tv Worldwide Exchange CNBC November 4, 2021 5:00am-6:00am EDT
healthier is on-demand covid testing to help you return safely. even if it's still... a little awkward. how've you been? -i'm so good! ♪ this is what healthier looks like. ♪ it is 5:00 a.m. at cnbc and here is your top five at 5:00. can't stop, won't stop the market's win streak keeps on going. once again hitting new highs looks like we're moving higher again today. taper tantrum, hardly. investors reacting to the fed with a yawn as rates stay low for now. good tax news. words you don't hear together often as the latest draft of the biden spending bill could mean a huge tax cut for many northern homeowners john deere drawing a line in the sand with striking workers
saying it is done bargaining. breaking news on one of the biggest contracts ever by an american company is venture global as they sign a monster deal with china. a conversation with mike sable on that deal first it's thursday, november 4th, this is "worldwide exchange." good morning, good afternoon, or good evening and welcome from wherever in the world that you may be watching i'm brian sullivan, thanks for joining us we'll have more on the potential tax shocker coming up, one that could be good news for many high property tax areas in america, northeast, california, massachusetts, et cetera stocks keep running higher and higher looks like we could continue the streak today futures are up a little bit, not a lot. talking about the nasdaq, up 55
points, right now. dow we'll call it flat the dow is on a five-day win streak for the first time well, since only august. but it's a win streak nonetheless, maybe bigger. the dow also on pace for its fifth straight weekly win streak, trying to chase down the nine week streak going back to february of 2019 just something to tuck away back there. also want to look at -- get to take a look at, he said, bonds. the fed finally announcing what everybody has known for months that it will start the taper, lowering the treasury and mortgage backed bond buying later this month the ten year everybody saw it coming, it's not moving. but the one thing to watch is the 30 year, 20 year, 30 year rates went below 20, they call that an inverted yield curve sometimes could be a deep recession indicator, probably more interesting to watch than
the taper. worl worldwide, stocks in asia ending their day higher the nikkei leading the charge up nearly 1% but a good year for japanese stock market investors. let's look at the early trade in europe, as you can see mostly green across the board, certainly as well. not huge gains .3% and .4% but a lot of green globally right now. to this morning's top stories including john deere putting its foot down over contract talks with thousands of workers bertha coombs is here with that and more good morning. >> good morning. deere said it is done bargaining with striking workers after they rejected a second contract offer this week. the company says it will not raise its latest offer, calling it its best and final one. the six-year proposal would have givenworkers an immediate 10%
raise with raises in 2023 and 2025, along with $8,500 as a bonus. exxon mobile is warning that some of its assets may be at risk due to climate change according to "reuters," its board will test assets for potential climate impairments during an annual review. the report says directors will look at factors including future energy supply, regulation, government policies and green house gas restrictions with that review meantime, google is apparently pursuing a major cloud computing contract with the pentagon according to reports the head of the division has met with officials on the process of bidding for the agreement. the three-year contract would be split across multiple bidders and replace a 10 year, $10 billion contract terminated in july amid a battle over it between microsoft and amazon
so looks like maybe they're going to split the baby and give them all a chunk of it >> probably the best way to avoid, you know, companies complaining in your ear constantly or lawsuits, but still seems a little overly easy, i think, bertha. >> just not picking one of your favorite children, distributing it across them all >> that's right. marsha, jan, cindy, you all get an equal slice of pie. we'll see you in a few minutes. >> thank you. now back to the markets and your money even after the fed finally announced the worst kept secret in the world, the bond buying would be scaled back later this month. but does it matter for the stock market it hasn't so far stocks keep running higher, some feared it could slow down the economy eventually let's bring in lee baker do you think this will ultimately impact rates and/or
impact the overall american economy? >> i'm thinking no, i don't. at this point what we've got is what we've known for a long time markets don't like uncertainty this was a validation of what we expected to happen so when it comes out and says, listens, we're going to taper, stop buying so many bonds that's validation of what we thought so it's business as usual what i think we're going to have happen is this bumpy continuation of a recovery, it's messy, the supply chain issues have been sticky we're still getting better, still recovering slowly but just uneven unev unevenly it's going to continue to get through. >> yeah, i feel like sort of the, you know, stampede out of the lockdown pen as far as the consumer goes, you're not putting those cattle back in the
yard, are you, because americans, they are out. we saw mall spending is up from pre-pandemic levels. travel is surging. international is just reopening. bookings are up 800% from a week ago because november 8th, next monday we're seeing more intro so what do you think that's going to do for corporate earnings and then what do you think that's going to do for stocks, lee? >> so i think from a corporate earnings perspective, in some areas it's going to help corporate earnings there's still lots of dry powder out there amongst consumers, some of that ability to spend on certain items is going to take awhile because what we're seeing and hearing is there's some things we want to spend as we come into the christmas season that we won't be able to get our hands on but long-term, by long-term i mean the next couple of quarters, i think we'll see continued spending from the american consumer. the savings rate has come down just a tad but it's still above historical norms so i think that's going to give us the
ability to see some of the consumer spending over the next several months >> is there any part of the market that you like more than others right now or buy the whole thing and let it ride? >> buying cautiously, you know, we just have the comment around exxon. i think the energy sector still looks promising. again, clearly over the next several months for some of the same reasons we're flying more, driving more. personally i went to a conference in person for the first time yesterday and we're seeing more and more of that we have the news on the delta variant, now we're going to begin to be able to get vaccines to some of the younger children. i think that's going to continue to feed the narrative or the possibility that more and more people will begin to join the workforce, things will continue to go back to normal but we do need to be prepared for these bits of fits and starts along the way it won't be smooth but continued
improvement. >> certainly glad to see you back out before we let you go, what do you think is the biggest risk to the equity markets a wintersurge and consumers ge ju jumpy, i can't imagine lockdowns at all, especially given the election results of a couple of days ago, what might be the risk out there? >> i don't see any risk due to lockdown i really think we're -- and i'm keeping my fingers crossed here, i think we're likely to get past covid. i don't see a july reversal with the delta variant. that being said, who knows there could be a variant out there a very, very tumultuous, we have to deal with the early december deadline to get a longer term deal as related to the debt ceiling, that worries me a little bit but the next 6, 9 months there's not a lot out there that makes me think this things is going to get derailed.
>> good to hear. lee baker kicking off the show on a busy thursday appreciate you getting up early with us. >> great to be here. go braves! >> happy to have you on, lee thanks when we come back, a first on cnbc conversation with venture global founder mike sable on their breaking deal plus your morning's big money movers including shares of allbird soaring in their debut later on, formula one wants to go green-ish. a chat with pat simmons on why an entirely new kind of fuel may beheey titll t ko a we're back right after this. richness. hard you work to build it. now harder stadtfestungsbank works to make it grow more bigger. trust the egg in your nest to our clever money people. stadtfestungsbank. you rich. we make richer.
welcome back it is time for your big money movers, three key stock stories of the morning opin let's go stock one, roku, down about 7% right now. they posted a slow down in new accounts in the third quarter and guiding for lower than expected revenue this quarter, citing global supply chain issues on sales of new tv. stock two, qualcomm, looks like a good day posting record quarterly sales on surging demand of 5g phones, they've also taken extra steps to secure chip supplies, including having multiple vendors producing the
same type of chip. join the ceo here on cnbc at 9:00 a.m. stock three, allbirds, their stock yesterday rocketing up 90%. if you're hoping for more follow through gains like that, think again. the stock up just about 1% this morning. still on deck, the company formerly known as facebook firing the latest shot in its war with apple over fees, its plan to help creators sneak past some of those charges, coming up >> announcer: today's big number 11.2%. that was the increase in the average tax refund this year, according to updated data from the irs. the average refund was $2,775.
welcome back it is no secret that formula one is one of the most watched sports around the world and this year has been a heck of a season, by the way as global initiatives for sustainability come into focus the sport is finding ways to try to make sure it keeps up with the times. announcing they'll aim to be carbon neutral by the end of the year and net zero by 2030. achieving this in part to a new fuel let's bring in pat simmons pat is a massive f1 fan.
i'm pleased to have you on thanks for joining us. talk to us about this new fuel i know you've gone e 5 to e 10 and ethanol. this is not that you and your team are trying to develop an entirely new type of fuel from bio mass or just garbage, basically talk to us about it and where you stand right now. >> that's exactly right. this goes beyond the ethanol e-10, things like that it's part of what we announced in 2019. this isn't a new thing this is part of our, really, very ambitious sustainability strategy where, as you say, we want to be net zero carbon by 2030 so as part of that, we are introducing more ethanol into the fuels for next year. but the really exciting thing, as you said,is this fully sustainability synthetic fuel. and this is going to be a drop in fuel, it's the sort of fuel
you can use in any vehicle and, you know, the 2 billion cars that are out there at the moment, somehow we have to get them carbon neutral. and this is our attempt at showing how this could be done and you're working with ram co, obviously, the biggest oil producer in the world as a company goes and there's probably a lot of people watching this around the world rolling their eyes saying here's an oil and gas company trying to build this new fuel. but i think everybody sort of gets it, right is that -- we're a long way from 100% electric around the world that's going to take decades, if ever we have got to figure this out now. and formula one has led the world in product innovation that ends up on people's car that they buy at home. >> that's right. this is nothing new. formula one has led this sort of innovation, because racing is
about efficiency something we've always been into and i find it very refreshing, you know, both as an engineer and someone who's passionate about our environment, that a company like ramco is on board and helping us in this sustainability journey we're on. yes, they do produce oil but they have this ambition to really produce the synthetic fuels that really we feel are a way to the future. because as you say, the electric vehicle has a place in society and we're not -- in formula one we're not anti-electric in any way whatsoever we see the need for it, but equally there are many aspects of transport where you need a very, very high energy density what i mean by that is you need a lot of power and in a relatively light weight. it's not just in cars, it's in trains, heavy goods vehicles, it's in aircraft and this is the sort of technology that we're really trying to develop.
>> and ships as well you think about all the ships on the sea, the airplanes out there. at some point there may be an electric alternative we are decades away from that certainly. talk to us while i have you. this is one of the best seasons that f1 has ever had i'm thinking back to the '70s with the epic battles with jackie stuart. forget the '90s and 2000s. what does the car of the future look like? you talked about getting smaller, maybe a little bit lighter, where does this whole fuel push factor into that do you see a much smaller gas tank in the car? >> yeah. absolutely it's not just about having the sustainable fuel it's about efficiency as well. so while we will have a fuel that is effectively carbon neutral or very, very low carbon, we really want to use less of it as well
so we're pushing the efficiency and part of that is making cars smaller, lighter, making the engines more efficient all right in formula one we have the world's smallest, most efficient combustion engine by a long way around 52% of the energy is used to drive the car the cars you drive on the road are in the low 30s so we're a long way ahead of the marketplace at the moment. but we want to push that even further. >> yeah, and you got the 2022 car coming out you have overwheel winglets and things like that, without getting too technical, our u.s. audience is just waking up, having a cup of coffee what's the biggest difference to the car of next year versus the car of next year >> although we're having a fantastic season, we have some really close racing this year, we still have the drivers
complaining because the aerodynamics on the car is so intense, it's difficult to follow another car so it's difficult to race against a car. so with a nascar, for example, you see lots of draft and you see the cars very close together that's very difficult in formula one. so we've been on a now four-year research program really understanding the aerodynamics of the following car rather than just the performance of the leading car. and we produced a set of regulations for 2022, that we hope will allow the cars to race much closer together you could say we are having a great season, they are racing close together but we could be better in formula one we're never satisfied we want to do something better and i believe 2022 we have a better car for racing, entertainment and something our fans will really enjoy. >> like the return to the jim hall days, a little bit more ground effects, not a vacuum on
the bottom of the car like jim hall did, but push that car down, closer racing. look forward to this weekend's mexico grand prix. have a great weekend and an amazing season see you next year, pat thanks very much. >> thank you let's get a check on this morning's other top headlines outside of formula one including the latest on the governor's race in new jersey phillip mena is in new york with more on that the race does appear to be over for now, phillip >> that's right. although i was enjoying the f1 conversation i'm a mcclaren fan myself we have a winner in the surprisingly close new jersey governor's race. nbc news projects that incumbent phil murphy is the first democrat since 1977 to win re-election in the garden state. it was ayear ago that presiden biden won new jersey by 16 points and now a republican challenger nearly defeated the governor. the supreme court is taking up the most important gun rights
case in years. justices heard arguments to a case challenging new york's strict gun laws. residents can get a permit to carry but only if they show a need beyond a desire for self-defense gun rights advocates sued saying that violates the constitutional right to keep and bear arms. and mariah carey is coming to the defense of her holiday classic, after a bar in dallas banned all i want for christmas is you on its jukebox until december 1st and only allowed to play once a day. she appeared on twitter in armor. i think they're feeling heat because the bar's general manager wants to cut a deal. they'll end the ban if mariah carey goes in for a drink herself. i think they're basking in their
newly found fame. >> it's a compliment, i think, phillip -- somebody check on phillip, make sure he's okay i think the feed went down or a giant asteroid hit the planet and i'll see you too if you can hear me, i think it's a positive for mariah carey, it's like -- i heard we have phillip back -- the song is so good it gets played so much, they're looking to make it more special by limiting it to december 1st, not like they banned it at all phillip, if you're out there miss you. still on deck. cashing in chips mgm looking to unload a resort and a reminder, if you haven't already, follow our podcast on apple, spotify, other platforms. we're back right after this.
the taper is here, but the tantrum is not stocks look to keep running up as the dow tries to make it six weeks up in a row. holy l&g, the biggest ever contract with china signed just hours ago and the company who made it, the ceo first on cnbc interview here in moments. your morning rbi and the monster record run for stocks.
the ten names in the s&p that have doubled this year and calm down, no, tesla is not one of them. we're going to show the ten to you on this thursday, november 4th. and this is "worldwide exchange." welcome or welcome back and good thursday morning, everybody. i'm brian sullivan good to see you. here's how your money is starting the day stock futures are flat to slightly higher. flattish on the dow right now, but higher on the nasdaq we're seeing the nasdaq tech futures up .2% same with the s&p 500, the dow by the way despite being flat now is in the middle of a five-day win streak and in the middle of a five-week win streak if we end this week higher it's a six-week win streak for the dow and this is the longest one we've had since i think february
of '19 you can correct me if i'm wrong. going back to the pre-pandemic levels of 2019 with a nine-week win streak now to energy, and oil prices right now are a little bit higher on yesterday's close but they are still down from a few days ago wti crude 81.5 bucks today, opec and russia will meet to discuss their output targets. even though the meeting is virtually, it's one of the more important meetings of the year because oil prices have been surging over the last couple of months and president biden along with the leaders of japan and india, have been pleading with, almost begging, opec to raise production saying that opec's stinginess is the reason that americans are paying so much for gasoline. the problem is that opec, as a group, may not be able to raise production more than the planned 400,000 barrels per day. the reason is something we
talked about here on tuesday most opec members simply do not have the ability to raise oil output they are maxed out only saudi arabia and the uae likely have any spare capacity and remember under opec's current deal, the declaration of cooperation, as they call it, they have to have an equal stake in any moves or agree tolet others do more unless the saudis want to go rogue on opec, it will take the rest of opec plus to agree on allowing the saudis and/or the uae to pump more which is pretty unlikely according to my sources. the bottom line, the odds are good that today opec will stick to the script and add the planned 400,000 barrels a day more to the market in november and december something that will not be enough to bring prices down now that oil demand is back above 100 million barrels per day. that according to bp
we will be on the opec meeting later today and will bring you any key headlines, of course, as they happen. in the meantime, more from this morning's other top headlines, including the democrats' proposal to raise the state and local tax cap deduction known as s.a.l.t.. bertha coombs has more on that this is a big deal in new jersey, boston, your hometown or california, you have a high property tax. this could -- this could be a big tax cut for you. >> yeah. it's a big deal for a lot of folks. certainly it's -- it's been a shock over the last couple of years as we saw that change. house democrats have proposed, increasing the state and local tax cap from $10,000 to more than 72,000. that according to a draft of the plan released by the committee -- the rules committee. the new limit would apply through 2031, for the next ten
years. another proposal from democrats would see a five-year repeal through 2025 with a reinstatement of the cap from 2026 to 2031 party members from high tax states like new york, new jersey, and california, have been pushing for repeal of the cap arguing it hurts their states and residents the company formererly known as facebook has announced a plan to help creators bypass apple's app store fees yesterday mark zuckerberg said creators will soon be able to share custom web links directing their followers to pay them for subscriptions using facebook's native payment system. the apple app store does not allow apps to offer alternative payment options for purchasing digital goods but facebook gets around that potentially by having creators send the subscription links themselves.
and mgm resorts international has announced plans to sell the mirage in las vegas. in a letter, the ceo said the sale will be best for the long term success of the property and mgm resorts. the company reporting the third quarter swings to profit this year shares are higher in the pre-market, brian. vegas is just not as important as mccow these days. >> i think mccow is like three or four times larger on so many metrics. i think you can probably, if you were up in space see it, and vegas, by the way, from the sky. >> you know they're both the same in the metaverse. >> you know, we still got to -- i'm still going to call facebook facebook by the way, people ask me again,
i'll say it gwagain, people say what's the metaverse i don't know it has to be something like "ready player one" the book that became a movie. >> snow crash is what everybody talks about. >> i have just outed myself. we talked about "dune" earlier this week and now "ready player one" i think you get where i'm coming from thank you very much. yes, i have a comic book collection now to the fed as expected announcing yesterday it will unwind the massive bond buying program this month the move greeted with a yawn by investors who saw it coming. who didn't the fed did a good job of telegraphing it. jay powell insisting it's too early to think about rate hikes even with widespread inflation. >> we're aware that that language sounds -- it sounds a little out of touch with what's going on
we're not at maximum employment. when that is the case we'll look to see whether the inflation test is met. good chance it will be if you look at how inflation has evolved in the last year and a half >> more insight with megan green, senior fellow at the harvard kennedy school thank you for joining us i think it's important to remember, for those casually associated with the market, the taper is not a rate hike they're different things the taper could lead to the bond market raising rates on its own but it's not a rate hike the taper not moving stocks at all. why do you think that was? just because everybody and their mother and their mother's mother saw it coming? many. >> yeah. i think it's down to the fed's communication on this one. there was a lot of concern that we would have a repeat of 2013's taper tantrum, and that hasn't happened at all. stocks reached new highs after the announcement, bond yields
hardly bunched the fed didn't surprise anyone with its announcement that it will start tapering bond purchases by $15 billion a month. now they've committed to that for november and december. they haven't committed to that further on so they can reassess from january onward and accelerate it or decelerate it depending on what's happening with inflation, the labor market and growth i think, also, aside from the taper announcement there were a few interesting nuggets in yesterday's press conference i think jay powell kind of redefined how the fed is thinking about transitory. i think he sort of expanded it and said the fed ex pects inflation to be high eruntil the second or third quarter of next year if you had said six months ago that would count as transitory, people wouldn't have believed you, because transitory is supposed to be a couple of months but prices are going to be higher for much longer than that
and also jay announced how much we don't know about the labor market given what the economy has gone through, which underscores the fed's patience on rate hikes while the fed has announced tapering, it will take a lot longer, i think, for rates to go up. >> i liked what jay powell has h to say, i know people are laughing at us when we talk about this idea of transitory, however people say it, he put it in fed speak but you don't go sky diving without a backup chute, i'm told the fed to your point gave themselves an out. there's a long gap between december 5th when the meeting is, and the next one, which is the end of january so almost two months they could change their mind. >> yeah. that's right so they have plenty of flexibility into this taper plan, which i think is smart because as jay highlighted,
we've never been through this before in economic terms while the fed thinks the labor force participation rate has been a bit suppressed and we're not seeing people jump back into the workforce the way we thought they would they think it's because people are still worried about the virus or they have a cushion of savings as a result of stimulus measures and that should continue tomorrow. but they're not sure they want to see that happen first before they begin to commit to anything like rate hikes. yeah and the tampper is not the hike, the hike is what we care about and the hike is still a long way off. we appreciate you getting up early and coming on megan. thank you. have a great day. a first on cnbc conversation with venture global founder mike sable on their natural gas deal with china
signed by an american company but this one deal alone will double u.s. l&g with china i spoke with the ceo and asked him why now is the right time. >> thank you very much, brian. we're really excited about this transaction with china and you're right, it's been a long journey at the end of the day we compete in a commodity market space and by definition risk adjusted costs and price are what the customers are looking for. and so we've relentlessly focused on delivering the lowest possible delivered clean lng possible to the market and at the end of the day, that's what our good friends and our customers in china were looking for. and so -- >> can you give us an idea for
your -- >> go ahead. >> sorry to interrupt, mike. for our audience, you guys speak in millions and btus and unique terms in the natural gas and lng markets. can you give our audience an idea on the size and scope of this deal. >> absolutely. overall, over the term of the contract, is going to aggregate more than 80 million tons on a dollar basis that will end up being over $30 billion for the life of the contract it is 4 million tons, and you're right, in our industry we talk about kind of capacity of contract generally in terms of million tons per annum and so, this is a 4 million ton per annum contract for our lng facility, our second one, and on a shorter-term basis it's
approximately 2 million tons ou of our almost complete facility. but in terms of scale, it's north of -- going to end up being north of approximately $30 billion. >> wow i know that pricing tends to be a closely kept secret amongst you and your competitors you have a different model, tried to be a lower cost because you built it in a different way. you kind of started from a unique perspective, and that was your goal. can you give us an idea, given the demand for energy particularly lng how aggressive or not aggressive sinopec and china were in negotiating this deal >> sure. you're correct we ended up taking a very different approach to configuration of our facilities for a traditional, in our case, 10 million ton scale facility. typically today people will build two 5 million ton per annum trains
we have 18 trains for our facilities allowed to be built in a factory setting and take advantage of traditional henry ford-style manufacturing we think from the traditional approach for u.s. producers we've probably shaved 30% off the cost and relative to some of the international projects, you know, more than 50%, and in commodity markets as you know, people will compete aggressively over 1 or 2% differences in prices so we've been very disciplined over the years in trying to deliver value for customers and for shareholders hopefully selling more market share and delivering great returns for shareholders that way. >> i understand often in industries like you'res, there's competition obviously.
but some people say the pie is big enough for these american companies to all succeed is this kind of a sign, given what's going on in europe with their sort of reliance on russia, the uk, china, is this kind of a u.s. lng to the rescue and is the pie big enough for all the major lng players in the united states to survive and thrive >> yeah, no. the market as we were chatting about earlier is growing there's growing global middle class that has the same demands that the developing world has experienced with air conditioning and, you know, dishwashers and lights and water pumps, whatever the traditional demands are in the developed world, the developing world is going on the same path so demand is going to continue to grow and we think actually increase with more and more policy initiatives supporting re
renewable energies you need base load to cycle around that and gas, by far, is the best approach to that. >> now, sable added that another big benefit to the deal is that it could help cut coal use in china. something that has ha made them the world's biggest polluter on deck, your morning rbi lays out the 10 stocks that have doubled this year on the s&p 500. do you know who they are i think you don't. plus where there is opportunity even as stocks continue to break records. nasdaq futures up .4 we're back right after this. there is a landfill in the ocean. bring your visit to outdated montepisa! our sights will take your breathing away. our food will make your mouth leak. and our roads will make you break wind. translation is complex. transperfect makes it simple. our experts help your business succeed.
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when you hear the word healthy it always feels a little out of reach. but it's all about the baby steps. maybe it's a jump or eating something green. or taking mom to get that vaccine. ♪ healthier means bringing stuff to the folks ♪ ♪ that really need it. ♪ ♪ like help at 2 am or care that's right at home. ♪ ♪ believe it. ♪ ♪ and caring for them all means ♪ ♪ we're doing healthier right. ♪ ♪ so, let's do it all together people, ♪ ♪ 'cause this is what healthier looks like. ♪ today's rbi is about this monster record run for stocks, because it has been a great run for indexes but better for many single stocks and investors. there are now ten s&p 500 stocks
that have doubled this year. who are they don't worry, we've done the work for you. the ten names up 100% or more this year are, in order of their returns best to not worst but best to tenth. moderna, obviously devon energy bath and body works. marathon oil diamondback energy, another oil company. fortu net ford nucor. nvidia and gartner more than doubling jen rack came close. and four other stocks are up 90% or more this year. think about that wow. some big money makers out there. three of those names are in oil and gas. ford, popping on its ev plans, go figure. and no, as you noticed, tesla not on the list. tesla's had a great year, made people a lot of money, but it is not a double from the beginning
of the year. it's a double off its lows this year but not for the beginning clearly not a huge trend here because as cramer likes to say, it's a stock market but also a market of stocks that's been proven 100% right this year. so if you own any of those names we listed, celebrate take the family out tonight, sizzler, whatever, you have earned it. random but interesting and profitable let us stick with the markets and bring in kateryna siminetti. kateryna, great to have you back on i hope i made a point, which is it's easy to buy the s&p 500 or the triple q low cost strategy, i get it over time, probably going to work beautifully, not knocking it but if you were smart enough to listen to smart people like you and your team and others, you could have well outperformed the macro market this year. >> thank you for having me on again.
this is really challenging market, you're right and investors are confused because one side there's an excitement over the market they're bullish on the market, continue to buy in dips, but at the same time, it's very hard to ignore the levels that the market is at so the question is, what do we do and what we advocate to investors this is the perfect time to maybe not take the money off the table but to take some profits. you just described some amazing returns. and this is the time, in our opinion, to position portfolios for the next year. and pivot the portfolios towards the defensive plays. plays like health care, high quality tech, financials, materials, that are a lot of great buying opportunities in individual stocks and individual sectors. >> so what are we doing? you're saying now is the time, as we approach the end of the year to start rebalancing. we are going, then, kateryna
from what to what? >> so, brian, if you think about the appreciation that we saw this year, both in indexes and individual positions and in certain sectors,we have to think strategically. we're probably going to see really strong buying spending season through the holidays, right. because it's still fuelled by personal savings, it's fuelled by the earnings that investors received in this market. but when we wake up on january 1st, the challenges that we see in the market, like supply costs, the higher costs, supply chain interruptions, the labor shortages, all of these issues are going to lead to the earnings slow down so what do we like we like consumer staples we're a little bit bearish on consumer goods but we still like the services sectors like financials that are correlated to higher rates and federal reserve is very clear about the fact that they're
going to be tapering and eventually raising rates we can expect higher rates next year, we know that and health care, the aftermath of covid is going to be felt for years to come so a lot of pent up demand there, a lot of earnings potential. >> it was one of my -- i hate to do it, you're right. the fact that so many millions of americans have gained weight, diabetes going up, we have a lot of health care and mental health care issues that we're going to have to deal with for a long time, aren't we? >> absolutely. and the buying power and purchasing power of investors is no longer going to be supported by stimulus checks so we have to dig in and we have to prepare for more challenging market is it possible to make money in this market? absolutely we have to be strategic and prepare the portfolios for what's to come next year >> 2022 a new year literally and
figuratively from an investing perspective. kateryna simonetti, a pleasure to have you on the program have a great day thank you very much. that does it for us on "worldwide exchange. we will see you tomorrow morning same time, same bat channel. "squawk box" and the gang, they're xtne this is the new world of work. each day looks different than the last. but, whatever work becomes, the world works with servicenow. every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included.
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good morning let the tapering begin fed chair powell said the central bank will cut back its asset purchases starting this month. we'll tell you what it means for the market and your money. ford is the latest company to institute a vaccine mandate but it won't apply it to factory workers. details straight ahead as deere workers continue to
strike, the company said there's no more bargaining to be done. it's thursday, november 4th, 2021, and "squawk box" conbegins right now. good morning, welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen becky is off today nice to see you, joe. >> i'm here for you. >> i'm here for you. we got a lot going on. post fed taper, a little -- i don't know if it's a real taper. feels like it's the beginning of a -- it's like the mini taper. we're going to -- what are are you going say, joe >> i thought it was the same too. we're really ending something.
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