Great Values

Posted by Richard Russell - Dow Theory Letters

Share on Facebook

Tweet on Twitter

Richard Russell has made his subscribers fortunes. One of the best values anywhere in the financial world at only a $300 subscription to get his DAILY report for a year. HERE to subscribe. Amongst his achievements Richard was in cash before the 2008/2009 Crash and he has been Bullish Gold since below $300

Ed Note: Richard Russell is still bullish Gold and holds one of the largest single positions he has held in his life in the precious metals.


Question — Russell, you’re PTI has been rising for months. You have always held that “your PTI is smarter than you are.” If that’s the case, then why haven’t we loaded up on stocks and stayed with them as long as your PTI is in its bullish trend?

Answer — If you remember, I suggested buying DIA (proxy for the Dow) very close to the March lows. But after thinking it over, and after studying the March “bottom,” I was convinced that the March lows did not conform with my concept and experience with a true bear market low. I therefore suggested, “get out.”

I well remember Robert Rhea’s description of the great rally that followed the 1929 crash. Rhea said — that post-crash rally was taken to be a resumption of the great bull market. Volume was huge on the rally. But when it topped out and collapsed, more people were hurt than had been hurt during the ’29 crash.

I never ask my subscribers to do something that I wouldn’t do. I chose not to load up on stocks or DIAs during the advance from the March lows. That decision helped me to sleep soundly at night. Now the market is acting erratically. Time after time one Average (Industrials or Transports) climbed to a new high unconfirmed by the other. There has been a lot of divergence in which one Average advances while the other declines. There have also been a preponderance of “distribution days.” If I had held a full portfolio of stocks over the last few months, I would have been tempted to “clean house.”

I continue to emphasize the thesis that great profits are made in the buying. It’s been 28 years since the last great buying area appeared. That was the last time stocks could have been accumulated at great values. We’re overdue for another such “bargain period.” They’re known as authentic bear market bottoms.


The 84 yr. old writes a market comment daily since the internet age began. In recent years, he began strongly advocated buying gold coins in the late 1990’s below $300. His position before the recent crash was cash and gold. There is little in markets he has not seen. Mr. Russell gained wide recognition via a series of over 30 Dow Theory and technical articles that he wrote for Barron’s during the late-’50s through the ’90s. Russell was the first (in 1960) to recommend gold stocks. He called the top of the 1949-’66 bull market. And almost to the day he called the bottom of the great 1972-’74 bear market, and the beginning of the great bull market which started in December 1974.