Beholden to No Government

Dow Theory Letters (06/04/2010)
I've written that one of the most difficult things to do in this business is to enter early in a bull market and to "ride the bull" through the greater part of the bull market. By the same token, one of the difficult feats in this business is to exit early in a primary bear market and stay out until the bear market is within striking distance of its final low. I intend to do that, and I am going to badger my subscribers into doing the same thing.

Wall Street makes its living by selling its wares to the public. If Wall Street can't sell one variety of its wares to the public, then it dreams up another item. In this business, it's always a case of "buyer beware." In a bear market it becomes progressively more difficult to sell anything. In the final phase of a bear market, it becomes impossible to sell any item to the public. People "want their money back," and they'll sell anything they have to do that. That's always worked in the past, but I'm wondering if maybe this time is will be different. The reason I say that is that this time there may be serious questions about the dollar. Will people or institutions sell their best equities for questionable Fed notes?

That's where gold comes in. Gold is beholden to no government and to no central bank. Gold has no counter-party. Gold possesses the unique distinction of being wealth on its own. Gold haters and ignorant investment advisors fail to understand that fact. History tells us that these morons have to learn the hard way, usually by going broke near the end of a vicious bear market. Gold is beholden to no government and to no central bank. Gold has no counter-party. Gold possesses the unique distinction of being wealth on its own. Gold haters and ignorant investment advisors fail to understand that fact. History tells us that these morons have to learn the hard way, usually by going broke near the end of a vicious bear market."
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