I do not share such extreme views on things. However, I never, ever think, that certain things cannot happen. As a trader, you have to accept that virtually anything can happen at any time.
I am always curious how people get extreme views like that so I was just asking. You may be right, I do not know. I do feel though, that since there has only been one time in history, where banks truly went down in mass, that it is an unlikely scenario. I do think keeping say 50k or so in a non-bank place is prudent.
The commercials have just gone long the gold market, so the timing is certainly much better for a long now than it was before, when they were short. However, the weekly uptrend has broken, so I am waiting for that to get back into an uptrend before considering any longs in the metals. If you look back into the 80’s peak you will see a surprisingly similar chart pattern, so no catching the knife for me. I will wait for the short term downtrend to turn up first.
Although there are challenges ahead economically, I do not foresee a global meltdown occuring. In fact, I see the possiblity of a very strong buy setup in stocks occurring in the fall, based on historical cycles. Time will tell if the setup is right when the fall comes around, as certain fundamentals need to line up at that time.
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