Dennis Gartman, the economist and author of The Gartman Letter, offers his views on the market in the second of a three-part series. On Wednesday, Gartman told Alix Steel why he was long, but not too long. Come back to TheStreet 7 a.m. Friday, to hear Gartman's take on gold and how he's investing.
NEW YORK (
TheStreet ) -- Dennis Gartman, author of the Gartman Letter, says the
The euro has fallen 4% against the U.S. dollar since the beginning of the year. According to many analysts, the sovereign debt crisis in Greece and its rippling effect on other European Union countries will continue to weigh on the currency. On the flip side, the U.S. dollar has been making a steady recovery. The
has risen from $77.52 to over $80 since January. Currently the dollar is the most popular reserve currency in the world. The euro was set to be a strong competitor. Now what?
Gartman: Euro Is Doomed
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I spoke with Gartman to get his take on the global currency crisis.
TheStreet: You are positive on the dollar and not the euro and other currencies
Gartman: I tend to be bullish on the U.S. dollar, but the operative word is "tend." If you made me take a position in the dollar ... I'd probably be a buyer, but the operative word there is "probably." I really have very little interest in what the U.S. dollar is doing at this point. I have a greater interest in what's happening over in Europe.
What do you think is happening in Europe
I think that Greece is just the first problem and anybody who thinks that the Greek problem has been resolved is fooling him or herself. This problem is only going to get worse and the monetary authorities ... are all aware of the fact that they have real problems. Greece may eventually default. I'm sure it will. And even if they bail Greece out, they have to bail every other fiscally irresponsible country in the rest of the European Union. I think the European Union itself is coming apart. I think it's only a matter of time until it does.
I have read that you have said the euro is a doomed currency. Do you still think that
So what's going to be the last currency standing
Canada. Aussie. New Zealand. Us.
A lot of people say that California debt is as bad as Greek debt, so why wouldn't the dollar, in addition to the euro, get hit
It may, it's possible.
Talk about the relationship between the U.S. dollar and gold
Well, theoretically there is some correlation between the U.S. dollar and gold. Characteristically, as the U.S. dollar weakens, gold tends to get stronger, but I'm not sure at this point that you can hang on to that thesis and
trade with it as you might have a year or two years ago. We've seen gold go up even on days when the dollar is strong, which drives some people crazy and confuses them. I think gold is simply becoming the second reservable asset replacing the euro, which people thought was going to be the next reservable asset. The dollar remains the most important reservable asset for central banks around the world. Gold is now probably the second most.
Come back to TheStreet 7 a.m. Friday, to hear Gartman's take on gold and how he's investing.
Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.