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Dennis Gartman: S&P to Outperform Gold & Global Stocks

Wednesday, 21 Dec 2011 | 1:26 PM ET

Dennis Gartman is among the most widely followed commodities investors in the world. And when he says in early 2012, another asset will outperform gold , we listen.

First a foremost, Gartman doesn’t want anyone to think he’s negative on gold; he’s not. “I’m neutral,” he says.

He still thinks the long-term gold bull remains intact, though in the short-term he thinksgold could trade down to $1600 or lower.

However, looking at early 2012 – Gartman thinks the S&P and the euro will finally stop trading in lock-step.

Gartman on Backdoor Bazooka & Gold
Insight into the backdoor bazooka for Europe and his neutral call on gold, with Dennis Gartman, The Gartman Letter.

"The new ECB borrowing window kicks the can down the road considerably", he explains. "I applaud them for doing it. Does it solve the problem? No. But it buys time. It's a back door bazooka."

And that backdoor bazooka should generate what the Street calls 'decoupling.' When that happens, Gartman expects US equities to rally simply due to strong fundamentals.

“When I look at the relative yield of equities versus the 10-year bond – it’s at historically wide levels," he explains. "Cash balances on balance sheets remains considerable. And America’s has improved its corporate structure. I think all that is very impressive,” he says.

And he suspects other investors will share his view.

As a result, he says “I expect equities will outperform gold without any question. And I think US equities will outperform the rest of the world.”

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On Dec. 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Najarian is long AAPL; Najarian is long PFE; Najarian is long MRK; Najarian is long TEVA; Najarian is long C; Najarian is long MSFT; Najarian is long INTC; Najarian is long YHOO; Najarian is long COP; Najarian is long JAG calls; Najarian is long WFC calls; Najarian is long VLO calls; Gartman is long Canadian dollar vs. the euro; Gartman is long stocks in euro terms; Gartman is short euro vs. the dollar; Gartman is short S&P 500 futures

For Frank Zorrilla
Zor Capital is long VPHM

For Colin Gillis
AMAZON: Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.

YAHOO: Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.

RIMM: Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.

For Nishu Sood
DHI: Deutsche Bank (and/or affiliates) own 1% or more of any class of common equity securities of this company. Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year.

MDC: Deutsche Bank (and/or affiliates) own 1% or more of any class of common equity securities of this company

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KBH: Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year

For Ed Maguire
ORACLE (ORCL): Neither analysts nor their household members/associates may have a financial interest in, or be an officer, director or advisory board member of companies covered by the analyst unless disclosed herein. Unless specified otherwise, CLSA/Credit Agricole Securities (USA)'s did not receive investment banking/non-investment banking income from, and did not manage/comanage public offering for, the listed company during the past 12 months, and it does not expect to receive investment banking relationship from the listed company within the coming three months. Unless mentioned otherwise, CLSA/Credit Agricole Securities (USA) does not own discloseable position, and does not make market, in the securities. The analysts included herein hereby certify that the views

For Laura Martin
I, Laura Martin, CFA, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject company (ies) and its (their) securities. I also certify that I have not been, am not, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report.



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