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tv   Making Money With Charles Payne  FOX Business  August 23, 2021 2:00pm-3:00pm EDT

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vaccinations, for new jersey teachers and staff and in new york requiring all educational staff members, teachers, principals to be fully vaccinated. expect more to follow. leave you with the dow jones industrials up 261 points. those drug makers and a lot of those coming out of the pandemic, at least smoothly up, up and away. now to charles payne. hey, charles. charles: neil, thank you very much, my friend. good afternoon, everyone, i'm charles payne. this is "making money." breaking right now, economy slowing, check. confidence falling, check. virus spreading big time, check, the fed will keep printing, check. how much longer can we hit new highs despite higher inflation and economy? after friday fed saying maybe he won't, maybe he won't go for early tightening? meanwhile the buy on dips crowd they are winning yet again. speaker nancy pelosi making
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house lawmakers return from august recess early. hunkering down on the budget ball well the moderate democrats. something expensive is afoot here including huge taxes. we have art laffer here about that. we'll talk to him about stagflation and class warfare. all that and so much more on "making money". ♪. charles: well, it is not unusual for wall street strategists and analysts to get real defensive about their calls but when a 10-year spiked back in march and april there was a stampede to get out of growth and into cyclical, value, same thing but nobody was talking about owning defensive names. as it turns out the last three months save for today have been amazing for the defensive sector. in fact they have rivaled growth in terms of upside while value, it is for the most part fallen by the wayside. last week it was utilities, strongest sectors, industrials,
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materials, financials, energy, they all plummeted. they're up today, the question is when you talk about the barbell strategy should it be growth and defensive? delta variant is taking a to on large parts of the economy. this caused bank of america to lower the third quarter gdp to 4 1/2%. they were 7% going into the weekend. i suspect more firms on the street will bring their numbers down. even fed hawks are starting to talk about taper policy a slowdown next year could take tapering, end the whole thing, make it a moot point. joining me to discuss all of this kevin moss is with us. kaltbaum capital management, gary kaltbaum, along with money map press, one of the superstars over there, shah gilani. gary, let me start with you. you're a huge growth guy. you started to nibble a little financials. would you let those ride
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considering it is a tough few weeks for them? or would you continue to add to them? >> financials have been fine. my favorite names, goldman, morgan stanley, wells fargo, bank of new york, normally pullbacks over the last week. i think they're going higher. i do believe rates are eventually going higher which will help them out. so i have no problem with them but look, the real story is growth and now you have the nasdaq, the nasdaq 100 breaking out to new highs and i suspect there is going to be some fireworks in the weeks ahead. i know there is a lot of talk that september has to be bad. i'm not so sure. because i'm a big believer when you get bigger indices moving out of range, it is usually meaningful. that is where i am right now. charles: i'm not big on the go away in may, summer doldrums, all that stuff. you miss big opportunities. gary, quick before i go to the other guys what about defensive stocks, some defensive sectors
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have been stealthily amazing. are you in some of the other guys. >> coca-cola, pepsi, philip morris are all doing pretty darn well and i think that has to do with the fact that the virus picks up worry about the economy but longer term for me find the companies doubling and tripling their business over a two, three-year period you will win out much better than those type of areas. charles: shah, you were way ahead of almost everyone on wall street that i know of with respect to financials so this little pullback gary and i was talking about i'm sure you're still up big. do you stick with them or do you take anything off the table here? >> not taking anything off the table in terms of financials, charles. i think they will continue to do well. i think the little dip is a buying opportunity in the financials. i think as interest rates rise i think they're going to rise. i'm calling for the 10-year to be about 1.75, 2% at end of
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third quarter. we'll continue to add some more positions and i've got a few. i will add some more down here on some of these dips. financials are the way to go for me. charles: shah, before i move on i think you said something about being in nextera about a month ago. the reason i recall that i told everyone this would be the biggest winner under president biden because it was an amazing winner under president obama. they got everything. are you long that? is that your exposure to utilities? >> yes, still like that, charles, that is the renewable energy story for us, wind, solar, certainly like that space. they speak to that directly. it has been a great stock. no reason to sell that right now. i think it has a lot higher to go. charles: so do i. own that as long as president biden is in office. kevin what do you think the right mix is in this environment knowing that the pendulum swings back and forth. one day it is this theme.
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next day is a different theme. >> we've been recommending a barbell type of approach for investors quite some time, charles. growth investments with biotech, technology and e-commerce, value investment scenarios of companies with low pes, strong balance sheets, pay a reasonable dividend on both sides of the barbell with allocations roughly 40%. in the middle of that barbell a 20% allocation to more defensive equities in areas such as utilities and consumer staples that pay an attractive dividend because that allows the investor to stay invested in the market, gives them upside potential, little downside risk and give them income lacking from traditional sources of -- charles: right. probably also assuages their anxiety when ever we have the crazy things. you're absolutely right. this morning, guy's, market pmi came in well below consensus, manufacturing. overall number 8-month low.
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there is serious tug-of-war going on right now. you have the input, for them, fights inflation, accelerated to the second fastest pace on record. they recorded some price inflation on the selling side. but, shah, i mean, obviously every company cannot pass on these higher costs. so for me the ones who can will make a lot of money. do you know names like that? >> i've got a list of names we're putting together. we're not into most of them yet. i think we want to see really what happens in the beginning of this new quarter. i certainly wants to see what happens in the end in terms of earnings and ability for companies to pass through price increases. that will determine for me going into the fourth quarter who i will put a lot of money into, certainly next year. yeah, will be about earnings leverage and about pricing power and final sales what they will do. that will determine the winners will be especially in 2022. charles: kevin, let me get back to you on health care innovation.
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your firm's letter, they're was a mention of aggressive merger around acquisition activity. we see these deals every single day. i have to be honest with you. i'm frustrated because i rarely ever know these names. i wish i did because they're up 50% in a day! how do you zero in on potential targets? >> sure, maybe we can help. we look for smaller biotech companies that have at least one drug in fda level 2 or level 3 clinical trials that have a catalyst event date, that being, example drug royalty over the next two years. typically the underlying drug represents groundbreaking technologies and health care innovations in our country such as immunotherapies, gene editing and alternative boards of medicine. one great example of, charles, acquisition of gw pharmaceuticals by -- pharmaceuticals that was in our health innovation trust.
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we think the upside potential of m around a opportunities with smaller cap biotech names. charles: gary, this morning china approved analog devices maximum merger. that gave the semiconductor as spark. always in them. tell us if you're up. we're all okay. i know you're doing great there. are there any laggards in that space? by the way, speaking of china have you bought any chinese tech names yet? >> oh, heck no. i don't have the stomach. when i see those -- companies down 90% from the highs of february no thank you but i will say that i do follow alibaba every day that would be my best name if things start to turn but when you have to go to sleep at night wondering what they're going to say in china about more regulations and just stomping out capitalism there i find other places. so, and as far as stand, they're
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acting good again and god bless them because i'm loaded. charles: all right. real quick, shah, you have a cast iron stomach. are you buying any of these chinese names on weakness? >> i'm on edge of my seat waiting to buy, charles. i think they are starting to look good. i will give them another week or so i would really like to see a rounded bottom better. i like to see a little bit of buying come in but as far as big funds, arc innovation fund, cathie woods they're out, a lot of big institutions are out. that means that clears the decks for me. i'm getting in, might go back up, might take a little bit but they will go back up for sure. charles: kevin, 30 seconds, i want your opinion on bitcoin back above 50,000. i know your firm likes blockchain names. how do you play this? do about it coin or via equity with exposure to bitcoin? >> great question, charles. we see more upside potential for those developing the blockchain or embracing the blockchain even
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beyond cryptocurrencies like bitcoin, like health care, consumer discretionary. it is hard to find names that have reasonable trading volume, strong balance sheet and growth potential but one day we have the technology revolution is riot block chain. we think that company does have strong investment merit. charles: riot, i'm telling you has been amazing. last year it outperformed all cryptos like a zillion to one. i get in who are hopscotch. i get in for a trade and out of it. maybe you want to buy one of these things to hold tight. we no who has the cast iron stomach in this crew, it is kevin. all you guys, thank you very much. >> thank you. charles: showdown between the speaker and democrat moderates is on, folks. house speaker nancy pelosi calling all lawmakers back early from recess. she is determined to pass the spending bill or crush the infrastructure plan. congressman guy reschenthaler joins us next.
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$3.5 trillion spending plan. the move intensifying a showdown between fellow democrats including the moderates in the problem-solvers caucus. listen, they demanded a straightforward vote on infrastructure before they woulding that kel this gargantuan spending bill. congressman guy reschenthaler from pennsylvania joins me now. congressman, seems to me speaker pelosi is really holding the bipartisan infrastructure bill hostage. that is pretty plain. daring the moderates in her party to try to stop her. walk us through the process. your thoughts whether the moderates stand up to her. secondly what is happening here? why is this whole proper -- procedure so important? >> thank you, charles, great as always to have me on. call me guy. i just stepped out of the rules committee and what is happening there that nancy pelosi is combining all three of these bills like you said into one rule, meaning that the democrats
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will have to vote not individually on each bill or not for each individual bill to bring it to the floor. they will have to vote on all of them in one vote which makes it incredibly hard to parse this out so it is one way she is forcing, i hate saying moderate democrat there is really only i think one moderate democrat left in the party right now, at least in the house but the more traditional democrats, pitting them against the liberal progressives. now once this, i believe this will pass out of rules committee. the question is, will the entire floor pass the rule to call up these three bills? remember nancy pelosi despite the rule is still insisting we vote on what i call bernie sanders budget, on $3.5 trillion spending spree. she is still insisting we vote on that prior to the transportation infrastructure bill. now with the other question, will the democrats hold strong, will the traditional democrats hold strong? i don't know.
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i know often times i'm wrong when i bet against nancy pelosi's power within that party because she does, she does rule that conference with an iron fist. probably putting all kinds, probably putting the screws to these nine or so democrats who say they won't vote for the 3.5 trillion before the the t t&i package. charles: lawmakers have to come home with something. she has the carrot and stick, maybe putting the screws to them, but what will she offer in return? it is pretty clear the progressives are not saying much. they feel pretty comfortable this will get through but the margin is also thin. you mentioned one person, i would love to know who that is, one true moderate that you're talking about but is it still possible at least three of them stand their ground? >> well you have nine that are saying no as you said we need three to stand their ground. nancy pelosi has all levers in
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the house. not only monster fund-raiser in the party can do everything too controlling the members schedule hinganhinghas t t imp itt the te ydevaye. le.e. meth lme thet thehet d an wase bntolt cause cause uusestand cke cesic he. he.e. thwiancy pwiancynd the demo deatstat allbout da.nsilo and p png h isthis plathysth.utti s s s lef i i i ild c spk hereelos pelis pelis r shinshe tor ofer tdhehe eeir docraem pttyar causehes i priri oser over me tonalalaltheer liliemococ. as s prior tradira libelilliemocratsoc we would voe on the trans fortation infrastructure package first but she has to placate the radical base, the radical element i think now is the majority of the party. charles: whether it is the majority or not they certainly seem like the most influence is all that really matters to your
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point. you still haven't told me the moderate democrat but before you do that, i don't want to run out of time without mentioning to the audience who may not know, you're a navy vet. you were a member of the judge advocate general, jag corps if you will in iraq. how do you feel watching what is going down in afghanistan right now? >> i'm horrified, charles. we could have a discussion whether or not we should have stayed in afghanistan or not. i think we should always have a presence at bagram air force base at the minimum but the fact we're now pulling out like this, retreating, in essence, handing this country back over to the taliban after being there for 20 years, it is heart-breaking. it weakens our prestige on the international stage. it makes us more vulnerable to china and russia. this was an absolute embarassment the way it was done and conducted. i am horrified, this, mark my words, charles this retreat this surrender of the taliban will be tattooed on joe biden's legacy
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for the rest of his life moving forward. he has to own this. this will forever stain him like the hostage crisis did for jimmy carter. this will be with joe biden. since you forced me into it i will give a shoutout who i think is the one last true moderate democrat in the house of representatives, that is my good friend from texas henry cuellar. he is only one you can say is a blue dog democrat. the rest look at their voting records. they vote 90% in lockstep with pelosi. charles: i have huge respect for cuellar, congressman cuellar. he is for the people who sent him to washington, d.c., period. congressman rest -- reschenthaler, thank you. >> thank you, charles. charles: -- playing this economy, but what is the greatest threat? we're now hearing stagflation, deflation, inflation. tweet me @cvpayne. i want to know what you think it is. it is a second class, this is
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♪. charles: big news in the war against covid-19. the fda has granted full approval of the pfizer biontech vaccine. many on the fence about taking the vaccine have actually pointed to a lack of full approval but will this be enough to substantially move the needle, particularly with stubborn groups like health care workers for instance? i want to bring in fox news contributor dr. marty makary. dr. makary, what are the new distinctions that come with the new full fda approval rather than the prior fast-track approval? >> not really. just sort of putting their faith and seal on the drug but it has
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been about six months overdue now. 364 million doses have been given out in the united states. the fda claims that they were collecting six month follow update at that but in general with vaccines when you see complications you see them clustered right after the dose, not months down the road. charles: so meantime lots of fingerpointing. we talked about this on and on. a lot of blame game stuff going on with those folks who are still hesitant but according to analysis of data one out of three workers in the nation's largest hospitals have not received a single dose of the vaccine. so what's up with that? >> well a lot of them have covid and they have immunity and they're listening to this idiotic, absurd, illogical policy that we should immunize those already immune. it never made sense and dismissing natural immunity in these vaccine mandates is ticking a lot of people off who are scientific, who are
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reasonable. we just don't see reinfections result in severe illness. it has been a year-and-a-half now. things could change in the future but right now people have a good reason to say, hey, i've got immunity already. charles: what about these, what they call the breakthrough cases, dr. makary? it's, i mean you started getting those and then there is the idea that well you can have, be vaccinated and still carry the virus and now you need a booster shot after eight months. it doesn't generate the kind of confidence obviously you want if the goal is to get more people involved. >> well even more so i would add to that, charles, it doesn't generate confidence when there is no data to support boosters reducing severe illness. you basically have this announcement from the white house which was leaked the day before, hours after the afghan airport video went viral, almost as a distraction and the white house basically said, people are going to need boosters. the cdc, the fda need to approve
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it for this purpose but people are going to need boosters. since when do we work like that in science? charles: yeah. the sad irony they're losing so much credibility and they keep blaming other folks for not taking the vaccination. moments ago president biden said he will address the nation on how to get our kids back to school safely. in your mind what age do we draw the line for children having to wear those cloth masks? >> well i would love to to see data that help kids under 12. kids are very inefficient transmitters. assume they do, anybody that wants to wear a mask they should but i'm not sure any kid can avoid getting delta between now and january, which is earliest we see a vaccine for a kid under 12. if kids are high-risk, they are the ones that bounce to the hospital. they should do every precaution they possibly do. i'm not sure any of those
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mitigation steps matter a lot. charles: i have less than a minute because i have got to ask you, you wrote the, the price we pay, you wrote that book in 2019, what occurred in the crisis sort of for told in your book? >> charles in the book, i talk about the medical establishment and group think that goes along with it and how dangerous it could be. it turns out when the pandemic hit it got us into deep trouble. we had a vacuum of information and research couldn't be mobilized, everybody thinks a like and dismissed. that is not good for science and the future of health care and food, medicine, environmental exposure, treating life-styles for disease not just medicating and there is a movement to push that forward. charles: dr. marty makary, thank you very much. always a pleasure to have these conversations with you. >> thanks, charles. charles: joining me now, p pack private wealth managing
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principle david dietze. how much do you think the reaction to the approval of the pfizer vaccine? >> i think it's a significant driver. with this full approval arguments against getting vaccination start to fade a little bit. of course i believe it give as little bit of backbone and employers and other institutions who want to require vaccination as a condition of participation but make no mistake, charles, that is not the only thing. i love the fact that china has covid-free day. the other thing is watching a possible taper announcement at jackson hole. that seems to be fading very fast because of the rice of uncertainty behind the covid-19 delta variant. underscoring the fact the jackson hole meeting is virtual, unlikely we hear a definitive announcement of schedule of tapering at jackson hole and that nana from heaven for the
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markets. charles: fading fast is consumer confidence, investor free fall and market is going up but that is not necessarily unusual but there is point where particularly anxiety among consumers becomes self-fulfilling and can harm the economy and the market, do you see that on the horizon anytime soon? >> of course, charles. whether you pick up a newspaper, tune into your show, hear increasing number of hospitalizations et cetera, of course your sentiment is going down. can't go back to work, the restaurant is now requiring a mask. that drives sentiment t comes back to the delta variant, to bring the conversation full circle why pfizer's announcement was so important. from an investor's point of view better markets follow pessimism and tired markets follow ebullience. charles: a minute to go.
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what is your greatest concern right now? what should we be worried about? bad news is not hurting as long as it makes the fed feel like the fed cannot taper the markets is okay with anything. >> for me two things should be watching. of course the delta variant. what if there is another variant of course not captured bit vaccine and so forth? of course one thing of course is a policy error. flattening of the-year-old curve, with the economic data coming in flattish here, greater uncertainty for consumer sentiment as you pointed out for the fed to go forward here an abrupt announcement bringing the taper sooner i think that would be policy error, that would be an unforced error and i think that would not be taken well by the markets. we're watching that closely. charles: i agree 1000%. i do not see jay powell allowing that to happen. no matter how much the members chatter i don't think he will let that happen.
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david, thank you very much. federal unemployment benefits are killing the restaurant industry. stay tuned which chain is closing their dining rooms. we're talking about a ga gargantuan restaurant chain. they don't have enough workers. what is the greatest threat to our economy? we'll ask reagan economist art laffer. we have got the man himself. we'll be right back (vo) singing, or speaking.
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they sent searches for stagflation surging. joining me former reagan economist art laffer. i want to get your initial thoughts overall on the economy. high frequency data starting to come down a little bit, the growth of the delta variant not getting arrested anytime soon so what happens with gdp? >> gdp grows very slowly, charles, for as long as the eye can see. whenever you have programs like this, they are redistribution programs, what they do is those who give a little more and give it to those with a little bit less. taking from those that make more, take away indent sieve to produce and they produce a little bit less. government spending in transfer paints reduces growth and gdp and this is the colossal elephant of redistribution and it will insure to the detriment for u.s. economy for literally
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decades to come. charles: wow. it is nuts because, art, the white house just last week, thursday, friday, telling states to go ahead to tap into extra, cares act money, keep paying those federal unemployment benefits past september 6. one industry really getting crushed is restaurants. there was a survey in michigan of the hospitality industry. 8% -- 88% had you inadequate staffing. 95% raised wages by 10% around fleck hours. chik-fil-a has locations where they're closing dining rooms. this can't be about economics. i believe people doing this are smarter than that? >> you know, it is just crazy. i don't know anyone who believes that paying people more to be unemployed will help the economy. i just don't see it. i don't see how giving businesses loans and forgiving those loans tax-free will help
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the economy. it is not rich versus poor or old versus young. it is none of that stuff. it is just simply bad economics. imagine if you taxed everyone who worked 100% of their earnings and you subsidized everyone who didn't work 100% of the proceeds. there will be no work or output period. it is not -- charles: that is where they want to go. >> that is where they're going. charles: i think that is where they want to go! >> i don't know why they want to go. i don't think they are smart enough to want to go that way. it is terrible, terrible for democrats, terrible for republicans and anyone voting for this bill, literally will have to irbat consequences of these actions in their memory and in their legacy forever. this is as bad as obama and w what they did with their stimulus funds. the next eight or 10 years we got no growth, not one year of growth 3% or higher. not one year. and they wonder why we're having all of these problems.
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you worry about china long run, i heard you a lot, i love your show, imagine what this will do to growth over the next 10 years versus china's growth? we'll become a has-been nation in the next 15 years. and it is -- charles: art they use one word though to justify it, they use one word to justify, they say it's fair. >> let's say it is fair everyone comes out the same at zero. i don't think that is fair. i think that is awful to the future generations. i think what poor people need what anyone needs is a good high-paying job. i'm a kennedy democrat and reagan and trump republican frankly on economics and i think anything that stops the good production and incentive effect the of a healthy economy will hurt us all in the future and future generations will suffer especially the poor around disenfranchised. they have no chance in a sluggish economy, none. they wonder why they're doing this. i have no idea except for
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political power and even there i think they're wrong. i think the democrats will lose handily if they pass this 3 1/2 trillion dollars. it is not good for anyone or -- charles: just to add one thing to what you're saying, art, i just add on, with all of that to also provide a subadequate, these weak curriculums and then have the audacity we'll give you free community college with someone reading at an 8th grade reading level t all stinks to high heaven. you're a legend. >> charles, thank you so much. me to. i love being all. thank you. charles: meantime, folks the taliban, they were able to take afghanistan. here is the problem, they're actually facing a cash crunch. many are saying where will the cash come from? china is kicking around. iran already sent them fuel but what about the united states? fearful afghans desperate to leave hitting a fever pitch, with the taliban drawing a line
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images of increasing violence and harrassment. we all pray and wonder if we will be able to get all those americans out and also those folks who aided our fighting men and women over there. i want to bring in lieutenant colonel james carafano and, colonel, the post analysis on this it will come although it is hard to see where it made any sense to close our airbase there, bring home the military before the civilians. of course right now all eyes are focused on getting everyone home safely. what are your sources telling you? what is going on right now? >> look i just talked to a guy five minutes ago who has 300 people that he is trying to get to the airport and he has no way to safely get them to the airport. that is the third contact i have had today about these kind of groups. so people are desperate to find people who can safely conduct them to the airport. so there is a huge pent-up demand to fly out of there. there are planes sitting on the
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tarmac, empty, waiting for their passengers because people cannot find a safe way to get to the airport. i don't think that we have, i think we've got a significant population that is still trying to get out and they won't get out, they won't all be able to get to the airport by a deadline. it is not a taliban deadline. we came up with the stupid deadline of august 31st. charles: apparently they have hijacked it though. here is the perplexing thing, i'm not sure why we don't have a clear idea, better a approximation, a, how many americans are stock over there, i don't know if you heard yesterday, the administration is blaming americans for hanging out in afghanistan waiting too long? >> look this is the problem with how biden decided to bug out of afghanistan. this was the no plan plan. he thought that the afghan, since he was gifting afghanistan to the taliban, they would just let us leave quietly and the whole idea was we would kind of move out and taliban would sit
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there to wait for us to leave. if we signaled to everybody we were going out people would know that the kind of the jig was up and everything would accelerate. not only did the idea was to sneak out, because they couldn't have a plan, if they had a plan people would have found out about it and would have spoiled the no plan plan. they intentionally had no plan to alert anybody they were leaving and then they forbid creating a contingency plan against their no plan plan failed. charles: so yesterday president biden did briefly mention the economic quandary afghanistan now finding itself in. their atms are running out of money. the currency hit a record low. how involved should the west be, should the west be involved at all of any funding of afghanistan, particularly the united states? >> yeah. no. people have to understand what do the taliban want money for? they don't want money to reconstruct the country or build
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infrastructure. they don't do that. they don't care about that. what do the taliban use money for? they use money to pay people off so they're in charge. so western aid doesn't work for them because western governments don't give the taliban money to hand over to warlords or to pay for heroin cash crops. so there is no way that our money is attractive to them as a tool of nation, because they don't do that they have plenty of ways to get money. they can do it through transnational drug activity. they can siphon it through china or pakistan. for the west to give them money would be enabling the regime to tighten its control over the people of afghanistan. charles: right. we should point out we spent 28 billion on armament. 600,000 rifles, machine guns, 76,000 light vehicles, over 200 helicopters. all of it falling into the taliban's hands. how formidable are they right now? thanks so much, lieutenant
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colonel carafano, been too long. always thank you for your expertise. >> thank you, my friend. charles: it has been a tantalizing day in the market. a lot of names on the upside. we're building momentum from friday. there are still a lot of opportunities out there. we'll try to find them for you. stick around. we'll be there after the break. ♪. that building you're trying to buy, you should ten-x it. ten-x is the world's largest online commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it.
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>> # by the dip it's worked once again and once again being led by the growth names, it's been very profitable for folks who are willing to take the plunge this week were good to get a whole lot of data in this from housing markets, income of spending hours on friday and the big question there will they keep this economy going despite the roadblocks i'm into bringing key advisor eddie with simply trading danielle shea, first i have to give you props danielle, the streets stampede the value after the tenure spike and of course it's been mega cap, for the most part every average day somebody has their moment but the mega cap saving the day once again, stick with us. >> absolutely i am sticking with it and everybody is walking out of the space and what gave the people opportunity to come into it if you look at microsoft and apple and google and facebook
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all these companies are incredibly strong it doesn't matter what has been going on with the yield they're making profit, earnings are great and i'm sticking with them. .charles: there a trillion dollr market cap for reason and unless there eventually broken up i see this going on for a while, you're a little bit more cautious i haven't spoken to you in a week or two, what adjustments have you been making if any. >> as you know we got were cautioned at the end of june beginning of july and we reduced our high data and small-cap exposure we went outside the u.s. and added europe looks really good from a recovery play and we added real estate, we think real estate is a great inflation hedge, also we think rents are going to be going up quite a bit as shelter prices continue to rise, we think real estate could do really well in this environment over the next 12 months but i have to tell you the market has gotten too bearish on the cyclical plays
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and i think we could see a snapback rally in the month of september. charles: in the meantime let's talk about the consumer, i think the consumer is a wildcard especially after the huge miss on retail sales, there is a report saying folks that lost federal unemployment insurance cutback spending big time, that makes sense, we see on friday july spending number is expected to be three tenths of 8% a whole full percentage point in june, where is the consumer player role, what is the continue to spend of sources of income might evaporate? >> we've had a huge divide in this nation right now you have people who are working from home who don't have an issue but people on the lower end they are the ones that are struggling right now you have to look at a variety of different sectors number one with low-income folks were seeing a huge rush like dollar general dollar tree in areas like that but when you
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look at the higher income of the population look at the housing sector for example it got hurt when some of these prices got too high but they come back down, now i think housing is raising ready to take up because we have the sector of the population that is going to be constructing houses, moving and all that kind of thing. charles: what should we be looking for this week i know with respect to the overall bearishness of value but where does the fed play what role do they play obviously ahead of friday there will be a lot of anticipation and some of it is hamp down because of delta no one's expecting anything you're tapering but all eyes on the fed what does that mean for our portfolios. >> i think the fed has an opportunity to announce some tapering toward the end of this year, and actually the market rally and they send out signals that they're looking for that, i think when we see they make that
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announcement and we hit peak delta cases what the set up is going to be that's why i'm extremely bullish for september were gonna be in a decelerating gdp environment for the next two quarters i would take that rally they were going to see in my opinion and take it as an opportunity to take the high risk off the table and set that up for next year. charles: we have to leave it there, we have to leave it there. eddie and danielle, thank you both very much this is what you call a rally and then handed over to liz claman. liz: were looking for the fear factor usually you can find it but it's nowhere to be found on wall street as a kickoff the final trade, you can tell when the fear index goes down and yes it is dropping eight half% right now as investors are buying stocks, overseeing a very broad-based and strong rally, the s&p 500 and the nasdaq

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