Tags: Dennis Gartman | Bear | Stock Market | Investors

Dennis Gartman: Bear Stock Market Has 'Begun in Earnest Globally'

Dennis Gartman: Bear Stock Market Has 'Begun in Earnest Globally'
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By    |   Thursday, 07 January 2016 11:54 AM

Famed investor Dennis Gartman said this week’s worldwide stock plunge is proof that a bear market has "begun in earnest globally."

The editor and publisher of "The Gartman Letter" cites plunging crude prices, rising gold prices and continued Chinese market volatility. “It's time to be bearish," he told CNBC Europe.

"You have to be less long of the capital markets," Gartman said. The wise move is to go to the sidelines with the cash you have, he said.

In October, he reversed his bearish stance and said he was then bullish on stocks, only to be proven incorrect as market weakness continued amid uncertainty over the timing of a Federal Reserve hike in interest rates, which eventually occurred in December to little fanfare in stock markets.

In retrospect, Gartman conceded that he made the wrong call. "You have to admit when you're wrong sometimes…I made one bad mistake by reversing myself," he said. "I was wrong for a month but now it's time to be bearish."

"I wanted to believe that the bull market had continued but it appears now to me that the bull market ended back in late May of last year.I think now we're in a real bear market and you have to err bearishly upon stocks, exiting long positions and entering short positions."

To be sure, Gartman isn't alone in his dire predictions.

American financier George Soros warned Thursday that weaker world markets, triggered by a slowdown in China, were showing signs of a financial crisis reminiscent of the 2008 crash.

Speaking at an investment forum in Sri Lanka, the magnate and philanthropist said China's flagging economy and subsequent devaluation of its currency were undermining global financial stability.

"We are facing a very serious transitional problem which is quite recent and it is, I would say, (something) that amounts to a crisis and we are at the beginning of that," Soros said.

"When I look at the financial markets, there I see a serious challenge, which reminds me of actually the crisis we had in 2008."

(Newsmax wire services contributed to this report).

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The wise move is to go to the sidelines with the cash you have, says Dennis Gartman, The Gartman Letter editor, sharing his strategy on how to play the global market plunge
Dennis Gartman, Bear, Stock Market, Investors
Thursday, 07 January 2016 11:54 AM
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