Hold your gold!!!
Richard Russell snippet
Dow Theory Letters
Oct 16, 2008
...Close to three trillion
dollars in debt, the "realistic" figure being put
forth from economist Nouriel Roubini. The Fed will have to print
an ocean of fiat currency to cover these debts, and if
the dollar gets whacked by one of the myriad threats against
it we will be adrift in that ocean of greenbacks.
Obama is sustaining a healthy lead over McCain, and tonight's
debate might be McCain's last chance to show the public an economic
dialectic that is convincing. The economy is killing McMaverick,
with social issues the Republicans usually run on taking the
back seat.
Consumer spending, which makes up 68% of the US GDP is
falling precipitously -- this is very worrisome. The upper two-fifths
of consumers purchase more than the combined spending of the
other three-fifths. With Obama's tax increases taking effect
in a receding economy, we could really see a drastic turnaround
from the years of steadily increasing spending we've witnessed
over the last decade.
GOLD -- Subscribers have been asking about gold, whether
to sell or hold, whether to buy on a correction. The answer is
always "what you can sleep comfortably with," and that
doesn't mean what fits under your mattress. Gold has been holding
up very well-- if the dollar continues to inflate as per Fed
intentions, well-- gold will surge. Below we have a chart of
gold against the Dow Index, it has been a great hedge against
the losses on Wall Street.
Below we see gold versus the
Euro and the British Pound respectively-- still in strong positions.
Hold your gold!!!
Hold your gold!!!
People have been asking me for years who will take over my
business and continue the study and practice of Dow Theory
when I retire. My son Ryan has grown up with Dow Theory Letters
and has read my writing throughout his thirty years; he followed
the markets during his studies of landscape architecture at UCBerkeley,
his landscape architectural practice, and through his time designing,
building and operating a restaurant in San Francisco-- which
he sold recently to come join me after I had my TIA (mini-stroke).
Ryan has always been a excellent
writer (and an eccentric like I am) and will be helping me research
and write -- it's a relief.
Ryan has explored over 30 countries
and brings some new energy and perspective aboard so I'd like
to officially welcome him and remind him that I'm still the editor
around here!!!
Richard Russell
website: Dow
Theory Letters
email: Dow Theory Letters
Russell Archives
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