Commodities king Dennis Gartman on which he thinks will be the better investment.
August was a good month for gold. That wasn’t the case for stocks. So where should investors go in September?
The yellow metal was up 5.72% in August while stocks closed the last month down 3.13%.
One of the main underlying factors is what could be US military action in Syria. As uncertainty grows, some investors have turned out of stocks to gold as a safe haven.
Simultaneously, rising interest rates are viewed as a negative for stocks. Since May, bonds have been sold off as the market anticipates a tapering of the Federal Reserve Bank’s $85 billion per month bond buying program. Lower bond prices mean higher interest rates which, in turn, further discount stocks. However, the bond selloff was slightly abated earlier last week as some investors took to the safety of US Treasury bonds when a strike against Syria seemed imminent. Yields have since gone back up and are now trading near 2.868%.
So, while September is traditionally the worst month for stocks in the entire year, where should an investor go next?
Dennis Gartman, founder and publisher of the Gartman Letter, has been following the markets for decades. In an interview with Talking Numbers, he offers his insights on where he thinks stocks and gold are headed next. And, he thinks there are some trades investors can make which may not be on most people’s radar.
To hear Gartman’s trading ideas, watch the video above.
[Disclosures: Dennis Gartman is long the Canadian dollar versus the Japanese yen, long the Treasury note versus the Treasury bond futures, and long ArcelorMittal, Direxion Daily Gold Miners Bull shares, US Steel, Guggenheim Shipping, and Dow Chemicals.]
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