Dennis Gartman: “the markets have overreacted”

Posted by Dennis Gartman via Hard Assets Investor

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Dennis Gartman is the man behind The Gartman Letter, a daily newsletter discussing global capital markets. For more than 20 years, The Gartman Letter has tackled the political, economic and social trends shaping the world’s markets, and Gartman himself is a frequent guest on CNBC, Bloomberg and other financial media outlets. HardAssetsInvestor Managing Editor Sumit Roy recently caught up with Gartman to discuss the latest outlook on financial markets and commodities, including gold and oil.

Dennis Gartman: Technicals Say Gold Could Hit $900

HardAssetsInvestor: What do you think about the recent concerns in the U.S. regarding the Fed potentially winding down QE later this year, and the consequent spike in long-term interest rates?

Dennis Gartman: The economy absolutely can continue to grow with somewhat tighter monetary conditions. In fact, I think the economy can grow a lot better without the Fed’s help. The Fed’s help back in 2008 was to be lauded; it was fantastic. They did exactly the right thing. In 2009 and ’10, the first rounds of QE were probably still to be lauded. They probably did the right thing; however, they overstayed their welcome. They’ve created a bit of confusion. And confusion breeds contempt, as I like to say.

The Fed understands it has to get itself out of the box that it has put itself in. The way to do that is slowly, over time. I find it amusing that people are already responding as if the Fed has already begun to tighten. We have to remember, the Fed is going to continuously add reserves to the system until middle of 2014. It will just be that they are adding at a lesser pace. It’s not as if they have taken anything out of the system. I think the markets have overreacted.

… the whole interview HERE