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Dancing With TINA

Summary

Throughout the current bull market, a number of prominent investors have predicted its imminent demise.

Dennis Gartman was one of the bears, but recently he wrote, "We have to dance with TINA," i.e., There Is No Alternative to being long stocks.

One can stay long stocks while limiting one's downside risk in the event the bears' predictions finally come true. We present a way of doing so.

Dancing With TINA (There Is No Alternative)

Dancing With TINA (There Is No Alternative)

A few days ago, pseudonymous trader

an interesting quote by Gartman Letter publisher and frequent CNBC guest Dennis Gartman, about the challenges faced by investors skeptical of the current bull market:

A bit of context: Dennis Gartman is mocked by some traders for being wrong a lot, which is why StockCats included the list of prominent billionaire investors who are currently bearish (Carl Icahn, David Einhorn, George Soros, etc.). But everyone who makes market calls is wrong a lot. Einhorn, for example, shorted Amazon (NASDAQ:AMZN) and was long SunEdison (OTCPK:SUNEQ) last year. George Soros is bearish on the market now, but he was also bearish on it in 2014.

In truth, a lot of bears have been bearish for much of the current bull market. ValueWalk illustrated this recently using the example of another newsletter publisher and frequent CNBC guest, Marc Faber of the Gloom, Boom & Doom Report, who has been predicting a 1987-style crash since at least 2012:

Eventually, Faber or Soros will end up being right. But what to do until then? That's the question Gartman was wrestling with. He rightly noted the folly of shorting the market when you don't know when the "music will stop" (you're liable to lose money until then). Of course, you could stay in cash, but given current...


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