tv Making Money With Charles Payne FOX Business November 13, 2019 2:00pm-3:00pm EST
benefit scientists in brazil, found listening to her music can reduce stress to keep people's heart healthy. i've been telling you this for years. it is up to you. rumors the chinese may not commit to foreign purchases is hurting the dow. we'll see. to charles payne. charles: we will see. thank you very much, neil. fast nating information every time you hand it off. neil: anything i can do. charles: i'm charles payne. this is "making money." indices returning to their winning ways. you know what? a calm, cool collected jay powell reassuring investors as he testified before congress, giving a positive outlook mostly on the u.s. economy ahead of next month's rate decision. take a listen. >> looking ahead my colleagues and i see a sustained expansion of economic activity. charles: americans getting first chance to hear from impeachment withins in the hearing against
president trump. we have live too capitol hill on the breaking stories and all-star panel. all that and much more on "making money". [. charles: markets opened much lower. they began to slowly climb higher after fed chair jerome powell testified the federal reserve optimistic about the u.s. economy. the fed likely keeping interest rates unchanged this coming months. the dow coming down moments ago, neil just mentioned this, on reports china talks hit a snag how large those foreign purchases will be. i want to go to edward lawrence. he is on capitol hill. with more on powell's testimony. edward? reporter: charles, federal reserve chairman jerome powell says monetary policy is in good place. he signaled there would not be a rate cut in december unless data comes in weaker than they thought. there were a lot of questions from representatives on the committee, about the federal funds rate if there is enough
room to handle next downturn or recession. historically they need five point to handle a recession. listen to the answer. >> the current fed funds rate is mid 1.5s. we'll well short of the 1 1/2%. it's a fact around the united states, around the world, central banks will have less room to cut in the new normal of lower rates and lower inflation. reporter: the federal reserve chairman painted a rosy picture of the economy going forward. he said wages are rising. he said there may be more room for the unemployment rate to drop even further because of low inflation. powell testified that he is watching some headwinds, specifically the global slow-down, and trade uncertainty out there. he says in part the tray issues caused manufacturing to falter and business investment to fall off. >> i think it has been a real distraction for management. i think it weighed on businesses willingness and ability to you know, to invest.
our response is not give advice on trade policy but to react to whatever it is either helping or hurting our ability to achieve our mandated goals. reporter: powell is concerned about the amount of debt businesses are racking up. also the amount of debt that congress has, the federal government has. he says the budget is unsustainable at this point. he worries step further, worries of the unsustainable path of the budget would hurt congress if they tried to do fiscal stimulus in the next recession. so he says that congress needs to get a handle on the budget going forward, to get it back into a sustainable path. he is not talking about reducing the budget. getting economy growing faster than the debt. back to you. charles: gave members something to think about. edward thank you very much. we have dan suzuki and kaltbaum capital management president gary kaltbaum. let me start with you. i thought it was interesting, when a question was asked of jay
powell he went back to his note. we saw him do it in the q&a session after an fomc meeting, read once again without a doubt they will watch the economy and that they will be data dependent and they reminded everyone is not on a preset policy. to me that was music to wall street's ears? >> i think what is music to wall street's ears, they just lowered rates three times. i wish i was doing the questioning of the gentleman because he is now adding more liquidity to the system than ben bernanke did when we had 9% unemployment and we were in financial meltdown and markets love that. three weeks ago i saw this. that is when i said i felt we'll have another leg up because of it. looks like away we go notwithstanding something extraneous. markets love easier money and you're getting it here. you're definitely getting it around the globe as negative rates get even more negative.
europe who swore they would never print money again, started up a new one also. away we go. we'll see how far the market takes us. charles: dan, what are your thoughts what jay powell said today? >> i don't think we got much meaningful from powell. i think for the time-being powell is kind of on the sidelines. he played a hard forensic game, played a lot of minutes, if you look what is priced if in for the fed next year. there is basically only one cut priced in next year. it is pretty hard for him to disappoint. charles: he really went out of his way to be very measured today. i think that considering going back to october third last year when he made a big mistake saying, suggesting they didn't know how much they would raise rates. to that december 19th rate hike. he has made a dramatic change since then to maybe present the sort of notion, hey, we're going to let the markets tell us what
he used the word material. unless a material reassessment of outlook. to gary's point, wall street sees that accommodative. >> this is nothing new. anybody surprised by him sticking to the script saying we're going to be data dependent hasn't listened to powell the last couple meetings. he has been saying this for a while. we're comfortable where we are. he is saying the fed is in a good place. if the data gets a lot worse, we'll act to support. we'll not think about raising rates until we see signs inflation is overshooting our target. what that means we're on hold until you see meaningful changes. charles: irony it might be disinflation, right? consumer prices, headline, biggest jump, most in seven months, the core inflation number seems problematic and well below the fed's target rate. one of the reasons in the statement today jay powell said rate cuts are still on the table. i want to know are we
underestimates disinflation or deflation? gary, last month prices of tv's went down 1 1/2%. apparel down 1.8%. women's suits down 5.7%. footwear down, dishes down, major appliances downs floor coverings down 4.3%. new vehicles down .2 percent. most are supposed to be a lot higher. everything on that list, why are prices going down and should the fed act? >> have you seen expresso prices at starbucks, charles? come on. charles: [laughter]. that is for you fancy guys. i make my own brew. >> there is definitely some deflation out there but there is some inflation i can promise you that. i pay the bills, but for me, watch the bond market. if we ever have real bad inflation, the bond market will know it, interest rates will spike regardless of the central bank. but yeah, it is something to worry about.
if i see the 10-year below one, that will be saying something about economic growth and potential for deflation. charles: right. >> i got news for you, the worst thing possible is out of control deflation. that is when all heck breaks loose. charles: that's true. >> i don't see that just yet. charles: dan, final word and thoughts on that? >> i named a awful lot of stuff coming in negative, if you look median price, basket of all the goods, things that people buy, pick random thing that is running 3%. that is at a cycle high. charles: it is interesting, these are commodities, things we import. i know for instance, recreation had the biggest spike in 20 years, right? we're having fun. costing us a lot of money, eating out, all those kind of things. i find it interesting, these items were supposed to really go up. i think powell is a lot more concerned about disinflation and deflation that he lets on. we'll see. >> the problem the market was pricing 1.5% inflation for next 10 years. it has kind of gone up recently but if you're telling -- to me that tells me that the market
says the fed is going to fail. not only do they say 2% is their target, they said they want to overshoot that target. that is the disconnect where expectations are priced into market where actual inflation will be. charles: that is scary, the fed failing yet again. dan, gary, wish we had more time. you two are the best. catch gary on 5:00 p.m. eastern on "bulls & bears" here on fox business. "fox business alert" for you, disney plus they hit it out of the park. 10 million sign-ups in the first day of launch, far exceeding expectations. disney didn't break down where subscriptions came from but analysts predicted it would take disney a year what they achieved in 24 hours. it's a major achievement. they have a ways to go to catch netflix at 158 million subscribers. disney helping the market today. day one of impeachment hearings. ambassador william taylor, deputy assistant secretary of state george kent testifying to the house intelligence. after opening statements
democrats and republicans kicked off the hearings with 45 minutes of questions each. hillary vaughn on capitol hill. she joins us with the very latest. reporter: a lot of heat on bill taylor from both democrats and republicans trying to get more information from taylor how he knows the information that he is presenting before this committee. he says it was very clear there was a, there was a clear understanding that military aid was being stalled because of two things, military aid was on hold unless ukrainian government publicly opened an investigation into burisma and hunter biden. and so, democrats are getting more information from him asking, you know, essentially where he got this information from? taylor is detailing a lot of these conversations from his conversations with the e.u. ambassador gordon sondland. >> this was a cell phone i take it? >> it was a cell phone.
>> president must have been speaking loud enough for your staff member to be able to over hear this? >> it was. >> and, what your staff member could overhear was president trump asking ambassador son -- sondland about both the investigations. >> that's correct. >> when staffer asked president trump thought about ukraine, that president trump cared more about investigations into biden? >> an burisma,. reporter: he was brought in specifically for this hearing committee today, jim jordan challenged taylor how he knew what he knew and backs this up. we'll hear from sondland next week. he will get a chance to back up what taylor says he says that sondland said to this committee, or he has a chance to refute it but jordan told taylor today from his standpoint, what taylor
says happened did not end up happening, is not backed up by sondland's testimony. so we'll hear a lot more of that later next week. charles? charles: hillary, thank you very much. i want to bring in fox news contributor deneen borelli and dnc spokesman jose moreno. let me begin with you. the market ignored this whole thing. public opinion has begun to wane on this. did the first day go as you anticipated? >> absolutely. we continue to learn new information as the hearings become public. it is important for the american people to have the transparency to really understand what happened on this phone call. you know, we've been going at this for a while but i think what we learned in the last month alone, the transcripts and everything else in between, this has become clear -- i want to say something loud and clear. this is not about damaging president trump. this is about protecting our
democracy. this should not be a democratic or republican issue. the american people should want to know the truth and they do. as the days go on, more and more people, more americans across the country understand that democrats in the majority are doing the right thing. charles: well, meantime president trump was asked about this today. i want you guys to take a listen what he is thinking so far? >> i did not watch it. i'm too busy to watch it. it's a witch-hunt. it's a hoax. i'm too busy to watch it. i'm sure i will get a report. i have not been briefed no. there is nothing there. i see they're using lawyers that are television lawyers. they took some guys off television, you know. i'm not surprised to see it because schiff can't do his own questions. charles: deneen that is not a surprising answer from president trump but jose talked about democracy and political parties. in the past these sort of impeachment things have had bipartisan support. right now this strictly a democratic endeavor that follows
many other democratic endeavors feel like the aim is somehow get president trump out of office. >> it is another circus just like the kavanaugh hearings. let me remind viewers, charles, the democrats vowed if they took control of the house, they were going to do anything they could to impeach president trump. the facts don't matter. evidence doesn't matter. there was no proof that the president did anything wrong but you have democrats going all-in to do anything to discredit this president and especially to get him out of the white house. do nothing democrats, they're doing nothing for their constituent. they're doing nothing for the country. all they want to do is try to impeach the president. charles: jose are you concerned though, if when all said and done there is no real smoking gun? certainly feels dead on arrival with respect to the idea that whatever we would ever see impeachment in the senate anyway, that it could backfire in the court of public opinion? >> i don't think so. i think we're on the right side
of history. whichever way the evidence leads us, we feel that we're doing the right thing. that we're defending democracy. we're showing the american people that at least democrats in the house understand that no one is above the law. president trump is certainly not above the law. republicans unfortunately, i don't want to, understand how they say the evidence is not clear, there is a phone call, the transcript. charles: we saw the transcripts. so we'll see where it goes from here. sorry to interrupt, we're coming up against a hard break. deneen, jose, i'm sure we hit the topic again. we'll continue to monitor impeachment hearings throughout the hour. we'll bring any headlines that could move these markets. president trump and turkish president erdogan meeting with senators at the white house. this is an hour after the two leaders joint press conference. we'll preview that event. supreme court leaning towards
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charles: supreme court signaling it may let president trump, administration shut down the obama era program temporarily, granting deportation protection to 700,000 americans known as dreamers. now these dreamers were brought into the country illegally as children. since then they were allowed to stay, work, go to school, go to work as long as they met certain requirements. the white house is seeking to end the deferred action on childhood arrivals, known as daca. that it is unconstitutional because it skirted around congress. i want to break down the
economic impact what it could mean. university of maryland economist peter morici. we're talking about a lot of people, almost 400,000 of them gainfully employed. they add billions and billions of dollars to the gdp and the federal covers. what could it mean potentially if they were deported? >> i don't think they will be deported but if they were were, that would be a negative. 400,000 people is a big negative on the labor force. that is notable effect on the economy. i think however in the end that the supreme court rules the president can end it, he has the bargaining chip he was using before the lower court stopped him from ending it, push the democrats on meaningful immigration reform. narrow family reunification criteria, you can't bring in your third cousin twice removed, also move away from the lottery. not end either of those. narrow them to move towards more skills based immigration within the same quota. let us bring in more technicians
and engineers, people that would help the economy grow, and grow more rapidly. i think that is where we're headed. i think it could be very healthy. but remember, all of this is going to start to matriculate and coalesce and so forth in the summer as we move into the presidential campaign. charles: right. well, president trump has already said, even if he wins this decision, it is not his intention to deport anyone. in fact, he made some pretty, what people thought were pretty generous offers to the democratic party already to try to resolve this issue. an issue, by the way, many democrats would like to see resolved particularly those of hispanic descent. i can remember one from texas saying he thought the trump offer was phenomenal. so with immigration in general being debated highly, how many immigrants do we need to keep the economy going, what should we do with the daca kids, are you hopeful then maybe this year, next year, we finally resolve this issue? >> i think we will resolve this
issue by the end of next year. hopefully sooner. but part of resolving the daca issue will require a deal on immigration more broadly. i don't believe the president will sign off on a deal unless it is part of a bigger package. the democrats will be under a lot of pressure in an election year coming up because they don't want to turn off hispanic voters. and the president himself, you know, he can't just give it away because his base won't like it. he has to get something for it. charles: we'll see. i mean, it has been debated. an offer was made. i thought it was an amazing offer before. political gamble was taken. i think democrats thought could win this it court. looks like right now handicapping is they won't. >> it is very important to remember that we need several million immigrants every year if not more, to basically keep the economy growing. we've run out of domestic workers. the question what kind of immigrants do we bring in? the answer it can't be just anybody driving another limo.
it has to be skilled people in such short supply in the technology areas, for example. charles: we know, we know silicon valley is pushing hard for that but to your point, canada has a system, right? if we copy canada's system it its hard to argue as xenophobic country. everybody points to canada as being a great, generous nation. we've run out of time. we'll get together real soon. thank you he, my friend. >> take care. charles: democratic turning fully blew in 20 years, not stopping a republican newcomer jumping into the senate race. he will explain to us how he plans to win. as i point out on this show big time money managers missed out on the big bull market run. fomo, fear of missing out, out of cash into stocks as i predicted. what you need to know to maximize your profits as big money comes pouring in. we have for you later in the
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>> i'm here to officially declare today, november the 5th, 2019, that virginia is officially blue. congratulations. [cheering] charles: that is the scene. at least i can imagine that virginia governor ralph northam would be making that statement. but here he was, declaring victory. last week democrats seized control of statehouse and state senate first time in two decades but my next guest is trying to bring back red to the old dough minutian. maury faulkner launched a senate bid today. he joins me. omari, thanks for joining us. >> thanks for having me, charles. charles: as you saw the results come in, you were contemplating your run for office what is running through your mind? this is indeed a tidal wave?
>> there is no sugarcoating the fact republicans took a loss last week. what really motivated me to get into this race is the fact that beginnians are quite frankly, they're ready for something new in my opinion. just take one look what is happening today. the d.c. media is completely obsessed with impeachment of a president and they're not looking at what beginnians are are needing right now. beginnians are looking to cool their homes or heat their homes this winter, how to pay bills. politicians like mark warner continue to focus on unconstitutional impeachment of a president doing an outstanding job. charles: you mentioned d.c. there is economic echo system if you will. fairfax county, but the blue spread from d.c., further into your state, to the point now where it feels like half the state is benefiting from big government, that big buildout of washington, d.c., making a lot of folks in parts of your state
fabulously wealthy. i'm sure they're leaving behind everyone else, but do you have enough people that want to giver up the gravy train? >> absolutely we do. when we look at virginia, a lot of votes are concentrated here in northern virginia. but we have to do those things as republicans we have to do a better job. we have to be better. that is why national security will be one of the top priorities that i will have in the senate. also, it will be really continuing the economic progress that we've seen under the trump administration. currently right now, we have hundreds of thousands of men and women who are in a backlogged system to receive their security clearances. wait times can go up and over 365 days. this is a national security issue. it is issue congress failed to lead on. instead of focusing on impeachment we need to focus on things that will help beginnians and help our country move
forward. charles: i have 30 seconds. were you surprised issues with the governor, the lieutenant governor, did not impact democrats at all? i really believe those were republican issues it would have much more deleterious impact? >> absolutely. i think us republicans in virginia, we have to do a little better. that is why i'm running to offer a fresh face, to help us rebuild the republican party in virginia. i'm more than confident that we're ready to do that. charles: thank you very much. we appreciate you sharing this news with us. i should point out it is worth noting we reached out to faulkner democratic opponent, senator mark warner. we're waiting to hear from him on his availability to come on the show. later in the show, one small business owner veteran shares how shows his patriotism with handcrafted wooden flags. president trump and turkey president erred dough one wail take questions from the media amid tensions in syria. walid phares is here with a preview of that. he is next.
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other people's borders. charles: president trump meeting with turkish president erdogan at white house, before bringing key gop senators with the leader following president trump's decision to remove troops from syria. what to make of all this, fox security analyst, walid phares. in that sound bite there was also more. president trump he pushes, he pushes and pushes. it was intriguing because he said he and erdogan have been friends from day one. they understand where each of them coming from. saying turkey lost people on its border in its border situation. again, knowing that it will wring kel folks on both sides of the aisle, throw is it out there right away. >> absolutely. we need to understand what is on the president's mind if i may. he is concerned about where turkey, this government, the aka government of mr. erdogan are going in terms of a relationship with russia. is it they're going to buy from
russia, what they will buy from us, that is the biggest issue in terms of money. having a good relationship with this government, that is representing turkey a member of nato. but there are other fires that are so heavy the president needs to discuss them with president erdogan. as you mentioned in washington you have two groups opposing president erdogan's policies. on one hand democrats who are doing so because of solidarity with the left-wing in turkey, but also, many, many republicans are concerned about something else, the attack against the kurds, the minorities and mostly this, these jihadi militias deploying in northern syria. so the president the is trying to get from president erdogan as much as he can concessions, when the meetings take place with the senators, the president will have something new at the table. charles: president trump tossed out numbers on potential economic impact we could have if we increased our trading but john roberts was sitting there,
he pushed and pushed on the s 400, the russian systems. president trump replied i want to talk about the f-35s. can turkey have it both ways? can it be a member of nato, an american ally and buy important weapon systems from russia? >> look, there are limits to this manuever president erdogan and his government has been doing. turkey this country, secular, during cold war standing by us against communists and soviet union. that is the old turkey. what has happened over past many years, this government has been moving the edge of nato. buying weapons from russia, nato trying to balance with russia supporting screen hadi militia that is not in line with our foreign policy seems to me the president wants privileged good deals. but on the other hand he is very concerned about where is turkey going. charles: i have got to let you go, real quick on the kurds, are they doing okay from what you
know? >> they're not happy as they were before, but what the president offered them to regather them near the oil fields, equip and wait for better days is still better than nothing. charles: walid, always appreciate it. thank you very much. >> thank you. >> stay with us on fox business where president trump's joint press conference with president erdogan with turkey. they will discuss everything from syria and trade policy. that begins at 3:10 today. one veteran small business owner shares how he is giving back one handcrafted american flag at a time. ♪. heading into retirement you want to follow your passions
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wounded warriors. founder of american grains flags, retired navy veteran. fred, thanks for joining us. >> thank you, charles. charles: tell us about your business. >> we build custom american flags. we've been doing this for about five years now and our goal is to basically put a flag in every american's hand continue the patriotism through doing that. charles: do you, do you sell them through retail outlets, online, just a combination of both? that is a grand ambition. you will get a buyer here but that leaves you with 399 million more to go? >> let's do it, charles. we have a location in scottsdale we sell to or sell through. we do you it here at the brewery in wellington,ot of online sale. we sell on all avenues. charles: how did you get the idea? what sparked the idea, what portion of the business goes to help vets? >> we give back as much as we
can. really that's our bottom line. we donate as much as we possibly can to still keep the doors open. charles: right. >> at the end of the day we have to keep a business going as well. i started this five years ago in my garage, just trying to share you know, our patriotism with the rest of the country. you know, the american flag is one hell of a way to do it. charles: do you feel there is a great reception out there? of course the american flag sadly involved in a lot of controversy. i don't know if you have a betsy ross edition. i would love to see you come out with that as well. do you feel like still within this country, appetite to support and hoist up the american flag? >> it's a sad day, you know. i strive every day to do what i can, what american grains can to change that around and that's where we're at with that. charles: real quick on classic cars, because i don't want to ask you about this classic car restoration. >> sounds good.
so basically what we're doing, we're taking donations, cars. we're turning that money to build a car for a wounded veteran. and, it's a huge deal. a lot of passionate people helping. we partnered up with amazing people. and yeah, we're really looking forward to moving forward with that. charles: we'll check up on you from time to time. we appreciate what you're doing. wanted to say god bless you, keep it going, bret. >> thank you, god bless. thank you. charles: stocks got out of the gates slow. jerome powell calmed investors. many interpret his comments for maybe rate cut in the futures. the dow is on pace for a record close. we'll watch the markets during the final hour of trading. tonight's country music big night with the cmas. we're on the ground in nashville with a preview. how country powerhouses are branching out from music into a
bigger business. we'll be right back. every year, our analysts visit thousands of companies, in a multitude of countries, where we get to know the people that drive a company's growth and gain new perspectives. that's why we go beyond the numbers. t. rowe price. invest with confidence. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.
charles: the dow heading toward record close after fed chair jerome powell's testimony. "claman countdown" liz claman's will dive into the hearing at the top of the hour. she has a preview for us now. liz. >> i don't know if you heard some of the highlights. it was really interesting when fed chair jerome powell said, you have to watch the show. one of the things he did directly contradict president trump on one particular issue he says we don't even need. stay tuned for that. more importantly we have got the one guy who absolutely hated all federal reserve members, whether it is janet yellen, whether it
is chairman powell. whether it is ben bernanke going back. that is peter schiff. you know him, chars. he is libertarian of europe pacific capital. he made a lot of money in the past investing overseas and in gold. he will face off against bill lee from the milken institute. they will cut through all the gobbledygook to talk about what the fed is doing, what it is not doing. whether it will be good for your portfolio. stay tuned at the top of the hour. we have breaking news on disney at the top of the hour as well. charles: that will be a donnybrook. we'll watch that one, liz. folks, watch it, "claman countdown" at the top of the hour. meanwhile country music's big night. cma ceremony shaking it up with reba mcintyre, carrie underwood hosting this year's show. jackie deangelis in nashville with more. jackie. reporter: good afternoon, charles, the excitement is palpable. people are walking around, talking about it. the airport was full of people even on the flight down here.
everyone is so excited. you have got the all-female host lineup tonight. carrie underwood, reba mcintyre, dolly parton are icons in the country music industry. all eyes of the awards is on mayor -- marren morris, eric church, chris stapleton have five nominations. there wouldn't be a show without controversy, biggest song of the year, every's favorite seems to be old town road. huge popularity for this one. 1.3 billion streams in the first six months of 2019. one nomination. not in the best category. the word on the street it is not country enough. i tell you that is country enough, the bar that i'm in here. this is redneck riviera. john rich's bar. we had an opportunity to talk to him a little bit earlier about being a country muse he can star.
also taking advantage of country music to expand his brand into a booming business. he is not the only one doing it. his partner big kenny, will talk about his peanuts that he launched. john has the whiskey. but we asked big kenny, it is about authenticity, it is being real. how you get fans moving from listening to your music to buying your products. listen what he said. >> so just, i think a lot of it, a lot of this brand is heart, and that heart has come from years and years and generations and things that have been important to my family, are important to me today. reporter: country music hugely popular. 46% growth in streaming of it last year alone, charles. so they are tapping into the zeitgeist of that, into the fan base to expand their lines. not even just restaurants. it is gyms, clothing lines, all kinds of stuff. cooking shows. really just making sure that
their brands are not about being behind the microphone but more pervasive. nashville here, this is a great town to do it in. it is also booming. sort of like a little bit of a rebirth if you will. back to you. charles: cannot wait. anything with dolly parton i'm there. jackie, thank you very much. appreciate it. reporter: you too. charles: i've been saying for weeks on this show, money managers sitting on billions of dollars are missing this rally. that i thought it was okay because they would have to chase this rally. now it is finally dawning on them. guess what? this helps your portfolio. next, starbucks ceo holding the line on conscious capitalism in a new fox business interview but how does this play with their booming business dealings because they have to compete in china? we'll be right back. ♪. ( ♪ )
while now. fund managers switching from cash to stocks in a big way. cash levels dropped three-quarters of a percentage point. these are sharp moves haven't been seen in years. the question is now, will they continue? for that, senior managing director jim awad. jim, you and i have had this conversation. i just thought these money managers sitting on, you know, the bigtime global money managers, i just thought they were too cautious all year long, and now they're chasing. i mean, they're coming in big withtime. >> well, they've got a big problem because they're behind the indices, and the mood has turned bullish, and stocks are going up, and they're underinvested. it looks like the fourth quarter is going to be pretty good, particularly around the consumer side, and it's a big consumer sector. the runway looks pretty clear through the end of the year.
charles: and it looks like if you read the data, that they're trying to do what they call window depression. hey, we were always in these big names, but they're really overweight technology. someone like you, you may think these are overvalued, but they're going for it. >> yeah. what i would say is i think the sweet spot rather than buying what's up the most or buying what's not up the most, two different approaches, i think if you stick with companies with inherently growing earnings selling at sensible multiples, you'll do well this year, and you'll do relatively well if the market softens, we can talk about next year at a later show. but they are buying what has done well, but the switch to cyclicals in the last month or two, they're also trying to rebalance -- charles: yeah. >> -- rebalance to what's cheap. charles: it's a delicate balance, it really is. >> but they absolutely want to be invested and show very little cash and try to catch up with the averages. charles: i would imagine some of
your older clients are okay if you have an off year, but the newer folks who hear about your reputation and if you just underperform, there would be a lot more scrutiny. wouldn't that happen with -- >> well, yeah. in my younger days where i was a performance small cap manager, your relevant performance buzz key. now as an -- was key. now being older myself, clients were more happy that i was up last year than they would be disappointed if we are a little bit behind the averages this year. so i think it depends on your age. charles: i want to ask you, you and i have talked about this esg issue. starbucks is opening the biggest tore in the world in chicago -- store in the world. jeff flock talked to him. take a listen. >> starbucks was founded 49 years ago around a mission grounded in humanity. and with the belief that the pursuit of profit is not in conflict with the pursuit of doing good. and so we, our purpose and our reason for being is to leverage
our platform and our scale for good. charles: you know, of course, i was critical for years about conscious capitalism. but everyone seems to be embracing it. how does a company like a starbucks that wants to deal bigtime in china with all their human rights issues, you know, we just used the term delicate balancing act, what about that one? >> yeah. that's a tough one. i would say generically speaking, other things being equal with, it's better if a company can service all of its stakeholders, its shareholders, its employees, its customers -- charles: but do you do that at the risk of the bottom line if make decisions that could hurt the bottom line but it's right for human the city? >> no. we are in a capitalist system. you're judged pure and foremost on profit growth, profit versus expectations. you cannot sacrifice profits for the other dimensions. but all things being equal, you can add them in and do some good for society, it's better than
not doing it. charles: all right. jim awad, thank you very, very much. folks, you can tell individual investors aren't as worried about this trade deal falling apart. we lost 100 points on the dow and, liz claman, we've just about got it all back. liz: i know, charles. much of this is going to be charles. you see disney's up 7% right now in huge move. we're going to explain what's giving that the real tailwind. but we've got this breaking news. you could argue what charles just said up, down, back up again, stocks are on edge as ch encounter new speed bumps on the road to phass from president trump in just minutes alongside president erdogan of turkey. they will take questions. president trump may be asked about the report breaking this afternoon that china is now refusing to put a certain promise in writing. our cameras are fired up,
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