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tv   Making Money With Charles Payne  FOX Business  August 4, 2022 2:00pm-3:00pm EDT

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that is caution we're seeing reflected in numbers. dow off 83 points, off session lows. in technology we're seeing strength and nasdaq composite trading higher by 30 points. of course this has been a volatile market this week with ups and downs and watching geopolitical issues and events as well. markets are cautious. people just didn't sell in may and go away. charles payne to you. charles: we had a huge july, jackie. under the surface something big is brewing. i can't wait to talk about it. the nasdaq might be in a bull market before the show is over. i'm charles payne this is "making money." breaking right now, don't look but the nasdaq is inching closer to bull territory. the federal reserve is not happy about that because investors are not listening to them. mary daley having the let them eat cake moment. she doesn't feel the pain ever inflation and you wonder why the
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fed lacks credibility. a lot of crypto wallets have been drained as another massive hit to this industry. still we have players here. we'll talk about the future of the defi revolution. i think it is alive and well although some issues. douglas holtz-eakin on preview of tomorrow's jobs report around whether or not we'll go into recession. all that and so much more on "making money". ♪. >> the skynet funding bill is passed. the system goes online on august 4th, 1997. human decisions are remove from strategic defense. skynet begins to learn at a geometric rate. >> that's right. august 4th, that was the movie terminator. the cyborg assassin sent back to 1984 from 2029 to kill sarah conner to prevent the future birth of her son john, that would lead resistance movement
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that would top tell skynet, turned against its houma creators and destroyed mankind. there is resistance movement, against the establishment that pulls strings, central banks, governments, large corporations. it is a playing a role in our markets as well. i want to bring in leuthold group chief investment strategist jim paulsen. everything these days comes down to a battle. feel it every single day. some call it a tug-of-war. that mitigates the stakes. stock market you use different analogy. you use football. investors have gone on the offensive. why is that a good thing? >> well i keep monitoring two different portfolios, charles. offensive portfolio and a defensive portfolio and look at the relative performance and i what noticed this year of the previous three or four attempts at a rally of bear market every time offense beats defense, but
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the current rally we're in, the one that started at the end of june, the offensives outperformance of defense has been going on longer than any other rally attempt we've made and it is, outperformance is nearly twice as great as defense. so this rally to me looks and feels a lot different. not only that but this is the first rally attempt of all of them we've had this year where, while, the s&p is up and the offensive portfolios are up, the defensive portfolio is down since the end of june. so i think investors not openly are getting more aggressive and they're going on offense but they're dumping defense and this is a different, more sustainable rally than the other previous attempts we had. charles: by the way just so you know we do have your chart up here. so folks can see, this is where we began with this, it is right here. it obviously has been longer than all these others maybe on the verge of breaking through some big, big numbers.
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all eyes are on the federal reserve. we'll stick with the analogy of the show, doing its best "terminator" impression. destroying demand by humans to spend more money that has achieved in other degrees, you talk about the m2 money supply and how much that has come down? >> you know, charles, i think the case for the fed tighten something rapidly dissipating. let's face it real growth is already at a crawl. it will probably be slower by the next september meeting. inflation evidence, headline numbers are still strong but everything else has rolled over and by september there will be more inflation evidence of easing. i think the case for another tighten something dissipating. i think why the markets are taking off. they're picking off that we're at the front edge of the next easing cycle. the market is already doing that. bond yields from one years to 30 years already enacted rate cuts. the dollar is rolling over, junk spreads have been coming in and
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proving and to your point real money growth back to 1960 right now is lower than 95% of the time. it is not going to get a lot lower. if inflation moderates that's what will lift real liquidity growth. fiscal growth, automatic stablizers when the economy slows, tax receipts slow, unemployment insurance expenditures go up. so it is starting to ease. you have to ask yourself, i don't care what the fed does, do you want miss the front end of another easing cycle if you're out of this stock market with everybody easing? i think that is a big risk. charles: i agree with a million percent, jim. i appreciate it. you're so prescient in the presentations and you explain it in a way we understand. talk to you real soon. all right. folks, so the market at this point is on the offensive f that is the case the nasdaq is one that running downhill, like derek henry coming into the session up 19% from the year-to-date low. it is 1% point away from an
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official bull market. i want to bring in main street asset management ceo erin gibbs and payne asset management ryan payne. hard to believe we're talking about bull market but it is up 19%. it has been somewhat stealthy, recently big megacap names have come on like gangbusters. you started to get more instructive. when about now? we talked about your clients. are they seeing this? is it enough for them? jim makes the point a lot of people are not going to see it until it has made a big move. you have to be contrary can to the headlines to start to buy now if you believe it will happen? >> right. the sentiment is still nervous. you look at the vix, it is still in the mid 20s. we're sort in a neutral range where investors are ready to go risk off to get very cautious very quickly. we saw that earlier this week. yeah, it will take a little convincing. really it has only been about six weeks but when you look at
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the 10-year yield, that has been dropping since mid-june. we have six week -- charles: june 16th was the date. peak, start coming down. >> that is when growth will take off. that is the tailwind that will help these riskier stocks take off. charles: ryan, one thing i know you love bargain hunting that always seems to be a central theme with you so you must feel pretty good what is going on right now? >> i do. i like to be contrarian as well. if you look at the survey of money managers from bank of america like two weeks ago, of course they're all sitting with more cash than they have had literally in years. look at the bottom of the credit crisis they had the most crash. when the tech bubble burst you got a lot of bad news you have money managers sitting in cash i say good things happen. skills to pay the bills stay invested here, what happens here markets start to move up, you get a melt-up. money managers feel the pressure they haven't been in. charles: right. not just cash. asset managers, leveraged funds
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they are short this market. at some point they have to cover the shorts and then they have to go long. then you're beating the experts. how do you go about it right? s&p, for instance, 200-day moving average, utilities, 89% of these stocks are above their 200-day moving average. on other end communications services 12%, consumer discretionary 1%. do you chase the winners and start to nibble down here with obviously some room to the upside if it goes? >> i've been nibbling more on the cheaper stocks, the ones are little earlier in this stage i'm willing to take a little more risk. for example, aspen technology, it is a mid-cap tech stock, enterprise software optimummization. there is less risk to the downside but definitely if it will be in the up swing these are the companies that will take off. charles: s&p 600, small caps,
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trading at a four forward p-e of just 12. ryan, there has to be opportunities there. >> that is as low as the financial crisis. that is how crazy it is. historically when we go into recession, we did have a recession technically, we can argue about that all day small caps tend to underperform. and they did. coming out of recession i think they will be solid this year. they should outperform as they did out of the pandemic. at financial crisis they led the way as well. you have to small caps in your portfolio. charles: small caps you focus on ones with great stories or ones making money? one with great stories amazing ing out of pandemic bottom, but feels like they need more oomph on fundamental side? >> this show is "making money," charles. jim is right but probably higher than it was the last 10 years and we know in higher inflationary environment tech doesn't do as well even though we're getting a big bounce right
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now, your cyclicals do well and companies profit in the immediate. most portfolios are not positioned that way. charles: erin, all eyes tomorrow are on the jobs report. three firms raised their number because of the service number, ism number but it also reminds me of the day before the gdp when three wall street firms raised their gdp estimate. >> so helpful. charles:it's a big number, comes in better, over 250,000, 300,000, that means that the fed has more work to do, at least that is the initial narrative, do you look further out to use some form of common sense this number is still not 700,000 like it was earlier in the year, still not 300,000? it is moving in the right direction. do you panic in other words? if you go long, would you panic if the number is strong tomorrow? >> no. i think the stock market is treating good news as bad news and bad news as good but i think the bond market --
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charles: the stock market wants us to be in recession so the fed will stop. >> labor market has been the argument this is not such a strong recession, blah blah. i think the stock market will be the bad news good news type inverse reaction. i think it is the bond market will behave whether that will really be heading this economy into something depressed. >> bond market, yields are in freefall now. >> rallying hard. junk bonds rallied 5% which says we're not going into recession. bond market is too hot. 3.6% for every 1.8 jobs out there. charles: although we saw the jolts number come down, the fastest three-month decline in history outside of the pandemic. >> but 10.8 million jobs. charles: that is two months late. i bet money that there is going to be a real ugly number if not tomorrow, it will be the month after. i think those jobs are drying up, would-jobs. the quit rate is still too high for the fed. >> we've seen enough evidence that companies are slowing down
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hiring or have hiring freezes. charles: right. >> i agree. it should be a lot lower. charles: amazon shed 180,000 jobs in less than five months. of course that wasn't firing though, right? we should make it clear to your point. they let attrition. they're not hiring people. big difference between firing. >> yeah. charles: we have to leave it there, erin, ryan. thank you very much. don't look now but nasdaq is leading the way. i want to go to chart school with andrew thrasher to see what else might confirm the fact that we made the turn. ♪
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go up to the 200-day moving average. is that a little too ambitious though? >> i never fault you before being too ambitious. we have a few steps first. s&p needs to get back to 4200. that is improvement. good to see. we have strong action in the nasdaq 100. 65% of the nasdaq 100 have been risen 20%. i know you're watching the index itself. we still have a long way to go, even though 65 of are up 20, average negative is 21%. we have a big climb but improvement has been made. charles: nasdaq mass to be powered by the "faang" names, as much as people say they're done, don't worry about it. i'm a amateur chartist looks to me like the infamous cup and handle f that's true, that is typically a very bullish chart. on this one, forget about being ambitious, am i being too
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creative? >> i'm a cup and handle pattern as well. i can't see the specific chart you're looking at on my screen here. it's a bullish pattern that we're performing. we have a lot of drama to make up. there are still a lot of threads that this is countertrend rally. we saw similar moves during prior counter trend rallies. we're seeing improvements. we're glad to see that. we're not out of the woods yet. hopefully after we get past past earnings season. we jump ad lot of hurdles, got past the "faang" names. a it is a lot of green shoots from a prior decade. >> i remember that term. 4200 which is where we are right now, let's talk about what happens if we fail, right? because you know these bear market rallies get our hopes up pretty high and, you know, we hit these key points and they're called resistance for a reason, right? so a lot of times when they hold up we lose, we lose our, our air
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right? we kind of slump a little bit. i want to ask you if 4200 holds as resistance where do you see potentially the s&p going down on the downside? >> i mean, on the downside we'll start again stair step our way back down but it is very possible we could retest the prior june lows. charles: wow. >> we're seeing a resetting of sentiment. we saw a lot of people move back to cash, move short. we didn't see the big spike in volatility people were hoping for. so a lot of hedge funds are chasing because they have underperformance on hedges and their longs. we could see, there is potential for the melt-up because chase performance but on the downside i think a lot of catalysts could send us lower. we're not there yet. at this point i'm still classifying this move as a countertrend rally. it matches with a lot of those we saw in 2008 and 2018. i think we're countertrend rally. above 4200 helps that thesis break up. charles: we have 30 seconds. you mentioned the importance of
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the u.s. dollar index, bullish fund, uup. folks down here that was a big gap. it filled that gap. it held above key moving averages and now it is turning higher. i don't want to see that turn higher because that puts pressure on multinational stocks and puts pressure on the overall market. where do you go from here? >> uup that 50 day where it is holding. when we have the countertrend rallies the dollar strengthen it has been pretty bearish. we want to see the dollar come back down, break that 50-day. charles: that is right here, folks. i agree i think if we go down there you really want to become more aggressive in your allocation. andrew, thank you so much, my friend, appreciate it. folks, coming up thousands of accounts linked to crypto wallets have been drained. we're talking millions of dollars potentially lost. we'll discuss that. mary daley have the let them eat cake moment, she doesn't see the pain of inflation.
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only pay for what you need. jingle: liberty. liberty. liberty. liberty. >> so turns out the federal reserve is at its wits end trying to real in the stock market. they have become emboldened to say anything to get people to stop buying stocks. in a candid moment mary daley revealed her frustration. i don't feel the pain of inflation. i see prices rising but i have enough. i sometimes balk at the price of things but i don't find myself in a space where i have to make tradeoffs because i have enough, and many americans have enough. wow, talk about lack of empathy. we have hoover institute
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economist john jordan. that is interesting, on the san francisco fed website, that mary's leadership is underpinned about public servants to be fully human, vulnerable, compassionate, optimistic and pragmatic. where is that mary? i mean what are your thoughts? >> well, charles, it just demonstrates how out of touch she really is. she is part of that elite coastal group that wants to reshape the american economy, that don't really relate to working people. when you're making 420,000 like she is you can live like that. she is part of that. she grew up under janet yellen at the san francisco fed. janet yellen was president of the san francisco fed before moving on to the vice-chairmanship and mary is just like that. so this is kind of out of touch thing one expects and why people are becoming less and less trustful of the fed which is a dangerous thing from a market perspective. charles: you know, that progressive wing, when they start saying people have enough, i get really worried about that,
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that they're going to, who are they to judge how much we have or need and it's really scary that they have this much power. speaking of which the fed is frustrated. the markets are not listening to them but many say that the so-called age of credibility, when it comes to the fed began under paul volcker but ended with this powell fed. your thoughts? >> yeah, this is serious business now moving away from the statement of mary's comments here. the fact of the matter here is that the cornerstone of the prosperity of the united states has enjoyed over the last 3 1/2 decades is built around the fed ruthlessly, impartially pursuing its two mandates, price stability, and full employment, regardless of politics and the party in power. marketing believed them, not just american markets but worldwide markets. that is eroding right now. that belief the fed will do that. consider back in 2018, there were four consecutive rate hikes under president trump. inflation was around 2% and
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never crossed 3%. now we have had, then the first quarter of this year the fed funds rate was near zero around the fed is buying bonds at tens of billions of dollars at a clip. now you have only, called it inflation was transitory and now they're reacting only now for the first six months. it looks to many like they're put, the fed is putting their finger on the scale on behalf of progressive politics. they don't want progressive politicians to lose or progressive politics to fail at the ballot box. it looks like they're doing that. this is undermining the credibility which is underpinned western and american prosperity now for almost two generations. charles: it certainly has. john, wish we had more time but appreciate that, really great insight. thank you very much. so, folks, we started the show with the "the terminator" movie clip. the movie is about resolve, people fighting back against unbeatable foes. many see the decentralize finance revolution happening
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right now, they see it the same way. bitcoin magazine, head of market research, dylan leclair. dylan, let me get your thoughts what mary daley said. i saw on twitter you seemed to be upset. >> i was tuning in live when she said that, it really poked me the wrong way because mary daley and the federal reserve were the ones saying in 2020 that inflation was far too low. even though prices were rising the rate of change of prices was not rising fast enough. here they are a year later, inflation is obviously enemy number one. now they're trying to destroy the wealth effect and reverse engineer the wealth effect to clamp it down. someone like mary daley is in a privileged position. those comments pricked me the wrong way, for a lot of people it shows content with higher-up central bank elite class. charles: amazing to me whether it is the federal reserve or the federal government, you send out billions of dollars, trillions of dollar, tell people to take
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the money and spend it. then turn around we'll bludgeon you because you spent the money and prices went up. that is one of the things a lot of people are drawn to cryptocurrency, specifically bitcoin, isn't it? >> yeah. 100%, it was definitely spurred off. 2020 was inflection appointment where some people looked for an alternative. whether that was equities or bitcoin more broadly, people said i need a safe haven. i need something to escape the debate. of the dollar. that is starting to go into reverse. this is almost a money vacuum with fedpolicy. i still think the long game, the reason there are so many long-term bitcoin bulls, the fiat system relies on perpetual credit expansion to persist. that is the reality. charles: markets understand that. why they don't listen to the fed these days. speaking about twitter, you put out a tweet about exploiting that was taking place at that moment on a lot of wallets being drained. suspicious you know activity.
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let me ask you, i mean, you know, a lot, solana was hot last year. a lot of people talked about it. now you got this issue. i know there is a long way between now and fulfilling the decentralized finance revolution but how tough is it when these sort of issues seem to pop up? when can they be put to bed? >> there is pros and cons to wild wild west of crypto and build fast and break things. that is why we particular the bitcoin magazine where i work we separate bitcoin and crypto. bitcoin is slow methodical buildout. everything is backwards compatible. the system has been chugging along for a decade plus. solana, these exploits, whether back end, it wasn't fault of native chain, but a lot of software being used was straight up exploiting or exposing private keys of users funds. that is where the hack originated. i think it is important to
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understand these things, you know, take some time not to go all-in with all of your money and savings. charles: i got a minute to go so let's go to bitcoin specifically. i had michael saylor on yesterday. the night before everybody was dunking on him. great memes and videos on social media and the most important thing though he remained extremely confident about his decision. just your thoughts on you know, again the heck cup that his company took, the writeoff they had to take but the fact is he is still all-in, what does that say to other folks investing in bitcoin? >> yeah. you know the long-term thesis of bitcoin is unchanged. obviously there is an immense amount of volatility with the asset class especially microstrategy if you lever it up. the good news for sailor and good news for microstrategy in general, the debt was long-term, low interest rates in 2020 environment. there is some time for bitcoin to recover. immense volatility in the equity
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itself is because you're essentially levering up the bitcoin bet. charles: right. >> i think the long-term thesis for bitcoin is unchanged. we're at the end of the debt supercycle. how it is resolved is anyone's guess. the engame is more monetary debate. over the long term that is the only answer from policy make years dylan, i have to hop do i have to get one of those chairs you have to be part of cool kids? all the cool guests have the same chairs. do i need one of those? >> need one of those, next time i will wear a suit. charles: sounds good, my man. talk to you soon. >> sure, charles. charles: coming up, everyone is focused on this jobs report. the cbo scored the most recent spending bill. so one person's perfect for both of them, and guess what? we have him. douglas holtz-eakin. he is next. ♪
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♪. charles: so my next guest has been in the market mostly defensive posture but also his core holdings got some growth names there. feels like we're at a crossroads, right? we're either at big breakout point or we fail to break out, of course as i said early in the show we could pull back a whole lot. i want to ask my next guest about list slick avatar. i want to ask wealth strategist, kenny polcari. before we get to the avatar, because i'm jealous. i saw a lot of other people you're pretty upset with mary me daily's comments. she is out of touch. completely tone deaf to a lot of the country, right? charles: right. >> people think this is
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arrogant, she sits in a position to help create policy, she is not even a voting member though, right? charles: that always rotates. next time -- >> currently not a voting member but the comments appear completely tone deaf. charles: ironic you said that i feel like the non-voting members have been given the green light to lay it thicker. bostick has been laying it on pretty thick lately. >> that is what they do. they take the ones that can't vote to test the waters. to say things that create all kinds of chaos. charles: start with the avatars. first one, this move right there. in response to the fed in a soft landing, is that suggesting, is that suggesting that the fed shouldn't talk about a soft landing or can't pull it off? >> no. that was in response to the article that came out of the uk today talking about they expect that the recession in the uk is going to be worse than it what it was and it will be worse here in the united states. charles: their central bank said
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that. >> their central bank said that. >> so i gave the shush thing, don't anyone say it. because over here they're preventing it won't happen. i. don't know how you can use the soft and landing in the same sentence anymore because i don't see how they will navigate it. charles: the other response was to an unusual wells tweet about the latest hedge fund. titans declared war on amc. since this guy declared war, amc is up 44%. what is it with these wall street types? why do they like to pick fights with regular folks? you can short the stock but why go on twitter to declare war on twitter. >> i don't know who he is. i haven't heard of him. i don't play that side of the game. i don't play to short stocks. i don't follow heavily-shorted stocks because they're not names i, it is almost like trying to pound your chest saying i'm bigger than you, i dare you to come after me. now amc is up 44% since the guy announced he is short. charles: absolutely amazing.
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i'm digging those avatars, my man. >> thank you very much. charles: do you put them together? first i thought it was kenny rogers. then i saw the glasses. >> glasses and white beard. it is very funny. i don't know apple. it started out as half a dozen avatars. every day suddenly a new avatar of me pops up, different pose, different position. i'm not sure who is doing it. >> that is so cool. so cool. >> very cool actually. charles: talk about what you are buying because you like gold here? >> so i like gold commodity. i like gold the stock which is barrick but gold the commodity but if you look on the chat, it has been in the 1700, 2100 trading range, right? it trades up and comes down to 1700 to test it. bounce and test it. it tested for a third time just a couple weeks ago. now it is started on its way up. i think if inflation continues to stick around as long as it does, and we on tin to have these geopolitical concerns out there, and there are a lot of them, i think gold is once again, people will flock to
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gold. i like gold barrick and newmont mining. charles: what is the high? 2100. >> 2400 on gold. i think gold is 25 to 3,000 in two or three years. charles: really? good stuff, my man. good stuff. avatar thing, i'm jealous, kenny. coming up my takeaway on the sacrifices, right, be careful what you wish for. that is all i'm telling you. also the jobs market or jobs report rather is tomorrow and wall street is pretty bullish on it but should they be? douglas holtz-eakin is here to share his expertise right after the break. ♪.
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charles: so all eyes on tomorrow's jobs report a little more than 17 hours from now, consensus 250,000. although three wall street firms have actually upped their numbers. we know there will be a serious slump of the labor force.
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hey, that is the goal of the federal reserve as they attempt to slow down inflation. meanwhile the plot thicken over the schumer-manchin bill. the new wild card, senator krysten sinema who wants carried interest pulled out of it and adjustments to the corporate minimum tax. joining me to discuss american action forum president douglas holtz-eakin. doug, start with the bill. say the way it is written right now, you actually put out a piece right now it is unhedged and a risky bet. what does that mean? >> i was referring to the climate strategy that the administration is pursuing. their basic strategy have a very clean electricity sector, nothing but wind and solar, nothing but renewables, transmit all across the nation in a grid never existed never had technologies to commit, distribute it to every vehicle, every factory, every business, every home and that is the strategy and it's unrealistic in the timetables. it is unrealistic in the dollars on the table and it is not going
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to work. i don't really see the point of putting a couple hundred billion dollarsdown payment into something that is really not well-thought out. charles: i agree with you 1000 percent. the debate right now is, does it pay for itself? will it reduce the deficit? now the cbo says it will by 101 billion over 10 years. the journal saying saying that s simply untrue. i'm paraphrasing. they use harsher words than that. you know the gimmicks. does it really do that? >> the bill itself, i have no real dispute with the cbo and joint committee on tax, lowering 110 over 10. it is backloaded. deficit reduction occurs in the final five years. there is nothing up front that is helpful to fight inflation. the bigger point, charles, that is not the only thing congress has been up to, while we've been watching ira bills, they also passed veterans bill that spends up $600 billion over next 10
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years. pretty close to passing chip plus bill that costs $310 billion. trillion dollars finance add deficit spending going on and anti-inflationary of 10 billion a year. forget it. it is the same, it is the same movie we've seen for a long time. spend now, talk about paying for later. >> it never goes away. let's talk about the federal reserve they're really struggling feels like to get inflation under programs. they insist will be a whole lot more rate hikes. wall street sees it differently. wall street sees rate cuts in 2023. how do you see it? >> i think people missed what the fed saw in the pce price that came out last friday. everyone of their preferred measures of inflation accelerated in june, it didn't diminish. even though final month after quarter that came in negative in the gdp report. so they're focused on that inflation and they are going to hike rates. charles: right. >> i think you know, the conversation that everyone has had this raises the risk of recession next year, absolutely.
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the fed knows it but it also knows that we cannot have sustained high employment without first beating inflation and they're focused on that. charles: the cpi report, the estimates are coming down fast on that. what are you seeing in the next cpi report? >> well, the top line will. that dominated by food and energy inflation and we've seen both those series moving down in recent months and weeks but for me the key remain is shelter. shelter inflation has been rising every month. it shows no sign of peaking yet. it was 5.6% in the last report. that is a third of the cpi. it is probably going to get to 6% which the fed can't hit the target unless everything else is zero. that is not going to happen. charles: right. >> until we see shelter inflation peak and start down we really haven't begun to make a dent in the real problem. charles: douglas holtz-eakin, thank you very much. always appreciate you. >> thank you. >> folks, you can feel it right? everybody is on pins and needles because it is clear on one hand
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feels like this market is ready to take off like a rocket. i said it all show, bear market bounces when they run out of steam katie bar the door an dive for cover. to join me, nicholas wealth management founder, david nicholas. david, i heard this morning you took some of that cash and put it to work. if that is true what motivated move? >> charles, i had cash burning a hole in my pocket, we needed to get money to work. nasdaq took out 50 day, 100 day, 200 day. we watched the levels. we felt it was a strong rally. i said before on your show tradeable bottom for the s&p was in around 3650. clear to say the pain may not behind us but we think is a strong rally to buy some names beat up the most. which is why we're putting new money to work. we like tech here. we think strong companies with good balance sheets you want to put money to work. i think we could still retest the 3600 levels here. you want to watch those levels
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and aggressively put money to work if we trade down to those levels again. charles: the main story this week, the federal reserve just losing their minds, right, somehow walking back the powell comments about the neutral rate. you made an interesting comment last week when you said the fed isn't even fighting inflation. who are they really fighting? >> yeah. charles, the fed is not fighting inflation. they're fighting the middle class. we can get so academic about this really the middle class that gets hurt. it is not that we have too much demand. it is we have too little supply. i think demand will continue to stay relatively strong. so what has the fed done from a practical standpoint? they made goods and services more expensive. take housing, right? we lowered interest rates,s of americans locked in low interest rates on their mortgages. they're not selling their hopes. so that has kept home prices stubbornly high. americans with higher rates on their mortgages paying more for homes. this is a problem, charles.
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i think the federal reserve is truly hurting the middle class, unfortunately. charles: when the street heard you put money to work you turned the market around. some of that is the cp effect. let's share the credit. tell us what you bought if you can. you mentioned tech. what are some much things you like? >> looking at semiconductors right now. obviously congress passed the semichip bill. i was against it, $50 billion is $200 billion. we bought a name, on, o-n. we think that stock got beat up this year. it is a great name, hugely profitable, we like that. we are looking for hedges, merck, we think health care is a great hedge. if you're bullish, bearishes, excuse me, pessimistic of the market, merck we think is the best-of-breed when it comes to health care. paypal, aday. if you asked me what my favorite
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stock today, put to work adyey. cash king, digit call payments out of europe. some customers are the biggest names, facebook, microsoft. that is a name we feel very strongly with. like the levels and we put money to work. charles: man, you have been so spot on. really everyone is saying this kid david is on the money. i like you made a bold move. you're sharing it with us. we're in it together. david, we'll be watching appreciate it so much. >> thank you, brother. charles: my take away on the true cost of the green utopia and really be careful what you wish for. ♪. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina?
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hope charles: we have more on this inflation bill. politicians take something that everybody wants and then they stuff these bills with things that nobody wants. that's right, folks. the road to the green utopia is goon be littered with broken dreams, lower living standards, and more than likely never ever match the hype or meet the stated goal. the poorest folks will pay the biggest price and discover
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there's nobody there to forgive their loans or pay money to buy a car. the idiom, be careful what you wish for and it's a warning for those who take the bait and never dig down deeper. there's always a cost. your friends is the cost of pursuing green dream is record electricity cost and french one year base power contract can surge to an all-time high and it's up 1,000% from the 10 year average. spain, they ban air conditioning from dropping below 27 degrees celsius. heat wave, too bad. these are minor, minor costs as the real goal is to lower living standards for everyone except the elites. it's always been that way by the way. a lot of policies all seem to have these kind of goals, whether it's central bank policies, education. it's just not working in your favor. it's not working in our favor.
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the only thing it's designed to do is make you sort of buy into the titles of these programs and sales pitches of the programs so just be very, very careful because it just doesn't make sense. douglas laid it out perfectly, getting from here to there, it may happen but it'll cost a whole lot more money and it'll take a whole lot maritime. in the meantime, this last hour of trading, liz claman, i'm rivetted because the next thing after this is the jobs report. elizabeth: yeah. oh, yeah. we are so hon it right now because that's tomorrow, 8:30 a.m. eastern but we know that your hour and my hour tomorrow will be the most important because it is the biggest piece of data; right, charles? charles: absolutely without a doubt. elizabeth: we need to kick into split vision mode because we need you to look through the markets through the layoff lens and trade lens and it's tinted ahead of tomorrow's jobs report and oil


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