As people continue to digest breaking news from around the globe, today the Godfather of newsletter writers, 90-year-old Richard Russell, warned of a great threat to humanity that is about to be unleashed on the world. He also discussed the greatest mistake of his life, the importance of peace of mind and much more.
Great Threat To Humanity To Be Unleashed On The World – The Rise Of Robots
Richard Russell: "Apple in the DJIA; AT&T out. A wise switch and one that makes sense. I just read an interesting article on the rise of robots. Companies with millions of employees like McDonalds and Walmart will be using robots as they fire thousands of employees.
Russell Called The Market's Reaction Perfectly
My comment last Friday that the stock market’s first reaction to unexpected news is often the wrong one (see small portion of Russell's Friday commentary at the bottom of the piece). An hour before the close today, the Dow is up and back above 18,000 again. As I write gold is selling at 1166.5, below the critical 1200 level.
It's About Peace Of Mind
The news and newspaper headlines are so complex and confusing that I now turn to market action alone. In the spirit of peace of mind, today I sold my small market position in the hopes of finding a more relaxed night of sleep.
"I Will Hold Physical Gold And Silver As Long As I Live"
Over the long haul, physical gold has kept up with inflation, which is why I will hold physical silver and gold as long as I live.
Money from around the world continues to favor the US dollar. A stronger dollar will have a negative effect on gold, across the board.
My largest investment position continues to be in TriContinental Preferred, which stuck its tongue out at Friday’s decline and rose to a record high of 51 3/8 on that day.
Buffett's Key To Success
Warren Buffet recently released his annual letter to shareholders. I note that in a previous interview, Buffet prescribes his amazing success to three items: 1) he was born in America, 2) he lived to a ripe age of over 80, and 3) he understood the magic of compounding.
Greatest Mistake Of My Life
In retrospect, the greatest mistake of my life was in 1965 when I bought ten shares of Berkshire (price $250) and later sold them. I should have mortgaged the house and put every last cent I owned into the stock of Berkshire. Who knew?
Gold Is Trying To Discourage The Last Gold Bulls
Gold is trying to discourage the last gold bulls. There is obviously one or more large buyers waiting to gobble up gold on any weakness. Who could the buyer be? My candidate is China, which plans to take over the world’s reserve currency with a gold-backed yuan."
Russell Is A Legend For A Reason
Fantastic Friday commentary he referred to above (plus a note on gold and silver): "Surprisingly bullish news came out about employment. The market’s reaction was that the economy is improving and that the Fed will raise rates. The market’s first reaction to unexpected news is often the wrong reaction. On the bullish employment news, money poured into the US dollar and Treasury bonds got hit hard. Historically, the first increase in rates is not bearish for the stock market. Therefore, the big drop in the market today (Friday) may have been the wrong reaction.
A follow through on the downside on Monday would be bearish. But investors, thinking the situation through over the weekend, might take the bullish employment news as just plain bullish for the US economy. We are now dealing not only with the economy, but what the Fed will do next. The days when the market’s function was to discount future events in the economy have given way to investors attempting to psychoanalyze the Federal Reserve.
Sitting With My Gold And Silver
The market’s first reaction to unexpected news is often the wrong one. I’m sitting with my physical silver and gold and small market position. There’s nothing easy about investing, particularly with the Fed calling the tune." I would encourage all readers around the world to access Russell's 90 years of wisdom and remarkable writings at Dow Theory Letters by CLICKING HERE TO SUBSCRIBE.
***ALSO RELEASED: Currency Wars Continue To Rage – What Does It Mean For Gold? CLICK HERE.
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