Investor's Edge with Gary Kaltbaum - 'Risk Management' Part 2

Episode Date: June 21, 2023

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

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. Investors 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 Colpom,

your host. A thanks of being with us today. Glad you're here, ladies and gentlemen, happy that you are listening. It is Wednesday, June 21st, 2003. Hope you having a good day. We're here in Central Florida and Man, oh man. In case you to don't know a little bit about Florida, summertime, afternoon storms. Oh, we got a few today. What can I tell you? We're used to it. If you hear thunderbolts and lightning, very, very frightening to me, you'll be hearing it in the background a little bit. This is serious talk on you and everything that affects you, the economy, jobs, your money, and all else in between. With a little comedy and jack it did when we need to, and a little more seriousness

when we need to. First thing I want to cover today, I wasn't sure the reaction. Yesterday on the outset, we were talking about risk management and this submarine that we keep our fingers crossed, that they are found, but no good news as of now, and no news is not good news at this moment in time. there is not one person that disagree with me. Every email I received greed. Where was the risk management?

And we weren't sure whether we wanted to bring it up or not, but how do you go into this small sub, which by the way is controlled with an Xbox game control? You're going down two and a half hours into the dark. in the, I wouldn't call it the middle of the ocean, but way offshore, and you don't have a second vessel with you. That's all I was thinking about. Where is the fail safe?

Anyway, not one of you disagree with me. I have to tell you, in the noon hour today of Fox business, Neil Cavuto show coast to coast, he had on somebody who went on that, I guess the word is voyage. It was a gentleman. his name, but he is a writer for the Simpsons. And I'm going to quote him. I'm going to quote this man about this vehicle. First line, just a tube that sinks. The next line, you control it with an Xbox game control. The next line, you're going down for two and a half hours. It's Dark.

And I'm, you know, when I say to you on this show with the markets, which, by the way, this is a lot more serious than the markets, lives may be lost. When I say to you, when we're wrong, we're wrong fast and we're wrong small. That's what we mean by risk management. That's why we have no use for permibules in this market. If the market went to zero, oh, don't worry, everything's okay, it'll come back. And of course, the market's not going to zero, but a lot of stocks have. Risk management. So just the old comparison, analogy, whatever you want to call it.

Risk management, kids. The other day I was driving on I4 and a motorcycle, I didn't even see it. whizzed past me on I'm going to guess, just a guess, was doing 110 miles per hour on I-4, a motorcycle without a helmet, with cars on the road. And if I tell you, he passed one car, there's three feet from him, and there's no way that car would have saw him coming. All that car had to do was move three feet to the right and this person was dead. Risk management.

Anyway, just something to think about with you and your hard-earned savings and pretty much everything you do. You know, one of the things we taught our sons was nothing good happens after midnight. Risk management. Nothing good happens when you drink too much and you're out of control. risk management. That's what we basically told our sons. When I was in college, this is a true story, there was one night where we went out, I woke up 5 a.m. in a parking lot, face down in a puddle. It was drizzling. I don't remember how I got there. I do remember. drinking and I promise myself that night ain't ever going to happen again. Risk management.

By the way, that's a true story. It was in Tampa. It was a place called Penrods. And I didn't think I was, I drank a lot. I don't know what was in the drinks. But risk management. So I was just thinking about this sub. How to hell? Have you seen the size of this thing? how to hell do you take that down two and a half miles with no backup with no backup and by the way I believe there are two billionaires on that sub so they're not idiots and what's interesting the guy the writer for the Simpsons that was on with Neil said he would go again wow Anyway, just sometimes stories equate to everyday life. And I just thought it important because I was thinking about myself and my family and what I would do or not do.

And as I've said to you before, I'll never skydive out of an airplane. Hell no. even if that had a 100% record no way that's why amazed what tom cruise have you seen some of his stunts in the new mission impossible let alone what he's done before risk management so when I tell you all the stories in the market of how much money you can lose if you're too cute or if you joined the thundering hurried after something has already been a moonshot risk management it's simple You know, I get calls from people that are with outfits, companies that are, by the way, this is not an indictment, but they're fully invested vehicles.

In other words, you give your money somebody to manage, and it doesn't matter if we go into a bare market, they stay fully invested. And I get calls, and the people in bare markets, they're mad. and I try to say to them, well, why didn't you take your money out? Well, they told me, and I keep saying to myself, who's the steward of that money? The people you give it to or you. And it's not an indictment because a lot of Wall Street is fully invested. They tell you so. Risk management.

Know who has risk management and know who doesn't. And I have no problem with Wall Street that's fully invested. And I have to tell you, bull markets, bare markets, crasses, smashes, recessions, depressions, terrorist attacks, you name it. The S&P in 21 was at an all-time high. And is I think about 10% from the all-time high again. So they pretty much been right. The problem is in the midst of a bare market and your million is 700,000 or less. What do you do?

Do you really want to believe them that it's going to end? Because I got news for you in 08. Your million was a half million. Pretty much everything in 08 was down 50% plus at that time. Or how about 2000 to 03? Do you know the NASDAQ? NASDAQ 100 went down 80 from 2000 to 03? 80!

Or how about the people that were in financial funds in 08? that were neck deep in Bear Stearns, Merrill Lynch, Wachovia, Washington Mutual, Countrywide Financial. Risk management. That's where you all have to take reins. I just don't think it's good enough to say, well, they're fully invested and in the bare risk management. All it takes is a phone call, and that includes me, who manages me. money and consults with a lot of very wealthy and very big funds. Risk management.

We're praying for those people in the sub. Up next, market wrap, movers of the day, and all that stuff today. This is the one only Investors 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,

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Hello, hello. I'm Malcolm Gladwell, host of Smart Talks with IBM. I recently spoke with IBM's new director of research, Jake Mbata. We discussed his vision for the future of quantum computing. At IBM research, what we always do is answer what is the future of computing, whether it's coming up with new algorithms, coming up with better AI, coming up with quantum, or coming up with just how do different accelerators go together. It's our DNA to answer the question of what is the future. Isn't it a perfect problem for IBM because you kind of need to have a legacy of building stuff?

Yes. building actual physical machines. Yeah, it's why I came to IBM. I wanted the experience, the culture of building hard things that others have not done before. Where do you imagine we are in the timeline of this technology? There will come a point when it will mature. Right? My cell phone is a mature technology at this point.

How far are we from that point with Conta? By 2029, we'll build the first fault-tolerant quantum computer. That is one that can run a very, very large, large problem. To learn how IBM is building the future of computing, visit IBM.com slash quantum. This is Sarah Spain from Good Game with Sarah Spain, brought to you in part by Vital Farms. Let's talk eggs. Vital Farms pasture-raised eggs, to be exact. My favorites, the only kind I've got in my fridge. No joke.

And here's why. These aren't your average eggs. The hens live on open pastures with fresh air and sunshine all year long. They forage on local grasses and stretch their wings. They live in their best life. That care really shows in the taste. I love mine scrambled with a little butter or whipped up into a fancy frittata. And here's something most people don't know.

You can trace your eggs back to the farm they came from. Seriously, side of the carton, you'll find the farm name. Type it in at VitalFarms.com slash farm, and you'll get a 360-degree peak at the pasture. Plus, Vital Farms is a certified bee corporation, which means they're comming. committed to improving the lives of people, animals, and the planet through food. Eggs you could feel good about. So next time you're in the store, look for the black carton in the egg aisle, and visit Vital Farms.com to learn more.

Vital Farms. Good eggs. No shortcuts. 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, it's a little bit before the market closes. So we will get to it, the market wrapping a little bit. I wanted to do a little bit of an exercise with everybody because I have been doing my usual. I'm always looking back. I'm always studying. I'm always rereading Stan Weinstein's book, Secrets of Profiting and Bull and Bear Markets,

O'Neill's book, I got it, it right in front of me, the fourth edition, How to Make Money in Stocks, O'Neill's book with Gil Morales on How to Make Money Selling Stocks Short, which, by the way, is not easy and not for everyone. I'm always doing that, but I want to bring up today. So just as I speak, the NASDAQ's down 161, the NASDAQ 100s down 200. So the NASDAQ's coming in a little bit, started last week. Nothing untoward, nothing bad.

Without a doubt when the market gets NASDAQ, which by the way hit, let's see, 13-864 on Friday at the high, it's 1350. So not the end of the world. It's down less than 3%. but what happens is when the market comes in and it's extended and it was due and we told you there was a chance for this because of the extreme sentiment and how remember what we said 11% above the norm pullbacks are normal we'll see how it goes anyway the point being two things number one on this pullback whatever you want to call it we're going to be able to see pretenders the in-betweeners and the real strength. And what do we mean by that?

Well, we have said to you on this show, we think some of this artificial intelligence move, some of the names are a bunch of BS. Why? Because back in 99, when everything was dot-com, companies would change their name to dot com. Mutual funds would go from the technology fund to the internet fund, and we just see a lot of companies announcing artificial intelligence.

And I'm looking at the company and saying, really? Really? What the heck does that company have anything to do with artificial intelligence? So artificial intelligence stocks are pulling back. Some are getting hit harder than others, and basically what's getting hit hard the most are the ones that you would call them frothy suspect types. But on the other end, what we really want to do on these pullbacks, where's the big freaking strength?

So we're letting you know the exercise we do most now. As the NASDAQ pulls back, the leading index, what's not budging? What's budging just a little bit? what's holding up like a rock what's going higher now i will tell you really nothing is going higher over the last three days in technology it's been a rotation away from tech and it's they've been buying up what we call the stuff uh economically sensitive things uh the things that just haven't been doing much but caught a little fire june second but what we do now

on a daily basis. I'm not going to name names today. But I will tell you, one of the strong names today was down $18 early. 18 bucks. Keep in mind it's had a good run. And it's a higher price name.

It got downgraded by a boutique firm today. A boutique firm is a smaller firm. Let's just say it's not the Goldman Sachs. And it was down 18. and the NASDAQ as we finished just now it's 4 o'clock finished down 165 and 202 on the NASDAQ 100 just a few minutes ago when the NASDAQ was only down 100 still down 100 it was only down 4 on the down grade was down 18 and with a half hour ago only down 4 but the NASDAQ just dropped 65 points quickly it finished down 7 and change so what we look at on something like this and this sounds like it's micromanaging but it really isn't because it'll be inclusive of what happened yesterday what happens tomorrow and of course things can always change but if it's one of the strongest stocks in the market gets a downgrade is down 18 a week market

and really near the close is only down four and 50. finishes only down seven, what does that tell us? This still underlying strength. Now that doesn't mean it doesn't drop 20 tomorrow, but everything we do is based on evidence at hand. And what if the NASDAQ drops 200 tomorrow and it's flat? This is what we mean by isolating. And as we say to you,

it's easiest to isolate strength when the market is weak. And that goes for days, weeks, months, but mostly days and weeks when we're talking about the here and now, of course. And when we say weeks, we look at weekly charts also. We never used to, but O'Neill said, you got to look at weeklies, and he was right. So all we do right now, knowing the NASDAQ's the leading index, but also very stretched and extended.

Also, you had the Daily Mail, it's the United Kingdom newspaper reporting the Big Eight. You had a certain someone calling it the Magnificent Seven, and that's after moves. Remember what we tell you about the reporting of news? So all we do now is we sit and watch what's holding up. best what's holding lines of support what's holding moving averages what's not even budging why because if and it's always an if if the market stops going down where do you think your strength lies it's in the stuff that refused to go down

when things were weakest notwithstanding new earnings reports or some sort of news event or something like that so all we did today was watched. And I've already scanned a ton and I made one list of stocks that I think have already lost their traction. Let's call them the pretenders. They were rallying up some. They weren't really leaders. They were more or less being lifted up by the market. We're also writing down, what's breaking down already? Wait a minute, we've had three down days in the NASDAQ, and I got a bunch of NASDAQ stocks breaking down. So we're already on our exercises.

Up next, more of this, the final numbers, and lots more. I'm Gary. This is the one only investors edge. Hello, hello. I'm Malcolm Gladwell, host of the podcast Smart Talks with IBM. I recently sat down with IBM's chairman and CEO, Arvin Krishna. And I asked him, how can companies use AI to its fullest, to create smarter business.

My one advice to them, pick areas you can scale. Don't pick the shiny little toys on the side. For example. If anybody has more than 10% of what they had for customer service 10 years ago, they're already five years behind it. If anybody is not using AI to make their developers who write software 30% more productive today with the goal of being 70%

more productive. Yeah, wow. So we are not asking our clients to be the first experiment on it. We say, you can leverage what we did. We're happy to bring out all our learnings, including what needs to change in the process, because the biggest change

is not technology, is getting people to accept that there's a different way to do things. To listen to the full conversation, visit IBM.com slash smart talks. Ever feel like your bedroom's running out of space? Here's the good news. You don't have to sell your favorite things to make space. With IKEA bedroom storage solutions, dressers, wardroves, full closet systems, even storage boxes.

You can hold onto it all. Your vintage banties? Keep them. Those limited edition sneakers? They stay. And yes, there's room for your childhood teddy bear too. Need to organize a walking closet? The Pax wardrobe lets you customize shelves, rails, and compartments,

so every item has a home. Too many clothes and not enough drawers. The stork lint has six-door dresser is perfect for denim, sweaters, and everyday essentials. And if the kids are taking over your space, tro-fast storage boxes make sorting toys and art supplies easy and clean up fun. From primary suites to playrooms, IKEA has storage options that adapt to your life and help you keep what matters most. Don't sell anything you love.

Store it instead. Shop IKEA Bedroom Storage today at IKEA.us. slash bedroom storage. This is Sarah Spain from Good Game with Sarah Spain, brought to you in part by Vital Farms. Let's talk eggs. Vital Farms pasture raised eggs, to be exact. My favorites, the only kind I've got in my fridge. No joke.

And here's why. These aren't your average eggs. The hens live on open pastures with fresh air and sunshine all year long. They forage on local grasses and stretch their wings. They live in their best life. That care really shows in the taste. I love mine scrambled with a little butter or whipped up into a fancy for And here's something most people don't know. You can trace your eggs back to the farm they came from.

Seriously, side of the carton, you'll find the farm name. Type it in at VitalFarms.com slash farm, and you'll get a 360-degree peak at the pasture. Plus, Vital Farms is a certified bee corporation, which means they're committed to improving the lives of people, animals, and the planet through food. Eggs you could feel good about. So next time you're in the store, look for the black carton in the egg aisle, and visit VitalFarms.com to learn more. Vital Farms. Good eggs. No shortcuts. 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. By the way, I'm sitting here as I'm doing this show, and I still have this thing I wrote to myself as I was watching Neil's show with the gentleman who, one of the writers from the Simpsons who went on.

this sub and I'm just looking at three lines he said just the tube that sinks you control it with an Xbox game control and you're going down for two and a half hours it's dark by the way that two and a half hours is two two and a half miles and no other vessel to back it up you know I can do five hours of a show on two words risk management you know I can do five hours of a show on two words risk management You know, if everything holds up with my back, which, by the way, I'm doing much better. I have, since Thursday, I've had no sharp pains. I've had the start of the sharp pains. It's only when I sit and get up, which is the weirdest thing.

But I have to go to Dubai in, when am I going? End of August. One of my sons, you know, in Dubai, they have the, well, you can do it anywhere, but he wants to skydive over the palm there. and I'm like, you ain't going if that's what you want to do. I won't let him. And he's like, what? I said, no. If you want to go, you're not.

And he doesn't understand why. Well, I Googled it, and nobody's ever. I said, I don't care. I can do hours and hours and hours on risk management on so many things. But of course, we do markets here. And you know what the most emails I got in the last day? Do you know? Crypto again.

Do you know why? Crypto has had a strong three days. Do you know why? I guess there's been some, I guess Black Rock has been, is going to have some sort of exchange or, let me Google that. Black, Black Rock Crypto Exchange. Crypto Crickto Crickto Crackdown cleared the way for Videlity backed exchange. and Black Rock's Bitcoin ETF? Yeah.

Application for Bitcoin ETF. All it takes is three days of a move. We don't tell you what to do. Just be careful. That's all. And if any time closer to the present

about the two words risk management, it's started February of 21 when we told you the bubbles are popping. I have one screen that I haven't looked at in about two weeks, just so you know. I have one screen that I made up a long time ago. It's of SPACs and IPOs of the last few years. Let me just read to you some of the prices.

You ready? Now the SPACs, most of them come out at $10, I believe, and a lot of them went higher initially. let me give you prices of the SPACs 58 cents by the way that's BuzzFeed you can go look up with BuzzFeed is 73 cents 29 cents 23 cents 23 cents 18 cents 7 cents

a dollar 61 3.6 cents $2.94 cents 75 cents, 53 cents, 56 cents, 60 cents, $2.40 cents, $2 and 60 cents. Catching my drift. Now, when I go, that's the SPAC page. Here's my IPO page. You don't even want me to start there because there's some $30 deals that are down at a buck.

Risk management. And when these things were coming out, we begged you. We pleaded with you. We preached to you. Please go look at valuations. Please, please, please, please go look at valuations. By the way, here's some prices of IPOs. Today.

$1.75, $1.12, $0.16, $0.96. $91, $0.91. This came out in the last three years. $1.20. Here's one, $57.75. You know which one that is. That's Coinbase, which we told you was insane. $250 deal, the first week hit $4.29.

It's $57. Let's continue. $2.70, $67.67. Here's one. Well, I don't want to mention names. Let me see if I can mention one name here. Here's one that's 15 cents. It came out at $6.

E-Bet. E-sports, gambling, platform, competitive gaming. $6 to $15. Risk management. And we're saying this now. We're going to have more bubbles eventually. Just so you know, and all said and done, Jay Powell will be printing money again.

We're going to have son and daughter of bubbles because that's who he is. Please remember final outcomes of bubbles. By the way, I could have sat here for another 20 minutes going through $1.60. $2.88 since. Let's see. I'm just going to put up the $1.65 stock and see where that came public. $1.65, it was a $20 deal. Came public in June of 20. I'm not going to mention name, if you don't mind. Risk management. And I repeat, I can probably do a bunch of hours on this. Risk management. But today's market wrap brought to you by Investment-Models.com. That's Jim Rohraback. One of the great market timers. No great. areas with the man. You're in or out of the market with his proprietary indicators.

Go check it out. Investment-mottles.com. Well, they tried to rally it. Most of, they had the Dow flat, but in the last, I guess in the last half hour, because most everything else was weak. Let me see when they started hitting that. The Dow was 34097. At 2.35.

So it was up 40 at one time. But they really sank it into the club. down 102. Weakness today. You ready? Microsoft down four. Overdue. Salesforce.com down 7 after a good day yesterday. Goldman Sachs down 5 and change. That's weak. Intel down 2. And I've been getting a lot of emails on Intel because it's been strong and my only answer has been, have you seen their numbers? By greatness. They haven't been great lately. Maybe down the road they will. S&P down 12. NASDAQ 165, NASDAQ 100, 202. Transports were up three. Advanced declines, though, 1920 on New York, 1724 on the NASDAQ, and you know it was up today?

Housing, which continues to just slowly drift higher. And what have we been telling you to void? We told you to void yesterday until they're backing up trans. They were all up today. oils are up today transports are up today caterpillar well caterpillar in deal we told you

at already it turned up but better day for what I call the stuff we have one screen we call stuff better day and a decent amount of what we call economically sensitive industrial types had a good day things like heavy construction.

You ever hear Quanta Services PWR? Provide specialty contracting related services to the electric power, gas and oil pipeline industries. By the way, we are not telling you to buy cell shorter cover. We're just mentioning what's strong. Parker Hanifan, Deer had a good day. That's the type of stuff today. But what they brought in, believe it or not,

oh my goodness, Tesla was down 15 today. That was never, ever going to be down ever again. Netflix pulled back 10, Nvidia finished down 7 and change. Just a rough day for the stuff that's been working and what we'll do now, what's already in trouble. And we'll cross off our screen

until they're getting back in favor. Up next, more in these markets, and then we're gone. I'm Gary. This is the one only investors, Ed. Hello, hello, I'm Malcolm Gladwell, host of the podcast Smart Talks with IBM. I recently sat down with IBM's chairman and CEO, Arvin Krishna.

And I asked him, how can companies use AI to its fullest potential to create smarter business? My one advice to them, pick areas you can scale. Don't pick the shiny little toys on the side. For example. If anybody has more than 10% of what they had for customer service 10 years ago, they're already five years behind it. If anybody is not using AI to make their developers who write software 30% more productive today, with the goal of being 70% more productive. Yeah. Wow.

So we are not asking our clients to be the first experiment on it. We say, you can leverage what we did. We're happy to bring out all our learnings, including what needs to change in the process, because the biggest change is not technology. It's getting people to accept that there's a different way to do things. To listen to the full conversation, visit IBM.com slash smart talks. Never feel like your bedroom's running out of space? Here's the good news.

You don't have to sell your favorite things to make space. With IKEA bedroom storage solutions, dressers, wardrobes, full closet systems, even storage boxes, you can hold onto it all. Your vintage banties, keep them. Those limited edition sneakers, they stay. And yes, there's room for your childhood teddy bear too. Need to organize a walking closet? The Pax wardrobe lets you customize shelves, rails, and compartments, so every item has a home.

Too many clothes and not enough drawers! The Storklint has six-door dresser is perfect for denim, sweaters, and everyday essentials. And if the kids are taking over your space, TroFest storage boxes make sorting toys and art supplies easy, and clean up fun! From primary suites to playrooms, IKEA has storage options that adapt to your life and help you keep what matters most. Don't sell anything you love. stored instead. Shop IKEA bedroom storage today at IKEA.us slash bedroom storage. This is Sarah Spain from Good Game with Sarah Spain, brought to you in part by Vital Farms. Let's talk eggs. Vital Farms pasture raised eggs, to be exact. My favorites, the only kind I've

got in my fridge. No joke. And here's why. These aren't your average eggs. The hens live on open pastures with fresh air and sunshine all year long. They forage on local grasses and stretch their wings. They're living their best life. That care really shows. and the taste. I love mine scrambled with a little butter or whipped up into a fancy frittata. And here's something most people don't know. You could trace your eggs back to the farm they came from. Seriously. Side of the carton, you'll find the farm name. Type it in at vitalfarms.com slash farm, and you'll get a 360-degree peak at the pasture. Plus, Vital Farms is a certified B Corporation, which means they're committed to improving the lives of people, animals, and the

planet through food. Eggs you could feel good about. So next time you're in the store, look for the black carton in the egg aisle and visit vital farms.com to learn more. Vital Farms. Good eggs. No shortcuts. You're listening to. What are we waiting for? Well, what are you waiting for?

One, two, ready, go. Action! Investors Edge with Gary Culper. And well, once again, to Investors Edge. So pull back on all the things everybody's yelling and screaming about. Continues. And let's back up again and go through what we told you last week in the middle of the week. Number one, very stretched and extended those areas.

Number two, bullishness picked up mightily. And we have these indicators we follow. When they go to extremes, they tend to matter eventually. And sometimes it doesn't happen in a day. Sometimes it's later. But this one looks like it probably came, started sooner rather than later. You know what the Daily Mail is? It's the United Kingdom newspaper that, A, a lot of celebrity stuff and a lot of worldwide news, never talks about markets.

They put out one on the Big Eight, the Big Eight, the Big Eight in the market. After the Big Eight's been the Big Eight. And then a certain famous someone now calls it The Magnificent Seven. Why weren't they called the Magnificent Seven six months ago, reporting the news? And quite the quite, once things are reported, it's already happened. Just like right before June 2nd, we said a lot of people are now reporting that the broad market sucks. And it's only those seven.

And June 2nd, the broad market woke up. And actually the broad market had a much better day today that. what the indices would show. My job gets a little bit tougher now because things get a little bit murkier. Leadership tends to wiggle and waggle. But the other part of the equation, if the market does not just break loose and open up wide, and let's say we got a few more days to correct, Just say that. Assume the great stuff will stop going down and will buck the trend, will hold vital support areas that we can define because we can draw a line underneath

or moving averages. And when the market turns, we'll have an inkling. of what's still going to lead, and a pretty good idea what ain't going to lead. My biggest worry, and I'm always worried, you know that. The only company right now, well, there's two. Nvidia has announced what their sales are going to be next quarter, the coming quarter, gargantuan. Microsoft has announced that they believe, by 2020,

artificial intelligence going to add a hundred million bucks to their sales that's huge but other companies you're just hearing announcements not meet and those are the ones I think have to be watched more closely not to mention everything should be watched closely the worry is this thing is fleeting for the market. The internet, just so you know, was for a while in 99. It was going for a while, and then you had that climactic move. Now, this really just started May 25th. I consider AI Day, May 25th.

That was Nvidia Day. So we'll see. We'll keep watching for you and for us. We'll see how it plays out. And if wrong, we'll be wrong fast and we'll be wrong small. And if right, try to hold on for dear life. Because it's in the sitting that the big money's made. But again, I must tell you, we don't know how people like O'Neill did it on some of his huge winners.

We know he had cushion on the way up, but wow. And I will tell you, we've gone back on some of the biggest winners every year trying to figure out we've gone back 50 years before we were doing this what would we be able to hold throughout a move of a big leading

stock and I have to tell you it ain't easy especially if you get bare markets or just bad markets the last stock I was able to hold for three years was Visa and it was not easy but it wasn't one of those wild swinging stocks

that have to worry so much but we got enough cushion on the way up that the corrections which were not that great and believe me we had the urge to sell many times well finally we thought it was done and it turned out it pretty much was done it hasn't done anything for years

the only hope is we can If we're able to find stocks we can hold just for three years, a cycle, look out. But again, it ain't easy. And I know what people say you've got to hold long term. Okay, fine. Just make sure what you're holding long term is working long term. That's all. There's so many people like Warren Buffett that can do that.

Now, of course, if you like the S&P, Vanguard and whatever, you shouldn't even listen to anything I say. say, I'll only drive you crazy. And we understand that and respect that. And by the way, we've turned away many clients that do it that way because we say to them, first thing we say to those people, if we bought something on Monday and sold it on Tuesday with a dollar loss, how would you feel? And you can tell. You can tell.

But we work hard at it, and it's still not easy. but risk management. That's how we started the show. That's how we end the show. Two words. Risk management. Think about it. You'll have a great evening.

Drive carefully. And when you get home, do like we do. I think I'm on with Varnie and Company tomorrow, Fox Business Network at 10 a.m. Until them and same time tomorrow. I believe Adam's doing the show tomorrow, by the way. Have a great evening. Thanks for joining us.

Make sure you hug your children. Risk management. Bye, bye, all. 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. 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,

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