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Kaltbaum Capital Management President Gary Kaltbaum on how political and economic uncertainties will impact the market’s outlook.
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Alright well our first guest expects Washington to work some -- have a -- or not and avoid this fiscal cliff but inevitably he says taxes are gonna go out.
Joining us now.
That count on capital management president can't count -- with more on his outlook.
For unfortunately arrested -- thirteen -- you confident they're gonna figure this out hot.
-- but unfortunately.
Totally against all Americans looked up.
Whenever you raise taxes that it has never help the economy and it's always low isn't lowered revenues.
To the treasury so nothing -- gonna come out of it.
And you top that off with what's happened in the economy right now which is kind of -- an earnings and sales are not so great either I think 2013.
Could get rough.
You know you I get your notes I love them -- you sit that you think the correction has deep end.
Market totally oversold here interesting the other day I thought the market was oversold and -- a bounce and then.
The president went -- -- -- that do you think it didn't happen any time soon.
Right this second I think I started to see a lot of bearishness pick up late last week so just talking short term here.
Which is the trees not the fourth I think we can get a bounce and I think we're heading you know got the seasonal strength Thanksgiving in the get get the holidays in December.
-- but that's why I'm more worried about 2013.
If you dig deep into earnings and sales for the last quarter.
-- pretty much abysmal a lot of company sales would down 10%.
Year over year and that's just not gonna cut the mustard.
And I just don't see anything not change right now just remember.
With all the -- certainly still out there.
With the fights between Republicans and Democrats.
The hiring is still not gonna get going the potential the economy is never gonna be reached.
And that's why think it gets tougher -- going into the new year.
You know I know you've always been completely against the Fed and its little.
Money printing machine right so what happens -- -- president is still in place.
His his theories are still in place do you think we're gonna see it more liquidity injections into this market.
Well we've already heard that they gonna print forty billion dollars a month.
From here to what eternity I happen to think god they're gonna add more to that.
I think that that much of the -- look the Fed knows that they cannot affect the economy at this point in time.
But they also know they can affect the markets and if they can juice markets higher.
They think people feel wealthier and -- -- to spend more the problem is right now since September 13 on the last announcement.
All the market is simply ignored the Fed and that's the big worry I've always said for the last two years if the market ever stops ignoring.
Mister bubble Bernanke ought then the markets get in trouble and and we're seeing that right now but I have to tell you help could be on the way.
Because Europe Japan China us you name on there -- all printing money right now.
Right it's like the cool cool thing to do I guess so -- based -- everything we just said.
-- got a pretty money somewhere you can't be out of these equity markets altogether so where are you putting your money.
Well I would just help people to be very very low beta and defensive what I low -- basically means not -- told the big.
Momentum type growth stocks have been actually shelled absolutely trashed by would stay away there.
I would be looking like at the food and beverage and things like that.
But I got to tell you can't even be in utilities right now -- big huge Petraeus and utility stocks.
Over the last couple weeks which by the way is another worrisome sign going at the 2013.
I think he should have higher cash positions right now I just being a little bit more careful.
I know while -- any stock -- as a dividend right asking killed the quickly -- I know you like the housing market is that that it that the little sunlight in this gloom doom.
I actually think the housing markets in good shape but I guess I'm starting to not like how the housing stocks are acting to few too many names.
Evans of breaking down over the last few days and I think yet like DR port report earnings today was up early in the mix sold off quickly.
So I'm not so sure that's a port in the storm either but I think.
Longer term I think housing is a good shape they got inventories on the control enough profits of expanding not some little look that when the market does turn again.
Pay attention housing debt cap Baum author of the investors Ed's face severe this gap and I know it is way warmer down in Orlando than it is here.
Yes that is sorry to tell you that I take it take get -- and dig act.
