Investor's Edge with Gary Kaltbaum - THE GOVERNMENT TAKEOVER [05.30.2024]
Episode Date: May 30, 2024https://garykaltbaum.com/...
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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 Cultbaum.
And welcome once again to Investors Edge.
I'm Gary Colbom, your host.
A thanks of being with us today.
Glad you're here, ladies and gentlemen.
Happy that you are listening.
It's Thursday.
It's May 30th.
It's 2024.
And you know it is not hyperbole.
Notice the big word out of your handsome and buffed host.
Hyperbole to say, oh, we have a lot to cover.
and we're going to try and get through it in one hour.
But first, if you do not get this radio show in your city,
we'll post it at garyk.com,
we'll post it on our Twitter feed, which is now X.
And if you don't follow us on X, you should.
And if you want to email me, just be nice.
Why? Because we'll be nice back.
It's okay to disagree 100%, but do it nicely.
It's cool.
I have people email me that completely 1,000% disagree
with everything I'm about.
You know what I say?
God bless.
Hope life it treats you well.
Anyway, this is serious talk about everything that affects you and your job and your industry and the markets and the economy and everything else under the sun.
And today, A, we're going to start out big time markets and B, a little bit later.
Oh, we'll be whining and complaining because the takeover of our lives.
With rules, regulations, fees, fines, mandates, taxes, dictates, and giveaways, continues with the man in the White House that professed his whole life to be a moderate, but it is way left of Bernie Sanders. Wait to you hear the latest proposal.
Remember, we are nothing more than a gargantuan slush fund to this man.
and it does not matter how much we send them in taxes,
he will run up debt and deficits beyond the beyond
that we never, ever, ever, ever could imagine
in order to solidify power.
That's what a socialist is.
That's what a Marxist is.
He defines it.
But I hear very often from people in the market.
Notice the segue,
that 50% of a stock's movement is
based on the sector.
I've always disagreed.
I've heard people say 60% of a stock's movement is based on the sector.
I've always disagreed.
I've heard people say 75% of a stock's movement is the sector.
I've always disagreed.
I think it's in the 80 to 90%.
and how do I know this?
I'm not too sure there are many people out there
that have actually spent thousands of hours
going through past bull and bare markets,
leading stocks in leading groups,
and in the recognition with no bias whatsoever,
no bias that
nearer to 100% of a stock's movement is in a sector that is moving in that direction.
Yes, there are definitively outliers.
40 stocks in a sector and one or two are very weak, 38 are in a big bull market.
of course that's why it's not a hundred but for the most part our studies have showed that
and why are we bringing that up today well salesforce dot com i don't know if you know this but this is a
stock that is in the Dow i don't know if you know this this is one of the famous uh cloud
based software company contact customer relation management
with about 18, 36, let's call it about 35 billion in revenue, run by a gentleman named Mark Benioff, very brilliant guy,
and yet it's down 19.88% today. $54 to $217,218, as I speak, as the market's closing in one minute.
date for the record, $54.54 times 6.78 is equivalent to 365 down points in the Dow today.
And why do I bring it up? It is very simple. It is very simple why I bring it up. In recent weeks, if not longer,
And yes, it's longer.
We have been harping on many smaller to mid-sized software stocks that were already in their own private bare markets.
We have harped on it.
We have called out their names.
But we have also told you, boy, there's still some strong names out there.
there in software land.
Well, whatever was strong
ain't strong anymore
because of Salesforce.com.
So you have a group that's already under some pressure.
You already have a group that's already under some pressure.
And then what's, I would say,
top three to five important software companies implodes.
Well, I have to tell you, full disclosure, since we're bringing it up.
We came in today owning CrowdStrike.
When we saw what Salesforce.com did, immediately we were on notice today.
And as it was down $7 today, we're out.
of CrowdStrike, it finished down $34 today.
We owned, full disclosure, Microsoft.
We sold that near the, in the first half hour.
Finished down $14.5 of dollars today.
These were the two stalwarts of the software.
And then what are about the ones that are not such
stalwarts are you ready anybody here of service now simple n o w down 87 bucks today to
643 breaking six months of trading to the downside volume 361 percent adobe down 31 today
into it down 35 palo out
Network's down 13. I can do others. HubSpot, down 42. I missed that one. And HubSpot, there's been rumors of a buyout. It's called the cousin stock theory. And I got news for you. In software today, the cousin stock theory came home to roost. And at the close of the day, the IG.
which is the software North American technology software index, a bludgeoning today.
Big, icky break to the downside today.
Which means the whole software group is done?
What does that mean for technology?
By the way, Oracle down 6%.
SAP down 6%.
I can go on, but I gather you get
the point.
Software stocks
trashed.
We don't know how far it goes, how long it lasts, but we
deal in real time. And dang,
in real time today,
they said night night. One of the
stronger names that you probably have never heard of,
Newtonics,
NTNX
Smaller name
Down 23% today
On their earnings
Breaking down today
Software
So just letting you know
Software
Persona non grata
In our eyes
At this juncture
Today
Catching my drift
And we hate the start
With bad news
But
Gotta tell you like it is
is, which takes me to the other part of the equation I want to bring up.
And this is a complaint about the Dow.
And we've done this before, but we think it's of note even more today.
That'll be up next.
Other areas of the market, movers of the day, and oh boy, oh boy, Joe Biden's going to hear from us.
I'm Gary. This is the one only investor's edge.
Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show in
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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, 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.
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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. Okay. This goes for whether it
It's the upside or whether it's the downside.
So you got Salesforce.com today, as I stated.
Drop today, what I say it dropped at the close today,
it would drop salesforce.com
19.73% today on 12 times average volume.
It dropped $53.58 by the close times 6.3.
78, that's the Dow divisor, it dropped 363 Dow points on 19.73% drop.
If Intel dropped 19.73%, not making this up, it would have been down 40 Dow points.
Two stocks, same percentage moves, but to the Dow index, one is 3, 3%.
160 Dow points, the other's 40. And that's because the Dow is price weighted. So a $30 stock like Intel versus a stock that was 270 before the day, that $270 stock has a ninefold weighting, ninefold on Intel. So why even have Intel in the Dow?
Why not have 30 stocks that are all near around the same price?
It's about as stupid as can be.
And by the way, Salesforce.com is not even the highest price stock.
The highest price stock is United Health.
And it's 16 times of import than Intel.
In other words, it's not in other words.
it's not in other words
it's so weird to know that the Dow has this going on
if Intel
went from 30 and went to zero
bankrupt bankrupt
it would be 200 Dow points
in order for United Health to lose 200
Dow points, it would be dropping about 7%.
6.5% talk about ridiculous weightings on the most quoted index in the world.
And we're saying this up or down.
Today it just happened to be down with Salesforce.com.
Just letting you know.
It's so weird.
And you would think some smarter people at Dow Jones would say,
this does not make any sense whatsoever.
But no.
Don't I make sense?
Unbelievable.
16 times of importance, United Health versus Intel.
Intel can double tomorrow
and it'll be 200 Dow points
United Health doubles tomorrow
would be 3,200 Dow points
Screwy, huh?
What else happened today?
Late in the day,
they kind of rated a bunch of the AI also.
You know, Nvidia with a big ramp up
in the last few days off of earnings,
I can tell you it started at about, it was already down, but then, and beats the hell out of me, why, at around 320, for the next 20 minutes, it dropped 30 bucks.
So it's given back a decent amount, and that's the strongest stock out there.
so they were really coming after some things today.
News driven somewhat.
We'll see what tomorrow brings.
But dang is all I got to say on the movement out there.
Today, in software, in semis, not all, in the AI space,
and in the head honcho, top dog big cheese of NVIDIA.
we'll see what Tamar brings and that's that.
Otherwise, you bounce today in the worst areas.
You know how we've been telling you?
Transports. Financials have been weaker.
The economically sensitive areas have been weaker.
The housing stocks have been weaker.
They were all green today.
With the Dow down 330, remember what we said.
Salesforce.com was 360 Dow points.
So really, you take out Salesforce.com, the Dow's up 30.
By the way, add in Microsoft.
Microsoft is the other software stock,
and Microsoft on the day finished down 14.5.
So let's add 68. 68 times 6.78.
461 Dow points take out the two software stocks,
And the Dow was up 1.30 because what did they do? They bounced Home Depot. Why did they do that? Because interest rates came down a little bit today. Interest rates have been ticking up. Definable, a definable correlation still, not 100%, but it's up there. So my screen of boring is mostly green today.
while my screen of software, semis, AI, and all that stuff, younged.
With the Dow down 330 and the NASDAQ down 183 and the NASDAQ 100 down 198, advanced declines were 2811 on the New York and 2317 on the NASDAQ.
Why?
They finally went after some bigans.
There's your story of today.
and a big wow, because Salesforce.com is not a flyby night.
This is a well-followed, well-respected company that got juiced.
Up next, what else do we got for you?
Thanks for being here.
This is the one-only investor's edge.
Hello, hello.
I'm Malcolm Gladwell, host of Smart Talks with IBM.
I recently spoke with IBM's new director of research, Jake Gambata.
We discussed his vision for the...
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.
My cell phone is a mature technology at this point.
How far are we from that point with Conton?
By 2029, we'll build the first Volt-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.
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Look for in-store tags to earn on eligible items from Celsius, Body Armor,
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We're listening to America is talking.
Investors Edge.
He's got to be pleased with that.
The crowd is just on his feet here.
He's a Cinderella boy.
With Gary Colbomb.
It comes highly recommended.
You're going to feel better if you talk to him.
And by the way, in the aftermarket, and I got to tell you, we get some holy crap moments in the market.
There's one called MongoDB, symbol MDB.
Stock was 50, software, was 510 bucks in February, closed today at 310.
Yeah, think long term.
It's $234 in the aftermarket.
Wow.
Dell has been a very strong stock as of recent.
I've been suspect of it.
It's been going along because of AI.
But sales growth, minus 20, minus 13, minus 10, minus 11.
Remember, we've been telling you about some of these tech stocks with, how is this thing going up?
Closed at 170, I got it at 146 in the aftermarket.
And that's not helping the cause, I can promise you that.
So just some roughness going on in tech land.
And we'll see what tomorrow brings.
Anything else I got fee in the aftermarket that matters?
Well, Nordstrom's is down.
Whoopi do.
Now, on the upside today, just to let you know,
Burlington up 35 bucks to 2.35.
on good numbers.
Best Buy up 13% on crappy numbers.
I'm always, wait a minute,
Best Buy reported sales down 7%
and the stocks up 13%.
Huh?
I always pull the huh.
Eulet Packard.
Damn, new yearly highs.
On a 1% drop in sales.
That was up 16%.
Again, some things are just, you know,
hey, what can I tell?
you. But just letting you know, we love technology. They smoked the living crap out of technology
stocks today. And especially the software, we said full disclosure, especially when we got to talk
about it. We had two names coming in. We sold them both early. Why? Sector. Sector. And Microsoft,
when they're getting to Microsoft, you really got to wake up. So just letting you. Just let you.
know, and we're not telling you to buy, sell, short, or cover. We're telling you what we
think and every now and then we tell you what we do. We're very careful about what we do because
we know if you listen on Monday, but you don't listen on Tuesday, and just so you know how we work,
we are flexible people here. We're not, oh, just buy and hold forever. Don't worry, everything's
okay. We believe you can buy and hold, but just make sure what you're buying and holding is
working. Anyway, boy, that MDB, psh. After a
done with the radio will uh i got another one v e eva systems that's gone from 236 to
194 i got it 180 in the aftermarket happy days oh by the way another software stock so i don't know
what's going on in software land but uh that ain't no hill for a climber kids but the broad
market had a better day today. We'll give you that. The problem with the broad market has not
been acting well and it's more of a bounce than anything. And I'm not sure. I'm going to give
it too much credence except to say if the 10-year yield comes down, it's probably some good news.
They bounce the housing stocks because interest rates came down. They bounce this, that, and the other
thing because interest rates came down today. And that's a little bit of the story of today.
and man, I need a nap.
That's all I got to say.
Quite the day.
A lot of jello moving on the plate.
And just so you know, we hate selling.
That may sound crazy, but we hate selling.
Because if we're selling, we're saying something's up.
Our goal is to buy a launching pad and just own it.
Let it keep behaving and behaving and behaving.
but when you have markets like this, very, very tough.
It is a rare stock that just, you remember the S&P?
It was rare that we were able to buy the S&P in November and not sell it to April.
Yippee.
What else today?
Gold bounced a little bit.
No big deal.
Oils up a little bit.
The big story again today is they bounced the transports.
They've been very weak.
They bounced the housing, been very weak.
They bounce the financials, not very weak, but weaker.
They bounce the economically sensitive names.
They've been weaker.
And they trashed the living paduities out of the tech software and all that crap.
And I must tell you, they almost left no stone unturned, including the almighty Nvidia.
Down 52, including the aftermarket today.
It was down 42 today.
It's now down 52.
That can change, of course.
Gary, how does that happen?
Well, it just moved up 150 points.
Now, if it goes 150 and down 50,
and then it up another 150 and down 50,
we'll take that as long as they want to keep doing that.
But it ain't that easy.
and now
ladies and gentlemen
we are so worried about
who's run in the country
I have coined the phrase
it's like the Ebola virus versus the bubonic plague
at this juncture we don't know
if Donald Trump wins the election
what he's going to do because he's been out for four years
we know what he did for four years we know what we've
complimented him on and we know
we've complained about, but we certainly know what's going on with Joe Biden, who is making
Bernie Sanders look like Ronald Reagan.
And I say that without any sarcasm whatsoever.
I say that without any sarcasm whatsoever.
The other day, I did throw out some sarcasm.
I said to you on this show, because he's already taken $160 billion of our tax dollars to relieve student loans.
And he acts like he's doing it.
But he don't have any money.
He's not reaching in his pocket.
It's us.
And flippantly, I said, what is he going to do, mortgages next?
He is now calling on Congress, this Marxist control freak, to give first.
to give first-time home buyers a $10,000 tax credit.
He's telling the, he wants the taxpayer to give $10,000 to first-time home buyers.
What the hell country are we living in?
You know, we've never used the word communism.
But you know what communism is economically?
It's take away from and give to others to make everybody equal.
And I'm not saying he's going to do that, but he's certainly trying to go that way.
And what does he do?
He uses us as his big, gigantic slush fund.
And that $160 billion already relieved because of us, it's become a footnote because he's running $2 to $3 trillion a year deficits.
depending on which Rusty Abacus use.
Imagine a $10,000 tax credit out of our hide.
You know we've already got a $7,500 tax credit for electric vehicles.
Why is that?
You know, electric vehicles are very expensive.
That means the wealthy are getting a $7,500 tax credit from us.
But as we've stated to you,
the reason they're able to get away with it.
By the way,
and we're not saying
Republican Democrat on this.
We're just saying this guy is worse than them all.
Where does it end?
I was mocking when I said mortgages.
And now he's doing that.
What's next?
Credit cards.
Up next, what else?
I'm Gary.
This is the one only investor's edge.
Hello, hello.
I'm Malcolm Gladwell.
host of Smart Talks with IBM.
I recently spoke with IBM's new director of research, Jake M. Bata.
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?
Yeah.
My cell phone is a mature technology at this point.
How far are we from that point with quantum?
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.
Amazon Hub Delivery wants to partner with your business.
Help your business. Help your neighbors.
Discover a new stream of income for your business
when you partner with Amazon Hub Delivery.
You and your team will deliver Amazon packages
to customers in your neighborhood
on a schedule that works for you,
and you'll be paid for every package you deliver.
Getting started is easy.
There's no delivery experience required,
no long-term contracts,
and you receive weekly direct deposits.
Earn more. Gain exposure for your business.
Apply today at Amazon.com slash hub delivery.
That's Amazon.com slash HUB delivery.
Know a local business that would make a great partner,
a local coffee shop owner, florist, automotive shop, dry cleaner, you name it.
Refer a business today and earn $500 when they successfully join the program.
Visit Amazon.com slash hub delivery to learn more or refer a partner.
That's Amazon.com slash HUB delivery.
Now looking for hub partners in your area.
Hey, it's Ryan Sechrest for Albertsons and Safeway.
It's stockup savings time now through March 31st.
Spring in for storewide deals and earn four times a point.
Look for in-store tags to earn on eligible items from Celsius, Body Armor,
ORAIDA, Silk, Capri-San, Bavarian Meets, and Charmin.
Then clip the offer in the app for automatic event-long savings.
Stack up those rewards to save even more.
Enjoy savings on top of savings when you shop in-store or online for easy drive-up and go pick-up or delivery.
Restrictions apply.
See website for full terms and conditions.
You're listening to...
What are we waiting for?
Well, what are you waiting for?
One, two, ready.
And welcome once again to Investors Edge. You know, I've never watched The View ever.
But every now and then, I get to see like a video from The View. And the reason I don't watch the View, because I don't give a crap about other people's opinions.
On either side of the aisle, I come up with my own opinions. And I can. And I can.
can promise you, I abhor those that kiss the ring of Trump 1,000% regardless of how bad he is or good he is,
and the same goes the other way. I'm straight down, which means I don't care what party they're in.
I left the parties a long time ago. They don't give a crap about you until about six months before an election.
but I saw a video of Joe Biden's wife
who actually can put out a sentence without going
but you know what she said
Trump
this is good versus evil
I'm thinking to myself shouldn't he save the word evil
for like Hamas
but I digress
and then she said
we won't have a country
destroyed democracy.
And I'm thinking to myself,
is she talking about her husband
running two to three trillion a year deficits?
Democracy.
Handing out our taxpayer dollars on people
who signed a contract to take out loans.
Democracy.
Interesting.
I may have to teach her a thing or two
about democracy.
And that is you don't run
$2 to $3 trillion year deficits
and lie about it.
You don't give away
people's tax dollars
in order to buy votes.
There's your freaking
democracy, Mrs. Biden.
I guess they call her a doctor.
Is she a doctor?
Some people complain she's not.
Either way, that's Joe Biden
today.
Marxist socialist control freak in chief
using you and your tax dollars to do as bidding
and remember what we've told you
the reason they get away with it
is because when you go to your bank account today
if you would saw a debit of $200
and next to it said student loan relief
and you said wait a minute I don't have student loan
Oh, but you're relieving other peoples.
He could not get away with it.
But he knows it's just going to go into that debt column,
the one that he is making Trump look like a piker,
who made Obama look like a piker,
who made Bush look like a piker,
on massive, uncontrollable, unaccountable,
spending in order to solidify power.
Joe Biden, he needs to lose this election.
And I say that, knowing the alternative.
And notice in that commentary, I didn't even mention what he's done with our border that he is destroyed
to the point where we have no idea how many bad people are in this country ready to murder and murder.
maim. Did you read about the one where they found two people in a car on one of our military
bases and they're thinking they may have been casing it? They came across the border. And next,
the judges, a Chicago judge. And it's not just Chicago. It's in these other areas too.
there is a video of a woman
taken a police car away from him
and running him over
which one would think is called
attempted murder
let out psychological
all's good
not making this up
which takes me to the mayor of Boston
and I wish I was making this up
I really do.
I'm not.
The mayor of Boston
has a list of
crimes that she said should not be
prosecuted.
Trespassing,
shoplifting, and it doesn't
have a number.
Larceny, disorderly conduct,
disturbing the peace, receiving
stolen property, minor
driving offenses. Okay, I got that one.
Breaking and
entering.
should not be arrested for
wanton or malicious
destruction of property
threats
no
minor in possession of alcohol
I'm okay with that
drug possession
drug possession with intent to distribute
leave them alone
a standalone resisting arrest charge
you mean you're going to resist arrest
oh don't worry
and if the criminal knows that he can resist arrest
and doesn't have to worry,
and the shoplifter doesn't have to worry,
how many stores are going to be shut in Boston?
And who the hell is electing this mayor
that will destroy this city single-handedly?
The mayor of Boston.
I'm not even going to name the person.
Hey, go to downtown Boston.
You see that Lulu Lemon?
Go steal a few thousand and just walk out.
You're good.
What have I said about these schmuck politicians until it affects them?
I don't even know if until it affects them.
They hate you.
They disrespect you.
They treat the criminals better than lawful.
citizens
and it's going on and on in other cities
I don't know where it's going to end
and ladies and gentlemen
you better be reading up on all this
it's getting worse
hey have a great week
it's not even weekend have a great evening drive
carefully when you get home do like we do
make sure you hug your family make sure you hug your children
they will feel better you will feel better
I'll be on with Cavuto tomorrow at noon Fox Business
Network whining about something else
hopefully tomorrow a better day.
Peace out all. Stay well, be well.
Good night.
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.
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