Which equity market will underperform in 2015?
According to Denis Gartman the US market. The king of the commodities has everything clear in his mind finally. The US market is going to underperform respect to the global markets. In his last interview to the CNBC he argued that the most important reason why the US stocks are going to underperform is the end of the QE from the Federal Reserve meanwhile than the other main Central Banks around the world are just starting to print money.
In fact the BOJ, the ECB, the BOE and the People’s Bank of China have just started to print money or for the more they have increased the targets for the purchase of additional assets (BoE and BOJ). So Gartman sustains that for as long as money is going to be created abroad the markets of these countries are going to benefit and will overperform the US markets. He is particularly bullish on the Asian markets. Meantime the expected rise of the US rates in autumn will not help the equities in the US.
In the last two month Gartman has recommended three different things to his investors in his famous Gartman Letter. First he was bullish, later neutral and then again bullish, but in his last interview to CNBC he looks more neutral. This is a sign that big investors like Gartman are not so sure that the markets will continue to do so good in the rest of the year. Gartman has been a little criticized in different forums about his different views in such a short time but not in vain is called the king of the commodities and not the king of the equity markets.