Thursday, April 9, 2009

Gartman: Keep It Simple Buy Copper Aluminum Stocks

Dennis Gartman, founder of the Gartman Letter is hot on copper and aluminum.

The economy is beginning to show some "green shoots," and that makes copper and aluminum commodities worth buying, he told CNBC.

"I'm actually quite optimistic about what the economy's going to do," he said. It might take six to nine months before things start to break, but he advises you need to be in before the move comes.

Gartman bought Alcoa, Southern Copper and Freeport-Mcmoran near their respective lows. "I looked around and said, 'What is the simple thing? I'm a simple guy,'" he said, and as opposed to complex financial instruments it was "the stuff that if you drop it on your foot, it hurt."

"The copper stocks have really now just gotten started," right he is.

Gartman play will be a strong one. First the rebound in the economy will take these stocks higher, then the inflation will kick in. It's nice double-play macro-action that could mean huge further gains in these stocks.

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