The stock market will go a "good deal higher," Dennis Gartman, founder of The Gartman Letter, told CNBC on Friday, adding it's no longer time to be short gold.
"I've been very fortunately short of gold, long on stocks and long on crude oil—a rather complicated trade that worked out reasonably well," Gartman said in a "Squawk Box" interview, saying gold has probably "seen its worst" in the recent selloff in which the precious metal in Friday trading fell to its lowest level since 2010 to under $1,200 an ounce.
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"I'm not sure that I want to step up and buy gold," he continued, "but the time to be short of it is passed. I have been openly bearish of gold for some period of time. ... [but] I think it's time to go to the sidelines."
As for stocks, Gartman predicted the major trend is still upward.
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"I like them a lot," he continued, saying stocks have taken comfort in this week's comments from several regional Federal Reserve presidents, including William Dudley, the New York Fed president, on Thursday.
Dudley defended Ben Bernanke's comments last week—claiming the Fed chairman was "very clear" when he said scaling back the central bank's $85 billion-a-month bond purchases could start later this year provided the economy continues to improve. The spike in bond yields on concerns of an earlier tapering has been an overreaction, he continued.
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Dudley and other Fed presidents have recently made it "abundantly clear the Fed is going to be there for quite some period of time in the future, adding reserves to the system as long as the economic data demands," Gartman contended. "So I think we have to take them at their word, and that means higher prices as [stock] shares are concerned."
