With speculation that the global economy, and equity markets, may be poised for the next leg lower (simply because it is difficult seeing global economic surprise indexes going any higher from current multi-year highs…
… we were waiting for Gartman to chime in, hopefully giving the “all clear.” Luckily, he did that overnight, to wit:
Here at TGL, in our retirement account… the only money we actually “run”… we are up 1.4% for the year-to-date and we are modestly net long of equities for we are long of a business development corporation that we buy, amongst other high dividend paying corporations, to try to capture the dividend stream and which gives us a modest market exposure; were long of cotton; we are short of the EUR via an ETF and we are long, of course, of gold in EUR and Yen denominated terms.
Our “net” equity market exposure then is relatively minor but given the longer term trend and given the minor correction to the downside over the course of the past three or four sessions, accompanied by rather obviously declining volume on the exchanges, our propensity is to find modest long exposure today. We may do so via simple long only equity ETF until we have conviction once again on viable, specific market sectors.
And yet, just a few paragraphs lower, Gartman adds:
The President is sending a signal to the market that trade will be more tenuous and tendentious in the future and almost certainly the trade with both nations will fall sharply this year, for what businessman or woman will want to increase trade when it is possible at a moment’s notice for the President to make that trade, if not impossible, clearly more and more difficult. It will become worse. Of that we are certain.
Oh well, at least puts are very cheap.
via http://ift.tt/2k8WF1j Tyler Durden