08/02/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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https://archives.warpradio.com/btr/InvestorsEdge/080218.mp3

JUST LETTING YOU KNOW

Last week the market was breaking down. The Fed planted a story about the things they’re going to do going forward.

And then the Fed did nothing.

The European Central Bank (ECB) came out with “shock and awe” in fixing Europe. And they said they’d be buying up bonds to keep interest rates down. And the market gaps up 250 and goes up another 200 on those words.

In the past, I would tell you that nobody’s words could really move the markets.

I can’t tell you that anymore. So the market goes up that much and now it’s kinda coming down that much.

Why?

The same person who yapped last week about everything’s that going to get done, did absolutely nothing today.

The amazing part of the equation is that the same people read newspapers.

He knows the markets are waiting.

And he never even was in the game.

So the Russell 2000 has given back that whole move of last week.

The Midcap 400, just about all of that move.

Some of the other markets up a little bit.

But I gotta tell you…it’s just a pain in the rear.

Why?

Because I’m a big believer that markets need to move on their own. And right now they are not.

There’s not a day that goes by where somebody’s not yapping. And I don’t know how we got to the point where the market cares so much about it. But it is what it is. And I think all these people know it and still keep doing what they’re doing.

For the president of the European Central Bank to come out and talk about how “We are going to do everything in our power,” knowing that market is waiting on him today – and then he does absolutely nothing – it’s sickening.

Of course, the market was down pretty decently today, though it did come back towards the end of the day…somewhat.

So all I can do is keep telling you where I think leadership is, what areas you should stay away from, and what I’m doing.

I’m not committing a lot of funds. Why would I? And I’m using close stops and the 50-day/10-week moving average most of the time. I will commit a ton of funds when we get a big gigantic fat pitch.

And all we have been getting is whip-saw city based on a bunch of nonsense. The economy and the markets would be so much better without these central banks.

How can that be?

Because markets would fix themselves over time

That’s what is known as supply and demand. The free market. What a concept.

And if something has to drop or something has to go bankrupt, so be it. Somebody else will take the place.

You remember all those banks and brokerages going out of business.

The end of the world coming?

No!

They’re gone and others flourished because of their stupidity.

That’s how it works. In the world of supply and demand, companies that took their eye off the ball like Research in Motion and Nokia, have their stock prices drown.

While companies who took advantage of the marketplace like Apple do well.

Supply and demand…what a concept.

Hopefully, we get back to that point in the markets because I gotta tell you, volume and interest continues to drip away. But I’m never going to lose interest. Because once we get down to those valuations, and past this cycle, we’re going to have another monster 15 year market.

So stay in gear. I’ll keep whining and complaining. Maybe somebody in power will listen.

There will be great companies, great stocks, great markets and sectors – the future. We just don’t know when. But we will see their characteristics when they show up. So when everybody else gets discouraged, start chomping at the bit.

1982 to 2000 was good.

And we’ll get that again.

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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.