THE WEEK: OIL, DOLLAR, GOLD:
The headline: Oil Gains 4.5% This Week To $81.62, Notches 4 Straight Record Closes; Gold Touches 28-Year High Before Losing A Bit Of Ground Friday; Dollar Loses 1.5% Against Euro This Week, Hitting Record Lows;
Strategic investor Dennis Gartman joins the panel for this conversation. He’s concerned that The Fed ignored inflation. Here are excerpts from what he said.
“In the last paragraph of their communication after the meeting they just absolutely deleted the word inflation,” says Gartman. “They have no concern. (Consequently) you want to own the things that hurt if you drop them on your foot. You want to own gold, crude oil, wheat and soybeans.
He adds, “When the dollar goes lower ‘stuff’ goes higher and there’s no reason to think things will change until at least after the next Fed meeting….”
Where will prices be 3 months from now?
“I think gold will be higher – probably demonstrably higher… soy beans and corn will likely be higher 6 months from now, too.”
Canada’s dollar is now trading on par with the US dollar for the first time in 31 years, explains Dylan Ratigan. Meanwhile the euro crossed $1.41, which is a new high. Do you think the dollar will fall further?
“I think it will fall further” says Gartman. “In the world of foreign exchange, as long as political circumstances are the same, if you are an investors and one central bank is saying we’re raising rates and another is saying we’re lowering rates, you as an investors will go to the bank raising rates.
He adds, The Fed has said… our propensity is to ease.. the European banks have said it’s to tighten. All things being equal you’re going to avoid the US dollar.”