richard russell - august 2002 prophetic comments

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    Could these comments made August 21 2002 be a sign of things to come?

    "Question — Russell, I take it that you’re thinking that this decline is just one leg of the bear market, and it’s a down-leg that has not been completed?

    Answer – That’s correct. When this down-leg finally hits bottom, which I think will occur before the end of this year, I believe we will then see a major upside correction that will take the market to a high next year in 2003. That corrective leg should serve to turn the crowd bullish, at least bullish near the highs. From the highs of next year, I expect the final or “C” down-leg to begin. This will be the “killer” leg, the most costly and most frightening leg of the bear market. I don’t expect this final leg to end before 2005 or even 2006. This final leg will end with stocks selling at great values.

    Question – What could occur to drive the final leg down to the point where stocks are at great values?

    Answer – I can only offer my own guesses. It could be a dollar collapse, it could be a debt melt-down, it could be war, it could be a collapse in the bond market along with severe credit troubles, it could be general social and political turmoil, or most likely it could be a severe recession (depression) in the US or even throughout the world."

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