Dennis Gartman Buying Gold and Stocks

Can gold and stocks rally at the same time? Not only does Dennis Gartman think they can, he’s betting they will.

The famed commodities investor, author of The Gartman Letter, and CNBC Contributortells us investor sentiment is far too bearish in both stocks and the precious metal.

Looking at stocks, he points to the ratio of puts to calls on the CBOE, which he says is near parody; when the ratio is usually closer to 2.5 to 1.

Also he says volume spiked in his Risk Off ETF . “Normally OFF has about the same volume as ONN,” he says. “But last week OFF traded 100,000 shares while ON traded 1,000 shares. That ratio is unbelievable.”

And as for gold, “It’s been taken down, beaten up, very hard. Gold made a new low but then closed higher on the day,” he says.

All told, “The public is massively bearish and that tells me it’s time to be bullish,” he says.

“Most people don’t think gold and stocks can go higher together, but I expect to see them trade dramatically higher over the course of the next several months,” he says. “The trend is now higher.”

* You can find our conversation with Gartman about 5 minutes into the video clip above.

Posted by CNBC's Lee Brodie

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