From King World News:
At nearly 90 years old, the Godfather of newsletter writers, Richard Russell, warned that he expects this ongoing crisis to get very ugly. He also believes that we are seeing the end of a historic event. The 60-year market veteran described the feeling as the same thing he felt as World War II was coming to a close.
Russell: “In the 56 years I’ve been writing Dow Theory Letters, I can’t remember a more difficult or puzzling situation than the one we now face. Yet, day after day drifts by and the stock market holds fiercely together. … The dividend yield on the S&P Composite is now a micro 1.98%. At the same time the margin account on the NYSE is at a record high. The Dow and the S&P are both at record highs, and at the same time the VIX is near record lows. Thus complacency reigns in the face of a market that is near record levels of overvaluation.
This is a stock market that is not ready for any negativity or bearish developments. In the meantime, John Williams of Shadow Statistics warns that the government, in its desperation to paint an optimistic picture on the economy, is putting out phony or doctored information.
Below is the very important 30-year Treasury bond. I grade it now as bearish. It has crashed to its lowest level since May. As bonds declines, interest rates rise. This is occurring as the Fed lightens up on QE.
I feel as though I’m watching the terminus of some great historical event, much as I felt at the end of World War II.