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tv   Making Money With Charles Payne  FOX Business  January 25, 2022 2:00pm-3:00pm EST

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look at the intraday chart, volatility continues as well. oil prices up for the first time in four-days as tensions escalate at the russia ukraine border. that is helping the energy stocks today. one of the only sectors in the green as we see another wild day on wall street. thanks so much for watching. now we'll send it over to charles payne to take you through the next hour. charles? charles: thank you so much. good afternoon, everyone, i'm charles payne this, is "making money." breaking right now, top thriller dragster, superman escapes from krypton, red force, until the last 24 hours those were the the greatest roller coaster rides in america. this stock market has taken over. i know the ride is not fun. if you panic it will make you sick for years to come. what you need to know to keep a level head to turn the topsy turf very market to your advantage. i'm talking to a former trump
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economic advisor on the most important measure of economic success, what the biden administration can do to right the ship. one of crypto's biggest skeptics became a believer. when brilliant people get laser eyes i will ask why. i will ask vane hendrix and get his latest thoughts on the federal reserve. more on that on "making money. ♪. charles: all right, so maybe it is cultural, but the big question these days, are the go, go days over? last week we saw the green m and m tone it down from heavy makeup and go go boots to less make up and sneakers this, is supposed to make the character exclusive. we gone from the roaring '20s to the boring '20s. i don't think this is a pause. i think go-go times will resume, folks. i do, i am crest fallen to read
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that retail investors off-loaded $1.4 billion in stock yesterday by noon. you know, making room to i boot dips is one thing we close out positions, that are not going to come back. i think that is fine. these numbers, that is sheer panic. moments like these when i have to ask investors to pull up charts, right? pull up a chart of the market. i want you to zoom out, as far as you can. so even accounting for the great depression, when you do thatt it hit b ba sloai str up. ihes m t the theto s make atmdjenusdj todjusourou o, keeo,p k yeep on. o o e t m t m dsscuss risteirist advisors,is dan dank. u w wu w wu w las cout s yous oame s lo s mket p put out exacex w you youou s teteappe hnsappeappeappe n >>h, crles, y,ou're right, fir, f all i i reh thatorst ing wein can d too paniclelln yo polol that bat b said,d, i wayayay at hning nowow the she
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pyi outut is far om having pglaye pla out. i think that the reality is, it is less about the overall market but we've been very cautious on specific parts of the market. we've been saying that anything tied to technology, innovation, disruption, what everybody wanted to own, those are the areas that you need to be worried, we saw, we felt there has been a bubble. i think that the unfortunately you know, there is probably further for that bubble to go down over time but on the positive side, to your point, really adjustment that need to be made. if you think about it, energy, financials have been left for dead for years. those are the biggest opportunities where you're getting paid to take that risk. case in point, up this year, energy is up double digits. financials and consumer staples are barely down at all where the bubble stocks, you know they're down double-digit, some cases 40, 50%. those are areas i think people need to be worried about.
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charles: dan, to that point, are these short term adjustment, you take the portfolio. do you get out after microsoft and put it into a general mills and then do you have the where with all to get it out of general mills to put it back in microsoft at some point? is that the sort of approach now? >> yeah. i first of all, charles, i don't think people should be day trading this market. i think, they do need to sort of fall the fundamentals. reality, expectations an valuations for this part of market which has grown exponentially, probably gone too far. anything associated with the bubble, even if they are good quality stocks or cheaper stocks, is probably at risk for when things collapse. i think you know you don't need to go to extremes taking whatever the exposure is, think about diversification. by my analysis roughly 50% of the s&p's market cap is somehow vulnerable to this story. so that is not diversification.
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taking some of that, putting it into the rest of the market makes a whole lot of sense to me. charles: yesterday, this reversal a lot of theories out there including reemergence of fed put. why didn't we have the big reversal and maybe again today? >> the reversal, i'm sure there are some really good technical reasons for why you saw the bounce that you saw, you know i think at the end of the day the bottom line is, the reason you saw the bounce confidence for this part of the market is still extremely high. you built up years and years of confidence that every dip you should be buying and it takes for a long time for that to be shaken out. that is why you see the dips. things don't move in straight lines. you get reversals a lot. ultimately there is more downside risk. charles: dan, thank you so much, appreciate it. you've been spot on for a long time. >> thank you. charles: like to welcome to the show cali cox.
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congratulations on your new role. i know you dial with a lot of individual investors. wheels of emotion, we've always seen the thing. i think we're at the capitulation phase. maybe, i want to get your thoughts. are we start an emotional bottoming process right now? >> yeah, charles. it is really hard not to get up in your emotions these days for sure. i'm dealing with this myself. we really do think that the market is getting to capitulation mode. there is lot of fear out there, hearing it from a bunch of people on wall street, saying that the fed could hike 50 basis point, could hike eight times this year. we think there is a bit of an overreaction. there is good news too. there is news that capitulation could open the door to relief rallies down the road. there is certainly cash on the sidelines that could flow in like we saw yesterday. charles: what do you say to individuals who say listen, i can't wait. i'm too anxious, i want to bail right now, i want to keep them calm? >> yeah. a lot of our customers are that
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everyday investors. investing for the long-term goals. trying to build the nest eggs, invest for retirement. we're trying to stress to them ups and downs are the nature of investing. while it is really anxious, uneasy time to invest right now, we see a 10% correction in the s&p about once every two years. we're telling them to zoom out, focus on your goals, not on what is happening what could happen next in the market. think of this as an area for opportunity. there are parts of the market that would have promise than others. we really like cheap cyclical sectors, like financials and energy right now. but you know chances are there could be some interesting stories in tech. there could be interesting stories in other tech sectors. you need more long term. that goes back to thinking about your goals, focusing on the goals. charles: you mentioned fed, some of the things we're hearing may go nuclear, right? immediately cut off. i think they will cut off all the asset buying.
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go 50 basis points. signal eight rate hikes. this is also impacting the bitcoin market as well. you have a lot of customers in that area. share your wisdom on bitcoin, particularly as it is pulling back right now. do you think the pullback may be over? have we just now, are we in the midst of maybe another buy opportunity? >> yeah. that is a really tough question because the coin and crypto is such a new market. it is really hard to see what the intrinsic value of bitcoin and other cryptos are these days. we see a lot of promise in crypto. the story -- we're watching going away, from a longer-term perspective we see a lot of promise there. we talk to our customers about how they're viewing crypto as well. crypto is one of the biggest assets, a lot of investors on the line are looking at these days. we're seeing institutional money going into the space as well, which is a check of legitimacy from our view. we think that you know, cryptos,
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you may have to think a little more long term, try not to get caught up in the swing but at the same time if you're encouraged by the story this could be a good long-term opportunity for you. realize what you're investing in. realize it is an emerging space. charles: got to be honest, folks than folks in stocks. we appreciate it. cali. >> thank you. charles: i want to bring in mark newton. after that, remarkable rebound, intraday reversal, how important is it now. cmt. one of the best technicians out there, how important yesterday's low become sort of you know, staunch support point? >> charles, thank you for having me back. look, i think it is going to be a bottoming process. difficult to get underneath yesterday's lows. the selloff will resume, not more. consider a couple points. we've gotten very oversold in the last 14 trading days. we're down about 10% from
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all-time highs, don't forget that was january the 3rd. the rest has gotten very contracted. 13% of all issues above 20-day moving average. there is lot of selling. third point i want to make sentiment is really starting to finally get birrish. you're bearish. evidence of sentiment polls startinging to invert very badl, aii, bears over bulls but a lot of backwardation. from a momentum basically suggests to me we are getting close to at least a trading low and as you mentioned, huge reversal yesterday, often great to see a hammer off the lows we saw. charles: to that point, mark, we see the downside. we see the things sort of like the spread between bulls and bears, from the individual investors survey. historically these have been clear buy signals. is there a point on the upside that you feel comfortable with, that you feel more constructive
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with on any of these charts? >> to be truly constructive, to go back to highs, we need to get back above the last swing low which is unfortunately a long way up. it is near 4582, which was the january 10th lows in the s&p. getting above that we should get back to all-time high territory. until as you know, being down so severely a lot of times bounce off the lows, often times retest an potentially on couple occasions. that you try to bottom pick a exact low after such a severe selloff. charles: i gotten burned a lot more times than i admit, anticipating that breakout, instead of being disciplined. it didn't come. i guarranty you, most of our audience who dabbled into technical analysis as well. 10-year yield, i want to talk to you about this, last march it was on fire, going up the general consensus by everyone i
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interviewed, it would be above 2% by july 4th. that was a long time ago. it still isn't there, we talk inflation, we talked to the fed. it is spiking recently. what is the 10-year yield telling us? >> well for me it is not the absolute level. it is more the pace of the moves it sometimes can spook markets. you see rates start to move up rapidly that you saw lately, often times that will serve to spook technology. you do get good moves in financials. long term trend line 30, 40%. 2% is psychologically important. i do think rates likely are higher in the next few months. look it is tough to pinpoint you know, a true low in yields. fed potentially could hike four times this year. that could spook markets during times of volatility. if growth starts to slow. i don't think the 10-year will go up that meaningfully for the balance of this year.
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i think short-term rise, stall out, being, and pull back in the second half of the year. charles: less than a minute to go. in the last year every sector has the day in the sun, rolled over. we had a rolling correction at some point took everyone down. for the rest of this year where should we look for outperformance? >> energy i think is one of the top performing sectors, not only for the month of january, of course last year, it outperformed everything. normally when a sector like energy shows very good outperformance for the month of january, you tend to see almost unanimously that the sector does well. i have done studies of that i'm happy to send you, it typically ends up in the top three half the time. it happened 18 times in last 45, 50 years. i like energy. relatively speaking we're breaking out. we have geopolitical tension. that can come to the forefront. it tends to be real lack of supply. the opec plus members, are meeting supply and demand. consumers are he have strong.
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i like energy to outperform. that is number one pick for the sector. charles: send me that research. i would like to consume all i can. thanks a lot for the expertise. helped us out a lot. folks we'll stay on the markets throughout the hour. later on i'm joined by kenny polcari. i will talk about the value trade. he is on it first but is it too expensive. the rising misery index. i don't have to tell you what that is. biden administration, first hint about rising inflation. how can he turned tide? i will ask joe lavorgna, he knows. he did it. right after the break. ♪.
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charles: it's the economy stupid. no, those were not words uttered at president biden's press conference. but they were coined by political strategist james carville back in 1992. there are so many ways to measure the economy. i think it is clear. nothing really matters more than real, real hourly wages. take a look at a chart, see all
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the lines at the bottom. you see where the chart spikes higher. that's when you saw a real earnings, real wagers going through the roof. the only thing that really stopped it was covid-19. now the question is, why was it happening then. or maybe can it happen again now? ask former white house chief economist joe lavorgna. you were part of the architectural team that made that happen. what was the secret sauce? >> the secret sauce, charles, was the tax cut and jobs act of 2017 which was designed to lower marginal rates, more importantly corporate tax rates and that income ultimately flows through to workers, through, through, higher pay and of course investments in productivity and enhancing equipment which could pay higher wages. what we saw in 2018, 2019, was a massive increase in household median income, especially at the lower, middle tiers. in fact it was largest gains we had since the '60s.
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so that was a very important plan that president trump shepherded through congress. it worked extraordinarily well. we had covid, things were dislocated a little bit. unfortunately now the administration is trying to undo the tax cut. that would be very bad for living standards and blue-collar jobs. charles: to your point, we've seen resumption ever blue-collar wage hikes but they're being wiped out completely by inflation. isn't it interesting though because the animosity towards corporate america, listen, i'm frustrated with them for a whole lot of reasons but i will say this notion that somehow if you cut their taxes it doesn't impact main street, you just blew that out of the water. still there is so much resistance to it. meantime let me ask you about the misery index. it is spiking big time. wages are up. so is inflation. if there is a shell lacking in the midterms, do you think president biden will make the sort of pivot james carville
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would advice him to make? >> charles, the average hourly earnings last year were down about 2%. that is why consumer confidence is at a recessionary reading despite a low unemployment rate which is part of the misery index, inflation is high. that is causing people a lot of pain, hurting living standards for those at middle and lower end. i'm not sure president biden is going to pivot away from an anti-growth agenda because he hasn't done anything to this point to suggest he will, even assuming that the house you know, even if the democrats lose the house as history suggests it will. i'm not an optimist on that score. what i can tell you, charles, you need pro-growth policies that help lower and middle income workers. we had that under president trump. growth will solve a lot of problems. bashing business is never good, especially small business which had to comply with a lot of regulations. that is the reason why small business confidence is so low where as underpresident trump it never averaged higher than the
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four years under president trump than any other period in presidential history. it speaks to the fact we need dynamism. lower dynamic small business level. unfortunately none of the policies i see now are moving in that direction. they're moving quite the opposite. charles: squeeze a two-fer in less than a minute. all about the fed, former minneapolis fed president coke la coat today said tightening could not only bring inflation down half a percentage point but overall unemployment go five percentage points. black unemployment will go up seven percentage points. that is 17%. between that and the notion fed put us back, what is going into tomorrow's decision? >> i'm not a mind reader. you're absolutely right, under president trump black and hispanic lows. i don't want the fed to hike rates.
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the fed wouldn't hike rates, shouldn't hike rates, box themselves into a corner. that for political reasons jay powell is hawkish than he really wants to be, we'll see underlying risk into the spring. that is my biggest concern, the economy will suffer further, charles, if that happens. charles: joe, thank you so much. it was really a work of art what you guys did. we have pure organic growth, pulling ourselves up by the bootstraps, what america was all about. people said it was impossible, you proved them. thanks a lot. swift retreat, many of the doubters calling for a crypto winter. coming up i have two believers. one is a brand new convert. the other one saw the light of day from day one but is it too soon to take bitcoin as pay? why the nfl's odell beckham, jr., might be on his way to the super bowl but at this rate he might have to hitchhike to get there.
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charles: while the stock market rout is painful the move in big could it is a more painful. those who are not unconcerned they want everyone to participate, a point that the ceo of microstrategy michael saylor made clear very recently. many. take a listen. >> there is only one useful thing that any of us can do every day when we get up. one thing that matters above all, that one thing is convince someone to convert some other form of property into bitcoin. charles: my next guest had a great conversation with seay
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lore over the summer and last week has taken the bitcoin plunge. we have north mann trader found. stuart: sven hendrix. why now? >> that is good question. ironic, last year i've been warning about asset bubbles and the correlation between crypto assets and the stock market and i warned last year that you know, we were going to see the true test, when we would see liquidity coming out. just now the threat of liquidity coming out, we've seen massive pain in the stock market and in crypto as well. so you can, one could rightfully ask, what are you interested in right now? the conversations of michael saylor were very helpful. you try to educate yourself on the macro picture. certainly we have the correlations right now. i certainly can see more pain coming but i think this year is very critical to bitcoin for a couple of reasons. one is the correlation may
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actually shift because we've, in this period of you know stocks are the only alternative, and we've been rallying for basically 10 years on free money, but that jig is kind of coming to an end here and so, investors ultimately now also experiencing a lot of pain in stocks will want to seek an alternative and bitcoin actually can become such an alternative. the other issue being is regulation. ultimately regulations will prove to be extremely positive for bitcoin, all could prove short term pain as well. charles: you wrote that revolutions are rebellion against the status quo. in this case it would be the global monetary system. don't you expect though these folks put up a big fight? some people theized they would wreck everything to stop, to make sure fiat currency doesn't lose out to bitcoin and cryptocurrency? >> i totally acknowledge central banks don't want to lose control. i think the cat is out of the bag already.
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see is places like china banning it or russia. that tells you something in terms of the control aspect. bitcoin, many people claim to be freedom. it is certainly a choice to seek an alternative to imposed monetary system. yes they can try lots of things on the regularrer to cycle. once that is done, then you have clarity. that will bring a new whole group of investors in terms of institutional investors and so forth. so more money is coming to it. charles: i turned to agree with you. the excitement and curiosity over it is mind-boggling. i want to shift to the fed a moment. you posted a tweet why aggressive rate hike talk and fed dot plot are fabricated fantasy. you included a chart. everyone is on pins and need dells the next 24 hours what the fed will do. >> the fed may want to raise
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rates short term but at the end of the day it is about math. we've gone on a cycle from the '80s, to lower highs and lower highs on the fed funds rate. why? cheap money allows forever more debt creation. 70% of all historic debt in the united states has been added 14 years. $20 trillion. $7 trillion in the last three-year. it was a wall in the 2018 when the fed funds rate went to 2.25%. the system couldn't handle it. i would be surprised if they get to 1.5%. i said at beginning of this year, the easy way to deal with the inflation problem to let markets drop, not enough it cause as systemic issue. guess what? with all the jawboning, they managed to let markets drop. i guarranty you will find impact in retail sales coming months. that is what we saw in 2008. market sales dropped. retail sales dropped. less pressure on supply chains.
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inflation comes down. charles: all the major economic data out last month or so is major disappointment. sven, thank you very much, my friend. talk to you soon. >> charles, take care. charles: i want to bring in naomi brockwell. i always give you props because you were on bitcoin long before anybody i knew, period, well over a decade ago. here is the funny thing though, when bitcoin gets hammered, do you get a lot of calls from our college friends? use air quotes, you say we kind of told you so? >> my friends no better but you see a lot of people on twitter saying things like that. nouriel roubini is famous example. he has tweets saying look it crushed all the way back to 1000. you guys are wrecked. you should known better, i told you so. comes all the way back to 4,000. i told you so. you're wrecked. saying it has gone back down to $35,000 per bitcoin. you're all wrecked i told you so. no, nouriel, you didn't tell us
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so. the long-term trend has been definitely upward. the best thing we're seeing people with a moment in the sun but they missed the boat, missed one of the most interesting financial generations. charles: i find it amazing folks really well-known like that, become so fixated on the misery of others. they're rooting for something not to work out. it confuses me. i don't think it works fine, don't think it works. they get on the ellem pom, poms. maybe it's a bruised ego. superstar owed dell beckham, just signed with the rams. he decided to take his pay in bitcoin. according $750,000, right now after fact toring the move in taxes is $35,000. if they to to the super bowl, naomi, they will have to hitchhike to get there should people be taking pay in bitcoin yet? is it at that point yet? >> it is an interesting situation i'm wondering why he
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took the entire pay at the start of the year which is what you presumed by this calculation. otherwise you know why would you be signing a contract for something at a certain currency knowing that is it is incredibly volatile? why wouldn't you peg it in u.s. dollars what most people do when they accept bitcoin as their income but you know, see stories like this. it virtual, sad for him with money in sponsorships this, is part of the bitcoin story since the very beginning. its, you know, volatility is a part of this asset, very high-risk, opportunity asset. people realize that. we've always recovered from these dips, i'm absolutely betting we'll recover from this one. charles: got a minute to go. think maybe where we made the turn, 33,000 was key support point. 30,000 was really a big support point. maybe we don't get there? maybe we started turn already.
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>> your guess is as good as mine. price prediction is something people dabble in. if you look at price predictions, going to a million, going to 100 k. they didn't come through. definitely long-term bullish as i have been. definitely the trajectory comes long term, when it comes is a really tough call. charles: do you keep adding, do you keep adding to your position on dips. >> absolutely. it's a great time for people to be exploring this. look at this way, if the is fed stopping money printing anytime soon? will they stoop devaluing u.s. dollar you? can look at bitcoin going up or u.s. dollars going down. that is same thing. u.s. dollars are more and more worthless as fed prints a huge amount of money. people looking assets to park their cash. charles: they absolutely are. naomi, thank you very much. value continues to outperform
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particularly with energy leading the way as the russian ukraine situation has the world on edge but should it have your portfolio on edge? as we head into the final hour of trading i will share with you my thoughts building a nest egg is building a great big hotel. what you need to know we're looking out for the portfolio coming right up. mm. [ clicks tongue ] i don't know. i think they look good, man. mm, smooth. uh, they are a little tight. like, too tight? might just need to break 'em in a little bit. you don't want 'em too loose. for those who were born to ride there's progressive. with 24/7 roadside assistance. -okay. think i'm gonna wear these home. -excellent choice. every year we try
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♪. charles: folks, it took a decade but yeah, value is continuing the outperformance overgrowth. a lot of this in anticipation of fed tightening a lot this year. of course it has more and more investors moving away from high flying growth stocks. however value seems to me to be getting too crowded. certainly might be too expensive. joining me slatestone wealth chief market strategist kenny polcari.
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kenny, think of value, think of inexpensive, cheap, those kind of terms but a lot of these names are now trading at their own high levels whether price to earnings, price to sales levels. does that worry you at all? >> no, it doesn't. i think there is a lot of names in the value sector, right? while some names might be getting a bit overcrowded, the fact is i think it is going to be, i think it will be a rough six months, first half of the year, we've already seen, rest of six month goes way january goes will be turbulent. charles: if the rest of the year goes like this we'll be done by august, my man! we'll go hunting, fishing, we'll make some pasta. i'm hanging with you. [laughter]. >> come on over, i will be happy to cook. but listen, i think there is plenty of opportunity in the value space. you know me, i'm in the value for 2022. i would imagine if i sensed it is getting overcrowded or way overvalued, would i trim some, i
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would. i'm not anywhere near there yet. charles: yesterday the arc innovation fund had monster reversal. candlestick charts, it was a hammer. that was bad in a good way. mammoth reversals, spotify and others. just moments ago cathie wood spoke, they have a five-year horizon. they have never seen innovation on sale the way it is. she is ultraconfident it will come back. at one point you were in this. are you in it now or a buyer? >> listen i was in it. i hung on. i wanted to believe. you know i blew it out a week 1/2 ago. i think probably in the low 80s. i took a hickey on it. i hear you. i like it, i hear what she is saying. i do think, it will turn around. and i will take another look at it but i think it is way too volatile now in the markets. i think the uncertainty will cause even more downside pressure. for me, i was already losing a position, it was getting worse as the day went out. let me get out, i will chalk that one up.
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once i think it will settle down. i do believe in the disruptive state. i don't want to see that particular investment go to zero before i jump back in. charles: let me switch gears. a lot of anxiety in the air. you can feel it. president biden spoke moments ago, possibly sanctioning vladmir putin but you know, if you look historically when it comes to the big geopolitical events, unless we send troops in, they typically have a small impact on the market. tell us, handicap for us what is at stake with this russia ukraine showdown? >> so i think like you said, it creates short-term chaos, but in the long term it doesn't really do anything at all. i think over the next couple days or weeks, when you will have to pay attention to is the level of the conversation, right? how hot the discussion gets. whether or not we actually get engaging, right? we sent troops over there. that is enough to create lots of concern certainly. nato getting ready. i don't think it will end in that, right? i do think though there will be a diplomatic solution. he is trying to save face, now?
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he has done all the work. amassed troops on border. i think he will save face. how he does that, maybe invite him to solve a problem, if he does that the markets will be okay. if it turns into a battle, do i think it will create short-term chaos but in the long term investors will put it where it belongs and move on. in the short term you have to be certain, kind are wary. china, taiwan i think it is coming after the olympics. >> that is much, much, much bigger issue for a lot of reasons. >> completely. charles: hopefully we won't have to have that conversation, if we do you will be the first i talk to about it. kenny, thanks a lot, my friend. talk to you soon. >> thanks, charles. charles: folks, earnings couldn't come to the rescue, could nabe come to the rescue after the bell. we'll see. we have a lot of companies that are posting great numbers but the guidance is starting to look a little weary. we'll have microsoft on deck
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charles: it is earnings season, while initial releases have been impressive, keeping a string ever earnings growth above 20% for the fourth consecutive quarter there are cracks in facade. jim bianco said first time since mid 2020 overall guidance has turned negative this, is the last thing this market needs looking for a lifeline. joining me to discuss, mark tepper, david nelson. david, start with you. your thoughts, earnings season, it is always critical but it feels like more so now with investors grappling for straws? >> well, what you talk about the right point. guidance on the call that is lot more important than the headline print. unfortunately this earnings season that which heard pro a lot of companies, one of the things starting to hit them on
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the bottom line is input costs are going up including wages. we saw that in the banking sector. we're seeing that in other sectors as well. until we get our arms around that, better prints, better guidance, we're in a no-man's land. charles: mark, yesterday i point the out i forget where saw the work. every time in the conference call the management says, great quarter guys, that dropped 99%. no one is saying that anymore s that a sell signal? >> look it is kind of getting dicey out there. we all know about what happens in the last quarter isn't necessarily what is going to move the stock, right? a lot of it has to deal with what guidance looks like. what we have charles, the most important week of the quarter earningswise, thursday after the bell, apple reports that is the most important day of the quarter. fridays will be really good or really bad, because apple is the
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linchpin. the last man standing. very last one of big tech above its 200-day moving average. when their guide is weaker-than-expected which i unfortunately think is very possible because the supply chain issues, china's zero covid policy it could be watch out below for the tech sector. i think the selloff could accelerate. hopefully that is not the case. charles: mark ask you about microsoft after the bell, tesla on. what do you think of those? >> i think microsoft has a pretty good shot having a good quarter. when you look at microsoft, azure's growth is expected 45%. that is still going to be strong. hybrid cloud will be strong. obviously they will talk a lot about activision. i think when you look at microsoft, a good print from microsoft would likely take a lot of pressure off software stocks over all. i think they're in a pretty good position. tesla, man, i don't know what to tell but tesla. that stock has a mind of its
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own. i don't even think people care about what they say on an earning call. probably more about is elon going to ruffle some feathers. if he does, stock goes up. charles: i agree 1000%. talk about tomorrow the fmoc meeting because it is the big, big event. david, handicap for us. >> if it is put out there likely significantly out of the money. i think that the fed has religion right now and they understand they have more of a mandate than just protecting investors. right now they got to reload. to do that they're going to have to get off zero and they will have to start looking at the balance sheet. so i think they're going to do it. i don't think they will blink this time. charles: mark? >> i agree. historically speaking the fed only steps in with accommodation when the market corrects around 24%. that is 3700 on the s&p. that is a long ways away, a long way down. a lot of sleepless nights for anyone who thought valuations didn't matter.
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but they're not going to do it. they will not step in. they will not help. they do have a dual mandate. no matter what people think about the hypothetical third mandate of juicing the market. they got to take care of inflation. charles: it is just so interesting, because they have stuck with that hypothetical mandate more than anything else. got to go but mark, are you buying anything today? >> i'm always shopping, man. there is a lot of good companies where i feel like i can get some stuff for free. look at netflix. it is trading below its precovid levels. i'm interested. disney getting close to where it broke out when disney plus was announced. i'm getting interested there. teledoc looking at that one too. a lot of things where i get some of the business for free. charles: let's leave it there. two of best, guys, mark and david, mark tepper, david nelson, thank you very much. we're seeing a sea of red. also in there is always ways to make money. there are certain trends that bubble up from the bottom. certain times right in front of you. i will help explain more after
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charles: this morning after our meeting for the show i went downstairs to grab breakfast it
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was pretty late, fearing the building, three construction guys that come into the restaurant and walk over to the register and they were saying when is the pain going to stop they were clearly agitated but they were not afraid. i told them we could see a near-term bottom but volatility will be with us longer that's what my overall optimism about the market. naturally the next question was when are you buying. it was so interesting because the timing was really perfect the guy that handles my company's retirement plan has been pressuring me for several several weeks because there's too much cash in the account and he said he got a put it to work. i didn't dodge him on purpose but i wasn't in a rush to put it to work. ironically i set him a list right before i went down for breakfast and i said these are the stocks that we should
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probably buy and i want you to think about buying them around 3:00 o'clock or 330. the rationale the market will alter the fed's plans. so many great stocks happen to be on sale right now, the good to do the same. i'm really happy for anyone out there who is engaged in this market, don't give up and don't panic and never stop funding your retirement account. i learned that a long time ago for my colleague liz claman. liz: i love these anchors from other business networks who say i should get credit, i say don't panic. when should you ever panic. never. do not panic. the love that the s&p just turn positive for a second while you were talking. charles: i wanted it to happen before 3:00 o'clock. the dow was up 200 and here it comes around the edge, the s&p, here comes s&p, i wanted it to happen during my show but you get the credit now. liz: you

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