Friday, January 18, 2008

Art Cashin's Comments

Here's a brief paraphrase of Art Cashin's comments this morning on CNBC. I think he's one of the only reliable sources to listen to on CNBC. When the market freaks out, I pay attention to what he says.

On the big stories today, GE, IBM and OPex.

I see today as a three legged stool. GE, IBM, and options expiration. Two key blue chips reported good earnings but I worry about stamina, we'll know by 11 or 11:30 with the option expiration if this rally can hold together.

On the earnings.

GE and IBM are benefitting from the weak dollar. Helps the multinationals.

On the bond insurers.

However, the bond insurers are screwed. There are problems when the ratings agencies start downgrading the bond insurers. It's a shame. They had a sweetheart business and got into the bad side of things.

On sovereign wealth funds investing in US.

Money with terrific staying power. Looking for a higher rate of return. Money doesn't spring from nowhere though, so there will be less to buy US Treasuries.

In short, Goldilocks is in the ICU sitting up and taking fluids. We'll know next week if she's going to make it.

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