Dennis Gartman, author of the regular report The Gartman Letter, warns investors that if the US stock market rally will happen, it will not last long - on materials AMarkets.
Any rise in prices will be short-lived - the expert is convinced. Hartmann expressed his concern about the US monetary base metric St. Louis Fed. This is the same monetary base, which is calculated on the basis of all other financial aggregators. And this benchmark dipped dangerously. In mid-October, up from $ 4.1 trillion.
Two weeks ago, the value of its approach $ 3.6 trillion. The reduction could be because the Fed restructured its portfolio securities. In any case, this does not negate the fact that the money supply decreases. Recently, the stock market and raw materials were recorded Rally - investors believed that they were overly pessimistic at the start of the year, going too deep in the bear zone.
Yet Hartmann believes that optimism is also no reason to. While investors have recently become accustomed to think extremes. And many of today can easily think that the recent rise is a sign of complete correction and entry into a new bullish trend. So, it is not. Do not relax and hope for the best - expert advice.