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tv   Making Money With Charles Payne  FOX Business  August 25, 2022 2:00pm-3:00pm EDT

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neil: all right. i leave you with the dow up 125 points. other market averages following along. everyone on tenterhooks waiting to hearing from jerome powell in wyoming. let's go to charles payne. charles: thank you so much, my friend. i'm charles payne. this is making money. breaking now despite all the hand-wringing over jay powell's big speech at jackson hole this market is showing quite a bit of resilience. make no mistake powell is facing a "mission: impossible." i have a power panel. danielle dimartino booth and lyn alden will guide us what needs to be said before this economy self-destructs. biden facing major backlash making it rain yet again for
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college grads. market implications for jim bianco. he will weigh in at 2:15. everyone is fretting over jackson hole, kenny polcari warns us the september is not friendly for the stoke market. paying your own debts is part of fabric of america we must never for get. it bids individual character and into the greatest nation in the world. my take on that later in the show. all that and more on "making money." ♪. ♪. ["mission: impossible" theme] charles: all right. you know, you get the feeling, right, that at some point over the last few months jay powell he walked into a classical music shop. he went to pick up classical sheet music and inside the bag was several posts and charts.
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good morning, mr. powell. looking at rates of inflation, the fed balance sheet, government debt. the tipping point has been reached. despite runaway inflation governments including our own continue to spend money. in fact we have knowledge that even more money will be spent after senator manchin agrees to a package after a long drawn-out act of righteousness. that will speed up the clock to irreversible economic peril. your mission, jay, should you choose to accept it, stop runaway inflation without yourself pushing the economy into irreversible peril. if you or any of your fomc force caught making mistakes or misspeaking the secretary will avow any knowledge of your actions. this message will self-destruct in five seconds. good luck, jay. "mission: impossible" for jay powell, the question can he pull it off? nancy lazar, quill intelligence danielle dimartino booth, lyn alden investments strategies.
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you are too young to remember that show but one of my favorites. this is the ultimate power panel. what is powell's biggest challenges for tomorrow? danielle, let me start with you. >> part of powell's biggest challenge, markets factored in too much, they put too much pressure on somebody who already said we're moving away from forward guidance and we're shifting over to a data dependent world. you want me to be specific about 50, 75 basis points or even 100 on september the 21st i'm telling you next friday's payroll report is more important to me in terms of where interest rate policy is going to go. that should shift the onus back to talking about the balance sheet. we heard not near enough about that and powell should be talking about that tomorrow. charles: i will ask you about that later on. nancy what do you think the biggest challenges are there for him tomorrow? >> he has to regain credibility. he has to make it perfectly clear to the investment
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community his goal is to pull down inflation on a sustained basis. they understand mistakes were made in the 1970s i think increasingly the chorus from the fed is trying to make that point. so i hope powell without any confusion makes that perfectly clear tomorrow that their goal is to bring inflation down to 2%, not 3%. 2%. even if that does take putting the u.s. economy into recession. charles: lynn? >> i think the biggest challenge is probably to articulate going forward after that what is the plan, right? right now we're seeing that they're trying to curtail the demand side because obviously the fed can't do anything about the supply side. they can't print oil, can't print these other materials. so the question after they quell demand what is the longer term plan there? we need kind of more clarity there i think from other parts of government, not the fed themselves. but i think that basically i think the "mission: impossible" theme is dead on because the fed finds itself in this position
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where pretty much everything they do is a policy error. either they're intentionally putting the economy into recession or they're not doing their job of price stability. charles: so a survey on bank of america what to expect for the u.s. economy over the next 12 months has yield ad variety of answer, right? one, inflation/recession. that was number one. 69 inflation/slowing growth. disinflation/recession. disinflation/no recession. nancy what do you anticipate? >> i do anticipate a recession. you need to see an increase in une employment rate this is not a cpi goods question or a oil question. we have a very tight labor market of 3 1/2% as we all know. unemployment claims have increased after stabilized. those are important signals that the fed has not tightened up and tighten a lot to get the employment rate up. we have recession minus 1% gdp unemployment rate moving up to 4%. i'm bullish on inflation slowing significantly but as i keep
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saying it will be nasty getting there because companies depended on pricing power to support profits as we clearly saw in the second quarter. moving into the third quarter you're increasingly hearing companies there is too much supply in the retail space. listen to target or nordstrom's or walmart. they are now having to cut price which will put downward pressure on profits. so i think it is going to, inflation slows but it is going to take recession because you need labor market slack which companies aren't yet laying people off. charles: lynn, this morning we saw second quarter gdp revised better down .6. the consumer part keeps holding up. i wonder if we're looking defacto war federal reserve against the american consumer because just, let's face it, people are not getting the hint. we continue to shop. what mass to happen to curb that? you mentioned it earlier? >> oh, i think it was described well. basically that the fed is still tightening, they're still trying
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to curtail demand. they're still pushing up against the consumer around the labor market. one thing that is important to look at inflation adjusted numbers for these things, for example, retail spending. look at nominal spending, inflation component looks very bullish, whereas if you adjust it for inflation americans are taking home less stuff or equal stuff than they did six months ago, 12 months ago. so i think the consumer already weakening around the margins but it es clear still based on how they're able to spend, how the labor market is going the fed still has a tough road ahead of it in terms of bringing back down prices to the long-term inflation target. charles: that is just the point, danielle. the knockout blow everyone is kind of looking for, we keep hearing about excess savings. can't be the same excess savings as in january as there is now. i think americans in general, particularly if they have got a job will spend until they run out of resources and if that's the case how far would powell
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have to go to break that? >> so i think you're right, charles, and we've seen as savings have been depleted in the aggregate below where they were a nominal level prior to the pandemic, we've seen credit card spending increase quite a bit. to your point, powell has to destroy enough demand to brit unemployment rate up as nancy was saying in order to break this psyche, in order to break the inflation cycle. these are not easy tasks ahead of him especially because of the stimulus measures that were exacted beforehand over the last 18 months, taught, trained many american consume they need to consume, no matter what, keep it going, in fact maybe some of them should have been saving some excess money they came into as opposed to blowing through it all and running up debt. charles: you feel like more is going to come, right? there is always another plan around the corner. first the federal government, 16 states are enacting their own form of call it free money.
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nancy, you're one of the best global economists out there. peoples bank of china, just lowered a key prime rate. none of these central banks out there feel like they're in step with the federal reserve. bank of japan, for get it, they're completely in a different direction. does that complicate jay powell's job? >> it does. if china picks up, near term china is still very weak and stepped up their easing here in august. if china picks up as we go into 2023 which there is a chance they do, if covid can get undercontrol, that you could see another pop in oil prices and that could further, i would think that would be even a bigger tax on the economy. it doesn't worry me about permanent inflation perspective. it worries me the last thing europe needs right now is even higher energy prices. so, yeah, japan is really not a player in the global economy right now but china could come back and that complicates the
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backdrop of 2020, 2023. charles: i'm sorry. i will pick up on the energy thing. lynn you tweet about this and you talk about this a lot. it is something, some craziness since a lot of it on both sides of the atlantic feels self-inflicted but that will not stop that pressure. it doesn't feel like there will be any policies to curb the energy prices. >> i think the energy side is going to be the sticky and challenging part to get down. we're seeing in inventory data some of the other inflationary pressures can resolve themselves in the coming years but they're still really nothing on the horizon to address the energy shortages. part of what we're seeing out of china, part is the covid lockdown but they have pretty severe power shortages from drought conditions. a lot of their hydroelectric dams are running into shortages. that is running into factory shutdowns and things like that, that ripples through the global economy. i do agree looking at global energy demand is one of the things to watch because as you know, as big of a consumer we
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are in the united states the world especially, you know, parts of asia are, you know, the majority of the whole. we also can see for example, in europe to the extent natural gas shortages continue they can shift over to some extent to heating oil. i generally think that getting those energy prices down, you know throughout much of the world will be one of the bigger challenges in the years ahead. charles: danielle, jpmorgan and morgan stanley, saying that the bond market is not adequately pricing in quantitative tightening. you've really been on this qt thing in a sense a lot of folks are complaining where is it? you say it is coming but what do you make of the fact that maybe not just the bond market, stock market having another good day today maybe not adequately pricing the risk that they face? >> you know, charles, i think that's right. by the time we get to october the 1st with the september 30th treasury maturities, and we see the first full month of $60 billion coming out of the market i think the stock market will have more of the message even than the bond
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market as we think of the bond market because what will be most affected is credit. we saw three large companies go bankrupt last week. what jay powell hoping to engineer, hoping to blueprint, controlled demolition of some of the weakest players who taken most advantage of zero interest rate policy to blow up balance sheets with unsustainable debt levels. you will see that play out in the credit markets which will flow through, feed through into the stock market as we get into september and into the fall. charles: all right. ladies, powell may be facing "mission: impossible" but this segment was mission accomplished. great, great stuff. i appreciate it. thank you all very much, nancy, danielle, lynn. folks you at home you know i love hearing from you, a comment on the show, questions about me or one of the guests always tweet me @cvpayne. one viewer bob from orlando said great job of detailing costs to the latest handout to folks least able to afford it and those that chose another path to
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benefit those that need it least. it is discrimination. it is disgusting. you fight for the little guy. hashtag respect. thanks, bob. coming up a top obama economist says biden's student debt handout is like pouring trillion dollars worth of gasoline on a raging fire. the calculations next with jim bianco. ♪ (vo) the fully electric audi e-tron family is here.
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by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. charles: got to tell you the nation is still buzzing from the extraordinary student relief loan action from president biden. one estimate says it could coast up to $600 billion. by the way total pandemic college forgiveness because there was already some in place, 800 billion. not everyone is happy including prominent democrats. jason furman called it reckless t would take a 50 to 75 basis point fed hike to extinguish this inflationary act. we saw the tug and pull to 50 to 75 basis points t shot up 60% to
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75 from 50% at the beginning of the session. we have bianco research president jim bianco. jim, we have become numb to some of these numbers. 100 billion, 800 billion, golly. the fact of the matter we're looking at another trillion dollars of federal government spending at a time when the fed is trying to take down inflation. it just doesn't make sense, does it. >> no it doesn't because why does the fed raise rates? they want to curtail spending. want us to spend less money so the price of goods come down. remember inflation impacts 100% of the population. so what are we doing? we're giving a certain segment of people, people with college debt 10 or $20,000. presumably what will they do with it? spend it on things or put it in a brokerage account and buy stocks. that is, and that is exactly what the fed's trying to curtail. we call it financial conditions.
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they don't want stocks to go up. people feel rich, run to the mall, spending money because that just drives up prices. charles: of course the big debate from wall street's perspective investors is how much the s&p 500 returns, depending how deep of a recession is. now i've got a chanter of history of recessions like, when they start, this is the line when they usually begin. we always go down into the recession. then there comes this part where we might be right now but of course the major difference, shallow recession, deep recession. is it too soon to tell where we are within the scheme, grand scheme of things? >> well first of all i think we are in a recession, full stop, conversation over. now i say that because we have always tried to define this word differently. used to be called panic. then depression. then called recession. now we can't even use the word recession anymore. it's a shallow recession right now. we'll see what the next six to nine months brings when it comes to something deeper.
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the stock market usually, when it corrects 20% and it did in june, most of the time, like 80% of the time that happens when you're having a recession. that is another argument for why we might be having a recession. if the stock market were to make another move lower towards the mid-june lows of around 3700 on the s&p, that increases the chances that we are actually? a recession. so that indicator is one that we pay attention to. like i said, i think we're in recession. i think it's a very shallow one. i think we have crossed the rubicon, we have one right now. neil: you also posted a great chart. i say great, in the sense that it was mind-boggling, really. year-to-date total returns for the aggregate bond market, golly, i mean, folks, take a look at this. this is absolutely nuts. this is the, all the other times. this is historic stuff. this is actually mind boggling stuff. you know, so, it is the worst by far. what is the implications for something like this, jim?
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>> it means you're losing money in the bond market. you're losing money in the bond market which you normally don't do to a degree that would be associated with a bad year in stocks. you're down or 12%. now you have seen that happen now, the way you lose money is interest rates go up. you've sign the implications of that in housing. the housing market seems like it has hit a brick wall with the way mortgage rates shot up. and the way housing has been slowing. you seen it with the stock market. the stork market is dependent on cheap money. the it is not getting cheap, more expensive. seen it with the previous conversation, we might be in a recession right now. so it has had implications. the longer the bond market goes with losses like this the worse it gets. unfortunately with the fed raising rates it will not turn around anytime soon. charles: let me ask you the 60/40 portfolio has been a gold standard for retirement accounts. it worked for four decades but you're looking at the last few
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years here, i want folks to know, the blue is the 60/40. the yellow is 80/20. it outperformed here, outperformed there. outperformed this year, this year, this year, this year. and it is down just a little bit more this year. so i mean for the last almost decade 80/120 was a better combination, that was more risk. do you think it is time for people to start considering that? >> i think that was the last cycle. you're right, 80% equities outperformed 60% equities because through 2020 we had a giant bull market. 100% equities would outperform 80% equities if you follow the logic all the way through. we're in a new era, i call it the post-pandemic era, higher inflation, shorter economic cycles. two years ago the covid recession ended. we're talking about if we're in one right now, the stock market will have lower returns, not negative, not zero, lower returns. as interest rates go up the bond market will give you more
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interest income. that will provide you a better buffett i think. i think what people recognize complaining you only had 15% in a year when somebody else had more, you might be lucky to have 10 or 8% in this environment going forward. taking more risk, well you might have a better year here or there, when things turn bad it could be much worse. charles: jim great stuff. thank you very, really much. >> thank you. charles: wall street headed for the hills, the market was acting pretty good, right? so the question could the experts be overthinking this fed and their challenge of a soft landing? also europe's energy crisis, america's fate really we don't do something soon we must wake up. victoria coates what we should be doing before it's too late. we'll be right.
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charles: let's get back to these markets, federated hermes chief market strategist phil orlando. i got to start with everyone's "countdown" to jackson hole. jay powell's big moment again and where we go from here. what are your thoughts? >> i think the federal reserve will have to set the market straight that inflation is a problem. the federal reserve is going to need to stay vigilant in terms of continuing to height interest rates aggressively until we get a discernible decline in inflation. i think the market with this, equity market with this 19% rally that we saw from mid-june to mid-august believes there is this immaculate pivot that will happen in terms of both
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inflationary trends and fed policy. the fed needs to throw a wet blanket on that and explain they need to be vigilant here to bring inflation down. charles: how much is the transitory debacle haunting them? in other words maybe the market believes the fed, you know while it lacks credibility, they don't take them at their word anymore? you sort of have to show-me kind of fed? >> i think you're spot on, charles. the reality is what the federal reserve is doing now they should been doing last summer. they should have been addressing this sustainable inflation issue a year ago and this, this counter trend rally we've seen in stocks over the last two months is because the market doesn't believe the fed. the fed says, oh, we're going to be fighting inflation here. the market is saying no you're not. you're going to start todown shift the rate hikes the rest of this year and you're going to start cutting interest rates the
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second quarter of next year. we don't believe that's going to happen but the market generally does and i think powell needs to set the record straight tomorrow. charles: i know you had some strong thoughts on president biden's student loan actions yesterday. you know, what do you think? it feels like it's wrong on almost every level? >> i think you hit the nail on the head. the reality is that it is inflationary. that providing 10 or $20,000 of debt relief for certain individuals, they're just going to go out and spend that money. we're trying to fight inflation here, not fuel the flames further. we've done nothing to structurally address the high cost of college, which has been running at several times the pace of inflation. top school these days, charles, is $80,000 a year as an undergrad. it is difficult enough to be able to afford that.
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don't even get me started on the moral hazards in terms of how are you going to deal with the people that have paid their loans or didn't take loans out, or didn't even go to college? those people are getting nothing and i think the biden administration is playing a very delicate political game here hoping that this move will get it some votes in november. in fact it will but there are many more people on the other side of this argument that may be upset with the moral hazard associated with what the administration has done. charles: i mean the people that, the votes they are going to get i think they had in the bag anyway, they could to your point lose some votes. the moral hazard, also, golly, if you're in ninth grade right now, 10th grade, your college tuition went up. phil, i wish we had more time it has been too long. thank you very much, my friend. >> charles, thanks for having me on. charles: there is a lot of things on the political side we
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covered where the intersection of policy and markets. one is this sort of esg movement or the countermovement which is the anti-esg movement. don't look now they're doing extraordinarily well some of these esg funds. states are fighting back particularly texas where the publicly foundation, esd investment strategies may violate their laws. former trump national security advisor victoria coates. victoria, this is one of those things where people are looking, even wall street is kind of like saying you know, wall street is sort of being embarrassed by the fact that part of this inflation problem is on them because of this esg movements isn't it? >> the example that you mentioned is really important, a state like texas is not going to participate in, you know, do business with companies that are hostile to the fossil fuels
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sector and it just doesn't make any sense for the state and i think other states like my home state of pennsylvania need to wake up to the same reality. charles: germany, the electricity cost if you price it in terms of oil, it would be $1000 a barrel. feels like america is on the same path. 20 million americans are behind their electric bills. we're following same out utopia fallacy. how do you stay a first world country when people can't heat their homes? >> it is crazy. there was a reuters headline today saying europeans will have to make a choice between heat or eat. that is a pretty dire situation for first world economies. in germany they're trying to figure out what traffic lights to turn off. so that makes all of the more egregious the terrible legislation congress passed, ira act which is supposed to reduce
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inflation but in fact criminalizes our fossil fuels industry and put us on the same terrible path. charles: of course the big spike over there in, people started googling for firewood. really shouldn't laugh. that is scary stuff. i got a minute to go. i got to get your expertise what is happening with the iranian nuke talks. i believe the biden administration is going to cave at some point but many are also saying you know they might have to cave just to try to get iranian oil back on the market? >> i really think that is the, sort of dirty little secret of already very dirty dale is that all that concerns them is the political reality they're facing in november and that they are going to try to bring prices down using iranian oil. that is just going to leave us all open to the terrible danger of a nuclear-armed iran. this deal will do nothing to prevent. in fact it may actually hasten it. charles: victoria, thank you very much.
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always appreciate your help and your expertise. coming up we'll break down today's action. did you see nvidia? it was supposed to be down big they're not. homebuilders were supposed to be down big, they're not. ev plays, everyone is asking for dividend stocks. get a pen and pad ready. everybody talking about powell but you might be more concerned about the calendar. kenny polcari talks about it next. ♪. if you shop at walmart, you know
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to a child, this is what conflict looks like. children in ukraine are caught in the crossfire of war, forced to flee their homes. a steady stream of refugees has been coming across all day. it's basically cold.
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and that's pretty good but still it's a lot of frustration. joining me slatestone wealth chief market strategist kenny polcari. kenny, there were some interesting comments in this report that i think are important for the viewers. one, costs are still up through the roof. a recession that impacts our industry and eliminates jobs will have to occur before we see wage inflation to stop. people want a job but once they get it they want to quit working [laughter] so -- >> or get fired. charles: right, this is like, this is real life. this is why -- this underscores the challenges of running a business in this environment. you can't pay the wages. somehow this economy has to get wrecked before companies fund peoplevilling -- willing to vick the take the salary and not quit next week. >> that is the conundrum jay powell is in.
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how deep will he have to force it? what will he have to do to get it there? how fast will he get it there? a long slow death by a thousand cuts or something that happens much sooner. >> i think between manufacturing and the pmi services which came out just the other day which is well into contraction territory. that is important, why? because we're 75% services economy. that is just another data point about the difficulty we're in right now, what it means for the future then where the position is puts jay powell in. charles: it was interesting, flash pmi number was worse than any country in europe. i golly i thought we were the best of all the leaky ships. let's talk about the fed tomorrow. what do you expect to hear from jay powell? >> i don't expect to hear anything definitive. if anyone thinks he will come outlay out exactly what he will do you should throw that out the window. that will not happen. he will remain hawkish.
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he realizes he has to remain hawkish. we heard from five fed heads last week 1/2 came out aggressive. for him to veer from that would create chaos and confusion for the markets and by the way the investors and other members of the fed. i think he will come out hawkish. i think he will stay on the fence but continue to focus on inflation, inflation. tell everyone how important that is because it is running at 8 1/2%. four times higher than where he wants it to be. we'll also get the pce deflator comes out an hour or so before he takes to the stage. i don't think necessarily that will impact what he says unless it completely collapses which i don't see happening at all. charles: but he did say, one of the recent fomc meetings that was his favorite gauge. i glad you brought that up. >> it is. charles: great point. you've been tweeting about september in a very ominous manner. what are you expecting? >> listen september tends to be an anxious month. it is the worst month out of the year. history shows it. typically down 2% which isn't
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the end of the world but considering where we are with the fed, with inflation, with the midterm elections which is now a referendum on not only the biden administration but even the trump administration apparently, there is going to be all this kind of noise that creates nervousness, anxiousness, that will add seasonal weakness in september. i think people should be cautious. i don't mean light your hair on fire, run out of the door, be prepared for more chop and volatility in september. charles: you tweeted about rig a tony, is this the comfort food to get us through this. >> rig tony, it goes right to your bell low, feel good food. charles: kenny, thank you very much, appreciate it. coming up what should you may be buying now ahead of jay powell's speech? this market, i'm telling you it is zigging when everyone says to zag. i have to of the best, ann
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berry, mike lee, will be in studio. get ready after this. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina?
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charles: all right, the market, market marking time, right? i got to tell you it is holding up a lot better than conventional wisdom. think back to monday, right? the big swoon. everyone said i told you so, it is all over, reality is here, the end of that bear bounce, yada, judd today, we went on and on. technically the bear bounce is still alive. a lot of stocks that were written off are looking pretty good. we have ventures founder, ann berry and venture strategy founder mike lee. ann, the volume is light. is there something else underpinning this market? everyone saying the same thing, the market is not listening to the fed. the market is not listening to the mavens of wall street saying it goes lower, so what is it
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holding it up? >> people are on vacation. charles: vacation, what is that? >> there is no new news, there is not a lot of catalyst for movement. tomorrow i think we will see a little bit of movement. charles: mike? >> i'm not worried about low volume markets going higher because there is no panic in a higher market. when your portfolio is up, are you nervous? i'm certainly not. charles: everyone on wall street is like a roomful long tailed cat in a room full of rocking chairs. everyone on wall street is saying powell has to come hard. he has to slam this market. he has to straighten this market out and that means send it much lower. >> i will not listen to powell. i will look at the fed futures while he is speaking. we moved very high probability of a fed rate cut after a pause first quarter next year to potentially a rate hike in the first quarter, no cuts until later next year, the year after that. is moving very quickly. charles: is that bullish mike coming back through? >> look i don't think we'll retest these lows. i think we have some stuff to
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work through. charles: right. >> if he is very hawk. >> we give up 5% of this rally back. we'll not touch it. we rallied enough. this is new bull market started. maybe you get a chance to get in cheaper than today, the worst is already in. charles: ann, deere posted numbers last friday. down 7% premarket. finished session higher, almost higher every day. today it is nvidia. posted numbers last night. stock were was looking sloppy in the after-market. it made reversal higher. what does that tell you? >> i think overreaction. i don't think people are reacting to macro news actually. i think people are over this idea watching exactly what the fed will do watching tea leaves. charles: these reversals are they buy signals, potentially. >> wheels spinning? charles: nvidia, being down and rallying back up, earnings that missed? >> yeah. charles: are people longing through the numbers, saying okay there was a reason maybe they missed and looking at a bigger picture is there, maybe pricing
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power is there? >> i think when there is a miss expectations. missed what people say i kind of get it. when they get it so wrong with expectations that is problem. gaming is not going anywhere. chips are not going anywhere. that is when you start seeing bounces. >> no one is coming on. chinese tech stocks, mike, are you buying them? >> i'm looking really closely i haven't stepped in yet but if this accounting overhang can leave these stocks i think these stocks trade much, much higher this overhang where the chinese companies listed adrs in the u.s. have a special deal where they are not audited the same way as all other companies. so there has been an effort to delist a lot of these names without compliance in the auditing. charles: some names we have been out board are the biggest companies in the world. if they accept, listed go through the same rigors as american companies maybe they would be buys? >> across the board. if this deal comes to fruition these stocks will really take off especially with all the stimulus going on in china.
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charles: i know you like ford and general motors. >> i do. charles: those are kind of boring, no? >> they're get more glamorous. going all ev. they're revving up on the glamour appeal. with the inflation reduction act there is clearly a tailwind. gm announced reinstating the dividend. that is huge. charles: really? i didn't know that. >> testimony to the cash flow generation. i've done well in the names. charles: what about tesla? where does tesla play with that? think tesla is overvalued vis-a-vis these names? >> something really controversial. i'm not in tesla. and i have always chosen to be in the fords and gms once i saw them invest behind ev rather than be in tesla. i look at good core businesses funding r&d in evs. charles: you look at thing called fundamentals. [laughter] >> exactly. charles: everyone is asking about dividend stocks, right, because of this volatility. you know, getting 4% to wait it out doesn't look too bad. mike do you have any dividend names? >> energy transfer, they sold
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off the canadian unit to pay down some debt. the ceo bought a ton more stock. they're having, 7 1/2% dividend and coo owns largest single shareholder in the company, a great endorsement. chevron, paying close to 4%. one of warren buffett's largest holdings. he is not accumulating that as he is in okay dental. charles: that is bigger lift. >> i'm bullish on the energy trade. i don't think it is over. i think it's a good place to hide if you're afraid market. chip stocks, might be good time to chinese tech stocks to trades. someone wants to hold something, not quite the motion in the ocean, some energy names i think pay off. charles: lesson, follow the ceos unless it is ryan cohen. 30 seconds big dividend idea? >> ppp. alliance, efficient tax structure. charles: great to have you in
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charles: all right, so we all know that this latest round of free money will certainly add to the inflation problem, but more importantly it will further weaken the notion of responsibility. you know, many years ago, the father of a friend of mine passed away but right before he did, he told his son, he says i don't have a lot to leave you, but i did work hard and i paid all of my bills. i have no debt. he was so proud of that part. i got to tell you, so many people showed up to the funeral. they had to sit outside the church and they had to put speakers out there. i wonder when i think about that if america pride -- if our pride in lifting ourselves up by the boot straps and paying our obligations is going to pass on as well. you know, sadly as we barrel ahead with this agenda that has nothing by the way to do with economics and everything to do with this notion of justice, we are making sure that there's nothing to pass onto future generations. i mean, think about it, we talked about it earlier in the show, 20 million americans mind on their energy bills, large
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swaths of folks cannot afford a emergency and europe is flashing the lights on why we must stop the madness now. yesterday the president of france warned the citizens of the end of era of abundance. blaming climate change in the russian invasion of ukraine. the real deal is the erosion of growth in process parity in france has been coming for decades. they've been a welfare state with open boarders and municipaltive taxes and even as macron was making the statements, people in france complaining about dividends being paid out by the company's largest businesses. i checked the list, there's only one french company among the top 50 in the world. they should hope for more companies. france one had the fifth largest gdp in the world and soon out of the top ten. ironically it's their green pollicis that might be the final nail in the coffin of abundance there. if they hadn't been so zealous, france would be able to provide power to their nation.
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the hog bush wild in france will be fine just like the college educated folks in america that keep getting big chunks of taxpayer money. they'll be able to say at their funeral, i had no debt but you know what, will anyone admit that working slobs without sheep skins for the ones that paid it a. it's a damn shame and we need to change it soon. lauren similar simonetti in foz claman. lauren: thank you, charles. the fed heads wasted no time chimes in from outwest, james bull l administered saying -- bullard saying inflation will continue and many want to hear if from the fed chair himself and that comes at 10:00 a.m. eastern time when james powell speaks himself and he'll set the tone for the fed's nex


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