(Bloomberg) -- Dennis Gartman, the veteran investing pundit, said stocks have hit a peak and its time to hold cash.
In Wednesday’s edition of his eponymous newsletter, the economist said he is “calling for a major, multiyear top on the equity markets following the recent volatility and following the reversals to the downside that took place yesterday in the Dow Industrials; the Nasdaq; the S&P and the Russell 2000.” He said the forecast represented a “watershed” moment.
Gartman wrote that stocks will suffer as monetary authorities slowly pull back on stimulus, and he’s concerned about a “violently random” trading environment in the past few months and reduced trading volumes. He plans to short equities or stay away from stocks entirely.
“It is time to hold cash; it is time to sell rallies; it is time not to buy weakness,” Gartman wrote. “We can trade other things bullishly, but equities we’ll not and as the markets rally this morning we shall watch from the sidelines.”