Richard Russell, author of the Dow Theory Letters, is so bearish he hardly knows what to think these days.A month ago, he was worried there was an “ominous something out there waiting to materialise.”
And now, his worries are waking him right out of bed.
From King World News:
I woke up this morning with the distinct feeling that a chapter of the world had come to an end. I felt that a new world is being heralded. What this means I don’t know. The thought came out of my unconscious. It haunted me all Sunday. One chapter had come to an end, and a new one was starting. The new chapter may be starting in China.”
More on why we should be worried about China:
China’s Watergate — A top Chinese official is accused of wiretapping the president of China. The man who was thought to be the future president of China, has been caught red-handed in a crime: wire-tapping the (current) president of China.
Along with this crime, up to $180 billion is missing, and it is thought that there is a connection. China is the only dictatorship without one man (the dictator) in charge. China is ruled by a collection of dictators, and therein lies a problem — fierce and deadly competition.
What I learned over the weekend. China has a 9-man dictatorship; it is the only dictatorship that is not led by one man. When it was learned that one of the ‘dictators’ had wiretapped the Chinese leader, all hell broke loose. Uneasy lie the heads of the various Chinese leaders. Yet strangely, the Chinese stock average is holding steady. On the news the FTSE broke below its 200-day MA, and then bounced back above it again.
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