tv Making Money With Charles Payne FOX Business March 26, 2021 2:00pm-3:00pm EDT
so across the country, saying there is turnaround coming so it's real, they are planning for it. charles payne knows. i, charles. charles: hi, neil. jcpenney, if they say things are getting better, you better believe it. this is made of bloody. breaking right now, s&p fire and the nasdaq is hanging in there. just like stocks overall are starting to learn how to live with higher yields. financial media cannot stop the individual investor is a revolutionary continues and at this moment, you heard we'll talk about it, the pennies are being spent. with stocks you should on to get a piece of the action, don't worry, we've got you covered. the economy is booming but inflation is booming and people don't work when they don't get
free money, what does this mean? i'll get reaction from brian and fallout from the president bidens first press conference, the calling of gop six new voting laws, unity, reaction from congressman coming up so much more on making money. ♪♪ picking up on yesterday, an impressive session, yesterday we saw a huge reversal marked by the move to the upside game stop, interrupted typically higher, maybe it wasn't led by games that but here's the thing, the property investor and one higher, market fallout from the financial media could not contain its joy at game stop
being lower after they posted their financial results a couple days ago, yesterday morning, the stock and all the individuals who somehow were wiped out. this up because i think investors must remember when they owned a piece of business going to achieve the same thing everyday, trying to do great. obviously some do better than others, they respect the message of the market but then they changed the last year, march 23 when the market bottom went up and everyone said it would go down. i want to bring in chief investment strategist, jim fulton. as an article on the money magazine, there are 200, i think 200 and probable nobody's, $2 trillion market cap and your colleagues say these are big bets and revolutionary areas and industries, some are going to be big winners so what you make of this tug-of-war in this crazy
disdain for the game stop crowd? >> at the end of the day, it is hard to have anything but excitement about attracting a new younger demographic into the stock market. it only does good things long-term, it will be more liquidy to the market spread the ownership of capitol in this company more broadly, maybe labors even and everyone who has a greater piece of the pie probably greater cohesiveness down the road but it certainly means there's more capitol available for innovative entrepreneurs to put the gap to work. charles: i agree, 1000%. we saw where the complaint was not in the market. with respect what's happening right now, i'm starting to get the sense they're getting accustomed to the notion that yields are going to go higher, it feels like shock factors are wearing off.
you want your thoughts on that and where is the best place to be positioned right now? >> i agree with you, i think the bond yields, the problem is not the level, 170 or 165, that's not challenging, and economy that might close as much as 8% but the problem is the speed of their advance. the basis for the month, the stock market essentially a crater under that but if they go up and pause, which i think they are doing, the stock market will deal with that quite well yields will continue to go higher, they might reach 2% later this year but if they do, the stairstep fashion, the type of growth we are likely to have been spending and gdp and profits is more than enough to withstand a 2% yield and move higher in the interim so we're going to get a correction sometime but i still think this is year one of a
multiyear expansion and multiyear market most likely so living through correction or feast on if we get one because i think there's still more time left longer-term. charles: is there a particular niche in the market you want to be over in this scenario you played out for us? >> you that. i think you want to have economic sensitivity in your portfolio. the gives biggest game in town, we are going to have a world growth rate in the economy is one of the strongest growth rates of the entire postwar era and you want to be, only companies that have leverage in that scenario so cyclical sectors particularly the industrials, materials equal weighted consumer discretionary plays overall, i think the financials will continue to do well, bond yields going up and i
would have a small cap, the problem with small caps, a sluggish economy, they get some heat in the economy, they are going to do better and i think the emerging market, if the dollar with going up, the emerging markets will participate big time in the coming year. charles: thank you so much, have a great weekend. always appreciate you. i want to bring in now the market case group managing director and key advisor for ceo, it's official, wall street has written off tech names and makeup growth stock, get rid of it. why are they wrong? >> wall street and hyperbole never goes together so i wouldn't exactly say get rid of it but i would definitely get out of the way now because we are seeing to major happenings here in most of the mega cap.
one, they are in caution phases and i take that seriously, that means trading under the 50 day moving average and two is the momentum in terms of velocity of price movement declining so that tells me right now is not the best time, maybe we will see another flesh and if you want to look at one mega cap, look at apple which right now is right above its 200 day moving average, if it breaks to 17, it's trouble. if it's between 217 and 225, takes up to 25, i'd say yes, it's time to get back in. charles: right that back down, i know you like with technical what is this flight opportunity? how are you weathering the storm? >> we are definitely under what i shared a couple weeks ago but you cannot abandon it. my two favorite in this space would be google and microsoft and i think those are good buying opportunities but we are going to be in this environment the next few months so they are
not going to get the upside other sectors are but abandonment and those companies i don't think is pretty. charles: i think they recredit before the year is over, before the next year is over in the next year end the next year end the next year. let's switch gears because a lot of folks love financials and love it even more after last night's big to allow them to receive big dividend payments. are you buying big banks? >> i like the banks here, it's been a while since i left i'd like to the bank. i think it's crystal clear, the tenure has been ahead to present sometime this year. given the short end of the curve low, the yield curve is positive for the bank. these banks that have customers on the consumer side should be very profitable over the next few months so i am a buyer. charles: arthel.
>> i obviously the whole market has to hold up, that's going to be part of it and i am concerned that i said before about the momentum across the board but in terms of banks, we like wells fargo, i looked through the big banks, they arty have a position so i'm not speaking my position, just in general right now, it has potential for the upside to put numbers on it, $37 is your risk and if it closes over 40, there's a lot of upside. forty-eight dollars at least so that's what we are watching for you and 20% from the breakout. the industrials and cereals, a list of everyone now but it's been remarkable and next one biden unveils infrastructure plan. how much exposure do have with these sectors? >> we have a little bit of exposure, construction company looking at the stimulus,
infrastructure package, i have some doubts because it's a lot of other things in there besides infrastructure and as much as we all know we need to pass the package, free community college is shown in, it makes me worried about getting a bipartisan agreement especially when we are talking about tax revenue but with that, i do like a few things, more material construction looks great and 5g which is part of the package, look at american power, that also looks like it's about to take off. charles: fl are, also. talk about this, they are other aching waves, a beautiful weekend and new york and i will see the money first hand. bank of america said the end of march 20, the average spending on home categories, 97.9%, how
do we take advantage of that? how to invest of something like that? it's amazing. >> is is going to continue, we been seeing this on the fact that the consumer spending numbers are going to be the largest we will see in our lifetime so this is all inflationary. anything ties to inflationary, he want to be oil, energy, financial, i'll throw retail to that, to the we are going to see this massive boom on these higher assets, over the next six months. everyone doubting this rally. we set several months ago we thought this would be the mid teens climbing up to have massive profits for these companies. i think we'll be well above all-time highs sitting here in august. charles: is not showing any fear
at all. you have a retail thank you like? >> i think we should be looking at whirlpool, a different aspect of the consumer, home improvement and doing very well, new all-time highs but risk still very manageable if you look at the weeks low to hold on in terms of price level. charles: great stuff. you've given us a lot of things to think about and consider. have a great weekend. president biden testing, he was teasing yesterday, unveiling the infrastructure plan we talked about but where is the money going to come from? meanwhile, some call it a shot below the belt. president biden calling for publicans sick for revamping voting laws. once the president to know republicans don't want to make it hard to vote, they just want to make it hard not to cheat. next. ♪♪
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xfinity makes moving easy. go online to transfer your services in about a minute. get started today. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat, all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours. president biden, the infrastructure plan, now everyone is wondering how. live at the white house with more. >> we expect president biden next week wednesday in
pittsburgh to unveil his bill back better agenda. price take around that is expected in the 3 trillion-dollar range for that with infrastructure package attached to it which begs the question, how do you go about paying for it all? the treasury secretary pete buttigieg says for example, suggested the administration could back what would amount to mileage tax meaning taxing how much you drive versus maybe a gas tax at the pump and said there could be support for build america bonds, as they would be called. treasury secretary alluded to some of this when he testified ritually up on capitol hill yesterday. >> there is a simple set of places we can look, user fees, general fund or other tax sources as congress has done to fill gaps in the recent years for watering. the book of any proposal amount
to whatever congress prepared to authors. >> the transportation secretary, not the treasury secretary, i apologize. first press conference yesterday, the president made it clear he wants infrastructure to be his next major site of priority began to lay out why. >> it the place where we will be able to significantly increase american productivity and at the same time providing really good jobs for people but we can't go back to what they used to be. we have to build environments what they've already done significant damage. >> it's important to note the white house has not confirmed this could potentially be a 3 trillion-dollar package but when i asked the press secretary jen psaki whether or not 3 trillion, she did not say there would be a
3 trillion-dollar cap on the bill back better agenda. the white house has also and that when you talk about potentially trillions of dollars paying for it, it would involve tax increases on the highest income earners and corporations as well. charles: brace yourself. thank you very much. joining me now, california robin congressman, darrell. you are predicting democrat plan to go ahead with pretty much the same tax, spend, then, spend. where is this heading? you have some democrats arguing if this infrastructure plan, you don't need to ask for higher taxes to put it through. >> as you've seen in the $1.9 trillion spending, they are going to spend first, they are going to borrow justify the tax increases based on the inquiry but as you know, the return on
investment on these infrastructure programs is long-term and never gets anywhere close to the $3 trillion they'll put into it so it's simply running up the national that. charles: president biden was talking about this, he segued sentence into the renewable energy part which makes me believe this is going to be called an infrastructure plan but it's really going to be a green energy wish list. >> i don't have any doubt started with the obama administration using schemas funds will continue, the difference is inflation is now getting to show up, we stimulated the economy with massive, almost two years worth of spending in one year and this additional spending without a doubt is going to lead to inflation, which for the common
guy on the street means is money will be worth less and will see an erosion of his buying power. charles: president biden going after laws, calling out republicans for putting them in place in the first place. take a listen. >> takes his sick. it's sick. deciding and some states there will be no absentee ballots under the most rigid circumstances. charles: all right, this caught your attention and you tweeted the president is wrong, publicans don't want to make it hard to vote. you want to make it hard to cheat. those are some really damning comments, that was a political disagreement. >> it's more, the democrats believe if they can basically put tens of millions of ballots out there, they can harvest them whether they are legitimate or
not. hr one includes putting felons back into voting even while in prison, something that state after state has rejected for years. the one thing we've got going is many of the state that have sensible voting laws like you got to show a driver's license or other id, register to vote, those states, some have democrat senators who are going to be reticent to take away from their home state what the legislatures believe was sensible and reasonable. charles: what about the other things like bringing someone across the water while standing in line, what is that about? is that something republicans are promoting? where does that come into the equation? >> republicans would like to have an orderly and legitimate system in which everyone whose eligible to vote find a way to vote. we certainly promote the idea of
absentee ballots, over the bush administration, multiple times we pushed to get men and women in uniform and others stationed over seas. the opportunity to vote and time and time again, states including california let us. charles: this is one of those things you go to the heartstrings and common sense like id and voting, i think it shouldn't even, it should not be controversial and get, so we here it is. thank you very much, appreciate it. president biden's news conference wasn't just for him but also a test for the media. i'm giving them a failing grade plus growing optimism the world is getting together vaccine distribution, or fiscal stimulus around the world, what is it mean for your portfolio? we'll tell you, next. ♪♪
if you hold near and dear to you, you'd like -- anyway. charles: president biden bradley gave his first press conference since taking office and everyone is still talking about it. it was a pedestrian affair, the president loose train of thought and rely on cheat sheets for answers including photographs and notes for reporters. republican strategist and former nevada gop chairwoman, just share your initial thoughts running through your head as you were watching this press conference. >> sure. the anticipation was built up and it's unfortunate for him because we do know the bar was set quite low before -- 65 days
for him to hold this and then not only did they finally agreed to hold the it was running ten minutes late roughly to even get off the ground and then started off strong with the topic he was already very well versed, with the covid update but when it came time for questions like you mentioned, he did have a number of cheat sheets which on one hand it's okay to have notes but when you have to have pictures circled of who you're going to call on and then read verbatim on issues dealing with say north korea and china, that's troubling that he would not have that already ingrained in his brain as to where he stands and sees the country going. charles: certainly felt very rehearsed and even then it felt like a struggle. of course at the conclusion of this, the press release biden's
defense and universally praised his performance. >> the biggest news was in his opening statement, quite a contrast to the previous president who always wanted to be the center of attention. >> there's a sense of humanitarian, this is who we are, the america we are, we are not going to turn the kids away. >> he did not turn back when asked about being a good guy, the decency of the presidency and american people, he embraces. >> we were talking about and that was his response to the pandemic and that's because the entire time been in office, he's been messaging. >> there wasn't a single question on it, there's one other thing, clearly does no negative questions to ask. charles: is the same president who hated president trump what are you surprised about certain journalistic instincts? a lot of important topics brought up follow, one asked, it
wasn't critical, is the president of the united states. instead the focus is on how nice of a guy he is. leave it for later, i think jimmy carter was a nice guy, not necessarily a great president. >> exactly and this was, doesn't come as a surprise? nigel especially when there's been a tweet that's resurfaced, the white house correspondent, basically a group picture of her and other journalists saying look, we are the ones who finally got resident trump answer questions three weeks into his presidency and now we are looking at somebody several months into the presidency and did not get very many tough questions thrown at him, it's basically, how is it that you became so loving and wonderful in your so nice, how can you
handle this it was ridiculous to listen to. charles: i'm just helping as sometime, they revert back to what the job is beginning about personalities for a moment because they do the job on the behalf of the american public. thank you very much. appreciate it always. now let's bring in the chief market strategist for financial, quincy, another big thing yesterday but didn't get as much press was they brought up social media ceos again and section 230, these companies but here is the thing. if the companies represented yesterday along with amazon, they just keep getting bigger and bigger and more powerful. microsoft, facebook amazon, over half of all ad spending about 90% of digital ad spending as an investor, you buy these stocks? you want to own them?
it seems like a no-brainer. >> the fact is, when i look at her soft, i think microsoft can be a long-term holding a portfolio. microsoft is a leader in the digitization of the overall economy. infrastructure spending, infrastructure spending includes technology and microsoft is that the forefront. i'll pull back as you know, big tech tells off, they have their earnings in may, the estimates are may 5. the estimates come in at 176 earnings share but microsoft continues to evolve and i think all of the companies we are looking at in terms of galatian, in terms of concern. probably microsoft is the least
i be worried about right now and again, it can coexist the reflation trade. again, lower evaluations. charles: remain areas of expertise about the global macroeconomic in the financial world, you put together as well as almost anyone i know so the world start to get its act together, vaccine dissolution smoothing out, they start to increase growth and other places, more stimulus, what are the implications for things like stock prices, particularly resulting, i know it feels like a boom time, how does it look like an hour portfolios? >> it looks very good. the problem has been the slope of money, the rush of money from growth from the reflation trade, it's pushed evaluations up dramatically. i look at the industrials, the
xo. one of the issues right now in terms of mobile growth is the u.s. has climbed higher, it does help us in terms of inflation, however, if we want to look at our expert, we need a weaker dollar. we will get that when the european union continues the vaccination campaign and begins to normalize and restrictions are lifted, same thing with asia. i looked at experts out of taiwan which is a good global gauge for global government demand, it's booming, i already knew me. of course i worry about the issue, of course but once it's all weird up, you're going to have a global economy this spring and summer, late spring, summer that's booming. i'd like to see the dollar
weakened a bit but exports are going to do really well because we have some of the best companies in the entire world. charles: i agree with everything you said and maybe we will get the ship turned around, what an embarrassment. thank you for lending your expertise. talk to you again soon. next, a manufacturing report from the heartland is the perfect reflection of the nation's economy and its challenges and i didn't hear democrat or media calling a filibuster racist prior to the 2021, especially in the last four years. they are, why it finally time to stop history in their agenda on this history. ♪♪
the biggest news item not covered yesterday was the manufacturing report from the kansas city that will that covers the area that includes denver, oklahoma city and omaha. the report on this conundrum, the highest headline ever for that report, a tremendous enormous growth potential but the cost rocketed much higher especially for raw materials and there was employers, the devil of a time finding workers and keeping them on the job with so much federal aid from enhanced benefits and latest round of benefits. brian, i thought about you on this report, this reflects everything you been talking about in respect to our challenges, i want to get you something from the manufactures, we continue to see orders we buy from outside the u.s. for the first time in 20 years so that great but also problematic. >> this goes back to what we are talking about a year ago, you cannot turn an economy off like
a light switch and expect everything to turn back on when you flip it back up because the supply chains are so complicated, there's millions and hundreds of millions of decisions that go into reducing everything, a tomato for example, anything you look at so when you turn it off and provide this much diminished and monetary growth, what happens is you end up expanding orders massively you shut down the supply chain that allows that to happen so we are seeing that we are seeing it everywhere. charles: we are and there's another light in there, we are seeing significant changes in commodity, we believe inflationary pressures are building and will continue as the year progresses so will inflation be so impactful that a cripple -- will it be too much.
>> it's a great question, the gazillion dollar question. typically inflation rises relatively slowly but we've never seen 27% growth over here in money supply, not in modern history so we got a couple forces going on, without the reopening, all this money flooding in from the government increasing demand and increase in monetary base and money supply and all of that says he's right, inflation will continue the next few years, i don't look for to get six or 7%, i can see three and a half, 4% in 2023, i think that's easy. charles: that will be a problem because we are not used to it, this is something you want up so often as i'm reading through these comments, here it is about
a couple of them. having a difficult time getting applicants, even bad ones for open positions, the extra federal unemployment payments are keeping people at home and out of the workforce and then another, individual stimulus payments are the equivalent of 80 hours of work so have the increased number of colors and no-shows. you said it, you pay people too much money not to work, they are not going to work and it's hurting productivity. >> that's exactly right and we saw it last year, we are seeing it again these new stimulus bills, the ones from december and the one we just past, this will continue to be a problem and list wages, companies obviously some of them can't pay higher wages but it's going to force wages to bring people off these roles and a lot of people won't do it because if i can stay home and make as much, i'm not going to so it's a serious problem in it's what happens when you see this much
government growth and we are going to pay for the rest of this year. charles: spot on, as usual. thank you, see you again. there's so many ideas, i want to discuss every show and there's never enough time so that's why invite everyone, w street.com, i updated it every single night and morning, it's free and i know you will love it. i'll share how i've seen firsthand over and over democrat hi jack the history, pain and suffering of black americans to push their own agenda and that must stop right now. ♪♪
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increasingly the democratic party the history of black americans to further their own agenda and i'm saying it must stop right now. whatever in their way is always a racist obstacle. of course racism exists has to be pushed back but it is hard to deal with legitimate issues when pain and suffering of black americans consistently hijacked to promote issues for the left. take for instance notion of climate change saying it racist
and therefore we should get behind trillions of dollars of renewable energy that include eliminating great paying jobs because it would be a form of social justice. we've been told that children in the south bronx of the victims of climate change and the high incidence of asthma but the fact is, the children are victims of looming among patches and brooches in the neighborhoods, they have old furniture and can afford to buy more, it's an incubator of a variety of pollutants. the push to pay off college debt has been seen of borrowers and it's the battering ram to get this through. the practice of canceling student debt would overwhelmingly benefit high earning white college graduates particularly those with advanced degrees. the real problem is black students are not prepared for college after these substantial educations progressively run schools and cities and states. they are saddled with debt and no diploma. now we are being told the
filibuster is racist, the same filibuster that has the worst impulses of the majority and prevent tierney against the party out-of-favor for the minority. an article on washington post title for 100 years, filibuster for denying black rights, it's intriguing the centerpiece is a 1922 built in the 1964 civil rights act. when the article admit there have been republican efforts to help black americans, they are labeled as liberal republicans when it has to admit there have been democrats who have gone out of their way to harm and derail progress of black americans, the art will labeled them southern democrats. the civil rights act broke the filibuster which back then required two thirds vote in the senate, maybe two 100% of republicans support of it, 66% of democrats supported it. in recent times, the filibuster has been used by democrats like a switch blade and l.a. fight
they, including kamala harris pulled out over and over again, the last time was last year to kill senator tim scott's police reform bill. not only was this bill a giant step in the right direction toward sensible police reform but also a federal ban against lynching. by the way, the 1922 built in the washington post article the left keeps talking about saying the reason filibusters are racist, that was the dire anti- lynching bill. i'd say you can't make this stuff up but democrats will aching things up and exploiting whatever and whoever they can to achieve their agenda. some might even call that racist. all right, right now stocks are looking to close higher for the week, investor foolishness have remained so hi, wall street is worried. should they be? we'll be right back.
charles: well, despite wild gyrations and big hits to real big names held in almost everyone's account, individual investor bullishness remains elevated, this according to to the american association of individual investors. in fact, it hit 50.9% this week. thousand, for many on the street -- now, for many on the street, this is a sure sell signal. i want to bring in delano pearl.
word from j.f. lack lin reveals that the market has had a very low subsequent four week run when individual investor bullishness was at its peak. whenever individuals were most bearish is when the market had its biggest four-week run. where are you with respect to individual investors who want to be in this market or who obviously are bullish and optimistic in this sort of contrarian aspect to the market >> yeah, charles. i would say with that, it's actually interesting, retail traders, the volume has actually gone down, options going down, volume has tailed back a little by. that tells you maybe retail traders have lost some steam the, but the message is to stick with it. you've been one of the people cheerleading everyone getting into investing to make money. right now is for people to go
back, do their research on the highest conviction names that they have and maybe go back and say are these good entry points for those names. i'm looking at reopening plays whether they're industrials, obviously, tech names we always talk about. but if you're looking at the spacs and different hot names, i think that's actually turned some of the retail investors away even with that bullish sentiment which was kind of a surprising stat. charles: yeah. i'm glad you brought that up. the spac stuff has always been hit or miss. i've done them mostly as trading ideas, and even then it's been rare, the draftkings of the world, the virgin atlantics of the world, but so many of them are truly empty shells. and to your point, stay bullish but do the work. let me ask you about bond yields because this is what's triggering all this weakness here. they're rising again. nasdaq has been struggling what today, but i'm looking at niches within nasdaq because we talk about big tech, that's a huge
tent. semiconductors look good to me. do you like anything in that tech world? >> yeah, one of the things we're holding is invidia, they're dominating the market share when it comes to video game processing units. this is actually an area that i like, the video game industry as a whole. the semiconductors, you're drilling down further, that's a great place to be in. charles: okay. >> the top line, the last quarter of management data, so that's one of the names i like. i still like the big cap names, obviously, a lot of pressure -- charles: delano, 30 -- 20 seconds. the semis are out. how do i make money on it? they're going to be spending like crazy this weekend. >> the stemis are out, they have the reopening coming, disney plus, i love that. charles: disney, we gotcha.
my man, it's always a pleasure. thank you very much. you with always help our investors learn, and that's why we love bringing you on. all right, folks, the market's kind of grinding it out, the s&p was up 10 at one point during the show, we're up almost 30 as i hand it off to cheryl casone. cheryl, over to you. cheryl: i knew i liked you, charles. i agree with you on spacs. we're right there together. charles: thank you. cheryl: thank you the, charles. have a great weekend. we are starting with some breaking news. the u.s. navy if is headed for the suez canal trying to clear the empire state building-sized car go ship that's currently blocking that trade route that carries about 10% of the world's goods. naval experts and engineers headed to egypt to try to dislodge the ever given from the key maritime channel. some economists worry this could disrupt the global recovery by billions. well, oil is a big story on the heels of the suez canal. as you can see