of deflation will take over. If we go into a spiral of deflation, it will surely bring about hard times – harder times than the generations since WWII have seen. On this basis, I advise my subscribers to buy and hold physical silver and gold and be out of all common stocks.
Hyperinflation And Depression
The ECB is now following the Federal Reserve’s lead and has entered into the process of quantitative easing. Economist John Williams of Shadow Statistics believes we will shortly enter a period of hyperinflation and depression. Whatever our fate is to be, I believe we will see hints of it before 2015 has ended. I believe the area of greatest safety lies in the pure wealth of physical silver and gold.
I never thought I would reach the age of 90. Now, at the age of 90, I never thought I’d be worried about the future. Tomorrow I receive Barron’s, and it bothers me that Fred Hickey, who’s been bullish on gold, has been removed from Barron’s Board of Experts.
Turning once more back to the stock market, there are now six distribution days on the S&P and five on the NASDAQ. This bespeaks of a great deal of institutional selling, and it deserves caution on our part. The US dollar is now loved by investors and is heavily overbought. As such it is in position for heavy profit-taking.
Major Trend Change For Key Global Markets
Where are those who take profits in dollars liable to go? It seems to me that a good portion of dollar profits will go into gold and gold miners. The dollar is down today and GLD, GDX and GDXJ are all higher. Thus I believe we have seen a top in the US dollar and a bottom in gold and gold miners. Interestingly, the US dollar has been loved to an extreme and gold and gold miners have been hated to an extreme. A switch from one to the other makes sense.” You can access Richard Russell's 90 years of wisdom and remarkable writings at Dow Theory Letters by CLICKING HERE TO SUBSCRIBE.
***ALSO JUST RELEASED: Situation Continues To Deteriorate As Worries About Greek Crisis Intensify CLICK HERE.
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