Investor's Edge with Gary Kaltbaum - Concentrated week in review! [08.08.2025]

Episode Date: August 8, 2025

https://garykaltbaum.com/...

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Starting point is 00:00:00 At CVS, it matters that we're not just in your community, but that we're part of it. It matters that we're here for you when you need us, day or night, and we want everyone to feel welcomed and rewarded. It matters that CVS is here to fill your prescriptions and here to fill your craving for a tasty and, yeah, healthy snack. At CBS, we're proud to serve your community because we believe where you get your medicine matters. So visit us at cbs.com or just come by store. We can't wait to meet you. Store hours vary by location. Investor's Edge with Gary Coltbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Coltbaum. And welcome once again to Investors Edge. I'm Gary Coltbaum,
Starting point is 00:00:48 your host. A thanks for being with us today. Glad you here, ladies and gentlemen, happy that you are listening. It is 8-8-25. Even though on a check early, I put 7-8. Hey, hope you having a good day. I hope I'm on my usual Delta flight, but the later one tonight, to up to New York. We're getting the usual weather here in central Florida. Darn it. We'll see how it goes. I think we'll get out.
Starting point is 00:01:18 A couple of times I got back in New York City by 2 a.m. That's what happens when you get the weather. What can I tell you? Anyway, I'll be hanging with the dad for a couple days this weekend. going to be 94 October 20th and my son Aaron's birthday tomorrow. So we're going to have a good weekend. And I hope you do too. Ladies and gentlemen, I just got to start out.
Starting point is 00:01:47 As you know, we call balls and strikes here. And we never used to have to talk about them, but they interfere so much with our lives that, well, 37 trillion of debt. But I got to kudos to the president. he pretty much has brokered a peace pact with the Azerbaijan. Amazing. Well done, sir. And I have no clue how much he's involved.
Starting point is 00:02:27 All I can tell you, he's representing it. And the two leaders of the countries are together. They don't look that happy. But peace. It's a peace deal with Armenia and Azerbaijan. I think I pronounce that what, right? That is freaking awesome. Kudos. Big applause to the president. Nothing more important than peace. And I got to tell you, if he's able to broker Russia and Ukraine, double applause. We segue. In case you don't know, this is serious talk on you and your money and everything that affects it. We will do the market, the economy, your job, your industry. We did Doge. We don't talk about that now because that looks over and done after the big, beautiful bill that is going to explode debt deficits and spending going forward.
Starting point is 00:03:36 We'll talk tariffs. We'll talk concentration in the markets. wait to you hear some of the things today and whatever else comes to mind they're time allotted on this show and if you do not get this radio show in your city we'll post at gary k.com we'll also post it on our x feed it'll also be on the biz TV YouTube channel
Starting point is 00:04:01 and of course if you'd like to email us just be nice we love when we get emails from people that completely disagree with us but are respectful about it we love that respect is everything we don't suffer the duffices though ladies and gentlemen okay i want to start specifically with something that happened this week that is just amazing stunning gargantuan we have been telling you to avoid Apple as a stock since December. Avoid, avoid, avoid, avoid, avoid, avoid, avoid, avoid, avoid. And they crumbled it into the Trump tariff crash.
Starting point is 00:04:59 But it rallied up initially, but it's done nothing. Going into this week, it was an absolute horror show. And rolling over badly. And then earlier this week, the CEO Tim Cook has a meeting with the president. And he announces, we're going to add $100 billion to our $500 billion commitment. Now, let me explain a couple of things to you. It's bull crap. First off, that $500 billion was already baked in the cake.
Starting point is 00:05:39 They want to make Trump look good and good on them. And $100 billion, whatever. And I think they're going to be making some things here, but they're never going to make the whole iPhones here. That's impossible. They'll be charging 4,000 for one. But I digress. They are now completely exempt from tariffs because of all this, which, as we told you, we don't like. We don't like a president being able to threaten somebody with higher taxes.
Starting point is 00:06:17 And that's what it is. If they don't do what the president wants, that's dictatorial. We said that yesterday. We don't like it. But let me just tell you the outcome. Apple was up 13.33% this week. Do you know what that represents? Get this.
Starting point is 00:06:38 $400 billion in market cap. Do you know what that represents? A bigger market cap in one week movement for Apple than $400 billion. 178 stocks of the 500 S&P 500 stocks. That is unreal. They did not sell another iPhone, any iBuds, any eyewatches, any more than they would have. This move was based on some sort of negotiation. contact, what have you, with the president, and get exempted.
Starting point is 00:07:28 Just remember, Apple paid $800 million in the first quarter in taxes, and $1.1 billion in the quarter now. There are many saying they got on bended knee to the president. That's a good, that's apropos, don't you think? Think about that. This is how big some of these companies are now. a one week move by the way
Starting point is 00:07:57 I take that back a three day move because it did nothing on Monday and Tuesday a three day move was bigger than 478 stocks of the S&P 500
Starting point is 00:08:15 I think 478 make sure I get this right 478 477 was Home Depot's whole market cap is $385 billion. Apple moved in three days more than Home Depot's market cap. Holy crap. Anyway, that helped the NASDAQ 100 this week, of course,
Starting point is 00:08:51 because it is one of the big seven. And as we have told you, and these are stunning numbers. seven stocks are almost 65% of the NASDAQ 100, but even more stunning. Those same seven are 34% plus of the S&P. Think about that. 490, by the way, go on Google and just put in S&P 500 market cap list.
Starting point is 00:09:27 And you'll see like the bottom 100, are all like six hundreds of a percent. They should just get rid of a hundred stocks at this point. Anyway, you know what we're going to be doing. We're going to watch the bottom hundred. Because if this continues, let me tell you what happened in 99. You almost had something like this. And guess what held up best and did best the next year while the market collapsed?
Starting point is 00:09:58 The bottom hundred, I remember a lot of them were like the home builders. We told you we visited the CEO of a big home builder Because somebody I worked with had them as a client And they based with the CEO said to me is my stock are ever going to move It's trading at one times earnings Guess what? It rolled during the year 2000 to the upside Well everything else crumbled So we'll see just letting you know and by the way one of the note on Apple
Starting point is 00:10:31 They have now boy. bought back $704 billion in stock over the past 10 years, which is greater than the market cap of 488 companies in the S&P 500. Yes, they generate a lot of cash. That's the story, ladies and gentlemen. Unbelievable concentration. It's not to take away from others, but I can tell you, my NASDAQ screen to my left,
Starting point is 00:11:01 that does not make up the big one. is beat red today. NASDAQ was up 207. Up next. Lots more. This is the one only Investors Edge. Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show Investors Edge.
Starting point is 00:11:41 We're not just handsome radio people. We manage investors' money for a living, specializing in fee-based discretionary money management. No big commissions, just a fee on the assets that's managed. We also provide a full range of personalized services, including retirement planning, fixed income and educational needs, all to assist you in achieving your financial goals. Understanding not all individuals have the same needs, we'll carefully evaluate your personal goals
Starting point is 00:12:07 to determine a proper investment strategy. If your current approach to investing is not getting you to where you would like to be, call us to make an appointment for a complementary portfolio review. The number to call is 888-422-559. That's 888-4-22-5-5-9. That's 888422-5-5-9. Investment Advisory Services offered through call-bomb capital management. Hi, I'm Dr. Jake Goodman, host of Beyond the Script, the podcast where I sit down with pharmacists to answer the health questions you didn't even know you could ask at the pharmacy counter.
Starting point is 00:12:50 In this episode, we are diving into gut health with CVS pharmacist, Victoria Motola, who explains why so many of us live with stomach issues, we should not accept as normal. A lot of what I see is just like chronic bloating, chronic stomach aches. Like I get a stomachache every time that I eat. And it just becomes like a lifestyle where, oh, yeah, you know, I just have a stomach ache every day. Or I'm constantly feeling like gassy.
Starting point is 00:13:17 And all of those things are not something that generally, if you have a healthy gut, you should be living with. So that's when we deep dive. We deep dive into your medication. We deep dive into your OTC medication. And then at that point, we can put it. probably identify something that we can change. Hear the full conversation, plus some fascinating facts about how gut health affects so much more than just your stomach on Beyond the Script, a podcast from CVS Pharmacy and IHeartRadio.
Starting point is 00:13:44 Listen now wherever you get your podcasts. Struggling to see up close, make it visible with Viz. Viz is a once daily prescription eye drop to treat blurry near vision for up to 10 hours. The most common side effects that may be experienced while using Viz include eye irritation, temporary, dimmer, dark. vision, headaches and eye redness. Talk to an eye doctor to learn if biz is right for you. Learn more at Viz.com. OnDec is built to back small businesses like yours. Whether you're buying equipment, expanding your team or bridging cash flow gaps, OnDex loans up to $400,000 make it happen fast. Rated A plus by the Better Business Bureau and earning thousands of five-star trust pilot reviews,
Starting point is 00:14:20 OnDec delivers funding you can count on. Apply in minutes at ondeck.com. Depending on certain loan attributes, your business loan may be issued by On-Dec or Celtic Bank. On-Dek does not lend in North Dakota, all loans and amounts subject to lender approval. It's time to switch on the integrator units and get the brain cells working. You're listening to. Hey, this promises to be fun. Investors Edge. The last bastion of quality programming.
Starting point is 00:14:47 With Gary Coltbaum. It doesn't get better than this. And welcome once again to Investors Edge. Now, as we have explained to you in the past, if The rest of the market worsens while the select few. Go look up the words nifty 50 also. If we get narrower and narrower, there is always an eventuality. They're going to come after everything eventually,
Starting point is 00:15:25 but I do not believe when we're close to that as of yet. And as I said to you, there's been some weakening, transports weak, very weak. The banks starting to weaken. something to watch very closely. Haven't gagged yet. I tell you about my left screen. It is a screen of all these companies that are not mega-cap, that are small to large, that have been blasted,
Starting point is 00:15:59 that used to be strong. Something like a snowflake that is just crumbled, crowd strike that just recently crumbled Twilio that has crashed that whole screen is beat red today and a lot of them are NASDAQ and the NASDAQ was up 207 today and the NASDAQ 100 was up 221 do you know why
Starting point is 00:16:25 Apple up 9 Netflix up another 33 still way off the highs but as we said it's starting to recover Google was up almost 5 and guess what? That's been better. Meadow was up 7. That's range bound after Gapping up. Nvidia ain't doing anything wrong. Broadcom not doing
Starting point is 00:16:45 anything wrong. Guess what? What's the 7? Tesla? That was up 7 today. But they got some things to deal with. Amazon is the 7th, by the way. Amazon gaped down on earnings
Starting point is 00:17:02 and is holding. So going to be quite interesting going forward. We will keep in touch with you. You better be listening because if the negative happens, you're going to need to know it because you won't hear it from the rest. Just let you know. What else do I need to tell you about?
Starting point is 00:17:27 Recently, we have been warning you about initial public offerings that are coming out at stupid prices. In other words, they do a $30 deal. and they open it up at 100. And a few days later, it's 50. And if you bought in all the excitement, you're getting kicked in the teeth, like symbol fig.
Starting point is 00:17:51 I think it was a $35 deal, opened at 90, went to 142, closed that day at 122, it's 78. Five days later. So if you bought it all the excitement at 142 and didn't trade it, 78.
Starting point is 00:18:08 I'm going to estimate that's in the 40s of a loss in five days. Well, there's another one. And we are not telling you to buy sell shorter cover. We're just letting you know at the moment they do not know what the hell they're doing as far as the IPOs and pricing them. And they're getting a little too crazy off the get-go. Symbol fly! Came out yesterday. I believe around 45 bucks hit a high of $1.00.
Starting point is 00:18:38 74. First off, it's 74. Market cap of about 10 billion. The company loses a lot of money and doesn't have about 100 million in sales. That's 100 times sales. Stupid. Well, it hits 74 yesterday. This is yesterday. Closed at 50 today, down 10. Last I look, $24 on $74 is in the 30s. You lost if you bought it the high yesterday and held on. And by the way, this is a space and defense technology company providing mission solutions to national security government commercial customers. Terrific. But it closed now at a $7.5 billion market cap approximately with $100 million in sales.
Starting point is 00:19:42 and they lose a ton of money. And they're going to be dependent on the government, which could be flaky. So we're just letting you know. There are moments in time. Remember when the SPACs came out? By the way, they're doing SPACs again. Oh, that's right. Donald and Eric Trump are now going to do a SPAC.
Starting point is 00:20:03 Yay. Remember what we warned you about, the SPACs, the special purpose acquisition companies. otherwise known as blind pools. Let me explain to you. When I started in the business, I was at a penny stock firm. We did blind pools. We did them at five cents a share or ten cents a share
Starting point is 00:20:26 because we were a penny stock firm. We actually merged them with companies that had sales. When the SPAC started proliferate, these scum bags started merging with a bunch of companies that had sales. no sales and were pretty much some scams. One guy went to jail. They all told us, electric vehicle companies and battery companies, why? That way they can sell it to a public that wasn't looking. In other words, they were screwing you. Well, guess what all those
Starting point is 00:21:14 SPACs did? They all crashed. We don't want to go through that again. So we're just letting you know they're starting to come out with SPACs again. And we're letting you know we're going to watch them. And we're letting you know if the creeps start doing bad things. We're going to call them on the carpet. And I will tell you this time, we will ask them to come on to the show and defend themselves. Which will get me a lot of hate.
Starting point is 00:21:42 But I don't care. Because I remember the crappy companies that went from whatever down to one. I saw one guy put in jail. Another one was indicted, but I don't know what happened to him. So we are watching your you know what's for us and for you as we move forward. And of course, they're all going to announce the same industries. You know which industries they are? The hot ones, because that's what con artists do.
Starting point is 00:22:21 What's hot? Oh, that's hot. So let's con the people. Let's come up with a bunch of bull crap. That's what they do. So at the time, the hottest things were electric vehicles and batteries. So that's what they did. And they got themselves wealthy, and you got screwed.
Starting point is 00:22:49 And we don't want that happening. So just letting you know, they're doing it again. Spacks. If I were running the SEC, I'd be all over their arses. Making sure they ain't happening. Up next, what else going on? Thanks for being here. I'm Gary. This is the one only investors ed. Hi, I'm Dr. Jay Goodman, host of Beyond the Script, the podcast where I sit down with pharmacists to answer the health questions you didn't even know you could ask at the pharmacy counter. In this episode, we are diving into gut health with CVS pharmacist, Victoria. Maria Motola, who explains why so many of us live with stomach issues we should not accept as normal. A lot of what I see is just like chronic bloating, chronic stomach aches.
Starting point is 00:24:06 Like I get a stomach ache every time that I eat. And it just becomes like a lifestyle where, oh, yeah, you know, I just, I have a stomach ache every day. Or I'm constantly feeling like gassy. And all of those things are not something that generally, if you have a healthy gut, you should be living with. So that's when we deep dive. We deep dive into your medication, we deep dive into your OTC medication,
Starting point is 00:24:27 and then at that point we can probably identify something that we can change. Hear the full conversation, plus some fascinating facts about how gut health affects so much more than just your stomach on Beyond the Script, a podcast from CVS Pharmacy and IHeart Radio. Listen now wherever you get your podcasts. Struggling to see up close, make it visible with Viz. Viz is a once daily prescription eye drop to treat blurry near vision for up to 10. hours. The most common side effects that may be experienced while using biz include eye irritation,
Starting point is 00:24:57 temporary dimmer, dark vision, headaches and eye redness. Talk to an eye doctor to learn if Viz is right for you. Learn more at Viz.com. Cashflow crunch. OnDek's small business line of credit gives your business immediate access to funds up to $200,000 right when you need it. Cover seasonal dips, manage payroll, restock inventory, or tackle unexpected expenses without missing a beat, with flexible draws, transparent pricing, and control over repayment. Get funded quickly and confidently. Apply today at on deck.com. Funds could be available as soon as tomorrow. Depending on certain loan attributes, your business loan may be issued by on deck or Celtic Bank. On deck does not lend in North Dakota. All loans and amount subject to lender approval.
Starting point is 00:25:37 We're listening to America is talking. Investors Edge. He's got to be pleased with that. The crowd is just on his feet here. He's a Cinderella boy. With Gary Colbomb. It comes highly recommended. You're going to feel better if you talk to him. And what once again to investors edge. Boy, you know what I just noticed? Cisco systems broke to a new yearly high today on 66% better volume than average. Cisco! Wow! It's in the Dow also, but doesn't matter too much because it's lower price than most other things. 72 bucks. Yes, that's Cisco, by the way. that hit a high in the year 2000 at 82 bucks. It is 25 years later and it's 72.
Starting point is 00:26:48 Do not forget how things change. Do not forget. I remember all the big stocks back then that you had to own. I remember Nortel gone. Lucent, gone. America Online merged with what time Warner, gone. buyouts like Ascend and Newbridge networks and all kinds of other ones gone.
Starting point is 00:27:15 Some of them bought out. We will be paying lots of lots of lots of lots of lots of attention as we move forward because I have to tell you this AI thing I told you I've been studying more and more. I believe that they're overspending. I believe it's going to be big, but the numbers that they're coming up with are insane. But I started using it in the last few days. Boy, it does make a difference. I've been doing searches. Boy, it comes up a lot more specific to the point type of thing.
Starting point is 00:27:57 And I do it through whatever, I don't even know the name what Google has. Alphabet. Why they change the name. So to be watched. and of import. There's a narrow group of names that are getting the money flows because AIA, AIA, AIA, A, A, A, A, A, A, A, A, A, A, A, A, A, A, A, A, A, A, A whether it continues or not beats the heck out of me.
Starting point is 00:28:23 But just let you know, it be going on. But it's narrow. I've been asked a lot of questions about a lot of stocks that have blown up, obviously owned. But we have simple thought process here, ladies and gentlemen. If we own a stock and it gaps to the downside because of a worse and out, like we get the hell out. We ask questions later.
Starting point is 00:28:48 We have been lucky that we have not had any stocks gap to the downside that we have owned. I mean, almost forever. And we don't buy anything new when you get a week to two weeks before earnings because we're not smart enough. But we've been asked about names and duolingo we got asked about today because yesterday the stock gapped up. Get this. Imagine a stock closing at $4. Let me get the right number.
Starting point is 00:29:24 At $343. Opens up at $468, $125, but only finishes at $3.90, drops $78 from the highs, and drops another $20 today. Gary, what would you have done? I would have sold yesterday. There's no way I'm writing a stock down when it hits 460 something and closes 390.
Starting point is 00:29:53 That ain't me. I know think long term. No, no, I watch markets. I watch stocks. I get asked about all these other names that are also been blowing up like, you've heard this Twilio, right? Maybe you haven't.
Starting point is 00:30:16 But a lot of these computer companies software stocks have been getting trashed. Stock was down 19% today. What would I have done? Well, first off, I wouldn't have owned it in the first place. It wasn't leading. But what do I want to blow up like that? I'm out. I worry about it later.
Starting point is 00:30:34 And that could be wrong. That could be wrong. I've seen plenty of times where stock gaps down 20 bucks and finishes only down 10. And then rallies higher. This happens. There's nothing really baked in the cake as far as what happens during earnings season. We just have simple rules that we follow very carefully. And all the rules are about one thing.
Starting point is 00:31:06 Mitigating, notice the big word, big losses. We never want big losses. And man, oh man, in spite of new yearly highs, There's 104 new yearly lows on the NASDAQ today. With it up 207. The Dow was up 206. There was still 72 new lows on the NYSE. What does that tell you?
Starting point is 00:31:35 Go Daddy. You've heard of them, right? They keep raising what I pay them. Stock was 216 in January to yearly high. It's 133 today. Down 11% by the way. on the earnings report. We just let you know there's a lot of that going on.
Starting point is 00:31:56 As I said, my left screen that has a lot of these names, beat red today with a good index day, which tells you again. Very narrow. The Russell 2000 was hardly up today and the midcaps were down today. And then you have things that gap up and then give you a certain finger. Yesterday, Dutch Brothers, the coffee company, which I hear they're pretty good, gapped up big. At what point was $73. It's $66 today.
Starting point is 00:32:33 If you bought $73, you're down 10% already in a day. That's why we're very careful around earning season, especially now because you are getting whipped around like there is no tomorrow. And then there are others. Something like an Oracle that gaps up and moves and has another big day, a second day that usually tells you institutions are piling in. Guess what Oracle did afterwards? Boom, it kept going. You know what's doing that now? Maybe Reddit had two strong days off of earnings.
Starting point is 00:33:07 But then you have others that do the opposite. Or a meta, which gapped up and is now sitting for about six days, which is excellent. We like that. we like secondary places to buy. And how do you find them? You gap up, you get too extended, you make a right turn, you draw a line over the high, and then you break above the high, there you go, another move.
Starting point is 00:33:38 That's what we look for. So most of the questions we get on stocks are usually stocks that have been blasted. Interesting, huh? Why? Protection of capital. Mui Importante. Now I got 10 emails on Apple today.
Starting point is 00:34:03 What do you think? Oh, I wish I bought it two days ago. The high was 260 in December. It closed the 229 today. And that's after being up $27 this week. Insane, huh? Growth is slow and slower. and I wonder
Starting point is 00:34:30 the next big thing is a flip phone you're going to buy a flip phone for $2,000 bucks? I'm not I thought we left the flip phone a long
Starting point is 00:34:46 time ago I could be wrong we'll see anyway as I said on Apple I'm stunned a visit to the White House exemptions
Starting point is 00:35:02 get you $400 billion of extra market cap that rule we don't make and I don't think there's a pamphlet on that one and I want to repeat again and I want you to remember this we are the most concentrated ever they are to be watched closely
Starting point is 00:35:27 and even more we're underneath the surface watch closely because if we get to the point where say to you 70% of the stocks are now in downtrends but the indices are only 2% off their highs because of these 15 names we're getting close to heck that's how it works the market likes deceiving and most people that don't go through the innards get deceived we won't up next take you to the weekend. I'm Gary. This is the one only investors edge. Hi, I'm Dr. Jake Goodman, host of Beyond the script, the podcast where I sit down with pharmacists to answer the health questions you didn't even know you could ask at the pharmacy counter. In this episode, we are diving
Starting point is 00:36:52 into gut health with CVS pharmacist Victoria Motola, who explains why so many of us live with stomach issues we should not accept as normal. A lot of what I see is just like chronic bloating. chronic stomach aches. Like I get a stomach ache every time that I eat. And it just becomes like a lifestyle where, oh, yeah, you know, I just have a stomach ache every day. Or I'm constantly feeling like gassy. And all of those things are not something that generally, if you have a healthy gut, you
Starting point is 00:37:23 should be living with. So that's when we deep dive. We deep dive into your medication. We deep dive into your OTC medication. And then at that point, we can probably identify something that we can change. Hear the full conversation plus some fast. Fascinating facts about how gut health affects so much more than just your stomach on Beyond the Script, a podcast from CVS Pharmacy and Eyeheart Radio. Listen now wherever you get your podcasts.
Starting point is 00:37:50 Struggling to see up close, make it visible with Viz. Viz is a once daily prescription eye drop to treat blurry near vision for up to 10 hours. The most common side effects that may be experienced while using Viz include eye irritation, temporary dim or dark vision, headaches and eye redness. Talk to an eye doctor to learn if Viz is right for you. Learn more at Viz.com. Cash flow crunch. OnDec's small business line of credit gives your business immediate access to funds up to $200,000 right when you need it. Cover seasonal dips, manage payroll, restock inventory, or tackle unexpected expenses without missing a beat with flexible draws, transparent pricing and control over repayment. Get funded quickly and confidently. Apply today at ondeck.com. Funds could be available as soon as tomorrow. Depending on certain loan attributes, your business loan may be issued by OnDec or Celtic Bank. OnDak does not lend in North Dakota. All loans and amount subject to lender approval.
Starting point is 00:38:38 You're listening to. What are we waiting for? Well, what are you waiting for? One, two, ready, go. Investors Edge with Gary Culper. And welcome once again to Investor's Edge. May I add a couple of other lessons. I noticed today that Under Armour was down a bucket.
Starting point is 00:39:35 20 or 18% to $5.44 on a worsening outlook. And then I went to the monthly chart on Under Armour and noticed in 2015, Under Armour hit an all-time high at $54.70, which means it's down 90% since 2015. That's Under Armour. which has been much stronger than Under Armour by far and has had a big run through many years but hit a high of 179 in 22 just recently bottomed at around 53 and closed at 74 it's trading where it traded back in 2017 eight years of no gains and its sales the last four quarters were down 10% over the last year before that and earnings have just crumbled to a down 86% year over year now the stock
Starting point is 00:40:58 has been a little bit better because they I guess they cut some deal with Amazon or something but this is what we mean by less and following stocks. And I know you're always hearing from the pundits think long term, but that should be if you owe maybe the S&P or things like that. I'm letting you know on an individual basis we are investing in companies. The stocks represent those companies and the market basically will place a price on those companies.
Starting point is 00:41:40 And sometimes it gets out a hand to the upside. Sometimes it's insane. The no sales crap. And then sometimes and oftentimes, the market has its way of telegraphing trouble. And both these stocks started going wrong before the bad news started coming out. And once bad news happens in corporate America,
Starting point is 00:42:10 Sometimes it feeds on itself and then you're destroyed. I just want to bring that up because I didn't realize under armor. I haven't looked at this. It's been off my screen forever. I didn't realize that sucker was down to five bucks. I'm pretty sure I've seen it, but didn't pay attention to it because obviously it's going the wrong way. So just keep these things in mind. And I'm bringing this up now because, and talking about it more,
Starting point is 00:42:46 because in the last three weeks, we picked up accounts with 200 stocks in them. And as I was going through those 200 stocks, I was just amazed how many were in protracted downtrends. Not down 10%, not down 20, but in major bare markets where the companies are doing poorly. and what these people were told were, well, we want to own a piece of that industry. What? We want to diversify into all industries. Well, why would you do that?
Starting point is 00:43:32 You know what the worst acting group in the market's been for a very long time that doesn't get talked about anymore? Marijuana. Well, the good news is I don't think anybody's diversifying into marijuana. but I'm making a point why would you own big downtrends bad companies I don't want to mention what companies they were
Starting point is 00:43:58 but there were some things in there where the companies have announced big trouble slowing sales shutting of stores you ever want to know what not to own any retailer that's shutting stores anyhow, just part of the lessons that we've learned that we want to teach to you. Because imagine if that 200 stock list were all in uptrends or in the leading groups and not in what have you.
Starting point is 00:44:55 One of them, by the way, had Chipotle. which topped out at 70 bucks and 24, it's 41, and they still own it. And they asked, well, it's Chipotle and they've had a good rep, but they're no longer growing like they used to. Tremendous competition, no changes. So just keep all this in mind. That is why we break the markets apart for you here. that is why we talk about sectors
Starting point is 00:45:34 not own this one of our great calls of the last year was telling you to avoid the HMOs and the managed care they're down 50 60% United Health 606 to 250 that's what we want to do
Starting point is 00:45:55 and when we say to you we're never going to own something like that it's for a damn good reason. We want I-95 North, not I-95 South. And when we tell you, we avoid the no-sales. We miss the upside. We miss the crashes. Just the rules we follow.
Starting point is 00:46:27 That all said, have a great weekend. Head into the airport. drive carefully. When you get home, do like we do, make sure you hug your family, make sure you hug your children. They will feel better, you will feel better. I promise, stay well, be well. Thanks for joining. Good night, all. Bye-bye. This has been Investor's Edge with Gary Cult Bomb on BizTalk. To listen to past episodes or to get in contact with Gary, go to GaryK.com. That's GaryK.com.
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