The Leaders Won’t Turn This Market Around Anytime Soon
Gary Kaltbaum is an investment advisor with over 18 years experience, and a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show “Investors Edge” on over 50 radio stations. Gary is also editor and publisher of “Gary Kaltbaum’s Trendwatch”… a weekly and monthly technical analysis research report for the institutional investor. If you would like a free trial to Gary’s Daily Market Alerts click here or call 888.484.8220 ext. 1.
Well, normal for the indices but not normal if you own AIG and others like that! Greetings from Northern Ireland. I wish I was back in the states at my desk instead of playing these beautiful golf courses. I am not kidding. These are unprecedented times and would rather be around.
Here are the characteristics of a bear market I told you would occur.
Most will not see it coming and will not call it a bear market until major averages drop over 20%… check! Remember, Financials topped all the way back in March of 07.
The groups that lead down will go down to unfathomable levels… check! Think financials again. In fact, I have both written and appeared on TV mentioning this. I can’t tell you how many nasty emails I received when I said that many financials would drop another 50% after their initial drop. Little did I know some would go bye-bye. Just remember what led down in the last bear. TECH TECH and more TECH were destroyed.
You would hear several thousand bottom calls… check!
You would hear blame coming from the excuse makers… check! Have you seen them blame the short sellers. Yes… it was the short sellers that did all this derivative nonsense! Just remember, blame comes from people who have missed the bear market or have caused the bear market.
During a bear market, you always get big selloff days! Check! And that is what we are seeing now. Big selloffs always occur to wash out the late sellers at the most inopportune time. Big selloffs always occur with the worst possible news and the most dire of talk. It is these panicky selloffs that most often lead to a good low. Don’t ask me why – I just know the characteristics.
I am chomping at the bit here. We are finally getting the coughing up that has occurred in every bear market on record. Yes, what we are seeing is unprecedented when it comes to the financial meltdown. But while everyone is now coughing up, I am looking for the characteristics of a turn in the market so I can buy while the world is panicking… just like I sold before everyone started selling. The only characteristic that has shoed up is the panicky selling. Hopefully, we can get a washout soon… as the news is now “horrific” causing many to now worry about our whole financial system. Yes, I am worried also. This is unprecedented and as I have told you, the people trying to solve the problems have been the causes of the problems… and that in itself scares me.
Hoping for better days ahead.
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