Also Friday, widely followed market watcher Dennis Gartman said a bear market has already set in. He called Thursday’s stock market rally nothing more than a dead cat bounce.
“I think it began globally last May. I think it only became obvious in the United States over the course of the last several weeks. I think yesterday was nothing more than a modest correction, and I’m afraid prices are heading lower still,” the publisher of The Gartman Letter told “Worldwide Exchange.”
In this environment, he said, there are only three positions to have: really bearish and short of stocks, modestly bearish and short, or neutral. At present, the public should be neutral and holding cash, he said.
“Cash is the best place of all right now,” he said.
Gartman said investors should also consider holding a little good and should own it in euro terms because the dollar is likely to continue rising against the European currency.