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Russell - Future Gold Hysteria...Williams - Job Loss 150,000+
Richard Russell and John Williams are a couple of veterans who have been warning of collapse for some time now. Below, Williams addresses massive job losses, payroll contraction and the continued disastrous help wanted index. Russell, with well over half a century of market experience, explains in clear terms how this gold bull market will end. For what it is worth, RR has had his subscribers in gold and gold stocks since the mid to high $200’s in gold, a fantastic call on his part and very enriching for his followers.
September 3, 2010
John Williams:
I look for an outright payroll contraction in August, net of census impact, with the total jobs loss at good risk of exceeding the 135,000 to 150,000 range.
Unemployment rate consensus estimates for the August headline U.3 rate seem to be holding at 9.6%, up from 9.5% in July. The jump in unemployment should be more severe, particularly when short-term (U.6) and long-term (SGS) discouraged workers are counted.
In terms of related, underlying series, the Conference Board’s July help-wanted advertising index (newspapers), which leads August employment reporting, was reported again at 10 — unchanged for a number of months — and one point above its historic low.
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Richard Russell:
Me, I feel comfortable being heavily in the gold bull market. Why is that? It's because I"m convinced that the bull market in gold is not finished. Big bull markets don't end with a whimper. And that's where the gold market is now. It's quiet, it's almost in a daze. It's whimpy. No, big bull markets end in sleep mode. Big bull markets tend to end in hysteria. We haven't seen anything like hysteria in the gold market yet. I'm convinced that we will. But it may take a lot of patience and a strong stomach.
Amazing -- gold is still in its narrow rising channel and is close to a record high. Tight channels like this one are seldom seen.
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Eric King
