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Short the euro: Dennis Gartman

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The European sovereign debt crisis has taken a back seat in the mind of financial markets to the debt-ceiling standoff in Washington, but Dennis Gartman says investors should start placing their bets against the euro.

In his Gartman Letter Thursday, the financial commentator writes that the very fabric of the European Union is coming undone and the shared currency will suffer.

"The U.S. budgetary problems shall be resolving themselves in the interim, but the political/religious/philosophical differences that have torn Europe into pieces over the centuries will do their work again, tearing at the very fabric of the monetary and political union that so many have tried so hard over the past several decades to overcome," he said.

Gartman is calling the current situation for the euro a "watershed situation" in the currency market.

"The EUR can and very probably shall trade all the way back down toward the 1.2000 [€1.20 to the U.S. dollar] level, if not lower, over the course of the next several months and perhaps requiring more than a year to finish," he predicts.

As for how to proceed, Gartman says investors have a number of options.

"One of the truly stunning risk/reward trades of our time is setting up…being short of the EUR relative to the dollar, or short of the EUR relative to the non-US dollars, or short of the EUR relative to gold, or to the Yen or perhaps relative to almost any other 'currency' related entity shall be the proper and profitable course of action for a very, very long while."

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