Recently by Richard Russell: Accumulate Gold
I heard rehab for a broken hip was hard. That’s a false statement. It’s harder than hard. You have to build the strength in your good leg and both of your arms, to a point beyond your wildest fantasies. In other words, three of your limbs have to make up for the loss in strength in the leg that you can’t use.
On another subject, I just had a lengthy conversation with my son Ryan. Ryan is building a self-sustaining farm on 40 acres, two hours north of San Francisco. He and his friends have built a large house, that is comfortable enough to withstand the toughest winters. Ryan has a well that provides his own water, and he also generates his own electricity. I call him the last American pioneer. He is growing a huge crop of vegetables and has planted all sorts of fruit trees. His next step will be chickens and perhaps a few ducks. [Editor's note: and don't forget a cow and a few little pigs.]
I told him he’s in the right business for the future, which is a survival business. The stock market is just beginning to hint of the hard times that I see ahead. The almost insane world of debt is rolling close to the cliff and I see increasingly hard times ahead. Crumbling debt will act like a cement roller, crushing everything in its path. The occasional rebound or bounces on the lows will be sudden and short lived. As of now, both the Dow and the S&P are down for the year. I call this Stage One. Stage Two will occur if the Dow sinks into the 10,000 area. Stage Two Point Five will occur if the Dow starts trading below 10,000. I think if the Dow trades under 10,000, consumer sentiment will change from hope to fear and anxiety.