THE MARKET DOES NOT THINK THE MARKET IS CHEAP
As I have been telling you, in spite of all the talk about markets being cheap, everything I have been seeing defines a bear market. Again, bear markets are made up of high volume drops, low volume bounces, hope that the bounces are the bottom, calls of the market being cheap…only to disappoint those calls soonafter.
I do not know how today finishes. I just know nothing has changed…and today we walk into a monstrous opening gap to the downside. The recent bounce was nothing more than that…a bounce. I must add that this down move has looked like and felt like the beginning months of serious bear markets…and not garden-variety bear markets. I wish I could tell you differently. You know where I have stood and you know where I stand. The market has finally flushed out all my worries…the answer to massive debt and massive spending is not more massive debt and massive spending. Will keep you apprised but leave no doubt, this is not a correction like last year that just bottomed and turned back up. And I say this knowing QE3,QE4 and QE5 will be on the way soon.
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.