Despite a rally in Brazilian stocks on Monday, investors should stay away, Dennis Gartman said on CNBC.
Stocks and exchange-traded funds linked to Brazil traded higher after pro-market challenger Aécio Neves made a surprise election comeback against incumbent President Dilma Rousseff.
But Gartman, a commodities trader and the publisher of the widely followed Gartman Letter, wasn’t banking on a win by Neves.
“He has no chance whatsoever to win the election,” he said. “President Rousseff is going to win. She is a Marxist, a former guerilla. I’m sorry, ex-Marxists and former guerillas do not change their stripes.”
Gartman said that he was wary of Rousseff.
“I’m fearful of this young lady being president again,” he said. “She is going to, I think, move even farther left.”
Looking forward to Alcoa’s quarterly earnings report, scheduled to be released after Wednesday’s market close, Gartman said that he was bullish on aluminum and steel producers.
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