Click Here to Subscribe Now! Try a 3-month trial for only $68

Richard's Wisdom

Latest Articles

Richard's Thoughts On Third Phases & Where We Currently Stand

Richard's Comments

 

All great bull markets come in three psychological phases. The first phase is the accumulation phase, during which sophisticated and value-oriented investors pick up what is generally being ignored.

 

The second phase is the phase where the seasoned professionals and a few more sophisticated funds take their positions. It is in the second phase where we see the most painful secondary corrections, which are almost always mistakenly taken to be primary bear markets.

 

PREMIUM - CLICK TO READ MORE

Richard's Thoughts on Survival Mode

Richard’s Comments

 

Today I'm going to present a discussion between two characters named A and B. Who are these guys? They're two guys who live between my ears. Somehow, these two clowns got into my skull over the weekend.

 

A – What are the fundamentals, the very basic fundamentals, of the investment world today?

 

B – Here they are, and I don't think you're going to love them. The world is overproducing. Not only is it overproducing, but it's overproducing at viciously competitive prices.

 

PREMIUM - CLICK TO READ MORE

Richard’s Thoughts on the Grandfather of Technical Analysis

Richard’s Comments

 

Ah, they never make it easy for Richard Russell.  Maybe I should have been a race-car driver or an oil field wildcatter.  But no, I chose a life of wrestling with the stock market.  No use whining, Russell -- get over it.

 

During the period of 1958 to the late '90s I wrote a series of over 30 Dow Theory and technical articles which were published in Barron's. I wrote them in the hopes that Dow Theory might be better understood or actually understood at all. Whether these articles made any impression on Wall Street I really don't know. Judging from what I hear and see, the impressions, if there were any, were minor indeed.

 

PREMIUM - CLICK TO READ MORE

Richard’s Thoughts on Long-Term Returns

Richard’s Comments

 

It’s interesting, but the great portion of what we hear about stocks today is concentrated on near-term performance. CNBC has even reduced stock analysis to quarterly earnings (after all, they have to fill up a lot of time each day).

 

Yet when stocks collapse, Wall Street’s apologist-strategists talk about “holding for the long term.” Ah, there’s the irony. THE DEPRESSING FACT IS THAT STOCKS ARE NOT PRICED TO BRING IN HEALTHY RETURNS OVER THE LONG TERM.

 

PREMIUM - CLICK TO READ MORE

Richard’s Thoughts on Human Nature

Richard’s Comments

 

I spent the weekend re-reading my collection of Robert Rhea's Dow Theory writings and also re-reading William Hamilton's great book "The Stock Market Barometer." Hamilton (a Brit) was Dow's understudy and fourth editor of the WSJ. Talking about Dow Theory, Hamilton writes, “But the pragmatic basis for the theory, as working hypothesis if nothing more, lies in human nature itself.”

 

PREMIUM - CLICK TO READ MORE