Looking at the sell-off in gold , copper and other commodities, strategic investor Dennis Gartman says, it feels like the market is growing irrational.As oil slipped below $90, Gartman told us that a week ago he’d would have been hard pressed to think there was more downside.
But no more.“The markets are growing irrational and, like Keynes said, the market can remain irrational much longer than you or I can remain solvent.”
Gartman believes commodity investors are now in liquidation phase. “Rationality and reason are now leaving the markets. To see gold tumbling $60-$70 in 48 hours, to see stocks tumbling– it’s a global rush to liquidity,” as investors cash out of their positions fearing the very worst.
And those fears have everything to do with Greece and the growing belief that it’s only a matter of time before Athens leaves the European Union.Page 1 of 4 | Next Page