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Tags: art cashin | stock | market | split | personality | correction

UBS' Art Cashin: Stock Market's 'Split Personality' Could Set Off Correction

Art Cashin/UBS

By    |   Monday, 20 November 2017 10:01 AM EST

Investing guru Art Cashin warns savvy investors to prepare an escape route from the seemingly endless bull stock market. The wall just may come tumbling down quicker than you expect.

."We've been setting record new highs, and often the breadth has been negative. We've had more declines than advances," Cashin, UBS' director of floor operations at the New York Stock Exchange, recently told CNBC.

He warns that the market’s "split personality" is manifesting itself in the stock market, and it could hit Wall Street where it hurts at any moment.

"We're starting to get more new lows than new highs; 30 percent of the stocks in the S&P [500] are down for the year. Those are very unusual combinations with new record highs," he said.

"I'm troubled by the market internals, and I'm very cautious about what is going in Washington," he added.

"We haven't had a drop of 3 to 5 percent in an abnormally long period. So, that would be my first target," said Cashin, who points out he's never seen an environment quite like this one. "You want to play it cautiously."

To be sure, investors have been hopeful that a tax bill under debate in Congress will boost corporate earnings and further fuel the stock market’s record-setting run, Reuters reported.

Congressional Republicans took important steps on Thursday toward the biggest U.S. tax-code overhaul since the 1980s, with the House of Representatives approving a broad package of tax cuts. The debate shifts to the Senate, where a bill has already encountered resistance within the Republican ranks.

A Reuters poll showed that nearly two-thirds of more than 60 economists said they were not confident the Trump administration would get the legislation passed this year.

“I think there is a fear that they are not going to be able to get enough support to really get something on the president’s desk to sign,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.

© 2022 Newsmax Finance. All rights reserved.


InvestingAnalysis
Investing guru Art Cashin warns savvy investors to prepare an escape route from the seemingly endless bull stock market. The wall just may come tumbling down quicker than you expect.
art cashin, stock, market, split, personality, correction
327
2017-01-20
Monday, 20 November 2017 10:01 AM
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