ART CASHIN: Veteran Traders Can't Figure Out Why Markets Are Ignoring The Huge Geopolitical Risks

egypt riot fire flag

Photo: KHALED DESOUKI / AFP / Getty Images

Investors and traders have a lot to think about: the eurozone debt crisis, high oil prices, deceleration in China, elevated unemployment rates, etc.But some major issues may not be fully priced into the markets.

Art Cashin, UBS Financial Services director of floor operations, has been talking to traders and many agree that some big issues are being overlooked.

From today’s Cashin’s Comments:

Geo-Politics Still Ignored – Veteran traders have wondered for weeks about the markets whistling past a variety of geo-political challenges.  Yes!  Yes!  I know about Spain and Italy but they are potential financial crises not truly political ones.

A good example is the deteriorating situation in Egypt.  The Muslin Brotherhood went back on it initial promise and backed a candidate for president.  That raised the likelihood of a religious government and possible rule by Sharia law.

The ruling generals appeared to counter by encouraging a second Sharia candidate to possibly split that vote.  Then they entered a law and order secular candidate to block a shift to religious government.

The courts (thought to be influenced by the generals) ruled several candidates eligible (to enable that strategy).  Meanwhile, an election commission threw a wrench in the whole thing by disqualifying 10 candidates.

As the political outlook disintegrates, the country is running short of both food stuffs and currency reserves.  The world’s most populous Arab nation (and Israel’s next door neighbour) looks less stable each day.

And then there’s Iran.

SEE ALSO: 4 Art Cashin Brain Teasers That Will Frustrate You To No End >

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