Dubai announced it requested a 6-month freeze on some $59 billion of debt repayment, creating anxiety in equity markets around the world.
What should investors expect going forward?
Dennis Gartman, founder of The Gartman Letter, shared his market insights with CNBC.
The Dubai problem has "legs," with plenty of potential ramifications that remain to be seen, Gartman said.
"What's taken capital markets, stock markets higher these past few months has been a growing optimism. ... The fact that Abu Dhabi has not come immediately to the aid of its sister emirate raise concerns, raises confusion," he explained.
"And I have a saying: confusion breeds contempt."
- Banks with The Biggest Exposure to the UAE
Some of that "contempt" for equities is already evident, he believes: "You had a boat of people short of the U.S. dollar caught offguard."
Now, a significant portion of those investors are in a pessimistic rush to safety, Gartman noted.
What Dubai Means — Point/Counterpoint:
- Dubai Fallout Is a Correction, Not New Crisis: El-Erian
- Dubai's Debt Woes Signal New Era for Creditors
- Market Tips: Don't Fret Too Much About Dubai Debt
CNBC Data Pages:
Financials in Wake of Dubai News:
Bank of America
Disclosure information was not available for Gartman or his company.