tv Making Money With Charles Payne FOX Business August 31, 2022 2:00pm-3:00pm EDT
neil: i don't know where we will end the day but most certainly end the month of august trading on a down note here. all the major averages already down at least 3% in the case of the nasdaq north of, should i say south of 4%. here charles payne to see what he can do to correct that. charles: we call this the summertime blues,. neil: there you go. charles: i'm charles payne. this is "making money." the market frantically trying to find its footing while the federal reserve is frantically trying to destroy all hope. will the fed destruction go too far or maybe they're talking tough? i will have the best in the business to weigh in on this throughout the hour. the new work place trend. quiet quitting. a tiktok sensation, some part of the anti-work movement. that along with great regrets
from the great resignation. can't wait for joanie bilely to get her thoughts. a reality check. induce inflation with more stimulus. time honored act of buying votes is the biggest threat to our economy. don luskin has something to say about it. he will be with us at 2:40. end of summer, beginning of fall, my take on how investors should hang in there because it always gets better. all that and so much more on "making money." ♪. charles: so it has been called the most memorable scene from all stanley kubrick movies, king kong rides. the bomb scene where slim pick ins character, the b-52 the major king kong riding a nuclear bomb down-to-earth after opening the bay doors. the he is waving a stetson taking accomplishment of his mission which was to bomb any
soviet target. he was not aware it would trigger a doomsday bomb that would destroy all mankind. i bring this up, federal reserve is on a mission to stop inflation and by any means possible, including bombing the economy until there is no signs of any hope. this morning cleveland federal reserve president loretta mester reiterated the mission. rates have to move to 4% by early next year and must stay there. she took out any sort of hopes there would be a rate cut in 2023. so far, so far no reaction though from the, from the markets, right? i want you to take a look at this. stock market is getting hammered, no doubt about that. the cme fed watch is still not taking the fed seriously. sure we see it at the next meeting, a big chance there will be a 75 basis-point hike. this will be a new level. then in november another 50 basis points.
good. i mean the fed wants to see this. look after another 25 basis-point hike, it doesn't move. this is going all the way to the summer of 2003. the federal reserve wants a lot more fear than this. what are they going to do to make it happen? it is sort of bewildering in some ways. here is the thing for stock markets. we're so used to the fed coming to the rescue. especially when there is a bear market, right? the fed doesn't drop nukes, they print money. take a look at this. this is what happened in bear markets. greenspan, he cuts rates a gazillion times. bernanke cuts rates a couple times. powell comes to the rescue. now all of a sudden rate hikes? wow. i mean think about this. greenspan, he was on the job a month, this gave him the nickname the maestro. there is always helicopter ben, ben bernanke. the federal reserve right now, say they're not necessarily hooting and hullerring like slim
pickens about have happiness watching stock market get slammed that has investors nuts, right? we have start rooting for recession. all the collateral damage and pain comes along with it. that is awkward position to be in. ii want to bring in gary kaltbaum, kaltbaum capital management and stieffle, barry banister. i have a little tickle. work with me. barry, you don't see recession until mid 2023. does that mean the fed keeps piling on the rate hikes? >> well i think the fed is going to hike rates into year-end. they're already at or above what their level what they call neutral or the in between rate that is neither tight nor loose. they go a little bit above it. they will pause at some point. we think inflation will come down, come down pretty fast. all the leading indicators for energy, food, goods, services
they're all going down. inflation will come down very quickly, which is a little unusual. it is late cycle, but it will come down quickly and the fed will have room to pause. when they cut it will be because of an actual recession. we don't see that until late in 23, the back half. charles: seems like to me the prior screen i had up, you kind of agree with this, maybe the fed the fed get to a position where they're not cutting or hiking a year from now? >> sure. janet yellen, she paused in march of 2016. she paused. she announced a pause and held rates flat. and resumed increases when loose tighter monetary policy. the fed has been known to pause. they paused back in 2007. charles: there was a pause for many years no doubt about, after
they went to zero. gary, let me bring into the conversation. more specifically, janet yellen hiked rates once, the stock market lost its mind. okay, i will not do it again and then she did it after president trump was elected. the fed is seen, the market has always been the tail that wagged the fed. has it changed though? is the story reversed now? >> unfortunately and unfortunately these people have gone coast to coast in less than a year. the people that created the massive distortions and price in yield in the bond market created auld of the bubbles and massive leverage in the markets are now doing the exact opposite, doing it quickly and i must tell you i am stunned that a man named neel kashkari at the fed who these people are mandated about stable prices was happy and quoted happy, that the dow dropped 1000 points on friday out of the
jackson hole speech. i don't even know what to tell you. he is telling every great american who has 401(k), ha-ha, you lost a thousand points. sorry we have to do it. here is my big problem, i've been saying to you for a long time now, they're not doing this because they want to. they're doing it because they are forced to and i do not think they realize how much leverage is out there, overvaluation is out there and you know i've been calling this bear market all the way. i'm really worried about a lot more even from here because of the things they're saying and what they're going to have to do going forward. charles: gary, real quick, i took a long time in my open, you've also said it is sort of frustrating that jay powell gets to play god with all the money printing he is able to do, one single person, perhaps not even this entity should not have this kind of power, right? >> he is the most powerful person on earth. not the president of the united states. i would say that whether republican or democrat. the ability to print up to nine trillion dollars with absolutely no oversight or accountability
on your own whims to stuff into the market, screwing savers and distorting everything in markets where nfts, i saw somebody spent $18,000 an an invisible sculpture, invisible sculpture. that attitude, freed happens because easiest monetary policy in the world. that is coast to coast. why you you're seeing markets doing what they're doing. charles: i was going to email you my latest ape collection of nfts but i will skip. i love your poise and calmness. we don't have a lot of time. how should people be invested in this market? where are the opportunities then? >> oh, i think if we move into the fourth quarter, the pain from this ukraine war leads movement towards a cease-fire, at least negotiations, if oil is
coming down, then stocks will go up and typically growth stocks win when the economy is just holding on, not overcooked but certainly not a recession. charles: okay. >> and inflation such as commodities come down. so that is software, media, technology, hardware like apple, retail, semiconductors, that would be the winners into the fourth quarter. charles: all right, guys. thank you both very, very much. a great discussion, gary and barry. we didn't do that on purpose. want to bring in macro mavens founder and president, stephanie pomboy. there are a lot of signs of recession. one i thought was intriguing i saw other day i want to share with the audience. conference board consumer expectations versus current conditions. every time it has gotten to a bottom historically, this blue line, folks as you may know is recessions. so it has happened every single time on the eve of a recession. look where it is right now. this suggests we're either, really close to recession or maybe even in one. what do you think?
>> there is -- [inaudible]. confidence measures university of michigan sentiment survey signaling recession for months and it has taken the conference board measure a little time to catch up which is actually very typical of those two measures. you find that this university of michigan survey always leads an economic turning points. i'm not sure why but it has a reliable tendency to do so but clearly consumers are getting squeezed hard. charles: right. >> real disposable income is as negative as it has been since the 1970s, not surprisingly since we're looking at inflation the highest level since then and now they're going to get hit with these rate increases. obviously we're seeing a complete collapse in housing activity and that because volume
precedes price will result in the decline of value of homes -- [inaudible] that will have a wealth detect on a lot of consumers what they're feeling in terms of income stress. so it is not for nothing that they're starting to feel pretty blue right now. >> all right. stephanie, by the way your mic is going in and out. we may have to bail on this if that continues. i will talk maybe you adjust it a little bit. >> okay. charles: gary was just talking about the federal reserve, how much power it has and how much damage it has done. i think everyone agrees. even before the transitory debacle, they didn't have a lot of credibility on the street. now they have no credibility on main street or wall street. are you concerned they may overdo it here? that they may, you know, put too much damage on this economy? >> i think this whole debate about how much more they're going to tighten totally misses the point.
we've already overtightened and you can see it in terms of all of the measures, look at the bond market. it is clearly signaling that they're too tight. credit spreads are blown out. corporate credit ratings have completely deteriorated. the economy, like i said, housing activity, we've never seen declines of this speed and magnitude before. not even during the housing bubble bust. so all indications are they have already overtightened. it is just they're navigating through the rear view mirror of -- which is a lagging indicator. so i think we're going straight over the cliff like "thelma & louise" with powell behind the wheel unfortunately. charles: that could be a good way to start the show. instead i used famous scene from dr. stock exchange love -- "dr. strangelove." earn estimates have not come down. they have come down a lot. energy is up obviously. utilities are up. how would you be positioned in a market like this? i know it is combly indicated, but with 30 seconds to go, if
your an investor watching this, embracing for the unknown, the fact that the fed is blowing it, where do you want to be positioned? >> i would definitely want to be defensive. personally i'm not in the market at all. i am in cash and gold and treasurys. charles: all right. stephanie, that is all i needed to know. you're going in and out again. cash, gold and treasurys. [laughter]. thank you so much. great seeing you. all right, folks, there is new data out that finds that small businesses, let's face it. not only can they not compete but they're going under quickly. it is all about inflation. also how bad could it get as the s&p 500 slices through the 50-day moving average. i have a history lesson that you must see. grab a pen and a paper. i've got one of the best. chart school is next. ♪
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and 50-day moving averages, right? we've recently seen it work really well. on the upside we saw it where the market, the s&p, had this amazing june rally and it hit the 200-day moving average, and bam, just like that it has been free-falling. now we're cutting, we're cutting through the 50-day moving average, and you say well what's wrong with that? let's take a stroll down history for a moment. we'll go back to 2007, to july of 2008 because something very similar happened. again we hit the 200-day moving average, couldn't break through. fell here to the 50-day moving average. not only did we retest the lows but we went below there. what happens when that happens? it does sound scary, right? it is scary or can be. this same chart now, this is what happened, 2007 to 2009, this is what's going on. that failure led to a mammoth free fall. i'm talking really, really
significant free fall, over 8 months we lost thousands of points in the dow. we lost big percentages in the s&p and we didn't bottom until march of 2009. so with that i want to bring in one of my favorite chart analysts and someone who really, really we learn from every single time he is on the show, andrew thrasher. andrew, let's talk about the lessons learned when these key metrics either don't hold or do hold, or whatever. in this case the 200 day worked textbook-like, but now we're sort of, we're sort of in that point it feels like if the 50 fails, you got at least to talk about retesting the lows but maybe lower? >> you definitely have to talk about it. the 200-day moving average opened up a kissing booth and the s&p stepped right up, gave it a kiss and started to run back away. the fact we're seeing levels like that hold resistance and be respected tells us the bears are still in control. i was on the show two weeks ago. we talked about it. if we broke below 4250, 4100, we
would see further downside. we said the vix was the biggest risk to the market. near the volatility expand higher. i think you're right as we break below the 50-day it puts a possibility we could see a retest of the june low but first we got to get through 3900. below that i think we get back to june lows. charles: one chart you put up i thought was fantastic showed the s&p 500, the percentage of components at their 20-day low. we can see the number spiking near highs, that we've seen in other, i don't know, other parts of the last few years but what is the significance of this? >> it is telling us what we're looking for in terms like that is expansion in either bearish or bullish breath. this case bearish. each day we're seeing market go down seeing more and more stocks getting a new 20-day low, tells us not selling in a handful of stocks. we're seeing expansion of selling. started out 40%. got to 40, 41%.
we started getting more than half the market yesterday hitting a new one-month low along with the market itself. tells us we're seeing expansion in selling which isn't ideal. charles: one minute to go. talk about the vix for a moment. there is a lot of ways to looking at it. now got to this point here back when the market was bottoming in early june and a lot of folks, almost every technician said it has got to go higher. most think it needs to go back to retest 34, 35. we made a big pop. still the gap eventually gets filled, what are you looking for specifically out of the vix right now? >> yeah. what the, any technician tells you the market has to do something. you have me to come on tell you no it does not. the market doesn't have to do anything we tell it to do. charles: right. >> we're looking volatility right now as it starts to move higher a lot of what drove the equities higher the fact volatility started coming down. we saw volatility controlled funds, started piling back into equities doing so based on their
volatility targets. as volatility moves higher we see the reverse of that start seeing them commodity out of equities go back short, back to cash that can add fuel to the fire. why we start seeing 2, 3% down days we see that being exacerbated by volatility controlled funds pulling back out of market, same ones that drove us higher from june. charles: andrew, appreciate it. love, love, these segments. all right, folks have you ever been guilty of quiet quitting? let me know, really. tweet me @cvpayne. we'll dive into the trend. maybe it is part of something even greater. i have congressman jody hice coming up. he is demanding that speaker pelosi hold president biden accountable for the student loan giveaway. he sent a letter with a lot of backers but is it even constitutional? we'll get his answer. he is on at 2:30. ♪
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♪. charles: well turns out disengaged employees have a new moniker, quiet quitters. many experts calling the growing trend and its counterpart quiet firing, problematic. madison alworth is live in our newsroom with more. madison? reporter: charles, yes, quiet quitting has been a movement on social media. it is employees doing less than work but still bringing home the same pay. now we're seeing some of those employees facing consequences. nearly half of workers have seen quiet firing happening at their work space. that is loosely defined by when an employee does not get raises, loses responsibility and is in general passed up for any sort of advancement. the hope is that that employee eventually leaves on their own. both quiet quitting and firing happen when the employee is not
engaged, which 54% of the youngest workers say is the case. so some of those workers, they will choose to find new jobs or careers but for those that choose quiet quitting, experts warns that not only puts you in danger in your current job but could have longer term effects on your career. you lose a group of people that could have been references, to help provide future job opportunities for you. hr professionals and executive consultants i talked about, they point not being engaged in your job is a problem but the solution is not actively disengaging even more. charles? charles: thank you very much, appreciate it. all right. i want to go to someone who knows about this really well, employee bridge, chief workforce analyst joanie bily. there is a lot of theories out there. i heard this is part of the
anti-work movement. one video on tiktok has 40 million posts it goes right along with all the anti-work posts. just your views what this is all about? >> well, first of all i have to say, charles, this is just another concerning trend on tiktok. you know when did it be okay to not do your best at work, to not put in the effort, to not go above and beyond and this trend has really caught on, on tiktok with the younger generation. and it has been a strong job market. i think maybe employees have felt like they, you know, have been in the drivers seat but we're seeing that is starting to shift and employers are going to be more in the driver's seat as things tighten up in this market, employees are really putting their jobs at risk. charles: yeah. >> this is going to backfire on them. charles: i agree a thousand percent. take advantage while you can of
all things going on but don't get too cocky with it. in fact this morning the adp unveiled the new jobs report. they retooled the whole thing. it came in significantly below consensus. couple things stood out to me, job stayers, made 7.6% a year ago, that is their wage gains. if you change your jobs, 16%, that is sort of corroborates the notion that the labor pool is not just people who are out of the workforce, joni, i think it is people who are working right? they're never currented but on the prowl it seems to me. that is a huge difference. if i can get 16% i'm beating inflation. otherwise i'm losing? >> yeah, you know, it is a good job market still. with all of the headline numbers and i know all eyes are on friday to see what the august i don't know report will be but job openings are up. wages are significantly up. iemployees are still in a good
position. if they're not engaged in the work they're doing, if they really find themselves they're not happy, it is still is a good time to look for other work but they need to remember that they can't burn that bridge, you know, and not have a reference for their current employer but it can be a good time to look for work. charles: right. >> to get a new job, to increase your wages, to make more money. there is tons of opportunities out there over 11 million open jobs. there are more than two open jobs for everyone person that is unemployed in the united states. so it is a great time but we need to get people back to work. labor participation continues to be one of the biggest challenges in our overall economy. charles: right. >> we are still at record low labor participation, 62.1%. so we have some challenges, charles. people don't want to work and even the ones that are working are saying that they're really not engaged. i think we need to get back to
what this country was built upon and that is hard work and having a good work ethic and putting in the effort to do a good job. the jobs are out there. you can increase your earnings. charles: joanie, i agree with you 1000%, there is one distinct loser out there. i have only 30 seconds, one thing stood out from the adp report, small businesses lost 40 thought workers. bilge businesses gained 50,000. small businesses cannot compete in the inflationary wage spiral environment, we'll see a lot of them go out of business, aren't we? >> i think small businesses are certainly at an disadvantage, they don't have the reach and tools to attract talent. if you are a small business owner, i think working with your network and presenting why people would want to work for you in the environment and maybe flexibility that you can offer employees is going to be key.
but they certainly have some headwinds, you know against them because it is still a pretty competitive market. charles: all right. joanie, great seeing you. of course friday is the big day. we'll talk real soon. joining me now georgia congressman jody hice. congressman, on this show we've been talking about inflation, the slowing jobs market itself, that adp report was a shocker. the thing they have in common? they're both tied to free money. free money from the government, particularly the fiscal government, has done a tremendous, you know, problem. it created this immense pressure on inflation. a wage spiral that is out of control and small businesses are suffering. they're going out of business in this so-called boom economy. is anyone in congress looking out for them? >> well, look there is a lot of interest but you're exactly right we cannot spend our way out of debt, nor can we spend our way out of inflation. we got to get back to work and we've got to get these things under control. this is not rocket science type
of economic issues but we have an administration right now that just keeps throwing gas to the fear that is already out of control rather than reining in the problems and addressing issues that will help the american people. charles: well, i don't even know if it was gas. this was an avalanche they threw at it. talking about the college student loan debt forgiveness. you led 93 colleagues in a letter to speaker pelosi about president biden's loan forgiveness plan. what was the main point that you were making in this letter? >> yeah. there were a couple of them, probably the main point it is unconstitutional what the president has done. we have three different branches of government all responsible for three different things and it is up to congress when it comes to taxing, to legislation. these types of things. the president of the united states does not have the authority to forgive federal student loans and we're talking to the tune of $500 billion. somebody is going to pay for it.
it is going to be the american taxpayer and somewhere in the ballpark of $2,000 per taxpayer just got on the hook for this unilateral decision by the president. charles: so representative, here's the thing, it's, there is a letter you wrote, great, but is anyone legally challenging this? is this going to go to court? can someone take this to court? is there anyone in d.c. looking out for the cab driver who couldn't go to college or the person who went to college and paid it off? >> we have to go down that path. i feel absolutely confident there will be legal challenges. hopefully there will also be resolutions and issues from congress to not appropriate these funds. but look, we have nancy pelosi herself july last year who came out vocally stating that the president does not have the authority to do what he just did. so our letter was in hopes that speaker pelosi would stand by her own words and would join us
in standing against the president. that would be, i guess you could say the best-case scenario right now because of course, she is the speaker of the house. for the majority party and to have her influence to help those of us who are trying to stop this would be a huge help. now whether or not she is going to that is an entirely different issue. charles: yeah. >> in spite of that she came out publicly against this a year ago it seems as though right now she is supporting the president but, we've got to stop this flip-flop and address the problem and hopefully she will come around and help us with this. charles: yeah, i got to tell you, i hope you're right but we're talking about speaker pelosi. she knows every trick in the book and it is not unusual for her to say one thing and do something else in the same breath. this is really, this is against the constitution. it is against the ethos of america. it is going to backfire economically. it is going to backfire spiritually. i feel sorry for any kid in
ninth grade right now, if you plan to go to college your tuition went up a lot more. congressman, appreciate it. >> thank you, charles. >> we'll take you to fundamental school. if you think chart school was fun wait until this one. phil blancato is in studio. we're discussing the latest from the russia invasion of ukraine and how the growing geopolitical situation could actually impact america sooner rather than later. ♪ if you shop at walmart, you know that with thousands of new rollbacks,
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♪. charles: all right, so the list keeps growing. what list? the list of states giving out money. nows stepsably it is the to fight inflation which will only be stoked by people spending all of that free money, right? unlike the biden administration though i suspect these governors know that the inflation risk,
they know about it. they're turning a blind eye. what they're doing is good old-fashioned buying votes because that never goes out of style. going to bring in now trend macro cio donaldlous skin. we -- don luskin. add pennsylvania to the list. sending out $2,000. calling it inflation survival. is this the definition of insanity or what? >> i love the way these people name their initiatives, right? so this gigantic tax and spend program that was just put in place is the inflation reduction act, right? this is now the inflation survival act. this, governor wolfe, he ought to be distributing crystal meth to everybody call it the addiction survival strategy. this is absolutely ridiculous. inflation is one thing only, always and everywhere. it is too much money chasing too few goods. we obviously don't have a too few goods problem anymore with
gasoline. gasoline prices are down 11% in august versus july. they were down 6% in july versus june. so we have more plentiful gasoline and now $2,000 rattling around in the pockets of every citizen of pennsylvania. that is an absolute formula for inflation. charles: although it might be one hell of a formula to win a tight election. let's keep talking about insanity. i want you to the, let's be number one place for it, california, now, folks they were being told reduce energy use, particularly four and 9:00 p.m. that is system is most stressed. less demand and solar available. in addition houses are being asked to set thermostats at 78 degrees. avoid using large appliances. avoid charging your electric vehicle. to me, don, this is prime example of why we need to be drilling and slowing down or phasing out gas-powered vehicles, which would be illegal
in california not too long from now? >> insanity is the word for it but there are two levels of insanity. these ridiculous antigrowth, anti-well-being economic strategies are of course insanity. but at a higher level, what is insane is californians keep electing politicians who keep doing this. now i know there is something of an exodus from california. i myself moved from california to texas but it, amazes me that people are just laying on their backs, taking this from their leaders this is absolutely ridiculous. what are these people thinking? charles: it feels to me if the perfect faustian deal. you have a few rich industries there. you know a big strong tax base from successful tech companies. and almost everyone else in the welfare society that is the barbell approach to economics there. i got a minute to go.
you're one of my favorite man of wisdom, that for lack of a better term. >> ah. charles: the geopolitical things that are happening, ukraine, launched a counteroffensive but seem to be seriously outmanned, outgunned. meanwhile the solomon island banned u.s. navy from docking ships. feels like the fuse is lit. at some point it will blow. are we ready for it? >> no, we're not ready for it, charles, you really can't get ready for it. the ukraine invasion and the western world's completely supine reaction to it as sent a memo loud and clear to china, which is, do what you want, exercise your influence anyway you want and take over taiwan if you want. there is really nothing anybody is going to do to stop you. so just go ahead. and you know, thank you, speaker nancy pelosi, for your reckless little adventure to taiwan, gave
china to excuse to endlessly rehearse the attack on taiwan. at least one of the things that was keeping them from doing it they would have to improvise. thanks to you, nancy, they're rehearsing it every single day. what we'll do about it? we'll do nothing. yes the fuse is lit. getry did i for get ready for really loud noise. charles: don luskin, thank you. i will give my take-away on the brutal winter of investing but why you need to hang in there. companies bringing back dividends in economic slow down, it is still relatively low but we'll go to fundamental school with phil blancato how to pick the right companies if you're looking for dividends. a lot of you tell me you are. that is next. ♪
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psoriasis really messes with you. try. hope. fail. no one should suffer like that. i started cosentyx®. five years clear. real people with psoriasis look and feel better with cosentyx. don't use if you're allergic to cosentyx. before starting get checked for tuberculosis. an increased risk of infection, some serious and a lowered ability to fight them may occur. tell your doctor about an infection or symptoms or if you had a vaccine or plan to. tell your doctor if your crohn's disease symptoms develop or worsen. serious allergic reaction may occur. best move i've ever made. ask your dermatologist charles: folks, time to go to fundamental school. joining me now advisor group chief market strategist phil brand caught toe. last time you were here, we talked about you being in dividend stocks. you singled out master limited partnerships. for the audience, explain what that is. >> think about a toll road, driving down the new jersey
turnpike, pay a to, you don't own the toll, paying a fee to go through it. that is pipeline. oil, gas, water through a pipeline they charge a fee. the higher demand, higher fees, higher revenue, higher dividend. one of my favorites way to own security with big dividend to really prevent volatility in your portfolio. charles: so i grabbed a slide from one of the master limited partnerships out there, from investor deck. by the way, folks, you need to look at investor decks. this is what the professional investors look at. this is from enterprise epd. this is interesting, here is the line, capital that came into the company. this is cash from operations and then other distribution this is $5.9 billion. how much did they give to investors? 4 billion through dividends and this is what you would love, a little bit of money through buybacks. $4.2 million.
why is that amazings? 72% of the capital they raised. that is lot of money. they're giving it all back to shareholders. i know you like this, can you run a business like this successfully giving away 72% of it. >> first of all they're required to. because they're a partnership, they're required every quarter to pump out revenue. because tax structure, much of that money is return of capital. it is tax-free. we built the infrastructure. we take a piece from management. rest give out to investors. they need funds to put more pipelines in. >> seems nuts more people are not in the nlps? >> they are ses stroll it the price of oil and gas. can go higher, when demand is lower, can go lower. so much the volatility. charles: that is great point. oim investing for dividends. make sure the cash flow is sustainable. make sure the business is sustainable. you talked about that. when i'm looking in the investor deck, this is great, 7% dividend
can they keep going. the company is telling me it can. where we are right now, you know what? coal will run out in dozen years. then oil, and then natural gas. so they're saying their time line before maybe stop doing business is 2050. that is long enough period to be in the stock. so you're comfortable with that they will pay this dividend for a long time? >> we need pipelines. we're 350 billion to 600 billion under served in the united states with pipelines. we need just to get the gas where it needs to be. you see what happened in germany, europe. even the u.s. we don't have enough gas to supplement lack of oil. it is demand. you need it. great opportunity for at least 10 years. charles: this is not chart school but you always look at the chart even if you're a long-term investor this is pretty good-looking chart this is one-year chart. maybe if you take that out maybe you are off to the races. think about price of natural gas going through the roof. europe is paying 20 times higher this year than last year. producers like this that create liquified natural gas sent
overseas or in the united states benefit from the big fat margins. a way to win the energy game. make some back on the other side. own them up to get the dividend, shield your portfolio from volatility. charles: i always love that idea. less than a minute to go. a lot of companies stopped paying dividends in 2020, some even before that. a couple come to mind. disney doesn't pay a dividend. buying doesn't pay a dividend. these are gargantuan companies with moats. would you wait to buy them or wait for their dividends? >> i would not. those are great companies. look what happened this weekend, boeing may launch the biggest, fastest rocket ever. they have rebuilt their balance sheet. i ace good solid company, disney, conglomerate, look at last revenue numbers. awesome because of the diversified nature of the company. i do like dividend payers right now. they shield volatility. the way to do it, which dividend
payer payed down the debt. costco. company balancing both. paying off liabilities still returning money to us. charles: you're looking at balance sheet even before the income statement? >> exactly. charles: phil, great, great stuff. >> thank you. charles: coming up i give you my take-away on the summer market blues how you make it through the fall. it will be a brutal winter but it doesn't have to be. we'll be right back. [acoustic soul music throughout] [acoustic soul music throughout] [acoustic soul music throughout] [acoustic soul music throughout] like many families, the auburns value time spent together. to share wisdom...
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♪ charles: right, the syrup wind is leaving and the market is sensing it. summer is just about over. for me, it's always a melon cali time but the blue co-larra evenings are ending a bit earlier and half of the summer rally is fading and we've got to brace for fall. as september has been a cruel month for stocks, you'll see a big ramp up from the chart in volatility into the rest of the year. despite wall street's obsession and individual investors and how bullish they are, the fact of the matter is they've never been this bearish before this point in the year on the verge of setting a major report. the market has been a gut punch including the experts and they blame it on retail investors. folks, this ultimately is a game
of survival. you've got to survive first and thrive second. along the way, you keep learning. outside it's been summer but in the market it's been a brutal winter for investing and all that will change. hang tough, keep learning, i hope you keep watching the show because we've done extraordinarily well in the ratings, and i want to thank everybody out there and tell your friends about us. in the meantime, here's cheryl filling in for liz claman for the next hour. liz: didn't know you sang on television it till today, charls payne. we begin with this market alert, everybody. we have another day starting the show across the borderline after stocks saw their biggest three-day decline since mid june. dow down 216 and s&p down 49 and these last days of august sucked up any hope for a summer rally and all the indexes are closing down about 3% or more
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