Markets opened slightly higher on Tuesday after encouraging reports on housing, earnings, and as the U.S. dollar retreated. Art Cashin, director of floor operations at UBS Financial Services, shared his insights.
“This particular debate as to whether this is really a bull market moving along or where things are going? Some of the brightest minds in the business are on opposite sides and arguing vehemently,” Cashin told CNBC.
“You usually don’t get that.”
He said if people continue to use the dollar as a carry trade and if the trade begins to unwind, investors will have to “scramble to cover their shorts in the dollar.”
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“That could lead to a kind of chain reaction and that could lead to a bit more than a 10 percent pullback,” he said.
“If it were to be a chain reaction, it would be sharp and sudden—a little bit of what we saw yesterday (Monday).”
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No immediate information was available for Cashin or his firm.