Richard Russell, the author of the Dow Theory Letters, is sticking to his call for a Dow theory “primary bear market.”
If anything, he might be getting increasingly bearish.
“The primary bear market — the leveraging and inflation and lying and cheating and shenanigans lasted from 1945 to 2007, about 62 years,” said Russell to King World News. My guess is that it will require maybe one-third of that time or roughly 20 years to clean out the economic stupidity and nonsense of those 62 years. That could take this bear market out to the year 2027.”
However, his updated call allows for short-term rallies, which could technically make his bearish thesis not wrong when the market goes up.
20 years would be a long time for a bear market, even a secular bear market. Therefore, you should know that I do not expect the market to head straight down for 20 long years. Actually, in the coming 20 years I expect to see a number of short cyclical bull and bear markets (much like the 1956 to 1974 period), and I expect to see many periods of boring trading ranges — all occurring within the overall pattern of a secular bear market
Read more at KingWorldNews.com.