Dennis Gartman publishes the Gartman Commodity Newsletter. Transitioning from print to the Internet, he has distributed his commentary continuously since 1986.
The commodity trader and advisor talks about coffee, gold and “the laughter factor” with CNBC’s Liz Claman, in cnbc.com’s exclusive Outlook '07 series.
Gartman advocates contrarianism, counseling traders to “go with the [investment] that creates laughter.” Underscoring “the laughter factor,” he points to grain. Rather than dabbling in grain futures, though, he suggests looking at exchange-traded funds (ETFs); ETFs on wheat already exist in Britain, he says, and it “won’t be long before” there are counterparts in the U.S.
The newsletter publisher believes the U.S. trade deficit isn’t being calculated properly. He notes that Industrial Age exports like “coal, steel, rubber” are “easy to account for”; but the U.S. nowadays exports largely “wisdom, design, legal documentation.” He points to his own newsletter as an example, with a majority of his customers outside the U.S.
Gartman returned to the topic of harder assets, saying he was bullish on gold for the last two years – but “I got out of my gold – all of it – last week.” One commodity he likes is coffee: “My wife and I drink it,” he confesses, and he says a “cold winter” could be a catalyst to higher prices.