Remembering an NYSE Legend

R.I.P Arthur Cashin

This week the NYSE lost a legend and the financial world lost an iconic voice; one that always provided clarity, wit and a down-to-earth relatable quality that told the story of the market like on else could.

Photo:Reuters, Richard Drew

When you heard Mr. Cashin talk, you listened.

In fact, I don’t think I ever asked him any questions in the 32 years our paths crossed, but I always listened.

He had the ability to tell a story like no one else. He knew history and gleamed lessons from it. He never went to college, but he had a PhD in the market and market psychology. One he earned, as Bob Pisani astutely put it, “on the floor of the NYSE and the many bars surrounding it.”

He was as sharp as a tack. He could tell you about every market twist and turn and put it into historical perspective to describe investor sentiment at the time of the move.

He was the calm in the storm, the floor broker that every one turned to when there was uncertainty. His insights were always welcomed and thankfully we got them everyday.

Cashin’s Comments…

His morning note was mandatory reading. It was simply typed out by his assistant from his hand written notes. He personally placed copies of it at the 11 Wall St. entrance for every one of the 5000 people that entered the trading floor to read.

It started with a history lesson, then a description of the current trading environment. It put things into perspective and told a story. He always told traders to stay nimble and what to watch for. He never made any bold predictions.

The most talked about part of the note was his daily trivia question you would find at the end of the newsletter. He never failed to disappoint and it was the daily talk amongst the floor community. To be honest - I was pretty good and used his trivia questions with my friends to look smart. It worked!

*Some examples of his trivia included…

Which U.S. state has the most miles of rivers?

What was the first product sold on eBay?

Who was the only U.S. President to serve as Chief Justice of the Supreme Court?

What is the smallest country in the world by land area?

The Story Teller…

For those of you that followed him on CNBC his appearances were always volume up and must see television. He never said anything controversial and was respected by everyone - literally everyone.

His longer form interviews were even better. Every year he and Bob Pisani would sit at the bar - first it was the NYSE Luncheon Club, then Bobby Vans and most recently Harry’s - and discuss market events. It was as if they were in my living room just hanging out. He never spoke over anyone’s head and made everything relatable. It’s a challenging skill set and one I try to emulate every time I discuss the markets.

However, the best place to hear those stories was in person at the bar. In my early career it was up at the NYSE Luncheon Club and when that closed it was at Bobby Vans across the street from the NYSE.

Again to quote Bob Pisani’s great book - Shut Up & Keep Talking - he would gather “with a coterie of friends and hangers-on he dubbed the ‘Friends of Fermentation’. He would engage anyone in an analysis of what was going on in the markets and the economy, but disdained academic and scholarly digressions on why the market was behaving in a certain way, or whether one trading style or another was more successful than others.

It wasn’t that he didn’t care, he cared very much. He just preferred a different style than academics.

He preferred to tell stories.

The stories always had a point. The purpose was to educate, but also to amuse.”

When he held court, you just took it all in. You stood amazed at the fact that this great orator and icon was taking the time to share his perspective with you.

Two of the best market historians - Art Cashin & Ralph Acampora. Photo Credit - Me!

I hosted many guests at the NYSE that always wanted to see Mr. Cashin, but I would never dare bother him on the trading floor. It wasn’t that he was busy trading - in fact, fun fact, I never witnessed him trade a single share since I started on the trading floor in 1992 - and his booth was right across from my post! I asked a few older brokers about why he didn’t trade, and they were quick to take jabs at him as being one of the worst traders they ever saw. I don’t know the accuracy of these statements, but heard enough to understand he added more value by being in the booth than in a trading crowd. But I digress…

I told those that wanted to talk to him the only real way to do so was over a drink at the bar. He would be there minutes after each close to “marinade some ice cubes”. I have a dozen or so friends that still tell me that was their highlight of their NYSE visit; they get no argument from me.

Words of Wisdom…

Some of his most insightful messages were quite simple, but within simplicity comes the most direct and thoughtful advice.

“Don’t fight the tape” - one of the older adages going back to the days of Jessie Livermore, but it is true today and will be true hundreds of years from now. It’s more important to follow momentum than fight the prevailing trend.

“Markets can remain irrational longer than you can remain solvent.”

My personal favorite - “the first thing you learn on the trading floor is that price makes news, not the other way around.”

“The stock market is like a barometer, not a thermometer”.

On a slow day he’d say - “today is a waste of cab fare and a clean shirt”.

“Expect the unexpected”, “it’s never different this time” and his classic sign off to traders to “stay nimble” were his way of showing respect to the market itself. He knew that no one was better or bigger than the market.

It is the people like Mr. Cashin that put things into a perspective that helped me see the bigger picture, learn and grow.

Because of his lessons, I frequently tell my guests that if anyone in this industry says they’ve seen it all, just walk away. That’s the greatest thing about working on Wall Street, you never know what the next day is going to bring. Ironically, it’s also the worst thing about it.

Personally and Professionally…

I wasn’t joking when I said I didn’t talk to him. I was involved in dozens of conversations with him over the years. He called me and younger brokers ‘kid”. I had the utmost respect for him, but I never bothered him. He was that iconic person that I struggled to feel as if I was worthy of his time. He was larger than life in an atmosphere that had so many big characters. It’s a regret I have now and that is on me.

He did congratulate me when I was later named an Executive Floor Governor. It was a title he held when it mattered a hell of a lot more than when I was named, but it was amazing to be recognized by him at that moment.

My foray into financial media literally started the week after he broke his hip and Covid was just beginning. I was asked to fill in for him once and wasn’t permitted thanks to my firm’s no media policy. Eventually my firm softened its stance and I also changed career paths. I went from floor trader to analyst. I sure missed the trading, but this has been a blessing. Now I channel him every time I appear anywhere. I want to represent the floor community in the best possible way. I want to be relatable and, hell, if I can tell a small story or crack a little joke then I will. I watched him do it since CNBC came to the floor in 1995. He never knew it, but he has been quite the influence.

Lastly, the thing that amazed me the most is that there wasn’t a soul alive that had a bad thing to say about him. When Dick Grasso was ousted in 2003, Mr. Cashin was the voice of reason to whom the members turned to. In a boardroom of a thousand restless brokers at a juncture in our history where we needed a voice, he got our attention. We listened and he led. He refused to entertain the notion that he be contemplated as a replacement to head the exchange. I can say with certainty if the membership at that time could’ve given him that role, he would have been a unanimous selection.

Going Out at All-time Highs…

It’s only fitting that he leaves us with the market trading at all-time highs. Sadly, he is leaving before one last year-end letter and one more chorus of Nellie.

That year end note was not only entertaining, but always left us with a few pieces of advice -

• Stay humble. The markets will always find a way to surprise you.

• Stay disciplined. Fads come and go, but fundamentals remain.

• Remember the big picture. Wealth is built over time, not overnight.

And for Nellie… as a young trader I never understood its significance. I kind of scoffed at it as something for those old-timers. Now as an old-timer myself, I have mad respect for him and those that paved the way for us. I look forward to this New Year’s Eve when many alums will come back to pay their respects and ring in the New Year and raise a glass and sing in his honor.

*Trivia answers… Alaska, a broken laser pointer, William Howard Taft, Vatican City