Stocks Soar After Gartman Says “A Bear Market Is Required” And “Stocks Are Headed Lower”
To those who listened to Goldman trader Scott Rubner who in a note last night said “We Have Seen The Lows For The Year“, and bought the latest dip, congratulations. To those who are still not convinced, and believe that the slide has more to go, we present what may be the most irrefutable exhibit that the massively oversold market has nowhere to go but up: speaking to Bloomberg radio this morning, Dennis Gartman, who is no longer known as the author of the Gartman letter (since that was halted several years ago and is now being only sent out to “friends and family” for obvious reasons), but is instead the University of Akron Endowment Chairman, and who said that “A bear market is required at this point.”
“We had an expansion for a long period of time and I think over the course of next year, he or she who loses the least amount of money will be the winner.”
That he or she probably will excludes those who listen to Dennis, because if just going by this example, stocks have exploded since Gartman’s latest “forecast.”
For those who are worried they missed the Gartman dip, fear not: in the wide-ranging interview about stock market volatility and “over-valued” equities, Wall Street’s favorite contrarian indicator (at least until Ray Dalio’s “cash is trash” prediction became the surest indicator of an imminent market crash) predicted that prices should go lower within the next year and the 10-year Treasury yield will rise to 2-3% over the next several years.
“The Fed clearly will be tightening monetary policy rather than being as expansionary as it has been, and stock prices are probably headed — the best that one can say is, ‘Get the trend right’ and I think that the trend is now to the down, not the upside.”
And there goes your bearish case.
But it gets better: asked where investors should seek refuge to cope with a less accommodative central bank, Gartman recommended high-dividend stocks and to “avoid the high-tech stuff Cathie Wood et al. have been exposed to.”
“They’re having a rather difficult time and I think they’re going to have an even more difficult time over the course of the next several months,” he said.
Coming from Dennis, this may be the clearest indication that the bottom in ARKK is now in.
Mon, 12/06/2021 – 15:16