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tv   Making Money With Charles Payne  FOX Business  September 9, 2022 2:00pm-3:00pm EDT

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this is "the planning effect" from fidelity. neil: all right. almost to the top of the hour. my friend charles payne, the dow up about 384 points right now, all major averages are up are reversing what had been a steady decline for three straight weeks. charles. hey, buddy. charles: hey, neil. thank you very much, my friend. i'm charles payne, this is "making money." breaking right now, the entire world remembering the legacy of queen elizabeth ii. she was the longest serving monarch in british history, but she captivated the world with her dignity and strength. moments ago king charles iii giving his first public address, praising the queen's devotion. >> throughout her life, her majesty the queen, my beloved mother, was an inspiration and example to me and to all my family. and we owe her the most
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heartfelt debt any family could owe to their a mother. charles: the queen's funeral is expected to take place in less than two weeks. president biden says he will attend to pay tribute to her historic reign. fires are emerging on a hunch that the cpi report next week will be better than expected. the question is, should you be buying? and if you are buying, where? a lot of oversold names, takeover rumors have come back and a lot of people want to be positioned, so what do you do? meanwhile, are consumers better predicters of inflation than professionals? i know everybody at home is saying, heck, yeah. meanwhile, bitcoin is showing a lot of zeal despite the fact yesterday it got three lemons, right? decision -- the nation's enemies all taking aim. we'll cover that. and my take also on how much money was lost in the second quarter. you won't believe it, but i want
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you to say the course. all that and so much more on "making money." ♪ charles: well, it's really, it's been a a really good day for a really good week where this market has exhibited a whole lott of grit,s fighting off daily attempts to pull it down, attempts a week or two with ago would have taken it down much further. now, i think there's several factors for today including positive reactions to key earnings reports. but what i really think is happening is we're seeing investors trying to position themselves ahead of next week's cpi report: if it comes in below consensus, i think it could trigger a monster relief rally. we saw china's cpi for august, 2.5%, down from 2.7%. by the way, consensus was 2.8%. then kroger reported, saying supply chains are improving.
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there are a lot of other signs and anecdotes that that inflation has, indeed, peaked. is that that the buy signal? joining me now to discuss,s rob i luna, optimal capital director francis newton the stacy as well as scott martin. rob, i'll start with you because you were already a buyer, but there's a lot of folks on the fence. the risk-reward dynamics right now, if someone had been waiting on the fence, of going in before the cpi report rather than waiting for after. >> yeah. look, i'm not a short-term trader, charles, but i think this is a great opportunity for people who have a one, two-year time horizon. we said before jackson hole after that big rally if we were a little too hawkish, expect a 10 percent pullback. we pulled back 10%, and what we're trying to do now is get ahead. look at gas prices, shipping prices. these are leading indicators. those are coming down. so where do you want to position yourself? if you want to be looking at
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those growth names that have pulled back, big names down 40, 50%. if you're an investor long term, that's where you have to be right now. charles: scott, what are you doing? >> i agree. i'm agreeing with rob, nodding my head that, because he's right. charles, to your point, waiting for cpi, you're just asking to miss something more. charles, we've been talking about on the show and with our buddy, neil cavuto, it's always darkest before dawn. if you're a long-term investor, even if it's a year, who years, years, five years, what are you waiting for? names are coming all the way back, and if you're waiting for cpi to tell you that the coast is clear, if you're waiting for a godsend of commodity prices to show you all of a sudden commodity prices are off their highs bigtime, then you're going to miss the whole thing. buy before cpi, and if it gets hot, fine. guess what in you've got to layer more in because cpi is near peak or at peak, and it's going to come down, and that gives the fed the chance to stop
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hiking interest rates sometime soon. charles: pre-open we had this big rally. all of a sudden it almost all went away. what happened? james bullard. [laughter] i'm calling him the lee van cleave of the fomc. [laughter] you can hear that sergio leon music, and he turns the corner and shuts it all down. francis, the best dilemma though, in my mind, is they keep the pedal to the metal too long, economy's slowing, inflation comes down, and hay actually push us into something we really don't want to be, and that is a danger to the stock market, isn't it? >> oh, certainly. you know, if we -- if they are able to thread the needle with the soft landing, i think we've seen the low for equities. however, with the balance sheet acceleration, so in the first three months of balance sheet reduction you had 52 billion come off of the balance sheet. it's now slated to have around 380 billion before the end of the year. in the course of the 5 billion, we lost % e -- 4% on the s&p
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500. before the end of the year, yes, that could cause weakness. the other risk in the system is the fact that we're raising rates simultaneous to balance sheet are reduction, and the problem is that when you have 61 is % of americans living paycheck to paycheck, their credit card payments are getting more and more onerous with the passing moments, their mortgage payments in some cases are getting more onerous, you know, you just have more risk in the credit market. so i'm watching five things to see if traders start to once again -- which they're not now -- pricing in a harder landing which is, i define as a credit situation. so watching the dollar which is just pulling back briefly here, watching gold as the safety trade, also the pivot trade. if that starts to kind of take off, watching the 10-year to see if it makes a new high, watching the fed funds, you know, the fed reserve financial conditions and watching that corporate spread over treasuries. that's a big deal. that's not making new highs, but if that thing takes off, watch
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out below. charles: all right. in the meantime the, i'm loving the action, right? i love the my minutiae of the market, right in this is what i live for, right? and what i'm watching is last week the software service names, they were annihilated. oversold. docusign, z scaler up $34. you know, scott,s a whole lot of other things are making big moves, particularly oversold things. you talked about being in this market. do you want to do the bottom fishing -- fishing, or do you chase the finnings -- things that have already gone up? >> i wouldn't chase. you can't be crazy, man. we invest money for a lot of clients, and clients don't want to buy stuff that's 10% off the bottom. [laughter] i'm like, okay, it's the down 40%. nvidia a is big, they don't the want to buy it. you don't want to buy it yesterday when i told you to, so you just have to take the stock of where things are. things are going to be okay. these are generational almost buying opportunities with some
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of the other companies. splurge is another one -- splunk is another one. charles: rob, where are you looking? >> yeah, no, i completely agree. to your point, what a lot of investors have been feeling, i've been logging into my phone looking at my own brokerage account, and that one month number has been just absolutely frightening, but today the it actually turned positive, and i'm in those names. i'm i'm in the docusign, roblox. all that saying is a whole month decimated my portfolio, in three to four days it's been made back, and that's a lesson to investors. you've got to stay the course. and, remember, the names that lead us down are the names that lead us out. that's going to be communications, consumer discretionary. the names that are earlilying today, don't -- rallying today, don't get overloaded. charles: you know what? i never, never, never look at my own account. [laughter] i don't. i i tell you what, i scored bigtime so far because right before june i loaded up on etsy and roblox, and i did see it go
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across the tape. i tell my guy, call me every time we're up about 100%, so i don't get a lot of calls. [laughter] so many stocks are trading below their 50-day moving average. how do you go about -- you mentioned your five things from a macro point of view. from a more micro point of view, okay, let's take advantage of this sucker. how do you go about it -- of this circumstance. >> it's just about the consumer and how far the expectations for earnings actually come down and how many, you know, sort of inventory overloads they have and how much they have to discount that. that's really what comes into play. if you're looking for quality names, you're looking for strong balance sheets, those things are always going to thrive. and remember, even if we get, you know, bad news in the credit markets, the fed is going to pivot very quickly to protect the plumbing in the financial system. he may say i don't care about equity prices, i'm bringing inflation down, but he does care about trades settling. he proved that during covid, and
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he proved it in the third quarter of '19. i still like the defensive sectors. i do like uranium because it's a commodity that has a lot of demand can, and i still like -- i think gold has gotten cheap if you want to get a little bit more defensive in the fourth quarter. charles: you're not worried that gold should have made a big move according to the old script by now? >> it should have. i mean,, real rates are rising, right? so that's one thing to consider. but gold, if we do start -- if the recessionaritive starts to take over -- recession narrative starts to take over the inflation because cpi has peaked, you're going to see some interest in gold, for sure. charles: all right. i've got 30 seconds. real quick, rob, what can change your mind? i know you're a long-term investor and it takes a lot to get you off track, but is there anything lurking out there that has you worried? >> like i said, i'm looking at shipping rates, energy, those are coming down. all the input costs to the cpi
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are moving in the right direction. if that somehow goes the opposite way, there's a bigger shock than i'm anticipating, and you see rates skyrocket above that 3.6 on the 10-year, that's going to start to change my mind. charles: i'm sorry, i say that again? >> rents are going the right way. one hinge, everybody starts turning bullish after they get -- i'm bearish because that's what makes the market go up. charles: i was just going to say i'm getting a little too excited right now. [laughter] rob are, franciss, scott, have a great weekend. thanks a lot. coming up, a golden state ghost town. while once-booming san francisco's reeling not only from a mass if exodus of workers, but look at those living conditions. we've got a live report there because that could the -- be the rest of the nation. also what does the chart tell us about volatility? get out a pen and paper because a very important chart school next. ♪ ♪
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charles: everyone said it was a big test, right? s&p holding at 3900. it held. also we reversed that retracement. those are the key indicators. but now many are wondering what the next big, significant move? either way, 5 or more, up or
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down? i want to bring in managing partner katie stockton. katie, all right, so so we held -- we passed a couple pretty good tests in the last 48 hours or so, but i where do we know, when do you get a signal on the real big move, the next real major leg up or down? >> well, i think we have to rust that the bear market cycle is going to remain in force. i think the down move is what we should remain positioned for. it doesn't mean you can't be oversold bounces or even significant relief rallies like the one that we had off that june low, and yet to me this bounce that we have underway is not likely to be sustainable when you frame it within the longer term of monthly gauges which still point lower. charles: so last time you were on then, and it kind of dovetails to what your answer was, we didn't get a chance to talk about your vix prediction. i've been seeing a laying over the current vix with the
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2006-2009 movement in the vix. the chart is very ominous, right? [laughter] because it seems like we're going to get a period of calm, and then all hell is going to break loose in 2023. you are seeing something potentially similar, right? >> yeah. i mean, i think the comparison -- i'm not trying to use any kind of scare tactic here, of course, but i just hi it means that we shouldn't take any solace in the fact that volatility has remained somewhat low. i think it's something because we're thinking that we're still in this low earth, higher volatility regime. so we trust that the vix will be higher at some point. maybe it doesn't need to get to to that 80 or 90 level that we've seen at past bear market cycle lows, and yet we can brace for volatility event at some stage. and it's likely to occur within the coming months. i think it's just a matter of not taking any false sense of hope based on the action in the vix. charles: but considering every time i --it gets into the high 20s, it stalls then comes down
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quickly, what would be the correlating move in the markets? it seems like it would be down 3% sessions, 4% sessions. >> that's right. so i don't know what the event would be that would drive that kind of volatility, and yet in terms of the inversely-related s&p 500 index, you can trust that a move up to 35 or so which is where there's some resistance for the vix would likely be associated with the s&p 500 dipping below that 3900 level, that retracement that you're highlighting, and testing support around 3815. we continue to feel that level is at risk of breaking on the next downdraft and that, of course, would be associated with increased volatility. charles: not long ago talk of crude oil going to $200. we had these discusses on this show all the time. now it's in free paul paul. -- free paul. -- freefall if. what are you seeing?
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is there a chance it could turn around? >> well, the price of crude oil is actually shared by the prices of other commodities as well, and yet we think the short-term bias of the chart is higher. we say that because we do have some oversold medications that have been affirmed, things like the demark indicator, they are flashing countertrend buy signals. and yet the correction does mark a meaningful loss of long-term upside momentum behind wti crude oil. and it suggests that we may see more of a trading range out of it over the next few months as opposed to the uptrend that we've gotten accustomed to. charles: great stuff. we always learn a lot from you, katie, thank you very much. >> of course. good to see you. charles: you too. more and more chatter about recession. i think all the a experts either believe we're in one, we're heading to one this year or next year. the question, the debate is how deep will it go. i'll ask economist tyler good
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charles: well,'s looking a lot less golden these days, and their main metro struggles to recover not just pre-pandemic levels, but levels they were many years ago. remember the '60s they used to play this great with san francisco song? susan li, she's not old enough to remember that, but she is in industries live right now. [laughter] everybody wanted to live in the golden state back in those days, susan. >> reporter: maybe not the case mihm, because if you look behind me, sure, it looks beautiful, but this core downtown area of san francisco is vital to the city and to the economy. it represents 70% of the city's tax revenues, 40% of jobs. and as you mentioned, recent study by uc-berkeley says san francisco is the last of of the mayor north -- major north american cities to recover from the if pandemic, only 30% of what it was before covid. and also if you look at the
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commercial real estate, there are some serious concerns about an epic collapse in commercial real estate with one report suggesting a drop of 43% over the next few years, and that's even worse than what you're seeing in new york city. the problem is, first of all, crime ask policies. but also the fact that you have tech companies leaving san francisco. they're saying that you can work remote forever, and that includes coinbase, airbnb, lyft and jack dorsey's square given that tech jobs are conducive from working at home. that's having a knock-on effect on small businesses, and we caught up with one pizzeria owner who told us lunch servings are down by 75%. >> we've been through the bust of 2001, we've been through the great recession of 2006-2008, and this one is the worst we have ever seen it, you know? we always think, you know, next month it's going to get better,
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next month it's going to get better. but, you know, in financial district if the people don't come back to work, nothing's going to get better. >> reporter: anecdotally, a story for you, charles. yesterday when we were doing our live reports on fishermen's wharf, our crew -- there was an attempted burglary on our crew in our car, trying the grab camera equipment with a drive-by car. it tells us that maybe the city has changed and not for the better. charles: yeah. the big question is can it change back. susan, great reporting. thank you very much. i want to bring in tylergoodspeed -- tyler goodspeed p. we're talking about the richest city in the world. it's been hell bent on self-destruction. and really you've got to a mission where only the sr., very rich can stay there and and the very, very poor in some kind of faustian deal. other cities are saying we want to take on those same policies. if the images we have seen in
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san francisco and los angeles, if that doesn't stop other the cities from developing these -- adopting these, are is there anything that will stop insanity? >> great question, charles. it's good to be with you. so i think the thing that will ultimately force a policy change in california, specifically in san francisco, is when the money dries up. we have started to see this go discuss that you mentioned, this exodus of tech firms. but thus far you ask a lot of tech companies, and a lot still do want to locate in or near san francisco because that's where a lot of venture capital money is still located, and also there's a lot of talent still located here. once that venture capital money starts to exit to states with lower regulatory burden, lower cost of housing, lower tax burden, then i think you're going to see a lot more tech companies really rush for the exits. charles: yeah. i'm reading where ron desantis, governor of florida, his phone rings off the hook, 24/7, tech company after tech
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company after tech company, because those that are staying there, they built these gigantic headquarters a million miles from anyone else, no one ever leaves there. [laughter] it's a farce if, right? you were at the most lit financial gathering of the year, cato institute's 40th monetary conference yesterday. jay powell made a lot of news and, listen, he talked tough, right? but look at this market. the market does not believe him. where is the disconnect? >> so i appreciated jay's remarks yesterday with, i know jay, i respect jay, and i think he said the right things, and i think he is attuned to the challenge. the trouble is i'm not sure that institutionally the federal reserve as a whole has fully awoken to the mess that they have overseen. and, you know, you look at the papers that they selected for jackson hole this past month, when you look at the papers that
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they selected for jackson hole last year, it's still a federal reserve as an institution that is shifting blame, that is trying to justify their sluggishness in 2021. and, you know, when we look at experience in the 1970s, the fed tried four times before paul paul volcker, they said, look, we're going to act, we're going to get inflation under control, and four times out of four they paused -- paused or u-turned. there's a high probability that they pause or u-turn. charles: i really believe if there's anytime inflation pauses or turns, they're going to do the same thing. i've got less than a minute to go. your thoughts, where is this recession going to be? is it going to be a shallow recession? already in a recession? this is what the big debate is right now. >> my base case, charles, would be that it's the a relatively mild recession just because of the health of balance sheets
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heading into this, into this slowdown. but, look, what we had in the first half of 2022 was a deeper recession than that of the early 2000s. it was a deeper recession than the contraction in '69-'70. it was a deeper contraction than the mild recession of the early '60s. i just don't see where the source of strength is going to come from because business investment is going down with the higher cost of capital. housing is pretty much already in recession. government spending is not going to be able to offset that. and goods consumption is going down, so really the only source of strength here is services, and and i just don't know how resilient that's going to be to declining equity values, declining housing. charles: tyler, great stuff. thank you very much. >> always a pleasure. charles: so, yeah, tyler just mentioned all of these sort of macro factors that are hurting economy and, of course, business. but i think labor really, that's
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where you've got the toughest impact and the hardest thing probably to fix right now. with me now, graziano associates ceo, denise grass january mow. denise, i've got to -- graziano. this quiet quitting -- [laughter] debate, it's crazy. gallup says 50% of workers have quietly quit. 18 percent are actively disengaged. i don't know if that means looking busy but not doing anything. does that mean 3 # % of the people in the work force are doing all the heavy lifting? >> iten means that companies are in danger of having a culture of mediocrity. so it has been a relentless three years of disruptions, and i think that companies need to take back some control. quiet quitting is an old, it's an old fad with a -- it's an old topic with a few name -- charles: right. >> -- but companies have to take back control now. charles: it feels like it's blowing up. and i know a lot of this has to do with social media. i keep reading where it's part
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of this greater anti-work movement. people don't want to work not because they're necessarily lazy, but the dynamics have changed where john f. kennedy said what can we do for our country, everyone's saying what can the country and the companies do for me. i mean, it's a strange mentality out there. >> it really is. i think company should really recommit to the purpose of the company. what are we doing for our customers, and really get behind that as an organization. but then -- charles: how do you get the workers? >> well, that's the thing. you have to connect what their role is in whatever that purpose is. how is what i do for the company going to help advance that purpose. and when you have a little ownership of what you're doing, it makes a better reason for engagement. charles: see, i have a small business, and i can tell you over the last few years, the inability to accept criticism with newer employees, the thinking they should be earning more even though they're not necessarily earning what they start with, i consider myself to be very generous, and that
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understanding that when you go to work and even when you go beyond the call of duty, it's not just for the job or the customers, but with you gain something as well. it's an investment in yourself as well. >> exactly. and i think that, you know, a lot of the employees have -- they don't have the expectations of what is expected of them. and so they set their own expectations of what they should be owed. so really this comes down to a lot more when a person is onboarded when they first join the company, really set the ground for what we expect of you and what you can get in return if you stay with us and grow with us and learn with us. charles: but there are also a, it's not just them, you know, not just social media. janet yellen has said companies should pay people enough money where they feel good. [laughter] so when you have the head of the treasury saying that and you have all these very powerful folks saying those kinds of things, how -- it's going to be tough for businesses, isn't it? >> it really is. so you really need to think about if you have people who want to quiet quit, no company can afford to have people who
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are going to drag down their productivity. charles: right. >> it might be time to weed some people out. charles: always great seeing you, denise. talk to you again real soon. congratulations. [laughter] coming up, we call it the triple whammy. how often do you get this by the white house, the federal reserve and the sec in one day? guess what? it happened in crypto yesterday. take that, white house. also despite firm predictions of downturns, brian belski, he is saying hang in there, folks. hold line. he is here. you know he's been bullish, but he says this is the moment of truth, right after this. ♪ don't do me like that, don't do me like that. ♪ well, i love you, baby, don't do me like that ♪
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charles: so i've got a question for you, what do saving private ryan, hacksaw ridge and the patriot have in common with the stock market right now? in each of these movies, the protagonist urges, orders or acts out the following command. finish hold the line, hold the line! and my next guest is telling the handful of market bulls out there to do the same thing right now, hold the line pro. joining me, brian bell -- brian belski. you know, listen, first of all, when i was writing the intro, i was going to say these movie classics, but i couldn't put hacksaw ridge in that one. >> yeah. i could have put braveheart, but i wanted to stick with the u.s. military. [laughter] you know, the genesis of this was i was on vacation the last 10 days in august, pretty much like the rest of western civilization, and i was seeing all these e-mails, the market's
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terrible, you were wrong. and finally are i said, i can't handle it anymore. so i wrote this report, and then enwe edited and published it on tuesday night, and now it's blown up. it's really driven by august doesn't matter, it's really about september and october. everyone is so keyed up on inflation, and they're not seeing the fact that things were rolling over. lastly, how do we position from here, and i think it still comes back to stock picking, and i'd love to talk more about that. charles: you say august doesn't matter, but to your point, after that rough first half, we had a glimmer of hope. and when that felt like it was fading, you get people who saying, okay, that's the one-two punch. get them to start buying these stocks because not only -- it doesn't make sense sometimes just to stay the course. we want to capitalize on these things, don't we? >> we need belief, we need faith, and the majority of my clients around the world are sitting on their hands still. i don't think the fomo rally has
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even started yet. that's why i think when we have this win, this, quote-unquote, melt-up rally in the fourth quarter, i think that's when the fomo comes, but we've lacked so much perspective in this marketplace. we've forgotten that august is always a low volume month. from a historical perspective, it has little or nothing to do with what happens at year end. august was negative after a very strong june and july, you were wrong. it wasn't a hinge that i wanted to combat that, but i need to add perspective in a marketplace that has none. charles: i look at some of the winners, like distancescaler, docusign, just a week ago had gotten hammered. i think the market's so oversold. so we talk about opportunities. where are you looking for the opportunities right now? institution calls up, brian, i saw the segment with charles, i agree hacksaw ridge was not a classic -- [laughter] but i do want to get back in the
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market. what do i do? >> well, watch bravingheart then. some of those high multiple names that clearly got pounded, where we want you to be positioned are the sustainable, stable growers with with fin-tech which we believe are kind of the consumer staples; namely apple, google, microsoft. even netflix. the key thing that foreign investors are going to come back and buy that stability, charles, because they don't have that stability in their markets either in europe or china. charles: right. >> so i think that's where the money's going to come from. charles: so funny, i was looking at a chart today of the last 30 years, and almost every chart it's emerging markets and outside of u.s. every december and january, 80% of my guests come on and say next year's going to be the year for merging markets or this. stick with america, right in stick with these i amazing companies with these global footprints. >> exactly. i think it's going to take another 3-5 years to right the ships this these other markets,
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and that provides america to do what it's really good at, because we have the best companies in the world, and i think that's what's going to lead us higher. charles: hold the line. check out glory, that's in my top three. >> there you go. oh, yeah. thanks, man. charles: my takeaway on u.s. citizens' enduring pain, i mean, record pain. meanwhile, crypto getting dissed by the three most powerful entities out there, and look at it today. we'll go further into why bitcoin is making a stand. ♪ ♪ i can't get no satisfaction. ♪ i can't get no satisfaction. ♪ 'cuz i try and i try and i tr and ♪i try ♪ what's going on? where's regina?
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charles: you know, crypto hit a weird kind of jackpot if yesterday with. it was three lemons. they got dissed or threatened by three of the most powerful entities on the planet, the white house, the federal reserve and the securities and exchange commission. [laughter] joining me now is off the charts capital president brian dixon. i am don't even -- almost don't even know where to start.
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there wasn't anything new, per se, but it was a reminder. there are going to be hurdles. there are folks out there protecting fiat currency, circling the wagons, and they're going to do the whatever it takes to slow or maybe even derail the defy revolution. let's start with the white house. saying mining could account for 1.7% of our total power consumption, so when i look at this from the if white house, i'm saying, why are they saying this? you know what's next, regulations, expenses, those kinds of things. your thoughts. >> thanks for having me, charles. yeah, regulation is going to happen, and i believe that it's inevitable, but it's brought a lot more capital inflows into the space. according to a study by cambridge university, bitcoin energy consumption is 0.06% of the world's energy. to put that in perspective, it's equal to the amount of energy used globally by electric clothes dryers, and we still use those. we're not that longing up our
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clothe -- hanging up our clothes to dry. and 58% of bitcoin's electrical usage is from renewable energy sources which is the highest fuel mix makeup of any industry in the world. so to compare it to a typical u.s. consumer, a u.s. consumer uses 20% renewable bls. charles: right. >> so the bitcoin network is almost three times the average u.s. consumer. so we've got to put that into context. charles: what do you make of the sec, gary. gensler saying he's going to continue to apply -- they call it the howie test to determine if cryptocurrencies are securities. explain to people, what does that mean, the howie test? >> sure. the howie test determines what qualifies as an investment contract, and if it is an investment contract, it would be subject to u.s. securities laws. so an investment contract is this: if there's investment of money in a common enterprise within a reasonable expectation of profits to be dearrived from the efforts of others --
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derived. so it appears today that the sec is taking the view that almost everything outside of bitcoin may fall within sec jurisdictional control. and that these digital assets meet testify in addition of the howie test. and when we look at this, it's applying a rule from 1946 to an emerging technology of today's time it's really not a fair application, and the sec is looking at differently. and the i have today is really asking for clarity on what is a security and what is not. so we can have companies that'll build in the united states -- charles: right. >> -- and not move overseas. charles: it sounds really disingenuous to me, to be quite frank will -- with you. brian, the audio is not that great, so we're to going to cut it short. i want to bring you back again because you're the real deal. thank you very much, my friend. have a great weekend. >> thanks, charles. take care. charles: joining me now, we've got david dietze. are you in any crypto at all?
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>> actually not. we're still not quite sure how you make money -- charles: are more clients asking about it? >> not recently, charles. [laughter] a year ago hay did and we said we'll is have to pass you down the line, now they're kind of thanking us -- charles: and then, of course, you were supposed to get back to me on this crypto thing. you're, like, i was waiting for the howie test. >> exactly. we're staying clear. we're watching it. i think companies like coinbase could be interesting because they're certainly going to be trading. but especially when you saw what happened with system of those repositive repositories of -- repositories of crypto, basically ponzi schemes that have gone belly up -- charles: yeah. there's been a lot of cautionary tales, and i'm really nervous about regulatory involvement, there's got to be some guardrails. but listen, everything's gotten hammered. you think commodities with this pullback, particularly energy, is giving us an opportunity.
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>> yeah, i do. i mean, look at west texas crude. it's now trading at levels before the russian invasion of the ukraine. that doesn't make any sense at all. so you've got companies also that have the lowest price to earnings ratios, the fastest growth rates is that energy sector. it's very underowned. and i think the key here is that because of climate concerns, the companies are not reinvesting, but they're reinvesting hess than the people can actually -- less than the people can actually wean themselves off -- charles: in other words, you see a supply issue. that's going to be your support for the price. >> big mismatch there. charles: hen you get things like china who last week shut down another city the, at some point that demand's going to come back. >> absolutely. you could have other geopolitical risks too. and, of course, if inflation does come back with a vengeance -- charles: i'm seeing a lot of bottom fishing with different things. one is takeover rumors. yesterday lyft popped on a
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takeover rumor, we know pinterest, i feel in my heart of hearts, that deal will happen, 80% chance. what do you think about consolidation of some of these oversold stocks in. >> i think it's definitely a possibility. private equity is sitting on a load of cash. there's so much money to be put to work. interest rates have moved up, but they've got to put that a cash to work, and as you point out, things like lyft, it's down 80% from where its ipo initial pop was so, obviously, that's ripe for the picking. charles: and another area are just some of these tech names are this general, right? if ironically, some of these, even mega-cap names have become value investments. >> absolutely. and for good reason, of course. their elevations were -- charles: their valuations are too high. >> exactly. and with interest rates going up, of course, because their earnings are more long dated, the earnings, present value gets marked down just like a
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long-dated bond. plus, people don't realize they're some of the biggest exporters we have. with the value of the dollar at a 20-year high, that's putting pressure on earnings. charles: dollar's probably going to come down at some point, the treasury yields are have spiked, they'll come down a little bit. a lot of factors that should help. next week we get the cpi coming out. i think some of the buying in the last three days is because people are hiking or guessing that will be -- thinking or guessing that will be bemine. if it is the, could we get a big relief rally? >> yes, because that's going to put additional pressure on the federal reserve not to be nearly as hawkish. maybe they're locked and loaded for three-quarters of a percent, fine, it's all in the post-decision press conference where we talk about the risk of recession, and that could lay the foundation for a great move up in socks. charles: thanks a lot. covered a lot, appreciate it. all right, folks, we'll be right back. measure
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thanks, dad. that's right, robert. and it's never too early to learn you could save with america's number one motorcycle insurer. that's right, jamie. but it's not just about savings. it's about the friends we make along the way. you said it, flo. and don't forget to floss before you brush. your gums will thank you. -that's right, dr. gary. -jamie? sorry, i had another thought so i got back in line. what was it? [ sighs ] i can't remember. charles: break news, folks. we are going broke and it's not just monetary. now, of course we know all the individual stories because let's face it, we live the pain every single day in the second quarter of this year. i've shown you all the charts and had discussions with all kinds of folks out there, analysts but it's official, u.s. household wealth plunged by 6.1 trillion from the onslaught of covid-19 as the worst quarter in history. what's amazing about this is the
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media is saying the nation is doing great. but inflation turned real wages into mush and we can't get people to go back to work. soon, this will all be a moot point and jobs will evacrate and they'll eva evaporate very fast. all six measures of unemployment moved higher and hundreds of thousands of folks hit the bricks with their resumes and couldn't find the job. black unemployment is 100% higher than white unemployment and you won't hear that unless there's a republican in the white house. the loss of last quarter came from the stock market and one of the only places that will allow for you to gain that great financial freedom down the road. overall, i'm optimistic; right. we have seen and weathered hard times and it's getting a bit more frustrating. how much of this manufactured pain has been aimed at greater destruction of the human spirit. it's about control.
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more for them and less for you. they're not going to dismantle the system and no other way to pay for schemes. it's a real amazing week and this last hour will be the most amazing. luckily you got liz claman and she'll walk you through it step by step. liz: yeah, charles, as we kick off the final hour of trade on this friday, there's a really surprising thing about how stocks are moving right now. it's not that investors are buying. it's that they're not fleeing even after this: christopher waller, a voting member of the federal reserve and he's a decider with rate increases said at a speech in germany around noon eastern time he supports another "significant rate hike in two weeks". here's why. >> i welcome promising news about inflation. i don't yet see convincing evidence that it is moving meaningfully and persistently down along a trajectory to reach a 2% target.


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