In his latest issue of The Gartman Letter, Dennis Gartman discussed the U.S. housing market ahead of Wednesday’s June Existing Home Sales number. In his letter, Gartman made some interesting comments on the state of the housing market and made a surprisingly bold but accurate prediction.

Under-Supply

Gartman begins his discussion of the housing market by referring to a graph of housing starts and housing permits as a percentage of the U.S. population since 1959. The graph shows that the number of housing starts and permits dropped to 50-year lows following the bursting of the housing bubble. Despite a recovery since the 2009 trough, neither statistic has yet to recover even to its pre-crisis lows.

“The chart this time tells us a story of massive under-supplies of housing here in the U.S., a trend that began in earnest back at the very peak of activity in ’69 and where each new low has been lower and so too each new high,” Gartman explained.

Decades Of Demand?

According to Gartman, the chart indicates…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!