Dennis Gartman, the economist and author of The Gartman Letter , offers his views on the market in the first of a three-part series. Come back to TheStreet 7 a.m. Thursday morning, to hear Gartman's take on which currency he thinks is doomed. NEW YORK ( TheStreet) -- Dennis Gartman, the economist and author of The Gartman Letter, warns investors not to be aggressive in equities for long. Global markets have seen strong rallies since the beginning of the year. Year-to-date, the Russell 2000, an index of small-cap names, is up 7.8%, the S&P 500 has risen 3.2%, the Nasdaq has popped 4.1% and the Dow Jones Industrial Average has added 2.1%. Some more bearish analysts are forecasting a 7% to 10% correction in the coming months, arguing that stocks have run too far, too fast. Recently, I spoke with Gartman to get his view on the global economy, currencies and gold. TheStreet: Do you think that this bull market we are seeing right now is for real? Or do you see a big correction coming up? Gartman: Anybody who has tried to be short of stocks since last March gets led to slaughter. And all I can tell people is that even I try to be short
stocks every once in a while. I get over it very quickly. Why do I get over it? Because as soon as I do it, it costs me money. You have said before that you don't want to be aggressively long, though. What does that mean? If you're long, that's one thing. If you're aggressively long, that's another thing. Right now I would characterize my positions as being modestly, sort of tacitly, kinda a little bit, sort of kinda long, sorta maybe. What does that mean? It means I'm kinda sort of long but not aggressively so. I'm a hedge fund and I actually think in terms of being a true hedged hedge fund. Most hedge funds are basically long only punters. I'm a hedger. I'm long some things and short other things. I'm long Ford ( F), for example, and short Toyota ( TM) ... I'm long restaurant stocks and I'm short grains ... Right now I'm just a little bit longer then I am short so on balance I am a little long, I'm not aggressively long. What sectors are you most bullish on? Restaurant stocks. Which precious metal do you like the best? I like gold not because it's better than any other metal. It's just that it's demonstrably more liquid than any other metal. I don't have the stomach or the stupidity to trade things like platinum, which can move 2% to 3% in the course of a day. That's just something I don't understand and would never be able to trade.
What are you most bearish on? I'm most bearish on Europe ... I think Europe is in terrible condition and I'm terribly bearish of Japan. I'm rather aggressively short the Japanese yen. Come back to TheStreet 7 a.m. Thursday morning, to hear Gartman's take on which currency he thinks is doomed.