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Speaker 1: This the Rich Dad Radio Show, the Good News and Bad News About Money. Here's Robert Kiyosaki. Robert Kiyosaki: He

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Speaker 1: This the Rich Dad Radio Show, the Good News and Bad News About Money. Here's Robert Kiyosaki. Robert Kiyosaki: He Speaker 1: This The Rich Dad Radio Show, the good news and bad news about money. Here's Robert Kiyosaki. Robert Kiyosaki: Hello, hello, hello. It's Robert Kiyosaki of The Rich Dad Radio Show, the good news and bad news about money, and we have a great show for you. Our guest is possibly ... I mean, when this guy speaks, the world listens, and I was just with him at the New Orleans Investment Conference, which is a conference everybody should go to if you want to see the future clearly, but every time this gentleman speaks, I listen, and I hate to say it, but he's been accurate so many times, and I've lost because I went against what he said. So, anyway, I want you to pay attention because if you want to see clearly now what's coming up on certain subjects, especially gold and bitcoin and the economy, and all the things you need to be careful of, especially the stock market, this is your program. Any comments, Kim? Kim: I'm looking forward to this show today with Dennis Gartman. He's the editor and publisher of The Gartman Letter, very, very well-known, and I'm sure you've seen him on many of the financial talk shows. He's a wealth of information, and I am here to learn from him today. Robert Kiyosaki: So, welcome to the program, Mr. Gartman. Dennis Gartman: Well, thank you very much for having me on. It's nice when people listen. Sometimes people laugh, so let's hope that [inaudible 00:01:23] Robert Kiyosaki: Well, the last call you made was I think when gold was at 19, and I said, "I gotta cover my position," so I bought a little bit, and you said, "It's gonna tank," and it tanked. Dennis Gartman: Now I will tell you that gold is not tanking, and I'm not a gold bug, and I want to make sure that everybody understands that because I'm not a believer that the world's coming to an end, that you need to have distilled water and dried food and ammunition. I'm not a gold bug under any circumstance. I look at gold as being nothing more than another currency whose price rising at times and falls at times. It's hard to believe, but we've actually been in a bull market in gold since late December of 2015, and here we are in early 2018, two-and-a-half years later. Gold is quietly beginning to turn higher, slowly making a bottom, looking stronger on the charts on a daily basis. Inflation pressures, I think, are starting to become evidence in extent, but very few people believe in gold at this point. The old lying gold bugs are always there, but at the market, we have not seen the public be a buyer yet, and probably won't for a while. The public doesn't get excited till things start to go parabolic, and that may be quite some period of time into the future. January 21th, 2018 FIND OUT WHY BITCOIN IS A JOKE & THE STOCK MARKET WILL CONTINUE RISING – Robert Kiyosaki, Dennis Gartman 1 Robert Kiyosaki: Correct. So, before we go any further, would you mind giving us a little of your background and how you came to write The Gartman Letter and how you got into this, the crystal ball of the markets? Dennis Gartman: My first job out of graduate school, back in the early 1970s, was as the economist for Cotton Incorporated, and my job was to understand the cotton business and how the cotton futures market function and how farmers use it or could use it and to explain it to people as a price discovering mechanism. I was lucky enough to do that. It was interesting because the cotton market taught me a lot about how all futures markets function, the carrying charges, backwardation contango, how they open interest changes, who's involved, who's not involved. I moved from there to NCMB in Charlotte, North Carolina, traded foreign exchange for them for a number of years, and then finally said, "You know what? I think I really want to move to Chicago and get a seat on the Board of Trade," so I had a seat in the bond pit in Chicago for about seven or eight years, had a great good deal of fun as the financial instrument futures markets were really in their infancy and began to become much, much more mature over a very short period of time. Then in 1984, quite honestly, I was too old to be on the floor of the Board of Trade any longer. There were younger kids, there were bigger people, there were football players and ex-basketball players, and I thought at 34 or 35 years old, it was time to move back south, and started writing ... I worked for a bank for a couple of years, and trying to take an ex-floor trader and turn him into a banker was a bad decision. Kim: A little different momentum there. Dennis Gartman: Yeah, it was a different attitude completely. And then in 1984, I actually started writing The Gartman Letter on a full-time basis, and I have been doing it since then, and proud to say that I haven't missed a business day except for once when my parents had their 50th anniversary. We took the day off, but every business day of the year I write. I get up at 1:00 every morning and try to write seven, eight, or nine pages of interesting views as to what the capital markets are doing, and as I tell people, my job is to be the liberal arts major of the capital market. I know a reasonable amount about commodities. I know a reasonable amount of energy, a reasonable amount about the Federal Reserve policy and central bank policies. I know a reasonable amount about political developments around the world, and my job is to explain to the energy trader what's happening over in the grain market, or to explain to the grain trader what's happening over in the bond market. I take a broader perspective, and I'm fortunate to live in January 21th, 2018 FIND OUT WHY BITCOIN IS A JOKE & THE STOCK MARKET WILL CONTINUE RISING – Robert Kiyosaki, Dennis Gartman 2 Southern Virginia, far away from the madding crowd, where I can hopefully distinguish between what is important new and what is absolute abject noise. Robert Kiyosaki: So, Dennis, for somebody like me, would you mind explaining why the futures market exists, what is it used for, and why is it important? Dennis Gartman: The futures market exist primarily for one purpose, to discover, and this is the important term, to discover the price of things. When you force people who put their own money at risk to discover the price of soybeans or to discover the price of wheat or to discover the price of crude oil or to discover the price of natural gas or copper or gold or boats or cotton, when you put your own money at risk, you will do a decent job of taking into consideration all the information that you can assimilate, the information that somebody else can assimilate, and the price will be discovered. It also serves as a way for those involved in the business to hedge the risk incumbent in that business. It gives the ability of the American farmer, for example, to know what the price of corn is going to be next year before he plants it and make the decision does he wish to plant for that price. Is that a price that he's willing to produce for? If he can't sell it to the local grain elevator, he can sell it to the future market. It gives the bread manufacturer the ability to see what is the price of hard red winter wheat, 12 months, 16 months, 24 months, 36 months into the future, and is that a price that I can produce bread for and go about my business. It also gives a place, let's be blunt, a place for speculation, and it is speculators who are terribly important to the futures market because they create liquidity. So, the futures markets function for three things, to discover the price of underlying commodities, to grant hedgers or people incumbent in the business to either produce or to use that commodity at some point in the future, and a way to hedge their risks, and finally, it gives an avenue for speculation and the creation of liquidity. Those are the three reasons why the futures markets exist and why they function so importantly. Kim: Dennis, so let's talk about the farmers and food and corn and wheat. Dennis Gartman: Yeah. Kim: So, how does weather ... We've had hurricanes, we've had floods, we've had freezing cold, we've had all these things. How does that play into the futures market? Dennis Gartman: Well, we can talk about a very specific circumstance prevailing right now. It's very cold in early January, and the winter, most people don't realize that the wheat crop is put into the ground in September, October, and November of the previous year. It sits nascently over the wintertime. It's called soft red or hard January 21th, 2018 FIND OUT WHY BITCOIN IS A JOKE & THE STOCK MARKET WILL CONTINUE RISING – Robert Kiyosaki, Dennis Gartman 3 red winter wheat for a reason, and it matures in the spring and it's harvested in May, June, and July of the following year.
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