The commodities king gives his picks for the coming year.
With the new year just a few hours away, the world wants to know what Dennis Gartman, editor and publisher of The Gartman Letter, is predicting for 2014.
Gartman spoke Talking Numbers with his three top predictions for this coming year.
1. Buy English-speaking currencies against the Japanese yen
Gartman believes the Japanese yen will do worse against the US dollar, the British pound, the Canadian dollar, the New Zealand dollar, and the Australian dollar. Gartman says: "The yen is under duress and will continue to be under duress. The monetary authorities want it to weaken. And, I think the English-speaking currencies, with their respect for tradition and the rule of law, is where flight capital will tend to move. So, I want to be long the English-speakers. I want to be short the yen."
2. Buy the Nikkei against the S&P 500 index
Gartman says: "I think over the course of the next several years, the Nikkei will seriously outperform the other broad market indices around the world. Again, that's predicated on a weak Japanese yen. The monetary authorities are going to do what they can to sponsor that strength."
3. Buy gold, short the yen
Gartman says: "I've been long of gold in yen terms for the past year. Now, if you've been long of gold stocks, you're down 35% or 40%. If you've been long of gold in dollar terms, which is how most people do trade gold, they're down 25% to 30%. If you have been long gold in yen terms, yes, you're down but it's only 6%.... Over the course of the next year, again, predicated upon what the monetary authorities in Japan have said and what the political authorities in Japan are doing, gold is a far better trade in yen terms than it is in dollars. That's a large differentiation. There's a huge gap between owning gold in dollar terms and owning gold in terms of yen."
To see the rest of what Dennis Gartman has to say about his picks are for 2014, watch the video above.
More from Talking Numbers: