Wednesday, June 23

Don’t be alarmed about market sell-off, says veteran trader Art Cashin

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.


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