Whatâ€™s the word, mockingbird?
Dow Theory Letters
Question — Russell, if youâ€™re so damn smart, then how is it that most of the economists and analysts disagree with you? The fact is that most experts are now bullish on both the economy and the stock market.
Answer — I think Washington and the economists have brain-washed themselves. They are so blasted anxious to be optimistic, they are all listening to each other and all thinking alike. And when everybody is thinking alike, nobody is thinking.
Gold — I just talked to Leon, my old and trusted friend and coin dealer (858 459 2228). I asked Leon about Krugerands. â€œCanâ€™t get â€˜em,â€ he said, â€œEuropeâ€™s cleaned â€˜em out — theyâ€™re buying all they can find.â€ But American Eagles are still for sale.
Americaâ€™s greatest fear is deflation, as per the 1930s. Germanyâ€™s greatest fear is inflation, as per the 1920s.
Headline in the May 16 Financial Times — â€œGERMANS LEAD GOLD RUSH FRENZY. We have some extraordinary sales to German customers,â€ says Deborah Thomson, the Rand treasurer. â€œThe refinery which usually sells 2,000 coins to each customer at a time, said that last week it received an order from a German bank for 30,000 coins. Another banks requested 15,000 coins.â€
Late Notes — Another nasty and misleading day. Dow up, Trannies down. More â€œinternal marketâ€ destruction. Breadth on the NYSE down. Down volume on the NYSE was 59% of up + down volume. My PTI was down 4 to 6112. MA was 6076, so my PTI is bullish by 36, lowest number in months.
As we used to say, â€œWhatâ€™s the word, mocking bird?â€ The word, dear subscribers is â€œtrouble ahead.â€
Russell suggestion — Do your friends a favor. Tell them to â€œbatten down the hatchesâ€ because thereâ€™s a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and donâ€™t need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they wonâ€™t recognize the country. Theyâ€™ll retort, â€œHow the dickens does Russell know — who told him?â€ Tell them the stock market told him.
And as we say a fond good bye to Monday, we look forward.
Russell belief — behind every government or agency lies a secret crime against either the American people or the US Constitution.