Cashin Concerned About Treasury Bonds

Last week’s news was dominated by the Dow shedding almost 350 points, following the Fed’s adoption of a highly cautious stance on the economic recovery. Art Cashin, director of floor operations at UBS Financial Services UBS, shared his views on this. According to Cashin, Treasury Inflation Protected Securities (TIPS) are what is making him most concerned. He added that when people are aggressively buying TIPS, it is a sign of a struggling economy. Investors should be “very cautious,” and a case of the infamous Hindenburg Omen repeating itself looms large. “That’s when you have a very large amount of 52-week highs and 52-week lows, which tells you that the market is confused,” Cashin said. The markets will present a clearer picture in the next 3-4 weeks, according to Cashin. Read more about this news here