I have just known that legendary Dow Theorist Richard Russell
passed away. More about his bereavement here.
I owe to Richard Russell my first dabblings in the Dow
Theory. He timely signaled the 2008 primary bear market, and, in the past,
before I was committed to the Dow Theory (or even born) he made very successful
calls. His book, “The Dow Theory today” is a very good one, and a must-read by
any investor really intend on learning the Dow Theory. Furthermore, his charts
spanning more than 100 years proved to be very valuable to me in order to
discern past market behavior and how would the Dow Theory have fared. His “Letters”
spanning more than 50 years are very valuable (especially, when he was a strict
Dow Theorist), and I learned a lot from them. I am happy I bought them some 4
years ago. They are gems in my Dow Theory library.
I feel that there were two Russells. The one I admire
was mainly a Dow Theorist of a mixed Rhea and Schaefer persuasion (more about
Dow Theory flavor and Russell’s “fit” into them, here)
There was another “Russell” who was beset by fear and
the memories of the Great Depression who made him a perma bear. Such “fundamental”
bearishness prompted him to ignore the clear readings of the Dow Theory, and,
consequently he missed many important bull markets. The trend towards ignoring
the Dow Theory and letting in extraneous elements was markedly present in his
last years.
May he rest in peace.
Sincerely,
The Dow Theorist.
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