TERRIBLE JOBS NUMBER…BUT HERE COMES QE3,4,5…

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Commodity stocks, financial stocks, retail stocks and just about the whole market have been telegraphing slower growth. In past weeks, we have seen softer numbers…and now this. Very simple…this is the outcome of the nauseating pro-government, pro deficits, anti-business, over-regulated, anti-business rhetoric and higher tax policy of the people in power. We have been arguing here for the past few years that there was no way the economy could reach its full potential with all this stupidity being shoved down our throats.

As we write this, markets are down 1.5-2% depending on which index you are looking at. The market has been in correction mode for weeks…and has been acting uglier by the day. Keep in mind that Bernanke is out there and will come up with another assinine program when they meet June 19-20, if not before. But not so fast. As we write this, the ten year is now yielding 1.47% with 15 year mortgage rates under 3%. We are not so sure there is anything left for them to do that could matter…except try to juice the market again. But of course, we will be watching.

As pro-growth policy fiends, the only good news to us is that this most definitely will have an impact in November. We must find people who understand that it is WE THE PEOPLE…not WE THE WASHINGTON. We must find people that believe in US and not THEM. We must find people who understand that government is only in business because of OUR tax dollars and will not disrespect those tax dollars. We must find people that recognize that Washington has already spent the next 6 years of our tax dollars and will make policy that changes that momentum. The people currently in power have no fundamental understanding of what makes the economy run. They think they are smarter than us when most of them haven’t even run a lemonade stand.

There has been a lot of talk about Europe lately…understandably so…but we had better start talking about our issues, our debt and our anti-business policies. Of course, Krugman will blame it on NOT ENOUGH spending by Washington.

Will have a full market report over the weekend. We have no clue if Mr. Bubble (Bernanke) opens his yapper today and turns the market but at the open…yikes! The only thing we are watching here is whether the market can again be defended at support we outlined for you yesterday…as a break below just leads to another leg down.

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.