With continued uncertainty in global markets, the Godfather of newsletter writers, 91-year-old Richard Russell, warned that Americans are scared to death and he also declared what will confirm a new bull market in gold.
October 14 (King World News) – Richard Russell: “I want to start this site off with a bow to Fred Hickey, who puts out The High Tech Strategist. Hickey is a prodigious worker and reads everything. Fred is a true believer in gold and I read his work carefully.
…Americans are scared to death and befuddled by the news of the day. They are well aware that their own lives and jobs have little to do with the nonsense that the Fed and the government is shoveling out to them.
The Fed will raise rates next quarter — or the quarter after that– or the quarter after that — or maybe next year — or maybe in 2017. The economic statistics are not going through the way the Fed expected.
Early Stages Of A Historic, Primary Bear Market
I’m afraid that we’re in the early stages of a primary bear market. Each bear market has its method of attack. Although the main stock averages are near their highs, an amazing number of stocks have quietly dropped 20% from their peaks, thus placing them in single stock bear markets.
This bear market (and I’m calling it one) has developed a case of internal erosion. Stocks are falling apart one by one as the big averages tend to mask the damage. Bear markets are sneaky beasts and they like to do their damage as secretly and as unobtrusively as possible. I hate to say it but somewhere ahead, the bears going to get it all together and the innocent little stream is going to turn into a waterfall.
What can you do about it? Stay out of the market? Protect yourself by remaining in pure wealth, gold. For thousands of years, silver and gold have been treated as pure wealth. As the standard measures of wealth (stocks and bonds) have deteriorated, veteran investors have forgone profits and moved their assets into pure wealth.
I think the calm and easy part of this bear market has drawn to a close. We are moving into the high drama portion. Politically, I noticed a cartoon that tells a story. A hugely muscled and bare chested Putin is on the beach. Obama is sitting in the sand while Putin is kicking sand in Obama’s face. The question — how much sand will Obama eat?
Chinese And Indians Buying Gold In Huge Quantities
In the meantime, the story is that worried Chinese investors are dumping their stocks and buying gold in huge quantities. They are emulating the Indians, who are buying gold in huge quantities.
It seems like the Fed is more confused than ever. Any threat of raising short rates may be put off until 2017.
The year ahead is guaranteed to provide surprises and I sincerely hope that one of them will not be WWIII. I think Putin will push Obama as far as he can go, short of war. But mistakes happen, which is one reason why gold is creeping higher.
Breach Of $1,250 Confirms New Bull Market In Gold
I use $1,250 as the point of no return for gold. If gold betters $1,250 and stays there, I think we will have confirmation of a new bull market in gold.
Gold demand from China, India, Russia and other nations continues to be enormous. Chinese imports through Hong Kong in August were more than double that of a year ago. And gold withdrawals to the Shanghai exchange have been huge.” 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 Michael Belkin, the man who advises the most prominent sovereign wealth funds, hedge funds, and institutional funds in the world. Belkin covers the historic rally he expects in gold and the mining shares as well as what he expects to see in global markets for the rest of 2015, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Bill Fleckenstein Answers Important Questions On The Gold Market And QE4 CLICK HERE.
***KWN has also now released the powerful audio interview with Rick Rule, discussing what he expects to see in gold, silver and the mining shares as well as what he expects to see in global markets for the rest of 2015, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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