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tv   Making Money With Charles Payne  FOX Business  May 17, 2022 2:00pm-3:00pm EDT

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david: well the markets already have a running start at the cp effect here. you can see they're all in the green but for the real cp effect, here is mr. charles payne. charles: david, thank you so much. we are going to rock and roll. good afternoon, i'm charles payne. this is "making money." breaking right now, market popped out gate, then nosedived. all of a sudden buyers emerged. retailers are looking for more pain, but the question who is buying here? should you be nibbling as well. what happens if the u.s. economy can swifter recession? we ed yardeni on deck with that or more. inflation is taking a toll. how much longer can consumers
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keep up the pace and how has this all changed the investing landscape? meanwhile lawmakers keep cashing in on legal insider trading. my take on how one of the biggest ponzi schemes in history reveals how public servants can make a mockery of the system. all that and so much more on "making money." ♪. charles: folks it has been an interesting day. testing sort of this overarching notion that we should actually be rooting for bad news and even worse reactions when we get the bad news because everyone want this is magical state of capitulation. they want you, the retail investor to sell down here at these levels. retail sales excluding gasoline and automobiles came in much better than expected. industrial production hit an all-time high. that came in twice as well as wall street thought but inflation, it continues to haunt everyone. those numbers we got, the data continues to really hurt us a a
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lot. earnings report from walmart, home depot, both stocks struggling even two different stories. shoppers continuing to get, stocks in the meantime the stock market getting cheaper and cheaper. we have signs that recession may be starting to recede. maybe that will be enough. maybe we can skip recession and we can be home free. i want to bring in yardeni research president ed yardeni. you said you don't see recession this year or 2023. looks like some of the data starting to match that as well. we see five and 10-year breakevens starting to pull back a lot. why is it so important though? we know we'll have a economic slide, right, but if we don't go into recession, what's the difference? >> well the difference for the stock market is earnings. analysts have been raising their earnings expectations all year. they're all-time record high, not just for the s&p 500 but
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also for the mid-caps, s&p 400 and hundred hundred. all-time record highs for analyst consensus earnings expectations. i agree with the analysts and i've had some people say the analysts, myself are all delusional here. we'll have to have recession to bring inflation down. i think the economy is actually in good shape. consumer balance sheets, business balance sheets are all in good shape. banks are in great shape. i just don't see a recession. i think we continue to grow. i think this fear of recession is overdone. charles: by the way i'm in the same camp as you. it has been in vogue to say, wall street has to bring down the earnings estimates. almost every time we have earnings season, 75, 80% come in above consensus. feels like they already sandbagged them to begin with. on that point of valuations, s&p 500, forward p-e ratio is below 17. "faang" stocks, forward p-e is
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below 20. i think at some point they could go lower but at some point do don't you become more constructive and eager to pounce. >> they go lower in a recession. if there is isn't a recession i think we bounce off 16 on forward p-e of s&p 500. that is what we did on thursday, now we're back to 17, 17 1/2. i'm not looking for capitulation. i see plenty of exhaustion. i think people are exhausted. they have done selling. i don't think there will be catch pitlation, selling leftover here. i'm looking for these type of days where any selloff is offset by buying. >> we got that today. it was so interesting. we popped out out of the gate ad went straight, straight down. it looked like oh, boy, here we go. someone is starting to nibble. we got extra bounce an hour ago
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on favorable news from boeing. i like today's favorable mix, ed. not about growth and value. materials are leading, financials are leading. >> correct. charles: is that what we see, accumulation, smart accumulation of these names that maybe haven't been in the limelight or the spotlight? >> well from what i hear in the news seems like warren buffett is nibbling and he is a great value buyer and he sees great opportunities here. that kind of investor seeing tremendous opportunities here for long-term ownership of stocks. i think this is a good place. i'm not guarantying we'll go straight up from here. i think it will remain a difficult market because the fed still has more rate hikes ahead of us but i think next year the economy will continue to grow. economy will be back either close to record highs or at a record high.
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charles: so interesting. warren buffett accumulated 140 billion plus coming into the year. looks like he put 50 billion into place. that is buy signal. thank you very much, my friend. i want to bring in my two davids, bounce send, nelson. 10 metrics, so far only three have been checked off. but look how close some of them are, right? so bounce send, when i think about this, i just talked to ed about it, how much more damage does this market need to see? people looking for the perfect capitulation before buying? >> well the problem is that it's never perfect. there is kind of mixed signals and you've seen flows that actually not helped the contrarian case but you've seen other price signals that have. i don't know exactly where a bottom is but i think it will not be one bottom for all asset classes at once. i think some of the most expensive stock could take
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longer. there are other areas that probably have already bottomed. we have to be active, we have to use discernment. charles: to that point, david nelson, i look at nvidia and i look at a clorox. clorox is more expensive than nvidia. by the way staples the only sector in the red today. i tend to agree with david bahnsen of this idea of a perfect capitulation, they ring the bell and we all jump in to live happily ever after. i don't think that is going to happen. >> i think david is right. i will peg on into that. i'm in your camp. i wrote a piece about this yesterday. i think the bottoming process, and it is a process likely already started but markets don't have to be binary event, i'm in, i'm out. the tape is telling us where to go. i think investors will be forced to unlearn a lot of what they took for granted over the last decade. like it or not, when rates rise valuation matters. even today, some of those very high multiple stocks out there
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like shopify and datadog, last time i looked they were struggling today. to david's point. materials is the leading sector today with earnings acceleration strong, free cash flows, financials strong behind. charles: bahnsen, energy, top performers you were there before anybody else, you were killing it, absolutely killing it. i'm looking at four p-e ratios that is one of my favorite metrics. believe it or not energy is the furthest below on 10-year average. how much more room on the upside is there? >> well the reality there could much more despite the biden administration releasing that philly strategic petroleum reserves you see oil back $20 a barrel above where it was when they made that announcement. i think we have a structural bull market in energy and what is not talked about, charles, what i talked about midstream. everyone is focused own upstream
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producers, drillers there is lot of money for the pipelines. i see forward growth. the earnings p-e ratio you bring up but there is free cash flow. they have more real cash generation. charles: sadly they may have to hide some of it before d.c. tries to take what they're making. let me go on the flipside of that, nelson, 100% of energy names are trading above their 200-day moving average, albeit they are cheap in other ways of measuring. conversely 9% of tech, only 9% of tech above the 200-day moving average. you're a long-term investor. what is more attractive for someone like you, chasing the hot sector with the great fundamental story or buying extreme weakness looking for opportunities there? >> i take the other side of that. that is what a bull market looks like. i don't remember anybody selling microsoft or apple last year because it was trading above the 200-day moving average. i own a lot of tech but i can defend every position based on valuations. semis is one of the most
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attractive areas out there. one of my highest concentration name of semiconductors. reported a strong water, earnings up 16%, 11 times forward earnings, 7% free cash flow. i will run with that all day long, charles. charles: david bahnsen, what are you looking at? >> we like the old tech thesis. people saying new tech, "faang" names are they now cheap? i'm sorry they may be. there could be tradeable bottoms in some of those names but i don't believe a stock goes from 50 times to 30 times has gotten cheap. yet i look at intel, i look at cisco, i look at ibm. they're boring. they're not hot. they have very low valuations and a minute to go, david nelson, jay powell speaking this hour, loretta -meister this hour. have we seen 50 basis-point
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hikes, next two or three meetings, some quantitative tightening, is that any longer sort of a dark cloud now that we understand what we've sort of got coming at us? >> i think what's priced in for the market right now is fed funds rate of 3%. what isn't priced in is the possibility they're so far behind the curve sometime later this year they will have to push even higher than that. frankly i wish jay powell and rest of the fed heads out there, i wish they would stop talking. >> yeah. >> follow what they do, not what they say because there is a lot of misdirection. charles: absolutely. david and david, either a great law firm or a place to pick up good brunch. either one i dig it. guys, fantastic. appreciate it. see you soon. folks have you seen this, the billionaires versus biden as world's two richest people r battling the white house over inflation, the cost of it. we'll go to the white house for the very latest. bank of england make as apocalyptic warning about food prices. should jay powell if he will
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keep talking give it to us straight? brian wesbury will weigh in on that next. ♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq who's on it with jardiance? we're 25 million prescriptions strong. don't worry i got it! we're managing type 2 diabetes... ...and heart risk. we're working up a sweat before coffee.
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charles: look at this, elon musk and jeff bezos is are taking aim at president biden and rampant inflation his agenda created. edward lawrence at the white house. edward. reporter: how would you like to be on one side of this. the one guy is using twitter to criticize the president on inflation. the other billionaire is using twitter trying to criticize the president over inflation. talking about these two guys, the first one jeff bezos the founder of amazon, normally a cheerleader of president biden and elon musk, lost favored with the left when he moves toward as free speech platform. both of them are criticizing joe biden saying government spending is one big reason why we're seeing inflation right now. >> the obviously reason for inflation is the government printed a zillion amount more money than it had obviously.
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so it is like government can't just, you know, issue checks far in excess of revenue without there being inflation. velocity of money head constant. reporter: that's elon musk. now the back and forth with bezos went on on twitter with president joe biden. finally jeff bezos tweeting this, he says, they know inflation hurts the neediest of the most, unions are not cause of inflation, neither are wealthy people. he adds the administration tried their best to add another 3 1/2 trillion in federal spending. if they had succeeded inflation would be even higher than it is today. inflation is at a 40-year high. now the response from the biden administration to bezos has been to shame him. they're saying, of course, one of the wealthiest americans is going to criticize the administration for their policies to help the middle class however little fact check, the middle class is also hurt by
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inflation. charles? charles: just a little bit. while the white house takes on billionaires over inflation, democrat lawmakers, members of media added a new word to the lexicon, called greed-flatihon brian wesbury is here. brian, they want to go after excessive profits, profiteers are making, capitalism has gone too far, it is greed-flation. how would they determine the line on excessive profits? >> charles this is all, it is all politics. we've talked about it before. inflation is political kryptonite so i think, what their goal is to do, somehow, somehow make everybody think inflation isn't kryptonite to their party and that's really
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hard when you have printed 43% new dollars. the m2 measure of money has gone up 43%. this isn't all just about government spending. it's about the fed monetizing that spending. so when the fed creates that money, that is where this inflation comes from. then just one thing on this greedflation thing, if corporations can lift prices at will anytime, why did they wait until this past year? charles: yeah. >> why didn't they do it over the last 40 years? it makes so fence. it is about the bad economic policies our politicians put in place. charles: you mentioned the fed. we learned this morning money managers around the world, in a survey they say they're most concerned about hawkish central bankers. i'm sure our federal reserve is aware of all of this but you know they have been really reluctant to sound hawkish at
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least compared to the past. can't say the same for the bank of england. governor andrew bailey, man he said some things that raised eyebrows. warns income shocks. apocalyptic warning over food prices. he said the bank of england felt a bit helpless. he said workers, especially high earning workers should reflect asking for pay raises out of concern it will fuel inflation. jay powell speaking at this very moment, listen, last time we heard from him, brian, he questioned whether the fed could execute a soft landing. he blamed other factors he can't control but should he be giving it to us straighter than that like the bank of england or is that too much? >> yeah i think he should be, believe it or not. i get it people in the markets worry about that but straight shooting is what we need. the problem is we were telling the fed, i was telling the fed two years ago that their policies were going to do this
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and jay powell in the front of the senate said we need to relearn monetary policy. i will tell you, charles, this is one of the things that has me worried. the federal reserve used, to use a scarce reserve policy, so then when they would squeeze reserves rates would go up and everything would slow down. now we have $7 trillion in excess reserves and we're making a bet that we can raise interest rates and stop banks from lending it. we've never done this before, ever have we done this and so any central banker that says they know what is going to happen, we've never done it. so more power to them. good luck but we have got to slow down this money growth, otherwise this inflation is here to stay. charles: maybe everyone should be honest and give it to us straight for a moment so we can fix it, right? brian, always enjoy these
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conversations. talk to you real soon. thanks a lot, my man. >> thank you. charles: warren buffett you heard earlier in the show he has been buying, that is a inspiration. one of the reasons we're up nicely today. nancy tengler has been buying as well. i can't wait to hear what she is picking up lately. inflation for the consumer, 40-year high. retail sales came in better than expected but obviously retailers themselves are struggling but there are opportunities. i have an amazing retail panel to break it all down next. ♪. new projects means new project managers.
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ex-autos and ex-gasoline and automobiles. control group was much stronger than wall street thought it would be. mixed message of earnings out of wall street and home depot. it is about the ability to pass down higher prices. hp had average ticket, walmart was only 2%. they admitted they had too much headcount. that stock is under pressure all day long. what is the state of retail and more importantly the retail consumer? i want to bring in kristen bents and jharrone martis. kristen, let me start with you, you became leery about retail, consumer late last year third quarter, fourth quarter. what are your thoughts now. seeing retail report right now this morning at least there is some resilience there? >> not only our consumer
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spending but where they're spending. walmart is inflation that is fuel, not exactly hard to see hitting them. home depot much more easy as you said to pass on those inflationary numbers to the consumer. so i think we're once again looking at a bifurcated market where the high-end is doing great but the low end once flush due to all the stimmies is no longer flush anymore. charles: what do you think? >> i agree the consumer was very much engaged. that was very clear in today's numbers especially improving in the stay at home experience, they're investing in their homes but also the april retail sales numbers we saw online sales grew double digits on top of very difficult comparisons from a year ago. in fact all retailers are facing the most difficult comparison from during the pandemic. so the fact that they're still growing at this rate tells me that the consumer is still engaged. charles: i read your report, the first quarter retail preview with inflation supply chain problems creating the perfect storm. i also saw the empire fed report yesterday that suggested that
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maybe that's easing a little bit. obviously at some point that is going away. how. of a help will that be? >> well once the consumer needs the most help is the low-end consumer. they're no longer receiving government stimulus checks. they're being hit the most. charles: but aren't their wages rising fastest also? >> yes that goes hand in hand with consumer confidence. shows one area consumers are still optimistic about is employment. that is fueling credit card spending an consumer spending. it was very evident in walmart's numbers because they have a division that caters to middle class consumer which is sam's club. excluding fuel, the sales were grew double digits 10%. new memberships are growing into the store. charles: sam's, transactions were up 10%, ticket up nicely that was not too bad. they are fed trying to reverse engineer the wealth effect. trying to take money out of our pockets. how will this impact the
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consumer? >> the consumer put everything into their house thinking that would be a appreciating asset. not so much the case anymore once rates rise. their 401(k) is not doing well. you add fuel inflation and food inflation to that mix, it is just kind of a like a whipsaw to the consumer and their mentality is going to get hit. we'll see that acted out in kind in the market. charles: so far, i got to admit i'm a little bit surprised at the resolve in the consumer but, you mentioned credit cards. we're seeing credit card demand go through the roof. we're seeing savings go down. are consumers on borrowed time? >> not yet. this is mainly because the latest report of bank of america credit card showed us the bulk of that spending is going towards travel and entertainment. it shows that consumers feel good about extending themselves. charles: listen, i've been locked up for two years. i don't care what it costs i'm going on a vacation? >> it becomes trouble once it goes above the pre-pandemic level which is currently 13%.
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that is still below the pre-pandemic level of 24%. it becomes a problem, start using it for everyday expenses. charles: i want to find out where we make some money. kristen, i'm coming to you. i give you props. over last two years you helped us a lot, told viewers when to buy louis vuitton, restoration hardware. you told us when to get out. we made big time money. are you buying anything here on the retail side? >> i'm kind of like a homing device, i go back to my core and right now i would definitely be more constructive and i am more constructive in nike, lulu, rest tore racer and lvmh. i will tell you why. these are high-flyers. they have exceptional management. they have exceptional execution, that is what they do. they manage the pandemic. they managed supply chain. they managed shutdowns in china. i'm definitely more corrective here, i would go back to my platinum brands. charles: i hear you. you were shaking your head. >> i agree with kristin, especially the names she
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mentioned have a strong cult following, lululemon and nike. charles: forget about it. you go to the mall, people are waiting in line. when i see people wait in line on something i think it's a buy. ladies, fantastic stuff. thank you very much. markets are doing pretty nicely. investors are looking for bargains after sort of waiting. nancy tengler has been buying bargains for a while. she will share some with us. finance revolution is in turmoil. so-called stablecoins have destabilized cryptocurrencies for good. stay with us to find out. ♪.
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♪. charles: got a question for you, what does citigroup, take two, paramount have in common. three of the top of the session. take number one, citi, number four. joining me laughter tengler investment ceo, cio, nancy tengler. the oracle, you come on the show everyone is meally-mouthed. we're waiting for the crash, yadi yada, no, i'm putting money to work. here it is, financial managers are sitting on more cash since 9/11. how risky is it? talk about the other side. how risky to sit on so much cash, waiting for per mechanic moment for the next leg down and it may not come? >> thank you, charles. opportunity cost of course sitting on too much cash. in dating parlance you would call that the one that got away. i always go back and look at history. in 1987, on black monday you
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sold on the day market down 22.6%, the very next day it was up 5.9%. next day after that 10.2%. we had 12th years of a raging bull market. not time to be a hero to run for the exits or maybe a coward to run for the exits. what you really want to do be specific in your purchasing and you want to be disciplined and that is exactly what we've been doing. the oracle himself said if you're not willing to own a stock for 10 years, don't think about owning it the next ten minutes. charles: he must have put $50 billion to work. oxy, citi, all the names he is buying. they're all going through the roof. everyone is following the oracle these days. speaking of which, earnings season, we're almost at the end of it, what are have you learned. we sifted through the numbers. we see who is taking market share, losing market share, how does that affect your approach to the market? >> you want to own industry leaders and companies with strong management teams. we are a few we're questioning
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management. we exited starbucks over the last two months. we think there are real problems there. if you don't have a management team that will set command and vision this is a time it cannot be in your portfolio. we learned managements will protect margins. be on the watch for layoffs in some of the usual, more vulnerable areas like stay at home names, mortgage names. we're watching that. we think we have a long way to go before it really impacts the employment picture. charles: yeah. >> we do think that energy still has runway. that the shift to services is real and that tech cap-ex for now is still robust and we expect that to continue. charles: starbucks we obviously saw howard schultz come back to the company. i think he made some pretty big missteps to be honest with you. >> he did. charles: company like walmart missing makes you also worry about management. a sector you like, area you like are semiconductors. they're doing very well. there is upgrade there.
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are you concerned though near term particularly what happened in china, shanghai was shut down, didn't sell one car there last month, or would that be a temporary hiccup you look past? >> so interesting, charles, is that the chinese government has come out with a white list of sort of protected companies. so one of our holdings which we added to today, taiwan semi, has 70% of their chinese production in shanghai but only 5% of their total. they're still operating. so i'm not really very concerned about it. charles: right. >> i think you want to be exposed to the group and again in the high quality names. charles: we know taiwan semi will raise their prices 10 to 20%. that is always good. >> yeah. charles: less than a minute to go. i don't want to make it too sanguine, what is the greatest risk to the market? >> washington, d.c. i mean bad policy out of the fed. policy has already happened. he is now talking about how he will tackle inflation, came across the tape just a minute ago, bad policy out of congress.
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too much spending. i think the threat of raising corporate tax rates. i mean these are companies that saved us. many of the ones that would be most impacted by guilty, tech, pharmaceuticals, saved us through the pandemic. washington if they take a quiet period like the fed does i would be all for it. charles: speaking to the fed, powell must have said something before the show began. we had a big hiccup. market and algorithms watching every syllable that drips off his lips. nancy, thank you very. always appreciate it. >> thank you. charles: stablecoins feeling the weight of the world after the luna implosion. what i will be the fate of ethereum? a lot of people said it was better than bitcoin. i will break down the legalize the trading in the halls of congress. it is disgusting stuff folks. we'll be right back. ♪.
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♪. charles: stocks are not only asset stablizing today. cryptocurrencies are mostly higher. there is still a whole lot of
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questions swirling. stable is operative when it comes to stablecoin, terra usd, luna, they have become disasters. tether, biggest stablecoin fell to a buck. this calls into question the entire crypto world as naysayers are jumping on it big time to call it all a house of cards. we have matt haugin. i might to dispel the notion of stablecoin a misleading name. should these coins have a different kind of moniker? >> i think it should be important to differentiate stable coins like terra, from bad math to reserve stable canes which function much more like money market funds. funds likes usdc, well-regulated backed dollar for dollar in the market. all will eventually implode. that is history of crypto. we've seen it before.
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luna is the largest example. reserve backed stable coins work exceptionally well. we need regulatory clarity. we'll get that. i don't think there is anything at issue with those. we don't need to separate the two pieces though. charles: i'm glad you brought that up, what is the role of a stablecoin? why should they exist? >> they're incredibly important tool in the crypto ecosystem. if you're in the crip taupe ecosystem, they're trading bitcoin or ethey are yum, you want to rotate out of that into a stable asset, stable coins fill that role. it takes too long, the financial system is too slow to move your money from a crypto exchange to a bank. that takes multiple days. stablecoins give you a way to get you fast moving, modern crypto financial ecosystem without the price volatility of bitcoin. so they're a tool, just like money market funds are a tool in the stock market in the traditional capital markets. >> is the infrastructure robust
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enough for where folks think all of this is going to go? this sort of revolution, you know the blockchain, can it handle the amount of transactions i think people who believe bitcoin will be 2 million one day, could it actually even handle it? >> yeah. the answer is right now the answer to that is no. this is a little bit like the early days of the internet. remember when video would buffer all the time. you try to listen to music it would be hiccupping that is where the crypto ecoi is right now. importantly we have identified, there are proof of concepts of new technologies that allow us to scale, not just be equal with the current financial system with through-put to be faster many occasions. ethereum, one example can handle 15 transactions a second. there are a pair of startups that will take that to 100,000 transactions. making it more robust than say the visa network. can we do it right now? no. but is there a technological
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pathway to do it in the future, absolutely. charles: less than a minute to go. brought up ethereum. saw a couple recent interviews. you like it a lot. go over the value proposition why you put that ahead of bitcoin? >> yeah i love ethereum. it is internet of the modern age of crypto-enabled finance. all decentralized finance, all nfts, crypto enabled gaming all innovations are being built on top of the ethereum network. many rely on the ethereum network to work. if you're investing into etherium, you get exposure to all the growth and innovation taking place in the application layer. like owning apple, owning the app store instead of buying individual apps. one really exciting thing about ethereum, it is going through a major technological upgrade that is going to allow it to be much more efficient, allow it to generate yield if you hold it long term. i think it will be the institutional crypto asset of choice in the second half of the year. right now, because of the market
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pullback it is on sale in the market. charles: matt, i got to tell you you explained that so well. i hope everybody was watching. thank you so much. really good stuff, thank you. >> thanks for having me. >> folks, i will bring in hodges fund portfolio manager, craig hodges. craig, your thoughts on this market, what we're looking at right now, and are we in sort of a bottoming process yet? >> yeah, we're getting there. there are still some headwinds that will probably be around for the foreseeable future. anytime you have the market, the nasdaq down 25%, the russell down 20%, the s&p down over 15, a lot of the risk has been taken out of the market. the things like inflation and you know, some of these fears of higher interest rates, a lot of the you know, the threat of a recession, those are not going away quickly. what we're seeing here at the hodges funds, when these high multiple stocks that have gotten hit so hard got hit, it has
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taken all the cheap stocks down with it. so there are, we're using the volatility in the market to buy great companies that have gone on sale. charles: i want to get to some ideas that you have, but what is the fed, listen, we know, kind of know how rate hikes are going to go. we kind of know the schedule. we kind of understand quantitative tightening. i asked some guests earlier, is that built in, is that still a headwind or do we understand it so maybe not impacting the market as much? >> you know i think the worst-case scenario is already built in. people are, the markets kind of anywhere from six to eight rate hikes coming forward. i think most of the experts out there are saying they won't get that far, with them doing 50%, 50 basis points at a time, we'll get there. you're starting to see inflation starting to peak. if you look like lumber, lumber is half of what it was, price of lumber half of what it was a
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year ago. you're starting to copper come back. we might be getting closer to peak inflation. charles: right. >> that will be tremendous help i think for the headwinds. charles: i think so as well. you can see this market was poised to take off. we've gotten a more benign cpi, ppi number. let me talk about some of your ideas. first of all freeport-mcmoran, material stocks are killing it today. >> yeah. charles: what do you like there? >> copper is booming and the supply unfortunately is not going to be enough. there are some -- for example, electric vehicles use four times the amount of copper as a regular car. windmills use a lot more copper and freeport-mcmoran, the largest copper producer out there, they're really in a really good spot and for every five cent increase in the price of copper that is 20 cents in earnings. probably a dollar in the stock every time. charles: wow. >> so i think futures, we're not
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going to have enough copper and supply demand is going to be an issue. stock's down from 50, down into 37. they reported earnings about three weeks ago. unbelieverly good earnings and they have done nothing but clobber the stock. it is really timely here. charles: i watched the stock over 20 years. it is amazing, the stock has always been perennially undervalued in my opinion. got 30 seconds, academy sports and callaway will we start hitting around with golf clubs again? what are we going to do? >> callaway is booming. golf is booming. people don't realize callaway owns top golf. they have 60 top golfs. they will have 200, 250 in next four to five years. that is a growth stock that trades like a value stock. the young people are playing golf in droves. their sales were up 60% that they just reported. so you know, i don't think
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people, people are thinking, it's a covid thing. let me tell you, young people in droves are playing golf. charles: i remember when big bertha came out. it was hottest stock in the market. it kind of faded away. i agree with you. a lot of value there. craig, great stuff. i appreciate it, my man. >> my pleasure. charles: lawmakers are raking in big time money on market information to be honest with you we just don't possess and if we did we would go to jail. my takeaway on that is next. ♪. ... to help you manage payrol, benefits, and hr today,
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and helping you plan for future generations. this is "the planning effect" from fidelity. charles: so more great work from unusual wealth on twitter you've got to follow him if you don't post senator blumenthal and his wife their investment fund buying 500,000 shares of intel. this is just weeks before voting to approve $52 billion in semiconductor subsidies. then this republican pat fallon had to makeover 100 amendments to his 2021 stock trades including a bunch of option contracts. now, apparently there's no penalty for these sort of clerical errors at least not for lawmakers. heck why would there be? they enjoy a position of insider trading that would put anyone else in prison, or at least, you know, serious intense legal scrutiny. it's amazing that every time there's a ground swell of protests over this sort of really unfair advantage of these so-called public servants it just kind of listen, they buy
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their time and it fades away because we're in a 24 hour news cycle and it always seems to get worse. i want to share a story with you john pierre van rossom, pulled off one of the largest ponzi schemes in history a company called money tron, which he claimed he had a computer that could predict markets. it was an $860 million scam before it went bust and he was sentenced to five years in prison so he took advantage of belgium laws and decided to run for law because in political law office you didn't have to do time. he formed get this , the radical reformers and social worriers for fair society that was his political party. this dude on the racing team, 108 ferraris, two falcon 900 airplane, oh, and a yacht called "destiny" and in america too many politicians have become obscenely rich and everyone sees this from hard working folks barely making it to other people who are saying listen, i'll pursue a life of crime. look at the hypocrisy of people
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in power. so i can only say to everyone out there, keep the heat on. i mean, this is totally unfair, it's totally unethical. we have to make it stop, if everyone is to participate in what i think is the greatest money making machine ever, if you put in elbow greece and real due diligence in that legal insider trading. liz i'll get off my soap box here. liz: no, don't i love it. charles: you've got the good momentum go going. i don't want to break it. liz: listen, we love it and we do have charles yes the bulls careening down wall street at this hour as investors stampede into risk-on mode. we're basically looking right now at a broad-based rally with financial and tech stocks leading the way. bulls can thank retail sales for april, holding strong despite inflation concerns, and by the way, in just the last half hour, at a wall street journal event fed chief jerome powell managed to not upset the apple cart. the chairman just in cysted there are plausible paths to a softish landing, meaning no


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