Gartman recommends using gold as an inflation hedge and avoiding cryptocurrencies as much as possible.
In an interview on Monday, ” King of Commodities” Dennis Gartman said that the U.S. stock market has been in a “bear market” since the beginning of this year and is expected to continue for several months thereafter. He told investors who might be buying the dip to sell when U.S. stocks rebound.
“The bear market started on Jan. 5 of this year,” the University of Akron Foundation president said, referring to the day after the S&P 500 hit its intraday record.
People must understand this fact and adjust their trading and investing views accordingly. Selling on rallies is a viable strategy.
The debate over whether stocks are currently in a bear market is “interesting,” Gartman said. On Friday, the S&P 500 temporarily fell 20% from its most recent closing high, but has since recovered slightly. He said:
I’ve always thought that any stock market that drops more than 7% is a bear market. Once our stock fell 7%, you had to step up your guard, and a 20% drop was pretty low before you started to be bearish.
He reduced his college endowment stock position on Dec. 31, 2021, and put those funds into two-, three-, four- and five-year U.S. Treasury bonds, Gartman said, “I think It’s basically holding cash.”
Gartman also said that in his personal investment portfolio, the proportion of cash accounted for 25%.
And my main positions are in gold, crude oil and other commodities. I’ve had decent gains over the past few weeks, and I’m going to continue to hold.
Gartman’s pessimism about financial assets is mainly due to the Fed’s plans to raise interest rates and reduce debt , the Fed’s move to curb the fastest inflation since the 1980s.
Gartman, who has invested and analyzed commodity markets throughout his decades-long career, said he is generally bullish on commodities, except for soybeans.
Gartman Investors are advised to use gold as a hedge against inflation and try to avoid cryptocurrencies .
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