Investor's Edge with Gary Kaltbaum - Harrowing Friday [06.05.2026]

Episode Date: June 5, 2026

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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, your host. Thanks for being with us today. Glad you here, ladies and gentlemen. Happy that you are listening, or maybe you're not.

It's June 5th, it's Friday. It's 2026. Hope you having a good day. as always we have a lot to cover we do the markets the economy your job your industry tariffs the job the job market anything that we think matters to you and your life and all that war and all that artificial intelligence and all that the Knicks tonight and all that please listen carefully today

got a few things to say if you do not get this radio show in your city we will post it at garyk.com we'll also post it on our X feed if you don't follow us on X just put our name in used to be Twitter And if you'd like to email us, just be nice. Respectful. We'll be respectful right back. We're going to do a few things today.

The market got trash today. It's not our fault. Went very defensive today. We'll explain. And we're going to kind of pick it apart for you. We are doing the show from our iPhone. but a how do I call it

a software app that let's allow radio on the iPhone hope it's coming out good for you so just so you know you had a job market number come out today better than expected trends better now

let's hope it continues we find that very very important we've always said on this show find somebody without a job and I'll find somebody that's not in great mindset. People should have jobs. On that note, yields rose. That's not a big deal, right? They can rise on good news. The dollar was strong. That should be good news off of the market from the job market. But the market

was squash today. Final numbers, Dow was nearing 700. And keep in mind, when market gets defensive, the Dow will hold up better. So the S&P was down 200, which was, let me give you percentages. The S&P today, if I can find it, was down 2.35%. The NASDAQ, the NASDAQ, though, was down at 4.2%. The NASDAQ 100 was down 4.7%. And are you ready for this? The Almighty Semiconductor Index was down 10 to quarter percent. We're getting emails, what's going on?

Why do you think this is happening? and the answer is don't know, but there are some things that were rung up today. Well, for starters, some of these areas have had a big run. They've been due to correct. That's number one. But number two, what has been our ultimate worry about all this AI and semiconductors?

What have we been telling you throughout the rally, and that is the debt and the spend? And what do we mean by that? Well, we have a lot of companies' stock prices moving up on what we call the spend. What others are going to spend on? For instance, this week, Google announced Alphabet, $80 billion stock. and debt offering, 80 billion. Just so you know, these are gargantuan numbers. 80 billion, but stock in debt. And as we told you, Google Alphabet's stock went down about 150 billion dollar market cap on the news. But on that day, some of the benefactors

gapped up very strong. We already know about Oracle and their debt as well as others. And then today out of nowhere, Meta, the old Facebook, is mulling, raising tens of billions of dollars in a stock offering. Now that came late in the day, late in the day. And why would they do that? the spent, the spent, data centers, AI, this, that and the other thing. I'm wondering, just wondering, if the market's flushing some things out.

And just so you know, it's had a good run, 10% drop in the socks after the move it's just had. I'd bring up a X-feed person. I was thinking about reading it to you, but I'm not going to. It's too long. And I don't want to be the voice of this, so I want you to read it yourself. There's a guy named George Noble. He is a ex-portfolio manager for Fidelity. It's got some cred.

And Vidia stock has been weird recently. up down, up down. It was down 13.5 bucks today, rough day. I'm just going to read a couple of lines from what George Noble put out, and his moniker on X is G-Nobble 79, G-N-O-B-L-E-79. The first line is, NVIDIA, is buying its own chips and calling it revenue. So I'm going to do the first few lines and then you go read the rest. And I'm not sure there's a cause and effect, but this came out today. It goes like this.

In January 2000 of 26, by the way, this is not the first time we brought up this, what we call circular financing or self financing. in January 2006 a special purpose vehicle called Valor compute infrastructure was created created

it was created with one purpose by Nvidia chips you got that this entity Valor raised $5.4 billion dollars and then purchased over

100,000 of Nvidia's GB200 GPUs. Of that 5.4 billion dollars, 1.9 billion came from Nvidia. So mind you, Nvidia financed a new entity of 1.9 billion, and that entity bought 1.9 billion of the chips, and they booked it as revenue. But what about the rest of the money? 3.5 billion more. Guess what? Nvidia, the entity that raised 5.4 billion, bought the whole 5.4 billion worth of Nvidia chips.

But where did they get the rest of the money? Up next. This is the one only investor's edge. Hi, I'm Gary Kalbaum, 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 888-4-22-5-59. That's 8-8-5-5-9. That's 888-4-22-55-9. Investment Advisory Services offered through call-bomb capital management.

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. With Gary Coltbaum. It doesn't get better than this. So, listen carefully.

An entity raised $5.4 billion. It was funded by $1.9 billion of Nvidia, from Nvidia, and $3.5 billion from another. other entity that 5.4 billion bought Nvidia chips and were booked as revenue. The remaining 3.5 billion came from Apollo Global Management. Apollo, structured the debt, packaged it into securities, and then sold the securities to somebody else.

So, a shell company with 1.9 billion. The shell company buys 5.4 billion of Nvidia chips. Apollo finances the remaining 3.5 billion and sells the debt immediately to an insurance arm. The insurance arm packages it into annuity products and sells them to, well, probably retirees. Go read the rest at G. N-O-B-L-E-79. And I would never send this to you or even talk about it. This guy ran the Fidelity Overseas Fund.

It was the number one mutual fund. He was former assistant of Peter Lynch. That's why. And I don't know. Listen carefully. I do not know. I do not know if the cause and effect came from that today. I don't know.

But I will tell you this. They really smoke the hell out of the AI semiconductor trade today. Simple as that. They smoked the hell out of it today. As I mentioned, Nvidia was down 13.5. technically not real good looking but are you ready KLAC

9% these are equipment makers and as you know all you've been hearing is that oh they're going to have gargantuan amount of business it was down 9.5% ASML another one 6.6%

applied materials 9.7. Lamb Research 9.8. Notice I'm doing for a change the percentages. And as I run down the list,

I am seeing some even worse. You probably never heard of AXT, Inc, right? 16% today. For example, 16. percent today.

Monolithic power, that would be symbol MPWR, 10 and a half percent today. Names you may know, Qualcomm, down 11 percent today. I mentioned meta. They're mulling, raising tens of billions. The stock tanked, down 5.5 percent. today. The socks, as I said,

10 and a quarter percent today. And then some of the AI stuff, you ready? Sand disk, 11.5% today. Leading name. Micron, 12.9%

leading name. Seagate, 8.5%. half, Western Digital, 11, and change. Taiwan semi, 6.7. I don't think I need to do any more, right? Dell, which has had a good move, was down six and a half today. Tesla, got to bring that up.

You know why? Two analysts upgraded it today that was down 6.6%. today. Caterpillar in the Dow and AI name only 3.9% today. And others 5, 6, 7, 8, 9, 10, if not more today. What else would get hit today? Well, with the dollar strong, they came after the metals and mining. commodities will tend to get hit when the dollar is strong because of higher yields. And also, well, oil is a commodity. Oil prices were down only about $2.80 today, but the OIH, down 5.5% today. The XLE, only down two because that's the big oil.

That'll hold up better. And the XOP, about 3%, not as bad as I thought. But what else stuck out? Well, where did money have to go? Well, what happens when the market gets some defense? Defensive. Chlorox up four and a half. Colgate up three and a half.

Kimberly Clark up six. Philip Morris up three. Catch the drift. Consumer staples will always do better. The Dow holds up better. In the Dow today, you ready? Procter & Gamble up almost six. Just for example, Coke up 260. Johnson and Johnson up 460. For example, where else did money flow today? Very weak insurance stocks. Is insurance defensive? Well, yeah. So all stayed up 10 bucks, Chubb up 11 bucks.

And just so you know, they've all been very weak. Progressive up eight bucks. Very weak stuff. Interesting enough. Medical was better too. Not all. And Eli Lilly's had a lot of news on their drug, so that was up a bit again today. Interesting that transport's not bad, but that's lower oil prices.

Up next, we'll continue with the markets. and a few other tidbits. This is the one only Investor's Edge. 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. And welcome once again to Investor's Edge. The Russell was down 3.6%. Mid-caps. Let me make sure that. Mid caps down 2%.

It was a rough day. Just letting you know, the S&P today broke the 21-day moving average handling. Keep in mind it's had a real good move off the lows recently. The Dow did not. And as always, the Dow will hold up better. The NASDAQ broke the 21 day also, pretty high. handle it, as well as the NASDAQ 100. I'm getting emails about crashes and I'm like, what?

We've never have gotten into that. There are people that have been calling for crashes for 20 years. So keep that in mind. But valuations are up in the trees. You've had some good froth and speculation. By the way, the froth was really coming off today. I don't mind that. Do you remember when the president announced...

What was the last thing he announced in the last week? Oh, drones. And we were worried about it. Oh, and quantum also. And we're worried about it because... I'm trying to be nice about this. I have no freaking clue why an administration we talk about taking positions in startup quantum and drone companies with excessive valuations

where they tried it once and then they crashed and now they're doing it again. So we're just letting you know the quantum today, the drones today, the nuclear today got absolutely smoked and we are, we're careful about our words. If you're going to buy a nuclear stock with no sales and $8 billion in revenues or $12 billion in revenues or $15 billion in revenues, we can't help you. And if your comeback is, well, they got involved with Intel and it's had a big run. Well, Intel has a lot of business. We can't help you if you're taking out $10 bills and trading them in for a buck. can't help you.

So you get to decide. The president said some things that are arse backwards today, saying that the market shouldn't be going down on a strong jobs number, which makes absolutely zero sense. The market is a tool of the forecast, not of today. and the market is very much about easy money or tighter money, and I can promise you, with oil prices and other things, inflation-wise, rates now would be insane.

The Fed is at 3.5%. The 10 years at 4.53, and the 30 years at 5, insane. Amongst other things he said today that were, I don't know what to tell you. What else? It would take today as a potential, notice the word, warning shot. The technology arena has had its way for a while, especially this move off of April 8th gap to the upside. Technology is a gargantuan, gargantuan percentage of the big indices. So if it keeps coming in, big indices will suffer.

Do I think it's going to keep coming in? I think odds favor there's going to be some serious backing and filling going on and let the 50-day moving average catch up with price, which means time and price. I think today's somewhat of a warning shot. There was talk today, well, what happens if we sign the deal with Iran? I think that's moving off the table right now as the big influence. because the market I think already knows that they're going to get the hell out of the way because of the midterm elections.

What had my interest today also, retail stocks didn't do so well with a better job market. I would expect better. Royal Caribbean was down 13 bucks in cruise lines. I would expect it a little better there too. We've been telling you how good the banks are. I got to tell you, I had a few banks. Thanks up today, but Goldman was down 5% today. Why would Goldman be down 5%?

Because they're more market-based than anybody else. And it already was up 10% in days. Now, there's a few other things that we have to mention that are of note. The valuation of SpaceX coming out, where we hear there's very strong demand for it, the IPO. But I hear they have 10 billion in revenues and it's going to come out at a 1.77 trillion market cap. Space X revenues, 18 billion, not 10. 18. With a $1.7 trillion market cap at IPO, 1.77.

Let's keep that in mind. and a net loss of $5 billion. Just keep all that in mind. I was watching a video of Ron Barron, who's one of the biggest investors in Elon Musk, and successfully big time. And I have to tell you, he could sell me sand if I was in a desert.

He was talking about trillions of business that SpaceX is going to do via Starlink and the launches. we'll see how that goes. That's next week, and the question is, is that going to eat up funds? I was told that space stocks were going to do great because of the valuation of SpaceX. The space stocks have been crashing the last week.

And one of them, symbol PL, Planet Labs, down 26% today on their earnings. So be careful. It's very easy to get caught in the hype. Alright, let me switch up a little bit here. Jerry Demings used to be the sheriff of Orange County, now the mayor, was running for governor of Florida and is now stepped down from the campaign. He announced that he has cancer, prostate cancer, that was caught early, so should be okay.

One of the greatest men I have met in Central Florida was on the board of the Boys and Girls Clubs of Central Florida with me. I loved that guy. Loved him. And by the way, his wife was Baldemmings, who was in the house and ran for Senate and lost in Florida. Both of them. I cannot say enough good about them. can't say enough good to terrific people who have done nothing but great things for the community. I wish the man well.

I wish them good health. I hope they get this freaking cancer and get it the hell out of the way and live happily ever after. Just wanted to mention Jerry Downings. Next, in case you don't know, I suffer no fools when it comes to politicians. Can't stand any of them. But some more than others. In case you don't know

the Democrats are endorsing a man that I'm going to cover up next on Investor's Edge. Listening to What are we waiting for? Well, what are you waiting for? One, two,

ready, go. Investers Edge with Gary Culper. Once again to Investors' So you can read what I put out at gary k.com also on my Twitter feed. In case you don't know, there's a guy running for Senate in the main. Not going to mention his name. Had a tattoo on his chest for a couple of decades.

The tattoo was a death's head, a skull and crossbones emblem utilized by the nine. Nazi SS. In case you don't know who the Nazi SS were, murderers, in case you don't know, 17 million people killed six million of them Jews. The man honored for a couple of decades,

the Nazis, the Nazi SS. The Democrat Party is endorsing him. They're saying they're backing him and endorsing him because, the Republicans are so bad. Affordability. Trump's corrupt. And all that.

I say, that's your excuse? A Nazi lover? Now, the man's come out and said he had no idea what it was. It has now come out by two of his girlfriends. By the way, there's some sex things going on also. That came out and said, oh, he knew. In fact, he called it my Totenkov. By the way, this symbol was known as the Totenkov.

Just wanted to let you know. Chuck Schumer, a Jew, head of the Senate, who was quiet when Jewish students were threatened and attacked in college, who just put out a book called Anti-Ssexual. Semitism in America, a warning. Little did we know Chuck Schumer was warning about him and his party. Endorsing, let me repeat, a man who honored the Nazi SS.

You can go look up with the SS means. I am beside myself. I'm beside myself. In a world where October 7th occurred, in a world where anti-Semitic attacks have picked up, in a world where college presidents turned a blind eye to those Jewish students being attacked and threatened,

where the New York City mayor hires every Jew-hating and Israel-hating person this side of the Picos, and couldn't even walk in a place. parade given the excuse, oh, it's just about Israel when his whole life is hating Jews. In a world where the Bondi Beach massacre occurred, and we're on October 7th when it happened, there were people out there blaming the Jews and saying they had it coming. You would think in that world, the head of the Senate in the Democratic Party is Jewish, would grow some nuts.

But no, I don't know if he's going to win. I believe he's in a primary first. And we've had bad people. George Santos in the Republican Party, a scumbag. By the way, he's being investigated again for other crap. I can name quite a few others. But you get my point.

Why am I bringing this up? If this man wins, and he would be facing Susan Collins, a longtime Republican that votes down the middle a lot, if he wins, he'll be one of a hundred people in a land of 350 million people that get the vote on our future, and he is a Nazi lover. besides looks like a sexual predator also but who's counting I digress a crappy day today I have nothing good to say about it I can't find much redeeming about it

we'll see how the weekend goes how Monday comes in you can imagine we de-risked because when the leading stocks and the leading groups top it's usually something What happens next? We do not know, but they let some air out today. As the market went quite on the defensive side, as my defensive screen is a lot of green,

my growth screen beat red, as Dwight Shrewt might say, as he loved beats. I'll never touch a beef, by the way. I did touch an artichoke this weekend for the first time ever. I didn't mind it only because I dipped it in something. No broccoli, no cauliflower, no beets, no Brussels sprouts, none of that crap for me. I doubt I'll do artichoke again.

Did it once. And that is our food segment for today. Tonight's the Knicks. I'll be at a watch party in Central Park tonight in New York City. Hopefully, 2 and 0. What I loved about the Knicks is when they won the game one, they didn't celebrate a bit. What I'm worried about is too many people saying they're a lock. Have a great weekend.

Drive carefully. When you get home, do like we do, quite simple. Make sure you hug your family. Make sure you hug your children. and they will feel better. You will feel better. I promise. Stay well. Be well. Thanks for joining. Always appreciate your time. Have a good night, everybody. Peace out. This has been Investors 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.