With many high net worth individuals continuing to exit paper money, today the Godfather of newsletter writers, Richard Russell, had this to say about gold, fine jewelry, fine art, the economy and more: “What we're seeing now is flagrant divergence in the D-J Averages with volume sinking precipitously. This is a dangerous situation -- acute divergence in the Averages on sinking volume -- not good, not good at all. I feel that low volume in this case is highly significant. It's as though the very heart of the market is whispering ‘caution,’ as the smart money pulls back on its buying. It's notable that volume picks up on days when the market is down (a sign of institutional selling).”
Richard Russell continues:
“I've been reading two issues of my favorite magazine -- The Economist. They read like doomsday editions. Car makers in Europe (Germany is an exception) are doing poorly. The electronics business in Japan is lousy. Taxis in NYC are having a hard time -- a medallion in the City cost over a million bucks! The pharmaceutical industry is seeing hard times. Britain is nearly in depression. The Greek mess is still far from settled.
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