Dennis Gartman is one of the foremost investment minds of our era. As editor of The Gartman Letter, his insights are relied upon by many of the largest investors in the world. On Jan. 25, 2017, Gartman will deliver the closing keynote address at Inside ETFs, the world’s largest ETF conference. In the wake of last night’s election results, Gartman sat down with ETF.com contributor and Inside ETFs CEO Matt Hougan to discuss where ETF investors should be placing their bets.
Matt Hougan: Last night, we saw the Dow futures drop 700 points and overseas markets collapse. But this afternoon, I’m looking at my screen and there’s a lot of green. What’s going on?
Dennis Gartman: The market wants to believe that Mr. Trump’s talk about trade protection, tariffs, building walls and calling people names was simply what he had to do on the campaign trail. His conciliatory acceptance speech—and it really was a conciliatory speech—was perhaps the best speech he’s given in the past year and a half. He seemed to have turned the corner; it was a completely different attitude.
The market seems to believe he’s going to spend money on infrastructure—on roads, bridges, airports, port facilities and hospitals. The speech indicated he was going to take a different stance than his demeanor indicated on the campaign trail. As soon as his speech was over, the market turned around.
Hougan: It seems to be a U.S.-focused rally, though. We’re still seeing big pullbacks in Mexico, China and other emerging market ETFs. What should someone do looking at Mexico being down 9%?
Gartman: You have to take Trump at his word. He used the word “infrastructure” over and over in his speech. That means steel, cement, asphalt and the drilling infrastructure that goes into creating natural gas. They are things that, if you drop them on your foot, they’re going to hurt.