In his newest "Gartman Letter," Dennis Gartman addressed the impact the Panama Papers could have on prominent politicians and business leaders around the world. Gartman is convinced that the leaked documents allegedly showing improper use of Panamanian bank accounts will end up being the top story of 2016.
“There will be ‘battalions’ of major political and business names that shall ‘come’ to the fore over the course of the next several weeks and months, exposed for having sent money abroad to be ‘washed’ through the legal and banking system in Panama… and it shall not stop at Panama, mark our words,” Gartman predicts.
Related Link: Everyone Involved In The Panama Papers Scandal In 1 Interactive Map Image Credit: Public Domain
He believes that money laundering activity in London, the Isle of Man, Cyprus, Cayman and Belize will also be brought to light in coming months.
He cautions that the story will not be going away anytime soon, but instead will become much more serious.
“Governments are going to fall, and not just one or two or three, but many and often,” Gartman added.
If the documents end up being the first domino to fall in a string of global investigations and potential criminal charges, investors could see equity markets hit hard and huge spikes in volatility. So far this year, the SPDR S&P 500 ETF Trust SPY is up 0.3 percent and the iPath S&P 500 VIX Short Term Futures TM ETN VXX is down 9.0 percent.
Disclosure: The author holds no position in the stocks mentioned.
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