Usually he’s talking complex trades involving futures contracts, but if you’re a retail investor Dennis Gartman has two words – big cap.
The strategic investor and author of The Gartman Letter thinks big caps are about to begin a long march higher.
With central banks around the world exhibiting a growing willingness to stimulate the global economy, “I think the whole stock market is set to perform a great deal better,” he says.
But not all equities are created equal – and investors will discriminate.
“Individual investors were hurt over the course of the past several years – and when they come back into the market, they’re not going to go into small caps or tech. They’ll go into stocks where they feel relatively safe – and that’s big cap," he says.
Trader Guy Adami agrees. And he thinks recent action in the Dow confirms the thesis.
“You don’t get this much time to sell the highs. Typically a down market will test the highs quickly and then sell-off, but that hasn’t happened,” he says.
Instead the Dow has marched higher and held it's levels.
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NEW SLIDESHOW: The Biggest Momentum Stocks of 2011: Buy or Sell?
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If you’re looking for single stock ideas, Gartman suggests dividend payers – but not just any old dividend payers – those which have been increasing their dividends.
“High dividend payers that have been progressively increasing their dividends,” that’s what retail investors will want.
“Pfizer gets it done,” adds Adami.
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Trader disclosure: On Jan. 17, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns INTC; Adami owns BTU; Adami owns NUE; Terranova is long V; Terranova is long CSCO; Terranova is long TRLG; Terranova is long JNPR; Terranova is long DECK; Terranova is long NFLX; Terranova is long XOM; Terranova is long SBUX; Terranova is long AXP; Terranova is long EMC; Terranova is long MUB; Terranova is long IBM; Terranova is long UNG April $5 puts;
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