Richard Russell Warns The Primary Trend Of The World Has Now Turned Negative
KingWorldNews.com
Sept. 4, 2015
Today the Godfather of newsletter writers, 91-year-old legend Richard Russell, warned that the primary trend of the world has now turned negative.
1958 – 1980 – When Markets Were Still Free
September 4 (King World News) – One Last Job At The Age Of 91
Richard Russell: “I started writing Dow Theory Letters in Dec ’58, and since then I’ve never taken a vacation. DTL has always been me and my studies of the market. For many years ’58-’80 I was obsessed with the action of the market in that the stock market discounted future events when properly read.
1980 Onward – Fed Nightmare & The Avalanche Of Liquidity
Starting with the ‘80’s, the Federal Reserve literally took over the economy. The markets were no longer supply and demand, they were more about the demands of the Fed. The Fed’s mandate was to produce smooth and non-erratic markets and a favorable economy with jobs for all.
A bull market ended around January 1980, and since then we’ve had a flat and extended period of distribution, which I believe carved out an historic market top. This is the end of a long period of inflation, and the beginning of the correction that inevitably follows.
Since the undertone of America is inflation and leveraging, we are now in the period of deleveraging and deflation. This means recession, an economic situation that the Fed will not tolerate. The Fed has been attacking deflation with QE. Let’s hope that this avalanche of liquidity will somehow reach the middle class and inflame the economy again.
The Rest…HERE
