Dan Sullivan Joins Richard Russell In Bear Camp, Moves To Cash

“Dan Sullivan, editor of two investment advisory services — The Chartist and the Chartist Mutual Fund Letter — emailed clients last night that he was changing his recommendation from being 100% invested in equities to being completely in cash.” reports MarketWatch’s Mark Hulbert.

Dan now joins Richard Russell who stated in a recent letter to subscribers that, “Do your friends a favor. Tell them to ‘batten down the hatches’ because there’s a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don’t need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won’t recognize the country.”

Russell gained wide recognition via a series of over 30 Dow Theory and technical articles that he wrote for Barron’s during the late-’50s through the ’90s. Through Barron’s and via word of mouth, he gained a wide following. Russell was the first (in 1960) to recommend gold stocks. He called the top of the 1949-’66 bull market. And almost to the day he called the bottom of the great 1972-’74 bear market, and the beginning of the great bull market which started in December 1974.

Russell states in his May 18th letter, “…Here’s what I think. I believe that consumers in the US are confused and frightened and are cutting back on their spending. Americans are actually starting to save. Home foreclosures are slated to explode. All this is deflationary. Incredibly, despite the trillions the administration has spent to fight the deflationary forces of the bear market, deflationary trends still dominate. Yet in the background big money, wealthy investors, are seriously worried. In their hearts, they don’t trust fiat currency. They are familiar with the history of fiat currency, and they know that no fiat currency has ever survived for long. Therefore, these people are buying items of intrinsic value — gold, silver, platinum, gems, top quality art, rubies, jade, beach property, collectables. But what if deflation takes over? Even so, these items of intrinsic value will always represent wealth.”

“If the two averages violate their May 7 lows” (Dow Industrial Average and Dow Transportation Average), I see a major crash as the outcome,” Russell writes. With the exception of gold companies, Russell advises, “get out of stocks now, and I don’t give a damn whether you have paper losses or paper profits.”

If you feel strongly that Dan and Richard are right, you can gain access to the items of intrinsic value such as precious metals and commodities easily through the use of ETFs. Gold silver platinum, all are available and may be purchased as a fractional share of real secure metal.

Precious Metal Related ETFs:

PowerShares DB Precious Metals (DBP)
The PowerShares DB Precious Metals Fund (Symbol: DBP) (the “Fund”) is based on the Deutsche Bank Liquid Commodity Index – Optimum Yield Precious Metals Excess Return™ (the “Index” or “DB Precious Metal Index”) and is managed by DB Commodity Services LLC (the “Managing Owner). The Index is a rules-based index composed of futures contracts on two of the most important precious metals—gold and silver. The Index is intended to reflect the performance of the precious metals sector.

PowerShares Global Gold S&P Prec Metals (PSAU)
The investment seeks to replicate, net of expenses, the NASDAQ OMX Global Gold and Precious Metals Index. The fund normally invests at least 90% of assets in the securities and ADRs and GDRs based on the securities that comprise the underlying index. It normally invests at least 80% of total assets in securities of companies involved in the gold and other precious metals mining industries. The index is designed to measure the overall performance of globally traded securities of the largest and most liquid companies involved in the gold and other precious metals mining industry.

SPDR Gold Shares (GLD)
SPDR Gold Shares represent fractional, undivided beneficial ownership interests in the Trust, the sole assets of which are gold bullion, and, from time to time, cash. SPDR Gold Shares are intended to lower a large number of the barriers preventing investors from using gold as an asset allocation and trading tool. These barriers have included the logistics of buying, storing and insuring gold. In addition, certain pension funds and mutual funds do not or cannot hold physical commodities, such as gold, or the derivatives.

iShares COMEX Gold Trust (IAU)
The iShares COMEX Gold Trust (“Gold Trust”) seeks to correspond generally, to the day-to-day movement of the price of gold bullion. The objective of the Gold Trust is for the value to reflect, at any given time, the price of gold owned by the Gold Trust at that time, less the expenses and liabilities of the Gold Trust.

ETFS Physical Swiss Gold Shares (SGOL)
The Shares represent beneficial interest in the Trust, which in turn holds allocated physical gold bullion bars stored in secure vaults in Zurich Switzerland on behalf of the Custodian, JPMorgan Chase Bank, N.A.,. Each physical bar is properly segregated, individually identified and allocated towards the property of the Trust. All physical gold conforms to the London Bullion Market Association’s (LBMA) rules for Good Delivery.

PowerShares DB Gold (DGL)
The PowerShares DB Gold Fund (Symbol: DGL) (the “Fund”) is based on the Deutsche Bank Liquid Commodity Index – Optimum Yield Gold Excess Return™ (the “Index” or “DB Gold Index”) and is managed by DB Commodity Services LLC (the “Managing Owner). The Index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.

UBS E-TRACS CMCI Gold TR ETN (UBG)
The investment seeks to track the price and performance yield, before fees and expenses, of the UBS Bloomberg CMCI Gold Total Return index. The fund is designed to be representative of the entire liquid forward curve of the gold contracts. The index measures the collateralized returns from a basket of gold futures contracts. It is comprised of the gold futures contracts included in the CMCI with five target maturities.

PowerShares DB Gold Double Long ETN (DGP)
The investment seeks to replicate, net of expenses, twice the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.

Ultra Gold ProShares (UGL)
The investment will seek to replicate, net of expenses, twice the performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective.

iShares Silver Trust (SLV)
The objective of the iShares Silver Trust is for the value of the shares of the iShares Silver Trust to reflect, at any given time, the price of silver owned by the iShares Silver Trust at that time, less the iShares Silver Trust’s expenses and liabilities.

ETFS Physical Silver Shares (SIVR)
The investment seeks to replicate, net of expenses, the price of silver bullion. The shares are backed by physical allocated silver bullion held by the custodian. All physical silver held conforms to the London Bullion Market Association’s rules for good delivery.

PowerShares DB Silver (DBS)
The PowerShares DB Silver Fund (Symbol: DBS) (the “Fund”) is based on the Deutsche Bank Liquid Commodity Index – Optimum Yield Silver Excess Return™ (the “Index” or “DB Silver Index”) and is managed by DB Commodity Services LLC (the “Managing Owner). The Index is a rules-based index composed of futures contracts on silver and is intended to reflect the performance of silver.

Ultra Silver ProShares (AGQ)
The investment will seek to replicate, net of expenses, twice the performance of silver bullion as measured by the U.S. Dollar fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective.

ETFS Physical Platinum Shares (PPLT)
The investment seeks to replicate, net of expenses, the return equivalent to movements in the platinum spot price. The fund will hold physical platinum bullion, less the expenses of the Trust’s operations. The Shares are designed for investors who want a cost-effective and convenient way to invest in platinum with minimal credit risk.

UBS E-TRACS Long Platinum TR ETN (PTM)
UBS E-TRACS CMCI Long Platinum Total Return is designed to track the performance of the UBS Bloomberg CMCI Platinum Total Return, less investor fees. The CMCI Platinum TR measures the collateralized returns from a basket of platinum futures contracts. The commodity futures contracts are targeted for a constant maturity of three months.

iPath DJ-UBS Platinum TR Sub-Idx ETN (PGM)
The investment seeks to replicate, net of expenses, the Dow Jones-UBS Platinum Total Return Sub-Index The index is intended to reflect the returns that are potentially available through an unleveraged investment in platinum futures contracts as well as the rate of interest that could be earned on cash collateral invested in specified Treasury Bills.

ETFS Physical Palladium Shares (PALL)
The investment seeks to replicate, net of expenses, the return equivalent to movements in the palladium spot price. The fund will hold physical palladium bullion.

Market Vectors Gold Miners ETF (GDX)
The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the AMEX Gold Miners index. The fund generally normally invests at least 80% of its total assets in common stocks and American depositary receipts (ADRs) of companies involved in the gold mining industry. The fund is nondiversified.

Market Vectors Junior Gold Miners ETF (GDXJ)
The investment seeks replicating as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index. The fund normally invests at least 80% of total assets in securities that comprise the index. The index tracks the overall performance of foreign and domestic publicly traded companies of small- and medium-capitalization that are involved primarily in the mining for gold and/or silver. The fund is nondiversified.

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