Richard Russell, author of the Dow Theory Letters, has been
one of the more vocal long-term bearson stocks.
More recently, he has warned that he’s actually bullish on stocks.
In his latest communique, Russell warns stocks could go parabolic in the near-term.
Here’s some of his commentary via King World News:
I continue to think that this bull market will end in an upside explosion. I believe it is fated to go higher than anybody now believes. A wise move here might be buy the farthest out calls as possible on the thesis that the sellers are convinced they will never be hit. Wise heads are now warning that this market has now passed all sane appraisals, and as such it is highly dangerous. Nevertheless I believe that this market is fated to go higher than even the most bullish practitioners can conceive.
This is not to say he’s a long-term bull now. He still expects stocks to eventually get punished.
“This bull market will not end with the usual and obvious technical indications,” he said. “It will end with an extreme of bullishness from the crowd.”
Nomura’s Bob Janjuah, another famous bull, sees things similarly.
“I still see end Q4 2013, through to end Q1 2014, as the window in which we see a significant risk-on top before giving way, over the last three quarters of 2014 and through 2015, to what could be a 25% to 50% sell-off in global stock markets,” warned Janjuah.
Even John Hussman thinks we could see a “vertical pre-crash blowoff.”
Ironically, many of the bulls are warning of a correction before the next leg of the rally.