Tags: Gartman | stocks | cash | gold

Gartman: 'I Got Scared' on Equities

By    |   Tuesday, 08 April 2014 11:13 AM

The stock market slump that began Thursday has erased Dennis Gartman's bullishness toward equities, leading the editor of the Gartman Letter to recommend selling stocks in favor of cash and gold.

The S&P 500's 2.4 percent slide since Thursday represents a "long-awaited and much-needed correction," he told CNBC. As for how that move made him feel toward stocks, "I got scared," Gartman said.

He was particularly frightened by market activity Friday, when investor sentiment seemed to suddenly shift. "I'm not sure what happened, but something happened between 11 and 11:15 [a.m.], that everything turned on a dime," Gartman noted.

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"The whole world switched at that period of time."

Gartman explained he slashed his equity exposure from an average of 100 percent to nearly zero.

To be sure, he thinks stocks are still in a bull market. "In a bull market there are only three positions you can have: really long, pleasantly long and neutral," Gartman added. "It's time to be neutral. . . . You don't need to be short, but you don't need to be long. I think cash is the right place to be."

Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research, doesn't seem to share Gartman's fright.

"The hot markets simply got overstretched, and it was probably time to correct," Detrick told Bloomberg. "The bigger picture is the S&P 500 has been up five quarters in a row. We seem to be ok. There’s nothing wrong with a little sideways action."

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The stock market slump that began Thursday has erased Dennis Gartman's bullishness toward equities, leading the editor of the Gartman Letter to recommend selling stocks in favor of cash and gold.
Gartman,stocks,cash,gold
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2014-13-08
Tuesday, 08 April 2014 11:13 AM
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