Tuesday, February 26, 2019

China government cut in Bank reserve requirements and tax cuts

Dennis Gartman is bullish stocks in the long term and one of the reasons he is feeling bullish is because of China.

"We continue to view the Chinese government’s cut in bank reserve requirements and the tax cuts announced nearly five weeks ago are materially long term supportive of shares in China and eventually to the markets abroad. As we have said previously several times, reserve requirement changes are the monetary authorities’ equivalents of a handy piece of lumber applied to the head of a reluctant mule: It does indeed get the mule’s attention and sometimes the mule even likes it!"