Art Cashin: Don't Be Fooled by 'La Cage Aux Folles' Market

One year ago today (Sept. 29), the Dow made history in the worst way, dropping 777 points.

Art Cashin, director of floor operations at UBS Financial Services, reminisced about the 2008 plunge — and offered his outlook for the stock market going forward.

Cashin notes that the 2008 "Black Monday" drop was sparked by the US government failing to pass a financial rescue bill.

"There was this great sense of disbelief. ...It was like being on a ship that's in trouble and running up and looking in the wheelhouse and seeing the captain and the officers punching each other, instead of working together."

He touched on today's CNBC interview with mega-investor Wilbur Ross:

"I agree with what Wilbur said earlier — it was a mistake to let Lehman go under."

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Looking forward, Cashin cites Pimco chief executive Mohamed El-Erian, who told the Financial Times that the market is "at a point of maximum confusion" and that "the biggest mistake is sticking with the short-term view."

"Right now, it's the financial equivalent of 'La Cage aux Folles,'" said Cashin. "What you think you're seeing is not exactly what you're looking at."

"That revelation will slowly come home to roost as we get through earnings season."

Watch the full interview for Cashin's take on Halloween and share prices.

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Disclosure information was not available for Cashin or his company.