Investor's Edge with Gary Kaltbaum - Crypto Nightmare

Episode Date: November 17, 2022

Follow Gary on GaryK.com or http://garykaltbaum.com

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Terms apply. Lounge access is subject to change. See Capital One.com for detail. Investor's Edge with Gary Coltbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Cultbaum. And welcome once again to Investors Edge. I'm Gary Coltbaum, your host.

A thanks of being with us today. Glad you here, ladies and gentlemen. Happy that you are listening. It's Thursday, November 17th, 2022. And we are here at our Rome, Italy offices. Well, they're really not offices. But my office is with me. You know, I really can't say we have an office in Rome, Italy.

We don't. But I take my office with me. All my screens are with me. They're in front of me at the hotel. When the young lady came in to clean, she's looking over there. And she started laughing. You know, what can I tell you? Hey, ladies and gentlemen, so we get a lot of emails every day from our listeners.

Every now and then we have one person who leaves messages for us at 1 o'clock in the morning. and I want to address that person. I don't even know the person's name. I want to address that person because I want to address you with what that person said. Because we're always looking over our shoulders. We're of the big belief that when things are right, things are good, when you're doing things well, stay paranoid. So, and let me say. state for the record. This person that calls, I believe, means well, but is, how do I put this?

Nah, I'm not going to say. Anyway, says that I'm repeating myself too much over the crypto and are my listener's stupid, am I stupid, or this, that, and the other thing, and blah, blah, blah. Anyway, we want to let you know up front, we are going to repeat ourselves and we are going to repeat ourselves and we are going to continue to repeat ourselves on trying. It's up to you. But doing everything in our power to guide you on protecting your capital while all hell is breaking loose around you. Simple as that. And what's come out now with this FTX, it looks like it was a criminal enterprise. The guy's last name might as well be Gotti or Gambino. That's what it looks like has come out. And I have to tell you, and this is the weird part of it all. And this is just

me talking to you, me thinking, me not scripted in any way, shape, or form. I never followed this guy that was running FTX. I think I read about him once. I don't even think I've ever seen him talk. So they're posting videos of him and his girlfriend or ex-girlfriend who ran the trading firm. It's a criminal enterprise. It's the best way I can put it. And I listened to him for five minutes and then I listened to him another time for five minutes and he was going on

and on I'm thinking to myself I wouldn't give this freaking nut a dime of my money yet people were throwing billions at this guy celebrities and athletes were flying down the Bahamas

Tom Brady's doing videos with the guy and advertisements with the guy and I I looked at this guy in five minutes. In five minutes of watching a video, I'm thinking to myself one thing and one thing only. I ain't given this guy a dime. I would have never given this guy a dime.

This guy was, forget his hair. Forget his dress. I've seen billionaires dressed terribly and have weird hair. This guy's a creep, though. the things that were coming out of his mouth. And now it's coming out, just so you know, the guy that handled the unwinding of Enron, when Enron had their big problems and their fraud, everything had to be unwound. So they bring in these restructuring people and they come in.

So they already have the guy who did Enron come in. And you know what he said? It's the worst he's ever seen. He didn't use the term criminal enterprise because he won't. But I read over. It's a criminal enterprise. And why am I bringing this up? As I have told you, I try not to pay attention to what anybody says.

Seriously. And I'm on TV and radio. Why I say, and this is not an indictment of people. It's just that everybody's got an opinion. Everybody says something. and so many times it's conflicting. And I just don't want it to enter my area of thought. There are only a select few people I want to hear from.

I've told you about them. Sam Zell on Real Estate. David Tepper, Paul Tudor Jones, George Soros, Stanley Drucken Mill, the Greats of the Greats, Warren Buffett. So I'm real careful about what I hear. and who I hear it from. And it's not hard to drown out. And again, this is not an indictment of anybody who walks on TV.

God bless everybody for trying to put themselves out there. But man, oh, man, oh man, oh man. What have I been telling you in the last year? Because I keep different TVs on and I see who the guests are. Crypto person after crypto person after crypto person after crypto person, after crypto person brought on TV and I would DVR it

and I would play it back after because I wanted to hear what they were saying and you just knew you just knew it when I hear somebody on TV tell me oh we know Bitcoin's gone from 60,000 to 30,000

if you don't buy here you're nuts what a value and I'm thinking to myself, is anybody asking, what is the value based on? Which none of them was asked. They're lucky I wasn't doing the interview. And then you had, listen carefully. Forget the celebrities.

They're getting endorsements. They don't know what the hell they're doing. But you had some really smart managers of money. Get involved. And a few of them are on my chain. I send out reports to a chain and they're on there. And I've been ripping crypto for two to three years. And none of them listened.

And I saw one of them taking a $450 million write down. Another one just bet his whole management on crypto. I don't know if he's out of business. Reputations. You know what they say about reputations? I think was Buffett. It takes a lifetime to earn a great reputation, but seconds to lose it. Reputations are hitting south like there's no tomorrow.

They've been jumping all. If you watch that certain channel, they have been touting it and touting it and touting it and touting it and touting it to you. these are the people that mostly got in late these are the people that were underwater some of them leveraged and they were hoping you would bail them out with your buying we are going to be repetitive on this going forward

because I am letting you know lives have been changed something called stable coin overnight went to zero I read a story about somebody who had 800,000 in it. Their net worth, 800,000. There's nobody to get the money back from. It's over. It's gone. And I can spend hours with you discussing this. But we only have a certain time every day. But we are going to continue to harp. We'll continue to report the news. More and more dominoes

have been falling over. More and more every day. People cannot even redeem their money from some of these exchanges. We're finding out they were all levered, mostly all. Up next, we'll put a bowtie on it,

then the markets. I'm Gary. This is the one only Investors Edge. Hi, I'm Gary Kallbaum, hosted a nationally syndicated radio show Investors Edge. 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 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 888-4-2-5-59.

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What's in your wallet? Terms apply. Lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreaker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio.

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Investors Edge. The last bastion of quality programming. With Gary. called bomb. It doesn't get better than this. And look once again to Investor's Edge. Now let me state for the record, every one of these people that were touting, I take it back. I would gather most of them had good in their mind.

Belief. We think there are a bunch of creeps also, but they pounded away daily. There was not a day that went by that several of them were put on TV. They have a YouTube channel. They're on TikTok. They're on Twitter. They're touting and touting.

And it's gotten so bad to where I saw a video, Becky Quick of CNBC. I mentioned this yesterday. Interviewing a guy who's in Bali and she actually asked him. I couldn't believe it. Are you in Bali because you know you can't get extradited? Now all of a sudden, all these people recognize what we told you three years ago. now they're coming around reporters are reporting

journalists are journaling now telling you everything that we already knew three years ago two years ago one year ago six months ago three months ago and now and there was one person today

I'm not going to mention the grape fruits that come out and say what a great buy it is now there's blood in the streets what a great buy how much money you think that person's lost. So to the person who keeps leaving these messages on my voicemail at 1 a.m., we're just going to keep repeating it.

Because for our listeners, for our viewers, for us, we're in the protecting of capital business, especially when all hell is breaking loose, especially when bubbles abound, especially when you have a central bank that should be abolished, some in jail because they committed inside a trading that we would go to jail for.

We mean business here. We're dead serious about every dime you have, regardless whether you are or not. And there's been utter devastation out there. on something that got mainstreamed. Y, G, R, E, E, D. That's all. Mainstream to the point of conventions

where thousands of people show up. Mainstreamed to the point where this crook, I got pictures of him with politicians. he was up on Capitol Hill testifying. I've never been up on Capitol Hill testifying, and I nailed this. They treated him as the second coming. He was glorified.

Now he's going to end up in a 6x9 cell, and he could take his blockchain and stick it up his rear, and his girlfriend. So that's the crypto for today. And I urge you, just Google the world. Words FXT. Go to my Twitter feed.

I have posted and retweeted a ton of stories and a ton of important things. I just want to make sure it does not happen to you. That's all. And I can promise you it will happen again down the road. Probably not right now because skepticism has picked up. And it's not just the crypto. The NFT business is done. Done.

Athletes, celebrities. Somebody bought an NFT for $2 million, try to put it for sale, didn't even get $250. Or maybe got $250. Quite the moment in time. I should have written a book predicting all this. I didn't.

I may have to write a book talking about all our predictions, why we thought it, and where we are. I think maybe 100, 200 pages that take me a way. week. That's how much is in this brain right now. And if it can prevent one person from losing their butt going forward, it would be worth it. I'm thinking about it right now. If you have any

questions, thoughts on this, email me. Next, and then we'll get into the markets. And I did a little thing on Trump yesterday. I got to tell you. Only got two hate mails. You know what I did get? A couple a dozen of I'm right. And a couple of dozen that wrote, yes, I voted for Trump. I'm hoping he doesn't run again. I got news for you. I think there's a bazillion people like that also. It's just enough. That's the way I look at it. Just enough. Enough of the racist talk, the disloyalty, the stupidity on elections, the sore loser, ing. There's better people. There's better people in that party now. I predicted yesterday. I don't think he's ever going to even get close to the primary. He will bow out. Watch. That's enough on that. We segue, as we're very good at, the markets.

You know, I have not much to say a bigger picture at this juncture. You had a strong move on the risk on last Thursday. You've had a few days. You've had a few days. of settling in, pulling back a little bit of nausea. But overall, I would consider it, I guess somewhat on the constructive side. Today, another very wippy,

another very wicked day in the markets. I can tell you on a daily basis. I don't know what the next day is going to look like. I can tell you on a daily basis. And I mean this. Whether we're going to gap up or gap down. We're dealing with central bankers didn't shut up today. They contradicted each other. Yields were up today. Dollar was up today. Maybe it'll be down tomorrow. I think we are in a near term

downtrend in the yields and the dollar in spite of the fact we bounced up a little bit today. We're just taking it light, taking it easy. We know it bull markets alike. There is one characteristic that is not shown up and that is stocks breaking out of range and just kicking butt to the upside and not looking back I can count on

one hand one hand what I consider to be and yeah there's some things probe in the highs at the tips but umph nah we want some umph

more in the markets up next. I'm Gary. This is the one only investor's edge. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Sprinker, the platform responsible for a rapidly spreading condition known as podcast brain. Symptoms

include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it, Everywhere people listen. Apple Podcasts, Spotify, and about a dozen apps your cousins swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a 300,

annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply, lounge access is subject to change. See Capital One.com for details.

We're listening to. America is talking. Investors Edge. He's got to be pleased with that. 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.

Welcome once again to Investors Edge. One more note before we get into the market today. Nancy Pelosi stepped out in our leadership position. There were many complimenting her today on a job well done and her great leadership. as the Speaker of the House for so long and so many years. Representative Hakeem Jeffries looks like he's going to be the new head of the Democrats in the House.

He won't be the Speaker because they lost the House. He calls himself a Nancy Pelosi Democrat, which sickens the hell out of me. and you know how we measure all these politicians. When Nancy Pelosi got to Washington, D.C., our federal debt was $5 trillion. It is now $31 trillion. That's how we measure Nancy Pelosi. Just another miserable failure, and she's even bigger.

Why? Because she led the party. Simple as that. A miserable failure of epic. proportions, miserable failure of epic proportions. Every Republican and Democrat that has had oversight has been voting, has been on top of this, is a miserable failure. This is money. Just remember, nobody wants to spend time talking about this because it's become so mainstream, you know, debt.

they were never, ever, ever, ever, ever, supposed to spend more than they were taking in. There was always supposed to be balanced budgets. And then they crossed the bridge, cross the Rubicon. And they kept pushing and pushing and pushing and pushing to where Joe Biden has the grapefruits this year to tell us how much he's lowered the deficit, a complete bald-faced lie, even though we know all it is is coming off of the massive spending in COVID, and we know we're still going to have a $1.3 trillion

deficit this year. By the way, Joe Biden has been in D.C. since $500 billion. So $500 billion to $31 trillion, Joe Biden. Take out four years of Trump because he, he's. was out of politics. Miserable failures, every one of them. Do not forget that. What they are doing is financial malpractice, economic malpractice,

the complete and utter disrespect of you and I and every taxpayer out there. The big gigantic, the middle finger is bigger than the Washington monument that is that's what they're given us. And they're laughing their arses off. back in the back rooms. Every one of them.

That all said, the market wrap is brought to you by Investment-Dashmodels.com. That's Jim Rohrabak, one of the great market timers. No gray errors with the man you're either in or out of the market with his proprietary indicators. Go check it out.

Investment-mottles.com. How do I put this? The Dow was down 300, then it was up 50, then it was back down 100 with about 10 minutes to go, finished only down 7. The NASDAQ was down 180, then it was up, then it was down 100 with a few minutes to go. Finish down 38, all over the map.

Let me give you good news. It looks like this pullback off of that Thursday move, you know, 900 point gap to the upside 550 on the NASDAQ. We think it's holding with some warts. What do we mean by holding? the pullback seems to be controlled. Not everything, but overall. Seems to be controlled. That's the good news.

What else? Semiconductors. Why do I bring that up? Well, you know how important it is. So the semiconductors got hit with a pretty good punch yesterday, the micron. on. NVIDIA still finished down today on their crappy earnings. Sox is up 28 today. A percent, no biggie. But we are in the pattern recognition game. It feels like it's normal pullback so far. And that may be good news. What's the bad news? There's really no leadership yet.

what was leading, you know, the relative strength areas. Well, what simply happened is when risk on came, they came down, leaving not many things at new yearly highs, not many things of what we would call leadership. I remember what I said earlier. Bull markets are made of. leadership, stocks breaking out a range, and umph, umph behind them. And we're not there yet. Maybe tomorrow. Maybe soon. We're all for it. Not so sure we're there yet. And of course,

we're open to all outcomes. When I go to my new high list, which is pretty much every day. and I look at it. Not thrilled. On the NASDAQ, first solar and the solars. That's my new high list on the NASDAQ. Not kidding. That's it.

The whole NASDAQ. One stock. Not making it up. On the NYSC, IBM's a new yearly high. restaurant brands QSR somebody's taking a position in it

that's two Allison Transmission Elf Beauty that's four Tootsy Roll Am I right in saying Tootsie Roll? Is that a new yearly high?

Tootsie Roll is at a new yearly high That's five That's my list That's my whole list And I can promise you when things are going good when things are going great guns I'll have 500 names on that list

I just gave you the whole list we'll be ready and when we say yearly highs that's one year you can be in a new yearly high but 15 months ago you're down 50% from that number it's the one year that matters to me

but we'll look behind that also. And I can promise you, a lot of stocks topped out last November. So in the next month, if things don't get trashed again, we'll get some new yearly highs. But it will be stocks that are down 50, 60, 70%, and then stop going down. And then we'll evaluate them from there. if we start to see that leadership, you'll know it because I'll tell you. Simple as that. We still think Thursday, let's say hopefully, the start of some risk on, and what you saw in the last couple of days,

we're just normal pulling back because it went too far too fast. but we will need some cooperation. Yields in the dollar. Again, interesting that yields and the dollar are up today. Maybe that bodes better for tomorrow. Up next, this, that, and the other thing, or whatever else. I'm Gary. This is the one only investor's edge. This message is brought to you by the Capital One Venture X card.

Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply, lounge access is subject to change.

See Capital One.com for details. This episode is brought to you by Spreker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused restaurants. and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple.

You record your show, upload it once, and Spreaker distributes it everywhere people listen. Apple Podcasts, Spotify, and about a dozen apps your cousin's swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Sprinker, because if you're going to talk to yourself for an hour, you might as well publish it. This message is brought to you by the Capital One VentureX card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect.

Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply, lounge access is subject to change. See Capital One.com for details. You're listening to. What are we waiting for?

Well, what are you waiting for? One, two, ready, go. Action! Investors Edge. With Gary Culpa. And we're once again to Investors Edge. Let me just repeat. I am urgent each and every one.

one of you. If you go on my Twitter feed, we've retweeted and posted a bunch of this stuff on the FTX, nightmare. By the way, this guy is going to turn into a, well, he's going to jail, and so is his girlfriend. I just had a repeat. I cannot believe anybody would give him money, just listening to him for three to five minutes. World is nuts. Very good lesson. I'm just looking earnings after the close applied materials is up a little bit. Semiconductor we follow. Earnings up 4%. Again.

Maybe it has to do with the fact that, you know, just bouncing around after a drop. We'll see. We'll see. We're just trying to keep everything in perspective here. We've come off a brutal bare market. There's not a day that doesn't go by that I do not scan. I mean every day, past leaders. It's to give myself a lesson, by the way.

And if you don't know that rule, Bill O'Neill, William O'Neill taught me and many others that bare markets, past leaders will drop 70% on average. I never believe them until I studied it. And then fast forward to the last year. names that had strong, strong buys on them, gargantuan winners of the past bull market. Down 50, 70, 80, 90%. We're even stunned. And as of last Thursday, or Wednesday,

a bunch of them at new yearly lows. By the way, they had a bad day today after bouncing up here recently. These are things that must be remembered. They must be held in high regard. They are rules of the rules of the, road and maybe the bear market's over maybe it isn't we just want to make sure you remember all this for the next go round and we will promise you this there will be a next go round there will be

another bull market another bear where it happens again go get the book how to make money in stocks by bill o'neill william o'neill go get a All his books. Go get Stan Weinstein's books, book The Secrets for Profiting in Bull and Bear markets. Go get Gil Morales's books. He's got a few out there too. I co-wrote one with Bill O'Neill and I believe a couple on his own. And study them.

All these rules of the markets, characteristics of bull and bear markets, I didn't invent them. I learned them from the best. Added a few little wrinkles of my own, because that's what we do. It's imperative. Too many people have called us to tell us how much they're down, how who's ever handling their cake

keeps telling them, don't worry, everything's okay, it'll be fine. While the one million bucks is at $6.50 does not have to happen to you. Treat your money. Importantly. Do some studying.

Get a good understanding of markets. Because if you don't, when the bear hits, well, you've seen what kind of damage is going to be done. And when you're coming off of big bubbles, how much real damage? Real, real damage. Big,

big damage. Gargantuan damage can be done. Some damage that you can never come back from if you're not smart and if you are not careful. The market has no sympathy. It does not care about you or I. It will crush you if it wants to. It's your job to make sure it doesn't. Learn strict sell rules, to never put yourself in the position of being down 50% on something. Simply put, it has to come back 100% to get you back even. And in bare markets, when you think something has gone so far down, oh, it can go much farther. We don't say this to blast you. We say this to help you. And there's every chance, we ain't done with this yet. We hope we are. We're pretty sure a bunch of names have seen their lows for the cycle.

Hey, IBM's at a new yearly high. Go figure. But just in case. And by the way, there were 155 new yearly lows today on the NASDAQ, new yearly lows. And in some famous names, until tomorrow you'll have a great evening. Drive carefully. our last day well we'll be in Rome Saturday leaving on Sunday you have a great evening drive carefully

and when you get home do like we do it simple make sure you hug your family hug your children they'll feel better you'll feel better and just remember one thing about me and this show we really do give a crap and we're going to continue to show you we give a crap as we move forward have a great evening everybody peace out Bye-bye.

This has been Investors' Edge with Gary CultBomb on BizTalk. To listen to past episodes or to get in contact with Gary, go to GaryKK.com. That's GaryK.com. This message is brought to you by the Capital One VentureX card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination.

Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital1.com for details.