To all the long-suffering dollar bulls out there, rejoice, for the dollar may be about to surge. Why? Gartman is about to liquidate his long.
Comedic interlude aside, here is Gartman’s latest take on the market:
STOCK PRICES CONTINUE ON THEIR VERY MERRY WAY HIGHER as seven of the ten markets in our International Index have risen and as three have fallen, with the only material move… by more than 1%… coming at the hands of equity traders/investors in Brazil. Our index has gone on to new all-time highs once again and as Old Turkey once again reminds us, “After all, this is a bull market.”
When appearing yesterday on Fox Business’ show with Stuart Varney we were asked why it was that we had missed the high tech rally. Mr. Varney showed a chart of Microsoft whose shares were up 51% over the course of the past year, and he cited this as a how badly we had invested, having missed the tech rally. We responded by saying simply that we prefer dealing in the things we understand and we understand steel; we understand shipping companies; we understand copper and grains. We understand “The things that will hurt if you drop them on your foot” as we’ve so often euphemistically said. Our interest in “steel” was derided, except that US Steel shares have risen by nearly 50% in the course of the past two month… something it has taken Microsoft a year to do. Copper and industrial metals, represented by Freeport McMorRan’s shares, have risen by just over 40% in the course of the past two months.
Our point here is that we are to do the things with which we are comfortable and we are to avoid the things with which we’ve no sense of comfort. We shall rarely if even make bets on Big Pharma for we’ve no expertise in that arena, and we’ll rarely if ever make bets on “tech” for that is far too far out over our skis. We are comfortable with simple, countable things that are incumbent in global economic strength. We know our strengths; more importantly, we know our weaknesses.
In our retirement account… which has had a good run thus far this year… we’ve made no changes; that is, we are long of the shares of the largest independent bank in Tidewater, Virginia; we are long of the shares of the largest gold miner in North America; we are long of the shares of a BDC that pays us a very tidy, monthly dividend and we must never forget the compounding effect of monthly rather than quarterly dividend payments, and we are short of the long end of the US bond market via derivatives on the NYSE ARCA. We suspect that we shall sit very, very tight for another day, barring some unforeseen political problem.
via RSS http://ift.tt/2n5aKQ2 Tyler Durden