GARTMAN: We Are Exiting All Bullish Positions And We’re Rushing To The Sidelines
Stocks tumbled yesterday after the FOMC minutes showed that many Fed officials wanted to reduce or end QE sooner than expected.
The Dow tumbled 108 points, and today stocks and commodities are down again.
In his latest “Gartman Letter,” Dennis Gartman writes that he has made “material changes to [his] position across the board” because of the shift in “tectonic plates” in “all of the capital markets yesterday”. Here are some excerpts:
“When tectonic plates in the earth’s crust shift earthquakes happen and when the tectonic plants shift beneath our feet in the capital markets margin calls take place. The tectonic plates have shifted and attention… very careful and very substantive attention…
must be paid.
“Simply put, the game has changed and where we were playing a ‘game’ fueled by the monetary authorities and fueled by the urge on the part of participants to see and believe in rising ‘animal spirits’ as Lord Keynes referred to them we played bullishly of equities and of the EUR and of ‘risk assets’. Now, with the game changing, our tools have to change and so too our perspective.