12/18/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST
https://archives.warpradio.com/btr/InvestorsEdge/121818.mp3
JUST LETTING YOU KNOW
With 8 1/2 days left of trading before the end of the year, the boys are getting the job done. Remember what I told you.
Last year the week before Christmas, the S&P was up 4.1%.
Guess what? We’re not even into Wednesday and we’re already up 2.3% in two days.
This is how they work. It’s a gimme. This is what I told you on Friday would probably happen. And you never know. But these guys are good at painting the tape into the month-end to the quarter-end, into the year-end…and they’re determined.
I also told you yesterday that none of the news is good. Nothing’s happening with the Fiscal Stiff. Maybe something ends up happening. But it’s just going to be higher taxes and more government spending. Nothing’s going to change. Economic numbers…drab. GE (I think that’s an important company) lowered their numbers.
But you’ve got the kicker. $85 billion a month in printed money. That’s a trillion bucks a year, ladies and gentlemen. That our Deficit per year – printed out. And, of course, they’re doing the same think in Asia. They’re doing the same thing in Europe.
And markets like it.
And guess what? We go with it. And that’s that.
On top of that, just remember this for the future. When Financials are not going down, the market is typically not going to be going down. When Financials go up, the market usually follows. In recent days you had Citigroup breakout, BankAmerica breakout, and a few others come up their right side.
So I have nothing bad to say. It was another strong Accumulation Day today – finishing with a little flurry at the end of the day.
Gold
It makes me so very, very happy. Gold is rolling over and rolling over badly now. I couldn’t be happier.
Let’s backtrack. As you know, about 15 months ago all I did pose a little possibility to you in that Gold had been in a big bull market for a good 10 years, if not more. I have also told you that most big secular bull markets end with a climatic run and that in 1979 to the top in 1980, Gold went up four-fold in last move. And in a climatic, Gold doubled in weeks. But before that final move happened, Gold went through a big bear market. Back then, it was 50%.
Right now Gold is down 13% from the highs of September 2011. So my hopes is that there’s more time and price. Why? For that last move to happen, you need to wash out people. You’ve to get them bearish. You’ve to get them thinking nothing goods going to come of it.
So I’m happy. The farther it goes down the better. And IF (notice the word “If” as there’s no guarantee) we ever get that turn – oh I’m going to try and be so on it.
Being in climactic moves is a very good thing. Again, the dollar was weak today and you would think Gold would be strong. I can’t put 1 + 1 and get 2 on this today. I don’t care. And, of course, silver’s going along for the ride also.
Now there are those that are saying it’s being sold off because the market has the “risk on” trade. Okay, I’ll give you that. Again, it does not matter to me. And frankly, the market doesn’t care anything right now, except it’s the end of the year and it’s got some juice and that’s 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.