Dennis Gartman is editor and publisher of the Gartman Letter. Dennis was also in the opening ceremonies. His talk was entitled Food, Fuel, and the Fed: Investing in a Post QE2 World.
People want better food as their income risings. We are producing more and more grains and this will continue. We are producing more fertilizer, like potash. However, food will just get tighter. Companies who are shippers of grains have not done well recently, but eventually their stocks will rise.
He also believes that fuel will get tighter. (He does not believe in peak oil.) Some of the oil will be replaced by nuclear power. What people want is high grade oil like that from Brent, Texas and Libya. (He says that Saudi oil is not good, that it is really junk and takes a lot of refining.) He is not bullish on natural gas. The US has a lot of natural gas.
He says the Fed is not going to tighten (i.e. raise interest rates). The same is true with Europe, Canada and Australia. All interest rates are going to go to 0%.
He defines himself as a trader. He buys what is going up and sells what is going down. He says an “investment” is just a trade that has gone wrong. He says gold is going to go up until it stops. He also said that gold is not a safe harbor. Safe harbor investments do not move 8% in a single day.
He thinks that eventually stocks will go up. However he points out that volatility is a sign of high prices. When you have low prices, the market tends to be quite.
He is also bullish on the US dollar. He feels that it will not lose its reserve status and that the US will remain a dominant power for a very long time. The strong currencies will be dollars that is US, Canadian, Australian and New Zealand dollars.
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