Russell tells King World News: “Success in investing includes a number of nonspecific items. Patience, avoidance of greed, desire for peace of mind, avoiding huge losses, experience and judgment. From the low of 2009, the major Averages have more than doubled, and have moved into overvalued territory in terms of book value, price to earnings and dividend yield.
My own judgment of the situation is that stocks in January to March have been overpriced, overloved and overbought. Furthermore, from a risk-reward basis, I have felt that if the market moved higher, which it could do, the risk would not be worth the reward, figured after taxes.
So much attention has been given to what the Fed will or won't do. Two weeks ago, the Transports rose to a record high, unconfirmed by the Dow. This alone was not fatal, but I considered it an act that called for caution. I felt the need for caution increased when both Averages slipped lower the next day.
Since my largest position is in gold, I’ve watched the yellow metal’s action with extreme interest. As I’ve said before, negative action in the economy and the stock market is a plus for gold. My belief all along has been that ...