Bonds Real Estate Stocks……What to Invest in now

Posted by Richard Russell Dow Theory Letters

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A Brief Excerpt from Richard Russell. Richard 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. Richard  has been Bullish Gold since below $300. He also loaded up on bonds in the early 80’s when US Treasuries where yielding 18%+. A 30 year bonds through compound interest would turn $1,000 into $300,000 at maturity. (include reinvestment of interest income, which Richard does as his view is compounding interest is the ROYAL ROAD to RICHES)


I’m thinking that there are a lot of desperate investors in this fair land. After all, you can’t buy a decent, well-rated bond and receive any interest. Stocks, by historical standards, are expensive, and if you don’t need ’em, my instinct is to live without ’em. Money market funds pay you little or nothing, and here you have an extra worry — you have to wonder what they are invested in.

Hey, how about buying a foreclosed house? Great idea, except that now you’re a neophyte entering a business you know nothing about. Sure, buy a house within walking distance of the beach, but these houses are all sky-high in price, and their owners are in no hurry to sell. How about buying a really cheap house out on the desert? That’s a fabulous idea, if you’re a Cactus.Wait, how about buying a recognized work of art by Matisse or Cezanne? Here, if the painting is one of their better works, the prices are sky-high and art, like houses, is usually very illiquid. You have to sell ’em at auction. The truth, you’re better off buying stock in Sotheby’s. It’s the auction houses that usually make the big bucks. That is unless you were smart enough to have bought your Matisse painting back in 1949.

OK, you’ve got me. I’m out of breath. How about doing nothing? That might work, depending on what you own now. If you’re loaded with gold or cash or high-grade big-carat diamonds, I’ll agree — do nothing. Maybe hang up a hammock in your back porch and turn on some good 1950s music. Tommy Dorsey or Artie Shaw will do.

It must be obvious — today’s crazy economy and low-volatility stock market are messing with my poor brain. I think of Marc Faber’s prediction that in the long run, “We’re all toast.” Will it be that bad? Can it be that bad? I got through World War II and the Great Depression, and I’m going to give it my all to get through the “toasty” times that Marc Faber foresees.

Maybe I’m too obsessional and maybe the Southern Cal sun has gotten to me, but I honestly think I can get through what I call the “hard rain” era with gold. Gold has been around a long time. Nations have fought for gold. California wwn ahes opened up via mens’ lust for gold. Have we finally reached the time nobody knows anything? If that’s where we are, I’ll bet my future on gold.


The 85 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. Only a $300 subscription to get his DAILY report for a year. HERE to subscribe.