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tv   Making Money With Charles Payne  FOX Business  October 20, 2022 2:00pm-3:00pm EDT

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neil: dow down about 60 points right now. they're moving right now to find a new prime minister in britain. lots going on, lots for charles payne to help you with. hey, charles. charles: neil, weigh gave away another huge start to the session. neil: amazing.
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>> we'll try to dive into why that is happening. thanks my friend, appreciate it. good afternoon, everyone, i'm charles payne, this is "making money." of the as i said stocks losing steam as investors started taking good news as good news which is a positive change. the bond vigilantes are back. they ruined one career in the uk. we're talking about liz truss, resigned as uk prime minister after 44 days on the job. how much is the federal research paying attention. i can't wait to ask the man, ed yardeni. special guest, larry kudlow whether or not reaganomics can survive this environment. a used louis vuitton teddy bear is all yours for 32,000 euros. what does that tell us about the consumer? tweet me @cvpayne. is the consumer that strong? kristin bentz will join us at
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2:45. offering information not available to us, including gobs of money they made before the pandemic and after the pandemic this is how i really want to share this with you, folks. i want to hear from you, tweet me @cvpayne. i'm tired of it. it has got to end. we have to speak up. all that and so much more on "making money." ♪. charles: all right, so the market is higher today, at least it was higher today, right? it came out the gate higher and it was really odd because think about this, right? this whole week there has been this weird switcheroo for at least momentarily good news is good news. case in point, we had initial jobless claims this morning, right? they actually went down. the fed wants the number to go up. they want the number to rocket higher. last week was revised lower. until the number this really goes up the federal reserve will continue to pound this economy.
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existing home sales are down for theth consecutive month to annualized rate 4.71%. it was down 4.5%. here is the problem. wall street thought they would be down 2.1%. the philly fed, yeah the philly fed was down but the employment part of it was significantly higher. prices paid made a small rebound as well. you see a little bit of bounce. again these are things, if this news was reversed this morning and market was up huge, you could ask every expert on wall street why is the market up? they would say those are the three reasons. of course the market's up. now, what was the difference this morning? maybe it was the wild card. maybe the shot heard round the world, resignation of uk prime minister liz truss. she took uk politics like a whirlwind which is, by the way, chronicled in her new book. out of the blue, the inside story of liz truss, the astonishing rise to power. here is the problem, the book is not out until december 8th. i'm not sure if anyone will buy
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it. all of this was the handiwork of the bond market. really to be more precise, bond vigilantes. some of you are old enough to remember in 1974 the movie "death wish." took america by storm. charles bronson, was an arc be tech. his wife and daughter were attacked in their home. by the way his wife died because of her wounds he became a vigilante. he uttered a phrase these are the economy bond vigilantes. if fiscal, monetary authorities would not regulate the economy, bond investors do would do the job. joining me yardeni investment, ed yardeni. the bond vigilantes are back. what was the death wish for liz truss? why did they put her out of her misery? >> she was aiming to increase spending, cut taxes, a larger budget deficit over there and
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the bond markets kind of had it, filled with all the debt so clearly the bond vigilantes acted very aggressively and contributed to her fall. charles: particularly in this country the parallels between the united states and great britain. they had some pension issues which we may have. >> right. charles: the housing market is different, right? 44% of their mortgages are variable. certainly not cause for concern but how closely should we as investors be watching this and more importantly should jay powell and company watching it? >> i think we're all watching it very closely because i think one of the reasons the stock market rallies and rallies fail because they suddenly see that the bond market is not happy. so that is what we're seeing today. the bond yield continued to move higher. and that's, you know, consistent with the two-year moving higher as well. the two-year tends to be a
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prediction, markets prediction of the so-called terminal federal funds rate. that terminal federal funds rate keeps going higher. hard to see where it will actually terminate. charles: yeah. >> the widespread consensus fed funds terminate at 4 and 3/4. more people are talking about a five handle 5% and more. charles: cme i watched had a five handle on the top end. >> correct. charles: here is the strange thing. i started talking about all the quote, unquote good news, it is good news compared to consensus. we were out of the gate with gusto. that is not the first time that happened this week. >> right. charles: do you get a sense the market would love to find a way to rally on good news? >> i think the market is getting potentially interested, excited about the possibility that we're getting closer to that so-called terminal federal funds rate. i think it is widely anticipated that the fed will do5 basis points in early november and another 75 basis points in
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december. so, those are awfully big increases. >> right. >> but on the other hand the sooner we get it over with the better markets will like it. i think the markets are anticipating that but getting ahead of things. charles: you and i talked about that. you penned a piece about the midterms and maybe you also hinted or mentioned santa claus, the santa claus rally. could some of the reason the market has been up some this week at certain points be the shift where it looks like maybe the republicans will take the house and the senate? >> i think that is an important point but what i've demonstrated if you go back to 1942 and look at all the midterms the midterm elections tend to be bullish no matter what happens. on balance you typically get more gridlock coming out of midterm elections. combination of the santa
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santa claus rawley and midterms may get us a rally into next year. charles: we certainly need. the bond vigilantes you called it. and it is happening again. talk to you real soon. we bring in ria advisors lance roberts. your opinion on the resignation of liz truss, implications for our markets? >> ed nailed it just right. bad timing of getting elected, what was already happening with interest rates and the federal reserve was already in the process so kind of the impact to the uk economy was already going to happen and unfortunately she drew the short straw but it's a problem coming back here. we have the same things with our pension funds, heavily leveraged on margin. high higher interest rates go, but that puts whoever in office, republican congress or president biden they will take the blame ultimately what maps in the
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economy next year. politics don't unfortunately have a lot to do with the markets but you get plamed for whatever happens in the market. charles: what about the role of the federal reserve? they have to take a look at this. the bank of england made a quick pivot. they drew a line in the sand. i know a week ago, i felt last thursday they would have to erase that line. looks like they won. boe beat 10 downing street. powell has to be watching this to be a little bit nervous, no? >> i think they are. we were hearing a whole lot from fed members over last couple months. they were speaking really regularly, over the last couple weeks a lot quieter, november 2nd, before the midterm elections we will have the next fed meeting. we're not hearing a whole lot from them. there is a lot of expectation that they will hike rates 75 basis points. we might start to see a little bit of shift in hawkish language to being a little more aware of the risk. charles: yeah.
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>> i think markets will like that if they know the fed's aware of the risk at least. charles: i think in the last 24 hours we got a little bit from evans and kashkari. i'm with you on that. you posted i think today about a tactical rally. you said maybe looks likely. you cited downward earnings revisions f we get something like that, relief rally, bear market rally, santa claus rally, how long do you think it could go and how far could it go? >> i think as far as, how far it will go, right now we're looking between 38, 3900, at least for the first leg. we could actually get around to 4,000, 4100 on the s&p by end of this year. once we get into next year that will get a lot more difficult for markets because earnings have not come down enough to account for all these rate hikes. these rate hikes have a big lag effect of six to nine months. so a lot of rate hikes won't hit until next year. that slows the economy.
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that slows earnings. we get the rally, get a relief rally. make sure you sell into it. raise a little bit of cash. take risk off the table. we have to get through whatever happens in the first half of next year before we find a bottom here. charles: so that point, there is a chart you posted from bank of america. i love this chart. i think everyone should look at it. it sort of shows cycles in the economy. suggesting we're in the phase three area, late cycle. all the guests mostly talk about high dividends, high quality. i'm not sure what the hell high quality is, low risk but as we make this dive, how do you handicap this because apparently this isn't going to happen until march of next year? >> right. yeah, look, you know there is actually some stocks out there right now that are trading at very low pes. comcast is a good example of this, trading sub-10 pe. almost a 4% dividend yield on it. verizon is trading almost 7% dividend yield with sub10% pe.
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there are good value based companies out there that will likely weather any downturn better than a lot of high growth companies with no earnings. i think that will be the big separator between what survives over the next few months and what doesn't. don't forget about energy. we're not solving the energy problem anytime soon here. charles: lance, i got to tell you. you're one of my favorite guests. you're a brilliant guy. you have to come up with a quip, a term, or quote like bond vigilantes we'll be talking about 30 years from now. that is the only mission from now. keep that in mind. >> next week you'll have it. charles: sounds good. folks coming up rich folks are spending a lot of money. some say they're spending like it is 1999 is that a cause for concern though? first let's go to chart school. i will talk about how to look at value. we're taking fair value with one of the very best. yurian timber is with us. get a pen and pad.
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♪. charles: all right, folks, welcome to a very special edition of chart school. we're talking about how to find value in this market. i want to bring in really when it comes to this kind of stuff the best, fidelity invests global macro director, yurian timber. you posted a lot of shots i really appreciate. i want to share with the audience. the first one is really compelling, when the economy is crying uncle, right? we talk about this line here are financial conditions. we want them to get tighter. we don't want them but the fed wants to get tighter. so they're getting tighter, the terminal rate, the rate which the fed will keep raising rates with keeps going up. i was under the impression as the line rockets higher we get relief from the fed. how much tighter does it have to get? >> it's a great point, charles, and financial conditions which are a real-time window at least into the financial side of the economy, right? so it is stock prices, the dollar, credit spreads, interest rates, the fed is trying to
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tighten financial conditions in order to slow the economy and in order to bring, rein in in inflation. it does that raising the cost of capital which includes raising the fed funds rate to a point hopefully it breaks inflation not the economy. that of course is a very, very delicate balance. you look at the cpi is a lagging indicator, right? charles: right. >> it is running very hot, 6.6% on the core, 8% on the headline so that is the last 12 months. it's a very difficult game here to try to get that terminal point just right. we're at 5% as a terminal rate. you look at the bond market today which i'm sure you have, the 10-year at 4.20. the two-year at 4.60. charles: right. >> when the rates go up the fair val sue of stocks go down.
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calculating present value of future cash flows, when the cost of capital goes up in the denominator of that formula the present value of those cash flows goes down. that is the vise have been insofar. charles: i have that chart. discount the cash flow, intrinsic value of market. folks say this is the bottom line. how you invest, how you make money, sort of the benjamin graham sort of thing but a lot of guests say it is still too high. come down from 28.7 to 16.3. only a few times in history it has been this low. at least we're getting close to fair value, right? >> i think we are and if you think about it the two-year yield has gone from near zero to 4 1/2 or higher. that is a very, very big move in the fed funds from zero to potentially five, that typically the fed does not really move rates much beyond that and
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remember this fair value concept where you apply a discount rate to future earnings to get to a present value that is a moving target that can move in both directions. so far this year for the last nine months it has been moving in the downward direction and the market constantly struggled to kind of catch up to that lowering level. charles: right. >> but at some point, let's say inflation really does roll over in a big way the fed could just say, instead of five we're going to only four 1/2. that just half a point would make a huge difference in that fair value. that could bring the p-e ratio up a number of points. so i want to caution, you know, that we shin look completely myopically to one side because that needle can move very quickly. charles: i'm glad you brought that up and to your point we also have one of our charts with the forward p-e ratio. it is coming down rapidly. again it is nearing level that marks bottoms before whether
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2018 or in 2020. so again, you know, feels like we're almost there but keep up the great work. we appreciate you sharing it on twitter with folks because every time i see your work i learn something. thankthank you, jurrien. >> thank you. charles: folks coming up, it is not just congress, talking everyone in washington, d.c. make big-time money before covid hit and after covid hit on information that you didn't have. i cannot wait to talk to kenny poll carry. later i will share what you think about this as well. two market experts will help us break down what you might want to do at this exact moment with your portfolio. they're next ♪. what should the future deliver? (music) progress...
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charles: so you know we've got another session where the market tried, tried desperately to rally. we did, had a pretty good move out the gate. we've seen where early attempts have been dashed. investors squirm around. i think what is happening not out of angst really. people want to get in this market in part out of boredom. nobody really wants to wait months for the coast to be clear. especially if you've been hammered, lost a lot of money. bottom line people don't want to miss the bottom. joining me lpl chief financial strategist quincy krosby. and david nicholas. quincy, we're all obviously watching the bond market. it is an absolute juggernaut. this two year-year-old won't stop. what do you make of the meteoric spike that we've seen? >> it's, especially the two-year, it is most closely associated with fed policy. so today you had a spate of fed speakers. they were aggressive, assertive. you saw it go up.
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saw the u.s. dollar go up. you know this morning you saw the yields pull back and the dollar pull back. it was underpinning the market trying to create a rally, a viable rally. that dissipated right when we heard the fed speakers saying no, we'll go longer, we'll go higher and that's what you have. you have a federal reserve intent, intent on bringing inflation down. take a look at the three-month? that has crossed 4% now. charles: right. >> if that inverts with the 10-year it is probably the clearest signal that there is an economic slowdown -- charles: didn't they invert yesterday the three-month and 10-year? i saw yesterday they finally inverted. i don't know where they're at today. let me bring david into the conversation. >> yeah. charles: david, obviously you can say the data supports this aggressive fed but there is also a thing called common sense and we know there is a lag effect.
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we know the cpi data is not perfect. it might be overreacting on rents. mannheim index is in freefall. at some point people will be shocked what happened to inflation and the fed will -- this is what i don't get? my theory they don't really believe they will go as far as they want to go, or say they want to go and jawbone something the number one tool and right now it is obviously working? >> charles, you're right. i said about inflation i think inflation is close to peaking. i know it doesn't feel that way, data, cpi, seeing rents drop for the first time in 12 months. that is not showing up in the cpi data. i want to be bullish. everything here is telling us to be bearish, there is lot to be concerned and worried about. tell investors you still have dry powder. we have 10% of our tactical
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portfolio dry? why? because on down days we're selling long. that will be a market in a sideways channel, charles. charles: speaking of areas of opportunity, quincy, energy is standing out obviously. >> yeah. charles: it looks like that's the place you want to be long. are you, do you have exposure there? >> yes we do. and energy has held up, you know, despite the fact you will see days where oil prices come down but the companies are making money. they're returning shareholder value. and that is not going to stop. by the way, i know you talked about this, the market looks as if it is, you know, pretty sure that the republicans are going to take both house us. it is going to positive for energy but even if it is democrat and republican, apparently there is something going forward that they can agree on, believe it or not and that is to go in and try to have more production. we need it. we need to go there and we need to make it attractive for
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companies. charles: right. >> so we like refiners, exploration and the big integrated names. take a look at that today. charles: those refining margins are, those refining margins are just absolutely mind-boggling. we're in the second week of earnings season which obviously sometimes it feels like a crapshoot, right? i know someone watching the market who hasn't been in it long can't figure out a company with really poor numbers but he beat the street, the stock pops like netflix. someone with mixed numbers with pretty good business development like tesla goes down. david, would you be a buyer of tesla? why does this happen? >> i like tesla. there is a lot of support at the 200 level. the strong dollar is really wreaking havoc on a lot of stocks. that was a big issue with tesla as well. that will show up in apple also. look at companies individually. look at tesla, production numbers run believable. production is up 40% second quarter to third quarter. tesla production is up 50% year over year.
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man, they're pushing as hard as they possibly can push. so i think you have to look at the direction of the company, look at other automakers slowing production, having cuts. charles: right. >> i think tesla is name you want to own here. i think a year out we'll be thinking wish we could have bought this stock at $200 a share. i think money to be made putting money to work, 20 to 30% upside for the stock if the 200 level holds. charles: interesting, companies doing well don't meet the street get punished. companies not doing that well but beat the street get rewarded. i wins we had more time. great stuff. appreciate you both. thank you. >> thank you. charles: all right, folks the liz truss, resignation, wow, she set a record, 44 days. it will be hard to beat that. we'll break it down though, the economic and political impact with larry kudlow. also washington officials including top health advisors who knew about covid-19 in january of that year made tons of money. some are calling it exquisite. i calling it worse thing than that. i think it was a crime.
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is it time to ban congressional trading and some of these other insiders? tweet me @cvpayne. kenny policari i think he will sound off next. ♪.
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♪. charles: all right, so despite the biden administration's positive outlook on the economy, amazon founder jeff bezos making head for warning things are about to get a whole lot worse. edward lawrence live from the white house with latest details. edward? reporter: this is a matter of perspective because if you is anyone here at white house this is one of the best economies they have seen in history but as you know we had two quarters first and second quarters of negative growth. inflation at 8.2%. you have core inflation not just
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near record 40 year highs but it is also rising. that is what really concerns the federal reserve. so it makes sense when you see a tweet like this from jeff bezos saying yep the probabilities in this economy tell you to batten down the hatches. he is not alone. bezos in his view, bezos who founded amazon would know the consumers are changing spending habits. the fed's "beige book" which is part of the data that the fed uses to make rate hike decisions, the districts are seeing consumers make tough choices n the "beige book" says this, retail spending relatively frat reflecting lower discretionary spending, auto dealers noted sluggishness in sales stem growing limited inventories and high vehicle prices and rising interest rates. yet we still have core inflation rising, overall inflation near 40 year highs. economists that i have talked with said some of the data under the hood shows a very troubled economy. now the president finished speaking in pennsylvania. he was talking about the
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bipartisan infrastructure bill and the spending that he is doing from that, even though the bill was signed a year ago, the president has, the projects, none of the major road projects in that bill have been completed but spending is starting to go out the doors, charles. charles: we've seen that movie before, edward. thank you so much, my friend. this morning we learned that individual investor bearishness edged a little bit higher 22.6% from 20%. obviously that is pretty low. that is a million miles below the historic norm. however, bearishness at 56.2% went up as well and this is million miles above the norm. you know listen it has been a tough year, no doubt about it. we understand this market has been tough, everyone if you're bearish you would understand that. there are other reasons out there i think this pessimism keeps gnawing at us. the notion the game is rigged. the elites get all the
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information ahead of the public and good investments in the elite circle they get bite of apple. then there is core left and put it out as ipo. look at this headline yesterday from "the wall street journal" as covid hit washington officials traded stocks with exquisite timing, sold in january, all of sudden they started to buy right ahead of these major stimulus programs. this is rough stuff. joining me now slatestone wealth chief market strategist kenny kenny polcari. there was a deputy to anthony fauci sold up to $480,000 stocks in january, right? they learned about a virus spreading through china. a lot of other u.s. officials who were in the know, they started to sell. this is by the way just the tip of the iceberg. it is brazen. by the way, exquisite is not the word i would use but i can't use the word i really want to right now. your thoughts? >> well, first of all, i want to say one thing i think rules are
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rigged, in not necessarily the game. the rules are rigged in favor what the article points out. all the people basically inside information and information they get well ahead of the general public they react to it, you know, on the information that they have and then they, and then they are supposedly supposed to come out to make announcement what they did or what they didn't do. to the point of the article, how can you not make money when you have all of this inside information? that's the part that frustrates me, frustrates you, frustrates average investors. i spent 40 years on the new york stock exchange. if i ever ran in front of a customer, if i went into customer had a million shares to buy, decided 20,000 ahead of myself and they buy the million shares, they would throw me in jail! i'm out, completely out. this is frustrating to me. frustrating to retail investor, frustrating to some people in this industry. charles: again in congress they
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get to put together these packages. they take money from lobbyists. then they pass laws to help those, it is so rigged, it stinks so bad, it is heartbreaking. i don't know how they get all americans to grab these, a pitchfork, you know, a torch and everyone unite and make them change these rules because the stock market is something everyone should be involved in. i've always been the pied piper of the argument this is one argument you can't tell someone toying nor. >> the argument is, i think americans are disgusted with it. people that are in the market are disgusted with it. the answer is, if you're an elected official, while you're serving you should be in a blind trust. that is it. you should not have access to trading accounts, personal trading accounts or immediate family, spouses and children. they have to be separated otherwise there will be continual loss of credibility, loss of confidence in the system. look, i don't have to say anything without naming names.
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there is a lot of pillow talk that goes on between husband and wife, especially this couple in california that seem to you know, make money every time they trade. so it's frustrating, it is frustrating. charles: let me get you real quick. a minute to go on these markets. i'm looking at things like the semiconductors have been in the down channel. lam research up huge today. had a great earnings report. on the other hand rip van winkle stocks are doing well. ibm, when you told me you liked ibm, i had to contain my laughter. this guy's nuts. it had a great earnings report. do i buy the old names like the ibms, rip van winkle stocks or do i try to find some of these high-flyers that might be oversold? >> well, listen certainly high-flyers that are oversold that are in the space i said it too i think last week they're starting to perk up. i'm starting to get very interested in those names that have been really beaten up but i
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also said to you during this crisis i've been in the big boring, kind of big american that names. ibm fits right in there. look what they did? came with a great report. great dividend payer. they pay their dividend. it is safe. it is comfortable. i feel like i'm getting hugged. charles: i hear you. people are hugged in that stock a while it was a straitjacket. >> i agree. i haven't been in it that long. i have not been in it in a straitjacket. charles: congratulations. great call. i have to give you props like that. folks i know you're tired of the insider trading d.c. stuff. they changed the rules. i don't know if it ever changed. tweet me. i'm @cvpayne. i will read as many as i can later in the show. looks like parody worked, the head of lettuce won. i don't know if you saw this, a head of lettuce outlasts
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liz truss as prime minister. look the head of lettuce is taking a victory lap. there will be serious ramifications for this, including in this country. no one better to talk to about it than larry kudlow. right after this. ♪. if you wake up thinking about the market and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. ♪ ♪ ♪ ♪
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are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. charles: so yesterday, it was an article in "the new york times," you know i'm serious if i'm mentioning "the new york times," right? it revealed the federal reserve and white house have been really busy trying to see if what's happened in britain, this uk-style metdown could happen in this country. the answer is apparently yes but not imminent. the host of "kudlow," larry kudlow. before we talk about anything your thoughts what happened with liz truss because obviously you know the narrative. it is the end of reaganomics, supply-side econmics. it was irresponsible. >> in britain. charles: in britain, you know the same argument will wash up
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on our shores. it is not just a blow for her. they are saying the conservatives will never get back in office after this is over? >> i do think on that very last point they will be in deep yo yogurt for many years. the spectacle of crackup is disturbing. the labour party has better management then it used to be so there is something to that. as far as the end of supply side i don't buy it. as you know i think the cavalry is coming here. there are supply side principles of limited spending, lower tax rates and lower regulations. charles: right. >> i'm not so worried about the united states. charles, one point, in the post-brexit period we had such high hopes that britain would be independent and have a pro-growth policy and a supply side policy and a free trade policy and none of it ever materialized under tory rule so that is disappointing. >> right. it shouldn't be an indictment on
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brexit itself though? >> that's correct. they were dead -- i called brexit magna carta 2.30. they were liberated from europe and craziness of regulations, laws, court, taxes, but they didn't make hay from it. this was tremendous, tremendous blow to the terry party. they're in high inflation and deep recession. charles: listening to the british commentators, they have way with words. they are killing it. the vocabulary, vernacular. i hate brexit. i don't know what the hell they're talking about. yeah, never do it again. >> brexit was on opportunity missed by the uk. boris johnson a friend, missed it. big spender, price controls, total greenie. they missed an opportunity to break away from europe. charles: what about here? powell is watching this. still the fed speakers sounding
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a hawkish as usual. is there a message for the federal reserve, our central bank? >> i don't think so. i think it's a interesting question. correct me if i'm wrong the 10-year jumped over 4.20. charles: the two-year, i can't keep track of it. nasa, it is like a rocket ship. you know, there is elon musk's rocket ship and there goes the two-year-year-old! it went past it. >> you have at tom some point in this cycle why bond market yields in general are below the inflation rate. there will be i think more upward adjustments. the fed is not supporting the bond market the way it used to. as far as some crackup, i've been watching credit spread risks for example. i don't see anything particular going on there. everyone is looking for dead bodies i understand that i don't think the fed is that tight right now and i don't think we're heading for anything like 2008.
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charles: okay. but you are right now quote, unquote bearish? the stock market is in trouble for a while? >> yes for a while. we're in a bear market. you know much more about this than i do but i would say this, the cavalry is coming, you will get a change in congress. we'll see about 20 -- 24. i don't think this is a long term malaise bear market recession. the '70s, 1012 years of awfulness. it took reagan several years to right the ship. i am a long-term buyer. i would say to people. go ahead, commit, do some, do some committing when the market goes down. don't try to beat the bottom. don't be too clever. charles: pick a few green bananas. >> i like exchange traded funds, index funds. dollar-cost-average something not completely out of style. my former professor better at
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princeton, i don't think this is a forever story. we'll get through this. i remain steadfastly optimistic. you know me. charles: why we love you. by the way the audience loves you. >> thank you. charles: anyone out there not watching, the numbers suggest all of america is watching make sure you catch larry 4:00 p.m. right here on fox business. when we -- no, let me bring in kb advisor kristin bentz. i want to talk about the teddy bear. i heard larry kudlow bid on it. i'm not sure if he had the bid. old teddy bear from louis vuitton. 32,000 euros. larry spit out his water. he thought it was 3.2 euros. when you see this, you got economists saying a couple things this is proof there is still too much money sloshing around but by the same token rich people out there are spending. also from louis vuitton, a hell, proves they have the hottest
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brand in the world? >> well they do, larry, that showed up on my doorstep yesterday. charles: [laughter]. >> [laughter]. i'm going to buy it back on ebay [laughter] >> good stuff. >> mine forever. yes, they definitely do preserve their brand loyalty at louis vuitton. it definitely does hold its value. so i agree. charles: where is the consumer. you get mixed messages, banks are saying there is excess savings out there. consumer staples. >> are you -- charles: he is still micked up. consumer staple companies still have pricing power. one thing to say i will raise the price of a candy bar or cheerios but do you see that across the board? >> well it depends what you're looking at. if you're looking at high-end consumer, look what hermes did yesterday, the numbers they put up.
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they're preserving integrity and pricing power. speaking of that, restoration hardware still has that. they opened guest house downtown in your neighborhood. lululemon, nike, they have the power brands that know how to manage their inventory. often tend to sandbag which we like. i think on the high-end you have a lot of brand preservation and pricing power. charles: right. speaking of the inventory situation you do have some of these names that brew it. some major names, yet wall street seems to be warming up to the targets of the world, home depots of the world. face it, even if they have a misstep occasionally, have not stocks in general, retail stocks got to the point where you like the risk/reward? >> oh, i do. i think a lot of them have been beaten down. they all got slapped with the whole inventory issue which a lot of people had to manage. this is nothing new. every brand out there post-covid, post-port strike, and all the problems we have they have to manage it but yeah, i think any weakness in nike, any weakness in restoration
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hardware, hr, any weakness in lulu, those are high-flyers i love, lvmh as well. charles: you have been spot on. they're doing great. kristen, great seeing. >> you thanks so much. charles: we talk to you soon. when we come back i read some of your emails and tweets. i can't wait.
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so you can manage your heart health from home, or on the go. your heart rhythm is normal. no arrhythmias in sight. i wonder what my doctor would say. ooh! let's find out! with kardia, you can email your ekg directly to them or send it to a cardiologist for review. kardia can do all that? all that and then some, greg! kardia also gives you access to heart health reports and automatic ekg sharing. what next? let's get some fresh air. been cooped up for too long. yeah... ♪ kardia mobile card is available for just $99. get yours at or amazon. charles: all right, so now it's your turn to weigh in on insider trading and advantages.
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first, the dumbing down on our education system was not an accident. i can't disagree. eric also has some strong opinions, he says it was a one-shot deal in the beginning. when they realized how easy it was though to keep milling the cow, which is us -- milking the cow, they kicked it into overdrive can, and here we are. they won't stop. another person writes our elderly die alone in nursing home-designed destruction of america, pray for america. absolutely. i think we should all do that every night. and julie writes that we have corruption, only real way to stop it is law. no trading into or out of stocks or holding individual stocks, no trading in in and out of mutual funds while in office, and i agree with that. a lot of people say put it in a blind trust and leave it ea alone. that would give us more trust, right, liz? liz: i trust you, my friend. charles: thank you.


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