Who Is Running the Financial Markets?
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.
Just a few things on my mind:
Just who is running the financial markets? Is it the regulators and overseers
or is it the Goldmans, Merrills…et al? Why do I ask? I just read that the FASB…in
their infinite lack of wisdom just decided to delay implementation of “RULE 157”
for one year. To the best of my knowledge, this rule would have impacted
financial companies. Specifically RULE 157 establishes disclosure requirements
that reveal how the fair value estimates of “stuff” were produced. Are you
kidding me? We all now know that there were hundreds of billions of “stuff”
valued at fantasy prices. What do the police decide? Nah…let’s not make these
imbeciles disclose “real market” value of the stuff. What a joke? What a laugh?
And of course, no one says anything because…Paulson is from Goldman…Rubin is
from Goldman and now runs Citi…and…well just run the names down the food
chain. Ladies and gentlemen, our financial markets are becoming a joke. Nice job
FASB!
Stephon Marbury is paid $21 million/year…not including endorsements…TO
PLAY BASKETBALL! I repeat…PLAY BASKETBALL! He is not a brave and courageous
soldier, fireman or policeman. He does not teach. HE PLAYS BASKETBALL! But he
cannot even do that…and now he his blackmailing the coach. It is bad enough I
have to watch the Celtics still undefeated this season…I also have to watch
the continued implosion of the Marbury/Thomas-led Knicks. Where is Reed,
Frazier, Bradley and Debusschere when you need them?
So…Hillary Clinton says she had no idea that a question was planted.
Hillary, please answer how you just happened to pick this person out of the
audience to ask the question. Another political laugher.
President Huckabee? Just that last name has Saturday Night Live frothing for
it.
Warren Buffett is saying he does not pay enough taxes. Warren, no one is
stopping you.
On Tuesday, the market was down 320 DOW points to add to the recent misery in
the stock market. Blame was put on several more news items:
Bankamerica with another $3 billion loss.
Several companies announcing they had to shore up their money market funds.
Continued bad news out of the HOUSING INDUSTRY including bankruptcy of a
couple of private companies.
OK…did I get your attention? The market was up 320 points…not down 320
points. I just wanted to point out you were given reasons for the move
up…including news out of Wal Mart and news out of Goldman. You just need to
know that you will always get reasons for something…but I cannot go along with
these reasons. Why?
Wal-Mart. This is a stock that is flat from February of 1999. It is also a
company with very slow growth. Yes…they beat by 2 cents…but that was only
after they lowered the number in the past 60 days. Their growth is in the single
digits…and guidance was blah!
Goldman said no more losses for them…as rumors circulated that there would
be. Goldman is a trading firm…now, more than ever. They have been successful
at hedging the problems that so many others were caught up in. I give them the
highest of kudos for the job well done…but that is just Goldman.
The market was up FOR ONE REASON…and ONE REASON ONLY! The DOW was down 1200
points in just the past few weeks…the FINANCIALS had crashed…RETAIL had
crashed…and the NASDAQ/NDX dropped 9-11% respectively in the previous 4 days.
Please do not let one day be your guide…or you will be run over. I beg of you
to look for more confirmation that we have indeed seen the lows. One day will
not do it for me. I am just fine if the market wants to skyrocket from
here…but by my discipline, starting Friday, I will be looking for a high
volume follow-through day off this recent low to tell me there is at least a
chance that this rally can last. ONE DAY UP…especially after the recent
cheesing we have seen…means nothing to me.
Gary Kaltbaum