Dennis gartman, a well-known Wall Street investor who has been short of US stocks since last year and known as the "king of commodities", warned investors who want to bottom US stocks on Monday that any rebound is a selling opportunity during the bear market. He believes that the US equity bear market will continue for several months since the beginning of this year.
"The bear market began on January 5," said the president of the Akron University Endowment Fund, referring to the day after the S & P 500 hit an intraday record. "People must understand this fact and adjust their trading and investment perspectives accordingly. Rebound selling is a viable strategy."
Gartman said the debate about whether U.S. stocks are in a bear market is "very interesting". On Friday, the S & P 500 index fell 20% from its recent closing high, but closed up slightly.
"I've always believed that a decline of more than 7% is a bear market zone. Once we fall by 7%, you must strengthen your prevention, and 20% is quite low before you start bearish," he said
In an interview earlier this month, gartman said that U.S. stocks are not falling hard enough until the day of "violent decline", which is the bottom signal. "One day we will fall 5% or 6%, which will be the last selling pressure. That will end the bear market," he said
People are still happy to buy when share prices fall, he said. Unless they give up this practice and the market "falls 3%, 4% or 5% in a day and has another wash, I will have to continue to be bearish."
Gartman has been bearish on the stock market for months. In January this year, he said that US stocks could fall by up to 15% in 2022.
Gartman predicted that US stocks would fall into a bear market in 2021, but the S & P 500 index rose about 27% last year. Therefore, he was jokingly called a "reverse indicator" and had to admit that his prediction of the bear market in 2021 was wrong. But this year, he said, the market will continue to fall and fluctuate.
