neil: all right. this looks familiar right now up a few hundred points. down a few hundred points. volatility rules the roost. charles payne to help you out. hey, charles. charles: neil, we have a great lynnup, hopefully we can help people through it. neil: thank you, bud. charles: this is "making money." what a blow. the cpi number was supposed to give wall street and main street a sigh of relief. instead it brought more pain and reminder this problem will simply not bo away easy. pendulum of emotions always swings too far in either direction including investor pessimism. is there blood in the street? remember what warren buffett said. it is the ultimate buy signal.

price of food saw fastest one year jump since 1980. will the midterm elections give us more than lip service and fingerpointing? folks out there sure hope so. what happens when stablecoin implodes? what is the behind the run on-line that. what does it mean for all the crypto trade? i have a monster lineup, big boy armstrong, brian belski and brian health done and of course our usual all-star line up. you have questions. we've got answers. it's a big day. all that and so much more on "making money". ♪. charles: it's brian shannon. all right. don't fire till you see the whites of their eyes, right? one of the most famous quotes came out of the revolutionary war. these days it seems the marching orders for any would-be buyers. they're waiting for the moments until they see the whites of

fear in the eyes of most investors. are we there? another day of gyrations driven more by emotions and a guessing game. emotions on full display this morning acpi report came out stronger-than-expected. it immediately dashed hopes that maybe we would see or get the first official signs of peak inflation. the knee-jerk reaction, selling. big time. then of course it gave way to the guessing game. rationalization game. cpi report, it's a trailing indicators. maybe there is trailing peak inflation. we had a little bit of a bounce in the session. the fact of the matter there are a lot of signs in the economy that we're slowing down. that complicates one thing, the whole soft landing thing. meanwhile the pain threshold seems to be tested everywhere. anywhere this market, give you example yesterday, there were 27 new highs, this is between the new york stock exchange and nasdaq combined versus 2773 new lows. coming into today's session,

less than 8% of the stocks in the s&p tech sector were above their 200-day moving average. s&p 500 itself, only 43% of the time have been up. think that's lot? it is not. it is fewest sense 1974 at this point. average decline of stocks coming into this session down from 52-week highs, enormous. joining me to discuss, we've got gary kaltbaum, phil blancato. start with the cpi report, guys. phil, how much has this report complicated the task for the fed? >> i don't think it complicated them at all. i hear your points where we are on inflation and there was a bit of a cooling there. let's say level off to be quite honest with you. fed got what they wanted, if inflation levels off don't have to be as aggressive with the next rate hike. more importantly this is what they expected. they got what they expected here. they have opportunity to go 50 next time. that is sign for the market.

to answer your question are we there yet? no. three or four, 5% on s&p. then we get there. then the fed will indicate they're getting to a point having impact on prices. seeing homes coming off a little bit. seeing inflation level out a little bit. i think it is the beginning of peak inflation. charles: gary, i thought today's number the gave fed opportunity to go back to 75 basis points? >> the market is playing chess and the fed is playing checkers. inflation in the 8s and their fed funds rate is under 1%. fed head bostick and kashkari came out in the last day and said they are not behind the curve. janet yellen came out and said the fed is fighting them mightily, fighting inflation mightily, and the markets are upset with them bsing the american public and the market. it is sitting there straight in our face right now.

it is amazing to me how they have completely dropped the ball. we're not, 3% inflation, not at four, we're at eight, maybe we'll come down to 7. we'll still be at seven. i don't know where it's coming from that they're doing their jobe. they're doing nothing. they're not even on the playing field at this juncture. the market is yelling and screaming at them on daily basis. we're knot even talking bond market. look what is going on with stocks right now. of the markets have big ears and yelling, screaming do something more, do something different and they just sit. we got another six weeks to the next fed meeting. charles: with that in mind, gary, stick with you for a moment and go back to you, phil. i know you don't really have sort of the buy signals to the downside kind of thing. you're more of a momentum guy, but at this point, everything is annihilated. are there certain names you're starting to look at that look attractive. you don't have to buy them today, you got to say gosh, i will pick that up soon? >> i'm not a momentum guy.

i'm looking for things that emerge out of bear markets and start emerging into -- charles: individual names. >> right. and right now, and we've been saying, the only then that is showing real leadership is the energy but that is even wobbly. and i got to tell you, if you like cereal, if you like soda, if you like food, that's the areas that are showing up 5% within the highs. post, kellogg's, general mills and that is yelling and screaming at the investing public we are in contraction mode when the most offensive recession resistant areas are being jumped all over by the very smart institutional crowd. it speaks volumes and means volumes. i just simply listen. now we're just in obliteration mode in technology. had 12, 13 years of monstrous gains and now the other side of

the mountain. charles: so, phil, you know, there is a huge amount of outflows right now out of financials, out of real estate investment trusts and it is so interesting because these are the sectors we were told as we were coming into this situation that were going to do better. now you kind of warned us about the financials but where, what's going on here? and by the way the bond market action is curious as well. >> yeah. because respectfully say i think we're in middle of a cyclical recovery. never in the history of the united states have we had the consumer this strong. this is where it is coming from. charles: is the consumer really that strong? >> they are. you have 2 1/2 trillion dollars in cash. you have the highest wages in decades. lifting people out of poverty, creating them to be spenders. we outspent inflation last month the fed is right. gary i don't mean to disagree you. >> can i stick my nose there? the market taken away 22 trillion of house hole wealth

this year. credit card families are skyrocketing over the last six months. i'm not so sure that one-two punch says the consumer will be in great shape going forward. i'm always hopeful, i deal in numbers and i deal in facts. those two things right there, screaming a lot at me. i think the markets are reacting to just that. >> no. charles: i will say, phil, i hear a lot of folks on the street throw 2 1/2, 2 trillion number around that it is evenly distributed. don't you think the bottom half the income number is suffering now? >> no, i don't. got 14% increase in wages last year. minimum six. that is not true. debt to asset ratio best in american history. savings rate, best in history. charles: what are you looking at? you're always taking these compelling action. i really appreciate it. because you're always typically ahead of the curve?

>> very simple. in cyclical recovery, finally financials are looking a bit better. what you need to do right now folks, buy dividend. be paid to wait around. in every single rising rate environment we made money in dividend-paying stocks. those are consumer centric, or mid-cap regional banks i really like. i like larger banks down in cap and cyclical sensitive areas you get paid a nice dividend to wait out this inflation. charles: gary, real quick, less than a minute, i have to ask you about coinbase. oh, my goodness, to me this is shaping up another study what to avoid in the market. so many problems. the problem that we've learned this week with coinbase and teleton, so many others is -- peloton, by the time the management fesses up the stocks have already been crushed. >> coinbase, robinhood, going into my archives, these companies came out and basically had consumers buying into bubbles at highs. simple as that.

when coinbase became public of5 million-dollar market cap i was taking about that. rivian coming out with 160 billion-dollar market cap, equal to ford and gm even though they have 260 billion in revenue and rivian didn't sell a car. robinhood, where most of it was, crypto. it is a great lesson for people going forward that fundamentals matter and you better stay on your game and never ever, ever, let stocks drop as far as they have gone because very tough to recover both financially psychologically. charles: absolutely. gary, phil, great stuff. i always appreciate it. both of you. thank you. >> thank you. charles: folks, total reality of runaway inflation shaking resolve of this market as you can see. i just mentioned the bond market is getting a bid and also the vix. that is kind of lower today. what are they saying? does phil have it right? i will take to you the chart school. i have brian shannon, one of the

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charles: so over the long term i always believe fundamentals lift stocks where they're supposed to be or not supposed to be, right? that journey is always interrupted by things that can't be found on income statements or balance sheets. these periods of time when the bipolar nature of investors drive the market, fundamentals, really, listen, more than fundamentals it poses a threat to you. you may buy too high, might buy too low or sell at the wrong time. that is why i like to have charts as a guide. technical analysis can be come complicated in itself. my next guest has a great record track record, vwop we have brian shannon. brian, i want do ask you, why is technical analysis is so

effective. >> technical sal sis, charles, shows what people are doing with their money instead of what they're saying. peloton, some other companies are just fests up now to having problems but the stock itself has been telling us for a while that there's been problems. that's why it is down from 175 into the low teens right now. the markets are discounting mechanism and it discounts the past and looks forward to the future. the market knew there were problems for peloton. charles: what is special about anchored wwop. anchored volume weighted average price. the stock was traded over any party of time. with if he look at average price, weighted for volume, to the average true price that it traded at. if we're below volume weighted average price it sells us sellers are in control from that point. if we're above it tells us the buyers are in control.

obviously we're below the volume weighted average price for most stocks in the market now. charles: look at a case study that would have saved folks a ton of money. go back to peloton. i have a few arrows. what do the arrows indicate here. >> the arrows first off where the stock came public. that's always an important measuring point. that is the point where, you know, it began its public life and where the value is supposed to be. for the first eight months or so you kind of see we crossed back and forth above and below that. then you know, late last year, we started coming down to it and testing it. testing it with more frequently. charles: these areas there. >> above the volume, as long as we're above that, that is what the two arrows are. as long as we're above it the average participant on the long side was making money, the average short was losing money that ended abruptly in early negative when we saw the large

candle down. that really put the short sellers in control and buyers obviously have had a very difficult time since then. charles: theoretically here where you might have between 75 and 95. let's talk about the overall market here then. what do you see with respect to downside? does this method show you where support may come in? or do you wait for it to turn around for certain buy signals. i know traditionally, resistance becomes support, support becomes resistance, are we in that kind of a scenario? >> for the s&p 500 for instance, we want to measure our volume weighted average price from an important event. the most important event the last couple years was the bottom we saw from covid in 2020. and if you look at the s&p 500 chart, put that volume weighted average price on there, you will see we're still above that. that volume weighted average

price is 381 on the spy. here we are 392, 395ish. so we're still about 4% above that and i don't look at it, that is a place to magically buy if we get there but instead it is a level of interest and as you just pointed out that's where we start looking shorter term time frames to say, is there actually evidence buyers are gaining control here? and we do that by looking at shorter term time frames. charles: okay. >> i would not just stick a bid in at that level and say, here is my magic bottom. charles: we tighten up the reins, move closer to the screen, maybe get our hand near the buy button but don't go just yet. brian, thank you very. appreciate it. i want to bring you back. keep the discussion going. this is very valuable for our viewers, thanks. >> my pleasure. thank you, charles. charles: coming up, should the white house put a cap on gasoline price, folks? or maybe unleash proven crude under our feet? tweet me your thoughts. price controls versus drill,

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♪. charles: so for the last couple weeks there have been signs that large swaths of the economy have actually begun to slow down. so it was only natural to think that maybe inflation had peaked as well. of course we've been playing this peak inflation game for at least six month now and we keep getting it wrong but some prices have come down from month over month. used vehicles was down, apparel, gasoline down 6.1%, but we know it roared back to a new record high. this sent stocks lower and bond yields higher.

since then stocks gained equalibrium, bonds are drifting and we're going other way again. we have yaris you, i was reading your notes, you predicted this perfectly. you said they would be lower but higher than wall street estimates. so this wall street consensus was it wishful thinking? >> i think it was. when you look what is driving inflation, you're looking at transportation costs, food costs, shelter costs, combine that with the last wage print, five or 6%, the expectation we'll roll over rapidly and see inflation pushing drastically lower than we printed last month that was probably too wishful. we should expect to see peak sometime around now but a slow roll over. we should stablize five to 6%. charles: will we stablize this year? >> very likely, yes. we have to attribute that to fed

policy tightening which should help us stablize as well. charles: are they tightening fast enough? today i thought today was another sign for the federal reserve, hey, go 75. you have the green light, stop messing around. >> i don't think they tightened fast enough. what is priced in is probably fast enough over the next 12 to 24 months. it is another month before the next fed meeting. we're still sitting at funds fund rate at 100 basis points so that is not fast enough. charles: you said it would be tough for the markets today. >> yeah. charles: i said, my man, two out of three ain't bad. looks like you might be -- could this move, if we're down 3% by the end of the day, even 4%, something has dramatic as that, could that be a climactic selloff? >> that could very well be. we're oversold. but we had not the washout with big capitulation. if we were down 3, 4%, that would be a pretty big

capitulation move in my opinion. charles: the president spoke yesterday. he talked about a whole lot of things. even threw a new term in the lexicon, ultramaga. >> yeah. charles: what can he do, what should he be doing, the is pretty obvious trying to stay apolitical on this, barbs, fingerpointing, blame game is not working. >> i agree. what will not work subsidize demand in this environment. we know households are feeling pain, when you have excess demand, adding to the excess demand will not help the situation. we have supply shocks in transportation, supply shocks in labor, supply shocks in energy. to get those prices, those inflationary pressures down. you have to have supply increases. that is going to take time. subdiesing demand and pointing the finger will not solve this problem. charles: i'm looking at the bond market, looking at tlt, thinking it is looking intriguing. are we, is it going to be a buy sometime soon? would you be a buyer here?

>> well for the most part, no, we're telling clients to slowly reduce underweight to long duration treasurys, long duration corporates. we would not be a outright buyer. yields need to get up to a level at very left, 10-year yield which the tlt is closely correlated with, 10-year yield 3.25, to 3.35 which likely where the fed funds rate terminate this is cycle. charles: is the great 40 year bond rally over? 10-year bond rally is it over now. >> very likely. we're seeing an uptick in inflation, seeing cyclical pressures on the inflationary side. we're in secular up tick this inflation. baby boomers are retired. come out of the labor pool. we have not seen the younger generation enter the labor market the way we would expect. those will create upward pressure on yields for years to come. charles: tom, thank you very much. i appreciate it. >> my pleasure. charles: these inflationary pressures continue to have real world consequences.

investors, you have to take that into account when you figure out how much money, stocks do i own, will they make money, how should they be valued? i want to bring in head of equities for bny mellon, alicia levine. alicia, inflation running much hotter than wage gains obviously. maybe it is already reflected in the market with consumer discretionary, some other names, how much of that, real world impact of inflation, whether it is yields, wages, whether it is spending being so negative is part of this selloff? >> so, charles, great to see you again. i'm glad you started with tom before me because i think the framing of this is really, today was a chance to change the narrative of the market that perhaps inflation could start to come down on its own and what we're seeing in fact yes, we're peaking on inflation but we're staying at a high rate. it will not be so easy to get inflation down in the real economy without the fed.

so what does that mean? it means workers are negative in terms of real wages. that means their wages are not going up as much as inflation rate. and ultimately, with the increase in food and energy costs, there is going to be choices made on the margin about how to spend that wallet. and so, there is a reason discretionary stocks have really not worked for the last few months because there is understanding as inflation stays high. charles: right. >> the consumer is going to be hit. as you and i discussed, the bottom 40% of income here in america actually no longer has positive real disposable income from all the trans transfer pay. they're negative compared to before the pandemic. that is what we're going to see. we'll start seeing choices from that part of the population. charles: we're starting to hear that. this earnings season we hear more and more companies say weaker demand. of course has a lot of people worried about the second half. earn estimates have gone up

pretty high. some are second-guessing maybe they're too high. how are you modeling this with respect to how of the s&p will earn around what kind of relationship should the price-to-earnings ratio be? >> so we have been conservative in our earnings estimates for 2022 and 2023, precisely what we're talking about. we think inflation on the input side will stay pretty high. because of the sticker shock for consumers, it is going to affect end-user demand and what the companies can actually sell. a little bit lower on revenue line. higher on input cost side. you wind up with lower earnings. we stayed conservative. right now s&p earnings are trading 17 times next year. that is pretty much average over the last 25 years. but the truth of the matter is, it doesn't stay at 17. it is usually a weigh station on the way up or on the way down. charles: right. >> trough multiples can be 14 times. they can be. they tend not to stay there

either but it looks like we're going lower simply because the inflation story is not changing on its own. so the market doesn't have anything to grasp on to here to turn the story and turn the sentiment around. we think earnings, we start to see it second quarter. charles: i'm sorry to interrupt. i have less than a minute, 30 seconds, how should ideal portfolio look in this environment then? >> so look, we remain conservative here. we remain defensive. health care is fine. utilities are fine. we still like energy because of the discussion you just had about we're still going to be challenged on the supply side with energy as it remains higher. these companies should work well but we do think that the discretionary could still be at risk. don't forget housing and autos are the most exposed to higher rates. so we would be defensive here. there is an opportunity to start picking up some of those really great companies that are now trading at below market multiples, that simply got

thrown out with the bath water. you have to be very selective. if they miss the quarter at all you can't touch the stocks, not net. cannot touch it. charles: in the cpi report we saw biggest strength in health insurance, utilities and energy, right? that is where everyone is spending their money. alicia, thank you very much. >> thanks, charles. charles: folks, coinbase plummeting. now warning bankruptcy could actually have them taking user funds or user funds would be up for grabs. it's a scary, scary thing. we'll give you shocking details on that. the ultimate bull will join me in studio explaining why we should stay the course as this roller coaster ride only seems to go one way and that's straight down. brian belski on deck. ♪ meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪

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charles: well there is a mad dash on wall street by analysts to cut their stock targets as fast as they can. firms continue to lower their targets on the s&p for this year and next. my next guest started the year as the most bullish and he has not budged. bmo capital markets investment strategist brian belski. brian, inflation, recession, stagflation, all of the above there will always be an impact on market and stocks. how do they impact or change your secular bull market thesis? >> it's a great question. amazing to be on set with you. charles: great to see you. you look fantastic. >> thank you. i appreciate that. well i don't feel fantastic. i don't like when my portfolios lose money and my clients lose money. charles: right. >> that is the difference relative to many other strategists an economists on wall street because they don't run real live money. i feel from a sentiment perspective how negative i am on myself we have to be close to a bottom. from a market side of things we

are still way, way, way in the camp of we're in a 20 to 25 year bull market from a secular basis. doesn't mean we can't have a secular bear market and correction we're having now, by the way that is healthy, but recalibration what we'll pay for stocks, that is really the question from here and did we get the inflation part wrong in terms of transitory versus, versus not? probably, right but at the end of the day, now it will be when the rate of change of inflation really starts to decelerate and roll over. charles: by the way, what you said i agree. listen i have, for 30 years i've written a newsletter. people are losing money right now. they look up to me and, i know that these periods are coming. you know these periods are coming. with that in mind what do you say to folks? listen, i'm extraordinarily bullish, this bull market will last five are to 10 years but there will be pockets that will hurt like hell.

do you give it to them straight like that? >> i do. sometimes i'm blunt to a fault. i only know one way to do this and be direct. the thing is i think from a societal standpoint the last 20 years we've been inundated all this information, we make bullet point conclusions. the market is excessively binary as you know and we could have a binary move to the upside. the biggest thing i see from a sentiment perspective, when we talk to institutional investors we're not positioned for any kind of potential surprise upside move, charles. everyone is positioned to downside. that tells me we'll have a squeeze. charles: everyone likes the same idea, the same stocks. by the way a lot of things people like now are super-duper expensive on relative basis. let me ask you this. i got a tweet from eddie hooks. belski is dangerous to your viewers, when the facts change, he does not. what do you say to eddie? >> what are the facts?

charles: the facts, this is the second worst 88 days to start a new year in the history of the market. we're at runaway inflation. there is no confidence in the fed. no confidence in the president of the united states. so it feels hopeless for a lot of people. >> listen, when stocks are down and things go the wrong way that the you don't expect excessively humbling and you know, we try to act justly, love mercy and humbly when we can. the markets done a good job discounting for what is coming. that is the premise how we're going to repay. we have to figure out how to pay for these things. now in terms of the inflation side, i'm not saying it is different this time, i'm just say agoer dealing with a pandemic once in a 100 year event. charles: right. >> it is not academic inflation we saw in the 1970s. this is not the 1970s. charles: right. >> i think the bigger issue going forward quite frankly is unwind of who year secular bull

market in bonds. no one is talking about that. charles: that rotation of money could eventually find its way into the stock market? >> the facts are this, north america, is best in terms of equities. we think assets are coming back to the u.s. and canada because of that we think some of that unwind will be from fixed income. charles: brian, have to leave it there. >> nice seeing you. charles: folks, there are funky things going wrong in crypto world. we have big boy crypto founder ben armstrong. he is one of best. michelle schneider stocks. we'll talk to her about luna, if she was in it and took profits. we'll be right back. ♪. you'll always remember buying your first car.

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charles: the world of cryptocurrency being slammed with one of the more popular stablecoins getting torpedoed. luna hit 119 earlier this month. today it was down to $2.19. treasury secretary janet yellen

mentioned to the implosion speaking to the senate banking committee this week. >> the stablecoin known as terrausd experienced a run and declined in value. i think that simply illustrates this is a rapidly growing product and that there are risks to financial stability, that we need a framework. charles: that is the opening for the framework they have wanted. how big of a blow is this to the crypto world? joining me now bitboy crypto founder ben armstrong. ben, i saw you posted commentary on this. so i know there is a lot of moving parts to it. this is a short segment but i see names like blackrock, citadel, automatically i think there may be some deliberate sabotage. what the heck is going on? >> i don't think there is any question about it there was deliberate sabotage here. one of the beautiful things about the world of blockchain everything is transparent. we can actually find the

transactions of some of these big buys and sells took place. we even know what exchange, according to the reports it was done on the order books of gemini. citadel, blackrock, playing a big role in this. you can't help but think, when you look at the sandwich of, the bread you have, monday where we got the trust act announced as possible stablecoin regulation coming and of course terra luna, or ust, the stablecoin for terra luna, dropping dramatically losing its peg in the middle. and the other bread, janet yellen talking about regulation. they set it up, this happens in the middle, all of sudden janet yellen is calling for regulation. from all appearances it looks 100% deliberate. i will say regardless whether it is distribute or not the fact too many times in crypto we focus on the outcomes. we focus on 18% returns, how exciting that is. people forget the process is

more important. the process and fundamentals laid out in exploitable opportunity for this to happen that was built into you know, to the tokennomics of terra luna. charles: who patch this is up? federal government wants to exploit this, who knows, my been part of the implosion? who patches this up, particularly this doesn't happen to a stablecoin? >> i got to sell you when it comes to algorithmic stable coins i have not had a lot of success with them. when you look at something like tether or uusdc, one-to-one hard peg to asset, in those cases one-to-one u.s. dollar assets in cash versus the supply i think that is much more safer place to be when you're a trader. when you get into algorithmic extended coins, based on supply, elasticity other factors you can be asking for trouble. we vent seen anyone come in and done it over the right way long

term. the government is looking to exploit this the reason the government hates stable coins not because they're dangerous, they that's stable coins being able to guarranty return on stable asset, that is the same thing basically a treasury bond and don't want 6 to 8% from stablecoin and treasury bonds 2%. charles: there is so much i want to ask you. can you come back soon. >> i think hear you're a man. charles: guys like you and us need to get around. talk to you soon. crypto greed and fear index, folks off the chart. greed and fear. is this now a buy signal? i want to bring in market gauge managing director michelle schneider around she is in studio! i got to start with luna. of a few shows ago you said you liked it. you come up with the is sew tariq names i haven't heard before. i looked at chart.

were you able to make profits? >> we got out 80% in april. we hit our trailing stop. that was profitable. we've been out of the coin since april. charles: when you see this kind of a move, you come up with the unique crypto names no one else finds are you okay still with playing around with this space. >> well right now because of what's happened, because we have seen manipulation as your last guest just so eloquently stated, we are really going to keep a focus on bitcoin and ethereum in particular. they're the granddaddies. also they're in bearish phases. i think of the two i would probably watch ethereum most closely tied to blockchain technology that is not going away f ethereum can stablize here and go back over 2500 let's say -- charles: that would be a buy signal perhaps? >> yes. charles: i also saw commodities. you still favoring commodities over equity? >> absolutely and even more so now after the numbers came out this morning and we're seeing the reaction by the treasurys.

yields are actually dropping in the face of higher inflation. what that tells me is whatever credibility the fed had coming in, which of was nominal at best, has now even decreased further, which means that we could be going into somewhat after chaotic situation which we're already seeing in equities, which of course is going to be favorable to gold. the other commodities are already moving. these grains are just unstoppable. charles: yeah. >> is specially wheat right now. charles: yeah. so weird too, because i look what the eu is doing, what we've done and it just, these governments are making things worse, not better. it is just amazing. you know sometimes want to say, hey, go over there stand next to the fed if you're not going to do anything to help. when it does come to the stock market though, what are you looking at? >> right now we really want to see things just really clear out. coming into this year we saw p-e ratios really high. we saw the debt at crazy high

against gdp or percentage of gdp. and so right now this deleveraging we're seeing is very typical. what i would like to see is either from a technical standpoint some real v-bottom type of situation in a very short term that holds, or, i would like to see it get to a point where we kind of start con sal it todaying near a -- consolidating near a bottom. it could be a while before we see returns on honey. charles: you're buying some stocks? >> no. charles: wow. what about bonds? you talked about the bond yields. this week, the last three sessions they have been really intriguing. you know, the inflationary names in general have been kind of odd, going back to these last three sessions. is that something of a signal for you? >> we bought bonds actually, tl t-bonds on monday when we started to see the market unravel. charles: okay. >> we saw that was actually moving up while the market was, its great liquidation. that to me was a sign that

perhaps what's happening now is that bonds in terms of the inflation and the hawkish fed were turning into more after flight to safety. and that really told me that it was time with a very low risk to get in. charles: all right. >> so far, if you look at the board today, it is one of the few things actually up. charles: acting pretty good. >> it is acting pretty good. charles: michelle, you cover it all. appreciate it. glad to have you in studio. >> thanks so much. charles: folks my warning to the white house about price controls, please don't do it. just ask richard nixon. we'll give you that as part of my takeaway. talk about a week of legends, we have double bond king jeff gunned lap. you remember, called the commodities supercycle on this show long before anyone else. be sure you tune in.

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charles: all right, so last month, hungary's government put in price caps on fuel and some basic food items to combat inflation. other european countries are doing the same thing with natural gas prices. this as president biden ponders his next move, there is scuttle put that price controls could be in the mix in the united states and last time of course we used that and this country was after richard nixon and established what they called the cost of living counsel this is in the summer of 1971 and to block wages and price increases and then the american public loved it in fact for a moment it slowed inflation. for a moment, but the gimmick

quickly fell out of favor as prices continued to march much higher. there's also talk of this white house offering a federal gas tax holiday. listen it's dangerous because here is the thing, folk, people might actually learn that the government, federal, state, and local gets 17% of the money from the gas station. the gas station 7%, so with that in mind, you know, he may do it but i don't know if he wants people to be that intelligent or not so here is the thing, folks, the solution. call off the war on fossil fuels and greenlight more refineries. get this the newest refinery in america, the newest, was built in 1976 in garyville, louisiana. now, some of them have expanded but the fact is the climate change agenda, the nimby stuff, they've stopped this major component of the oil complex this would lower prices. of course, you couple that with drill baby drill and golly, i mean, president biden, he could tell the climate change folks, this is a smart way to do it

right? you want to get to green eutopia how about we use up all of the oil and then we have no choice, i'm being far tear us but not completely. the inability of this white house to be nimble on behalf of the american public is playing a role in today's stock market route and i hope the white house is listening becausehe. another crazy session into the close. liz: [laughter] i know, i know, milton friedman said don't blame the white house, don't blame republicans, don't blame democrats, it's all the fed. when the fed does too much easy monetary policy, that causes inflation. charles: he never saw the kind of money we printed in the last two years. liz: [laughter] exactly and even then he thought it was the feds fault. all right, folks, we're looking at the markets right now. it's more u-turn and less whiplash at this hour, markets have given away early gains as investors digest the inflation numbers that remain near 40 year highs, the nasdaq is down