Gartman Thinks You Should Dump the Euro While You Can

On Thursday, the euro appreciated against the U.S. dollar, but Dennis Gartman, of The Gartman Letter, thinks investors should sell. Gartman recommended on Benzinga Radio that investors use the recent euro rally to unload any positions they may have in the European currency. Gartman characterized the recent posturing by European politicians and financial ministers as "arranging the deck chairs on the Titanic." He predicted that Greece's financial problems would be resolved in only one way: a Greek abandonment of the euro and a return to the drachma. Gartman also had some nice things to say about gold. He stated that while he was not a "gold bug", he believed that traders should buy gold using euros. Describing his outlook for the world's currency hierarchy, he predicted that gold would soon replace the euro as the world's number two reserve currency--second only to the U.S. dollar. Last week, Gartman appeared on CNBC's Fast Money in an appearance in which he stated many of the same things. In that appearance, Gartman forecast that German voters would grow tired of subsidizing the Greeks and would eventually force Germany to leave the euro zone and give up the euro. If either Greece or Germany abandoned the euro, it may have horrendous consequences for the euro. Thus, one can see how Gartman can be so bearish on the euro given his beliefs. Traders looking to follow Gartman's advice might consider a short play on the euro. ProShares UltraShort Euro EUO attempts to return a value inversely correlated to the euro and may rally if the euro comes under selling pressure. Traders may also wish to purchase gold on Gartman's statements, however, in the interview Gartman was careful to state that he believed investors should buy gold using euros--not U.S. dollars. Therefore, the SPDR Gold Trust GLD may not be a smart buy if Gartman is completely accurate in his assessment.