05/03/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

Byaaronmat-admin

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https://archives.warpradio.com/btr/InvestorsEdge/050318.mp3

JUST LETTING YOU KNOW

I read something today that was absolutely amazing. 78% of all NFL football players are bankrupt within 2 years of retiring. And I thought there was a typo and I checked and checked. It’s amazing thing to see.

And my goal is to grab some of these people, while they’re making it and let them know that you have to live way below your means because – because you have a shelf life.

I was reading this week about a boxing match this Saturday. Floyd Mayweather is fighting and he’s undefeated. A great, great fighter.

And I keep reading about him gambling.

Supposedly, he fights his opponent they’ll split $100 million. But I read that he made a $1.5 million bet on a game and he won. I was thinking to myself about that when I read about Antoine Walker who played for many basketball teams – he’s broke and lost it all gambling. It’s just amazing to watch people disrespect the dollar. And I could go on and on about people that I know that treated the dollars just as badly. There’s nothing wrong with spending money if you’ve made and you’ve got it. Far be it for me to tell you.

But you’ve got to know your surroundings and you’ve got to know your shelf life. Yeah, there are guys making $20 million a year and they’re going to play for 10 years. They should be okay.

But more and more, I read about athletes and entertainers who just spend it all. Thus, we are going to be doing something different which is total protection of capital and watching the other side of the coin which is what you are doing with your capital.

Now the interesting thing is…we have a lot of income accounts. I can’t do anything with them now. The Fed has hamstrung me and anybody else out there. Try to find a decent bond to buy. You certainly not going to be a 10-year Treasury and get 1.9%. But every day I look at what I call “Double Bs.” It’s a rating system. I look for things that are a little higher on the risk scale, but when you’re buying 2 to 3 year paper…maybe 5 at the most, you look for decent returns, and there isn’t any.

What’s happened? The Fed with their zero interest rates are forcing everybody to anything and everything at any price…and they are. And there’s going to be heck to pay down the road if you go out long term. So the first thing I want to you today is: Please don’t by any long-term corporate bonds or long-term treasury bonds. Please don’t. We’ve had decades of interest rates and it never lasts. And the Fed has bought up 60% of our issuance of bonds in the past year. I’m wondering what happens if that stops.

So I want to let you know what I’m thinking and what I’m seeing. 

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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.