Dennis Gartman says gold is too crowded — and weakness in stock market may end its record run-up
- Investor who said back in April that "this is the time you should own
gold" now says market is too crowded.
- Gartman said he's "social distancing" from the precious metal that hit its highest level ever this week.
stockscould spark a gold sell-off, according to Gartman.
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The investor and former publisher of The Gartman Letter said he's "neutral in gold." While he said back in April that "this is the time when you should own gold," he now thinks the market for the precious metal has become too crowded.
"Too many people all of the sudden are involved in the gold market. There's only one position everybody has and that's long ... people have to be taken out of that trade," he said.
Gold closed at a record high of almost $1,960 per ounce on Tuesday. Gartman said he would return as a buyer if the price declined "$100 from any interim high."
Gartman also said a weakness in the
Gartman called stocks "expensive" and suggested selling equities. "If you're overly exposed, I think being somewhat less exposed after a 38% rally in the Nasdaq probably makes sense to take some of it off the table, raise a little cash."
Gartman further suggested that a less accommodative Fed, a "comment from a federal official," or a turnaround to a stronger dollar may also spark a gold sell-off.
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