Tags: Dennis Gartman | Ugly Correction | stock market | economy

Dennis Gartman: Stocks May Sink Another 16 Percent in 'Ugly Correction'

By    |   Tuesday, 04 February 2014 10:28 AM

The 5.5 percent drop by the Standard & Poor's 500 Index from its Jan. 15 record high isn't enough to constitute a bear market, but the correction will grow bigger, says Dennis Gartman, publisher of The Gartman Letter.

The index may have another 16 percent to fall, he tells CNBC.

"You can't say that a bear market has started until you've broken the trend lines — until you have rallied back, failed again, start to move lower. I'm not willing to say this is a bear market at all," Gartman said Monday, as the S&P 500 dropped 2.3 percent.

Editor’s Note: 18.79% Annual Returns . . . for Life?

"I just think you're going to have a very severe, very substantive and really quite ugly correction that will probably make a lot of people wail and gnash their teeth before it's done."

The S&P 500 stood at 1,749.22 in early trading Tuesday, up 7.33 from Monday. The index could ultimately drop to 1,475, Gartman says.

His advice to investors: "stay on the sidelines."

On Monday, stocks fell on news of weakness in the U.S. manufacturing sector. Emerging market turmoil and Europe's stagnant economy also are weighing on the market. Gartman says.

Not everyone expects a major downturn for stocks.

"As long as earnings and economic growth pick up, these past few weeks will just be a slight correction of some overshooting," Ivo Weinoehrl, a fund manager at Deutsche Asset & Wealth Management in Frankfurt, told Bloomberg.

"I wouldn’t yet call this a huge sell-off. There was a lot of room for disappointment. A number of isolated events which happened at the same time made people nervous. They are now more aware of the risks to the consensus bullish case."

Editor’s Note: 18.79% Annual Returns . . . for Life?

Related Stories:

© 2018 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
The 5.5 percent drop by the Standard & Poor's 500 Index from its Jan. 15 record high isn't enough to constitute a bear market, but the correction will grow bigger, says Dennis Gartman, publisher of The Gartman Letter.
Dennis Gartman,Ugly Correction,stock market,economy
317
2014-28-04
Tuesday, 04 February 2014 10:28 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved