Stocks fluctuated Friday after a report on economic growth did little to reassure investors about the health of the economy, but also reinforced expectations the Federal Reserve will act to stimulate the economy as early as next week. Art Cashin, director of floor operations at UBS Financial Services shared his market outlook.
“Next week is supposed to be absolute magic: You’ve got the FOMC, election coming up, today’s the last day of the sell in May and go away so now it’s time to come back and you have a fiscal year ending for mutual funds,” Cashin told CNBC.
“Profitable tax sales made today get booked to the mutual fund holder this year and if they make a profitable sale next week, it gets booked in the following year,” he explained. “So we may have a bit of built-up pressure in that way too.”
Cashin also said that he is worried the Fed’s quantitative easing program, which initially looked like “the love boat” may turn out to be “the Titanic.”
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Oct. 26, 2010)
More Market Intelligence:
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CNBC Data Pages:
Major Earnings Next Week:
No immediate information was available for Cashin or his firm.