I have to say, given the exhausted consumer and weak global demand, I was skeptical that the traders and churners could keep a sick dog hunting for 5 full years this cycle…but congrats to them are in order I guess. On the other hand, it just means world markets are back teetering in a hellish state of over-valuation for the third time in the past 15 years. The more they over-lever, the more painful the payback every time. Of course, the long-always insist the down cycles are completely random and unforeseeable, so they will never admit the symmetry in human behavior driving these cycles…Please share this article
Today KWN is pleased to share an important piece from 50-year veteran Art Cashin, who is Director of Floor Operations at UBS ($650 billion under management). Cashin discusses the Fed decision and why the markets may turn “hyper-volatile.” This is an extremely important piece that includes a fascinating guest commentary on the turmoil taking place overseas.
By Art Cashin Director of Floor Operations at UBS
January 29 (King World News) – “On this day (+1) in 1876, an already legendary medical professor at Edinburgh University began to address a new group of students. He began his lecture with his usual demand for observation. He pounded on his theme of the “vast importance of little distinctions” of the “endless significance of trifles.” “Yeah, yeah!” thought the students (or whatever the 1870′s equivalent of a cynical “yeah, yeah” was). Sure you’re a famous surgeon and professor but what will all this minutia get us.
He called for the first patient. Then, according to published reports, the following happened -
A man walked in and stood for a moment. The professor walked around him slowly, twice. Then the professor said something like – “Army…recently discharged….probably Scots Highland regiment. (“Aye! Sir!” came the reply). Next – you were likely a non-commissioned officer…likely in the West Indies - perhaps Barbados.”