Personal Finance
Richard Russell – This Terrible Collapse Is Going To Accelerate
Richard Russell: With continued chaos and uncertainty in global markets, today KWN is publishing an incredibly powerful piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, is warning that this terrible collapse is going to accelerate to the downside.
Russell: “We have been living through the greatest boom in recorded history. It started after World War II. And I wonder what will follow? Could it be the greatest depression in history? Frankly, that’s one thought that worries me. I believe as our economy and the world economy sink, the Fed, under Janet Yellen, will fight the forces of deleveraging and deflation with all the weapons and ammunition in the Fed’s arsenal.
This action will serve to keep bullish sentiment alive for quite awhile, and it will set off many false starts and deceptive rallies in the major indices and averages. To put it mildly, this advance from the October, 2009 low will not die quickly and easily. As the huge top builds, public sentiment will change from extreme optimism to puzzlement and then to pessimism.
One of the characteristics of a bull market top is an almost total lack of bears. The latest CBOE put-call ratio shows the fewest puts in over 10 years. My old buddy, the late Joe Granville, described a set of new highs on the NYSE, which he called the peak of a bull market. So far new highs peaked with 536 on May 15, 2013.
….to continue reading this powerful piece go HERE

One of the more interesting aspects about the market in 2014 is how much it has managed to defy expectations. Consensus has been consistently wrong; indeed, it seems that any time there is an agreement of sorts on just about any issue, the opposite has happened.
Merrill Lynch’s legendary strategist Bob Farrell put together 10 Rules for Investing, and his rule #9 states that “When all the experts and forecasts agree — something else is going to happen.” That certainly seems to be the case so far in 2014.
Consider the following cherry picked anecdotes as, well, not evidence, but support of Farrell’s dictum……. Continues Here

Financial advisors note mature, insightful investors in their 40s have time to build significant retirement savings. … full article

Trillions of dollars have been lost and gained over the last five years. The extreme volatility strangled investment portfolios, and as a result millions of investors capitulated by throwing in the towel and locking in losses. Melted 401ks, shrunken IRAs, and beat-up retirement accounts bruised the overarching psyche of Americans to the point they questioned whether the stock market is a shrewd bet or stupid gamble?
The warmth and safety of bonds provided some temporary relief in subsequent years, but the explosive rebound in stock prices to new record highs in 2013 coupled with the worst year in a decade for bonds still have many on the sidelines asking whether they should get back in?
….more HERE

They’re not millionaires, but the retired at 38 — that was 23 years ago
Yes, they earned above-average incomes before retiring — Billy was a broker and investment manager and Akaisha managed their restaurant in Santa Cruz, Calif. — but a big part of their retirement success revolves around cutting spending, monitoring expenditures, and being smart investors.
….read more HERE
