tv Maria Bartiromos Wall Street FOX Business March 26, 2021 10:30pm-11:00pm EDT
check out barron.com don't forget to follow side twitter at barron online. where your mass, get your shot in the arm and will see you next week on "barron's roundtable". ♪ >> from the fox studios in new york city "maria bartiromo wall street". maria: happy weekend everyone welcome to the program that analyzes the week that was in helps position you for the week ahead, i maria bartiromo, the state in real estate now one and five homeowners plans to sell their homes this year, i'll talk with the ceo of caldwell bagel coming up later on in the show. let's take a look back at the week's big moment on "mornings with maria" in this edition of the week stalkers.
talkers. watch. >> north korea since president biden took office after kim jong-un sister threat the united states. >> north koreans pattern has a ways then we will take aggressive action to acknowledge us in the nuclear power. it's not unexpected, you will see more of it. maria: give us your assessment of where we are today with regard to the border surge of people. >> we are looking at an unprecedented crisis going on on the border, the numbers are surging, the number of folks in cbp custody around 10000. maria: any change in your thinking now that you've seen up close and personal. >> the cartel are basically in charge of everything south of the u.s. border, you don't come through unless you have the identifiers, the closings, the bracelet. maria: what are the addition in your city. >> too many people are coming into the city and among them a large group coming in just the
location, the smaller group coming in with bad intentions. maria: you jay powell and janet yellen speaking in front of the committee, what do you want to hear from these two. >> secretary yellen has stated she has tools to deal with the rise in inflation, i think would be informative to better identify what exactly those tools are. maria: it was a volatile week, take a look at the market. this week the dow, s&p 500 and the nasdaq for a second straight week of losses, dragged down by a major tax selloff the up slightly from a rebound encyclical names of course powell and yellen with the economic recovery is helpful, joining me the ceo and cio of morgan cricket capital management mark joining us this week and, toys a pleasure to see you and you have been talking a fair amount recently we have spoken in the past he believed the market is overvalued and continues to be so, tell me
about that, did any of the decline, the selloff in tech take the worry away, are you still looking at valuation that have gone ahead of themselves? >> i think it's a most important question that we can all talk about which is valuations have been stretched for a while, we live in this qe era and abundant liquidity that has pushed prices into levels that we have not seen for 20 years that in the 2000 era and a little bit of contraction since election day, the fangs stocks, facebook, amazon, netflix, google have come down a little bit but they're still very highly valued and if you go down a little bit some of the glamour names, they are really overvalued. i am still nervous and i think at the time for caution. maria: glamour names meaning
tesla in the thing names that you're talking about, what is it going to take for investors to see this incorrect, how significant of a selloff might you expect? >> i think it is really interesting where we are from an economic recovery standpoint as well as an earnings recovery standpoint. from a year ago the nadir of the covered crisis, we have seen a very nice recovery and economic activity in earnings but i think the expectation of that recovery have gone ahead of themselves. we stand from a. evaluation standpoint, about 100% over fair value meaning it would take a 50% drop to get back to fair value that's not going to happen overnight and it would be a process of the period of time. i do think so long there's
abundant liquidity from the fed, statements of confidence for additional physical and monetary support, were unlikely to see any big correction. but i do think this malaise and prices critically in the tech names is going to continue for a while. maria: how do you protect yourself, we spoke in the past about oil and energy related themes, i know that the favorite of yours in the news this week of the ship blocking traffic in the suez canal is worrying some people and certainly has sent oil prices higher, this could be the situation for weeks in terms of the suez canal having problems and delays shipping things like oil and gas among other products that are traveled through the suez. what are your thoughts on what's taken place and the impact on energy related securities? >> we talked about this last time we were together and again,
really important insight that you made at the end of last year, the energy was at the lowest level ever in the s&p and everybody had basically said value is dead we will own the glamour tech names and starting the fourth quarter last year we started to see signs of real stress and supply, we new demand had fallen off because of covid and less travel and less gasoline usage and jet fuel but the supply problem started to get pretty acute, the suez issue certainly makes that a little bit worse. we see a continued rise in prices over the course of the year, p rhonda ron has said things can go $80 a barrel, i don't know if we get that strong but any further disruption in oil supplies is going to be really good for oil markets and
are big thing last year that saying diamondback energy the ticker single thing would outperform facebook, amazon, netflix, google, it is up about 550% and the things are flat. maria: nice call in terms of the rest of the year, any other areas to hide in your view if we were to see a selloff led by tech? >> we actually like golden gold miners and maybe even silver in the silver minors. they have been punished since last august as rates rise it's a little counterintuitive so we
think those went on sale, investing the one thing we probably talked about this in the past where things go on sale people run out of the store and the cheaper the price the faster they run so we do like those a little bit in commodity broadly there is a pretty interesting case for food inflation given some things that have been happening in the global food supply so agricultural commodities might be a place to hide, my favorite place to hide is a bitcoin we think everybody should have 1 - 3% is very asymmetric on the upside, uncorrelated to stocks and bonds and it really adds a level of protection in your portfolio as you think about diversification and overvalued world. maria: i'm really glad you mentioned bitcoin, the world is changing you can use bitcoin to buy a tesla. but you can also see a world where digital currency also takes over in this environment as some point it is great to get into this with you, let's keep the conversation going come back soon please, good to see you this weekend. >> the keeper having me have a great weekend. maria: mark joining us there, we
will take a break when we come back home sales taken a hit but could rising mortgage rates creating longer-lasting headwind for the housing market all talk with the ceo of caldwell baker up next. ♪ retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management. psst! psst! allergies don't have to be scary. spraying flonase daily stops your body from overreacting to allergens all season long.
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convince some of the 20% of homeowners contemplating selling the next year to take the leap of faith it would definitely fill the funnel of buyer demand. a couple things holding the back covid is one purely safety, hopefully vaccines will address that concern but the others inventory it's a chicken and egg issue they wanted of the house and were the bible for they put their home on the market to sell. maria: let me go back to inventory and a moment, you said the demand is so strong tell me about the demand assess the situation. >> demand is extremely strong for those looking to buy first-time homebuyers that is statistic last night that a third of first-time homebuyers have been frustrated and have not been able to find a place to purchase and over 40% who did buy took more than a year to be able to find a place to buy, not for lack of trying for the most part there participated in multiple offer situations and not winning. maria: why do you think that is, is people just changing the way they live because the covid, is
it because the interest rates are so low, what is behind the increase in demand? >> i think you had on two of the biggest points, interest rates being low facilitates of transactions but it's very organic people deciding they want to live differently in a different place. instance people in new jersey want to contemplate in a more friendly tax destination, there's a lot of movement down to the carolinas and florida and with covid people are able to look more remotely, maybe part-time or full-time that's allowing them to contemplate moves that were a few years off, they're moving this forward and maybe they need more interior and exterior space in a covid environment and maybe they look to bring family into their home so they need more space, it's a fundamental family growth driver which is great because it's organic and sustainable but we need more inventory to fill that demand. maria: what is it going to take to get the inventory on the daca and assess interest rates for
us. even though we are still at rock-bottom levels, mortgage rates have moved up pretty quickly and the pace of the movement even in the tenure has been unnerving for markets because it moves so quickly it. >> i never thought i would complain about 3% interest rates but they are up a bit from where they were near hit and certainly supporting affordability. it's a little bit tighter because we see price increased almost 16% year-over-year, the price increase might be scary for those looking to buy but those looking to sell, that could accelerate their movement onto the market if they can become convinced they can find a place to buy over 60% those looking to sell are actually contemplating leaving the area and the city or the state where they are today, that makes a little more nervous if they don't have them but tori and the destination area. those prices can pull inventory onto the market almost 40% that we surveyed said literally covid
the physical safety that they feared of bringing people into their homes was keeping them on the sideline with the vaccine numbers accelerating through the summer hopefully that varies potential sellers will feel more comfortable putting their home on and bringing folks to bite and moving on. maria: it sounds like you expect this boom in demand to continue as vaccination numbers increase? >> there is been a lot of speculation of whether vaccination numbers would set us back to business as usual and what that would do for housing but i do believe it will support what we seen in housing today because the demand is organic, not speculative and i wish there were building going on today but that's not what's driving is a fundamental family need people deciding they want to live in a different place in a different way than they have today and getting back to long-term run rate that we saw for 60 years leading up to the great recession. maria: i love the fact that you have this great portfolio and you have advantages points to
see what's going on across the country. have you ever seen this kind of movement from state to state you mentioned earlier people leaving places like new jersey for lower tax places like the carolinas like florida, texas with no income tax. have you ever seen this movement from state to state before? >> we have never seen we've seen population growth throughout the sunbelt and the smile states for many years but today what we are seeing his inability for business owners or the ceos making decisions about where their headquarters will be deciding their comfortable moving themselves and their business to a different area because those who do not want to make the move can't actually work remotely fairly capably. i think were seeing a big acceleration for family reasons and also those businesses for financial reasons. maria: i think it's a great point, great to have you think of her walking us through the environment. we appreciate it. >> we appreciate it.
maria: ryan gorman the ceo of caldwell banker. more and more companies turning to battery powered vehicles but my next guest says by doing so they may help china and the communist party, we will dive into it when we come back. all right that's a fifth-floor problem... ok. not in my house! ha ha ha! ha ha ha! no no no! not today! ha ha ha! ha ha ha! jimmy how happy are folks who save hundreds of dollars switching to geico? happier than dikembe mutumbo blocking a shot. get happy. get geico. fifteen minutes could save you fifteen percent or more.
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maria: welcome back the electric vehicle industry is booming of ev startups and traditional car companies getting into the space. investors and consumers may think cars are better for the environment than gasoline vehicles but we are finding out that is not a ways the case. i spoke with the car coach.
>> when you collect all the wrong materials all the way when the vehicles are no longer useful what is the total impact not just to you as a consumer but the environment. they are finding attire when electric vehicles because of rare-earth minerals. cobalt, mineral, nickel there's a shortage of all of them and here's the big part no one is thinking about all of those are owned by china, we will not hold them to the middle east and no longer be energy independent, we will now be beholden to china which we already are. maria: this is a really important point that you make i wonder if this will get more play because china has had bad behavior from stealing intellectual property to the neighbors to obviously the human rights abuses with the uighurs in prison or in camps. this is the last country that we want to be beholden to, we found that out firsthand at the
beginning of the pandemic when we all recognized that many of our prescription drugs are made in china, there were threats in the global time with the state run media with the chinese communist party told the u.s., maybe we will not send those drugs and prescriptions of the u.s. needs if they keep poking us on tariffs. >> part of it we have a shortage, if you're looking for a new car you may not find the vehicle you want or if you want to order we have a chip shortage you can't produce a car that's 99% done, you few have to wait for those to come from china we have found through a different couple of articles i've been looking on getting more research it seems like they cut back on what they're shipping us, that also hurts us that they can't produce cars, keep in mind the auto industry impacts half of the dow jones and people say it's the car industry, it's tires, bearings, bushings and metals every single component is
from a larger company in that impact the dow jones when you're looking at the numbers if we can't produce automobiles like who's in charge of the department of transportation pete buttigieg we could have a real problem if he wants to cut back on what were putting out on the road not just production but lack of component you will see the impact us when it comes to the financial side anyone who is investing. maria: that is a great point not just impacting our businesses but the stock market as well. last fall california push a mandate that every new car sold in the state would be an electric model by 2035. what happens if more states do that? >> that's going to be a problem, right now two senators trying to push biden to make a deadline date to 2030 which is five years prior just so you have an ids you can get a feel for this as we say here today it's about 2% of all vehicles sold that's
15.5 million cars and light duty trucks were sold, 2% are electric vehicles, that is just plug-in electric, they wanted to be 10% before we even get to 2030 and needed to be 100% california that would destroy the auto industry, you have to remember this does not work for everyone there needs to be a mixture of answers and you have other parts coming online which could be a better choice compressed natural gas, hydrogen being produced, hyundai putting together hydrogen powered and they work and they have 0 mission and one thing that porsche is coming up is e gas and what it is is synthetic gasoline no longer fossil fuels in the tailpipe is equal or better than what we're getting as an impact to the environment with electric vehicles. that is coming in there working on it in volkswagen owns porsche and they want anything. maria: my thanks, don't go
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don't miss it 10:00 a.m. eastern live on sunday on fox news. right here on fox business start smart from 6 - 9:00 a.m. eastern with "mornings with maria" on fox business. that will do it for us for this weekend, thank you for joining me have a great rest weekend. i will see you next time. ♪. gerry: hello and welcome to the wall street journal and large i am james freeman and for gerry baker. much of today's media dominated by progressive leftists who are good at destroying tradition, careers and free expression but what exactly are they building. after all the societal broken eggs where is the progressive omelette. in search of the model of success that gives the woke stores confidence in condemning america's constitutional republic i recently invited