Richard Russell has been watching the markets on a daily basis for over 50 years – he has seen a few bull markets in his time
according to him, there are three phases to every bull market
in the first phase smart money recognizes a new trend and takes a position – in gold, this phase started in 1999/2001 as gold bottomed at the end of its long secular bear market
the second phase is when institutional money recognizes the new trend and takes a position – I’m not sure when the 2nd phase started but it is definitely happening now as we see news like this:
the third phase is when the public recognizes the ‘new’ trend (which has then been going on for literally years) – this is when taxicab drivers and hair dressers start telling you about how much money they just made in gold stock XYZ (remember the dot.com bubble?) – the third phase of a bull market takes prices to heights which even the bulls aren’t expecting (imagine investing in the Dow in 1982 when it was around 1000 – if someone told you that bull market would top at 14,000 you would not have believed them)
