11/07/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

https://archives.warpradio.com/btr/InvestorsEdge/110718.mp3

JUST LETTING YOU KNOW

As you know, I thought Mitt Romney was going to win the election. Though, I did say in the past couple of days, that it really tightened up. But last night as I was watching, I saw that a swing state went very quick. And the first thing I said to myself was “Uh oh.”

Interesting thing about the election: 118 million people voted. I think that was down from 132 million or something like that. 2% different in votes nationally.

51 to 49 on the national popular vote, which does not count. I’m just making point. As you know, on my show, I have railed against everything in Washington that has brought us to $16 trillion in debt. And let me clear when I say this. They brought us here. It had nothing to do with us.

And the one thing I got from yesterday is that nothing has changed.

We have President Obama in the Whitehouse.

We have a Democratic Senate.

And we have a Republican Congress.

Nothing has changed.

At GaryK.com, I still have the debt ticker which continues to grow leaps and bounds.

Nothing has changed in that, we still have major league uncertainty out of Washington on policy and where we’re headed.

Nothing has changed.

The only thing I got out of this was: Now we get to see the same people that brought us to this point on our deficits get in a room and tell us that now going to figure out how to fix it.

Really?

And therein lies my worry.

I watched John Boehner today. What has he done? He’s overseen $16 trillion in debt. Said nothing while Bush was spending and spent a trillion dollars on the war. And then Obama comes in and all of a sudden he sees God and says…Oh we’re spending too much. A political hack.

And the same goes for the other side.

So nothing has changed. It’s something I am worried about long-term, and possible short-term.

As you know we have this thing called the Fiscal Cliff. If nothing gets done by a certain date, you have automatic increases in taxes on not just a privileged few, but everybody. Spending cuts automatic down. Most of it in defense, which I don’t know if it’s the worst thing in the world. And supposedly that’s going to destroy the country.

We’ll see.

The Market

Now surprise, surprise. In the past couple weeks, we have simply been telling that the market has been in a corrective phase that’s been going on for seven weeks.

But support has been holding for the past couple weeks and it’s going to need to continue to hold, because if doesn’t, we’re going to have another leg down. And you’ll know we’re having another leg down because those areas, but also Financials break the important support we told you about.

Well…it happened today.

You had a pretty darn good drop. I must you that futures were flat when I left my house at 7am. And I guess from what I hear, the market was down in the first minute and on the gap down – a good 150 to 200 Dow points. While we can say it’s because of the election, it does not matter to me what the market is looking at because ultimately, it’s going to be looking at the debt.

As you know, I have told you that I have gone very low beta, which means get out of the growth and the volatile stuff, have a big cash position on hand and anything breaking the 10-week/50-day moving average should be up for review.

And it happened even to Gold and Silver.

And now, the storm in the market got a little worse today.

I got some emails from long-term listeners today. And one of them said I’ve been sounding like an angry old man. That interesting because I don’t consider myself old and don’t consider myself angry. I consider myself to be a very caring American. We will continue to cover anything out of Washington that could affect markets and your wallet.

It is a simple as that.

We never had to do this years ago. All we had to do was…”oh the Fed lowered rates” or “the Fed raised rates.”

Deficits were up there, but it was $200 billion. And then starting in 2006…2007 with Bush and then TARP…all of sudden I realized that this stuff is going to affect us. And it has. So my promise is that we’re going stay in front of that. And we’re going to stay in front on the markets too, as best as possible. 

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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.