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Dennis Gartman: PMs Have 2 Commodities Trades All Wrong

New data shows investors remain quite bullish on commodities. But Dennis Gartman thinks PMs have it wrong on a few of those longs.

According to the CFTC weekly commitment of traders, portfolio managers raised their position in hard assets substantially last week.

And whether it’s a bullish bet on growth or a hedge against stock market weakness – estemmeed commodities investor and CNBC Contributor Dennis Gartmandoes not think commodities should be bought across the board.

Specifically, he's skeptical of corn and oil but thinks gold remains attractive.

Here's what he has to say:

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Gartman on Corn

Though specs are bullish on ag broadly, Gartman thinks they're wrong about corn.

”If you own corn, you’ve got a problem,” says Gartman. “We had rain and a moderation in temperatures right at the time the corn crop needed rain and cooler weather. We’re going to have a bigger corn crop than expected and those prices will (probably) come under pressure.

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Gartman on Oil

Gartman just doesn’t see a lot more upside in oil.

”Crude oil seems to be stable but it doesn’t seem to want to go up any higher,” he says. “It’s fearful of another release from the SPR. Anybody who’s long (crude) finds themselves in a difficult position.”

That’s not to say Gartman expects a decline. He doesn't. He just fails to see further gains. ”We could go through a period of time when (oil) goes sideways or quietly lower," he says.

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Gartman on Gold

Symbol
Price
 
Change
%Change
GOLD
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If you need to put money to work in hard assets, Gartman thinks gold is the place do it.

He thinks by kicking the financial woes of Greece down the road the ECB will have little choice but to follow the Fed’s expansive policies. “And that should be supportive of gold,” he says.





If you need to put money to work in hard assets, Gartman thinks gold is the place do it.

He thinks by kicking the financial woes of Greece down the road the ECB will have little choice but to follow the Fed’s expansive policies. “And that should be supportive of gold,” he says.

* Check out our entire conversation with Dennis Gartman. Watch the video now!


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