From the latest Richard Russel newsletter:
Do your friends a favor. Tell them to “batten down the hatches” becauseHe comments on all the bullish news being put out by financial media, and disagrees.
there’s a HARD RAIN coming. Tell them to get out of debt and sell anything they
can sell (and don’t need) in order to get liquid. Tell them that Richard Russell
says that by the end of this year they won’t recognize the country. They’ll
retort, “How the dickens does Russell know — who told him?” Tell them the stock market told him.”
"The fact is that I’ve been seeing deterioration in the stock market ever since early-April, and this in the face of improving business news. The D-J Industrial Average is composed of 30 internationally known top-quality blue-chip stocks. These are 30 of “America’s biggest companies.” If Barron’s is so bullish on the future of America’s biggest companies, then why isn’t the Dow advancing to new highs?"
"Clearly something is wrong. But what could it be? Much as I love Barron’s, but I trust the stock market more. If I read the stock market correctly, it’s telling me that there is a surprise ahead. And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead".
About Russel: A native New Yorker (born in 1924) Russell has lived through depressions and booms, through good times and bad, through war and peace. He was educated at Rutgers and received his BA at NYU. Russell flew as a combat bombardier on B-25 Mitchell Bombers with the 12th Air Force during World War II.