Investors shouldn’t really be “alarmed” by the market sell-off, veteran trader Art Cashin told CNBC on Tuesday.

“To some degree it’s a buyers’ boycott,” the UBS director of floor operations at the New York Stock Exchange said on “Closing Bell.” In other words, volume wasn’t large because buyers were sitting out of the market.

“If you’re going to see the Dow down 800, you would expect you’d see somewhat of a stampede. You haven’t,” Cashin added.

At the lows of the day Tuesday, the Dow Jones Industrial Average was down more than 800 points.
Investors were reacting to the partial inversion of the yield curve, which means short-term rates exceeded long-term rates. A so-called yield curve inversion could signal an economic slowdown is ahead.

On Monday, the yield on the 3-year Treasury note surpassed that of the 5-year.

On top of the bond market action, fears about the U.S.-China trade war weighed on investors. Plus, there are renewed fears about Brexit after U.K. Prime Minister Theresa May’s government was found in contempt of Parliament.

But none of that led to investors selling “like a trap door is open” or a stampede where the volume is big, Cashin pointed out.

“This has no sign of capitulation at all,” he said.

— CNBC’s Fred Imbert and Reuters contributed to this report.


Products You May Like

Articles You May Like

Cramer’s lightning round: Cisco is currently the cheapest large-cap tech stock
Barbara Corcoran finds great deals on houses in hot markets—here’s her secret
Robinhood debate highlights the difference between FDIC and SIPC protection
JP Morgan faces potential class action lawsuit after guilty pleas by a former metals trader
Get a bigger monthly check by using these Social Security claiming strategies

Leave a Reply

Your email address will not be published. Required fields are marked *