Brief comment below from the Ledendary Trader Dennis Gartman. For subscription information for the 5 page plus Daily Gartman Letter L.C. contact – Tel: 757 238 9346 Fax: 757 238 9546 or E-mail:dennis@thegartmanletter.com HERE to subscribe at his website.
We note that as the US dollar is under pressure once again, the “other” dollars are not. The Canadian, Australian and New Zealand dollars are strong once more and that is as it should be, for their economies are stronger than is that of the US; their exports more viable and the propensity on the part of foreign nations to buy Canadian, Aussie and “Kiwi” goods seems to be rising at the expense of buying American goods. Let’s chalk this off to the simple notion that all things being otherwise equal, Chinese buyers of wheat, or steel, or crude oil, or coal, or water or any of the “stuff” of day- to-day economic growth will have a greater propensity to buy from these countries than from the US. Friendlier relations between Beijing and Ottawa, or between Beijing and Canberra or between Beijing and Wellington drive trade. With China’s buyers of raw materials scouring the world for these things, it is reasonable… it is even logical… to expect those buyers to find sellers in Vancouver, in Sydney and in Auckland.
We have been and we remain this morning concerted bulls of the Canadian dollar relative to the US dollar for the same reasons we have been bullish for the past several years on balance. The world needs energy: Canada has energy to go; The world needs food; Canada’s got food; The world needs base metals; they can be found in Canada…and Canada has the ports to ship those needs; it has the laws to protect contracts signed, and it has favourable and friendly relations with everyone… something the US cannot say it has or enjoys.
Ed Note: The Legendary Trader Dennis Gartman will be speaking at the:
The Money Talks All Star Trading Super Summit
Saturday, October 24, 2009 -The Sheraton Vancouver Wall Centre
Click HERE for the Speaker Lineup and to REGISTER if you want to take advantage of this Event.
Mr. Gartman has been in the markets since August of 1974, upon finishing his graduate work from the North Carolina State University. He was an economist for Cotton, Inc. in the early 1970’s analyzing cotton supply/demand in the US textile industry. From there he went to NCNB in Charlotte, N. Carolina where he traded foreign exchange and money market instruments. In 1977, Mr. Gartman became the Chief Financial Futures Analyst for A.G. Becker & Company in Chicago, Illinois. Mr. Gartman was an independent member of the Chicago Board of Trade until 1985, trading in treasury bond, treasury note and GNMA futures contracts. In 1985, Mr. Gartman moved to Virginia to run the futures brokerage operation for the Virginia National Bank, and in 1987 Mr. Gartman began producing The Gartman Letter on a full time basis and continues to do so to this day.
Mr. Gartman has lectured on capital market creation to central banks and finance ministries around the world, and has taught classes for the Federal Reserve Bank’s School for Bank Examiners on derivatives since the early 1990’s. Mr. Gartman makes speeches on global economic and political concerns around the world.