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tv   Fast Money Halftime Report  CNBC  June 14, 2022 12:00pm-1:00pm EDT

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>> now we're getting the narrative of job cuts picking up more steam headline on the wire, the compass, real estate company cutting 10% of work force through the housing slowdown faced with a situation where maybe unemployment softens in the face of ongoing rate hikes we'll find out tomorrow. meantime, the half starts. let's get to the judge >> carl, thanks so much. welcome to the halftime report scott wapner a little more than 24 hours from one of the most consequential fed decisions in decades we discuss and debate all that's at stake with the investment committee. brynn talking ton, steve weiss, and steve liesman is with us let's check the markets. we have the nasdaq positive, shy of 1 half of 1%. dow-jones is down 139, s&p in that bear market territory, 343.
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the yield on the ten year note josh brown 75 basis points. new ball game. >> do 100. >> you want them to do more. they were going to do 50 >> nonzero chance of 100 basis points think about how quickly that would shift the narrative. the fed has gone so long being surprised by inflation, having the market interpret the fed as being consistently surprised or behind the curve or however you want to phrase it. do 100 basis points. the market is pricing in roughly 10% chance of that i would bet chance is higher if they do it unanimously, it is a very big deal. it immediately shifts the narrative. okay, they're serious, looking to go faster, get ahead of this. they're not afraid of potentially causing recession if that's what it takes that restoration of credibility if you read bernanke's op-ed, the restoration of credibility
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is the only tool they have i would not be shocked part of that signaling, dropping hints to reporters maybe is an effort to surprise the market back rather than continually look surprised. >> go to the whisperer, what do you make of that, steve. 75 seems like the new kid in town what about 100 >> i don't think 100 is going to happen, but hey, i have been surprised before i think 75 now is very likely. it is a shift for the fed. the fed had been talking about 50 you remember that powell said at the last meeting that 75 was not being actively considered. well, they're trying to both get ahead, it is not really get ahead, josh, it is bring forward. slightly different symantec things but it is not, really the fed is
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not trying to catch up with the funds rate, it is trying to get the market rate. >> it is trying to catch up with treasury if i could finish the sentence the issue is they don't have to do that. the rates you see in the market now are real rates the mortgage rate is what it is. the fed doesn't have to catch up with that in any time, as long as that remains, it restrains growth what you seem to be asking for, josh, is not so much that the fed catch up, because that's not all that relevant. you want to know whether or not the fed needs to push rates higher than they are now do you want a 6% funds rate, how the fed would engineer that. do you want a ten year that's at 4%, how the fed might engineer
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that to be clear, you look at the outlook for rates, they have dramatically shifted up the outlook for fed funds rate itself they're looking for 4% or 4.08% rate for may of 2023 i can tell you that number was 3% for august of 2023 back a month ago. by the way, on 5-13, i was checking when i talked about the possibility of 4 or 5% funds rate. >> let me ask you this, steve. how people should think about this pivot it is a pivot. is the fed being data dependent with the pivot because cpi was worse than expected, they pivot because they're data dependent, now do 75 instead of 50? are they panicking because they have no control over inflation at this point. and they know it and the bond market is screaming to get more
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aggressive and maybe it is all of the above. you tell me. or do they continue to misread inflation so badly that this is the product of that and i ask you that in the context of i don't know, in the last ten days brainard, mester, bostic, others, said 50. they keep being surprised by the inflation reads and now they're being forced to react. what are we supposed to as investors make of it >> let me go back quickly to my comment on josh which i think maybe i was a little uncharitable one thing that has to happen, the fed has to catch up in terms of credibility i think that's what you're getting at credibility is not necessarily in the rate as in the approach to inflation and willingness to do what needs to be done
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and i think that's part of the pivot where it may be, remember, never forget, when tom hanks said in apollo 13 we just lost the moon when he got instructions from houston. we may have lost the soft landing, one way to say it powell has come to the conclusion he needs to sacrifice soft landing in return for credibility of the fed fighting inflation. and that is something that will help i'm not sure the market thinks the fed is not credible here but this is certainly something if it does 75 tomorrow, guys, one full screen to show you, i need to explain, the outlook for rate hikes the way the market is priced the rest of the year. not that one, the other one. 2 75s for june and july, and 2 50s. that's adding 275 basis points i think that's credible, may or
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may not be the catch up josh is looking for in recouping inflation credibility. >> why nibble if that's where we're going. if we're going to eat it, why nibble >> because, there's a reason you need treasury market to function and i don't know, josh, maybe it functions just fine with those bigger and better and badder rate hikes but i think you have to have some concern that the risk free most important market in the world clears with much stronger rate hikes than that. >> and the moves yesterday in the treasury market after the journal headline were just astonishing to see moves that are just not supposed to happen. i was going to say and it is true, you don't see every day, it is not supposed to happen that way that's important to keep your eye on, too. steve weiss, 75 basis points, 2:00 tomorrow. how does the market react?
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>> look, i don't know how the market reacts tomorrow maybe it is a relief rally on the news you're going to sell it. we're in bear market you had free money for almost 15 years. rates peaked in that period of time at 2% so the federal reserve rate. so free money. guess what, you had negative interest rates most of the world. that doesn't come off in six months or in a year. what i just don't understand is why the bulls are so still bulled up because if you're going to be early, you're still going to be wrong. i would rather show up for dinner reservation and miss the appetizer than show up a week ahead of time and wait outside the restaurant that's what may sound ridiculous, but that's what you're doing you have a lot of excesses that have to come off you have no capitulation so far. whether it is -- this is a great conversation you're having, but means nothing in terms of what
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the investment outlook is. if the fed goes 100 basis points, who cares. i am not looking at their credibility. i am looking at the impact of global tightening on the global economy and specifically in the u.s. and inflation yes, inflation will come down to the extent the fed can control it called elements -- that dye is cast. >> you must be 100% in cash, none of it matters. >> well, actually, scott, i don't know if that's a serious question or not. >> it is a serious question. i don't know why you are getting worked up about it what's the advice for the investor watching the conversation. >> i am not worked up about it at all. >> if you think the conversation about what the fed does is irrelevant to the market, what is relevant? are you all in cash? >> i'm not saying what the fed does is irrelevant to the market
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overall. i'm saying what the fed does tomorrow is irrelevant to my strategy to how i am looking at the market of course every move the fed makes is relevant, when they're tightening by the same token, relevant when they're easing when the print came out friday morning, i immediately got net short. futures, dow futures down 200 as a proxy, i pressed short, pressed it again covered most of the short going into the close, but kept short net short of the weekend i am net short again because if the market trades up, great, so what it will come back down you'll see earnings really collapse that's the bottom line anybody can talk about what they want in terms of what the pe is today. it doesn't matter because you don't know the math and what the inputs are you can see corporations continue to cut, see buy backs dry up, more layoffs it is not a great situation.
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>> you could go down 40% from the peak in january in the s&p does that make sense trying to get a gauge where you think it is going. >> yes >> not trying to pick an argument i want your view where it is going. >> no, no, good questions. i think it is going lower. i don't think valuations matter at this point. i don't think fundamentals matter at this point all that matters is you have tightening credit cycle and you're going to see excesses come out everybody has gotten long. bitcoin. when bitcoin trades zero, i will start investing in the market. that's a complete fraud in my view i have been consistent on that, still going to be consistent on it there's no value historic value, you tweeted about it where is the historic value. it is nothing. it is purely a sign of excesses in the economy and free cash where people didn't know what to do with it
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when that happens -- it is going down >> go ahead, steve >> small point, this is the first time when i see the funds rate, guys, the first chart you put up before, when i see the funds rate priced 4%, it is the first time i have seen the market be realistic about a potential moderate worst case scenario here. so i don't know how much stocks incorporated that. really stocks until this point were trading on a pipe dream it is kind of in the journal editorial, couple hikes, we're done with inflation and we're off to the races i don't know if maybe it is 40%, but i will say at this point if what i am seeing on the screen priced in the futures market is priced in the stock market, then we have come a long way to accepting some of the realities that may be coming our way from the federal reserve in a way we had not prior to these numbers
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>> but it is not it is not. >> the market, steve, to some respects >> i don't call bottoms. i just want to point that out. this priced in over here and if it is priced in over there, we may have digested an awful lot of news coming our way from the fed. >> no doubt. >> steve,what i say to counter that, sorry, scott >> okay. bryn the fed is a powerful being. when it talks, bernanke said 90% of making fed policy is through talking. the market listens the market has been listening to softish landing, trying to give powell the benefit of the doubt. wanting to believe that's the key, wanting to believe they could pull this off. maybe what steve is suggesting is that the first real admission
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by the market that it probably can't. >> i think steve was spot on when he said it was about credibility of the fed and the fed needing to gain credibility from the market. i think for investors out there, the stock market, the s&p since january 3rd lost over $9 trillion what the fed has barely started qt, and what have we had, two rate hikes bernanke was spot on the market played out this book that the fed is behind i think investors need to pay attention to the bond market the fed has never owned 30% of the mortgage backed security market you're having massive spreads, mortgage rates over 6% you have really bad things happening and you have 4 and 5 standard deviation events in the
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two year and ten year. so i think that the fed, i would say the fed will continue to be judicious. the fed will continue to raise rates until something breaks in the bond market. i think when you see already with mortgages that they own 30%. i would call them the unnatural buyer. remember in 2020 when softbank did an experiment, they were doing all these options, and options market was going crazy, no one knew what was happening that happened in the mortgage market, now the fed stepped back i think equities will be priced off the bond market. you don't want the bond market to have 4 and 5 standard deviation events as an investor, please watch that closely. >> jim lebenthal brings me to you >> i got your back >> i guess i would say to you in light of everything we see with
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our own eyes, i don't understand how you can have a die metrically different view how the world looks. >> i think you made the point. >> what's your answer? >> wait and make sure you're done >> go ahead. >> made him wait 15, 16 minutes. still happens. >> we are dealing with the math of the pandemic. and there's a short term aftermath and long term aftermath. the short term aftermath is what we are dealing with now, supply chains broke down, there was too much stimulus given which was the right mistake to make, but we're dealing with it. there's a short term issue to be dealt with by the end of this year, fed is likely to have done heavy lifting. i hope they go 100 basis points tomorrow if they don't, go 75, 75, another 50, and get it done. long term aftermath which, scott, is the answer to the
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question you keep asking me, i'm trying to make the point clear, the long term aftermath is because of china covid shutdowns, because of russian belligerence we and it is not just the u.s., europe as well, are no longer in globalization mode i don't care about moral or intellectual reasons, it is a factual matter that supply chains are being rebuilt around the world. when you get into 2023 and beyond, 2024 and 25, those forces will be very powerful that's why even though i took down my estimates for this year's earnings. >> barely. >> slow down, let me finish. >> i was making sure there's context to what you're saying. >> don't miss the point. i am not taking down 2023 earnings i don't think we should take down 2023 earnings if i saw intel delay plans to ke that semiconductoant in ohio, ford or gm pulling back on
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capex which they are not, i might change my tune long term aftermath of the pandemic in which supply chains will be reoriented will be a powerful economic force and that's why i am bullish. we have to get through this. obviously at this point in time it is easy to say i was surprised by cpi, surprised by how low this went, so were a lot of people. i am not changing the tune i don't see the evidence that supply chains stay in russia, are going to stay in china i don't see evidence of that >> you made repeatedly the argument, i keep asking you these questions because i have no choice. the market keeps going in a direction that's further and further away from you. it leads me back to you as a result of that you haven't taken earnings down. your price target on the s&p is still 48 -- >> 48.96
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possible to say it -- the facts speak for themselves, i am being clear. yes, we are going through a short term issue when you get to 2023 and forces of supply chain, think about what goes on. >> isn't it short term if the fed can pull it off? it feels like it's -- like steve was saying, it is a realization that maybe the fed can't pull it off. the market is trying to come to grips with that, maybe it is finally having that conversation with itself. >> scott, i am not saying i know the future with 100%. >> obviously nor do i. >> i am simply saying what my thesis or belief is. i can't see it is going to happen things could get worse in a lot of different areas to the point of what i am looking at, that's your question, why am i where i am, what am i looking at, it is factories being built not just all over the u.s., it is going on in europe, too. europe is seeing the same thing. building ev battery plants,
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semiconductor plants by the way, department of defense in the last couple of days announced they'll do a new mine, the australian company, doing it in the u.s., the name i think is lenus, may have the name wrong, we are done getting rare earth from china. i have a deal with derigs. >> if you don't like to have the conversation, that's not my problem. i don't understand what the issue. you say how bullish you are amid signs that suggest that you shouldn't be and i keep asking you about it because each day things get in kremtally different. >> at the end of the day, i am in stocks with real cash flows, real earnings. i understand valuations. i am not scared of qualcomm being where it is or cleveland cliffs being where it is i do my homework, i know where fixed contracts are and where cash flows are coming from
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they have enough cash to buy back shares at these prices. i am not thrown by the short term i'm not. >> let's take a quick break. we will continue this conversation on the other side liesman, i want you to stay. if you have to bounce, i appreciate you being here. if not, stick. we'll be right back.
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we are back with the gang, including steve liesman. he is down in d.c. ahead of the big decision and press conference tomorrow. maybe you're not in d.c., whatever, you're going there that's how we do it. yardeni said 75, 75, 75. that's what he thinks will happen cramer says 75 and dump bonds at 2 times the current amount what is the likelihood we get 75 and more runoff. that's a tool he can use without going to 100 >> yeah. i could take him at his word he has shown he will change what hewants to do. powell doesn't want to adjust the runoff, not make it flexible part of policy outlook
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he has lingering concerns or post traumatic runoff disorder from last time he tried it doesn't want another seizure of the bond market. they put in a pretty aggressive runoff schedule. maybe they decide to do it faster i know there's concern i would think you're likely to get bigger rate hikes than you get adjustment to the qt not saying that's not a smart move to do again, i have concerns always, the thing i hate doing, i was in a panel the other day, an informational meeting of guys about some of the inner workings of the financial system and i happened to remark, i said guys, if i'm talking about this on tv, we're all in big trouble i do not want to be in the position of talking generalized
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collateral repo rate, auction rate securities and that fun stuff. and powell doesn't want that to be an issue either >> bryn, let me ask you a question this way. it is easy to pick at jim's perspective, say well, how can that be right. he is somewhat on an island in a sea of negativity. and that's fine. what if he's right what if everything is too negative what if the stock market is going to come back in the second half, what if fund strat's mark newton is right. what if stocks get all their losses back and finish flat for the year and everything jim said is right there's so much negativity around that it is easy to be colored by it. >> i think as investors when you learn how to drive, we look in front of us. look right in front of us. as you get better at driving,
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you look further on the horizon line investing is no different. if you're investing right now on the present, i feel confident we're going to get it wrong just looking at today and extrapolating that as the future you have to go forward and have a lens that's different than today. i think that we're somewhat focused on the wrong things in terms of the fed first of all, the mortgage backed security is so important to the economy it is already in shambles. i don't think the fed sold a dollar of mortgages. so to increase the runoff of treasuries and mortgages, i feel confident something would break. then secondarily, we are in midterm cycle, election year so many things happen. if you look at all the history of data going back to the '50s, second year is the worst you have a year after that are some of the best years finally this is looking out.
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i think as many rate hikes as we get within the following 12 months, we will take most of them back. either we will be in recession or the economy is slowing. then finally is that currently, no one talks about this, if we got to a fed fund of 4 and that was across the treasury curve and kept our 21 trillion gdp and we matured all the debt and recycled it, actually interest expense would be more than national defense and up there with social security that's not going to happen i think i see what jim is saying i'm more open to say six months from now will be very different. i think that's where we have to listen to jim and tom and mark newton and kol on vick and say there's a scenario that doesn't look like today. >> josh, oracle didn't say the world is ending. there are companies reporting earnings that have not been bad.
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their outlooks haven't been bad. maybe jim is right >> today happens to be one of the days damage is substantial share prices go up and stay up nice to see. it is rare this year i am in fedex. talk about that later. good news for stock. miraculously up at 12:30 that's not consistent with what we have seen this year we have seen consistently companies have quote, unquote good earnings, guide higher, and have their share of prices sell off. that's the preement feature of the stock market why is that? we have to do more work to the down side and multiple just to accommodate normalized interest rate policy. we started the year 21 and a halfish, forward earnings per share multiple we lost about a quarter of that. right now 15 and a half. i don't know where it bottoms
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out. the point that steve weiss made early in the show is important we don't know. you could say they're delusional or they don't want to move that quickly, the e is rising in analyst estimates the second half of this year, and i feel that's going to be the fal crumb that decides if jim lebenthal looks smart or steve weiss looks smart in december. the jury is still out. nobody can definitively tell you if profit margins will hold up, if there's enough revenue growth to support earnings growth the street thinks we'll have 8 or 9% earnings growth. that may turn out to be a massive pipe dream given how high oil prices are and how tight the labor market is. maybe it isn't and unfortunately i can't skip to the end and give you that answer today. we are 15% below the 200 day moving average on the s&p.
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historically volatility is higher on a daily basis, so long as we are below there. while we wait for the answer, do earnings fall apart or not, obviously the smart move is maybe risk missing the appetizer to steve's point, not being the first person at the table to show up. >> steve liesman, i have to give you the last word. i thought the last fed meeting was important. man, this has taken on so much more meaning given the read on cpi and what we think may happen tomorrow, which is change and pivot as we said >> yeah. not even for the 75 which will be historic an important, it is guidance is there another 75 in the works and how high are we going. will powell be able to give guidance down the road, is 4% a good number, 5% a possibility. we are i think in a zone now where it is meeting to meeting
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maybe week to week this week we learned it is even day to day when it comes to setting of fed policy. the question is does powell have a way of stepping back, putting guardrails on the process, giving the market certainty upon which to price right now, you come in the bond market and you have to expect to lose money that day. that is not a recipe for liquid markets or for calm and recipe for some panic, you have to be careful ratcheting up. >> your last question moved the market the answer did no pressure this time. see you tomorrow steve liesman joining us whether he is in d.c. or not, i promise you he will be thanks, steve. i appreciate your time. fedex boosts quarterly dividend, reaches a deal with activists. josh bro renwnectly bought it. we get his take next back after this. wow, we're crunching tons of polygons here! what's going on? where's regina?
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new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. good day i am tyler mathisen. here's the cnbc news update. authorities say 31 members of the white supremacist gripe arrested in idaho over the weekend are now out on bail. the dozens of men were charged
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with conspiracy to riot at an lbgtq pride event before they were taken into custody. the members will make their initial court appearances over the coming weeks brittney griner wnba team is meeting with state department officials to discuss her detention in russia. the meeting involves officials from a specialized office that advocates for hostages and wrongly detained americans the biden administration previously said they're working to bring griner home from russia after she was deined at a russian airport for possessing cannabis oil. disney pixar upcoming lightyear movie won't be shown in 14 middle eastern and asian countries. disney declined to make cuts to the film that depicts a same sex couple that share a brief kiss which prompted several countries to ban the film. lightyear faces uncertain future in china, the world's largest movie market an official decision hasn't been
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made in china. >> appreciate that fedex on pace for the best day since july 14 of 1993. they boosted quarterly dividend by more than 50%, and reached a deal with activist investor de shaw you may recall josh brown buying it last week what do you make of this nice timing. >> i thought you were doing sound over tape. >> the clip. >> i bought this as a trade, not an investment. could turn into one. my plan is to stay with it, got confirmation that 195, 197ish, still a lot of support down there. that's roughly the level the stock bounced on on friday, but i am going to let it play out. i think what's interesting about fedex, you have the annual investor meeting day restarting the first time in a decade later this month could have some other catalysts going forward.
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if i roll my stocks up, let's say hypothetically we get to a point this is challenging the real resistance, 240ish, if i can ride to that level from risk reward standpoint, it will have been a successful trade. see what happens from here i'm not staying long. the crypto collapse. price plunges, down grades, layoffs. we talk about that next. (♪ ♪) how do we demonstrate our unmovable strength? (eagle call) nope. how do we show that we'll stand tall through the storms? nah. (thunder) how do we make our clients feel secure and- ugh... not lions. (lion rumbles) we do it with our people. people who've been looking after people for over 170 years.
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two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. all right. we need to talk about crypto bitcoin falling below 21,000 earlier today, lowest level since december of 2020 looking at coinbase, down 1.3% 51.35. your view. >> this is one of the silver lining things. losing the source of income, losing your job is traumatic if it were to happen, this is probably the best environment from a labor force perspective that you could possibly ask for. you would probably not have trouble finding something else probably more productive to do nothing is worse than being in a firm where you work for, quote, unquote, equity compensation and stock options are so underwater
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that you have no chance of realizing that value understand this is a stock down 80% from its high. if you work there, you are probably buried on options anyway maybe it is the right thing for the company, they want to survive the crypto winter. i don't know people are so dramatic, why can't it be a bear market crypto winter has returned you don't want to be there, do something completely different build hydroelectric dams in asia or something like that but if you are still there and there as an investor, you're going to have to understand something, there are parts of this ecosystem that are not ever coming back. it is not cyclical in the way auto making is we never had a recession with crypto assets at the level that they're at now we really don't know if there's any use for most of the
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activity they're going to have 5,000 employees in total i don't know what 5,000 people are doing there, i'm just saying it could be a long time before we see from investing standpoint a real reason to be in these names. i am watching. none of it makes me feel like now is the moment to jump back in. >> bryn, we had a conversation yesterday in overtime about this for those that didn't hear it, i want to get your view. i would love for you to react to what josh said you own coinbase you told me yesterday you weren't selling any of it. i wonder if your view evolved in 24 hours, if it has, fine, if it hasn't, fine too i would love to hear from you again. >> sure. i think that yesterday and i still think this is true, i still think you have plumbing issues in the market you can't put your money, bitcoin if you want to stake it somewhere and then you wake up, you can't withdraw your money.
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that doesn't work. that has to clear itself people need to have confidence in where they're storing money they definitely have it at coinbase they have 6 billion in cash and need to keep it. and that's the note from brian armstrong this morning, they just spent all this money hiring these people so a huge amount of the 5,000 joshua citing were just hired. that's never great for a company to spend all of this money hiring and now you're going to let them all go, but it is a necessity because they cannot be spending the 6 billion in cash on employees, to josh's point, that aren't doing anything i think it is a bear market. the crypto market does not have the federal reserve to save them so the crypto market will have to save itself as a position that's sized right, you want to own this long term, which i do, but i do not want to adhered when i have
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questions about the plumbing >> i agree >> still saying wait and see. >> i agree if you hold crypto, coinbase is among the safer, my guess, who knows what happens tomorrow, i agree there's a lot of confidence in the crypto market in coinbase that's not the issue they don't really get paid for people holding crypto there. they need activity they need trading, new money to come into the market, people to be excited about projects because all of the bid is on spreads and brokerage activity if you look for that as investment play, look at cme that's where the action is cme is the company that is trading assets that people want. inflation related assets interest rate betting markets, commodity contracts. like if that's the kind of bet you want to make, make it in a bull market, commodities and inflation and interest rate bets
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is the bull market, not crypto >> going to take another break it has been one of the hottest trades of the year, one of the committee members is making a move all june we celebrate pride month. rick welch, golden state warriors former president. >> june for the lbgtq community is a time to reflect on the journey that we've been on take stock of where we are now and think about the future i am proud of people out there telling their stories in all walks of life to help people understand that we're part of the fabric of this country we've been customers for years. (dad brown) i thought new phones were for new customers? we got iphone 13s, too. switched to verizon two minutes ago. (mom brown) ours were busted and we still got a shiny new one. (boy brown) check it out! (dad allen) so, wait. everybody gets the same great deal? (mom allen) i think that's the point. (vo) now everyone can get a new iphone 13 on us on america's most reliable 5g network. (allen kid) can i have a phone?
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energy stocks getting a bit
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of a bounce after turning in the worst day since early may. the sector's down nearly 9% in less than a week i can see you retossed exposure to what has been, i think, your favorite sector. that's a statement to me why did you do it? >> we still love the space and have exposure. big exposure in the private markets and some in public markets. when you have an xle year to date is up 50% while the s&p is negative 20 for the qs we wanted to take profits on a security that's done wonderfully for us if we invested in it. get powder dry i think there's going to be tremendous opportunities in other asset classes. this is about trimming some of our energyexposure and xle's done so well but the dividend is under 3% i still like some of the the
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individual names like devyn or viper energy or black stone. bhp that had dividends of eight, nine or more 10% it was pure profit taking. we were early to this trade. and every day i feel like when i watched the show, everybody's bullish on energy. one of the ways we discuss public profit in the market. >> it's in your backyard you deserve credit i haven't heard much from you today a. and i think that is a statement of the fact that you're just not doing that much these days in the markets. and you've taken down your exposure so dramatically, that in the conversations we've been having, it just hasn't given opportunity to get to you. but energy is not a space you have a lot of exposure either.
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perhaps you wish you did relative to other places you decided to remain on the sidelines or in cash >> i think it's true the only thing i do enoin the space is ovv come down a little from the highs. although, given what ren says and what i've been thinking, i'm thinking of doing that i've been active i sold the rest of apple and microsoft and the remainder of google unfortunately, despite my very bearish view coming into the year, is that i still have losses so, it was good opportunity to take the gains i had in those stocks against some losses not all of them. but this is a great opportunity to wipe the slate clean in the market and decide where you want to go. so, i want to have all that drive powder so i can then go into the market when i thing the
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market has a reached the bottom, which i don't believe we're close to it gives me -- essentially it removes any bias i have to names in my portfolio and allows me even set and decide where i want to go where the market is concerns >> you've been on the right side since the early beginning. one to grow as negative as you did. we'll get steve's final trade as well as everybody else heres a a tip for your money, your future consider boosting your short-term savings with i bonds. the rate on i-bonds rises and falls with the consumer price index. right now it's 9.62% for six months you can purchase up to $10,000 directly fromthe government at treasury
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three hours from now i hope you'll join me in overtime we got others joining us too cannot wait for that and how about tomorrow jeffrey gunnedlach, once again on fed-decision day. can't wait for that and kwl see you unthree hours. final trades >> uranium i'm already in the trade
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i'm going to put the options after-market you buy the uranianium and on a call for about five months >> thank you steve weisz. >> scott, i just can't change my act. i'm still staying in cash. >> i knew where hath was going, i guess. i had to ask anyway. all right, steve >> predictableable >> that's all right. as long as you're on the right side of the market, predictable is okay. >> union pacific supply chain showing a lot of construction in the last few years. that's a lot of material that has to be transported in bulk in a aggregate and railways are the way to do it >> wale see what happens i'm staying long >> and did you see the positive note from adam jonas on ford, mgm?
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that's how we do it. and we all saw the a-block seriously, we're running outet of time. basically his best ev play was general motors and ford. >> just to sum it up, it was about cash flow. gm and ford need to start buying back shares. cash flow. they need to buy back shares >> both were up higher earlier thanks so much for joining us. "the exchange" is now. thank you, scott a and welcome, everybody one day and one hour away. will it be 50 or 75 basis points what does the market want? we'll try to answer all these questions. as the price of oil keeps marching higher. $123 a barrel. how much higher can it go e? 150? 200. plus, the nasdaq is down 33% from its


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