Art Cashin: What's Pressuring Bank Stocks—and the Euro
With stocks under pressure and the euro tumbling to 18-month lows on Friday, Warren Myers, CEO of Walter J. Dowd, and Art Cashin, director of floor operations at UBS, shared their market insights.
Although gold has run to record highs in the wake of the Eurozone debt crisis, Myers said he's surprised the precious metal hasn't risen higher—and he thinks it has more room to the upside.
"As long as the euro's under pressure and there's concern about paper currency, gold will continue to go higher," he said.
As investors flee equities searching for safety, he expects the classical inverse relationship between the dollar and stocks to continue, he said.
Cashin advised that he would avoid financials—some of the day's biggest decliners—as prosecutions and regulations could "stymie initiative" and "handcuff things."
He said an earlier rumor that France's credit rating could be in jeopardy accelerated the selloff in the euro, as it added to the markets' contagion fears.
"That scared the heck out of everybody," Cashin said.
What They Said Last Time:
- Myers' and Cashin's Latest CNBC Appearance (May 13, 2010)
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Disclosure information was not available for Cashin, Myers or their companies.