05/17/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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https://archives.warpradio.com/btr/InvestorsEdge/051718.mp3

JUST LETTING YOU KNOW

Bloodbathian

Today was a big market day.

While was somewhat “bloodbathian,” it did not start today.

For weeks and weeks and weeks, we have been telling you about a worsening internal condition of the market. We walked you through the commodities and told you to stay as far away as possible from them. Then, we saw the Semiconductors and we told you to walk away from them. And then we brought in the financials and told you get away from them. And then we told you the tactics that should be used…that any stock breaking the 50-day/10-week moving average – bye bye!

We told you about the European markets, acting like the South end of a North bound mule.

We told you about the Asian markets. We also told you that we have no idea how long a bearish phase lasts or how far it goes, just that we know we’re in a bearish phase. And we’ll let it play itself out.

Well, all the evidence is in. The market is getting worse and worse. Fewer and fewer stocks are working. More and more stocks are breaking down.

This leads us to today, which, as I stated was “bloodbathian.” I know that’s not a real word. But I figured, what the heck.

And we told you the reasons. But we also have told you the reasons have been out there for months and months and months. That it’s how the market reacts to these reasons that matters most and for a while, the market couldn’t care less.

Well, the market cares now.

So first off, here are the reasons:

  • We have $16 trillion in debt and a president that does not give a crap about it. And he is not even pretending to care about his $1.3 trillion a year in deficits as far as the eyes can see. He’s not talking about. He does not care about it.
  • On top of that, all he talks about is how he’s got to tax more people. We need more money in government, even though the government is the most inefficient corrupt blob we have ever seen in our history.
  • Europe…socialist countries that have run out of workers to pay for the people that are no longer producing…and the promises to those people that are no longer producing till death. And the fact that all these countries bought the debt of those other countries making them intertwined with those countries and having to take care of those countries. And this is after when they decided to adopt the Euro, they had promised they would not prop up a country.
  • Then we have our employment problem here in the U.S. 8.1% is a blatant lie. The crooks in Washington have taken millions and millions of Americans out of the workforce to make that number look better. The fact of the matter is you just had the same amount of people in the workforce as it was in 2009, we’d somewhere near 11%.

But there is nothing like the debt and the people in power who couldn’t care less. And media watchdogs are lying on their backs with their paws in the air saying “scratch me” and give me a dog bone. Lapdogs…while they are sitting there letting the deficit swell every day.

Now why does the deficit matter?

Who pays those deficits? The economy. Now if the economy only produces $2.5 billion in revenues to the government every year, at $16 trillion, you add it up. That’s six years of taxes already spent! And it’s been done on purpose by Republicans and Democrats.

So now the market is reacting to all this stuff and in case you don’t know, initial claims for unemployment were higher than expected today. In case you don’t know, they came up with the economic indicators which much worse than expected.

And the market reacted to that.

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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.