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The ultra-low volatility in the stock markets seem to belie tensions brewing all around the world.Art Cashin, UBS Financial Services Director of Floor Operations, writes about it this morning.
From today’s Cashin’s Comments:
Geo-Political Cauldron Bubbles – I continue to marvel about how little of the geo-political challenges appear to be priced into the financial markets. The oil markets may be the only exception and even there the pricing is somewhat muted.
Bob Hardy in his top-flight GeoStrat blog runs down a list of concerns.
Hardy speculates on whether Iran may be plotting a multi-faceted counter for Israel.
Part one might be to encourage the Syrian unrest to spill well beyond Syria’s borders. There are already signs of disruption in Lebanon and border incursions in Turkey and Israel.
They could also unleash Hezbollah more directly on Israel and compound Egypt’s problems on the Sinai Peninsula.
China and Japan exchange strong words on disputed islands.
Street flare-ups in Europe (France, Greece) may bode a very fractious autumn.
“Watch that newsticker and stay very nimble,” says Cashin.