Richard Russell, writer of the Dow Theory Letters, is just looking for the right time to buy stocks.
But that time isn’t now. And until that time comes, Russell will be keeping his wealth in gold.
He writes in King World News:
What I want to illustrate is that great fortunes are made at super-bear market lows. But you must have the money at the lows. Which is why gold is so singular and valuable. If you have gold at the bottom of the next bear market, you can exchange it for a collection of great common stocks orfunds, and then sit back and relax.
You are then betting on the lasting power of the US. If the US comes back, you will be rich beyond your wildest dreams. But you have to have the guts to hang on to your gold. And you need patience — the patience of ten men.
And when the time comes, things will get messy before they get good.
And I wonder — is there a super bear market waiting for us somewhere in the future? The great ride from the end of WWII to today has never been fully corrected. Some day it will be. And impossible bargains in stocks will be lying around — with very few willing or solvent buyers.
…My thinking is that sooner or later we will be subject to a major correction (bear market) that will wipe out or correct 60 years of inflation and leveraging. When that happens, I want to own the only kind of money that the Fed can’t destroy.