Richard Russell – Stocks, Fed & Gold Shorts To Get Squeezed
After the Fed meeting and the Cyprus fiasco, today the Godfather of newsletter writers, Richard Russell, came out and said the gold belonging to the United States may be missing, and that gold-haters are about to pay. He also discussed Bernanke, stocks, the Fed and more. Below is what Russell had to say to subscribers:
March 20, 2013
“I just heard Bernanke’s latest interview. He said that the economy is improving, just as he had expected. And he said further, that the Fed will continue their “open spigots” policy, which includes buying $85 billion worth of assorted bonds each and every month. Plus, of course, the zero interest rate policy. And hey you poor broke slob, if you don’t like the zero policy, then go buy some stocks or better still, buy a house, because Bernanke is dedicated to driving almost everything that moves or doesn’t move, higher and higher.
So what do you and I do? Easy, we sit with our DIAs and stay with them until I see signs of danger, which, by the way, are not visible yet. Of course, I am aware that on a dividend yield basis, stocks are now expensive, and this alone will prevent me from becoming wildly bullish. But I like the ride, and I like the way the DIAs are acting.
I’m going to include some exciting news about gold. After days and weeks of trying, Monday April gold closed ABOVE the 1600 resistance level at 1604.60. Due to the recent wide-spread pessimism and the “I hate gold” chorus, I believe the gold short position is about to get squeezed.
I’m convinced that closing above 1600 is very important and technically significant. Got gold? Remember, the Fed wants gold lower because the Fed hates gold. As we all know, gold is the arch enemy of Federal Reserve Notes. And I almost forgot, the Chinese and most central banks want cheap gold because they are accumulating it. April gold backed off a bit but is still closing above 1600 (to the consternation of the gold-haters). As I close, I can still hear Bernanke’s high, shrill voice. Gad how these know-nothings love to quiz the Fed head.