Robert Prechter, the opinionated Elliot Wave technical trader and permanent bear, argues in a recent discussion that the stock market is showing a “classic” “head and shoulders top” and therefore investors ought to liquidate their holdings and put most of their money in cash, with a little bit in precious metals.
Prechter doesn’t cite any evidence for this claim other than vague “technical indicators” (see the aforementioned “head and shoulders” reference).
Curiously, though he says to invest in cash and precious metals at the outset, he subsequently says gold prices will decline over the next six to seven years. Prechter therefore seems to make precious few predictions about which precious metals, or indeed which currencies, in which to invest.
From his discussion we can infer the following recommendations: Sell everything but cash and precious metals, except “precious metals” excludes gold. That’s a rather thin basis on which to trade anything, but there you have it.