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tv   Making Money With Charles Payne  FOX Business  April 15, 2021 2:00pm-3:00pm EDT

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neil: stocks up. charles payne right now. hey, charles. charles: thank you very much, neil. good afternoon. i'm charles payne this is "making money." breaking right now we have a rally on hands. manufacturing is simply exploding and fewer people are losing their jobs. corporate profits getting a major boost as well. there is a new investing dilemma, however, do you chase the winners or bottom fish among the losers? we have a panel of experts that help us sort it all out. retail sales crush -- who will be winners once the stimmie checks are up?
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it will steak more than lip service and chump change but will need meaningful change to match your rhetoric. all that and so much more on "making money." ♪. charles: a strong day for the stock market but these gains do not even come close to telling the story of all the data that came out this morning. we're talking monster bank earnings, monster retail sales, manufacturing renaissance. it keeps getting stronger. while there is no doubt some of this was built into the market already these tailwinds will keep investment proposition, the long side of it i think going for some time. perhaps the biggest surprise of the day, 10-year bond yields moving lower on the news. powell and company convincing markets the party keeps going when the music gets too loud. where does the market go from here? i want to bring in ppac principal, david dietze. say that three times.
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alicia levine and a lawn that saporo. a couple years ago i had a big house party. i hired a young guy to be d.j. he kept blasting the music higher and higher. cops came out and he called the cops again. the d.j. turned music down for a few minutes. this went. and i plugged into my own phone and listened to the isley brothers the rest of the night. the fed is the d.j., the great economic data is the neighbor and bond yields are the cops. they seem to ignore the economic data just like the cops stopped coming after my neighbor called for the 48th time. is that it? is the whole bond scare over? >> nice to see you. we don't think the bond scare is over just yet. we think the pace of increase will slow into the end of the
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year. the first quarter of 75 basis points did a lot of work for the bond market repricing some inflation risk and some real growth. you have positive risks going forward. having said that what we're seeing here consolidation of bond yields because of that spike upward but make no mistake, we have a roaring economy in front of us. we do have inflation risk in front of us. we think bond yields enover 2% by the end of the year. too early to call victory for the bond market but definitely a slower pace going forward. charles: that is amazing though. this reaction, i'm telling you i'm dumfounded. david, how do you play a market like this? major indices are making new highs. lots of individuals names are not breaking out and of course a whole lot of names are down, right? do you chase the winners, even names at 52-week highs or time to sift through the losers? >> certainly we're looking for what fundamentals will be best going forward here and i think we're pretty clear we'll have one of the best economic
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recoveries we've seen in decades, really. we still have very, very low interest rates. we have the pandemic receding. so we're looking for companies that will be big winners once america comes out of their homes and travel again. charles: what i'm asking though, david, what i'm asking, in the first quarter three million people opened an account with charles schwab. they just got into the market. do they buy the stock at an all time high today or look at names that haven't moved and say okay, maybe they're due? >> i certainly like schwab here. they make so much their money on money markets. as alicia suggested, interest rates by next year at this time will being significantly higher. that is manna from heaven. that is the what i would be chasing. >> delano, do you chase winners or say i will buy the names that haven't moved under the assumption they will have their day soon? >> charles, i hate losing.
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i keep going with the winners. momentum swings and trades are a strong theme of the market. those are the stocks that will continue to perform. so you know we talked about, i'm not going to pitch disney to you again. we like microsoft. we saw the acquisition they purchased aggressive management. i will chase the winners here. those companies continue to perform in this market with the backdrop really strong for investors. charles: it is hard to argue against that strategy right now. speaking of winners, megagrowth names are rocking again. alicia, you never really gave up on them. again, sort of folks who are watching this, trying to figure out where they want to make their next move, would you be overweight these names? if so, within the megagrowth area there is a lot of individual industries. any of them standing out to you? >> yeah. so we do think you have to have a core allocation to large cap tech, regardless of where yields go. because the future is tech. you have to be on board where the future is going. so all of the fang names really
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look fine to me. because they have earnings, they have earnings acceleration into next year. so we think that is fine. we like the more cyclical techs in particular, meaning those companies that are levered to the business cycle, greater ad spend, which is terrific. companies their core holdings, you really shouldn't ever shave these because it is usually a mistake. charles: right. >> what we've seen is that they peaked in august and september of last year but they're going higher now because they consolidated. consolidation, you should not be afraid of it. you should built positions here. we still like, still like big tech here. charles: all right which euphemism buy the dipses on big tech names. i have two calls here to share your opinion. couple upgrades on coinbase. raymond james, raymond james went to strong buy on nvidia. went to underperform on intel. i talked about that earlier this week but first is anyone buying
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coinbase? delano, are you buying coinbase? >> yeah, charles. my personal account i did buy coinbase. that actually goes against for the real crypto enthusiasts that against against the ethos. that is whole decentralized model with the cryptocurrency. they have so much tailwind because that opening the door for many novice investors for the crypto currencies to go through the exchange which is coinbase. they have large fees. margins are incredible. i got into coinbase that will benefit from the tailwinds of the whole crip corevolution. charles: i'm stickler for buying the best name in the sector. david, this move this morning, strong buy on nvidia. underperform on intel. a lot of folks are holding intel because it has been around for a long time. i want to ask you, whatever sector you want, the best names in the certain sector that you think will keep working out well? >> so the one i want to highlight here is
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lockheed martin. right now the biden administration wants to hold flat the defense spending budget. that ain't going to work. china is not. that is a tough place. lockheed martin is number one with the f-35 program, the sikorsky program. they have a backlog any other company out there would dream and drool for. only 14 times earnings, 2 1/2% dividend. i don't see how you go wrong with lockheed martin. 440 a year ago. now 390. buy it, put it away. charles: david, while i have you, big time manufacturing renaissance. it is amazing. philly fed, empire state did extraordinarily well. how can we leverage that? >> industrials. all the industrials i think make sense because people are moving, taking advantage of these low interest rates. they will be spending cap-ex and so forth. so your caterpillars, your deeres which already have done well will continue to enjoy this
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tailwind from manufacturing. charles: you know anytime we get euphoric like this i like to bring it back, hey, what are the risks? alicia i think taxes are probably the number one risk right now, particularly later in the year. what is your assessment of the biggest risks for the market right now? >> we have three big risks. we have rate risks. we have inflation risks. yes we have tax risks. let's not talk about taxes yet. if we have taxes of the kind proposed by the biden administration in 2022 it will be somewhat after fiscal tightening because we had so much stimulus in 2021 and we're starting to roll off stimulus in 2022 that if you tax companies at the same time, it is going to be a risk of a fiscal cliff going into 23. i will just remind everybody, if you have that 28% corporate tax rate go through with the new guilty overseas rates, you're looking at the highest developed market corporate tax rate globally. charles: right. >> number one and number two,
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you're reducing 2022 earnings by 8%. if you think you have a 15% earnings growth rate in 2022, what you really have is a 7% rate. everything else being equal, if those proposed tax rates go through and market has not brought this in yet. charles: joe manchin might have saved the day. the moral of my other story with respect to the music, move somewhere where you don't have neighbors. always a great time. appreciate it. thank you very much. i'm calling out big business pushing back on these states voting laws. this is a big thing right now. why this is nothing more but lip service that is actually dividing the nation even further. i'm looking at you, blackrock. first we are going to talk about, listen, we talked about big tech. we talked about biotech. talked all the time about fintech. there is a new tech emerging, agricultural tech. i have the perfect guest and how
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w! ♪. charles: so we all heard of big tech, right? what about a ag? that is booming. the cow guy, scott shellady.
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the foreign press yesterday pointed out bill and melinda gates own 242,000-acres of farmland, the biggest owners of land in this country. a lot of people get upset about that when they hear it. this article says it is a good thing. maybe they will usher in the era of a gtech. tell us what it is and why so many people are excited about it >> roughly 1930s, we got average yield of 30-bushels of corn per acre. 90 years later, we're close to averaging 100 -- 180 bushels and acre, six times. that big pharma, the companies are putting out, we can grow on a sidewalk and grow corn in a glass of water because of technology involved. forget about the conspiracy
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theories with microsoft and bill gates for a second. there is every reason why a guy like that would try to make farming more fish end. continue to make the same gains in the next 100 years we get more and more out of the same parcel. land that is the power of ag tech. not to mention to keep animals healthier, cleaner, safer for our own consumption. there is every reason for a guy like that to be involved. number two, think about the green energy. that is right down his alley. 242,000 acres. there are money he makes leasing the land to other farmers. money from the government, maybe not farming, set aside land this is a great business decision all the way around t doesn't bother me at all. only good stuff will come from it. charles: i have to tell you, i've been investigating it for a few months now. i find so many intriguing names. they're like small. a lot are microcap names. so i'm not sure how to play it
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just yet but to your point i feel like something revolutionary is happening and i want to make sure i'm a part of it. i do also want to ask you, scott, about the dollar. you talk about the dollar a lot. obviously someone who is in commodities. had a strong bounce a couple months ago after a perfect double-bottom. recently starting to look weak again. what happens if we go through and start to get to new lows on the dollar? what does it mean for the commodities, the economy and the stock market? >> for the investors out there it will be supportive to everything priced in dollars here and cheaper for our customers abroad to buy with their currency. that is the easiest thing to say. however the most dangerous thing to say, charles, i think the dollar will be the canary in the coal mine for inflation. everybody on the show is so sure we'll have inflation, guaranteed inflation, i've been doing this job 33 plus years, every time everybody thinks one thing will happen it doesn't normally play
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out that way. i do think if you see the dollar weaken considerably, that will be the match that ignites the gasoline of inflation. if it turns around and start to strengthen i think inflation will stay low and ebb and flow. if you see the dollar tank, everybody out there should know i think that will be the canary in the coal mine that really could ignite the inflation argument. charles: so funny i tend to agree with you, scott, not tend to believe inflation is automatic. the "beige book," i see they used the term moderate over 100 times. before that it was only 70 times, right? not like things have gotten more mundane in some ways. i always appreciate the conversations with you, my man. thank you so much, scott. >> have a good weekend. charles: all right. president biden is using infrastructure, his infrastructure plan to try to overhaul our entire tax system. coming up larry kudlow who has warned biden's tax plan will ignite class warfare, i've got a question for him. do we really need federal taxes
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at all? why do we have them? retail sales surging this morning, the economy opens as the stimmie checks make the rounds. two of my favorites will share what is next for the sector right after the break. traded with a touch. the gold standard, so to speak ;)
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♪. charles: americans went on one heck of a spending spree last month thanks in part to the vaccine and those stimmies didn't hurt. retail sales jumped to 9.% after dropping 3% the month before. much higher than the 5 and a half% which was the wall street consensus. we have heath that herzog and erin sykes. erin, what part of this report stood out for you? >> i think we expected a huge boost in last month's sales. we expected it up almost 7%. 10% in some ways fell short of
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expectations but the problem that i mentioned before when we last spoke we only see these terrific numbers right after a stimulus check is released. i think that is something to take note of that is perhaps a little bit concerning. do we feel the need of this $2 trillion in stimulus? we already have another 2 trillion in savings people put away during the pandemic. so are we setting ourselves up for a big debacle in 2023 when rates do start to tick up again, or, you know, is this for the long haul? charles: you know, hitha, i hear where erin is coming from. i hear surveys, people will do responsible things, save it, pay down debt, only splurge a little bit. i don't know, i think they will splurge more than they say they will but your initial investment of this report? >> i think the splurge is an understatement, charles, it is really about the access to this money. not only getting a third
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stimulus check, but companies like paypal, they're seamlessly letting people access their money without charging them fees and people are able to spend it so quickly, to your point i don't know if they're saving that much. i would love to see what the savings rate is a couple months after this. but if you, either you mentioned what people are spending on, mostly dental and clothing. that is why we're seeing these retail sales go up as well. you know, we're looking at some same-store sales of some of these department stores as well as retailers. that is going up. there is a lot of pent-up demand, frugal fatigue. mix that together, you are going to see it explosion of buying upon buying, at least until the summer months. charles: so let me follow up on that because you read my mind. obviously you know money like this it goes to target, it goes to walmart but the luxury stuff, louis vuitton, amazing. numbers came out for them yesterday, it is the most valuable company in europe.
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i think it is an unstoppable juggernaut. every mall i went into there was a line to get in there. it is a juggernaut. they get stimmie money, money from everybody. a stock like that, would you buy it or chase it here? >> i currently don't own the stock and i think what you're seeing, charles, a bifurcation of retailers. so you're seeing these consumer goods companies like target, walmart, costco, do really well and then you have the other side of the spectrum where people are taking that stimulus check and going and splurging on themselves. they have been indoors for 12 months. they want to look pretty. they want to buy that exciting new handbag or a pair of shoes. i will tell you a very quick anecdote, a friend of mine was telling me how his friend, his mom, stay-at-home mom got $10,000 in stimulus money because they have a bunch of kids. she doesn't know what to do with the money. she is going shopping. we'll probably see some of that.
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charles: erin, i know they let you in the vip door. you don't know about the lines. i've seen them. do you like these luxury names here? how would an investor take advantage of this? >> i think luxury really continue to trend. what we're seeing, the bump, result from is really the reopening of china. 30% of luxury sales come through china. so this is asia driven. slightly u.s. driven by about 10% of that bump was driven by the u.s. but be europe was actually down. so we still have a long ways to go once everyone reopens, once the u.s. is at full production, once europe really reopens their doors, we can see it is bigger bump for lvmh and similar and also you have to remember they got tiffany at such a steal because they renegotiated that contract. charles: they did. >> yeah. they have got a lot coming in terms of the positives. >> i have to tell you, charles -- charles: by the way, i got a
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bumblebee here bigger than my fist, sorry. [laughter] i apologize, but this bad boy is scaring the heck out of me. we're going to go to break ladies. thank you very for you both. >> make sure you're oak. >> we'll be right back. but one day, you're gonna take a hit you didn't see coming. and it won't matter what hit you. what matters is you're down. and there's nothing down there with you but the choice that will define you. do you stay down? or. do you find, somewhere deep inside of you, the resilience to get up. ♪♪ [announcer] and this fight is a long way from over,
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leonard is coming back. ♪♪ ♪♪ ♪♪
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♪. charles: all right. welcome back to "making money." first of all i'm okay. i don't know what happened to that bee, i got stung like that one years ago, my hand swelled up huge. i don't know. let's talk about democratic leadership and their continued push to redefine the term infrastructure, right? because i think it is much deeper, consequential of things going on. other than that, folks, attempts are being made right now to really go against our economic beliefs and championing a whole new system of based on big government, big money printing.
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limited individualism, zero free markets and this is one thing that we're really concerned about. so we'll keep talking about that in this show. do we have larry? okay, okay. we are going to go to larry kudlow on that in a few moments. beyond that i want to shift and talk about what is happening with respect to these big corporations, for lack of a better term have blinked. they have actually gone out there and they are sort of have moved things like major league baseball, things like that. it is a nascent movement, right? but the big corporations are getting involved in local politics. i think they final hit the first speed bump and it's a big one. walmart was on the call held by yale, that led to a letter signed by hundreds of ceo's. they decided to take a stand, right? the movement in fact says, that
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they're against voting rights. walmart also taking a stand saying they are not in the business of partisan politics. as it turns out, hundreds of other businesses have decided to stick to business including coke and delta which is intriguing because they were both vocal opponents of georgia's election law. it is always about the media, right? they have taken this issue. now they're trying to shame companies who don't sign on. give you an example, headline from chicago says, chicago's biggest corporate names missing from letter defending voting rights. imagine being on a list like that? the article points out only three of that city's 50 largest publicly-traded firms signed a statement. only three bought into it. one of the most prominent names to sign is blackrock. by the way they happened to have reported their earnings this morning. that company has become a even bigger colossus, folks. they have $9 trillion under management. 9 trillion. what struck me was the 1.2 billion in net earnings, talking cash to the bottom line.
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larry fink, ceo of the company made what they're calling a bold promise to increase their black workforce by 30%. it is only 5% of the people there the company also pledging to donate $5 million to organizations for equal rights. 5 million to hispanic and black entrepreneurs. think about it for a minute. that is $10 million. you know what that is compared to what they made last three months. .00083%. that is what it is. it is not magnanimous. it is not righteous. not even particularly helpful. before blackrock and all these other companies check a box and pat themselves on the back, i want to make a plea to them. if you really want to help the area we need help is education. public education systematic larly in progressive cities is an unmitigated disaster. i have so many ideas how to make real investments in physical education centers focus on students and their parents. stop wasting your time on
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division, stop supporting inaccurate narratives only increase tensions in this country. if you really care, make real investments, put it in real time, go beyond the virtue signaling, use your economic night to fellow your economic americans so they can help themselves. please, corporate, america, i'm pleading with you. so this brings me to the nation at large because we know there is no argument, we are a divided country right now. in fact two supreme court justices on opposite sides of the political philosophy aisle issued a warning yesterday calling for a return to civil discourse. justice sotomayor and gorsuch agreed the inability to listen to each other as americans is a national security threat. joining me now, senior policy analyst at independent women's forum inez stepman. this notion that this has become a problem, that it is the ripping the fabric of our
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country apart. >> that's right. the divisions are on basis of policy which we always had. they come down to very fundamental concepts what it is to be an american. things we took for granted like free speech. particularly those justices are thinking about the fact that while free speech protections have been protected and expanded in the court system we have this cultural divide over free speech where 65% of americans are afraid to share their political opinion with friends and at work. this is the kind of divide that is happening in our country. and yes, it is pulling us apart because we no longer, we no longer have agreement about some of these fundamental principles that used to be sort of agreed on by both political sides like free speech. charles: yesterday the former polish minister said america had a heart attack. i thought it was an intriguing analogy. i don't agree with a lot of his suggestions. i think if you use that analogy,
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the cholesterol of this heart attack has to be political division. this might explain why there is absolute surge voters identifying themselves as independents. is it time for a third or fourth political party? could that be part of the answer? >> i'm not sure a third or fourth political fourth political party will be an answer. we have parties prop up around a issue that either party is not addressing, they get eaten up by one party or the another. that traditionally what happened in our two-party system. i agree the cholesterol is not only division, it it is attacks on what used to be agreement on both sides. structural aspect of our constitution. independence of our judiciary, polland has huge divisions in that country over judiciary. we have proposals like expanding the supreme court, packing the supreme court, start to be proposed.
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that is an attack on the independence of the judiciary. these kind of structural divides, these we cannot continue to have at this pitch, at this level and to continue to call each other fellow citizens. it is extremely dangerous. charles: so i'm, someone has to take a stand you know. a week ago i was saying joe manchin is something of a here. a lot of people think he talks out of both sides of his mouth. someone has to take a stand. they're talking about changing everything, including expanding the supreme court. if we go there i don't think we get back to where we need to be as a nation. >> very much, i think buck sexton made the analogy on twitter this is the rubicon. there are all kinds of structural attacks we've been enduring last five or so years. we've seen, supposedly apolitical agencies weigh into political matters in washington, d.c. that used to be a rubicon in our politics. these are extremely dangerous forces we're playing with.
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i agree with the polish representative to this extent. we think of liberal democracy in america as taken for granted. we're an exception to the rules that govern humanity and the empire collapsed. we're not an exception. these are dangerous forces to play with. charles: right. although we have up until now been exceptional i think. inez stepman. thank you very much. folks we keep hearing all the gloom and doom about money printing and massive debt. could these economic truisms be wrong? i will ask larry kudlow next. we'll stay on the markets as we head into the final hour of trading. we always focus on ideas you may want to own before the closing bell. we'll be right back. seeing blood when you brush or floss can be a sign of early gum damage.
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♪. charles: so while democratic leadership continue their public push to redefine what infrastructure is there is a much deeper and seriously much more consequential attempts being made that with respect to economic beliefs and championing new beliefs that center on big, big gargantuan government, a lot of unlimited money printing but limited individualism and zero free markets. on that i want to bring in "kudlow" fox business host,
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larry kudlow. larry, i had a great chat with art laffer this week about bidennomics and the attempt to dismiss supply side economics. i want to continue with you and i want to start out with debt. fidelity put out an interesting chart about debt using japan. what they're essentially saying the notion of money printing leading to debasing of a currency or hyperinflation it, doesn't happen. they also suggest that the monetizaton of debt has not yet triggered inflation. so you know, i mean what do you say to someone who says japan has done this for a long time, and none of the crazy things we predict happened to them? >> that is an interesting point. we're not japan but i think it is an interesting point. i mean, look, i have never really worried that much about deficits and debt. it depend why you're using them, all right? they're a financing tool. they're a means of finance. so, if you are reducing marginal
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tax rates, charles, which is a very good thing to do in my judgment, creating economic growth incentives which also are a good thing to do, and you want to issue some debt to fund it in the short run, i think that is a great thing. i don't have a problem with that. like any business, you take a look at the cost of finance and rate of return on investment. i don't have any problem with that. on the other hand if you're ballooning deficits and you're ballooning debt in order to finance huge increases in government spending, in transfer payments, entitlements, then you probably are going to have a problem, and it is probably going to clog up and throw sand in the gears of the american market-oriented economy. i will say one more thing. i have a statistic i want to throw on the table for you. right now with all the debt we've had, in the last 12 months we issued something like four trillion dollars worth of debt because of these covid-19 relief
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packages. treasury debt in public hands, charles, is about $21 trillion. sounds like a big number. on other hand household net worth or consumer net worth is about $134 trillion. charles: wow. >> so put your corporate finance hat on, put your market hat on. the debt equity ratio of about 16%. that is all it is. it by itself i don't think tells us anything. i don't think it is that big of a deal. charles: great. listen, i wrote the numbers down. i will never forget them. let me ask you, you brought up taxes. the debate raging on corporate taxes. i want to focus more on federal income tax. it only became constitutional in 1913. with congress the right to collect taxes. in the past 220 years federal taxes as a percentage of spend having declined sharp hi to the point where i think it is a
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legitimate question to ask, why do we even need federal taxes anymore? >> well, okay that is an interesting point. i think you're referring to federal income taxes, correct me if i'm wrong? charles: right, yes. >> federal income taxes, look, unfortunately we've loaded up the tax code, with deductions and credits. that is a way of spending through the tax code. it is highly inefficient. we should be lowering marginal tax rates and broadening the base by closing the loopholes and special privileges and special interests. charles: right. >> that is a supply side solution that would provide, you know, that would let you keep more of what you earn, more of what you invest on the extra dollar added. so that is the key point. do we need a federal income tax? look, before the 16th amendment they used trade revenues, tariff
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revenues, charles in order to finance the federal government. now momentarily, temporarily abe lincoln put an income tax in of 7% to finance the civil war, the union side to abolish slavery. i actually think, looking back on it that was probably a very good investment. then under ulysses s. grant, one of my favorite presidents, income tax was taken to the supreme court, it was ruled unconstitutional. that was very cool. u.s. grant not only abolished the income tax and put the dollar back on the gold standard. he is a much better president probably than anybody understands. today i would settle for flat tax rate. i'm a steve forbes guy, art laffer guy, laffer curve, guy. i would say don't worry about deficits and debt. you want to minimize tax rates in order to maximize incentives. the way to do that, cut the tax
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rate, broaden the tax base. get rid of all loopholes, special deductions, special credits. you have a much more efficient system. you have a much stronger economy. by the way what the bidens are doing now, you saw the numbers today, right? you're a market guy. charles: sure. >> retail sales boom. got an industrial production boom. we are booming because the pandemic is coming to an end, the vaccines are spreading and businesses are reopening. that is the best possible stimulus. it's a supply side tax cut effect. now the bidens want to interfere, right? they want to maximize taxes an want to maximize regulations and i think it will be a big problem. we should enjoy the boom of 2021 but by the end of the year they start raising taxes on everybody, including you. you're probably an llc, charles. you will get your tax rate raised. i'm guessing on that. if they do that everybody will produce less and work less, trust me on this. charles: you're right.
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listen, they're going to take this boom which is an extension of things that were done that you helped to orchestrate, use it as an excuse for higher taxes. i'm afraid what is going to happen. larry, thank you so much. folks you have to watch this every single day. "kudlow" 4:00 p.m. eastern sometime. >> bless you charles. charles: right now the s&p 500 and dow on record paces for closing at all-time highs when it comes to make money it is never too late. we have final trades you must consider. we'll be right back
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charles: breaking news, former vice president mike pence is now recovering after having a pacemaker put in yesterday. his spokesperson confirming the routine surgery just moments ago, he is expected to fully recover and return to day to day activities within days. a pacemaker is used to treat abnormal rhythms for your heart. we talk about all of this great economic data the, right? we didn't really get to the best news from main street. that was the dramatic decline in initial jobless claims, down to 567,000. that's the lowest in the pandemic era. meanwhile, high frequency data like airline traffic keeps picking up, but this is also some signs that parts of our country will never get back to normal. joining me now, mitch roschelle along with david nicklaus. initial jobless claim, it's
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going down. we still have 16 million people when you add up all those different forms of benefits, that's a two week-delayed number. what does this mean for the economy and the stock market, mitch? >> i think it's the greatest news of the day, to be honest with you. you know, add that to the retail sales and, boom, just like you had in your tweet this morning. but it really shows queer opening -- we're opening up the supply side of the economy. people are getting vaccinated, companies are opening, more and more companies are setting target dates for getting people back to the office. you start having commerce again in inner cities, it's really, really a good story, and i think the rally today is going right into that. it's the reopening trade, but it's not the reopening names, it's the broad economy that's showing signs of real strong strength. charles: david? >> absolutely. the u.s. economy, it's set up perfectly for a satching
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financials closely. charles, we could be setting ourselves up for a multiyear economic expansion, which is great. you had this couple earlier saying essentially we aren't as concerned, but you have got to have the economic growth to justify the deficit spending. so i would say this is great, but we have to see continue want of the next over 2-3 years of this expanse. if not, that's where it gets costly, right? it takes a larger share of the federal budget. so i am optimistic about the report. it's fantastic. we just want to' that trend continue. charles: it does feel spotty, right in larry fink from black ron lamented that his firm didn't have to be in new york city, we've heard that a lot. anywhere it's tax-friendly and warm. and, mitch, it feels like really you've got the south and southwest that are just doing extraordinarily well. now miami is trying to become a financial hub. are there ways in the market to
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take advantage of that kind of thing like where all the money, all the growth is happening? >> i think you look at the fact that people are moving as a result of that and, charles, this is a trend that we saw before the pandemic. and what's happened is it's just gotten hyper-accelerated. you layer on top of it the fact that taxes may be going up in general, it makes that lost state and local deduction even more powerful. you look at home improvement retailers, or lowe's, home depot, lennar's a big home builder in florida, pulte in texas. i think there are a lot of ways to play this, but just focus on the fact that people are moving, and this is a force of nature, and it's not going to stop anytime soon. charles: two days in the books, guys. earnings season's been phenomenal. [laughter] a lot more to go. we've got to leave three other names reporting next week, david, you mentioned the banks already. how do you think earnings are going to play out, and where are
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you focused with respect to making money on this? >> yeah. i think the earnings outlook should still continue to look good, but my story for the next quarter is really tech. we saw some of the selloff in the nasdaq and this concern about interest rates, and i think we saw a lot of value in tech. nasdaq was down 14% top to bottom from where it is today, so going forward i think it's going to be harder to find value. when you can't find a lot of value, you buy strength. so i think some of these tech companies with strong balance sheets, strong growth rates, that's where i think you're going to see money flowing in for the next quarter. charles: mitch, i've got to ask you about our dear kathy woods. she bought about $260 million worth of coinbase. i know you're a fan. do you like to move here with respect to coinbase? >> i do, and i like what she did. she sold a bit of her number one holding to fund it, tesla.
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and it really says if you look at the names that she has in her top ten holdings, arc innovation, you really see that a company like coin fits in because we're looking at the ecosystem for commerce in the future, and a crypto-based company makes a lot of sense for her. charles: we've got to leave it there. as long as you give it in your vote of approval, i line it too. it's a fantastic session, and i think this hour -- last hour's going to be even more so. liz claman, over to you. >> dow 34,000 is here, charles, but with now 59 minutes left to trade, can it stay here? the record day on wall street unfolding in this final hour courtesy of blockbuster retail sales numbers and jobless claims which actually hit the lowest level since the pandemic began. so end keep your eye on the dow jones industrials. it's up to 34,006. and the s&p, that's a record too. we only need to be up

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