Richard’s Comments

One question I am frequently asked is, "How do we know when a bull market is topping out?"

First, we must determine which sentiment phase the market is in. Normally, the stock market will only top out when it is in the speculative or third sentiment phase.

Strangely, most market analysts - almost all of whom are considerably younger than I am – are not acquainted with the sentiment phases of a bull market.

Richard's Comments

Nothing created by the mind of man has ever equaled the stock market in terms of its sheer ability to frustrate people. Why is this? The answer is that the stock market frustrates because millions of traders and investors across the face of the US and the world are all trying to take money out of the market.

Richard’s Comments

I spend a lot of time wondering how the world is going to resolve the giant credit bubble problem. Right now, almost every living person, every state, every nation is a participant in the credit bubble.

The world and its citizens have bought what they want, and more, on credit, and now it's "payback" time. But nobody and no nation has enough money to pay off what they owe.

Richard’s Comments

I want to make this clear. I have presented 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.

Richard's Comments

From the standpoint of history, there's only one item of value that you don't have to worry about. Stocks can go down the drain, bonds can go bad, houses can lose their value, trends in art can change. But gold is immutable. It is changeless money. That's why men and governments hoard it.