Skip to main content

tv   Making Money With Charles Payne  FOX Business  October 13, 2021 2:00pm-3:00pm EDT

2:00 pm
i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com charles: good afternoon, i'm charles payne. this is "making money." breaking right now, after free-falling out of the gate the stage is set. i think closing rally could be ultimate buy signal. i have the best money managers and market pros to share their thoughts. inflation comes in hotter than expected. while one fed official calls transitory a dirty word. microcap stocks, rally for the ages. will it continue? more importantly how do you find
2:01 pm
the winners. as the government tries to make everything equal i will is carol roth what happened to competition and will planning out comes doom all out comes? all that and much more on "making money" ♪. charles: the big news of the day, the big news of the year, the big news of the week, inflation. we learned this morning pressures are continuing. there were a couple positives on the monthly side with the cpi report. earnings season is official. we have results from financial giants jpmorgan and blackrock but the market stumbled out of the gate. i think it's a good thing, i think it sets up the ultimate test. break the closing swoons into the closing bell. meanwhile of course stocks have gotten a lot cheaper. i think the best kind of dip is out there for you. i'm talking about buying stocks at lower valuations. but who has the nerve? joining me now, group that
2:02 pm
always has great nerve, barry nap, erin gibbs along with gary gary kaltbaum. core was better month over month. used cars, airline seats starting to slide a little bit, barry, month after month. here is the question, if inflation is ultimately the cure for the inflation is the stock market overreacting right now? >> i don't see any evidence that we had serious demand destruction right now, which is what inflation is the cure for inflation comment implies. if you look at various components of cpi, what you see is broadening out of the price pressure. you're right to note that the reopening related sectors like air fares, lodging, used car prices are coming off, however the supply chain related sectors, appliances and the like are moving up and sectors that have driven inflation for
2:03 pm
decades, whatever inflation there has been, housing, medical care, and education namely, those are sectors that were hit by a disinflationary transitory hit and those are starting to rebound. also to bullard's point last night, st. louis fed president bullard, the sectors that are really respond most to fed policy, interest rate sectors, housing, autos, durables, those are the sectors where easy fed policy spurred demand and they also have supply chain constraints and those are moving up. charles: right. >> so i see broadening out and far from gone. we may have hit peak opening inflation but it is not going back to 1 1/2 percent for the core anytime and for the foreseeable future. charles: with that in mind then, erin, the news in the last 24 hours has that changed way you're positioned in this market? >> so i think the biggest impact
2:04 pm
for me is i was looking for a dip in the small caps, like a really good entry point considering the higher growth and with this increased inflation, we've seen a couple members this seals the nail on the coffin, small caps will be most effective, most affected by high every inflation where their valuations will come down. i think that entry point has been pushed out even farther. it will be even longer before we see them really outperform the large cap because they're most exposed to higher cost of capital, higher borrowing costs. so the small caps have been in a trading range since the spring. i think that continues well into 2022. charles: it is interesting with today's session the whole value growth debate are out the window because they're both kind of struggling and defensive in nature are stocks that are doing well. one area of concern is the computer ship shortage. we know it roiled a number of industries. in fact apple not immune.
2:05 pm
chip stocks, gary, are pretty immune. gary, you're my man on this thing. what happened with the semiconductors today, why are they bucking the trend? >> they are having a better day today because they have been trashed over the past couple weeks. i would consider it just a bounce. i have only two or three names are real strong. i think amd is one, lattice semiconductor is another and xilinx is yearly highs. i'm looking for the great relative strength. something important with apple, the market is shrugging it off, that is fine and dandy, if we hear a lot of product cannot be produced because of shortage of chips that will affect certain areas of the market. so watch it very, very closely. when you're hearing things about toys not getting shipped or anything that you turn on and off something really to watch especially into the holiday season because that is the big time of the year. charles: right. so in the meantime it's here.
2:06 pm
earnings season. two big financial players coming out this morning. both beat on the bottom line pretty good. jpmorgan a little bit in line if we can on earnings, on the revenue side, rather, blackrock having a monster, monster quarter. in fact barry, i want to go back to you, because the financials, is that an area, obviously that's been an area, people talking value for the whole year. they have been focused on energy and financials. are you a buyer? >> i'm overweight financials. we're not buying anything right now because we think we're only halfway done in the correction in terms of time and price but financials are definitely on my buy best. i do think it will perform well next year. i expect the reaction to earnings to be negative in as much as investors get very carried away when the yield curve steepens thinking that's going, net interest margins will respond much quickly than they do. outperformance in earnings is
2:07 pm
driven by the credit cycle. investors don't want to pay for that but on going forward basis return to capital to shareholders, rates are higher will impact net interest margins with a lag. the outlook is good. as you mentioned they're cheap. that is the least expensive sector on the board. no question. charles: gary, last time you were on you talked about the regional banks. are you buying there? >> i'm not here. they have a real good move off the lows recently and they were lagging as interest rates backed up whether it is realistic or not they react to a backup in interest rates because of the perception is margins will expand but it seems to me right about here yields are hitting a wall. so i think they starting to come down some so not thrilled to buy just yet. favorite names would be like silicon valley bank, sivb, pnc bank but i have to tell you not thrilled at all with the reaction to jpmorgan today. there is a lot more to come but if we start to see more
2:08 pm
reactions on some of the big banks that would be worrisome for the financials. charles: let's talk about the broad market because in general stocks have gotten a lot cheaper in a way that personally makes me start to salivate. erin, you talk about valuations a lot. ratio on the s&p 500. back in february 23.4. does this pique our interest? does it get us closer to buying the dip that matters, fundamental valuation dip? >> yes but i don't think we're quite there so yes and no. we've been declining since the spring and at 21 forward you know, i talked about how analysts have been underestimating earnings since the beginning of the pandemic. so you adjust for their new underestimated might bring them down to 19 times but that is still pricey. so i think once we get somewhere closer to the 17, 18 range which was prepandemic, that is really
2:09 pm
when you will see massive equity flows into it. you may not have to wait just until then, but we're getting close. charles: speaking of getting close, buying the dip, gary, session closes have been so ugly. people don't realize the s&p 500 closed at the bottom 25% of intraday range four sessions in a row. second longest streak in history. how important is it for someone like you we can somehow, particularly after today, after stumbling hard out the gate, rally into the close? would that be a buy signal? >> first off i'm so happy you bring that up. that is really one of the characteristics of bullish or bearish phases how markets will close and you will always see bullish markets the markets open down and finish on the high tick and we've been seeing the opposite that really does need to change. i don't know if one good close changes the playing field but it would be a darn good start and don't fora second think that big institutions don't recognize the same thing that you're
2:10 pm
recognizing here. so if it starts to turn that way i think we'll be better off and i love when we open down and finish on the high tick. i think it is really meaningful. good pickup by you. charles: thanks a lot. i love it too. i think it's a huge signal. all investors should be aware. erin, barry, gary, thanks very much. after months of studying the problem president biden is trying to swoop in to fix the supply chain issues here but some are wondering if it is just a little bit too little too late? we'll go live to the white house for further details. we know tesla has dominated the electric car market but what happens when the government puts it fingers on the scale? ev tax credits for union built evs cars only more government picking winners and losers. we'll be right back. ♪.
2:11 pm
2:12 pm
♪ ♪ there are beautiful ideas that remain in the dark.
2:13 pm
but with our new multi-cloud experience, you have the flexibility you need to unveil them to the world. ♪ it's moving day. and while her friends are doing the heavy lifting, to unveil them to the world. jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one.
2:14 pm
move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. charles: president biden meeting with senior officials and ceos of major companies about this ongoing supply chain issue. a major contributor to inflation. now the white house has insisted passing president biden's
2:15 pm
multitrillion dollar agenda would help the problem now but many are saying that last one actually created the problem. let's go to edward lawrence to washington with the very latest. reporter: big debate. that meeting is going on right now at the white house included there the heads of ports of los angeles and port of long beach. the white house broker ad deal with unions of port of los angeles to allow 24/7 operations at the port to ramp up. they have fedex, ups, walmart, target, samsung, home depot agreeing to 24/7 shipping. senior administration official are telling me they're working with states to expedite truck driver training programs to get more drivers on the road. that is a long-term solution. so i asked white house press secretary jen psaki what took so long to get all the stakeholders in the same room to work it out. she says the supply disruption task force formed in june has been working behind the scenes for months talking with people
2:16 pm
who represent truck drivers at the docks. they warn that space might be limited as port operations ramp up. there are not enough truck drivers to carry the goods into the country. this morning i asked transportation secretary pete buttigieg about relaxing truck regulations. he told me they are looking at that because they have not acted because he has to way the safety issue related to that he believes drivers pick up in the middle of the night at the docks and possibly could make two runs. because reduced traffic on the roads. he could not give me a time frame as to when all of this will be sorted out. in fact just now the white house press secretary jen psaki saying she could not guarranty that it would be sorted out by christmas so we're expecting higher prices for much longer. back to you. charles: oh, wow. edward, thank you so much, my friend. runaway inflation is the biggest story on wall street and main street with cost increases essentially erasing wage gains. lately even slamming consumer confidence. president biden though convening
2:17 pm
the meeting with the leaders and port operators. this is of course in an effort to ease the supply chain issue but one of the problems people are wonder aig bought can you really get people back to work after paying them not to work for so long? pennsylvania congressman dan meuser. congressman meuser, i just mentioned that the $1.9 trillion covid package that was a contributor to the inflation issue many ways. the war on fossil fuels biggest contributor to inflation. doesn't seem the white house wants to address either one of these or alter their gameplan associated with free money or the war on oil and gas. >> you said it, charles, they don't. these are self-inflicted. these were created problems, created crises and they're exasperating them moving forward, doubling down if you will. certainly the, after the rescue, so-called rescue plan, the inflation started skyrocketing.
2:18 pm
we saw 5.4% last month, i guarranty you in my direct it feels to everyone much higher than that. i'm sure it is. particularly gasoline and food and other items. and on the supply chain front, listen this was self-inflicted too. we both know there were disruptions due to covid. some manufacturers slowed down. some distribution centers bulked up. but when you pump the economy with huge levels of stimulus dollars, you get incentives for people not to work, you ultimately get too many dollars chasing too few goods and goods aren't made in the united states right? because the production is not there. so we have this enormous bottleneck at our ports a few other reasons but that's it. charles: amazing we bought so much stuff from the stimulus checks in china they have to ration their own electricity because they are making so many products.
2:19 pm
amazon said, you know what? we're chartering our own jets to go straight to china to pick the stuff up. putting pressure on fedex and ups. maybe we should build stuff here. the impulses, that is bothering me the urge to pick winners and losers. yesterday the white house confirmed it will enforce the vaccine mandates, that means some people will pay $14,000 in fines. you wrote a piece on september 9th, you implored the white house, hey you lack the authority but this is also out of touch with the average american. what are your thoughts since then? >> it is. they have no understanding, out of touch, no empathy for the true issue at hand. look, i'm vaccinated. we spent billions of dollars creating vaccination under president trump. it is extremely important but consult your doctor, not president biden, not this white house. the doctor should be able to give people the information they need as to whether or not they should be vaccinated.
2:20 pm
charles: we're also starting, congressman, i'm running out of time, i want to squeeze one more thing in. we're seeing court victories on the religious exemption part of this. picking a theme, winners and losers, apparently yesterday, 100 democrats pressuring the white house to offer $4500 for union-built evs. this is the kind of stuff. you're a small business advocate. it crushes entrepeneur ship and just nuts to me. what are your thoughts? >> my thoughts are that they also are out of touch with the needs of small business, the idea of incentivizing that way primarily well off people. let's face it the average electric vehicle is around$0,000. only for union workers? pennsylvania they get a seat the table and non-union workers do as well. picking winners and losers. liberalism on top of liberalism exponentially makes the problem larger. charles: it is amazing between the student loans and these ev
2:21 pm
things, pays to be a college graduate making $200,000 this year. congressman meuser. thank you very much. we appreciate it. meanwhile atlanta fed president rafael bostic breaking away from the pack, he called out the fed's favorite phrase transitory. he says it's a dirty word. the question will others follow? we have a crypto bull who explains why tyranny, authoritarianism made her more bullish on this and why it may make bitcoin and others the true currency of the world. we'll be right back.
2:22 pm
i've spent centuries evolving with the world. that's the nature of being the economy. observing investors choose assets to balance risk and reward. with one element securing portfolios, time after time.
2:23 pm
gold. agile and liquid. a proven protector. an ever-evolving enabler of bold decisions. an asset more relevant than ever before. gold. your strategic advantage. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.
2:24 pm
visit indeed.com/hire and get started today. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. that building you're trying to buy, hash-- you should ten-x it. m- ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good.
2:25 pm
see it. want it. ten-x it. yum!
2:26 pm
at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. charles: you know they say these are the hardest three words in the english language, i was wrong.
2:27 pm
but federal reserve president of atlanta rafael bostic, he did just that yesterday. he admitted that quote, the animated price pressures on everything will not be brief. now this is such a revelation that the word transitory at least for the atlanta fed considered a dirty word. in fact they have a swear jar. anytime someone dares use the word they must deposit a dollar. my guest saw this coming a long time ago, first trust investors brian wesbury. bostick taper will not slow the economy but he admits, admits inflation is not transitory. >> right. charles: will the tapering though, slow inflation? that is it what i'm curious about? is that a tool against inflation? >> come to that in one second, charles. you know i've always kind of laughed about this word transitory. if you go to the root of the word it means transit. that is the root of the word
2:28 pm
which means you go from one place or another. the fed always meant we're going from low inflation to high inflation they're right. i would have used the word transient. i love the fact it's a dirty word and it is not transitory. it is not transient. it is going to be here. and it is because which put so much money in the economy. and here's the deal, when you taper, all you're doing, at least for the next sick to nine months is buying fewer bonds every month which means the money supply keeps growing and that is where this inflation is coming from. yes, there are supply chain problems but the money supply growth is the real problem and tapering won't take us to negative money growth. charles: right. >> it will just slow down the money growth. so this inflation is here. charles: what is interesting, now the supply chain stories are local news. toggle around new york, two, four, five, seven, main street
2:29 pm
gets it. we learned yesterday consumers see one year inflation at 5.3%. three-year inflation above 4%. that is a record. >> right. charles: to what degree does this become self-fulfilling, if i walk into a store i expect to pay more, maybe they will charge me more and it will happen anyway? >> charles, there is a huge debate in economics do expectations of future inflation lock it in? i'm a milton friedman guy. in other words, if you don't print too much money which we have done in the past year-and-a-half, you can't get inflation whether people expect it or not. and so i believe that once you start baking these expectations in people do want higher pay raises. it becomes in a sense that kind of self-fulfilling prophecy because now the fed can't tighten. once people accept it, then the fed tiedens we have a big recession and that is a big problem. the fed, this happened back in the '70s.
2:30 pm
during all of the 1970s the fed, they didn't use the word transitory but every year it was some special factor and by the way people talked about it back then all the time. they were mad at opec, mad at supply chains. now they're mad about the ports. it was never about opec. it wasn't about a drought in the midwest. it is not paul about supply chains. it is about printing too much money and once all that gets started, it is really hard for the fed to stop because they have to throw it into a nasty recession to do it. charles: yeah. some folks have brought that up. they may have tied their own hands on this. we'll see. i don't know if you have a swear i can't remember, my man, you were way ahead of the fed. i give bostick credit when he says he admits they were wrong. thank you. >> thank you, charles. charles: governments flocking to cryptocurrency especially
2:31 pm
bitcoins t includes my next guest, leah halprin. first and for most you have a huge presence in social media, you have a big following. i've been following you. i scede one of your tweets, you said i don't think i will every forgive or forget what world governments have done to the people over the last 18 months. in fact it changed the entire trajectory of my life. every decision i make will be made knowing tyranny and authoritarianism is around the corner. seems like bitcoin for you is more than making money. this is some sort of a major statement. what is the major statement here? >> charles, it has been a crazy 18 months. it has been absolutely fascinating. i never seen anything quite like this in my life. we're seeing people's freedom taken away. if you don't get the shots your livelihood taken. people being fired despite potential health care crisis coming, freedom of movement being restricted. it is very, very personning. this is looming
2:32 pm
authoritarianism. we don't have freedom of movement. people don't have control over their livelihoods. when you have something like bitcoin, suddenly you become sovereign own your wealth. you become sovereign over your assets. it is very important to me not to rely on an employer to give me money or an income. it is very, very concerning that now people are being fired if they don't take the shot. bitcoin is a decentralized cryptocurrency immune from government corruption. you are naive one day they won't come for your money. bbc, central bank, digital currencies, they are essentially cryptocurrencies but they are centralized. they have full control. central banks have full control over that. so the scary thing here, this is actually programmable money. so charles, if you say i don't want to get that second shot or i don't want to get the third booster the government can say well that money you're getting paid we'll program so you can't actually spend it inside certain shops to protect you of course.
2:33 pm
charles: so, yeah, it is interesting. as you're saying this i'm thinking of i know some transplants have been put on hold because patients didn't have the vaccine. people are losing a lot of money now. and it is amazing to me that the youth get this, right? by the way it is a global phenomenon. you have talked about this with central banks are trying to do. feels like they're doing carrot and stick. we heard about regulations, and banning, that got a lot of pressure. now maybe they say maybe we'll join it. is there a chance that they will usurp this movement one way or the other? >> i don't think bitcoin can be banned. we saw what happened in china for example, that only helped the network t has further secured the network. there is a lot of concerns that bitcoin is centralized in china, the mining centralized in china. now because they banned it in china, miners are redistribute.
2:34 pm
usa that will help secure the network. whatever the usa does, whatever happens it will still thrive somewhere else in the world. i just want to take you to nigeria as an example. the cbn, central bank of nigeria they became extremely hostile toward bitcoin throughout 2021. as a result it had a positive effect on the price. it started trading $80,000 in nigeria. and then to peer trading increased by 27%. that is incredible f that was actually the goal of bitcoin, remove intermediary. charles: so amazing, cryptocurrency, bitcoin, bringing economic freedom governments promised never delivered on in history. great meeting you. great talking to you. hope we have you back again real soon. this gets me to the new town hall. check it out. i'm hosting it the investor revolution, november 9th, 2:00 p.m. eastern time. email me your questions. send me your best questions,
2:35 pm
invested in you at fox dot-com. -- investedinyou@fox.com. workers are quitting, remember the participation trophies? some people think the answer to democratizing the creator economy to use them. carol roth eats participation trophies for breakfast. she sounds off next. ♪ ♪ ♪ ♪ ♪ ♪
2:36 pm
♪ ♪ (sfx: video game vehicle noises, horns beeping,) (engines revving, cars hitting one another.) (sfx: continued vehicle calamity.) just think, he'll be driving for real soon. every new chevy equinox comes standard with chevy safety assist, including automatic emergency braking. find new peace of mind. find new roads. chevrolet. some days, you just don't have it. not my uncle, though. he's taking trulicity for his type 2 diabetes and now, he's really on his game. once-weekly trulicity lowers your a1c by helping your body release the insulin it's already making. most people reached an a1c under 7%. plus, trulicity can lower your risk of cardiovascular events. it can also help you lose up to ten pounds.
2:37 pm
trulicity is for type 2 diabetes. it isn't for people with type 1 diabetes. it's not approved for use in children. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, severe stomach pain, changes in vision, or diabetic retinopathy. serious side effects may include pancreatitis. taking trulicity with sulfonylurea or insulin raises low blood sugar risk. side effects include nausea, vomiting, and diarrhea, which can lead to dehydration, and may worsen kidney problems. show your world what's truly inside. ask your doctor about once-weekly trulicity. today, things can be pretty unexpected. but your customers, they still expect things to be simple. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service,
2:38 pm
that's why so many businesses work, with ibm.
2:39 pm
it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ ♪. charles: all of you know i'm a major champion of individual achievement through open and fair competition. even when the odds are stacked against you because others have certain advantages i think it is worth getting there, get in the arena, take your best shot and
2:40 pm
try to win. that seems to be the premise or at least the promise of the so-called creator economy which by the way is minting new household names every single day. these folks are reaping in huge economic rewards go with their high aclaim but now some are saying that this creator economy is failing to spread the wealth. carol roth joins me now. carol, i thought about you because you're a serial entrepreneur, a former investment banker. what do you make of the notion that it is undemocratic only a fraction of these creators, videos, newsletters, podcasts, social media are earning the big money? now they're saying somehow they have to democratize it, i guess code find a way to split the money between everyone? >> people are always like to contemplate that equal opportunity with equal outcome. technology democratizes the access, it doesn't mean it will be easy. being a creator, like any other sort of small business person is really hard t takes a lot of
2:41 pm
work. it takes a lot of consistency and time and luck. you're only putting in the time, hustle and effort you will get that kind of hustle type of out come but for the people who do keep at it we know it works. we've seen people on your show through building their own platform have elevated their profile and that's an opportunity that wouldn't have been available five or 10 years ago. if you want to support smaller creators, attention economy, give your attention, give your time, give your money to the smaller creators. give them the shot, and that will help them be mid-sized creator and then bigger creators. charles: we're already seeing amazing stories come out of this thing but the notion if you were making it, some aren't, welcome to the real world! figure it out. go back -- the great thing with tiktok videos you can make a difficult one tomorrow. let's get back to the world of the broader small business world, when the jolts came out
2:42 pm
yesterday, it was tough. i was floored to be honest by the number of quits. mind-boggling where we see it the most. in areas with a lot of small businesses, leisure, hospitality, retail. what will happen there? is there a way to fix this, carol? >> think about being a small business right now, about the worst employment opportunity. you have to deal not only with angry customers but now you're probably doing two and three peoples jobs for about the same pay because everybody is understaffed. you have to be the mask police. you have to be the vaccine police. so it is not entirely surprising that people are having a hard time staying in place wanting to do this. charles: yeah. >> i think it will take quite some time in terms of fixing it. there are a couple of things we can look at. one is hiring the second chancers, formerly incarcerated. there are a lot of programs tripping them back into the workforce. another one is legal immigration. something that has spawned up
2:43 pm
obviously with some of these pandemic rules and with more people retiring on an accelerated basis it is something we really have to consider again. charles: i think, yeah, all of the above for sure. carol, thank you, always great talking to you. they might be small but their performance has been mighty. talking about microcap stocks. it is a boom you probably haven't heard about but you need to know. a man who told me more than a year ago it would happen and he is back. ♪. i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time,
2:44 pm
but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com you have the best pizza in town and the worst wait times. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire that building you're trying to buy, matc- you should ten-x it.ion. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!
2:45 pm
this halloween, xfinity rewards is offering up some spooky-good perks. like the chance to win a universal parks & resorts trip to hollywood or orlando to attend halloween horror nights. or xfinity rewards members, get the inside scoop on halloween kills. just say "watch with" into your voice remote for an exclusive live stream with jamie lee curtis. a q&a with me! join for free on the xfinity app. our thanks your rewards.
2:46 pm
2:47 pm
charles: so we know a lot of focus on the new investor revolution has been on so-called meme stocks. cryptocurrency obviously. but there is another niche, folks, it is microcap stocks. back in the day they used call them penny stocks. in fact money flows into microcaps have already shattered an annual record and probably on the pace to hit one trillion dollars. that is with a t, this year. i will bring in the host of planet micro stock podcast,
2:48 pm
bobby. i will give you credit. you said a year ago microcaps will rock, they have been more than a rock. nasdaq 100, 110%. s&p up 89%. so what is driving the move? >> firstly, charles, thank you so much for having me back on to discuss microcaps. it has been a lot of fun to see the microcap over the last what is it, nine or 10 months. now that robinhood is public. we know from public filings in their q2 report they announced net cumulative funded accounts increased 133% to 22 1/2 million in the second quarter of gun 2001, compared to 9.8 million in the second quarter of 2020. there is a lot of market participation in. with all the microcap participation, microcap has been on a tear. charles: go ahead, bobby, finish. >> when markets are hot, people
2:49 pm
speculate more, willing to take more risk in technology or looking down the chain in popular sectors. these new investors are learning quickly small companies don't have the law of large numbers problem. easy for a company to go from 50 million market cap to 500 million. than five million to five billion. this is much greater. compounder of anatomy of a multi-- charles: we know that obviously a chance for out size risk. people expect outsized gains. the last quarter biggest winner, neurometrics up 215% in three months. how do you go about looking for those kind of traded? is it even a good trading vehicle or better buy and hold vehicle? >> we're not neurometrics, buy, sell or hold that company that actually came up on our
2:50 pm
proprietary criteria looking at north american microcaps. and you know, without trying to sound preachchy you know there, is no right or wrong. charles: preach, my man. preach. you have a minute left [laughter]. >> -- short, probably know, listen to planet microcap i'm boring investor. charles: you have 45 seconds left. >> whatever works for everybody, make it work for yourself. i will leave it at that. charles: but, listen, you're in the middle of all of this, bobby. is it something that people can think maybe it will continue? is it a flash in the pan? >> i definitely don't think it's a flash in the pan. at the end of day buying microcap stocks or trading microcap stocks, evergreen, bull or bear market. there is always opportunities. majority of microcaps are illiquid, underfollowed, continue to shrink coverage despite performance we're seeing. underappreciated stocks that exist in the universe always
2:51 pm
result in inefficiencies. look where others are not. look for sectors underperforming. there will probably be quality. charles: absolutely. bobby, great stuff. we'll talk real soon. bobby comes from an amazing family. in fact nine years ago on this day my wife recieved a new heart t was absolutely a miracle. at time her heart was only functioning 15% rate. a device, machine jabbed into her chest keeping her alive. it was a race against the clock. amazing 20-year-old woman thoughtful enough to offer her organs in case she was ever in a tragic accident. she was. it was bobby's sister. thanks so much. we'll be right back.
2:52 pm
...
2:53 pm
it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
2:54 pm
♪ ♪ there are beautiful ideas that remain in the dark. but with our new multi-cloud experience,
2:55 pm
you have the flexibility you need to unveil them to the world. ♪ charles: all right folks, plug power, this has got to be the stock of the day trading over 60 million shares normally trades 17 million the average daily volume morgan stanley is saying buy the stock ahead of tomorrow, they've got the plug symposium 2021 here comes green hydro, joining me michelle schneider, kim mahoney. michelle, i've been out of the stock for 20 years, are you a buyer? >> well, obviously, yes, today would have been the better day and right now we just headed right into resistance at the 200 -day moving average in the 50 -week so i would say if we get over there we have a new phase and we have a whole new risk parameter so i'd wait actually at this point rather than buy into the resistance. charles: ken? >> well look the stocks gone
2:56 pm
parabolic the last six days today it's up 12% and everybody knows about the conference tomorrow, so to me, charles, it sets up a perfect news, a situations a lot better risk reward so again it wasn't up six days in a row and if there wasn't a conference i'd be okay with the technical but that's how i feel there's a setup. charles: that's smart and by the way it's up seven days days in a row. these conferences these analyst calls, they are much more important every single day. let's talk about something you might be excited about, ken. the electric vehicle side, tesla has been hinting at a monster breakout. considering that cathie wood has been lightening up her position is this a name you're looking at right now? >> yeah, cathie wood is trim ming a little bit but let's be clear her flagship fund owns 11%, the second highest is 5.5% so it's more about positioning very interesting chart, charles through august, end of august stocks unchanged then until about 10% relative strength against this weak market really,
2:57 pm
it's doing pretty well. now get this though on friday, stock options third friday as we know is stock expiration, right? so, as it turns out half of those options were tesla, are going to expire, so i think there's a little magnet short-term, charles towards the 800 mark where they expire but after that i hope it continues to follow the trend and at this point has great relative strength so we like the name charles. charles: is this breaking out for you now, michelle? >> actually today it's having what they call an inside day, they know it has a hirami, which is a pause, a great opportunity if you want to trade it more actively, to buy it if it breaks out of yesterday's range, and that high was 812.32 and you can have a pretty light risk to under yesterday's low which was at 796.57 here that cause could turn out either way so i'd give it another day. charles: we took profits a week ago and i'm like golly, did i get out too soon, but that's how it is with these great high beta
2:58 pm
names. today was supposed to be all about financials we'll lead the charge earnings came out, blackrock doing okay but almost all of the other banks are getting slammed on jpmorgan's numbers but anything in the whole financial area ken that you'd own going into the earnings report? >> so, first off if you buy like a day or two before earnings, it feels like russian roulette, anything could happen and jamie dimon blows away numbers and the stocks down four points so any banks that come up may get greedy and at the same token i don't like it so i don't like the setup, the way jpmorgan traded today and i think it doesn't bode well for other banks coming up on deck. charles: banks are so tough. they beat by a gazillion percent, the stocks are down, right? usually, you wait a day or two maybe is the best time. michelle i have to ask you to use your technical prowess, because these meme stocks in general reacting great today. what the are some of your
2:59 pm
potential buys using your technical analysis? >> well i really like gamestop here, because it actually cleared 50-day moving average, and i'm watching very carefully, clover health because i happen to hike the whole health space right now, that has a little bit more it has to do to get through 850, and we can't discount amc, but it has more work to do and needs to clear 40 and i'd be a lot more optimistic. charles: yeah, yeah, someone sent me a chart on twitter, i think there's an ascending triangle to your point on the cusp of a big technical buy. today, to this session, i think if we close higher and i think we might, ken, if we could close high, rally into the close, the high of the session would that for you be a buy signal? >> i like it. it's a good setup. think about it sometimes you come into hot into earnings, we get disappointment, high expectations, we're ripping into earnings all the d.c. dysfunction, it be nice to take that d.c. dysfunction put it on the back burner and let us breathe a little bit and let these technology companies the
3:00 pm
larger ones go out and beat estimates and i think the market today is getting that out a little bit charles. charles: i think so too we're seeing so-called value plays not really doing what they're supposed to do. michelle, ken that was a fantastic segment i have a feeling you'll be absolutely right. liz claman, these last four days have been tough on these closes we need to see it turnaround today. liz: yeah, you're that fundamental and chart guy, it's really interesting to watch here , and who knows what's going to happen in this final hour, because we do have breaking news the supply chain crisis at the nation's ports has become so serious, that some of the nations top ceo's in shipping and transportation are huddling at the white house with president biden who just began speaking moments ago. we are monitoring that we'll take you straight to the white house for the plans to keep the ports open now, 24/7, all kinds of wheeling and dealing with the unions to make that happen to try and free up the log jam. >> the dow is a land of confusion, as weic

13 Views

info Stream Only

Uploaded by TV Archive on