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

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that. for the dow it could be the first time it closes over 36,000. i said when we had henry kissinger mere for a while, this was a guy scoring all these triumphs, foreign policy triumphs when the dow was in and out of 1000. 36 times that right now. amazing time. benefit of patience with stocks. that is the clarion call of my buddy charles payne. he is now. charles: neil, great interview, great, great interview. good to see you as well. neil: interesting guy. charles: good afternoon, i'm charles payne. this is "making money." breaking right now, stop me if you heard this before, i will said it over and over, i will repeat it again, one of wall street's greatest axioms, new highs beget new highs. powered by record amount of cash pouring into the market. amazing earning. get this, stocks are getting cheaper. i will explain later in the show. all you have to do, grab a pen and a pad, let's make some
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money. by the way i have some great experts lined up to give you guidance as well. could tomorrow really be jay powell's last press conference as fed chair? i will be joined by one of his harshest critics who the biden administration wants to replace him. speaking of the administration, dems are in disarray, going to an old stand bito keep folks in line, but will calling senator manchin a racist really work? i will ask congressman mark green. all that and so much more on "making money". ♪. charles: all right. so upside bias largely intact. the market is drifted higher today. investors of course now bracing for three days of news that could really either be a clarion call or add more questions, right? listen what will the fed do and say tomorrow? can earnings continue to dazzle? will this jobs report on friday finally show americans gettings off the sofa? i think it will by the way. there are issues that cannot be
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resolved overnight. those issues are really not so invisible, not so subtle hands moving all the pieces on the board right now. we're talking mostly inflation. it is becoming a beast that is casting a shadow over everything from main street to wall street. joining me how it affects the markets, leuthold group, jim paulsen. conventional wisdom that inflation will be persistent. you were on that train before anyone else that i knew but why are the markets ignoring this still? >> well you know i think that, i think it is going to be persistent and i think it will end up at a higher level throughout the rest of this recovery but i do think it will probably calm down from where it is right now. i think some of these supply change issues will get better next year and inflation overall was, will roll over next year and i think the market is reflecting that. if you look back historically, charles, i did this earlier this week, all the way back to 1870
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we have had a burst of inflation above 4% quite frequently in u.s. history, more frequent than not actually over time and the vast majority of these except, really two times, world war i and the 1970s, they were proved to be just temporary and they came back down to earth within two years, almost every time. i think the bond market is doing what it has done historically. it generally ignores short-term bursts of inflation and generally been right to do that. charles: meantime we've got something unusual that we've never seen before. if anyone were to pull up a chart of household cash, $3.6 trillion. savings rate we've seen dropping here a little bit. i guess here's the question, what happens first, jim? households run out of money or the inflation crisis passes? >> you know i think the inflation crisis is going to pass before they run out of money, charles and in fact, if
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it does calm down the inflation rate, it could actually stimulate even greater spending down the road a little bit overall. i just think that the inflation problem is mainly supply chains that will probably get better in 12 months. boy, we're sitting with consumers as you said with almost unprecedented cash balances and maybe two trillion dollars of excess savings yet and i don't think that will come on in one year. i think that will be spent out over multiple years and could be a significant force for keeping this recovery at a faster speed in real gdp terms, maybe 3% rather than 2% which we've been used to in the past decade or more. charles: what does that mean for the markets? if you're structuring a portfolio for the end of the year into 2022, how would you compose it right now for someone who is watching and considering? >> well, i wouldn't own a lot of bonds. i would keep that to minimum exposure. you might have some cash in lieu
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of bonds, i get that but i would still be pretty overweighted stocks. i think there is really great odds we'll get a correction in the next six months. i thought we would already have one by now, i still think we will but i would still be overweight on stocks and i would be focusing overweight in cyclical areas an small cap areas. i would focus maybe diversifying away from large megacap u.s. stocks, large megacap companies. not that those companies are bad, they will continue to do well but i think leadership is shifting away from them toward small and mid-cap stocks and more cyclical oriented sectors. i would even put some more international exposure in, because i think the next year the dollar could weaken a bit favoring those international stocks. charles: jim you always said the timeline changed a little bit when we would get the bit, you said hold the market no matter what. you never told anyone to sell that is the most important thing. >> no.
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charles: anyone listening to you they're enjoying the ride. thank you very much, jim. >> great to be here. charles: i like to bring in the market watchers, this morning, afternoon. investors and fans of sports they love streaks, they love trend. here we are 2021. we've seen new highs in the s&p every single mon. only once in history has that happened throughout the entire year. also, by the way that was 2014. and there have been at least 60 session this is year that closed at new highs. that record is 77. erin, is there enough momentum for us to make history, take those records out and make some history here? >> i wish i could say yes. i think it is unlikely because we have only 42 trading days left in the year. that means 40% of the days would have to be new highs. i think that is a lot of momentum to ask for, not that i think we're in for a correction or that the market is going to
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tank. i'm still very positive toward the end of the year but i'm not sure we'll beat that record. charles: jamie, you're not a party-pooper, are you? come on, my man [laughter]. >> i'm definitely not a party-pooper but i have to agree the days are short. you know what? in the prior six quarters analysts have upgraded their earnings estimates in each of the, first month of the quarter which hasn't happened very happen. data going all the way back to 2000. it only happened one time in 2004 where it happened four times where anists increased earnings in the first month of a quarter and we're set on six. this month was even, wasn't as high as the prior quarter but we're still sitting with enormous amounts of earnings estimates. i would say this time however, the earnings estimates have been slanted to more value oriented sectors like financials, energy and materials and i think if you're just looking at markets, all technology, the set-up is this, the technology stocks stay
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flat. the value stocks continue their climb. you will see a lot, maybe not 77 but you will see very close to that in terms of number of days the s&p 500 goes up this year. charles: point out to the audience one of the reasons for that those sectors that you named have very small weightings in the overall market, right? one thing if you had tech, communication services and consumer discretionary, they could easily power this market higher but to that point, right, if we do shatter the records it will be because of earnings. in fact today the top five names in the s&p 500, they have one thing in common. not just that they beat earnings, folks. it is guidance. erin you've been somewhat cautious on earnings, at least the last time we spoke, how do you feel now particularly with the guidance coming out? i think that is the key infreed end -- ingredient here. >> i'm looking analysts how are they chasing and revising the next three quarters, and overall
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for the s&p 500 it is going up, every single quarter the next three quarters s&p is expected to have higher profit growth. much like jamie is saying it is really about certain sectors, financials, real estate, energy. they have been massively revised up. that is pushing higher earnings estimate versus industrials, consumer discretionary. they have been massively revised down for the next three quarters. they're ultimately, we've had more upwards revisions than downward revisions. charles: right. >> you have to be careful which sectors are expected to do well over the next three quarters. charles: here is the tricky thing right now because i'm holding a couple stocks where the earnings and guidance were okay but you know, the companies couldn't meet demand, right? so stocks are off a little bit and this is what i'm wondering, jamie, how do you decide when to hold a company that maybe the demand is there but they can't,
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obviously they don't have access to the products and do you say, okay, it will materialize, so you take a stock sort of sagging a little bit on this news assuming that it will materialize at some point? >> charles, i think it is all about pricing power. i mean if you're apple and you can charge basically anything you want for a phone absolutely. if you're united healthcare, you have pricing power over government agencies with regard to health care information services for sure but you know there are other sectors not so much i think it depends. to me it is all about pricing power for these companies whether or not you take on the risk. in semiconductors what you're talking about, the recipe is sort of the, the sort of storyline is surging demand meets limited supply and if you're taiwan semi you're able to raise prices. so absolutely if you take a dip in the stock, you need to make sure that is a stock you can own or asml or broadcom, any of those companies in semis for
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sure. charles: right. >> i don't think it translates to every single company. i don't think it translates to verizon or something like that. charles: i agree. it is a tricky thing. we're 300 names into earnings, if something is popping and exploding that is a great problem to have. if something could have exploded if they have the product, and you're not sure as an investor that makes it a lot tougher particularly when the rest of the market is up. jamie, erin, thank you very much. folks, 2:00 p.m. eastern we'll have breaking coverage of the fed decision. tapering is a given. what about hints about rate hikes? you have to tune in for this. i have a guest who is calling out jerome powell creating the widest wealth inequality since feudal times. despite senator manchin saying president biden's spending proposal is a shell game, nancy pelosi wants have a vote this week. i will give congressman mark green's take this week.
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charles: all right, folks, the stock of the day is avis. up almost 100%. up 200 points at one time. this after posting earnings beat. also sparking a massive short
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squeeze. my next guest says this is an example of the carnival atmosphere in the investing world created after years of nonstop central bank money printing. let's bring in north trading founder, sven hendrick. i will say it before, you have one of the best twitter feeds of someone covering the stock market but you also seem a little bitter about the money printing. the point you vie to convey with people about all this money printing, what is it? >> i'm not bitter. i'm having the time of my life in the environment we're in. look, i mean it is obviously incredible what we're seeing on the asset price inflation game but we have to recognize it what it is. it is tied to the hip with the central bank balance sheet of the ecb and the federal reserve. it has been going on since 2009. the only time they tried to tighten monetary policy in the
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fourth quarter of 2018 everything fell apart. of course they had to flip-flop right away. the main message here is, maybe, the american population is slowly waking up to this, the wealth inequality that has been bestrode on the few is absolutely staggering here. top 20% since the bottom, $13 trillion of wealth into the people that own financial assets which are targeted by the federal reserve, okay? charles: right. >> the bottom 50% basically don't own any stocks at all and fed policy is dealing with the stock market. unfortunately that is what it has devolved to. the entire song and dance about tapering and rate hikes is tied to not upsetting the stork market. that is unfortunately -- with that in mind, with that in mind, there is a lot of talk bringing in someone even more dovish than jerome powell. in fact yesterday secretary yellen gave an interview.
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she did not really give him a rousing endorsement. she didn't give him an endorsement at all. some say this is an attempt to appease progressives in this country but it is ironic far left want to keep policies the way it is. the fed is staying woke and the way they help the masses is keeping rates ultralow where they are now? >> i posted a interview with stan drunkenmiller in the spring. he made basically the same point i made, the federallee serve is the largest driver of wealth ensee quality. he is baffled people are excited about money printing when the data is very clear. the people that benefit from money printing are the extremely wealthy. they have gotten away with it between 2009 and 2020 because there was no inflation. now all of a sudden we see inflation being a lot more aggressive and the fed is trying to die on the hill called transitory but the fact is the
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bottom 50% are stuck with higher prices. even jay powell is admitting why prices are not coming down. democrats should wonder why the polls are plummeting. issue of larger discontentment, people can't afford high prices are stuck paying with them, the rest of wall street is having a party. that is stressing them on the way down. it is fun on the way up but not on the way down. charles: i have less than a minute. i want to squeeze this, when do you get, does anyone get out, talked about the time starting 2009 to now, it has been a long run. a lot of people guessed where the top is. they made a big mistake getting out of this, when do you know the ride is over? >> you won't, basically you won't know until after the fact. that was the 2000 tech bubble as well. you have to be respectful of the momentum and the strength but you also got to be aware where key levels are. we look at it from a technical perspective. right now i would focus on 4550
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which was the september high. as long as prices remain on the s&p above that level, bulls are in control. if they were to lose it here this month, for example, there is a risk of double top although seasonality is very positive for the end of the year. everybody is touting that. there has only been two years when it was not good. 2018 and the year 2,000. we'll have to see now how markets react to the fed actually announcing taper which i would remind people, taper is not the end of qe. they will still expand the balance sheet into the end of the year. charles: fantastic talking to you. keep up the fantastic tweets. we'll get you back very soon. thank you very much. >> good to talk with you, charles. thanks for having me. charles: new warnings that president biden's tax plan will bolt america's taxes to the top of the world. we're talking about being number one in the wrong category. "fox & friends" brian kilmeade will join me about his new book.
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♪. charles: well, the nights can soon catapult to the top of the world's most taxed list, especially if president bide's build back better agenda becomes reality. hillary vaughn live on capitol hill with those details. reporter: charles, if this plan passes you're right taxes are going way up. in fact it would catapult the u.s. into the highest taxes in the world surpassing countries like denmark and japan but some analysts say that these tax increases, while they will bring in more tax revenue, will ultimately hurt u.s. competitiveness. when you tally up the tax hikes on the federal, state and local levels the u.s. top income tax rate under this plan would rise to number one to 57.4%. additionally all 50 states in
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the u.s. would have a top rate on personal income that surpasses 50%. eight states would have rates over 60%. new york, 66%, and california 64 but even states with no state income tax like florida, would have a top rate of 51% if these new taxes go into effect. the tax foundation that did this analysis says this will have an impact on everyone, not just the super-rich, telling fox business this quote, there is no way to isolate the effect to millionaires or billionaire or unless the millionaire, billionaire is a complete recluse, sitting on a pile of cash or something, not interacting with the rest of the humanity. there is no way to isolate the effect. it is dell economically tee instructive. it is not limited to billionaires, millionaires at all. the tax foundation estimates with the tax increases even though it would bring in billions of revenue, on the flipside, gdp, wages, jobs will all fall downward if the plan
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passes. charles? charles: hillary, wow, thank you very much. meantime it is starting to look like "the hunger games" or maybe the "lord of the flies," infighting turning into name-calling and ugly accusations. democrat cori bush releasing a statement chastising fellow democrat senator joe manchin west virginia for lack of the support to the build back better act saying his unwillingness is antiblack, anti-child, antiwoman and anti-immigration. republican kong -- congressman mark green of tennessee. always comes down more money is the solution. isn't there a more elegant way to address the concerns brought up by congresswoman bush? >> freedom is the thing. when you have centralized control in washington you don't get freedom. you want to help any group of people, taking latinos coming from cuba to the united states. they have seen communism. they have seen tyranny. they come here and start companies and start businesses.
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i've been to miami and seen these businesses. folks who just got to america, starting companies. they're not getting $450,000. that is because we vote republican of course. it happens. they don't, you don't want government, more government is less freedom. these taxes do nothing but take money out of employees, take money out of companies that they would invest and growth wit. ultimately they move overseas. the laffer curve is true, if you raise the price of taxes enough, people will stop, find ways not to pay it. so it is insane. charles: to that point, i really, i applaud folks who come here from other countries. they know how great america is. more so sometimes than native-born folks because sort of like new york city. maybe 1% of all native new yorkers have been to the statue of liberty. we take it for granted, right? >> that's right. charles: other folks embrace it, love it, go for it. i love your thoughts on the
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gubernatorial races. if one goes to the republican side, seems like it could shift everything the entire narrative. what are your thoughts there? >> i think america is waking up to what the progressive left is trying to do. they have actually run an insurgency to overthrow our systems and create their socialist utopia. stage one one of a insurgency, d your message. stage two, take over media, education and entainment. they did that. now they flipped into stage three of the insurgency. i think though did it before the frog was completely dead. americans are waking up. we don't want the socialist utopia. we want our free market system. this guy, all these governors are looking pretty good right now. charles: of course socialist utopia is the one of the biggest oxymorons next to jumbo shrimp i can think of. look at where things are going on in china.
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think about these, china lost 30,000 visitors inside of the disneyland after one guest got covid-19 and telling citizens to stockpile food because of tighten. i think there are much more carnage of the pandemic. i think the death tolls are so much higher than china would admit. has me wondering how much risk could we be right now and not even realize it? >> i think, first point, charles, what china is doing isn't that much different than the progressive left. they're basically taking advantage of the coronavirus to become an autocratic state. of course china already was but i mean the left is forcing all these mandates, forcing companies, forcing hospitals to shut down, forcing police and law enforcement and our military, just imagine the readiness impact that these vaccine mandates. also they can have their control. their authoritarianism. that is what it is really about. what we see in china with this ridiculous 30,000 people locked
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down because one positive you know, test for coronavirus. yeah. there is a lot of similarities there. charles: absolutely. i hope the rides, they at least kept the rides going. congressman green, always a pleasure, thanks so much. >> thanks, charles. see you. charles: i want to bring in from baltic capital markets, kathryn rooney vera. where would the money come from and what would that mean for the economy and the stork market? >> senator manchin thinks it is a bunch of gimmicks being finance this built. it is not financed. additional ideas of surtaxes, personal income above 10 million, 15% minimum tax on corporate profits, et cetera, a lot of taxes. the fact, charles, this will add to our already enormous debt pile which of course is $20 trillion. we continue to deficit finance ourselves monetized by the u.s. federal reserve this is just
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more fuel to the fire and what is already an inflationary environment, charles. you know i've been talking about inflation for about a year now, the real threat for 2021 that has played out exactly as forecasted. inflation is the real threat. charles, i will add one more point, as inflation is higher fed will have to hike rates. hiking rates increases cost of financing the $20 trillion in debt. it gets uglier and uglier. we have no plan to go back, take back any of the 2 1/2 trillion dollars we already approved in congress regarding covid related stimulus. we're just adding fuel to the fire here, charles. charles: speaking of fuel, if these bills are passed there will be more money pouring into households t will exacerbate the crisis. the more important thing from investor point of view how do you protect your portfolio? >> you have to protect it with inflation hedged instruments.
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we've been talking about this at bulltick. you can go long green energy. green energy, up 30% because of this infrastructure or not infrastructure but basically an environmentally charged spending package because about half of it goes to green energy. look, you look at emerging markets, there is some subsectors of emerging markets which look interesting. talked earlier about china. there is some value there. you can go into chinese equities, look into consumer discretionary. that kind of policy pivot by president xi of the crackdown on, crackdown on the financial sector i think has gone away. so we're going to see more upside in chinese equities, some brazilian bonds. you can buy inflation rate sensitive sectors in the u.s. charles: i have less thann a minute but let me ask you about yield in general. the s&p 500, i think it is about 1.3. the real yield is negative. the yield against inflation, against the cpi.
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so where does an investor, american investor find yield and yet sleep well at night? >> right. yes, you find yields by going overseas. there is not much yields right here in the u.s. not in high yield bonds or high grade bonds. you can go short duration, shorter term paper and you will not get a yield. petrobras bonnes in yield, 2.6% yield. it is not too risky of a bet. a there is risk with emerging markets but you can get yield. u.s. focused investors stay rate sensitive and interest, and inflation sensitive sectors. charles: thank you very much. we covered a lot of ground. thank you, appreciate it. all right, folks brian kilmeade is coming up to share why his new book about abraham lincoln and frederick douglass explains what we're going through right now in america. the market on pace to close in record territory. we have trades you should consider owning before the closing bell.
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♪. charles: the nation continues to grapple with the legacy of slavery and the constant need to litigate and prosecute the past it is refreshing to take time out to really learn actual history. america is the greatest nation in the world in part because of the wisdom of the framers of the constitution but also because of people that used that as a platform to help fashion us into a more perfect union. two of those giants, are the focus of brian kilmeade's newest book, "the president of and the freedom fighter. abraham lincoln and frederick douglass and the battle to save america's soul. he is host on "fox & friends." brian, i can't help think about
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the battle to save america's soul. that is ongoing battle even to this day. >> we were not perfect. president george w. bush was one of the first to say that. they had to find a way to cobble together the 13 colonies into 13 states to make a country. that is one of the give aways they put off and it would fester and boil and come to a head in 1860. you are the first person i mentioned this book two or three years ago in my radio studio. i can't do a better biography than david blight on frederick douglass. i couldn't write something new about abraham lincoln. he is the most written about president in our history bar none, more than washington. what if i talked about how the two struggled through their lives to make a difference, to come together the at the right time to make america a more perfect place. it was an on going battle no doubt about it, in our country and between them. charles: fast forward to today. we have for instance colin kaepernick has a special on
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netflix equating the process to become a nfl player to slave auction. those keep of things. are we too focused on the past? we looked through the lens of presentism. i always tell people you have to be careful taking today's values and applying it to 200 years ago, 300 years ago, whenever you want to do it. >> all i can say when it comes to the nfl combine. that is televised on television. we saw a video of tom brady going through the nfl combine, wearing shorts, looking like the last person who would be a good football player. i don't think tom brady looked at that as slavery. that is an insult to go back 220 years to compare the two things that could possibly happen. where african-american was, slavery existed, don't ever forget we have to teach that, but talk about the gains along the way, heroes that stepped up white and black along the way. garrett smith, somebody never heard of but frederick douglass
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would ever laud. william lloyd garrison, two abolitionists believed in equality and thought america wasn't there yet. charles: let me read a passage out of the book that struck me. this is about the fugitive slave act. douglas after carefully thinking his arguments he actually boiled it down to this, consistent with the noble purpose of the preamble, douglas believed the constitution could be wielded on behalf of emancipation. he had a strong believe in the constitution and the constitution is under attack all the time these days. i don't think people understand, it is the foundation, they didn't write it we would be perfect the next day. all the strides we made are they steeped in the words of the constitution? >> absolutely. evolving the moving target, the constitution as it goes through equality, i think it goes back to even frederick douglass' life. he moved from slavery as a best-selling book and
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internationally known as an lecturer or intellect. no one believed he was a slave. they started saying prove this to me. he had to take off his shirt to show the whip marks. he didn't believe the country had to be torn down and rebuilt. that is william lloyd garrison. he brings garrett smith. and begins to have non-stop studying. garrett smith says we have to live up to the constitution. we're not doing that yet. he showed the amendment process, where it led, what it talked about, life, liberty and freedom, where we could go. he used the constitution to push lincoln to do what he said the founding fathers wanted to be done that were not able to get the political momentum behind them as i write in the introduction to be able to pull it off at our birth. we put it off until 1820. we stopped -- charles: by the way is a short period of time in annals of government. we were a young country then. we're still a young country. real quick, when they finally met, mr. douglas said to the
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president, kindly, the president said to douglas, i know you. i read about you. mr. seward told me but. sit down. i'm glad to see you and a candid conversation followed. i love that line. that is where we need to be in america right now. we have candid conversations. don't need to be angry. we all work to the same thing. we want america to be great. people should read this in schools. >> thanks for picking those excerpts. they meant a lot. when they final met all the perceptions melted away. charles: two gentlemen talking to each other how they could be their best to make the country their best. >> absolutely. charles: congratulations. brian is doing a virtual book signing and discussion tomorrow. register at life signing.com/president. we'll be right back. ineer. you need to hire. i need indeed. indeed you do.
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charles: folks, this rally has investors grappling with two things, a, is too late, b, how do i find winners, and c if i'm leaving market how do i spy the exits? i'm happy to have one of the best market technicians in the business, ian macmillan joins me now. how do we measure upside
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potential from here? >> well, first off, thanks for having me back on the show, charles. so how we want to look at upside potential for me, that is going to be using something like a fibonacci extension. if we take the russell 2000, for example, it has been in an eight-month range, we're real close to breaking out, we take a one point extension from that. we have another seven to 9% upside that i think we could see here before the end of the year. charles: so on conversely where do we potentially get out or where should we start to look for stop loss points? >> i think the s&p, if we break back below the september highs, early september highs, around 4540, that would certainly be a sign that caution might need to be taken. charles: ian, what is the most important chart right now for someone who is looking into the markets that they should,
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everyone should be looking at? >> i hate to beat a dead horse. every time i come on i feel like i'm, i continue to say the same thing but it still continues to be the russell 2000. it is the one of the major indices that we're still waiting on for confirmation that stocks are going to move higher. we've seen it from the s&p. we've seen it from the nasdaq. we've seen it from mid-caps. we've seen it from a lot of sectors. but small caps, in particular the russell 2000 just waiting a little bit more, so close f we can do it i think it is great news. charles: had an amazing session yesterday. i would have thought we got the break out today. i have less than a minute. you always post on twitter some intriguing charts that are breaking out. can you share a couple with us? >> i like silvergate. we talked about that before on the show. it is giving you another opportunity from a risk/reward standpoint.
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i like cvs, and one that doesn't get a lot of airtime, oldie but goodie, overstock. charles: golly. a guy who works for me on my research team. he loves overstock. i've been burned in it so many times. i have to go back and take a look at night check all the consolidation. i think it has potential. charles: ian, thanks very. always appreciate your expertise. >> have a good day. charles: more than half of the s&p companies, say about 300 have reported. most of them are just crushing it, right? we have names you need to keep your eye on as we head towards the closing bell. names that maybe haven't reported so you want to get in them now. ♪. ♪ ♪
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charles: well, the market keeps going higher but here it is folks it also keeps getting cheaper. you know, that magic is courtesy of monster earnings results so the e has been fatter and the p in that pe ratio especially forward-looking pe ratio which is what i prefer so for those who waited and waited and still looking for excuses, maybe you should just join the party i'll bring in shana sissel and david nelson and shana first let me say congratulations for joining strategic wealth partners you're their new chief market strategist congratulations on the new gig, so what does a chief market strategist say to
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the fence hitters watching this market from the inside out with their nose pressed against the glass, they want to get in but they keep waiting. >> well first, thank you. i'm really excited to join mark tepper and his team at strategic wealth partners. you kind of alluded to it initially. i said all along over the last year, like pe is only as good as the e that you're using to determine if the market is cheaper or not and valuation in the market is really reasonable. if you've been sitting on the sidelines all this time i'm not sure there's anything i could say that would convince you. we had volatility where there was good buy the dip opportunities in september and at some point in october, so if you are on the sidelines and you're thinking about when to get into the market, just remember. it's time in the market. not i'ming the market, so there's nothing to keep you out of it and i would suggest momentum remains strong and now is as good a time as any to get in. charles: love it. david obviously you're always
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fully vested which is one of the reasons i love having you on the show but the question to you be a little different then. how do you find value in a market that's on fire. >> for me, charles value is relative. if you hold fast to some arbitrary valuation metric, you probably haven't been in the market the last five years. i try to use something a little more intuitive, estimate revisions for top and bottom line and i think that keeps me ahead of the street. it lets me focus on stocks where analysts are still playing a catch up game and as we're staying out of the market or trying to time the market look at september. at the end of the month, how much money kicked out of the market looking to avoid a downturn, down 5% always looks like it never looks like an entry point, another one is right behind it you would have us med october. charles: almost 300 names have reported give or take, each day i see some that i wish i had. shana, any names that are in the earnings queue that are worth looking at for our viewers before they release their earnings? >> so i'm still getting myself
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familiar with the portfolio at strategic wealth partners, so the suggestions i'm going to make are just based on my personal what i'm bullish on personally and i've done the work on. i think home builders are really interesting here. they've been pretty beaten up. a lot of them have not been participating in the more recent rally, but they've had some earnings. those have reported so far have been pretty strong. we saw new home sales were strong in sentence a matter of fact much stronger than they had been and they are impacted by supply chain issues, so this is an opportunity to kind of get in at a point where they're struggling due to a macroeconomic factors not necessarily anything with the business and on weakness i'd be buying some of those names. charles: david, your favorite idea right now. >> you know, activision reports after the bell and it's not a name that i own but this is a
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secular growth story, there maybe an opportunity after this earnings report and i think what's understood is the workplace culture lawsuit, there's no blood in the firm but i think there's potential guide lower for the fourth quarter that could be the entry point, i think compliance costs will go up, i'll be looking at this over the next several days. charles: what are you worried about, david? it feels like we know all of the things that are hovering, so yet the dark clouds but we know them all and it always feels like when wall street knows what the concerns are, it sort of whistles past the graveyard. is there anything we're missing? >> for me the two biggest items are really political and geo political. right now, i guess what i look at is the good news is that some of the destructive legislation isn't going to make its way to the president's desk and the part of it that does is likely to be paired back. the questions i ask myself each and every day, how high does oil have to go before we see demand destruction, and is industry going to be successful in bringing back some of these
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mission-critical supply chains and the answer to all those questions are where we'll be in three months. charles: right now we're rocking , again, shana congratulations and david, always appreciate having you on, folks, pretty good hour, you know, we're sort of edging our way up. you gotta understand, there's so much happening over the next 72 hours, you know, starting with the fed, ending with the jobs report, but i've gotta tell you liz claman, right now, i'm very impressed. liz: well, are you impressed with avis, charles? charles: no i'm not because i sold it last month. stop rubbing it in. liz: dummy. i mean, its moved up 138 spots to the number three most mentioned stock, and we'll show it to you in just a second but i've got a question for you guys do you think we'll close above dow 36,000 for the first time ever? the new record could be cracked in 59 minutes right here, the four other majors on your screen, also on track to close at never-before seen heights and by the way for the transports they're

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