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Q&A With Dennis Gartman, Editor, The Gartman Letter
FYI: Dennis Gartman is the man behind The Gartman Letter, a daily newsletter discussing global capital markets. For almost 30 years, The Gartman Letter has tackled the political, economic and social trends shaping the world's markets. ETF.com recently caught up with Gartman to discuss the latest developments in the financial markets. Regards, Ted http://www.etf.com/sections/features-and-news/gartmans-favorite-trades-right-now?nopaging=1
You're absolutely right about being a trader but that's why I'd second guess fading him. On a percentage basis he may lose money more often than he makes it, but when he gets it right I think he tends to make a lot. That means you either have to have some insight into when he won't be wrong, you have to guess, or fading him might not be an ultimately profitable enterprise.
I put him up there with some of the equity/forex 'analysts' from Goldman -- ie, Tom Stolper -- who would issue a much-ballyhooed call on something and nearly every time it would immediately or soonafter go against them. You could be right about his peformance ratio, but as with the Barrons Cover Indicator, I tend to view fades as a more likely way to profitability.
The part that always bothered me is he'll go on CNBC or do an interview with Barron's and he'll say stuff that's totally true at the moment he says it. Unfortunately he might change his mind overnight and not only doesn't anyone know that but there's not much effort made by these media organizations to be transparent about it other than the standard legal blah-blah disclosures that not many pay any attention to. I guess most people wouldn't trade based on anything he says but I "pity da fool" who does.
I'm sure there are those who do trade on his (and others) recommendations, not understanding many things about the markets or those who pontificate about them on TV. But hey, it's not my money that's being invested in such cases!!
Years ago CNBC had a new program about options trading. Their first-ever guest suggested selling puts on Google when it was around 500/share. I was screaming at the TV for the asinine idea, targetted at retail investors who likely didn't have 500 x 100 = $50,000 cash lying around for when (or if) the stock was put to them and they had to buy.....b/c in a 3-minute piece, you can't also teach folks the intracasies of options-101. The clown simply picked the stock, said it was a good buy, and here's how to profit from it. Thankfully he was never to my knowledge invited back on the program. But I wonder how many people tried to do the trade, or got burned if it went against them, b/c they didn't know the risks of the trade, just got caught up in the possible rewards of it should it work out as intended.
The part that always bothered me is he'll go on CNBC or do an interview with Barron's and he'll say stuff that's totally true at the moment he says it. Unfortunately he might change his mind overnight and not only doesn't anyone know that but there's not much effort made by these media organizations to be transparent about it other than the standard legal blah-blah disclosures that not many pay any attention to. I guess most people wouldn't trade based on anything he says but I "pity da fool" who does.
Comments
Remember he's a short-term TRADER not a long-term INVESTOR. That said, fading Dennis' ideas tends to be quite profitable, I hear.
I put him up there with some of the equity/forex 'analysts' from Goldman -- ie, Tom Stolper -- who would issue a much-ballyhooed call on something and nearly every time it would immediately or soonafter go against them. You could be right about his peformance ratio, but as with the Barrons Cover Indicator, I tend to view fades as a more likely way to profitability.
I'm sure there are those who do trade on his (and others) recommendations, not understanding many things about the markets or those who pontificate about them on TV. But hey, it's not my money that's being invested in such cases!!
Years ago CNBC had a new program about options trading. Their first-ever guest suggested selling puts on Google when it was around 500/share. I was screaming at the TV for the asinine idea, targetted at retail investors who likely didn't have 500 x 100 = $50,000 cash lying around for when (or if) the stock was put to them and they had to buy.....b/c in a 3-minute piece, you can't also teach folks the intracasies of options-101. The clown simply picked the stock, said it was a good buy, and here's how to profit from it. Thankfully he was never to my knowledge invited back on the program. But I wonder how many people tried to do the trade, or got burned if it went against them, b/c they didn't know the risks of the trade, just got caught up in the possible rewards of it should it work out as intended.