What is the Big Picture with stock market prices?
*Dow Theory Letters, by Richard Russell, July 9, 2012:
'A Critical Concept -- I want my subscribers to be acutely aware of
the very BIG picture. The big picture can be understood if you
fully understand the yield cycle. Throughout stock market
history, the yield on the Dow has run from tiny yields to high yields,
and back to minuscule yields again, and then back to high yields.
The yield on the Dow is now a minuscule 2.62% (indicative of a bull
market top). Ultimately, in this bear market we will see the Dow
decline to an area where the yield on the Dow is 6% or more (indicative
of a bear market bottom). The only way we will see high yields on
the Dow is for the Dow to head down. I don't know HOW the Dow is
going to go down. But I do know that the Dow will not head
straight down. The Dow's downward path to 6% or more yield will
be erratic and difficult to follow. The downward path will
probably include several cyclical (abbreviated) bull and bear
markets. If you can understand what I write in this paragraph,
you will know roughly what to expect in the (perhaps many) years
ahead.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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