Gartman suggested selling the rally at this year’s ‘beer market’

(Bloomberg) – Dennis Gartman is telling potential deep buyers to sell U.S. stock in a bear market he dated earlier this year, and hopes it will last several months.

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“The bear market started Jan. 5,” Akron Endowment University chairman told Bloomberg Radio on Monday, referring to the S&P 500 hitting an intraday record one day. “People need to understand this fact and adjust their business and investment perspectives accordingly. Rally selling is an effective strategy. ”

Gartman said it was “amusing” that there was controversy over whether stocks were on the bear market. The S&P 500 temporarily registered a 20% decline from its recent closing high on Friday, only to recover slightly from the level that traditionally defines a bear market.

“I’ve always been under the impression that anything below 7% is a beer-market area,” he said. “You have to be more defensive once we cut things down by 7%, and 20% goes down a lot before you start to be bearish.”

He downgraded the University Endowment’s stock position on December 31, 2021, and placed the money in Treasury Securities, which matured in two, three, four and five years, “which I consider essentially cash holdings,” Gartman said.

“I got about 25% cash,” said the former publisher of the influential Gartman Letter, in his personal portfolio. “And my only major positions are in gold and crude oil and products. I’ve had a wonderful time here for the last few weeks, and I’m going to continue. “

His bearish sentiment on financial resources stemmed from the Federal Reserve’s planned rise in interest rates and a sharp decline in balance sheets in an attempt to curb the fastest inflation since the 1980s.

Gartman, who has invested and analyzed commodity markets throughout his decades-long career, says he is generally interested in products other than soybeans.

“You want to own the gold market,” says Gartmann, as an inflation hedge. “You want to avoid cryptocurrency if possible.”

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