From The Pragmatic Capitalist:

Recent action in the markets has Richard Russell growing increasingly concerned about the future market performance. He is now warning investors of an impending “second round of pain”:

“I know of only one rule that always holds true for the stock market. The market will advance to a state of overvaluation and over-enthusiasm, and this will usually identify a top.

The top is followed by a long road to a state of over-pessimism and undervaluation and this will identify a bottom. We call the extended and winding travels between these two - bull and bear markets. Most unusual is the investor who can...

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More from Richard Russell:

Richard Russell: How to know when to sell your gold

Richard Russell: After the rally could come a vicious collapse

Richard Russell: The only thing you need to know about gold and the stock market