Dennis Gartman is a Believer in the Great Rotation

By on January 16, 2013

Dennis Gartman - The Gartman LetterFrequent CNBC guest Dennis Gartman, editor of The Gartman Letter, was interviewed by Melissa Lee yesterday. Gartman indicated he believed a rotation from bonds to stocks was taking place. “People are finally beginning to understand that fading the Federal Reserve Bank is going to be a very bad decision,” Gartman said. Gartman later stated its abundantly clear the Federal Reserve wants investors to come to the equities market.

Gartman sees stock prices continuing to move higher, bonds continuing lower, yields moving up, and “it could go on for quite some period of time,” he added.

Gartman noted that corporate balance sheets are in very good shape, along with consumers being in much better condition. Any amenable progress on the budget debate could take stock prices dramatically higher, Gartman said.

Gartman said his fund in Canada has been long S&P futures, short Treasury notes in equal dollar amounts, and he’s following the same strategy in his own investment account and plans on staying that way.

Gartman said he was there in August 1981 when bond prices were at the bottom, at the top of yields, and this has the same feeling to it, except in the opposite direction. He added its hard to believe we’ve had a 30 year bull market in debt and its finally ended. “My old friend Gary Shilling is probably going to call me tonight and say I’m wrong because he’s been right for three decades,” Gartman stated.

A review at Morningstar shows the Horizons Gartman ETF (HAG) had a net asset value (NAV) return of 3.3% in 2012 [link].

Back in August, Gartman said he had changed from bullish on the stock market to neutral [link].

One Comment

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