Investor's Edge with Gary Kaltbaum - Hey...another up day!

Episode Date: July 6, 2022

More Info At: http://garykaltbaum.comMore

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Now from the BizTalk Studios, here is Gary Cultbaum. And welcome once again to Investors Edge. I'm Gary Coltbaum, your host. A thanks for being with us today. Glad you're here, ladies and gentlemen, happy that you are listening. It is, it's amazing. It's July, you know that? It's actually July now.

It's July. It's July 6th, right? It's 2022. And we've held back on something about, wanted to have a discussion with you guys on you and your money. Of course, the most important thing that we talk about here. So we will do today's market wrap in a little bit. We'll do today's market in a little bit.

We'll do the big picture in a little bit. Another one of these wicked market days all over the map, but a few things, you know, sticking out. We'll get to that. We've received in the last two or three months a bazillion. And you can extrapolate what we extrapolate, we extrapolate, we extrapolate we mean by bazillion, emails on crypto, and the coins. And we try to be very careful with our words here. You know that, right? And the reason why we're very careful with our words is we know a lot of people have lost a lot of money. And we try to be very careful with, I told you so.

Should have listened. We told you this and we told you that. So what I just want to discuss today is for the future, going forward. Because up front, we don't know whether they rally them up again or they keep what we've been calling the slow death drop. And that's what we've been getting so far. So let's spend a few moments because something happened today, an interview today, with someone I don't even know who they are, but they're involved in the business.

And it doesn't matter who they are. But they were so sure of themselves. And of course, they're selling their own book, meaning that, hey, we are a crapload of this stuff. And this person had said, hey, Bitcoin went from a penny up to 60,000. And I'm thinking to myself, what an ass clown for saying that. And what do I mean? You know, I pretty much have my ear to the ground.

I really didn't know about Bitcoin until, I don't know, 2018, maybe, 17. I heard it vaguely. And I was in Europe this past week, and the London Times, I think it is, there's a money section, or is the Sunday Times. And there's a big article. Is Bitcoin just a giant scam?

That's the article. And it goes through and it says the crypto market has lost 57% of its value, the whole crypto market. Perhaps it was too good to be true after all. And they did this whole report. It goes on to say 2.3 million people in the United Kingdom held crypto at the start of 2021. on and, you know, on and on and on and on. People, I don't want to get into the minutiae of that. Here is what I believe.

Just a big gigantic asset bubble that got noisier and noisier after was already up a bazillion. And I'm not sure of exacts, but I'm pretty sure all the big machas that would never ever, ever get involved with stuff like this, own higher than here. And they watch their investments go, and they had a lot of people. They brought in a lot of money and leveraged and things like that. And that's where the noise really started to kick into gear. The GBTC, which is the Bitcoin, whatever, it's a trust, or I don't know what the hell it is, went from 1 up to 39 in the 2017,

dropped down to 4, went up to 16, dropped down to 5, then ran to the big one, the 58. And I'm pretty sure most of these people own it. The GBTC's at 12 and a half right now. I'm going to guess between 16 and 20, but I also think they bought the crap out of it on the way up. I don't believe any of these people meant it to be a scam. I think they really believe in it. I really do.

You know who the scammers are. You know, there's between 19 and 20,000 coins that came out. They were just coming out with coins. in order to guess what? Maybe I can have the next one that goes insane and I can be a bazillionaire. I don't even know if you can call them scammers or just let's call them trying to take advantage of a situation or let's just getting involved in a big gargantuan asset bubble. I remember Dennis Rodman came out with a pot coin if memory serves me right.

I think Mark Cuban came out with one and I read some. somewhere it went to zero overnight. They came out with this dogy coin that came out as a joke. And it went from zero to 70. Last I look was back to five cents and I still wonder why it's five cents. I watched or I listened to a tape of Warren Buffett the other day and seems every now and then he comes up with the line that makes the most sense. and he said, you know, farm prices can go parabolic and then crash, but you still have a farm.

You still have a business. What about these coins? Where's the business on a coin? Forget the crypto. Nobody is buying coins because of blockchain. They're buying the coins so they're buying the coins so they're. they can sell it a higher price let's get that right and when you see an ass clown on tv tell you about the blockchain you know what i usually do i take out a certain finger and it's not the

thumb it's not the index finger it's not your pinky and whatever they call that one next to the pinky it's that other one and i shoot it right at the tv but the block you do not invest in a coin because a blockchain you think you're going to make you're going to make it make money because somebody's going to pay a higher price. Enjoying a healthy dinner that tastes great means eating out at a pricey restaurant, right? Wrong. Healthy Choice Simply steamers are delicious and healthy. The Tray-in-Tray steam technology delivers crisp veggies and tender protein and tasty selections,

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Two years ago, three years ago, two and a half years ago, one and a half years ago, we've had the same one note, same note. When all is said and done, 90% of the coins will drop 90% of more with most going to zero.

And pretty much that's what's happened. I don't think Bitcoin Ethereum are down 90%. but they're down, you know, markedly. Enough. And as I said, I don't know if the next move is up or not. But here is my simple thought. If indeed, this is the big gigantic bubble popping.

And for all evidence in, with so many of the things we have warned you about in the past, I don't know how long, between the marijuana stocks, the 3D stocks, the SPACs, the hunks of junk, the no-sales biotech. I mean, on and on are things that just blown up, including most of the coins. We're not here to tell you what to do. We're not here to tell you to buy, sell shorter cover. We just remain steadfast when all is said and done. We think 90% of them are going to drop 90% or more with most going to zero. and that's basically what's happened except the big two.

We'll put a little bow tie on it next. I'm Gary. 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 888-4-22-559.

That's 888-4-22. 5559. That's 888, 422, 52559. Investment advisory services offered through Coltbaum 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, let's just... I'm going to preach to you. Each and every one of you, I want to think to yourselves about all the money you now have

and how long it took not to make that money, but to save that money. Because when you make money, you pay taxes on it and you have your expenses. You have children. There's a cost there. Maybe you're paying for some weddings. You want to travel. You want to enjoy yourself. Think about all that money and all those years and how long it took for you to save that money.

Notice the silence for a second. I'm making a point. Don't be stupid. The masses got caught up in a bubble. They're getting destroyed. Many still have their head in the sand. How do I know this? Oh, I see it. I have my ear to the ground. They refuse to change. People that have been taking their salary in Bitcoin for the last year and have been destroyed.

I'm not worried. It's the shape of things to come. But they don't realize the only way an asset price can go up is somebody has to pay that price. So they are now dependent on others to pay them. that price, you catch in my drift? And when all is said and done as I have taught you since I started this show, when all is said and done, there it better be something that backs up that price. You have seen it. Let's just go back to the year 2000. When price got out of hand, destruction, tons of internet companies that never should have been companies went bust. You saw it in 08. A bunch of crooks running the banks with none going to jail, ran them into the ground with massive leverage.

Citigroup is still down 90% from 08. I don't know if you know that. It did a 1 for 10 split. If these great banks can go, what about these things that have nothing behind them except somebody willing to pay a higher price? And when I say to you on this show, just, Ask yourself a question. What backs it? What backs a coin? Nothing. You know, a dime's a dime. There's a back. There's something that backs that. It's a worth. A nickels a nickels, a penny is a penny. A quarter. A dollar's a dollar, though that trades against currencies. And by the way, the dollar is the strongest currency in the world right now. Why? We're the best of the worst because everybody else around the global. I'll just I'll hold my tongue. But when I invest, let's say I decided to buy Hershey's.

You know, they have good chocolate. I can tell you, they did $9 billion in revenues in the last year. I can tell you they earn almost $8 a share, $1.6 billion in earnings. that backs the price of that stock. I can tell you that every store you go into there's Hershey bars. I can tell you that. Now tell me about a coin. You catch in my drift?

I picked Hershey out because it's so easy to explain. When your five-year-old's eaten, it's all over his mouth and you got to wipe his mouth, all that Hershey's and then you look at the Hershey Bar and you say, can I have half? And your kid looks at you and say, no. And why am I bringing this up today? I'm getting a crap load of emails with the, and a lot of them start with, don't you think? And I think a lot of those emails are people that still own this stuff all the way down. And I think some of those emails are people that have never bought it, but are watching some of these ass clowns on TV saying, well, we've seen this before.

And the last time, while most of them can't even go to the bathroom right now, they're so constipated because they're down 60 or 70 percent, and they're praying that you buy and can get them out at a higher price. I'm not going to tell you what to do. I'm just letting you know when you get into bare markets and bubbles popping all the curtains come down I think it was Warren Buffett also said

only when the tide goes out is the naked man something to that effect so you people out there that saved all the money you saved do not make it easier to lose the money maybe they rally them up again I don't know maybe we get another bubble move.

I don't know. What I do know is there's 19,000 coins with most of them zero, with a few still lying around, down anywhere from 60 to 90%. And we just don't want it happening to you. And that goes for a lot of the crap foisted upon you. We warned you about the SPACs. You know, Wall Street doesn't talk about SPACs anymore.

you don't hear anything you know why they made a crap load of money they got big fees and bonuses while you lost your arse on them and they're hoping let's not talk about that amongst other crap that's out there substance earnings sales products businesses up next we're not done and then the market today. This is the one that only in Mr. Z. Enjoying a healthy dinner that tastes great means eating out at a pricey restaurant, right? Wrong. Healthy Choice Simply steamers are delicious and healthy.

The tray-and-tray steam technology delivers crisp veggies and tender protein and tasty selections, like Healthy Choice Simply Steamers grilled chicken and broccoli alfredo. It's a satisfying meal with 28 grams of protein, and nothing artificial. Healthy choice simply steamers. What having it all tastes like. Success starts with your drive, and American Public University is here to fuel it.

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America is talking. Investors Edge. He's got to be pleased with that. The crowd is just on its feet here. He's a Cinderella boy. With Gary Colbomb. highly recommended you're gonna feel better if you talk to him so am I making a wee bit of sense you know Rivian was the final nail in the coffin you know everything really

topped in November that's when that came public and Wall Street got away with it a man imagine this again I want you to remember this because we've gotten a lot of thank you on this one and this is part of what we've been talking about guys you got to work harder on protecting your savings because of all the hours you put into just getting to the savings point so Wall Street in their infinite wisdom were able to come out with an IPO at 78 dollars that's 78 bucks which gave this company I think an IPO like 70 billion dollar market cap, $70 billion. Boy, this must be a meaty company. 70 billion. They hadn't sold a car.

In fact, at the time, they delivered 42 cars to employees but hadn't sold a car. But amazingly, when it came public, it opened up at $100. Excuse me. It closed the first day at $100 from 78. People were into buying it at a $90 billion market cap at the close that day. even though, hadn't sold a car. And amazingly, in the subsequent four days, they rallied up to one, almost 180, which gave it about a $160 billion market cap.

Really? And they hadn't sold a car. So I yelled and screamed at you. I was on Charles Payne show that day, and I got to be really careful with my words on TV. That day I wasn't so careful. I said it was the poster child, the bubbles, for starters. Anyway, that day, Ford and GM's market cap was $170 billion.

This stock was $160 billion, but Ford and GM had what? $260 billion of revenues, but this thing had none. And me and my usual self came on. and said to you, this thing's a $20 stock. And we're probably being generous. Well, it's now 20, up from 19. Somebody's even buying it up here. I don't know why.

And even down at these levels, it's got a $27 billion market cap. And I'm thinking to myself, are they even accounting for risk at these levels? Or competition? like nobody else is selling electric vehicles. These are the questions you must ask yourself. I caught a lot of flack from you trumpets.

The people that love Trump, God bless you all. God bless you. We came on this show when it was a hundred bucks. And we went nuts on this show and said, this is a SPAC. All the SPACs are single-disc. Please be careful. They're going to take this one down also. Oh, the hate mail I got for a week on that, just because I'm trying to help you with you and your money. Everybody took it politically. It had nothing to do with Trump. It's gone from 102 to 23. We had some stock transfer in here when it was still 50 and we immediately sold it. Somewhere around there. Not knowing. You know, it could have rallied up first. You've got to know your environment.

You wouldn't go swimming in the Everglades, would you? You get eaten by an alligator. Of course, that's a harsh example. But don't you give a crap about your financial situation? You know, I'm reading today, and for the last few months, people that put all their money in the stable coin, people lost their life savings overnight. They called it a stable coin.

Whoever ran that joint should be kicked into nuts. Grapefruits, excuse me. All these crypto places are shutting down. They're stopping you from getting your money out. I heard some of these places said, we'll pay you 8% on your money to keep your coins here. Ain't nobody can pay you 8% money guaranteed. With interest rates down at 1.

So just be careful. We've had some big busts, and we don't know if it's over yet or not. They just busted the commodities. Do you know the OIH, the Oil Services, ETF, is down 34% in less than four weeks? Unbelievable what they do and the moves. We've already covered all the growth names over the last 18 months. 6% down 90% on the NASDA. 22% down 75% more than 50% down 50%

Price baby Tell your broker to kiss your arse If he says to you think long term and you're down 30% or 40% or 50% and one of your stocks down 70% They're not thinking of the money you saved So guess what you got to do? That's your job We'll keep it guiding We'll keep telling. We'll keep giving you the big picture.

Our recent big picture was all the commodities topping out. Telegraphing recession. The Chinese ADRs only think potentially body, but they had a bad day today, off the lows of the day, but they're about getting worrisome. And the rest of the market, you know, bouncing a little bit here and there. And we'll be specific, we'll be precise. if wrong will be wrong quick and wrong small and just try to get the main trend right but it's you

you're the ones that got to protect it don't be silly I read about a guy who bought an NFT for 2.8 million and put it up for sale and I think he got a hit for like 6 grand that was a person that could afford I hope could afford the 2.8 million I already told you about a guy

guy who bought a sculpture, an invisible sculpture for 18,000 bucks. In other words, hot air. What was he trying to do? Crazy times creates crazy things. Bubbles create crazy action. Bubble creates losing your mind, losing your head, all in the name of greed and riches. Bubbles popping will destroy you. That's what the last, since February of 21 of about. Where it goes from here, I don't know. I'm just letting you know to put the bow tie on. I'm getting a lot of emails, don't you think? Meaning, people are in hopes that these things are going to get going again, and they don't have to. We told you in bare markets, what did we say? you better have some substance.

You better have some backing. Because even great stocks will take big hits. Netflix's down 75%. Is that a bad company? Well, it's a bad stock. Your savings. Your savings. Not how much money you made.

Your savings! We'll keep doing our best. We want you to keep doing your best. just in case it worsens. And there's every chance it could. Remember what we told you two years ago? Central bank-induced booms, central debt bank-induced bubbles, what's the usual outcome?

Up next, today's market wrap. All over the map. I'm Gary. This is the one-only investor's edge. Enjoying a healthy dinner that tastes great means eating out at a pricey restaurant, right? Wrong. Healthy Choice Simply steamers are delicious and healthy. The tray-and-tray steam technology delivers crisp veggies and tender protein and tasty selections like Healthy Choice Simply Steamers grilled chicken and broccoli alfredo. It's a satisfying meal with 28 grams of protein and nothing artificial. Healthy Choice Simply Steamers. What having it all tastes like. Success starts with your

drive, and American Public University is here to fuel it. With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at APU. With the power and endurance of Toyota trucks, you can go to the most important. incredible places, like this valley where the echo does different voices. Hello! Hello!

We know what we're made of, Toyota Trucks. You're listening to. What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! In the Gester's H. With Gary Culper.

And, and, and, and, by the way, I meant to be preachy today, even though I'm told don't be preachy because I'm just reading a lot of stories about a lot of money that are being lost. I'm thinking about the quarterback at Jacksonville that his salary and Bitcoin I tried reaching out to the agent in him.

Nobody ever got back to me. I'm hoping he changed up months ago. I'm people, you know, just by being out there and seeing things, there's just a lot of people still involved and I can't imagine. And right now, and that can change tomorrow, the Bitcoin and the Ethereum, the two head honcho, top dog big cheeses, it's like a slow death. And I really do believe there's this anticipation, oh, it's going to go back. And why?

Because they're watching these people, you know, saying, well, it's going to go back. And I can tell you again, and I say this with no joy. They're all now fake smiles and constipated and cannot even go to the bathroom without taking, what are you, take a Maylocks or something like that. The amount of money lost because there's leverage in these things is gargantuan. And there's some big, big machas, these hedge fund guys that got into crypto, by the way, late, they ain't happy. They're no geniuses. They're no experts. They should have listened to me.

They did not read the book, Extraordinary Popular Delusions of the Man This Are Crounds. And all this I've been telling you for two, three, four years on bubbles is from that book. Go get it. I don't get a dime for it. They don't even know I'm mentioning. extraordinary popular delusions the madness of crowds talks about all these bubbles used to be tulip bulbs i still have a pokegon card that they tell me still worth 1015 000 bucks we're gonna i should sell it haven't sold it yet what the hell is a pooh i there's a guy out

there was it that guys one of those influencers jake paul or somebody he's got a Pokemon card that they say is worth 2.5 million is that possible i got to check that out 2.5 mil pokymon card i'm gonna look at that tonight So again, kids, peeps, I love you all. Everything I'm telling you is not things I have learned, but also things I have studied. And I think I've got a real good clue of fear and greed and extremes. And we've proven that to you time and time again. We warned you way in advance, way in advance.

thousand times. And all our worries have come to fruition. All of them. And we hope it ends. You know, we hope just everything turns and gets going. I just don't think a lot of these bubbles are going to. And there's a lot of hope and prayer that they will. My buddy Charles Gasparino from Fox Business,

he fights on Twitter all the time. These people, that AMC, the movie theater thing, even though I've been saying he's been saying these things are bubbles, whatever, they just keep fighting and cursing them out and want to sue them for just an opinion. Well, AMC has gone from what? 72 to 12. That's a lot. 80%.

We don't want that happening to you. All right, today's market wrap brought to you by Investment-Models.com. That's Jim Roarback. One of the great market timers. No gray errors with the man you're either in or out of the market. proprietary indicators, go check it out. Investment-mottles.com. Well, let me say this.

With 23 minutes left in the market, we were up about 250. We only finished up 69. And I can tell you, with a couple of minutes left, we were only up 20. We were up like 100. On the NASDAQ, we were up at the same time, 11-443, 80. We're up about 120. We only finished up 39. but still finished up 39.

Advanced declines weren't that good for an update. I can tell you the stuff had a bad day. Oil's down again today. Oil prices down, but I will tell you, oil stocks were down much worse. And probably, as I mentioned earlier, the OIH, amazingly, these were things that were, remember what were you telling you, if you had to own anything, own the oils? And then that changed, we told you on June 10th, down 34% in three and a half weeks. Holy crap.

Financial's not a great day. The housing stock's not a great day because interest rates backed up today. Retail not a great day because interest rates back up today. I must tell you, with oil prices tanking, they tanked a little more today. I'm very surprised they can't get the hotels moving. They can't get the cruise lines moving. They can't get the casinos moving. They can't get the airlines moving.

They can't get the travel moving. That's something to watch. Of note, the China stocks. This may have to do with the locking down again. They were really weak today. But kind of off the lows, a name I watch, Bidu, was down five today, was down, I think, 10 at one time. Alibaba was down at one time, five today. Only finished down one.

But there to be watched because, remember we've told you, they're the only things that look like potentially bottoming, but we need to see more. But how do you trust this government? They're locking down on, do you know the China government is locking down cities if one person got COVID? At least that's what I'm reading. Not sure that's great. The higher beta names that had a good day yesterday didn't have a great day today. You know which had a better day today? Apple was up a buck 30, was up $250.

And then when the market came in, here's the amazing thing. Goldman Sachs actually lowered a target on Apple below its price. I've never seen that. Or I haven't seen that often. Closed at 143. They say their targets 130. Interesting. Google's up 26.

I will tell you, Google only up 200 points from the low yesterday. Seriously. But still way off the highs. Again, you get these random moves and stocks at any given point in time. Not much I can take out of today except to say main trends still on the iffy front. Small and midcaps definitely underperform today. There's really no new highs in the market. I noticed General Mills is a new high today.

Yay. Remember, that's defensive. We like offensive stuff. Eli Lilly at new highs. A couple of big biotechs at new highs. Umana, new highs. That's the managed care, but that's about it. And still plenty of new lows. So just take your time. Big picture. Not much changed today, if anything. And again, we really hope you're heating to some of the things we're saying. We mean business and care about every dime whether you do or not. Until tomorrow, I have a great day, drive carefully when you get home, do like we do. Very simple. Make sure you hug your children. Seriously, they'll feel better, you'll feel better. Until tomorrow, peace out.

Bye-bye all. Night night. 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 Gary K.com. That's GaryK.com. Success starts with your drive, and American Public University is here to fuel it. With affordable tuition and over 200 flexible online programs,

APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at appu.apus.edu. 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.

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