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tv   Making Money With Charles Payne  FOX Business  August 17, 2021 2:00pm-3:00pm EDT

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learned to adapt to this ever shifting covid environment and so has the fed. it is not yet clear if the delta variant will have an important effect on the overall economy but that the federal reserve stands ready to address it and what it might do to respond to some of these crosscurrents is anyone's guess, just like it is in afghanistan. no one knows for sure. here is charles payne. charles: neil, thank you very much, my friend. good afternoon, everyone, i'm charles payne. this is making money. breaking right now resolve has been the hallmark of this market rally going back to 2009 but when happens when the teflon wears off? after 10 years, 322 new highs has the secular bull market run its course? meanwhile what happens when the stimmie checks run out? how about a massive miss in retail sales. i have a best in industry if americans will get back to their favorite pastime, shopping. what the sec chair is warning
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about chinese stocks in a bid to protect american investors. meanwhile blackrock saying, load up, buy as much as you can. so who will you listen to? i will ask michelle schneider, does the ham-fisted retreat from afghanistan mark the end of pax americana? what are the odds we'll have to go back. i will ask congressman vet mark green. all that and so much more on "making money". ♪. charles: polyethylene a productal product to coat variety of products. commercially known as teflon. for weeks it appears the stock market is coated with the stuff. what happens when the teflon starts to wear down? certainly beneath the surface things are ugly with this market.
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major indices moved impressive moves off the intraday low with extraordinarily weak internals especially stocks trading on the nasdaq composite. coming into the session only 48% of the nasdaq are trading above their 200-day moving average, versus 84% of the s&p 500. according to the epa teflon becomes unsafe about 500 degrees and turns into a cars again nick over a period of time. is it time to worry about that happening with the market as the veneer rubs off to reveal weakness been in place already for some time? joining me to discuss strategic wealth partners mark tepper, bellpointe, dave nelson and veritas greg branch. mark, let me start with you. another tidal wave of missed economic data this morning. negative reaction to earnings. some are okay. obviously the market is grappling for a catalyst to remain higher. what are the answers that investors are looking for? >> charles, probably the three big things investors warrant to see right now, number one, delta
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concerns obviously need to fade. number two, inflation needs to moderate a little bit, and number three supply chains need to normalize. charles, if you think about it, the market is up 100% from its bottom. we're up 33% from the pre-covid levels in a year-and-a-half. we got three years of returns in about a year-and-a-half all while still stuck in the middle of this 100 year flood. so my question is this, have we become a little bit spoiled as investors? are our expectations too high? because the market doesn't go up 15 to 20% year after year after year. i think we need to have reasonable expectations and understand that a lot of the easy money has been made. charles: all right. by the way i answer your question. it is hell around yes. we have become spoiled. david, meantime, you've been pointing out there are rolling pullbacks and rolling corrections but what about the overall index, the overall s&p? is it time for a 5% or better
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drawdown? >> we haven't even had, barely a 4% drawdown in the s&p 500. we know as market observers underneath the surface it is a lot more chaotic. to your point we had a rolling correction. virtually almost every asset class or sector in some way, shape or form have pulled back. more than seven sectors have 9% drawdown. energy 15%. technology is back 9%. it begs the question, did it really pay to have all this trading going on running from growth to value and back again? it really didn't pan out. in the end if you sat in the middle of the boat in the s&p 500 you got the same return. charles: right. >> i would ignore a lot of noise here. there will be a pullback at some point. use it as an opportunity. charles: greg, you've been strong in doing extraordinarily well in your value plays. are you staying the course there? >> no my course has tempered. we're not looking at the same breadth of value opportunities that we were eight or nine months ago.
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financials are no longer trading at price to tangible book or beneath that. so we've seen a lot of valuation ground made up. and now some of these sectors are merely plays on earnings growth. and when we had a situation like this, where the market is imp soing for a signal, and we as investors are searching for a signal, better off looking for stories you like. stories with secular tailwinds. stories with structural advantages rather than playing a theme. there are stories i like in growth and stories i like in value at this point while we wait for the fed to make up its mind what they want to do. charles: speaking about the fed. jerome powell started speaking 35 minutes ago. it feels like he might have said something. i'm not privy to everything he is saying. he addressed delta here, we're certainly trying to come off the lows to get back to that point. someone mentioned that the s&p doubled, really the fastest time it has ever gone up 100% since world war ii. it hit the 49th all-time
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high yesterday, 322 since 2013. here is the thing, it only made nine new highs from 2001 to 2012. looks like we're dealing with decade long periods of boom and bust. with that in mind, mark, how much longer for this one? could it conceivably go on much longer? >> i actually think it will. normally when someone says this time is different you end up looking like a fool but i will say it anyways. you have the fed, you have the treasury, they have eliminated your traditional business cycles of economic expansion followed by a recession because they have been very quick to act ever since the great financial crisis, quick to cut rates to zero. quick to drop trillions of dollars in peoples laps. any dips in the market, while the drawdown was very substantial last year they're quick, right? the market recovers very quickly. personally i still think we're in early innings of secular bull market. i don't think it ends.
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maybe growth of 3 to five%. charles: greg you hear in the financial media, particularly "the wall street journal," the fed is ready, they're on the cusp, they will announce they will take away the punchbowl sooner rather than later. i keep looking at the bond yields and they keep telling me something else. what is the deal here? what do you think in the possible tapering and what is the timeline? >> i'm probably one of the people in the media mentioned, charles the fed certainly hasn't been quick to the draw changing posture here. look at the end of the day it is very difficult to argue that the labor market needs nursing to health. the claims market shows no deterioration to delta but pandemic numbers are lower. we have still 10 million jobs on offer and only 9.2 million people underemployed or looking for employment. if the fed's justification for
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continued easy monetary policy we need to have care over the labor market, that argument seems pretty pointless at this point. so maybe they will adopt a new argument in terms of the consumer confidence number we saw from university of michigan hitting historic low and retail sales last month. charles: right. >> but they have got to somewhere else. charles: although there are something like seven million fewer people working now than last february. david, here is the thing with this taper tantrum. we talk about it a lot around i'm a little bit of a contrarian. i don't think we'll have anything near the worry we're talking about, 2013. i'm ready to be an aggressive buyer if we do get a tantrum. how would you handle it? >> to me the question isn't whether you buy on a dip like that, the question is what you buy. to mark's point and greg's point you have to be selective. look out there for what you really want to own. interest rates will have to go significantly higher for them to be a competitive asset class. i think it will be difficult to even get above 2%, especially
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looking around the world. germany, completely under water, negative rates. charles: right. >> japan very low rates out there. so it will take a major move in interest rates to be competitive because everything starts with the interest rates. u.s. stocks are still the better asset class regardless. charles: right. real rates by the way are down. guys, a minute to go. you all kind of teased all this wonderful places where we can make money. can we narrow it down a little bit? maybe sure what you're looking at, what might be your favorite idea, start with you, mark? >> yes. i like blackstone. i think it's a good place to hide out right now. financials are looking strong again from a momentum perspective. as an investor as david mentioned, bonds are not really exciting. no one wants to own bonds right now but people still want to diverse away from stocks. blackstone is the biggest private manager out there. i like that. charles: greg? >> on the value side, looking at casinos. recall i was bullish on them a
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year ago. ran up to april. we're back down to valuation levels we saw with big tech like google, 30% operating margins, 20% market growth of multiple 2022 yes please. charles: roll the dice with casinos, couple tex. real quick david nelson. >> get it to a name like hca, less than a market multiple. looking for a global stock, thermofisher, tmo. one of the great growth stocks. 26 times forward earnings. charles: absolutely fa none noll. one of the best companies ever. made a major acquisition. health care last to go read today. you might be on to something. you guys are great. mad scram dell out of afghanistan. hundreds run towards planes. obviously hopes escaping the taliban while even more u.s. troops are expected to land. we have congressman mark green who served in afghanistan and iraq and was on the mission that
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session the citi economic surprise index was already in freefall. it has been for months. you add this disasterous retail sales report, headline saw a decline of 1.1%. the street was looking for just .3 of a decline. interestingly the slumping bond yields were a little higher although they remain very low. by the way they erased that whole big gain that started after the august 6 jobs report. they went straight up and come back all the way down. the course of wall street keeps saying that the fed is ready to taper. i read comments from certain officials including eric rosengren who is loud on his soapbox but i'm not hearing powell sing that tune. the date is such that the fed would be more entrenched in accommodation. we have parametrics, nesha patel. everything seems like it is coming up short. there is, every time it happens, an army ever economists go on tv
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say, never mind, that one didn't count. how concerned are you with these reports that seem to come up short of consensus and at the very least should cause concern where growth is particularly going into next year. >> yeah, so i would say in short i'm not overly concerned just yet. retail economic data has been somewhat disappointing. you know the retail sales number recently was really disappointing but i would argue some of that drop-off might have been expected given the falloff of the stimulus payments anyways. obviously the variant is causing a big impact, or leading to a big impact on the consumer behavior but it is really tough to separate the two just yet. charles: right. >> i think the trend of this over the next few months what i would be watching out before but i'm not overly concerned. then the jobs in the labor market i think is a big one to watch out for. robust july number. charles: right. >> start seeing cracks there,
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that will be a cause for concern particularly for the fed. charles: so what about the not just the monthly data but now more recently the high frequency data starting to slump. the new york fed weekly economic index, that was down huge. it is down huge from april. some of this more nuanced stuff is certainly not creating any confidence. what do you say about that? just sort of don't worry about it, smooth it out over a longer period of time? >> i do. i think the biggest thing to look at this is that we had double-digit numbers right on that economic index in april, in may. i think beginning part of june. that was coming off of a very low baseline. so that was you know, you were going to see some of those sharp jumps. as a result of that, after that was going to be maintained probably not. charles: i got you. >> seven plus percent number we've recently seen, that is still higher than pre-pandemic levels over a period of time.
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i think the same thing here, while we've seen a sharp decline from the double-digit numbers i don't think it is enough of a story to tell us yet we have big issues here. now obviously higher frequency data, daily weekly data is going to pick up various concerns and that is a big question mark out there and we're seeing that no doubt but again i also think you have to remember we're coming off such a high baseline right from the april numbers we simply couldn't maintain that going forward. charles: i got less than a minute to go. i want your assessment then what the fed does next. i know the delta variant is a wild card. it is hard to predict that. jerome powell talks about it a lot. it feels like one of the things that maybe he feels he must have clarity on before he would be okay with you know, taking away the punchbowl. where do you see the federal reserve? are you in this camp they will start talking, actually tapering sometime very soon? >> i'm certainly in that camp
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and i think, my tune has changed and i have kind of come into that camp as more officials have been talking about it, right? as the fed has met kind of that dual mandate that they have set for themselves of higher inflation and better jobs numbers. now whether or not they change that mandate to include something else to account for consumer behavior and indirectly account for the variant concerns, you know that is to be seen. i could see chairman powell kind of staying on the dovish side. i think there is an argument to be made that the fed could taper. look, i think if done correctly there is a way to bifurcate that tapering conversation from raising rates, right? this is small tapering we're talking about. relatively minimal. not as big of an impact. all this excess liquidity in the system i don't think there is much of that benefit left anymore. it is not needed. i think there is -- could be
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made for that. charles: i, by the way i get where you're coming from and i do think the point you're making is really important for the audience, how well the fed communicates this to wall street which they have tantrums all the time. it could be a, any tantrum, anytime wall street doesn't have its way it will have a temer tantrum. maybe the fed has to be more of a babysitter and coddle wall street than anything else. thank you very much. appreciate it. all right, folks we have the heritage foundation genevieve wood on afghanistan's first female mayor and the demise of the american era. my retail power panel on july's jobs numbers, sales numbers, much worse than expected but always places in retail to make money. stick around. ♪
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charles: kabul international
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airport is reopening. military evacuations. all flights suspended after thousands of people rushed the airport desperate to leave the country. connell mcshane on rapidly changing situation from the white house. reporter: charles, we heard from the white house the last hour once again defending the digs to w draw troops from afghanistan and once again defending the way the evacuation of thousand of people from afghanistan has been handled. they say they are trying to put 300 people on cargo planes that leave the airport in kabul trying to get people out as possibly fast as they can. comes to your point the comes after chaotic few days where the airport is open to civilian and military flights. you had people clinging to the planes. at this point it is difficult for many people to just get to the airport the first place. the newest video we obtained today shows people appear to be beaten and whipped as they're trying, according to this video to get to the airport. so that has led to questions of
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responsibility and whether the president takes responsibility for his national security advisor jake sullivan. here he is moments ago. >> are you taking responsibility for every decision the united states government took with respect to afghanistan, because as he said the bub stops with him. i am also taking responsibility and so are my colleagues, secretary of state, secretary of defense. chairman of the joint chiefs of staff. directors of our intelligence agencies. we has a national security team collectively take responsibility for every decision. reporter: as for the president himself. he is not here right now. sullivan says we'll here from him the next few days. he was here yesterday but not for very long. after speaking from the east room president bide went back to camp david, charles, and that is where he remains at least for now. back to you. charles: connell mcshane, thank you very much. tennessee representative mark green. congressman, amazing this clumsy
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retreat resulted in more u.s. troops in afghanistan than a few days ago. my question to you, could this be a harbinger of things to come? in fact do you foresee a time when sadly we may have to send combat troops back into that country to curb the export of terrorism? >> yeah, charles, thanks for having me on. always a joy. you know i absolutely dohink we're at greater risk right now than we've been since before 9/11. these organizations, these transnational organizations are much more organized and better led than they were before 9/11. and here they are now with their own country, a place where they can harbor other terrorist organizations and allow them to train up. absolutely we're at greater risk. add to that a southern border completely open because of this president. more terrorist watch lists people are being apprehended down there than ever before. i think we're at greater risk. i think america's sons and daughters may be going back.
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charles: you know yesterday president biden said he is quote, stands behind the decision and even claimed that everything was planned for every contingency was planned for. but of course he blamed the afghan leaders. he blamed the afghan military. it was interesting, after he did that, i took a bunch of notes, representative green. he talked, he said we paid their salaries and provided air support. wouldn't it stand to reason would be massive hit to morale, someone who was supporting you financially, with the airstrikes took them away? couldn't they figure that out in their calculus? >> i don't understand why they couldn't figure that out. president biden named everything but climate control but climate disaster. he blamed the taliban. he blamed the previous president. he blamed military strategies for the past 20 years. that clearly has been an issue. our strategy has not been great over the past 20 years but, the
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falsehoods in his statement that the afghans weren't willing to fight, they have been fighting the ground war by themselves. we've been there just as a support structure, aircraft and intelligence. the way we left bagram, you hit the nail on the head. the way we pulled out of bagram airfield in the middle of the night, didn't tell afghans, they stumbled in the next day and americans were gone? that obviously took away their will to fight. the method of this withdrawal, abysmal, the worst you could possibly imagine. that is why we're faced with people falling off of aircraft trying to get out. charles: meantime the taliban has gone on something, some sort of charmed offensive. how worried are you that maybe members of our media, maybe our politicians start to pick it up, start to carry their water, start to echo some of their things they were saying? who would ever believe they will treat women respectably? >> unicef reported that at least
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27 children were brutally murdered in the past three to four days. these are not suddenly overnight overnight -- their sadistic philosophy. not like they will become international citizens now. they're a thug, criminal, you know, horrible ideology and it is insane to think that anyone would just you know, partner up with them. but i wouldn't doubt it. some of the left media, it is interesting, even leon panetta, people like that are saying this is biden's failure and he has got to own it. charles: yeah. i have been surprised, you know, some folks that you might think would stick one side of the political aisle are being very honest about all of this. congressman green, thank you so much for your service and thank you for coming on the show. always appreciate it. >> charles, take care. charles: now i warrant to bring in heritage foundation genevieve wood. the first female mayor of afghanistan stated, quoting waiting for the taliban to come
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for people like me and kill me. now i know overall lot of people are saying we don't want america to be in the business of building nations but what about women, the poor, helpless folks around the world have been inspired by the united states, do we have some sort of obligation to them? >> well we certainly have an obligation to these folks we said we were helping out and all of sudden withdrew in the middle the night. no doubt women, children, christians, those helping the american government, american military, are in dire straits right now. they are the most vulnerable. they certainly will be here in the near term. that is reality. it is why it is such a shame. we can debate how much of a military presence we should have had there, let's keep in mind, 2500 troops that were there. congressman green just said, primarily the afghan military was dealing with the fighting right now. we could have talked about an orderly to take out the troops
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to have done that, done it in a humanitarian way protecting those who are helping us, that we were working with our allies, humanitarian organizations to plan for what would happen if the taliban or others were to come back in but we did none of that. there was no planning, very little people had any notice when this was going to happen. so therefore women, children, all those i mentioned are in dire straits right now. charles: yeah. apparently even the generals are saying you know, it doesn't make sense. this is summer fighting season for the taliban. if anything, wait until the winter time, do it the right way. >> that's right. charles: since world war ii, war deaths around the world declined dramatically. that is hard for people to believe but it is really remarkable. in large part the united states being both the sheriff and also benefactor of the world. we invest in countries or we share technologies with them. what we've seen is a billion people around the world have entered the middle class. i will call this pax americana.
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this period you can largely say, thank you, america. the question now, is it coming to an end? >> that is a good question. we'll see how we respond here, by saying to the president yesterday, basically i take responsibility but somehow this is all okay isn't going to hold up. look, charles, the u.s., the world is strongest around is in the best peaceful place when the u.s. is using all of our assets, our military, our humanitarian as, our trait, economic power, using all the different levers to look out for our interests but end up being good interests for people around the world. the reality is we have to use all of this wisely. we have to show leadership. what we saw this week was not leadership. what this said to terrorists around the world, basically afghanistan, training camps will be back open for business. says to china, to russia, you now can step in and take a larger role. they didn't say that verbally
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but that is what our actions are saying. when we are trying to beg the iranians to get back into the iran deal, we're dealing with the wrong folks and we're not showing leadership. charles: by the way, yeah by the way they're also enriching uranium much faster than anyone thought they would. >> got it. charles: between china yesterday calling america, we were humiliated, telling taiwan, suggesting to them we wouldn't come to their aid, the foundations are cracking. genevieve, always a pleasure. thank you so much. appreciate it. >> thank you, charles. charles: new zealand folks, shutting down its entire country after one single confirmed covid case. will the world ever get out of covid hell as long as nations keep making these snap decisions. retail took a massive hit but believe me there are winners in that space and we'll uncover them for you. we'll be right w back. your car insurance, so you only pay for what you need.
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♪. charles: well the delta variant continues to ripple around the world but reaction to new cases are really telling. take for instance, new zealand with a lot of forced actions last year, returned to full lockdown after a single case prompted some observers if lockdowns cannot fully stop covid from returning then is it worth it because there are other hits including economic hits? joining me trend macro's don luskin. i get your research on covid every day, i got to tell you it is absolutely phenomenal. >> thank you. charles: i don't know who can touch it particularly in the wall street area where you connect all the dots. you look at it through the lens of a professional investor. i learned this morning you're finally coming around we have to live with the virus and taking measures like masks, things like that but is that the right mind-set rather than the abrupt lockdowns we're seeing in places? >> exactly the right mind set. if only we had done that from
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the very beginning instead of causing a global depression which obviously did not succeed in crushing the spread of the virus. here we are right now having our fourth wave of it? well, obviously lockdowns don't work. now don't tell that to the poor people in new zealand. one case and we lock down an entire national economy? fortunately this doesn't matter to the world because new zealand has about the same gdp as the city of san diego but you know the rest of the world? come to their senses. they're not going to lock down ever again. we'll learn to live with this. charles: so we got the vaccine debate. america it is portrayed politically, right? you know the media is sort of focused on white republican voters being the villains. you know, intriguing, today i was reading in south africa, 52% of the white folks there got the shot. almost half haven't. 65% of blacks there have gotten the shot. in the bronx about 3/4 of the
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black residents are hesitant. so should we start to think about the folks who are trying to get us to take the vaccine should they work on smarter messaging? i think this fingerpointing and blame game is making it harder and worse and people are putting up more resistance? >> it's ridiculous. it is like not only will the authorities not talk to us as adults they just talk to us as split play things. it is absolutely ridiculous. we've been in this thing for a year-and-a-half and they have not exactly covered themselves with glory in terms of their messaging. it was don't wear masks. do wear masks. wear two masks. the vaccines are perfect. 92% effective rate. oh, no they're not. you need a booster. you need another dose of something that turns out not to work well. these people are not doing a good job for us, charles. charles: yeah. three jabs in eight months. i mean we'll take them but it is not what we thought would be the
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magic elixer. i got less than a minute. let me switch to investing. something i'm looking at i want to pick your brain on. corporate america is sitting on large amounts of cash. when you allocate money, and companies are sitting on cash pile, what is more important to you? buyback, major cap company. investments or do you like when they keep hoarding? >> what i want to see for growth of course is i want to see the smartest people in the world, the people who created these fantastic technology companies that earned all this cash to reinvest in capital expenditures, that is what they're good at. unfortunately the current administration in washington has the very same firms in the antitrust cross-hairs. talking about raising corporate tax rates. if you're a corporate cap-ex planner you don't need to know how to fill out the your xcel spreadsheet, you don't know what the tax rate is and don't know whether the department of justice will knock on your door to break you up. charles: the answer to that is
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yes and yes. taxes are going higher. and they are there to break you up. let's go back to d, hoard the money. donald, thank you very much, appreciate it. >> thank you, charles. charles: we often look at big bock retailers when we discuss a slowing economy. after all they're so critical. there are a lot of retailers out there besides those that are doing extraordinarily well. they probably should be in your portfolio. i have two of the best. i have got kristen bentz and january neffin they will come up to talk about industries and this awful number but opportunities as well. we'll be right back. i've spent centuries evolving with the world. that's the nature of being the economy. observing investors choose assets to balance risk and reward. with one element securing portfolios, time after time. gold. agile and liquid.
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charles: it was a big economic report that missed this morning. we're talking about retail sales down 1.1% from last month. consensus was off .3 of a percent. some highlights, building materials down sharply, 7 1/2% in june. on line sales down 3.1%. there was a big e-commerce miss at walmart too. clothing down 2.6% after surging 7.7% in june. maybe stimmies running out has something to do with that. you couple this report with
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giant swoon on con consumer sentiment. i couldn't ask for two better for a retail power panel. kristen bentz and january neffin you were upbeat about american shoppers shopping until they drop. something feels like they are speaking folks a little bit, kristin. what is going on? >> the consumer has a bit of covid whiplash right now. we have inflation obviously a concern but this new delta variant really put a dent in things. when your kids can get sick people pay attention and can't get vaccinated either, you have consumers get a little skiddish. charles: jan? >> i think there is much more to it than that, i think we should remember sales are down 1.1 month over month. they were down 16% year-over-year. they were higher than july 2019
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quite a bit. the sales are really strong and the consumer is really healthy. we have to get past this little bit of oh, my gosh, i should be concerned. we'll have that every time there is bump in the covid. this covid burns itself pretty fast, right? it infects pretty fast and talked million more a day getting shots. i don't think we'll have yam with rest of back to school. i don't think we'll have a problem with holiday. retailers have plenty of people wanting to buy. all they have to get is the merchandise in the stores. charles: let's talk about what to buy. you used an acronym, watch, you think that will continue to dominate. explain that. >> i didn't invent walmart amazon, costco target home depot did you didn't invent of those stores. those are strong market share gainers and have been since covid. they continue, walmart and home depot in the release this
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morning. if you look at that group, they're gaining market share. they will keep gaining market share. the little bit of a blip we have going on with covid if anything might be a slight positive for that group, not a negative. charles: kristin, are you still liking luxury over the rest? >> i always like luxury over the rest. i like multinational luxury over the rest because it is more immune to the whims of things that are happening in the united states. but trees don't grow to the sky, right? so i would suggest, i would pull 50% back off the table right now in my positions in hr and lulu. still very constructive in the name but it's a little rich here right now. i think after a 20% correction you can get back in. so i would take profits here. charles: okay. sounds good. hey, you earned it. jan i have to give you a props on western call. boot barn is amazing. it has been a beat. beyonce debuted the clothing
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line for adidas, heavily western influenced. how long can this be an investable fad. >> don't forget levi also benefits from that. it can be a investable fad for the next 18 months. it wouldn't be crazy if it lasts as long as three years. that happened before. 18 months are real solid. i think you will see strength in western for foreseeable future. charles: chris sin, you told us what you were lightening up on. you have new ideas for us? >> i really like clear here. trying to go to conferences and concerts and i like private aviation, wheels up, ticker up. those are a little new on the horizon for me. charles: i got to tell you, that clear thing, every time i'm in the airport, flying first class means nothing, right. if you got the other thing you get to go in front. if you got the other thing, clear you go in front of that, there is never anyone in the clear line.
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i might get the clear pass, buy the stock, jan. tell you look at it. i couldn't ask for two better experts. all right. now the guy who called the 2008 financial crisis betting against cathie wood. this is a war of two financial heavyweights. who is going to come out on top? i have the perfect guest to handicap it all right after the break. ♪ before nexium 24hr, anna could only imagine a comfortable night's sleep without frequent heartburn waking her up. now, that dream... . her reality. nexium 24hr stops acid before it starts, for all-day, all-night protection. can you imagine 24 hours without heartburn? ...
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unconventional thinking. it's better for business.
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charles: you know, it's shaping up to be one heck of a stock market, one of the most successful investors in the past five years against the guy that made a fortune at the housing crisis. michael burry bought million of dollars worth of puts in cathie wood's art fund and she replied that he just doesn't understand innovation, joining me michelle schneider. michelle you're one of the smartest investors i know. you do understand innovation so whose going to win this battle? >> well thank you, charles. that's very kind. well it's an interesting battle, because there are two giants and in some ways, they are mirror images of each other in that they're both fiercely passionate about pair way they see the world and how they view the trends as we know, was very wrong for a long time before he hailed victorious after the mortgage debacle and kathy has made a fortune in tesla,
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which of course has been very negative on so i think the bottom line is this. i look through their portfolios and they also are mirror images where bari is very long in consumer staples and in materials, cathie wood has none of that. she's all in the innovative caltech so basically, i think they can both be right, depending on the timeframe so the way i see it right now, market corrects, burry will be victorious. charles: well, you're coming out on me a little bit there, michelle, you're coming out just a little bit. [laughter] just a little bit. all right, i tell you what there's an even bigger one going on where china is continuing its crackdown on everything that moves including new action this morning, you've got the sec chair gensler warning investors still, stay away. blackrock saying heck are you crazy? triple up in the meantime the
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gold dragon etf down 34%, chinese etf down 41% whose going to win this , who do we follow, listen to gensler or follow blackrock and pile in? >> you're not going to be happy with this answer because again, it's sort of a both situation. charles: [laughter] >> well, yeah, because right now, things are free-falling and we don't like to buy falling knives, but i looked at fxi for example, the etf in china, the relative strength on a monthly chart is at 1%. that is so crazy oversold and if blackrock is right and by the way they aren't the only one , jpmorgan, jamie dimon just got approval to go in and have 100% control of the securities in china, tim hortons coffee going into china, also fidelity so these companies are banking on china going from an emerging country, to an actual dominant one, so i think, you don't buy the falling knife but if fxi to
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get through 40.50 then i think actually, you might see a decent bounce. charles: all right, michelle you're working on having the most christmas cards aren't you you'll get them from everybody nobody is upset at you no one should be upset about nvidia because when it was getting hammered earlier in the year, you told folks to listen up, you told them to buy, they did, they made a ton of money. it looks a little bit more vulnerable and they report tomorrow. do you hold the stock into that report? >> i would probably say given current situation right now, where tech is starting to curve under, momentum is wayneing, probably unless i had a big cushion not hold into earnings and take a fresh look tomorrow. charles: okay, what's your biggest worry? i've got less than a minute to go, what's your biggest worry with this market? >> going back today wood burry is inflation, she's not concerned and he's positioned for it and i'm with him on that the so there's a little bit more definition for where i stand currently.
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charles: okay, so once we get an answer on the inflation, that might knock down a whole series of dominoes you'll take a commanding decision on all of these questions. by the way you've been doing fantastic we miss you haven't talked to you in a while and we will talk to you again real soon we have a little bit of a bounce here, folks that's starting to fizzle a little bit so jay powell not able to move the needle it's a tough hour of trading but you'll be with the best, liz claman, over to you. liz: jay powell didn't even try, he kind of stayed away from everything in that little discussion, just about in the last hour. thank you, charles, after five straight record closes with the dow and the s&p, guys, the market appears to be suffer ing a little altitude sickness as we kickoff this final hour of trade, a triple wammy slamming stocks right now the chaos in afghanistan, the slipping retail sales numbers and cases of the delta variant filling up hospitals across the nation. all of it together, in the aggregate, yeah pushing investors to take some


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