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

Richard's Wisdom

April, 2016 Archives

Richard's Thoughts on Life

By the Dow Theory Team

 

Richard's Comments

 

I started Dow Theory Letters in early 1956. I started it as a hobby, mimeographing the letter to friends at a cost of $15 per year.

 

Towards the middle of 1958 I was mailing out 50 Letters, many to people I didn't even know -- people who were friends of friends.

 

Towards the end of 1958 I became certain that the market was in for a tremendous bull movement. The more I studied the situation (and the black prevailing sentiment) the more convinced I was that the market was going to explode on the upside. In fact, I was so convinced that I showed Bob Bleiberg (then editor of Barron's) a few of my Letters, and I told him that I wanted to write an article for Barron's.

PREMIUM - CLICK TO READ MORE

Richard's Thoughts on Gold and the Dollar

By the Dow Theory Team

 

As far as I can see, there's only one "safe haven" in the rapidly changing world of today. It's an item that has served as a safe haven for 6,000 years. Because gold is the only item that can't go bankrupt, for thousands of years, gold has been treated as pure wealth.

 

It's an item that seems to be embedded in the DNA of mankind. It's an item that has allowed refugees to cross enemy borders and live. It's an item that inspired men to pack up, leave their families and head West. It's an item that inspired Spanish explorers to conquer parts of America.

PREMIUM - CLICK TO READ MORE

Richard's Thoughts on the Primary Trend

By the Dow Theory Team

 

Richard's Comments

 

In all the years I've been in this business, I've never seen so much emphasis on trading and beating the market. And, of course, every week seems to bring news of some new option, warrant, future contract or trading vehicle.

 

With this much emphasis and energy concentrating on trading and timing, I predict that the traders are going to have a very hard time of it. The reason?

PREMIUM - CLICK TO READ MORE

Richard's Thoughts on Diversification

By the Dow Theory Team

 

Richard's Comments

 

Many readers have asked me, "Russell, how do you decide what you are going to write in any given Letter?" and my answer is twofold:

 

(1) I write about what I actually see happening in the market. For instance, if bonds look toppy or gold appears to be breaking out, I'll write about that.

 

(2) I write about what I happen to be thinking about. For instance, if I am thinking about values or stock selection, that's what I write about.

 

This week I've been thinking about one of my favorite subjects: diversification. Except in rare instances, I feel diversification is a MUST in investing.

PREMIUM - CLICK TO READ MORE

Richard's Thoughts on the Market

By the Dow Theory Team

 

Richard's Comments

 

Do you know the single most fantastic thing about the market? It is that there are no market experts. True, there are brilliant students, there are highly successful investors, but there are NO experts.

 

One of the things that I have had to learn when dealing with markets is that any person, any analyst, any man or woman, professional or otherwise can at any given time be DEAD WRONG.

PREMIUM - CLICK TO READ MORE