With continued chaos around the world and uncertainty in global markets, today KWN is publishing an incredibly powerful piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, discusses gold, major markets, and warns that the average person is terrified and depressed as the US collapses.
Russell: “As the year 2013 came to a close, the weekly Investor’s Intelligence survey of investment newsletters recorded the most lopsided ratio of bulls to bears — more than four to one in favor of bulls — since 1987. At the same time, the National Association of Investment Managers showed one of the most bullish readings since the survey began in 2006. Of course, these are both fodder for contrary opinion.
Growth in the third quarter reached an annual rate of 4.1%, but much of that growth came from inventory building. Analysts are anxiously awaiting the end of January, since what happens in January often signals what may happen the rest of the year.
Remember that years ending in 4 tend to be poor years for the market. Meanwhile, the Fed has lopped off ten billion per month of its generous stimulation efforts. Every down January since 1950 has been followed by a bear market, a 10% correction or a flat market. So any way you look at it, January is an important month, and we can all hope that it ends up as a month that closes higher (although, as it stands, it has many hurdles to overcome, since its first week has been discouraging).
….continue reading this powerful piece HERE