tv The Claman Countdown FOX Business March 29, 2022 3:00pm-4:00pm EDT
each of us as individuals can overcome any obstacle in our way when you put those two things together, you can and you will change your life. so we got a nice little amount of momentum now, as the last hour of trading liz claman as always will hold your hand as we go through it, liz? liz: i've got a question for you charles. when will the markets learn not to trust vladimir putin? charles: you know what? i think they trusted him for 30 seconds today. i think it's hope more than trust. liz: [laughter] yeah well hope is out the door right behind trust good to see you thank you very much, charles. yes, the s&p 500 has emerged from correction territory but can it stay in the final hour of trade especially as enthusiasm and hugs and yes face to face meetings and hints at peace in ukraine flip after u.s. official s remind everybody, do not believe anything vladimir putin says. up about 251 points the dow is
off its earlier 416 point gain, which was hit when russia said it's going to pull forces from the kyiv area and now u.s. officials say any movement in russian forces should not be seen as a withdrawal but rather a redeployment. while the russia-ukraine war is grabbing most of the global head lines the u.s. at the same time is trying to put together a plan to keep china from gaining more strength in the semiconductor sector. former undersecretary of state keith crock is the man whose been at the forefront of helping cure the semiconductor shortage problem. he's fought so hard, he even got sanctioned by china for his work with taiwan. he's here in his first interview since being nominated for the nobel peace prize for fighting the authoritarian leadership of china, and oil companies usually the first ones to turn on the pumps when crude prices shoot higher, fox business has decided to dig into the numbers to tell you why the
big oil companies are still behind this time around and it all has to do with rig count, we're going to take you live to an oil rig. we want to begin with this fox market alert though we've got something rather stunning happening as we kickoff this final hour of trade. the nasdaq at session highs right now, a gain of 240 points as markets spring up on talks of russia deescalating in ukraine, but again, the u.s. government is saying be very weary here of trusting vladimir putin. now the dow gains have been tempered by reports of that u.s. skepticism as president biden voices his doubts about russia's intent to truly pull out of ukraine. listen. >> we'll see. i don't read anything into it until i see what their actions are. we'll see if they follow through what they're suggesting. liz: oil has had an absolutely wild ride on this headline versus that headline, all during the session. oil had briefly dropped below $100 a barrel on cease-fire
talks in ukraine. you can see right now, we're at 104.53, and so we have climbed right backup there, but again, yesterday we had dropped around to about $105 a barrel, so at the moment we're slightly below that. let us not forget what really relates to that and that's inflation. fed president patrick harker added if prices refuse to budge off the 40 year highs we're seeing when it comes to inflation, bring on the 50 basis point hikes, harker announced he has penciled in not four, not five, not six, but seven quarter point interest rate hikes this year and did address the bond market in version ghost which became real about an hour and 20 minutes ago when the yield curve between the two year and 10 year treasuries inverted for the first time since september of 2019. this is often considered a predictor of recession but harker does not give credence to that theory this time around so should you? let's get right to our floor
show joining us money mass press chief investment strategist keith fitz-gerald and scott fullman. keith i'm very interested in your perspective here because you say investors are not prepared for peace. what do you mean by that? >> well, they have gotten so much negativity, liz, that they are focused on the shortened of the stick when in fact history suggests, you want to be buying at points of maximum pessimism. you want to focus on the companies that will lead you through tomorrow. i think that these markets are going to be gone like a shot when putin finally does back down and he will. we will get through this , just as we have through other major points of global conflict. liz: okay so keith what are you buying here because right now the markets are in the green. >> well they are but we've been buying apple all along, microsoft all along, some of the oil companies, we're still in because it's not just about what they're doing today and whether oil is at $100 a barrel right now. it's about where they are going
with alternative energy, with ev 's with nuclear fusion. these are the things that are going to power our world 20 and 30 years from now all of which the foundation is being laid today. liz: well scott fullman, you've been talking very rationally about all of this at the same time saying look for those great bargains on days where we see red, where are you standing right now? >> again, we're looking for those opportunities, liz. the fact is, the market, you know, we got a balance between investors and traders. traders are becoming now much more complacent with the whole situation. vix is now down to a 2.5 month low. that is really saying that the traders out there are not positioned now for a major down turn. they aren't scared at this moment, and i think investors now are going to start to jump on that bandwagon a bit. i think there's lots of stocks out there that the semiconductors have been hit very very hard. i think there's opportunities there, there's other opportunities also in a lot of
consumer discretionary stocks. these are the companies that have been beaten up because of the whole war in ukraine, and the fact is is that i agree with keith. i think that once we come out of this , people are going to be turning around pouring money back in and remember, interest rates even though they are going up, are still very very low, so where do you go and put your money to work? you're going to be back in the equities markets. liz: keith can i just jump in because airbnb and booking holdings are two names that are soaring today. they are doing really well. booking is up about 4.5%, airbnb is looking very strong as well, and this is in relation to the headlines that we see , where there could be possible peace and people will begin traveling internationally once again. where do you see the sectors that you find most interesting at the moment? >> i think it's going to be related to the technology but for the first time in a long time, liz, to your point, airbnb that's about people wanting to get out and stay out. i have never ever thought about
buying that stock but now, watching it today as it's moving along and beginning to understand how much pent-up demand there really is, i'm getting very curious. liz: i would think so. i would think so. scott, we got some very good data today the jolts numbers this is the job openings and labor turnover, coming in at 11.3 million job openings. we've got a very strong labor market. it's very tight, so when you see this and we don't want to get too wonky here, this yield conversion, between the two and the 10 which happened at around 1:41 p.m. eastern time, which often in the past has signaled a recession, do you see that right now? we have balance sheets that are pretty strong for many corporations and on top of it, a tight labor market. >> well you know, liz, the fact is that right now, the market is focusing more on expansion, on economic expansion, recovery from the pandemic. there's a lot more to go into it
look, the fact is will people cut back? liz: okay scott froze. still looking to do things this summer and that's the big thing i think. liz: it's great to see you, keith, scott, we're pulling the plug before you do more, thank you very much it's great to see you both. we've got this fox business alert. sleep, who needs sleep? robinhood shares are surging after the online brokerage, a favorite with the meme stock crowd announced that starting today, it's extending trading hours. customers can now buy and sell stock from 7:00 a.m. to 8:00 p.m. eastern time, so the move essentially tacks on four extra hours to its trading day, which means clients can trade before they head out to work, or after they get home via 26% jump in the stock that you're looking at right now looks lovely, great, but it's $16.17 a share, robinhood investors have gotten robbed this year, as business on the trading app slows.
the stock is well off its 52 week high of, this hurts, $85 a share. speaking of meme stocks, gamestop and amc have endured quite a wild session today both were halted earlier after huge volume spikes, last week the duo notched a very strong gain both of them at the same time with gamestop up a significant 67% while amc saw a gain of 28% during the same time period. you've gotta michael chiarello up 3.25% right now, just awe few minutes ago gamestop was up now it's down 1.5% very volatile moves but as for amc, the movie theatre chain shares closed up 44% yesterday alone after amc ceo adam aron told reuters that "more transformational deals" like its investment earlier this month are on the way. investors are tuning into nielsen stock, after the tv ratings company agreed to be acquired by a private equity consortium of elliott management
and brookfield in a deal valued at $16 billion or 28 a share including 6 billion in debt. stock right now is at $26.94. the $28 a share, it's pretty much a 60% premium to what the stock was trading at, when talks were first reported a few weeks ago, and take a look at fedex shares let's see where they are, because right now, they are up about 2.8%. they are delivering returns at this hour after it named coo rog subramanian as its new ceo and president effective june 1. he succeeds the famed fedex founder fred smith, who will transition to the role of executive chairman overseeing sustainability, innovation, public policy and other global issues. all right, waiting for home prices to come down, you might want to pack a lunch. home prices took yet another leap in january, but as the spring home buying season heats up and rents sore, our prices actually prime for a fall
we're about to get the lay of the land from the real estate giant who helped investors make bank by buying homes. closing bell 49 minutes away, dow now up 301 points, and climbing, the "clayman countdown" is coming right back, stay with us. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire
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who have found the right way to lose weight and get healthier with golo. liz: folks we've got breaking news i'm just looking at the headlines right now it's out of the pentagon, spokesperson john kirby is saying moments ago that russian troops are on the move, small numbers of russian forces at this hour are apparently pulling away from kyiv, but kirby is stressing, this is important, that russia is reposition repositioning, not withdraw, so they are calling it a repositioning. these forces moving to be used elsewhere in ukraine. kirby added that russia is spin ning its lack of progress as "next steps" and that the ukraine war is proving to be more than russia anticipated. we're going to keep an eye and ear on the briefing, bring you any other headlines as they come in but look at the dow still up about 301 points, nice gains, and we are pretty much at session highs for let me check, yeah, s&p up 52, and same as the
nasdaq is up 265. so, fresh highs at the moment. let's get to house prices. the latest data on home prices has a screaming message for buyers. if you are waiting for prices to drop, they will not. the s&p core logic case schiller index revealed that u.s. january home prices rose 19.1% year-over-year, leaping past the 18.4% estimate. that 19.1% jump marks the fourth largest annual gain on record. home prices and rent inflation now have former new york fed president bill dudley calling out fed chair jerome powell and a bloomberg op-ed skyrocketing prices in all realms, not just home prices, shows feds framework is behind eight ball in controlling inflation and has the u.s. economy barreling toward a recession. so, let's just say he's right. with the red hot housing market
showing no signs of cooling off, will the real estate market still be attractive if there were to be a recession? joining me now, the ceo of real estate investment company which has a portfolio of more than 20,000 apartment units and 2 million square feet of office space. you know what dudley is talking and we can see it in the case- schiller number home prices are rising at a faster pace than inflation which is at four decade highs, that number though, is from january so it's lagging. today, give us today. do you see any sign of prices cooling even just a bit? >> you know, liz, first of all thank you and pleasure being on the show. look, the home prices rising, it's not something that we did not expect, right? we have tons of liquidity in the market, the mortgage rates were really low but what we're starting to see now is a cool- off because of other macro reasons, which is if you see now , the average home price or median home price pre-covid
was close to $272,000 if you look at the average of the country, and now its gone over 40 8,000 dollars, so your down payment is substantially increased which is pricing out a lot of people, and now with the mortgage rates going up, it's going to become even more difficult for a lot of people to buy a home, so in my estimate i think by year-end you get back to normalized pricing fees around 5% to 6%. liz: i'm glad you just brought up mortgage rates because i think that people need to understand that back in january, mortgage rates for a 30 year fixed were averaging around i don't know, 3.76 or something like that. now we're looking at, according to credible, 4.875% for a 30 year fixed mortgage rate. are you seeing change in behavior with these rates rising >> definitely, liz. i think what we're seeing is
that the american dream used to be buying a home, but given that right now, the prices are so high and now the mortgage payments have gone up substantially is pushing a lot of people to renting homes, so either homes or apartments a lot of these migration to sun belt states is also happening so it's a mixed bag. on one hand, people have the wages have gone up, but if you look at the mortgage, the monthly mortgage divided by their total wage, it's at the highest after 2007 and we all know what happened after 2007 so i think that it's just pricing a lot of people out. the wage growth hasn't kept pace , but the rise in the mortgage is inflation the bottom line. liz: clearly, how do we make money in this atmosphere, that's what your business is. >> yeah, if you know, look, we own tons of apartment complexes and multi-family units across the country. look, if inflation is the biggest fear, hard assets or real estate is where the
returns come from, if you look at last 50 years of history , the rent growth has always outpaced inflation by 80 basis points, so look, in an inflationary environment that we are in currently, there's no better place for people to invest in real estate. liz: well, that's what my dad used to say. it's long term though if you can afford it and rents have been skyrocketing, so as we watch this story we'll be watching everything that's happening in the real estate realm. thank you, good to see you. thank you, liz pleasure being on liz: from home prices jumping to oil prices, you'd think with oil prices not necessarily the all-time highs, but very close to them, but oil companies be rushing to bring rigs back online, but that's not what's happening. we're headed to the golden state to find out the real reason the rig count is still in a way stuck in the mud. closing bell 40 minutes away, the dow continues to climb we're now up 310 points. it's a decent day for the
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liz: oil prices have dropped 8% over the last two days, but even with the drop, crude is still at 15% since the start of russia's invasion of ukraine. this has oil companies scrambl ing to boost output to bring down the prices, but are they a little bit behind here? rig count, this is a leading indicator of oil & gas o lien demand, and here in the united states, baker hughs calculates this. baker hugh's oil rig count number right now is 531 and while the rig count is steadily increasing, it is still way below the trends we've seen at other times when we saw very high oil prices. why are the oil companies behind right now? let's get to kelly o'grady we sent her to huntington beach, california to explain why the
rig count is still low and too low, i guess, kelly to bring the prices down. >> yeah it's good to see you, liz. a lot of it comes down to an uncertain regulatory environment. now you mentioned that the rig count isn't tracking historical data so i want to zoom in on that first so normally the number of active rigs will increase with prices because, you know, oil companies, they want to capitalize on potential profits by investing but as you can see on the chart supply ultimately hit the point when prices start to lower. the rigs today simply aren't keeping pace, now, online oil rigs peaked back in 2014 at the tail end of the last oil boom hitting 1,600 active rigs prices were back under $100 by then yet its rig count is triple what the we have. experts say policies in place have companies second guessing their strategy. >> regulatory policy and policy in general is key, and to have some uncertainty as to what the administration might do, if
there's a fear that a project might have the rug pulled out from underneath them as keystone xl has been on multiple occasions. >> now, this hasn't stopped the administration from doubling down though. they made it very clear that they believe corporate greed is driving up oil prices, and are again proposing to eliminate tax breaks for oil & gas production. a move that would potentially drive up costs and decrease production even further. complicating the situation are supply chain and labor challenge s. what's used for hydraulic fracking is in short supply which is how quickly oil is produced and additionally oil companies indicated they intend to be more financially responsible than they have been in past boom and bust cycles, so while production is ramping up it's a slow process and analysts say those prices might be with us until the end of the year, maybe even next summer. liz: well, we had an analyst on yesterday saying buy every dip because these prices will continue in fits and starts to go higher kelly thank you very much and by the way fox nation
and fox business are hosting the energy independent summit today. fox business anchors reporters and special guests are featured in the streaming special at rucc a oil on staten island, log on to foxnation.com. listen you have to understand why prices are moving higher and sometimes lower, and fox nation is going to have that information for you. thanks to fox business talent. the u.s. proposing a semiconductor alliance to cut china out of dominating the sector. former state department official keith crock has been leading the effort and has now been nominated for a nobel peace prize because he went to taiwan even as china said you better not. he joins us next in his first interview since the prestigious nomination on how the u.s. can take the lead once again in semiconductor manufacturing. closing bell 32 minutes away, we've got the s&p 500 up 53 points it only needs to be up 12 at the close to get out out of
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liz: you know, we've told you about this but we need to remind you the semiconductor shortage is so serious that about two weeks ago, ford a announced it's decided to sell and ship vehicles without microchips that power non-safety features and we do have ford jumping about 6% because they unveiled the ford f-150 rattler, can't wait to see that but regarding this chip shortage a fix might actually be on the way, thanks to a chip alliance. in an effort to keep china's control of the semiconductor industry to a minimum, at least tamp it down, the u.s. is proposing an alliance with taiwan, south korea, and japan. now china does lead the world in semiconductor manufacturing and it continues to fast-track its own development announcing subsidies for local chip
developers, but, can this alliance work to change that? i want to bring in the first and highest-ranking state department official who had the guts and the strength to visit taiwan even under china threat, he was the first official in the u.s. to do that since 1979 his bravery laid the groundwork for a crucial u.s. semiconductor partnership joining me now in a fox business exclusive, and for his first tv appearance, since getting nominated for the nobel peace prize, is former u.s. under secretary of state for economic growth energy and the environment keith crock. i can't believe, congratulations . >> well, liz, thank you so much what a humbling honor it is but these things it's always about the team. we had this amazing -- liz: no, no, it's about who you're up against, zelenskyy. >> well, by the way, i'll tell you what. his courage inspires the world. he is a hero. liz: well if he wins can you
thank the "clayman countdown." >> by the way, well, i'll tell you probably give it to zelenskyy. liz: so great. so great. >> and it's really made me think about, you know, the heartbreaking violence that's going on over there, and the courage, and it makes me think about that trust principle , and meeting that clean network alliance of democracy is now more than ever to take on these totalitarian but i've got to tell you yesterday i was up at west point , and when i see these men and women cadets, these transformational leaders of tomorrow, i'm more optimistic than ever, because democracy is under threat. liz: that's saying a lot because you are very optimistic on a regular basis, and of course, you had run many companies, you were ceo of docusign. you are a business head but with an international global perspective. china has not exactly spoken out
against russia and the ukraine situation and china is our, well you could say our business enemy when it comes to semiconductor manufacturing. tell me exactly how you think this new alliance between the u.s. , japan, and south korea, taiwan might work. >> by the way it's going to be absolutely powerful, and this is something that we had been working on at the state department, when we onshored tsm c with that $12 billion onshoring and now $350 billion of investment and jobs are coming here to the united states. liz: look at the stocks right now, intel, broadcom, qualcomm, nvidia, texas instruments are all moving higher here on the news that finally, we're going to get a big push here. you just saw the news about ford and many other companies are trying to figure out a way to deal with this semiconductor shortage. >> and it's so important because this is the most important industry, securing that semiconductor supply chain because it lays the foundation for everything. i was just with secretary of
commerce last week and we're trying to get this united states innovation and competitive act passed. we talked about that one before, which is a combination of the chip act and the endless frontier act which we really need, as a country. we need to get this bill passed, because you know it's just like in the old days being on a 90 day shot clock, this is a national imperative, liz, and by the way, this is a bipartisan bill. we need to make it happen. liz: we definitely do but let me just explain to our viewers in a way and you know this better than anybody. it's a very complicated mechanism when you talk about manufacturing, because south korea was with his alliance, of the united states, much of their manufacturing is actually in china. how do you extricate yourself from that? >> well the key thing is you don't want to be making the most sophisticated chips over there, but i'll tell you one thing that has happened to the united
states. we invented the semiconductor business, right? it is the human capital that goes into this , so for example, this tsmc plant that's being built right now, 60% of the people who work in the production there are master 's degrees and higher, so this is some of the most sophisticated manufacturing ever , and it moves fast, and it goes in lifecycles of two years. liz: are you worried about taiwan? you had the gut toss go to taiwan and flout china. you got sanctioned. you can't go to china, can you? >> by the way, neither can my family. liz: they sanctioned your whole family? >> remember you asked me that question, it was second to last day before my term ended and i said hey, i think i'm going, and , you know, i will not bend a knee to emperor xi, and why should i react when i can act,
so yeah. liz: well but that said as you spoke to the u.s. naval academy yesterday and the general said such incredible things about you , he said, you know, he doesn't know many people that he could just throw a uniform on and you could actually lead battalions because you have led business teams. it's just amazing how you're able to do this , but what does it say about xi and china, if they look at russia and russia is somehow allowed to snap off gigantic pieces of ukraine whether it's the crimea that they can look at taiwan and go in there and say this is ours now. militarily. >> by the way, liz, that's what makes it so scary, because we've learned a lot from the ukraine. we learned obviously a lot from their courage, but we've also learned the importance of legitimacy because xi and putin will rewrite history. oh, yeah, taiwan was always part of china. no it never was. it was a dutch colony run by the
japanese, and so what putin does, is he goes well if you help out the ukraine, then it's equivalent to invading russia, so we can hit the bomb, and so this is why, and we talked about this at the state department. it's time we recognize taiwan as a country, what they really are, and, you know, you talk about courage and can you imagine the people in taiwan. that goes everyday, and then think about the ukrainians and you think the sniper rifle, and bombs are going off all around. liz: unbelievable. >> that's courage. liz: it is and we whale wait to see about listen, this is a classic case of it is an honor, just to be nominated. we're honored for you, congratulations. >> thank you so much, liz. liz: keith krach, formerly of the trump adminitration state department congratulations, and it's good work, thank you. >> thanks so much.
liz: the exodus of the wealthy from high tax areas not only impacting city and state coffers but municipal bonds are now feeling the pain of the rich and charlie breaks that next, it's an important investment story, and coda, that incredible movie which won best picture sunday night at the oscars bringing attention to the trials and tribulations of the deaf and hearing impaired. wait until you hear the story of the businessman whose dedicated his life to helping this problem he isn't even a doctor, and he's developing a way to regenerate lost hearing. it's in this weeks addition of my everyone talks to liz podcast , david lukino the ceo of frequency therapeutics is working on a drug that curing hearing loss. you've got to hear this one, get it on apple, google, spotify anywhere you get your podcast closing bell ringing in 19 minutes dow jones industrials now up 330 points, remember, session high up 416 can we get there? we'll see , 19 minutes left.
liz: new york's mass outflow of very wealthy residents now impacting the muni bond market, as borrowing costs rise. charlie gasparino is here with the scoop. this is a classic for every action there's an equal and opposite reaction. charlie: you love the french terms, right? [speaking french] do you know what that means? did i say it right? liz: i don't think so. charlie: how do you say it? liz: unique is a french word. charlie: [speaking french] it's funny that those who know this word, i stumped you. liz: if you're trying to say
unique, unique is the french word. charlie: can you put a little definer on the screen? anyway, the muni bond market is very unique. it doesn't often trade like treasuries, when interest rates rise, it doesn't rise in tandem or fall in tandem, because there's a whole demand aspect to it because it's triple tax, it's a tax haven. liz: okay. charlie: so whatever we say here , there's a little guessing game and there's an art to this , in looking at muni bond prices. what i've been doing and having some of my sources doing is look at you found the definition. liz: yes, i did find the definition for unique, if we can -- charlie: no, no. liz: unique. charlie: you know -- liz: i'm right, you're wrong.
that's what a year can do for you. charlie: [laughter] okay, so but in any event, so i had my trading sources, this is important, sorry to make a joke out of it, but look at new york city bonds in the sort of context of treasury yields and treasury yields as you know they are going up. new york city bonds have been going up too. they have been going up twice as high as other bonds from other municipalities. what you're seeing here, at least according to my muni bond sources, is that new york city bonds are suffering from a lack of demand. now, you would say why is that? taxes aren't going down in new york. they clearly aren't going down in new york city, and the reason for that is, liz, is because there are less people here, and this is starting to hit the muse any municipal bond market in a time when new york state and new york city are issuing a ton of
debt this legislature in new york state has not cut stuff and high debt and high tax states and new york city has plenty of infrastructure needs and they are suffering from a lack of demand. now how much this is costing, i can't tell you, right now, it's just, you are just starting to notice it, but you know, if you look at sort of estimates, listen, one number that gets thrown out there since the pandemic, 3 million people have bolted the new york area that especially downstate. it's probably too much. i think what you can reasonably say over the past year, something like 300,000 new yorkers have permanently located to florida. a lot of them are high net worth people, who buys municipal bonds well 40% of the municipal bond market either actively, owning the bond or passively through mutual funds, are rich people looking for that triple tax-free thing that you get. it's exempt from taxes. they are bolting the market right now. now, again, we can't say whether
this is a massive secular trend whether it's costing new york city, we don't know yet, or new york state for that matter because it has to have an impact on state bonds as well but clearly what we have right now is a lack of demand and those people fleeing are hurting the market. now, does that mean we're facing a mid-1970s financial crisis in new york city right now? i would say no. one of the positive things is that new york city and new york state is flush, both of them, are flush with cash from the federal government for that pandemic relief. we should also point out that pandemic relief is going to run out in like two years. that's not going to be there forever. new york city is going to have a massive problem issuing debt much higher debt costs if this trend continues, and it's going to hurt, by the way, it's not just on debt. rich people spend money on real estate. they spend money on restaurants. remember that. when you attack fat cats, when you are aoc or the rest of them , who just say these are the worst people in the world, remember, they pay all the bills
liz: they hire people. charlie: they pay the bills in these high tax progressive states like aoc. liz: well hopefully people in new york maybe bought amc friday , because it's seeing a 44 % -- charlie: what's going on? liz: i'm just trying to bust charlie's chops but look at this one week chart, up 87% in one week. charlie: because your friend adam adam -- liz: adam aron. charlie: [laughter] he went on your buddy jim kramer 's show to pump the stock and that's what happened. liz: are you saying investors are dumb and they just listen and think that -- charlie: i think some of these amc people -- liz: i think they are doing research. charlie: really? so you think it's true that ken griffin is manipulating the stock and there's a mother of all short squeeze coming, by the way the stock traded as high as 77. do you think that's true? liz: i don't even know what you just said. charlie: because that's the research that the amc apes
do. liz: but he bought a gold minor he's listening to it. charlie: you got the shaft, now it's the other way around, right she got the gold mine, amc apes got the shaft. liz: liz: thank you charlie gasparino. when we come back if you think every stock is a real asset, think again. this is a touchy topic so to speak, but today's countdown closer tells us, why you're wrong and where you should be putting your money to work right now, and it's not just gold. real assets, what are they and how do you invest in them? closing bell ringing in eight minutes, dow is up 295. ♪ i may be close to retirement, but i'm as busy as ever. careful now. - thanks. -you got it. and thanks to voya, i'm confident about my future. -oh dad, the twins are now... -vegan. i know. i got 'em some of those plant burgers.
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this hour. it dropped more than 10% from the march 8 low. that means it was in correction. you see it here up 10.9% with a gain at the moment good you enough at least 52 points to get it comfortably out of correction. four more minutes. ever heard of real assets, real assets? people toss these things around. we're not snobs. we don't assume you know what they are. they are basically physical assets you can invest have intrinsic work due to their infrastructure. they include infrastructure, precious metals, natural resources. our "countdown" closer says she believes investors should consider real assets right now that confer inflation resilience in your portfolio. joining me with 27 1/2 billion with assets under management. we have ethan devet. great to have you, ethan.
right off the bat i want to know which particular assets you believe investors should be right now? >> we're a big believer in real estate and infrastructure right now. we talked about some of the themes that changed marks, volatile stocks during the year. the themes that we have been stressing real importance of real assets as a way to confer inflation resistance in a port he will. and what does that mean? these are the type of assets either explicitly keep up with inflation, payments on rental properties that will have inflation linkage in there or inconsistent with inflation as they tend to keep pace with an inflationary environment. we have to insure that our clients can preserve the purchasing power in their portfolios today. we are encouraging some time, not just recently investments in real assets. liz: you also like battery storage. that is another sector that you are looking into.
specifically you how do you feel that battery storage is going to be that really important place and how do you vet these companies because many of them are incredibly new at this point? >> it is true. this is probably the other crosscurrent we're seeing which is around the concern around energy security and the transition to more sustainable forms of energy. we're seeing this push all towards renewable energy. as we look to electric vehicles, we look at some of the meme stocks as your previous guest mentioned many stocks have become meme stocks because they have a connection to electric vehicles. we're expecting to see a surge for demand of electric vehicles and electric vehicle batteries and many other batteries. you need somewhere to store that. battery storage is an area we expect to continue to grow. this will be a theme we need to have investors access to. as you said there is new, there will be vetting, we'll see some, just as green washing, we'll see sustainability washing, that
some have sustainability veneer they don't deserve -- [inaudible] liz: we're looking at a very strong market at least today and we have seen the s&p has powered much higher over the past couple weeks. at the moment the dow is climbing 338 points. the s&p is out of correction territory. where do you see the markets in the second half of the year? >> i see them continuing to be fragile. this is a very volatile environment we're in. we're seeing geopolitical crosscurrents starting to concern markets. inflation numbers are also again not showing any side of subsiding. we have unpredictability of what the fed is likely to do in terms of interest rates. so markets have a lot of news to digest. they may face the first 50 basis point interest rate hike they have seen in sometime. as we see that i don't have doubt that not everything is in right now. i expect a bit more volatility and fragility. we see economy is strong.
demand for labor is there. that is strong underminute pinning. there is lot of funds on sidelines. money market funds are at record mice. for that reason -- liz: great to have you. [closing bell rings] boy, a nice day for the bulls. the dow has a gain of 334 points. the s&p exits correction. ♪. larry: hello, everyone, welcome to "kudlow," i'm larry kudlow. so it used to be the presidential fiscal policy was used as a weapon to promote economic growth. i can go all the way back to president john f. kennedy who promoted 5% growth. he slashed taxes to get there following the stodgy, high-taxed, multiple recession eisenhower years. richard nixon promoted growth but the wrong way by devaluing the dollar and gunning the money