Stocks may be hitting all-time highs, but the commodities kings wants none of it.
Dennis Gartman, CNBC contributor and editor of the Gartman Letter, told CNBC's "Fast Money" on Monday that he's staying far away from U.S. stocks and is instead looking at foreign equities for his best opportunities.
"I think acting like a hedge fund; buying Europe, buying China, buying Japan," said Gartman. "Selling United States and being as market neutral as one can is probably going to be and continue to be the better way to trade." Hedge Funds are buying global stocks at a record pace, extending into the eight straight week, the longest streak since 2010, according to Morgan Stanley.
Gartman's opinion is in direct contrast to a note from Morgan Stanley that predicted big returns from U.S. stocks. In the note called "We Are Full of Bull," Morgan Stanley equity analyst Adam Parker wrote that U.S. stocks were prime for buying "right here right now." Parker predicts that the U.S. economy "will accelerate in the second and third quarters as a number of temporary and tactical issues that impacted Q1 abate." Parker also said that the consensus earnings expectations were "too low."
As quantaitive easing slows in the U.S., Gartman is going abroad to take advantage of central banks that are just starting their easing process.
"People's Bank of China is all in for QE. The ECB is all in for QE. The Bank of England is in for QE," said Gartman. "Our markets are likely to continue to underperform. Money is being created abroad, money is going to continue to be created abroad for a long period of time going forward. It will find its way into their equity markets. They will continue to outperform ours," he added.
Despite the huge run in Chinese equities, Gartman said he continues to see more opportunity in Asia than in the U.S. And in Europe, Gartman recommends buying the exchange traded funds that hedge out any currency risk from the volatile euro.