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tv   Making Money With Charles Payne  FOX Business  April 6, 2021 2:00pm-3:00pm EDT

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david: kind of a mixed picture. looking at markets right now. the dow is down, other index are up. i'm sure charles payne can make it all work at end of this show. hey, charles. charles: great seeing you, david. that is what i do. they call it the cp effect, my friend. good afternoon, everyone, i'm charles payne. this is making money. growth is starting session as momentum darlings. we had guidance less than an hour ago from applied materials. it derailed the tech stocks and sent the nasdaq and s&p lower. how to handle the crazy shifts in the market without losing your head or wallet. we have answers in this show. president biden in virginia, shaving two weeks off his may 1st deadline to make all
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adults eligible for the vaccine. it is his push for higher taxes and a different kind of capitalism that could reshape our entire economy as we know it. we have details and reaction from two of the best. all that and more on "making money." ♪. charles: you know there is a real good article in the "wall street journal" today on the pham no of momentum trading. it has taken over the market. headline, white hot rally masks mammoth value swings. this is what i've been talking about and talking about for weeks. this is a phenomenon. when something gets hot that means something automatically falls out of favor. this process i tell you creates oversold conditions. also though opportunities for those that are patient and of course big money making opportunities for those who are nimble. interestingly though many investors that think they're
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name bell often move late. caught in these positions. they're high entry points as momentum crowd moves on to the next hot thing this become as moment of truth or maybe a test to see if the investors can indeed be patient. part of that process means knowing if the fundamental underpinnings of the stocks you own are worth holding. right now most seem content with taking hits and chasing the crowds. i really think it is time for investors to take a pause, assess your positions based on underlying fundamentals, more in the direction of share prices. remember, in the end fundamentals rule. with that in mind, how should investors make money, avoid losing money and more importantly keep your head during these momentum mania? i will bring in simpler trading director of options, danielle che, tjm institutional services director, jim inorio, bellpointe chief market strategist david nelson. jim, welcome to the show. i've been a fan of yours 20 years.
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>> thank you, charles. charles: yeah i think this is more about behavioral than anything else but you know you can't argue that huge amounts of money are being made and lost with these quick momentum shifts. how do you handle it? >> something you said chilled me a little bit, you said in the end fundamentals matter. so the only thing i'm questioning when is the end? right now i don't think fundamentals matter at all. charles: [laughter] >> i'm one of those guys over the last couple years saying fed liquidity, profligate government spending what was going to fuel stocks. i'm not sure that is why stocks rallied but i'm sure i'm on the right side of the trade. the question, when you talk about the wild momentum swings, these don't happen in times when there isn't huge liquidity thrown at the market. you look at gamestop. you look at nfts. gamestop might be theranos. it has been picked, pushed around by loose money sloshing
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around. in the end fundamentals matter but there could be money made in whatever stage of the public we're in that i believe we're in. charles: to that point, david, you could actually be in paypal, for instance, i'm in paypal. a week ago i was down big. today i'm up fractionally. two weeks ago you would be in nvidia. you were down big and now up big. these are good names. not gamestop. do you ride out the waves, does that make you feel comfortable? or do you take the hits and keep chasing the crowd? >> i think you have to do what you've been doing. you said it at the top and i happen to agree with the statement. i think in the end fundamentals rule and you need something to hold on to. price momentum is a wonderful tool, we all use it but today's investor has to be prepared to deal with a 30, 40% drawdown in some of their favorite names. you're savvy enough to do that, look you through that noise, you will be rewarded on the other
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side. if you can't take the pain. you have nothing to hold on to, no fundamentals to hold on, you're likely shaken out of a really good stoke and get out way too early. charles: yeah. that is something i try to drive home to folks all the time. now a lot of this of course is being driven by the big action in options. options have done everything. they changed market. it is on fire. more investors want to play them. danielle, this is your forte. this mentions paying for bearish options for protection. share with us a rule of thumb. if you think the stocks are moving crazy these options are moving pretty quick too. >> yes, there is a ton of interest right now in options. we've seen a huge influx in volume. a lot of volume coming from new traders. the new traders want to follow momentum. that's great but you have to learn how to do it. you need to try to stay away from some of those meme stocks, especially buying puts. the biggest problem i see people
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always want to buy puts on a day where the market is down. that is number one they cost the most. that is usually the low is in place. if you want to buy puts to protect your portfolio it is a lot easier to do it on one of the big strong up days rally into resistance if that is the strategy you want to utilize. charles: right. i love that. that is counterintuitive. i hope you wrote that down. that will save you a lot of money. moments ago we saw in the last week semiconductors have come on. they have led tech back into the limelight. just a few moments ago the rug was pulled at least temporarily. applied materials, they gave guidance for 2024, right? i guess it was less than some people expected, david. automatically semis, again they collapsed. i'm in applied materials. i think i'm an investor. now it is dropping like a rock. to i have a chance to maybe get out? do i look at something else in tech? this is a sort of a nuanced stuff that is really hurting a lot of our viewers.
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>> it is a moment in time. you get guys like this on investor day, this trying to talk down some of the numbers. going out to 2024 i'm only seeing headlines right now. i will not make any kind of move until i delve into the numbers. i will have to look into these numbers. bringing back guidance a few years out will probably not change the bull thesis on this name. my guess other investors will tack advantage of a day like today, probably look to get some shares if they don't own them already. charles: right. so, jim, you mentioned gamestop, right? here's the thing i find interesting. wall street is always writing off companies and stocks and so many of them, i tell you have staged remarkable rebounds. i lost tack. putting a list together of names from single digits to big time moves. signet, the parent company of jared, some of these other jewelry makers. one year since last march up 900%. jim, people want to find the kind of names that go to the
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store. anytime you sift through the ashes of names that wall street has written off. >> yeah. what we try to do. again i can't, i can't tell you where to find the next 900% gainer. i'm not even positive i want to. things that can go up 900% can go down quickly as well. for myself, at the beginning of this year, i thought a couple different themes were happening. obviously the reopening trade. i was looking at crude. crude has done well for me right now. i thought the curb was going to steepen so i look at bank stocks. look at things being thrown away, i know the two names i mentioned are not that exciting to people. everyone wants to find the next thing that will be gamestop and go up 400%. i don't know, to me you have to be a cowboy to play in those games and have to be prepared to have losing days. one thing i want to mention about the tech thing, if 10-year yields have been relatively stable the last three weeks, that is one of the reasons i think tech started to move higher yesterday. apple, google, amazon broke out
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of a downward trend. i think the rate story is bigger in fact than people are making it out to be now. if we believe rates stay in a sideways trade, it might be easier to die gets tech earnings coming up. charles: by the way, we had signet five-year chart on there. you couldn't see the volume. when ever you get a chance, folks look at the volume. on the way down, tons of volume. on the way up very little. you ask which side of that was the smart money. this morning bernstein said netflix will implement widespread price increases. late last week, caterpillar will hike their prices first time in five years. i personally love when a company has pricing power but doesn't lose market share. danielle this, is one of the easy way to find big-time moneymakers but not a lot of companies can do that. do you have some names in this category are maybe appealing to you? >> charles, you know i like microsoft. microsoft is the leader in their field. when you look at the fundamentals they're incredibly strong.
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they consistently demonstrate quarter over quarter, year-over-year growth. they consistently rally into earnings, in that 21-day time frame and not to mention the contracts that they have gotten lately. the jedi contract and also the new contract they got last week based on their a.i. technology. charles: right. >> so for me this is a company that absolutely is a buy, not at new highs right now but you know what i mean. charles: sure, sure. david, i got 30 seconds, can you give me one as well? >> you know i think you were going to mention it. caterpillar is a great name to own. i'm looking out my window right now. i have nothing but cranes and tractors out there. five buildings are going up in my neighborhood. all multifamily. this is a lot of that in connecticut. a lot across the country. charles: absolutely. it is one heck of a trade. jim, you lived up to the billing. you are a superstar and join danielle and david two other superstars. we learned a lot. >> thank you. charles: we did our viewers a big service. we'll talk again soon.
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there are some ideas and trends folk every single day i want to talk with these great guests. there is never enough time. read my own market commentary. i write it every single day. go to you can check it out there. president biden is trying to convince everyone that his tax hikes will not hurt the economy. >> are you afraid the highest tax will drive corporations out of the country? >> not at all. not at all. look? >> why? >> because there is no evidence of that. charles: now the left taken to social media trying to tell me that the u.s. was prosperous when we had higher taxes. you know something? there is a lot of things that have changed between now and the 1950s. later why florida democrats are defending governor ron desantis and calling cbs's "60 minutes" reporting intentionally false. we'll be right back. ♪
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is on fire, the u.s. economy. international monetary fund updating its gdp projections and it sees america growing at 6.4% this year. by the way that is without the proposed infrastructure plan. you know, it is these kinds of economic momentum makes a lot of people wonder why we need two more rounds of fiscal stimulus. let's ask the chief economist of first trust advisors brian wesbury. brian, 1.9 trillion for infrastructure and 2 trillion for something called human capital. do we need it? >> no, we don't. if you think about our budget, normal budget pre-covid was a little over $4 trillion a year. that's federal. state and local are about the same. and then in the last 12 months we have passed 5 trillion more in spending. and now it looks like they want to do another 3 1/2, 4, 4 1/2, five? there is no way this economy needs that. the best stimulus is the vaccine
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and it is rolling out very, very rapidly. charles: and of course you know, reopening the economy is just, i know it is anecdotal, but everywhere you look you can feel the energy. it feels like translating not only into gdp numbers but helping the market as well. >> it is. charles, look, we are booming. this year we will grow over 6%. we're going to create, we believe, about seven million new jobs. now this is all based on the fact that we don't shut down the economy again and i don't think we will. i'm not trying to play doctor. i just think if the vaccine works we can, we can get through this but now what we're doing is taxing and spending. go back to the 1950s, everybody is saying we did great with high tax rates then, if you think about that, that was after world war ii. nobody else could compete with us. europe was bombed to
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smithereens. the united states, we learned how to mass produce things. we translated that into consumer goods and we boomed and took over in a sense the world economy after world war ii. and then in the '60s, we said hey, we're rich, look how low unemployment is. look how well we've done? we'll spend it all. that was the great society programs. what that led to was the 1970s, stagflation. high unemployment, high inflation. that is where big government, high taxes always go. they take us to a really bad spot economically and i'm very worried about these arguments that are being made in washington, d.c. for the president to say there is no evidence that high taxes hurt the economy, that is just belies what i can see with my eyes. go to new york, go to california and go to florida. what are all these companies doing? they're leaving new york and california to go to florida and
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texas. taxes are one of the reasons for that. charles: the companies, all those places thaw named have the worst income inequality in the nation. what they're talking about d.c. and white house, they scorched me on twitter last night. somehow the progressives got ahold of one of my tweets, that joe manchin was not on board with the 28% tax hike. here is another part, i have less than a minute. we've got competition now. >> right. charles: to your point, europe was bombed out. japan was recovering. we had no competition. now we start to hike the rates, there are places these companies can go and domicile and build factories. i mean i don't see why people don't see that, brian? >> yep, exactly. after world war ii we were the only gam in town because everybody else was bombed out. terrible to talk about but that is why we won. this is not the same world anymore. to do what they're doing, is literally cutting our competitiveness.
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we will pay eventually a big price. right now it all feels great because we're on a sugar high. eventually we will pay a price if they don't, if they don't get this under control and stop doing this to this country. higher taxes, higher spending, really bad idea. charles: jim rogers used to always say, give me a trillion dollars i will show you a good time as well. of course at some point we do have to pay for it. see you soon, brian, thank you. they say it takes two for the iranian nuke deal but between the fears over u.s. appeasement and china now cozying up with the rogue nation is tehran getting closer to a nuclear weapon? plus mlb moving its all-star game out of georgia might be more than big business wokism. might be the last sign of the death of for-profit capitalism. are you ready of state control over big business? we'll be right back. ♪. understand why.
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charles: major world powers engaging in indirect talks in vienna over the iranian nuclear deal. ahead of this meeting i think iran made it clear they think they're in the drivers seat. last week we saw proxies fire rockets near our base in iraq. yesterday they signed a 400 billion-dollar economic deal with china. meanwhile israel also voiced its concern over potential u.s. appeasement towards tehran. will president biden be so desperate to get a deal he gives away too much? let's ask "wall street journal" editorial board member kelly jane torrence w their new sugar daddy, iran must feel invincible. what are the chances that they return to the jcpoa and the outcome of all these meetings might be? >> that is a great question, charles. it is clear president biden wants a return tote deal. his old boss, barack obama, negotiated the deal. a lot of the people who worked on the deal are in the biden
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administration. and it is incredible to me that they are pushing to get back into this deal given what iran has rejected. the u.s. actually offered to get them a billion dollars in frozen revenue from south korea for their oil in exchange for halting production of 20% of enriched-uranium. iran said no, give us all the frozen assets around the world which is around 90 billion. we'll pause production for one month. thank goodness the biden administration said no. that is the ridiculous back and forth we're seeing. we already lost some leverage. donald trump's maximum pressure campaign had the regime on its knees. with the 400 billion-dollar deal with china the regime has a lifeline now. it can wait a little longer to the get the u.s. sanctions off. it has got a lifeline. charles: speaking of the enriched-uranium the timeline is already set. iran is going to have a nuke or
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be able, they will get the green light one way or the other less than a decade from now. so do you believe the world will let that happen? i don't think europe would stand in the way? no you know i think you're right, charles. that is unfortunate. a lot of people don't realize, the original iran nuclear deal had sunset provisions they would get to a nuclear weapon by 2030 anyway. that is one reason actually tomorrow a group of 300 iranian americans are sending a letter to president biden thanking him to not take any economic sanctions off iran until it addresses its human rights abuses in its own country and the terrorism it exports abroad. charles: right. >> certainly i don't want the country to have a nuclear weapon but it is doing plenty of deadly damage right now without one. charles: to that point periodically we hear about upheavals. i remember a couple years ago images were encouraging, right? then all of sudden the chatter
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fades away. now you have got some great connections inside of the country. that is why i like talking to you about this issue. is there still some sort of a groundswell in that country, wants to get past rule by mullahs and get some semblance of democracy? >> they do, charles, really do. talking to people inside of iran and people who recently escaped, the election of president biden was a bit of a downer for them because they knew that he is much more likely to appease the regime and give it the money it needs to survive but there is -- the protests go up and down. there was one last month in saravan the irgc killed unarm armed pool reporters. just killed them that set off armed protests. you see them go up and down. the regime has all the weapons on its side. when it chooses to do with its money it, picks weapons, military over helping its own
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people. the people see that they're tired of it. they're dying for a way to overthrow this regime. charles: kelly jane torrence, thank you very much. always appreciate our conversation. >> thanks, charles. charles: to the market really able to ignore geopolitical risk, i want to bring in bny mellon chief strategist alicia levine. there was a time when our market was ebb and swoon on geopolitical headlines. that hasn't happened in a long time. maybe it won't happen until there is a major war. what's changed? >> hi, charles. great to see you. i think it is true, unless there is a war for the most part geopolitical risk is overrated as a macrorisk, right? sew a few years ago there was a lot of concern about tension with north korea and the populace governments in europe and there was concern it would affect the market and it really didn't. what political risk does is affect certain sectors and certain stocks based on where the conflict is. so, for instance, if the u.s.
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relaxes sanctions against iran and iran sells oil in the open market you would expect oil prices to go down. that would be negative for energy companies. so that is how it would be kind of just tailored to the energy sector. charles: right. >> similarly conflict with china is really going to affect the companies whose revenues mostly come from china. think about 2018, early 2019 when the u.s. put tariffs against chon niece goods those companies with revenue coming out of china actually underperformed until there was hope after trade deal t was very specific t was micro. it was not a macroproblem. i think that is how investors need to look at it. what is the problem, where is it, and what are the sectors that will be affected. charles: great points. you no right now there is a battle for leadership. it keeps switching back forth and i have a question for you. what will take the lead next,
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fang, diamondback energy and oil market or fang, netflix, google, facebook? it feels like energy is coming on and who will lead this market? >> it's a great question. i love the way you posed it, fang versus fang. we're in a new quarter. the previous quarter was all about cyclicals really outperforming. what we're seeing as we enter this quarter yields are softening, right? the 10-year yield kind of softer, not really spiking w that tech should perform. we like cyclical tech. and we like the large cap tech with earnings. we any they think they have sufd enough. they have gone nowhere for nine months. amazon has not made a new high -- [inaudible] be careful on speculative tech though. in addition you have to be exposed to energy. it is still a cyclical recovery. we think growth is much better than most analysts are
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expecting. we like the imf upgrade for global growth. we think it will be higher because the u.s. will be higher. you need a barbell strategy. charles: less than a minute to go. let me squeeze this in then. since geopolitical risk isn't what it was, what is the greatest risk to this market right now? >> so i've got two for you. i have higher yields, spiking yields on the 10-year and i've got higher taxes. the market has not priced in higher corporate taxes, nor has it priced in higher taxes on dividends and capital gains which will be proposed in the neck bill. those are my two biggies. the market has not priced those in yet. charles: alicia, thank you very much. always appreciate it. great stuff. folks, georgia's election law is allowing big corporations to involve themselves in the nation's policy making. what happens when business has no choice? what happens when it is legally forced to do the quote, unquote right thing? we have got you covered next.
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♪. david: charles: major league baseball will reportedly move this year's all-star game to denver, not atlanta as a protest of georgia's new voting law. big corporations are once again entangling themselves in policy making. where does corporate america go from here? hillary vaughn live from capitol hill. reporter: we heard from georgia governor brian kemp moments ago on fox news channel. he said the ceos of delta, coca-cola, did not pick up the phone to ask him questions about the voting reform that he signed into law. bid say that he did speak with the commissioner of major league baseball about the law. he offered to explain anything in the bill but he says the conversation didn't go anywhere. he later got a call that mlb was moving the all-star game out of
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atlanta. today the white house is trying to distance itself from the blowback as more companies join in the boycott of this law but the white house and the president never took back any of the false claims they made about the law. today white house press secretary jen psaki would not say if the president regretted publicly supporting mlb's decision to boycott georgia? >> he would support that decision, that decision was made by major league baseball. just like he would support decisions made by private sector companies. we're not standing here, calling for companies to boycott. reporter: senate minority leader mitch mcconnell saying today when it comes to politics he thinks businesses should mind their own business? >> don't do it. the other coca-cola, the other companies that basically responded to this partisan appeal are doing the same thing.
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you know republicans drink coca-cola too. and we fly. and we like baseball. if i were running a major corporation i would stay out of politics. reporter: mcconnell says if major league baseball applies the same standards across the board for other games, the mets and yankees home games could be on the chopping block because new york has a stricter voting rules than georgia. just this afternoon mlb did make it official, denver will be their new host city for the all-star game. but colorado's voting laws are not as different as georgias as some might have expected. colorado actually has fewer days of early voting than georgia does, 15 days to georgia's 17 days. they both require a valid idea to vote by mail and in person. they also both allow no excuse voting by mail. atlanta being canceled for this host city has an economic impact to a travel official with cobb county says that the price tag
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for missed out revenue that they don't get to cash in on because they are no longer the host city of the all-star game, that could account for $100 million in lost tourism revenue. charles? charles: hillary vaughn, thank you very much. well the georgia voting law showdown is shining the light on the battle for control of big corporations. i'm going to bring the president of strategic wealth partners mark tepper. you know president biden obviously played a major role in the mlb decision. he stated that already he wants to convince businesses to do good and move away from profit maxmization. this sounds like government take over of business which has totalitarian impulse throughout history and it always has had ugly, ugly ramifications. what are your thoughts, mark? >> i agree. i'm not sure how private the private sector is when the government is telling every single company how they can and can't make their own widgets.
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businesses are already hold accountable to the stakeholders not just the shareholders. in capitalism everyone is looking out for the best interest. it is not just the employers but also the employees f i'm a jerk my employees are going to quit. if i don't pay them enough they will go elsewhere to make more money. if i'm not liked and respected in the community i will not bring on new clients and keep current clients. the issue is not capitalism, it is the government intervening and destroying capitalism and not allowing capitalism to work as it should. charles: mark, to that point, there is a theme going on, people don't know about it, 38 states without much fanfare legislation mandating benefit corporations. benefit corporation is a traditional corporation modifies obligations. it commits to a higher standard of purpose, accountability and transparency. the question for me though, who decides those so-called higher standards? >> look i haven't heard a ton
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about these but apparently the b corp. as they're known, they pick some third party standard. i'm sure the government has influence on that standard, charles. you and i both know that, right? so the basic gist, these companies have to have the best interests of stakeholders, not just the shareholders in mind but look, let me tell you something. if you're not taking care of your stakeholders you will not be in business for very long and any business that sells a product or service that doesn't serve a need or solve a problem, they're not going to be in business for long. i say let capitalism do what it needs to do. charles: let's switch gears here, talk about the market. i haven't been able to bend your ear on the market lately. feels like maybe all the angst we had for five or six weeks is fading. the market is still not sure what it wants to lead higher. what are you doing, what do you like here in this market? >> i've been loading up on some housing stocks. that might sound i'm a little too late here but hear me out for a second.
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here is an interesting stat. there is 1.5 million licensed realtors, there is one million existing homes for sale. there is 40% more realtors than existing homes. where is the inventory coming from? you have to build them. we've been underbuilding homes since the financial crisis. i got d.r. horton. sill lowe on 30% pullback. d.r. horton, first-time home buyer, move up homebuyer where there is really no inventory. they have a asset light business model. i like them. i think they're in the beginning after long-term secular bull market. zillow is the go to authority for homebuyers around sellers. it is pretty cheap trading two times sales. charles: mark, i love how you lay out the investment thesis. by the way we bought a new house less than two months ago, the realtor to your point is so busy, didn't give us a crock pot
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normally you get something but they're too busy. not yet. all right. >> congrats, buddy. charles: thank you, mark. thanks. coming up how former president trump's social media battle allowed justice clarence thomas to take direct aim at tech, all of its power. florida governor ron desantis being forced to defend himself after 60 minutes accused him of a pay-to-play scheme with the vaccine rollout. he is calling the news program ambulance chasers with a microphone. that's next.
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♪. charles: justice clarence thomas taking aim at tech and its power to cut off speech as the supreme court yesterday dismissed a lower court's ruling that former president trump violated the first amendment rights of critics when he blocked them on twitter. joining me, rachel bovard, director of policy at conservative partner institute. you applaud these remarks. what do you think justice thomas got right here? >> well i think justice thomas is seeing the world as it actually is, which is threatened by this concentration of corporate power, so broad, that it is actually impacting the free flow of information in a free society, not just our
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speech, but how we gather information, how we access the marketplace. so i think he is recognizing the threat as it is, look, our lawmakers need to pay attention here, this is changing the bounds of what a free society looks like. justice thomas has been very sharp on these issues, opining before on section 230 which is big tech's government subsidy. he was very clear-minded here. a lot of us were very happy to see it. charles: rachel, with both parties essentially punting when it comes to taking action, they're all talk, no action on section 230 and other aspects of big tech and their dominance, is there a chance that ultimately this could be seen, you know, heard before the supreme court? >> i do think justice thomas was inviting some challenge. he said in the past that section 230 has been judiciary contorted. it has been misinterpreted by the lower courts. i think he is inviting a challenge on that front and in
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his concurrency he laid out the possibility or the justification of common carrier regulations. now those would have to be done by the legislature but he laid out what is a very good common law basis for common carrier regulations. regular speech platforms have to transmit content they cannot discriminate that again is not this new concept invented for big tech. it is based in english common law. it goes back centuries. he is pushing, lighting a fire under the legislature in that regard. charles: let's talk about the broken clock, "60 minutes." another fiasco for them. now they're facing backlash from democrats and publix for really this critical story about florida's vaccine rollout. i suspect "60 minutes" really trying to kneecap governor ron desantis as they see him as a rising republican star but think about how awful it is that the show sunk down to being really democratic operative and now everyone is pointing this out. your thoughts on this?
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>> well it really was remarkable because of the story's intent to mislead. this wasn't an error. this wasn't simply a fact-checking mistake. this is a deceptively edited video which not only that, they kept out democrats who wanted to speak on the record about how this whole story unfolded and they pushed their own narrative and honestly, i if i were ron desantis i would sue them. that is how bad this is. this is actual malpractice by journalism. significance at this minutes wants any credibility, heads should roll on this it was so irresponsible. no one trusts corporate media because of actions like this. charles: absolutely. rachel above sadder, first time on the show. i've been following your work. it is fantastic. americans are feeling a lot more confident about reopening the economy rand and covid-19
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charles: we've got breaking news for you. reports now the federal government is considering increasing tax credits for electric cars to $10,000 from $7500 as part of that massive infrastructure bill introduced by the biden administration last week. now, the bill says it will not only take the form of tack rebates, but also point of sales
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rebates, and it will now be for american-made electric vehicles. a pretty big deal right there. they're really trying to get this thing through. in the meantime, you know, according to a recent gallup poll, fewer americans are worried about catching covid-19, even fewer worried about the tests and treatment. this confidence manifesting itself in the stock market, the return to momentum, the classic reopening ideas are doing very well. although many of them actually peaked in early march, so you've got to believe the street was ahead of this. and with that the in mind, what events will shape investing for this quarter and how do we benefit? no one better do can than michael lee. $170 billion for evs, and now they're making it even more enticing. general motors had a big ascension yesterday, tesla's trying to rebound. are you buying any of these? >> look, tesla looks attractive here, and the other thing is, is the core business for general
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motors and ford is just going gangbusters. it's almost impossible to go ahead and buy a suburban or a tahoe or think of these big trucks right now because the annual sales for cars a year ago, i think, in march was 7.5 million, now we're at 17.5 million annualized sales rates. so these businesses are just really ramping up. i don't know that electronic vehicles are the vehicles of the future, but there is very much a momentum trade behind this. if it becomes $10,000 cheaper for he to buy a tesla, then have to say i'm quite possibly in the market to buy one of those model 3s. charles: wow. that's pretty cool. what's going to move the market this quarter? new quarter, new theme? >> i think there was a lot of one-time factors going into the treasury selloff in the first quarter, and i think the treasury market moving as fast as it did was really driving tock a prices.
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people were saying, okay, here comes inflation. if we have inflation, classic value companies are going to see a lot of revenue growth, and with revenue growth the amount of money these companies can financially engineer becomes much, much higher, making it a lot her attractive than growth companies -- more attractive than growth companies at 70, 80, 90 times earnings. looks like these inflation scares are just transitory, i think at lot of that money goes back into growth because there's a limited amount of growth, so companies that can get revenue as 50% a year, 100% a year are are -- i think we're going to see a lot of what we were seeing prior to kind of this value when we saw -- earlier this year. charles: right. i know you're excited, my man. when those growth stocks come on, i get choked up too. [laughter] speaking of excitement,
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individual investors, right, they have been bullish. and bedespite the gyrations we talked about, they held that at a very high level. what's your take on sentiment in general, and it sounds like you believe investors should remain bullish. >> well, charles, just from a historical market perspective, we are till at the beginning stagings -- still at the beginning stages of a bull market. monetary policy and fiscal stimulus is still coming online, okay? that and the fact that growth estimates for the economy, for manufacturing as well as earnings estimates are too low. and i think the trauma suffered in this bear market that we saw last march, it happened so fast so that everybody that was paralyzed didn't do anything, made a lot of their money, if not all of their money back and a lot mored had they stood firm. so i think that versus 2008, that was a slow, steady pain from, say, the summer of 2008 to march of 2009. so i think a lot of people learned the lesson that, hey, if
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i just stand pat, i'm going the make money over time. charles: yeah. no, i -- this is certainly distinctively different than the great recession in so many ways. mike lee, great stuff. we always appreciate it. folks, we're holding in there. mixed bag, but i like underneath the surface things are looking better. liz claman, going to be another exciting last hour of trading. liz: always. i mean, we always have major news, and this hour will not be different, charles. we have this breaking news, we are expecting president joe biden to make a major covid vaccination announcement in this hour. after taking a tour of a virginia seminary, it involves a change in the date that he says every american age 16 and older will be eligible to be vaccinated. does that mean that the american economy will truly be off to the races? more people with shots in the arms, does that mean more people flooding back to the office? the ceo of the the onli


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