04/12/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST
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https://archives.warpradio.com/btr/InvestorsEdge/041218.mp3
JUST LETTING YOU KNOW
What would you say if I told you that unemployment claims are up big, meaning the job market is already worsening? What would you think of that market? Well the market had a very big day today…for other reasons.
The Federal Reserve – intervened. Now what does “intervene” mean. Well, in the past the Fed to lower interest rates. Well they can’t do that now because they’re at zero.
In the past, the Fed would print money. Well, they already are.
In the past, the Fed has said, “We’re going to keep rates at zero way into 2013…and we’ll revisit at the beginning of 2014.”
Well, we watched a little correction in the market recently. Nominal. Somewhere in the neighborhood of 4% to 7% depending on what you’re looking at. Europe was worse – in the teens in some areas. And we know the commodity stocks for weeks and weeks and weeks were an area to avoid and stay away from.
And the Fed intervened today. Now – what did they do? How did the Fed get the market up pretty big, when you had bad economic numbers today?
Well, here’s what’s happened. About a week ago, the Fed kinda sorta stated that, “We’re on hold,” which means no more printing money…to buy up bonds and add liquidity to the system. And I told you that day that I don’t believe a word out of their mouth, because they’re going continue to print money. They’re going to continue to do it regardless of what they say because that’s what they do.
Well this morning, out of the blue, you had Fed Vice Chairman Janet Yellen and some other Fed Head saying, “We’re going to keep rates at zero…TO THE END OF THE 2015!!!!
Which is asinine statement. Not only is it asinine, it’s asaTEN, asaELEVEN, asiTWELVE, asiTHIRTEEN – because if the markets start biting back, they’re not going to be able to. And you had another Fed guy out basically saying the same thing.
What did that did do? It crushed the dollar. It gave commodity stocks their best gains we’ve seen in eons.
And the market lifted throughout the day. It was a good day today, except volume was a bit light today as we bounced back up and that is both on the S&P and the Nasdaq.
That was the news.
But as you know, we watch the market. In recent days, we talked about a correction. I told you I didn’t think it would be that bad, but up to possibly 10%. In recent days, I told you a lot of stocks and a lot of areas were breaking below major moving averages.
But in recent days, I have also told you that certain areas have held…and they’re going to need to hold.
They held today.
On top of that, we saw a very strong move off of a weak dollar and in commodities.
I have told you many times on this show that I have always been the disbeliever about all the negative stuff that was said about the government, the Fed and this, that and the other thing. I was the one who always say, “Naw, they’re not targeting the market. They’re not printing money. There’s no plunge protection team.” Then I had people email me and show me the errors of my way. And throughout the years, I’ve been able to pinpoint for you things that they do to manipulate things.
And we got one of those today. Was I surprised? Yeah. But that’s what you get when you’re dealing with an unlimited amount of printed money, which is now in the trillions. Remember the billions was a lot? Now “trillions” is the new norm. That’s what I worry about…them getting use used to the world “trillion.” And that’s where we’re at.
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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.