Posted on 08/24/2012 9:11:42 AM PDT by Hojczyk
Just as multiple Wall Street firms are ramping up their projections for the stock market, veteran hedge fund manager Dennis Gartman is getting out.
Gartman, author of the widely followed Gartman Letter, said Friday he has dumped his remaining long positions on stocks and is heading to the sidelines.
But he pointed out that a proprietary index his firm uses fell 0.8 percent in the past day, and he discussed at length why he thinks more stimulus from the Federal Reserve (learn more) is not as likely as some market participants expect.
"The steel industry in China is a literal disaster and steel share prices broke hard yesterday," he said. "Steel is a simple thing, like coal and ball bearings, and trucks and railroads. It is central to global economic strength. We'll bet in its favor once again in the not too distant future, but not now given that we were standing down from our previous bullish posture this morning."
(Excerpt) Read more at cnbc.com ...
Dennis is a smart guy, but I see this as a BIG buy signal.
Even super-duper hedge fund guys get crushed from time to time. No one is always correct.
Then there’s this: You CANNOT time the market and get away with it. Sooner or later, you get your bottom spanked(usually sooner).
-Rex
Well if you see our economy continuing on the path it is on, then I might agree with you.
However slowly people are starting to get it, that China is becoming a (much) bigger threat than anyone else. And they own (all) the factories in their country.
All of them.
That is to say, 51%. Of all of them.
It is time to change the laws, and begin building back what is ours.
We have no choice.
Your bearish outlook is very encouraging. Thanks!
-Rex
He’s getting out due to poor fundamentals? It seems to me the fundamentals have been horrible for 10 years or more. The stock market has only moved up with stimulus money. And that work work very well, or very much longer.
Can’t time the market, wolfman. The more people hate it, the better it gets.
Usually, you only make money when an investment doesn’t make you feel good. The tough trade is the right trade.
-Rex
Sam, I agree with you... and with Dennis. The fact that Doug Kass has also recently said the same thing (2 days ago) and for the same reasons, that starts to raise concerns. Dougie called the bottom in March 2009 down to the day... no knowing whether he’s right this time, but you have to respect his record.
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