Instead of going off the so-called "fiscal cliff," the U.S. economy will become good for equities (^GSPC), commodities trader Dennis Gartman said Monday on CNBC.
On "Fast Money," the editor of The Gartman Letter said that he was positive on the idea that Washington lawmakers would hammer out a budget deal, averting the Jan. 1 deadline by which the Bush tax cuts would automatically expire and massive federal spending cuts would be triggered.
"I think everybody understands how serious the circumstances are," he said, noting that top Republican lawmakers had sounded resigned to tax increases.
"I think that we've given into the notion that taxes probably have to be raised on the 1 percent," he said, "as long as Democrats move on entitlements."
"Call me a cockeyed optimist," he added.
Gartman said he thought that the optimism was already being taken into account.
"There's a good deal of it priced in," he said, alluding to last week's market moves. "I was surprised that the market came off the bottom as hard as it did."
Gartman added a warning that investors should not be surprised by a correction, calling it "supportive for equities."
He added, "Copper may be something to take a look at."
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