Famous investor Gartman: U.S. stocks are still in a bear market, and the bottom is only after falling more than 5% in one day

Dennis Gartman, a well-known investor known as the “King of Commodities”, said that the U.S. stock market will enter a bear market now and in the future, until one day there is a “sharp decline” signal that the market has bottomed.

“One day we’re going to see the stock market drop 5% or 6% a day, and that’s going to be the last selling pressure,” Gartman said. “That’s going to end the bear market.” Gartman added that investors should be “less involved” in the stock market and Try to be conservative,” “Whoever loses the least wins. “

Gartner believes that retail investors are still happy to buy on dips, and unless they abandon that practice and the market is “down 3, 4 or 5% in a day and another dip, I’m going to have to stay bearish.”

The traditional definition of a bear market is a 20% drop. The tech-heavy Nasdaq Composite is down about 25% this year, while the broader S&P 500 is down about 16%. The S&P 500 just recorded its biggest one-day drop of 2022 yesterday (May 9), down 4.29%.

reduce losses

Dennis Gartman, president of the University of Akron Endowment, has been bearish on the stock market for months. In January, he said stocks could fall as much as 15% in 2022. And on December 31, the equity ratio of the school’s endowment fund was cut by 12% to 15%.

“In February of last year, I actually moved 3% of our portfolio to 3% gold,” Gartman said. “I’d love to do that.”

He believes that the main reason for the decline in stocks is central banks shifting from very loose monetary policy to tightening in an effort to curb the worst inflation in decades. The stock market decline is a phenomenon that has hit global markets.

Last week, the Fed raised interest rates for the second time this year, by 50 basis points, and made clear it intends to tighten policy further to curb inflation.

Gartner has said in the past that he was wrong about a bear market forecast for 2021, when the S&P rose about 27%. But in 2022, he predicts that the market will continue to fall and be volatile.

This article is reprinted from: https://news.futunn.com/post/15358384?src=3&report_type=market&report_id=205047&futusource=news_headline_list
This site is for inclusion only, and the copyright belongs to the original author.