Please allow me to make a bold prediction. I think a huge rally for the stock market is coming in the next few days.
As much pessimistic and gloomy as it looks like in the market right now about the increasing possibility for missing the deadline for raising the debt ceiling by Aug 2, I'm still very positive that the politicians will make a last minute deal to avoid a default that has never happened in the US history and will have an immediate catastrophic impact on the global financial world. Regardless how definitive Obama sounds like that he will not cave in to comprise for a short-term deal, he is after all a politician. As a politician, the first and utmost important thing for him is his own interest, i.e. his re-election for the next presidency. Don't be foolish enough to even think that he will be really thinking about the interests of the general American people first.
Therefore I dare to make a call that a deal is coming very soon before Aug 2 and the market will have a huge relief rally. Due to the same reason but in an opposite direction, precious metals will be plunging severely when the deal is announced but again it will be short-lived. Whether I'm right or wrong, I'm ready for both. No panic whatsoever!
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