Dennis Gartman: I am short on equities

The influential investor Dennis Gartman said that investors should not expect any changes from the Fed for up to another year.

"There's little to be drawn from the minutes. I think the FOMC used the referendum (on the U.K. leaving the EU) as a reason to do nothing. They would prefer doing nothing and they will probably do nothing for a long period of time. 'Lower for longer' is probably the way to consider what the Fed is going to do for quite some long period going forward." 

"There is a lack of resolve on the part of the economy here in the U.S. We're moving forward at a very tepid rate and I think we're stuck here at these low levels of Fed funds for a long period of time, certainly until the end of this year and perhaps into the middle of next year."

Gartman said that the Fed's indecision over rate hikes had caused equities to become overvalued.

"I find it very difficult to be anything other than modestly bearish. I trade only from my own account and I am modestly short of equities generally and I think that's the proper place to be. It's a little scary to be bullish at these prices when it's the Fed and monetary authorities who are sponsoring share prices (going) higher – it can't last for very long."

"If you have to buy, the only place to be a buyer is the U.S. but you'd have to hold a gun to my head to be an aggressive buyer. I'm quietly, modestly net short and I feel reasonably comfortable being that way."

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