Richard’s Wisdom - “Richard’s Thoughts on New Highs”
I want to make this clear. I present my theoretical scenario, but my scenario is certainly not a guarantee of accuracy. In the end, I go by what the market is doing, and what I believe the market is telling me. If market facts change, I change. I'm always trying to construct a scenario based on the latest "market language," as I interpret it.
For instance, if the Dow, the Transportation Average, the S&P, GDOW and bonds all break out to new highs on increasing volume, then the markets will be telling me that we will be enjoying good times for at least the next six months to maybe a year out. But barring such a bullish series of events, I'll stick to my scenario of deflation, deleveraging and hard times ahead.