Gary Kaltbaum Sees a Possible 10% Pullback Ahead

By on April 26, 2012

Gary Kaltbaum - Kaltbaum Capital ManagementThe indomitable Gary Kaltbaum, owner of Kaltbaum Capital Management and host of a national radio show, was on Fox Business News on April 20th predicting a pullback in the stock market.

Kaltbaum said a 10% correction would be a good thing. He feels bullishness has picked up too much and doesn’t like all the IPOs doubling. If we get that kind of stiff correction, Kaltbaum would buy the market.

Kaltbaum stated he has looked at semiconductors closely, which look like they’re breaking down (technically). He added that the financials aren’t acting too well and the economic data coming out has been “iffy.”

If we break the last two weeks lows, we’re definitively going to get it (10% correction), according to Kaltbaum. He doesn’t believe it will be too painful.

When asked by Charles Payne what would prevent the correction from getting out of hand, Kaltbaum smilingly replied Ben Bernanke will get on T.V. and say he’s printing more money. All it takes is an announcement by the Fed or the ECB of more easing to get prices higher, according to Kaltbaum.

Kaltbaum characterized the current market as being in a “rolling correction.” Kaltbaum said the small cap indices were down about 5% along with the NYSE, Dow and S&P 500 being down a few percent.

Kaltbaum mentioned Under Armour and Herbalife as companies that were doing great; on the other end of the spectrum he sees names like Bank of America and other financials breaking down. Altera and Sandisk were also getting pummeled, as Kaltbaum put it. Kaltbaum considered “the tape” mixed.

Kaltbaum said we’re heading into the “sell in May” period and he hopes the correction is not worse.

The interview continued with Kaltbaum commenting on what he’s doing with his money, stocks he’s interested in (Visa, Under Armour, Coach), and what it takes to get on his buy list.

One Comment

  1. erik

    October 1, 2016 at 7:45 pm

    Gary,
    It was refreshing to hear your guest host on Sept. 29. He talked markets and investments, things investors need to hear. You have drifted so far into ranting and raving about anything that I usually just change the channel most of the time knowing I won’t miss much. But I actually listened to the whole show on Thursday. Your sponsors should note that.

    What audience do you want to reach? People with substantial assets who might benefit from your advice? We don’t want to hear character assassinations and conspiracy theories. I don’t see how you can go from this smart analyst one moment to raving whacko. One result is that I won’t mention your name to any of my investor friends. I don’t want to be associated or with you or with the AM station in Portland that broadcasts your show.

    Bring us a real Investors Edge. You can have a separate show for Gary’s ranting and raving. I am trying to be as constructive as possible. If you disagree with these thoughts, that’s OK. Don’t attack me or others.
    Erik

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