Did stocks hit bottom?
Investment guru Dennis Gartman, editor of the Gartman Letter, isn’t convinced.
Gartman supports steps taken by governments over the past few days to shore up their banking systems, a decision which seems to have buoyed investors.
“It’s better than nothing,” he told Bloomberg TV.
“It’s what we needed. It’s a good thing to see that governments understand the seriousness of the situation and are responding accordingly. Let’s give them some applause.”
And what of the jump in stock prices? The Dow Jones Industrial Average soared more than 5 percent in early trading.
“That’s a knee-jerk bounce from shockingly oversold circumstances,” Gartman says. The Dow plunged more than 18 percent last week.
We’re simply seeing a bear-market rally, he says.
“Is this end the end of the bear market? Probably not,” Gartman says. “Can we have 1,000 to 1,500 more points of upside to the Dow? Probably so.”
The recent plummet in commodity prices also has a ways to go, he argues.
“The strong dollar and global economic weakness have given rise to weakness in commodity prices in general,” he says.
The price of crude oil for example, has dropped 45 percent from its July record.
Gartman isn’t the only wary bear out there.
"I do not see us defining a new bull market in equity risk assets until we know exactly what this recession looks like," Tim Harris, chief investment strategist for JPMorgan Asset Management, told CNBC.
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