Shares are rising, but according to Art Cashin there are risks that may soon shake things up.
The ETF that tracks stocks with low market capitalization has lost nearly all the ground beneath its feet. According to the Director of UBS the trend is worrying, given what was expected of such shares after the victory of Donald Trump.
One of the Trump initiatives would be in international trade, therefore the multinationals might be under some stress.
There are two more problems that may soon affect markets:
Firstly, "people begin to realize that the Trump agenda will be far later in being implemented than people thought, that it's going to have more difficulty getting through Congress," he said. "Then the other one, which is more of a roll of the dice, is a geopolitical event."
Cashin mentioned tensions with North Korea in particular as a possible boiling point, but many market analysts also have their eyes on the upcoming French election.
With populist candidate Marine Le Pen gaining ground, all eyes are on the first round of the elections, which will take place in April and could cause volatility in the market.
Yet in addition to trouble possibly brewing across the pond, we are also watching next week's Federal Reserve.
Source CNBC
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