The #1 question being asked of me is “what the heck is going on with the markets?” Good question. This question alludes to the fact we continue to get massive gaps to the upside and downside…massive swings to the upside and downside…sudden moves to the upside and downside.

I believe there is a simple answer. There are just too many outside influences right now playing with the emotions of the market. On a daily basis, we have heard:

We will default on our debt if the debt ceiling isn’t raised.

Greece is saved…no it’s not…yes it is…no it’s not.

The fed says this…the fed says that.

And don’t get me started with the constant interference and yapping out of Geithner, Obama and everyone else.

Never in my lifetime have I seen such market interference on a daily basis. Government yapping and government involvement is doing the trick. We cannot have one day where someone or something out of government is moving the market…and until this dynamic changes, expect more of the same. I long for the day where markets went on their merry way in between earning’s season but I guess with the massive build-up of debt around the globe, the people who created the debt need to make excuses and blame others on how we got here…thus all the noise.

Don’t even try to account for the past few days as markets dump 5-6% in hours and get most of it back in hours. These are outlier moves. The good news is that when all is said and done, markets will eventually go where they intended to go. I remember right before TARP, markets look poised to break down. TARP was rumored…the Dow went up 900 points in hours…a few days later, market rolled over anyway.


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.

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    Alfred Buonaguro says:

    Thanks for your great show and thanks for soldiering on despite the flu! Here are my basketball picks’

    Final four: Kentucky vs. Xavier
    Kansas vs. UConn

    Xavier beats UConn 73 to 68.

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