tv Making Money With Charles Payne FOX Business November 1, 2021 2:00pm-3:00pm EDT
ull financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity. david: any gain on the nasdaq and the dow today would mean another record. so with that we toss it over to charles payne. already in record territory, charles. charles: i appreciate that, david. great to see you, my friend. good afternoon, everyone. i'm charles payne. this is making money. breaking now, november is historically strong for investors. so far the seasonal script has worked like a charm. stocks are off to good start making new highs, investors are keenly aware this could make-or-break a year-end rally. i have markle watchers you should hear to make this is november to remember. we have the hottest tech names you never heard of you about they're killing it. 20% of individual income coming
from government payments. is the country already seeing a defacto universal income? if so at what cost? all that and much more by "making money". charles: all right, folks, november, historically the script has been spot on. we saw the september swoon, the october bounce and well if history repeats itself we could see a very strong month this month. in order for that to happen, earnings guidance will have to continue to dazzle. coming into the week over 82% of companies have beaten the street on earnings. that is down from 84.7% in the second quarter but here's the thing, blended returns 39% higher. the street was only looking for 29% of the bears are crumbling about peak earnings growth pointing out the second quarter was up 96% year-over-year and first quarter up 52%. let's bring in yardeni research president ed yardeni. ed, you're quoted in a recent
"barron's" article productivity growth is the key swing variable to determine whether this decade looks like the roaring '20s or the inflationariry '70s. how much growth are we talked about to avoid the 1970s fate? >> i look at trending growth of productivity over a five-year span and the latest numbers right through early this year is a increase of 2% at an annual rate which is much better than we had back in 2015 which was 0.5%. we're already seeing a decent tick up in the underlying growth rate of productivity but i think it will go to 4% where we saw previous peak cycles in productivity peak out. no reason why we couldn't do at least that if that is what happens, some inflationary pressures we see now should dissipate as productivity creates a pretty good cushion between wage increases an price
increases. >> ed, we're seeing consistent for the upcoming quarters. quarter after quarter until you get to the third quarter of next year. is this enough so far? the pace of earnings, the growth, the adjustments to really justify this move in the market? >> the short answer is absolutely yes. the fact of the matter is we know that earnings did in fact peak, the earnings growth rate peaked peaked in second quarter on year-over-year basis. it only peaked. that doesn't mean it is not growing anymore. in the second half of this year we'll see something like 20, 25, 30% increases in earnings maybe more. going into next year we should start settling down to the trend. the trend would be something like six to 9%. that is a pretty good increase in the market i would say. charles: you have a linkedin post caught my attention, took
swipes at some economists some considered heroes of the free market crowd. first and foremost, what did adam smith get wrong? >> well adam smith said capitalism is based on selfishness, that is a terrible, terrible way to market capitalism to say it is based on selfishness. the reality it is based on insecurity. entrepreneurial capitalists are always insecure that they will go out of business if they don't give their customers the very best quality at the very lowest prices. so capitalism really isn't based on selfishness. it is based on entrepeneurs trying to deliver the very best they can. charles: quickly, joseph shumpeter? >> he, famously talked about creative destruction which means that up-and-coming entrepreneurs put the old guard out of business. a lot of people lose their jobs, companies shut down. i prefer to call it creative construction. the reality is that kind of
process creates a tremendous amount of prosperity. it brings new products to consumers at lower prices increasing their standard of living. that is my criticism right there. charles: all right. plus i think in this day and age with such a soft audience we need to soften up the edges a little bit. i appreciate it. >> absolutely. charles: thanks a lot. talk to you again soon. >> thank you. charles: bring in market watchers gary kaltbaum and shah gilani. creative destruction is a little bit too you have for them, you guys. let's talk about the momentum in this market. really coming into often what is the best month of the year, gary you continue, do you see it continuing? >> yes. but, i got to throw the but, near term i have this couple of little antenna perked up in the last three or four-days. a lot of frothiness, a lot of bullishness showing up out of thin air.
so i think we'll get first some sort of pullback here, just to wipe the smiles off the faces but i think we're headed higher and i'm seeing something that hasn't happened in a while and i think it may lap and small and mid-caps starting to take over. the russell 2000 looks like it is going topside. the mid-cap 400 already has. that means the broader market is starting to kick in gear and that would be good news. i am seeing some megacaps starting to get a little trouble. small and mid-cap and i think we're going higher. >> shah, i'm looking for the russell 2000 to make a big move here. it has been sideways for almost six months. overall do you like the momentum to the upside? >> absolutely i love the momentum to the upside. it is always about earnings, earnings, as you call the mother's milk of investing. they have been outstanding. whether or not we had peak earnings last quarter didn't
matter. as ed pointed out the earnings are not growing at rate they have been growing. that doesn't matter to me as an investor as long as they keep growing. what is more interesting is profit margins, bottom lines beats are great and top line beats greats i see profit margins are outstanding. we haven't seen peak profit margins. that bodes well for the future so the market has plenty more to go forward. charles: interesting, bank of america, goldman on the list, shah, every time i see the bank names i think about you. obviously they sparked the big october move. seems like they're slowing down a little bit are you staying the course? >> absolutely staying the course, charles. there was a bit of a pullback in some names on account the yield curve flattening that has been, it will be arrested. steeper yield curve bodes well for net interest margins for the banks. other big banks with investment banking decisions, deal-making will continue. as far as big banks with trading departments, trading environment is excellent. they're going to continue.
no. reason financials can't go and continue to go higher. charles: big news this morning, semiconductor shipments surged, i'm talking about really surged, all-time record high, 145 billion in the third quarter. of course not all the chip stocks are moving in the same direction. overall these names are killing it. -- semiconductor had a big earnings report as well. gary, what is the play here? you always love the space. you say this is the proxy for the overall market. >> yeah, the philadelphia semiconductor index is edging out into new all-time highs today. if it sticks you want to own it. the etf is smh. great reaction to earnings. you just mentioned on semiconductor, on semiconductor, on. that used to be cree, wolf. great reaction to earnings. i don't know if i buy them, any pullback would be food. advanced micro devices also. check out the new yearly high list. if you start to see a bunch more
semiconductors that would be meaningful. bottom line i never seen a real bear market when the semiconductors have performed. charles: so let me get back to you, shah. fomc meeting this week. listen, tapering, no one is really worried about that. a lot of talk about the fed hiking rates next year. is it time to start making adjustments in your portfolio for something like that? >> i don't think yet, charles. the market seems to be baking all of the talk of tapering. we know it is probably going to happen this month, if it doesn't, it will happen next month. we know looking like $15 billion a month will start to taper. eventually stop buying anything at end of the month. they may extend it. we'll not see interest rates rise meaningfully. not in any way that will interrupt the market moving forward. i'm not worried about any of that until it actually happens. charles: same question to you, gary. listen we know there is a direct correlation. all the central bank money printing around the world has
really helped the so-called fang names. do you make adjustments or wait? >> let me sate, they are never, ever, ever, ever, ever, ever going to raise rates again unless they are forced to. i call it tapering smhapering, maybe go 250 billion a month between us and european central bank to 235, which is almost three times as mr. bubble bernanke was doing at the height of the financial meltdown. so it is still a joke. they will take their time. if markets come down, they will stop the tapering as fast they say boo. i'm not sweating it. easy money forever from these people. charles: tapering, smhapering, i love that one. thankthank you, you guys are als on. have you heard about crypto flipperring. what you need to know about the moment that could flip the entire crypto market on its
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charles: break news moments ago, senator joe manchin blasting progressives holding the bipartisan infrastructure bill hose stage. the senator calling house vote on the bill right now over the massive reconciliation bill continue. manchin says he will not support a spending bill without completely understanding how it will impact the economy. meanwhile the fomc gathering this week is expected to officially declare tapering should be a non-event. in 2013, that famous or infamous taper tan tum was a small thing particularly in hindsight. the bigger issue what happens when the fed starts to hike rates. wall street consensus is two two three hikes as gdp estimates are being slashed. we have economists for america, joseph lavorgna. joseph, i'm not so sure why
wall street is convinced there will be three rate hikes, what am i missing here? >> i don't think you're missing anything fed. i don't think they shouldn't but they don't have the courage to hike rates. as the market will horrible as the fed dials back on their asset purchases. i can see a scenario, the equity market pulls back significantly 15, 20%, something similar took place in december of 2018 and that wobble in equity prices causes the fed to get nervous about future growth. and extend the time it takes to get purchases to zero. depending on what happens with budget reconciliation, jay powell has done a excellent job he may not be reappointed. lael brainard will be likely to replace him. lael brainard is much more dovish than jay powell. she in my opinion will not hike rates before next year's midterms. to me hikes in 2022 are
premature. charles: i tend to agree. the 2018 swoon, in the infamous words of "cool hand luke," they got jay powell right. everyone is talking about inflation. we did get the manufacturing ism number. came in better than expected. prices are through the roof. another sign we're living and dealing with inflation, every item, every item except one went up in price, joe. how long can we live with the tenuous inflation, with runaway inflation, markets still climbing higher and not falling off a cliff? >> clearly, charles, the market moves, equity movement is probably a lot about positioning because certainly the fundamentals would suggest yields should be higher. even equities perhaps lower and yields higher so it's a very interesting background. one thing i do want to highlight in the is empty, charles.
vendor deliveries, lead times that is proxies for supply chain disruption. that not surprisingly went up. the average year-to-date was just under a reading of 74. that is the highest year-to-date average since september, or i should say 1974. that is a remarkable elevation. that tells you these price pressures will continue and eventually i have got to think it will disturb equity investors but right now while the economy looks healthy, while the fed is still providing liquidity, stocks as you said is the only game in town but that may change a bit next year. charles: talk about inflationary pressure from a wage sign. the another sign of the market dealing with this pretty well. deere, the stock of the day. over the weekend it cut a tentative deal with the unions and wall street seems pretty okay with it. i did the back of the envelope math. they added 6 1/2 billion dollars to their market cap on 10% raise, 8500-dollar signing
bonus, another 5% raise in three years, 5% raise in five years. that is a lot of money but wall street is rewarding the company forepaying out more. >> charles, the thing is, profit margins are very high. companies like deere and others can offset the wage increases through faster productivity when unit labor costs don't change. maybe one of the reasons the equity market is robust higher prices in the short term lead to higher profits f over time labor costs for variety of companies go higher, employment cost index was record high eating, that will eat into margins. if companies maintain the margins they will have to pass along prices. charles: or try to. or try to. i don't want to let you go, but i'm running out of time, i want to get this in with the personal income and spending report, we saw 19 of individual income, people came from the government. go back to the '60s, it was only 5%.
you couple that with this report on how wealth grew since the covid situation, we see the under 40 crowd, the bottom 50, older folks, blacks, hispanics, all the did extraordinarily well in terms of how fast their wealth is growing. seems to me this is universal basic income. is it, and if so is it an argument to keep in place? >> i don't want it to go in place, charles. in fact when i was at the white house, if you look at census data from 17 to 19, it showed record percentage gains of income for the lower and middle income taxes. that was a result of the trump tax cut. to me good policy leads to good results. i'm not a fan of universal basic income. i hope it doesn't go away. charles: neither i am, i thought it was great to have a real smart straight-shooter like you. >> thank you, charles. >> at one time everyone, just about everyone, except me mocked tesla and elon musk.
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we'll keep you ready for what's next. comcast business powering possibilities. charles: all right. finally happening, around the world millenials have more spending power than any other age group. well gen-z is coming on strong this brings to mind buying old adage what you like and telling your friends about it. where should we invest to ride coattails of millenials? i want to tell the millenials get stuff parents invested in, buy what they know because they're hot. what do you think? what are your thoughts? >> i think the millenials are fascinating demographic. to put numbers around this, charles, they will receive $24 trillion of transferred
wealth over the next 15 years. we're looking at whether spending around kids and education, the millenials are having children. they're nesting, having their families. something like disney is probably a good place to play. charles: that is the older millenials. i think the blackket is too long, it really is. like 25-41 but the older ones, aren't they driving this home with the whole thing of housing, household formation. >> they are. charles: things like that? >> they are. charles: essentially they will be good for the economy and certain industries. you like disney something that would be generational? >> absolutely. kids education is another area. think about businesses like petco. playing with the pets are becoming people's children. especially that demographic. the wellness. millenials are into longevity, self-care, eating healthily. shifting to organic food is another big one. charles: speaking of millenials,
all wirtz a favorite brand of boeing public. are you a buyer? >> i will not, about single brand businesses going ipo, massive premium where the private market. it struggled since it went out there. the casper, single brand, single product. tanked when it went public. i'm nervous about all of that. charles: what about the market in general? pretty good rally. october was phenomenal. feels like we got a head of steam going into the end of the year. we're climbing ultimate walls of worry. not just one wall but a million of them and it doesn't seem to matter. >> there are a couple interesting things coming up. market will volatile and we have particularly interesting announcements. i'm a believer in certain elements. i think the odds come of age. anything within the market, within that noise right now. charles: is there a way to play the vr space? we know oculus and facebook s there a purer play? is there a chip play on there?
some way i can get away from facebook and still have exposure to metaverse? >> shape names are difficult. anything where you see businesses where they suffered through the supply chain issues created chip shortage. nvidia is a key case in point. another one is roblox. pack to your point where gen-z and millenials are spending money that gaming business is 3-d for a long time. lean into that. charles: any ideas that you're looking at right now you're hot on? >> i'm getting ready for sweet green. that is a big one in the organic food space. that is a big opportunity. the other one is nerd wallet. huge appetite for personal financial information that will be going public later this week. i will look out -- charles: sweet green, my son took me there. it was okay. >> okay. we'll see how that happens. charles: thanks, ann. the world is changing fast and being powered by companies, a lot of them folks, let's face it we never heard of. the good news many of them are
publicly traded. let's talk about some of the s.i.d.s. link stocks with io fund analyst, beth kindig. beth, you shared ideas, roku up 1100%. nvidia we talked about, that up over 500%. zoom. what is the process your fund is using to discover these ideas early on? >> that is good question, charles. when i first started this, the private markets got to have all the fun with tech. so many tech companies are public it is a great time to be a public investor. there are some gains in tech growth. we see tech growth a very specialized field. something you cannot train financial analysts on because it is product that is really leading these companies and these growth and that is something you really can't train on. when i got started in 2010, it was around the time that tech overtook oil as the most valuable industry in the world and being in silicon valley, very competitive. if you're still around today you're probably very good what you do. i looked at thousands of
companies. so taking that experience over to public market markets was key. we have a portfolio management style that reduces risk. that is very big in tech growth. if you have your losers, they're not performing well, you have to be able to cut them and move the money over to the winners. charles: sometimes that is easier said than done because these stocks can be extremely valuable. many times i had a who had, sizzling stock, taken a haircut, months later i'm crying why didn't i sell it? why didn't i take the old adage of selling your losers when they come back so quickly? that is tough one in this arena, isn't it? >> that definitely is. the cloud winner of the year is up about 300%. we held through 40% drawdown. it is highly specialized. more than a full-time job. it requires daily, hourly monitoring and then also just truly knowing your products and your strong management teams. a strong management team taking
market share can usually overcome a lot. roku is a great example. i constantly heard entering the stock in 2018, what about google, what about amazon, netflix, et cetera? the issue that roku is still the top operating system in the country. so, we kind of have this idea that these smaller players can't take market share but in fact the opposite is true. charles: of course years ago when you talked technology it was always intel inside. you kind of knew. right now all these names that you're talking about that are powering all of this, we love the end product but we don't know what it is. what is on your radar now that nobody on financial tv is talking about? >> we really like bitcoin miners right now. we think they got way too beat up when bitcoin took its breather over the summer and into the early fall. we love the catalysts that china's loss is our gain here in the united states. a lot of bitcoin miners, all about it coin miners are moving out of china, relocating to texas.
we think that will attract institutional interest. they have bitcoin on the balance sheet. they will add bitcoin to the balance sheet and they have been beaten up. we like the combination of china giving up very profitable business sending it our way. charles: congratulations on your success. we'll come back to you. i've been looking at bitcoin miners. i've been trading them. i think you're right. i think i need one to buy and put on the shelf and don't worry about the near-term volatility. thanks a lot. >> agreed. charles: we'll talk to you again soon. we're a little more, folks, a week away from our new investor revolution town hall. be sure to email your questions at firstname.lastname@example.org. remember, november 9th, at 2:00 p.m. eastern. i cannot wait. we a few hours ago, virginia governor's race, well they're out there really, really, everyone trying to fire up their bases. we'll give you a live report. the rest of the nation is not fired up. a sort of a malaise is settling in, the problem is a result of
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♪. charles: so virginia has been trending brew in recent years but republican businessman glenn youngkin may be poised to turn the recent tide in this off year governor's race where president biden has really as much as on the line as anyone else. connell mcshane is on the ground in virginia and he joins us now. connell. reporter: hey there, charles. he does have a lot on the line and it has become about president biden this race to a large extent but here in the final full day of the campaign it has also become about former president donald trump this is a
governors race in one state, you might think local issues dominate it but it is also very much a nationalized race and we've seen that especially the last couple weeks. a lot of people see this as early read how the midterms might go next year. issues such as parental controls in the schools have come front and center. you hear this at almost every event. today on the trail in roanoke, former governor terry mcauliffe spent time as he has at all his stops defending his record as governor, but tried his best to link his opponent glen youngkin to president trump. that youngkin has made the entire campaign about touting the trump agenda. youngkin accepted the endorsement of president trump but done so at a certain scans. the former president hold as telerally but not in person. youngkin is not facing in the event. youngkin is trying to take example of a slump in the polls. biden won her by 10 points but
to some extent, funny enough history is on his side. when one party wins the white house the other party, going back like 40 years, almost always wins here in virginia the next year. these numbers go back to 2,000. gorge bush, republican wins. democrat wins in virginia. bush wins re-election. democrat wins. president obama wins. then a republican wins. there is one exception to this which is actually kind of funny, terry mcauliffe in 2012 when president obama won re-election he won here as a democrat. he is trying to do it again. but the momentum is clearly on young kin's side. we'll watch it throughout the day. all the public polls making this is very close race. the fox poll came out last week, youngkin moved ahead by eight points among likely voters. after this report we're heading to loudon county which has become front and center over the battle with schools. that is where youngkin will wrap up his campaign with a rally this evening. charles. charles: always food to have the
momentum going into the election day. connell, thank you very much. carol roth joining me now. many, carol, people are saying this is referendum on president biden. the a recent "gallup poll" on the most important problems in the country, poor leadership is at the top. big moves in immigration, budget deficit, inflation. all the things eating away at president biden's population as well. what are your thoughts? people are now starting to just, we're seeing independents saying, that they have lost confidence. >> yeah. part of the reality here, charles, biden isn't really anybody's guy. he received a lot of votes but many of those weren't for him. they were against trump. and so he didn't really have a mandate or an agenda that people bought into and i think if people are looking at their lives today, there are not a lot of areas, potentially any areas where people are saying their lives improved but there is a whole host of areas from
inflation, to issues at the border where they're seeing challenges. even people who were deemed heroes 12 to 18 months ago are now getting fired from their job because of the vaccine mandate. so i do think that this is a referendum. this is not a good thing for biden. i think that has a trickle-down effect. charles: interesting, new nbc poll, ipsos, two spending bills. they have become extremely unpopular. in fact this is amazing 32% of folks it would hurt people like them. only 25% said it would help. moments ago, senator joe manchin railing on progressives saying he will not support a bill if he doesn't know the impact on the economy. how do you explain though this epiphany? because president biden was bragging that everything in his bill was popular, people wanted it. why don't people want it anymore? what happened? >> well, epiphany when i had the epiphany a long time ago but i
do think people are starting to see the light because some of the lies and information that is coming out is just so brazen, borderline gas lighting that it is hard to avoid. when you're told inflation isn't a problem and you're going to save 16 cents on yourdifferent . you're told we're going after billionaires yet they want to hire 87,000 irs agents and want to have you report your bank account has a small amount, your aggregate inflows, outflows, people are starting to wake up and say things they're telling us are not true. we haven't seen any instances where government spending hasn't led to the wealthy getting wealthier. i think people are just starting to wake up. charles: the wealthy getting wealthier. meantime the cost of milk and cheese through the roof. that is not a good combination for most households. i have to ask you about this because senator rubio is calling
on republicans to break up with big business at the national conservatism conference. what are your thoughts on this? >> this is kind of a breakup? is it healthy mature breakup, extras stuff on the line light it on fire? charles: i never knew it was a choice. i always thought it was the last one. i never knew there was a healthy version of that. >> that is what happens. yes, we've seen this great consolidation of big business and big government power, big special interests but what we don't need is for the government to penalize big business in a way that ends up penalizing consumers and the labor force and having the trickle down to small business. we don't want them picking different winners and losers. we know that will never work out as well. we need the government to step out of the way. while the gop likes to talk about these kind of things they never actually walk the talk t would be a great opportunity for them to finally do that. charles: it is interesting because it feels like big business might be kicking the
gop to the curb, particularly the chamber of commerce around business roundtable. carol, always appreciate these conversations. all right, folks, cryptocurrency absolutely on fire. we'll talk about the hottest names out there and should you be afraid of flipping. you don't know what it is? you should. i have a guest who will let it all rip. we'll be right back. ♪ ♪ ♪ there are beautiful ideas that remain in the dark.
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charles: well, folks, the cryptocurrency market absolutely on fire. new names making mind-boggling moves as the entire space is able to ride the coattails of bitcoin. face it, they're the largest, most influential of all these coins. i think they are the ones who smash these government efforts to derail the entire movement. but what happens if bitcoin is no longer the top dog? joining me bit boy crypto founder ben armstrong. ben, all i read over the weekend was flippenning. i started getting nervous. what is going on? apparently ether becomes more valuable than bitcoin. number one will that ever happen and why does it sound on news. >> flip ening is the word we use. like the crypto glossary crypto
exchange words we make it fans syer than it has to be. flippening refers to not necessarily ethereum. ethereum is the in the catbird seat. when the first mover advantage ends and a coin passes it. we talk about it in terms of market cap. that is not the actual value. the market cap of ethereum can exceed market cap of bitcoin putting it number one but the actual value of ethereum per coin will not be as high as bitcoin. the market cap would have to be six times higher with the one individual bitcoin equaling one individual price of ethereum but the fact is we'll see the flippenning. it is not a matter of if, but only a matter of when. i think we'll see it, we have a good chance to see it in the next few months. what a lot of people don't realize who have not been in crip taupe for a while, go back to 2017 to january of 2018 you know bitcoin peaks earlier than
the other alt coins. if we get bitcoin heading to $100,000 by the end of this year, which a lot of people think we'll see, there is a good chance it will decrease in value significantly, 25, 30% in short period of time as ethereum is going through the peak of its cycle. if we see that, we could potentially in the next few months see ethereum pass bitcoin in market cap but the next five years it offers so much more than bitcoin does. charles: couple other names pop up. do you like that, dogecoin, ripple, talk to me about those names? that is what got folks on social media, those are names that have people really fired up. >> yeah of course, so you know, sheba investor is not a particularly savvy investor in the crypto markets. they're somebody who put something into something, they made a lot of money and they're real excited about it but there is a reason a lot of people in crypto, have been content
creators been investors in sheba, because it doesn't seem to have any value other than people hyping up the price. people can argue that could be across the board in crypto. ethereum it establishes more contracts, nfts, decentralized finance. shiba doesn't offer anything like that. when you get a group of people to speculate on something to get the price as high as it is gone, there is some value there there is not a utility for should be ba, there is dogecoin as a meme coin a lot of people laugh at it does have some utility there for a long time dogecoin would preclude bitcoin pumps because the order books would be so book because of the value per coin was so low, a lot of people would use dogecoin to off-load a a bunch of bitcoin to make other purchases. we saw dogecoin move ahead of bitcoin.
dogecoin is one of the oldest cryptos out there. it has a lot of stuff. charles: i have spot got to go. i wish we had enough time as you do on your youtube show but it is fascinating. they asked me to wrap a minute ago. ripple what is the story there. >> i think ripple will be the most explosive coins in the next few months as soon as the sec lawsuit is over. all my sources say we will get a settlement between ripple and the sec. that will lead to a huge price explosion, ripple or xrp will not longer be considered a security. all the oppression happened on the first half of the bull run due to the lawsuit will be over and we'll get a true up surge for xrp. charles: that is like we how to leave it. ben, you're the best. folks, we'll be right back.
has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management. charles: well, the value versus growth debate has dominated financial media talk all year long, but you know, the street really, it's interesting because the street shifted to this whole value side with that spike in yield back in march. nevertheless, coming into the week, value-to-growth is at its lowest level for the year joining me now to discuss luke lloyd and joanne feeney. i just don't understand why the street has been so eager to load up on value, it just feels like a guessing game to me. what am i missing? >> well hey, charles. you know, i think folks are
recognizing that with values under performance and economic recovery continuing, interest rates are likely to rise, as the fed starts to taper eventually interest rates rise from their perspective and into the market and that's going to threaten the higher multiple growth year stocks so folks are now betting on while a recovery is slower, it's going to be persistent and so it's time to make sure to have enough value in portfolios while at the same time, we've reiterated there are continued secular growth drivers so you want exposure to companies like broadcom and amazon and a few others so it's a good mixture and i think value is due to start picking up as the recovery, again, becomes foremost in investors minds. charles: on that note, luke, the nasdaq, as of last thursday, the average stock had pulled back 38% from their 2021 high, that's mind boggling to think of but at the same time. >> it's a lot.
charles: it's huge but at the same time, does it suggest buying opportunities? >> yeah, so the easiest way to solve that problem is to have a strategy and be confident in that strategy, so one of the things you can do is have price targets when you go into an investment you should have two prices in mind you want to sell it and take profits or get out of it if it goes the wrong direction and the stock market is all about letting your winners run and cutting your losses quickly, and then in regards to the confidence part, charles all you need to do is take a look at the stock market chart, over the past 100 years that should give you confidence that time in the stock market is more important than timing the stock market. charles: so let's take that chart and squeeze it down to two months. let's talk about a year-end rally. and get it started with some ideas that you like here, joanne what do you think, between now and when we start popping the cork, will be one of the biggest winners? >> well take a look at amazon, for example. the bad news is out on them, they've already warned that they are going to have to increase
costs to satisfy all those very strong demand into the fourth quarter, so that news is out. on the other hand, look at consumer spending and consumer bernie sanders. still really strong, so you could end up seeing lots of retail data come out as black friday turns into black november , and that could actually boost the shares. and also remember, that folks aren't really playing the stock market just for the last two months, and more and more now, we're going to see investors looking at 2022 so a company like amazon we should invest in future growth, could actually see some incremental positive catalysts here, and see longer term investors adding to positions as it's underperformed massively in order to build up exposure for the next couple of years. charles: luke? >> i've got a big name and small name charles. charles: okay. >> uber is my big name driving around in big cities is a hassle and time consuming expensive to park. here in cleveland it cots $60 just to park downtown for any kind of event, so uber is easier and even cheaper. charles: what's your small time? >> also a ton of pricing power.
the small time is par technolog ies, point of sale technologies, systems, software, they allow businesses to operate more efficiently and that's more important than ever, especially from the small business side of things, so the company has a lot of potential. charles: luke, joanne, wish we had more time. we've got great names and we're here to try to make money and liz claman, when i started this show, we were a little, you know, wishy washy on the s&p it's joining the rest of the indices we could have a strong last hour of trading. liz: what is up with the russel, charles. wait, look at this. there's nothing wishy washy about the russel. you guys, up 2.25%. charles: by the way? liz: yeah? charles: being led by amc which is up more than 4% on good fundamental news, the russel has been sideways for six months or longer people are looking for opportunity maybe that's where you see the momentum traders go next. liz: i can't. if you look at the percentage gains of the other major indexes you know what let's show you, okay? far out pacing the s&p, dow a