Market Update Worth Reading

posted by Jack

Bloomberg News:  Stocks are bouncing back from their worst sell-off since December 2018, but economist Dennis Gartman is warning that this is not a dip worth buying.

Equities are “egregiously” over-valued relative to measures such as sales, profits and the size of the economy, according to Gartman, who last year ended his daily newsletter after three decades. The spread of the coronavirus is threatening global growth, and investors should buy safety assets such as gold and government bonds, he said.

“I’m afraid rallies are to be sold into, not weakness to be bought,” Gartman said in an interview on Bloomberg Radio with John Tucker. “I’m amused or dismayed at how many people are still willing to buy the dip, and this dip is far more serious than people want to anticipate at this point.”

Update 11:21 PST:  At the time of the above report the stocks were moving slightly upwards, they are now in retreat again. Gartman echoes what I firmly believe and I think this is a time for investors to be extremely cautious.

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2 Responses to Market Update Worth Reading

  1. Chris says:

    A shameful admission: I fell for fake news! I thought a tweet going around allegedly from Trump claiming that if the Dow fell 1,000 points in one day, the president should be impeached, was real. ‘Twasn’t!

    This is why it’s always important to fact-check.

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