More corporations are holding onto their cash and afraid to spend because they fear that history will repeat itself, said Art Cashin, director of floor operations at UBS Financial Services. He discussed his market insights.
“They don’t want to mobilize the money, in case they need to use it again,” Cashin told CNBC.
“They know how uncomfortable they were when the commercial market froze up, so they want to have some ammunition ready in case things turn the wrong way," he continued.
"And when they got the scare in Europe in June and July, that got everyone to hunker down even more.”
In addition, Cashin said the economic data points are “evolving quite rapidly” so investors also should “hunker down” and “stay close to the ice cubes.”
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Aug. 12, 2010)
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No immediate information was available for Cashin or his firm.