Author Of Dow Theory Letters Sees High Risk Of A “Major Crash,” Asks Investors To Square Their Position

In an article on CNBC, Richard Russell, the author of the closely-watched Dow Theory Letters newsletter, has advised investors to exit the US stock market right now. He stressed that the risk of a “major crash” occurring would become very high if the Dow Jones Industrial Average falls below 10,380.43, the level reached on May 7. Russell wrote, "If I read the stock market correctly, it's telling me that there is a surprise ahead. And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead." He further warned, "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 in order to get liquid. Tell them that Richard Russell says that by the end of this year they won’t recognize the country. They’ll retort, ‘How the dickens does Russell know—who told him?’ Tell them the stock market told him." The Dow has been spelling problems for Richard since April. "If business is even better than expected, then why is the Dow down over 600 points?" he pointed out. Read more from Benzinga's Markets.