Dennis Gartman Offers Bearish Outlook On Fast Money

Dennis Gartman appeared on Fast Money tonight, and said that he believes we are in for a correction of "a lot more than 10%." He noted that money sitting on the sidelines is not moving into equities, and may not move back into stocks for the foreseeable future.

Gartman also called the perceived downturn in the economy over the last couple of weeks, "disconcerting." According to Gartman, if the thesis which he laid out comes to fruition, "everything gets hit hard."

He said that he hates being a gold bull and that he doesn't particularly like gold as an asset class, but that he is impressed by the price action in the commodity. Gartman is a reluctant buyer of gold at current levels.

The legendary commodity trader's advice to investors is to sell call options against their stock positions if they are not very concerned about the recent action in the market. This strategy will generate income from premiums which will offset losses if the market continues to decline. If you are very concerned, however, Gartman said that investors need to protect their portfolios by buying put options. These contracts will increase in value if the market moves lower in the next few weeks.