IT’S A FREAKING BEAR MARKET

“IT’S A FREAKING BEAR MARKET!”

January 6,2015

By Gary Kaltbaum
@GaryKaltbaum
garyk.com
Fox News Business Contributor

It’s a freaking bear market. Get used to it. In bear markets, surprises happen to the downside. In bear markets, bad news is no longer ignored.  We have told you on radio, on tv and right here in recent weeks that the bear market in stocks will become more apparent as the major indices play catch-up with the average stock. We told you we weren’t so worried about the December but were quite worried about January. So far, January sucks…and it was right out of the gate.

All we can tell you is that if this continues, you best not argue with it as most on Wall Street will tell you not to worry. If you want to know how we got here, just go back to Gary K.com and read all the reports of the past few months. This topping process has been classic as sector by sector, stock by stock, the market’s internals went south. It’s now just a matter of the major indices catching up…which as we told you, has always happened at this juncture. As the rest of the market tops, relative strength can be seen in food, drugs, beverages, alcohol, household products,water utilities, guns and defense as everyone likes a good war. These areas are screaming…and we mean SCREAMING RECESSION. The market is a lot smarter than all of us including Janet and the Fed who waited years to raise rates into this. Almost too funny…but is actually scary.  You may also want to check out the charts of junk bonds, credit spreads, manufacturing numbers, emerging markets, commodities, oil, disk drives, gaming, banks, S&Ls, regionals, Russia, Brazil, China and the many areas already in bear markets.

A couple of more notes!

It is amazing to read on a daily basis how matter of factly, China goes more into debt to prop up stock markets. Since when is it ok for governments to continually do this and don’t these #@&#@ know the selling will eventually get worse as they create more trouble when they rig markets?

And lastly, there will be no more rate hikes. We suspect the rumbling out of the Fed will be more like “we may need to go back to 0%” and “we may have to go QE4!”