In terms of risk management, there's really only one thing that matters, and that's the possibility that the world is going to end this Saturday.
UBS floor guy Art Cashin conveys the attitude among traders going into this big day:
The Agnostic’s Farewell Luncheon – The potential end of the world predicted for Saturday prompted a good bit of conversation at the Friends of Fermentation last evening. Much of the discussion had to do with what would be the most logical course of action to take, on the outside chance that the prediction might come true.
Market and money making suggestions were quickly dismissed. Buy puts? Don’t be crazy. The trade would never clear. You can’t collect if you’re dead.
Finally, it was determined that the most prudent course of action for an agnostic would be to join friends in an elegant and probably expensive luncheon and put it on a credit card. “Waiter!” Twenty-three lobsters for table 6 please”.
See you Monday – we hope.
Consensus – There is a sense that something important may happen this weekend (assuming the world doesn’t end – which would be very important in itself). Watch currencies and newstickers and stay very nimble.
Now for why the world might NOT end this Saturday, here's a counterpoint.
