Excerpt from Dennis Gartman’s widely read around the world morning comment
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We stand by our statements of the past several weeks that from the perspective of five years hence we shall look back upon the prices seen for nearly all equities in recent days as something approaching insanity to the downside.
We shall look back and wonder what it was that we were smoking that would allow GE to fall to nearly $5/share?
What were we thinking when FreeportMcMoran sold down to $15/share… from $125 9-10 months ago?
What state of inebriation had we collectively fallen that would allow US Steel to fall to $19… down from $190 a half year ago?
What, indeed, were we thinking? Did we actually believe that the world as coming to an end; that capitalism was dead and to be buried; did we really believe that an Obama
Administration would be so egregiously left-of-centre that it would destroy the capital markets once and for all? Apparently we did; at least for a short while.
We hold to our thesis that we want to err upon the side of owning these prosaic, boring, dividend paying equities and that we want to hold them with a vision of
years rather than days or weeks or months. The time has come… finally… to be counted as believers in the power of capitalism to trump all other economic
regimes. At these prices, even the Obama Administration cannot do too much more damage.