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tv   Making Money With Charles Payne  FOX Business  June 28, 2022 2:00pm-3:00pm EDT

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those developments. we're following corner of wall and broad, down 288 points. the recession fears are real. again this is the same market that welcomes slowdown in activity and interest rates going up, up and away. interest rates still go up, up and away. the slowdown might turn out something worries than they fearedded, it is compounding to hit selling a lot. charles payne to get you through all of that hey, charles. charles: try my best, my friend. thank you. good afternoon, i'm charles payne this is "making money." after a strong start to the session everything was dashed, right? more signs the economy is slowing down. as neil talking about the recession debate is raging. we have ed yardeni on manufacturing signals. we have sam did i by ahnky on housing boom that may be a bust. kristin bentz on the health of the consumer. the question whether this will help fight inflation. which know it won't. maybe it is an attempt to buy votes. the free money experiment that
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just won't quit with brian wesbury. also the world of crypto in serious turmoil. we have john denton on the legal hurdles and why it matters just more than crypto investors. it is about freedom. why i love the flying hotel that only has to land every few years. mankind's imagination gives us unlimited potential. my takeaway on that later in the show. all that and so much more on "making money". ♪. charles: so the scorched earth 2022 continues for the entire investing world, right? only commodities are up for this year. even though recently they have come under fire. right now wall street is calling for a whole lot more pain. they want, i guess to hear the howling of individual investors finally giving up, throwing in the towel. join being me to discuss all of that, laffer tengler cio,
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nancy tengler and jim iurio. sorry, jim. my first question, how much further does this market have to go? many point to the carnage during the financial crisis as template. i have to be honest with you, so far it has been perfect. sadly, scary. it followed it to a t. nancy does the market have no go down another 40 percentage points next year before we hit rock bottom? >> i don't think so, charles, but of course none ever us know. you're starting to see signs of fed policy, financial conditions tighten in a pretty meaningful way. i thought the numbers were super interesting. the conference board which tends to be more sensitive to employment shows vacation intentions are going down. that is a big deal. if you look at some commodities that have sold off recently, food and energy, that is helpful. so, i think, you know, we saw in the '70s where the fed was hiking into, into a weak economy
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and i didn't like the way that turned out. i am hoping we'll see some pause. last thing i say u.s. euro-dollar futures yield curve has pulled its in timing of peak fed hikes to december, 2022, instead of june 2023. so that is something for the bulls. charles: although they're now saying that the fed will probably have to cut rates in first quarter next year, hinting they maybe will go too far. jim, how far down do we have to go in this market? >> i think the 25% we hit in the s&p could be sufficient. let's not kid ourselves. next two weeks before we see the july 13th cpi report could be relatively volatile. if there are signs inflation is abating, look at five-year break answer, gone from 3.8 to 2.8, pretty much straight down. you know the supply chain is beginning to heal. empire fed, philly fed both shortened times of delivery. so that is all good things. but we have to see that again.
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this market won't bottom in my opinion until the fed gives us somewhat of an end point when the tightening cycle is. that seems to be evolving. i'm a little bit encouraged now but i think the next two weeks could be kind of rough. charles: to that point the next two weeks wall street wants to see earnings estimates come in. they say they're too high. price earnings ratio as we know, most widely used metric to value the market and individual stocks. very straightforward, lower pe, potential upside, higher p-e, more potential risk. i know it's a lot more nuanced than that. that broadly sums it up. traillying 12 month p-e ratio come down 35 first quarter of last year down to 16 in part because of earnings revisions in this chart have been swooning big time. they're now in negative territory. here is how it probably is going to play out, folks. peak earnings growth correlates perfectly with the subpoena 500. the p has now turned negative. that is associated with previous bottoms.
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that was march 2020, december 2018. so if the earnings adjustment, jim, if the earnings adjustments we've seen already are almost right on, to me that means this market could be a screaming buy? >> so this is interesting because the earnings ratio right now historically, if you broaden that out is neither cheap nor expensive. you mentioned 2018, 2020, all more recent times. recent times when monthly has been essentially more free. what i argue the equation has changed. when you do see p-e ratios where they are right now it is more attractive than it may have been 30, 40 years ago. you throw in the fact there is 6 trillion additional dollars printed added to the m2 money supply the last two years that money has to show up somewhere. that is what everyone thinks, you mentioned the financial crisis before. that was assets built up long position over decades illiquid market real estate that had to take years to work itself out. my contention dollars are cheaper because the fact they
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thrown so many at them and they're not pulling any out. i think the present p-e ratios look pretty attractive. charles: it is short squeeze season again. short interest on the qs, the highest since last march, the best performing names really since march, june 16th, all the most heavily shorted names of market. in that bar, those are the most shorted names are biggest returns. yesterday femy up 31%. evfm up 37%. aerc, up 13, 14%. those are not household names, nancy, but there are big names out there that have some big short positions. are any of them on your list? >> well, we don't usually play in that field. i think the risky evident stock we on is block, that has 8 1/2% short interest. we compiled a list. there are some interesting companies on there, if you have a little bit of your portfolio you want to take a flyer on look at some names like big lots and carvana.
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redbox, big five sporting goods. some of those i think could give you a nice little bounce but while i think it's time to add risk back into your portfolio -- charles: you wouldn't go that far. >> yeah. charles: i'll tell you, listen, people are watching the show who would love to make 130% in one day. you mentioned redbox. that has been a grand slam. let me shift gears. got a minute to go. the reopening trade. shanghai disneyland. set to reopen thursday. that has been closed 100 years, 100 days, rather. jim, with reopening stocks, coming back to life, would you take the bait there? >> if you're asking i take the bait in china, the answer to that is no. charles: just reopening in general then? >> crude oil, how about, crude oil seemed to break out of a technical pattern, down today. part of that is the china reopening trade. i think crude goes back to 120. i will be looking at some crude names again too. particularly if i don't think rates will go up much much
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higher from here. some dividend look pretty good. charles: nancy, 20 seconds, reopening names? >> agree with jim. we'll take gains on our oil holdings when we get the next bounce but we like to play a little more conservatively through a name like mile-per-hour express and that stock has held up pretty nicely with a strong dividend increase. i say you stick with dividend growers, get paid to wait until this market volatility ends, all the while holding back risk into the portfolio. charles: i tried. i can't get you guys to be frisky, right? no royal caribbean. nancy, jim, two of the best. thanks for starting the show with me. thanks a lot. up next, the new manufacturing report out today just made recession worries even worse. how bad will things get before they get better? we have the great ed yardeni after the break. the uncertain at this surrounding the economy, i'm hosting "inflation in america." this is july 6th.
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charles: let's face it where this market goes day spends completely whether or not we're in recession, whether how shallow or how damaging it is. yesterday the dallas fed released their manufacturing survey. say it was an unmitigated disaster. in fact all these regional fed reports have come up short and what this suggests we're looking at here, you have the dallas fed here which is down there, this is the national number which will come out soon. more than likely also going into free fall mode. joining me to discuss yardeni research president ed yardeni. ed, the first sentence in your note, the most recent note, i think you wrote it yesterday, the economy is teetering. so you got to tell us more. >> well, we're definitely in a growth recession right now if you look at the numbers that are
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coming out for real gdpt was down 1.5% at an annual rate during the first quarter and the atlanta fed's tracking model shows that it is coming in at 0.3% at an annual rate. so it's not doing much at all in the first half of the year. then on later this week we'll get the personal consumption data and we're going to find out the extent which consumer goods spending is weakening and being offset by ongoing spending in the services economy. charles: right. >> so i think we're looking at a growth recession right now, not an outright severe recession. if anything that is a mild one. charles: all right. those are food words to hear, ed because the word recession cause as spike. last time it was at this level was during the, really the beginning of the pandemic and yet analysts are saying, are being told that their estimates are too high. if they're hearing recession do you think they made the
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adjustments and if they haven't why? what's holding them back? >> i think you haven't gotten the recession memo. a lot of them keep in touch with companies that they follow. they talk to managements. they try to assess the overall business environment for their individual companies and they're just not seeing it at this point. so i think they're being told that they're too on optimistic by investors as the plunge in valuation multiples yet the annuals are holding on to their earnings expectations which remain actually very optimistic. charles: yeah. >> i think that there is going to be some weakening in earnings here but i think all in all the economy is kind of hanging in there. maybe it is teetering on a mild recession but all in all what really matters is in fact the earnings outlook. i don't think the earnings outlook is quite as severe as the markets have been anticipating. >> i hope you're right. this would be an amazing stand for the analysts who i think
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have sandbagged it for some years. let me go back to that dallas fed report because there was something really interesting in there. when asked how they were going to adjust to inflation you could see where most of them now plan to raise wages, 7.4% just at the beginning of the year it was a lot less than that but here's the part i want to ask you about. >> sure. charles: own costs going up 9.7%. they will only pass on price increases of 7.1%. they're doing profit earring ed. they were supposed to do it the other way around. they will lose money this way. >> that is the dallas fed survey. individual surveys could be quite volatile. i like to look at all five of them. five federal reserves put out monthly surveys. we now have all five. we got the richmond data which was just as depressing as the dallas data. keep in mind this is skewed
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toward manufacturing. we know consumers cut back spending on durable goods. that is the bad news. the good news because ever overhang of durable goods inventories prices are starting to come down. we may get improvement in inflation in that regard. all in all i would say we're looking at very slow growth, maybe really no growth in the first half of the year. i think we'll get somewhat better in the second half. charles: ed, always feel better listening to you, not only because you're optimistic, rose-colored glasses kind of guy but you have one of the best track records in the business. thanks so much, my friend. appreciate it. >> thanks. charles: still to come, folks, nike earnings are out. let's say they weren't that great although, although, maybe there is a sliver of hope in there. i will tell you why. if you're looking for some badges, listen up. everyone is talking about the g7 meeting a lot of miscommunication there. they were clear about one thing, they think they want to take on china. we'll go live to austria with more on how to minimize the world's second largest economy with the world's biggest
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charles: china, the big topic at the g7 summit despite not being a member. allies announcing a massive 600 billion-dollar investment. they think it will counter the beijing infrastructure plans, the old belt and road thing and curb its global influence. edward lawrence is live in austria with more. edward. reporter: charles, the g7 leaders signed on to this agreement. they believe it will help developing countries with their infrastructure. now china experts say they don't really see this as competition for china's belt and road initiative because that program has been running for nine years and is funded by one trillion dollars but what this communique
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does is show the g7 leaders have further erosion of chinese influence in europe. there is very specific language in europe, that says we will build a shared of understanding of china's non transparent and market distorting interventions and other forms of economic and industrial directives. we'll work together to develop coordinated action to insure a level playing field for our businesses and workers. the communique calls china to follow internationally established trading rules. experts on china show the communique the world leaders continue the trend of former president trump of leaders standing up to china. >> -- under trump, that trend seems to be continuing. this is really a nightmare for china. what was supposed to be their great partner, europe, is turning into at least a contested zone, and possibly the european leaders are lining up with america. reporter: so right now president joe biden is having dinner with
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the king of spain. he has left germ i in. germany. before he left germany met with leaders of uk, france, italy, germany, the president ignored twice how to get grain out of uk. uk prime minister boris johnson turned around and answered the question say we're working on it. back to you. >> boris johnson has been the star in this whole thing. edward, appreciate it. the western world watched russia watched it prepare invasion ever ukraine for a decade, let's be honest. they decided to limit and demonize fossil fuels. even in that time period some countries mothballed nuclear power plants. they did the exact wrong thing. that is maskeddenning. chief economist at west trust advisors brian wesbury joins me now. it is nice to talk about the abuses of china, talk about the catch they're pledging as china already made hundreds of
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billions of dollars of invests, debt diplomacy. china is still stealing and unfair subsidies. i think the west will sleep walk until it's too late! >> i totally agree, and you know this idea of saying trump did the same thing we're talking about today, that is absolutely not true. he encouraged fossil fuel development. he wanted the west to be independent of these communist countries and he also used tariffs. now what we're talking about is spending a ton of money and trying to compete with china under china's rules. in other words, okay, they're communists. they're throwing around money however they want so we'll just throw around money charles, the way you defeat communism is with free markets. we're getting further and further and further away from that. in the end we don't do communism as well as china does. so if we're going to play that game, we will lose.
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the way to win this game is to support free markets, drill for fossil fuels, work on green energy over time. it is going to take 30, 40, 50 years, but we need free markets, not government, governments competing against each other. neil: charles: we may not do communism as well as china but we're working on it, right? you and i talk about modern monetary theory all the time. first of all, looks like japan has been doing this defacto for years, facilitating through the central bank, boj. the bank of japan, they own 3450% of that -- 50% of that government. that is unimaginable number. what are some of the consequences of this? >> charles this modern monetary theory, what we just did hear in the u.s., with the pandemic, printing money, buying treasury bonds, it can't work. what we're doing is we're
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borrowing from the future. we're devaluing our currency in order to consume today. there is, you may be able to get away with this for 10 or 20 or 15, or 25 years. eventually, eventually you pay a massive price for this. in japan, as you said it is 50% of their debt. it here in the united states it is a third of our debt. charles: right. >> we're mimicking them. they haven't grown for 30 years. is that what we really want? it doesn't work. charles: you know, just to pull a page from ron popeli, wait, there's more. i know you know about this thing in california, shipping out 17 billion. call it inflation relief package. each californian gets 1000 bucks. i don't think anyone thinks it will make inflation better. they're buying votes. they're going after middle income families. do you think the average american will be sucked in by
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this. >> i do not. once you have spent the money they handed out to you gas prices are still five, six, seven dollars a gallon in california. people are smart. they can see that this economy has been wrecked by the policies we've done over the last two years. just handing out money, it doesn't fix anything. what they need to do is rut regulations, cut tax rates and charles, this, i know i'm don key oat tee here, i'm fighting against windmills, we have to cut the size of government. charles: all right. >> everything is political. it's way too big. time to cut the size of government. charles: brian, to dream the impossible dream, my friend. we'll talk to you real soon. >> absolutely. >> go back to this g7 meeting, folks, because there was a lot of wrinkling over there about a potential price cap on russian oil. it sounds like a solution that might create more problems. i want to bring in the u.s.
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director of cic private wealth rebecca babin. rebecca how would this work? do you think it's a good idea? >> first of all, thank you so much for having me, charles, you're right. there is a ton of headlines about this price cap. the bottom line is, it looks really good on paper. it looks like you would limit russians revenues from their oil sales while also increasing supplies to the global market. so that all sounds good. the trick here is, how do you do it? right now the idea that is being floated is to use insurance. they're going to prevent insurance on any cargoes that would come out of russia, traded the a higher than the price cap which has not yet been determined. so there in lie as big rub first right off the bat. insurance companies are on the hook for enforcing this. many insurers of cargo are based in the uk and europe. they share the ideology on board with this idea, however that is
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not necessarily a good business choice for them obviously. charles: right. >> and secondly, it penalizes an insurance company if something gets through as opposed to penalizing the third party buyer of the crude. so unlike what we've seen with iran and venezuela, the sanctions that the penalties fall on the buyer of these sanctioned crude, this would put risk on insurers. that is the first layer of why this is tricky. charles: let me -- >> second layer is, sorry, go ahead. charles: i'm sorry, go ahead. i will let you finish. >> sure the second issue is, you have to have the buyers to buy russian crude, india, china, sign on to this. just to be really honest with you, that doesn't seem like something extremely feasible at this point. charles: yeah. >> there is just not a lot of momentum behind that. they have had a huge benefit. they're fighting inflation too. what is their incentive to do this? charles: they're getting pretty good discount right now. let me ask you about crude in
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general. it may pull back. in fact the energy sector, xle slipped into a bear market. took like a week or 10 days. here is irony. earnings consensus for the quarter sees 200% increase. at the beginning of the quarter it was 100% increase. is there a opportunity here perhaps? why did it pull back? seems to me they should be buying this sector? >> yes. so what we've seen over the past three weeks, obviously it is reversing a little bit today, just this massive loss of conviction in energy. the reason is, effectively, three things. the first, jerome powell coming out saying i will fight inflation at all costs. if you were in energy trade as inflation hedge, you hear that statement saying i'm out. they were renters of energy exposure okay? they had a specific reason for owning the sector. the second thing that happen the is, you had a massive drawdown across the entire market. this was the only sector that
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was outperforming. if you had margin calls in other areas of your portfolio you had to sell the winners to fund those margin calls. charles: right. >> you had a very specific technical factor. i think the third thing, i think this is the thing we have to think about now, what is the catalyst for further upside from here? we know earnings are not going to be good. we know fundamentals are strong but we priced in a lot of that. we've had a nice run. is there a catalyst, a further catalyst to move forward? and i i you're hitting on it the fundamentals will continue to be good, the opportunities will be there but you ever to be a little more selective because we're going into a earnings season with a high bar of expectations. >> rebecca, you were as good as advertised, even better. i appreciate it. thank you. >> thank you so much. charles: all right. coming up the housing boom turning into an affordability crisis and maybe a bust. also what it would mean for potential new homebuyers if they even are still trying. crypto investor revolution, running into a little bit of trouble, the crypto winter
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♪. charles: to say we've hit a rough patch for crypto investors would be an understatement. however it has the doubters and naysayers circling like sharks as each day seems to bring more questions and even more bad news. many are saying listen this is part of the curve. this is natural when you have something like this, something revolutionary like this but there are still issues, including legal issues feel white a whirlwind. not sure just yet. we have crypto law founder, john deaton. i want to start with the sec
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chair, yesterday, this week, gary gensler, he made comments and some are not sure where he is putting bitcoin, for instance. did he say bitcoin was a commodity, security, where does that leave rest of the cryptos? >> charles, thank you for having me. gary gensler came out, finally after a year, final said bitcoin is commodity. it took him a year to do it. he didn't comment on any other cryptocurrencies. there is a specific reason for that. he prefers there to be vagueness and regulatory uncertainty because when there is unregulatory uncertainty allows him prosecutorial options. charles: that gray area. >> that gray area. charles: i'm own the securities side, believe me. when i first got in the business i found out about the gray area the hard way, particularly small, young, coming into the business, you start a business, and the wall street side there, is, like you said there are no clear lanes but they do this deliberately? you think they deliberately leave the gray areas? >> absolutely.
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if you provide guidelines what entrepreneurs, companies do, they meet the guidelines. when you keep it uncertain, gives you options for him to continue to engage in regulation by enforcement, right? charles: right. >> that is how he is doing it. i went on record to say that to predict he is going to sue an exchange or sue by the end of this year and claim they're selling unregistered securities other than bitcoin but he won't tell you which ones are securities. that is the problem. charles: hard toinging ignore rant of a law if the law doesn't exist? >> exactly. charles: one thing i get it, no, it was on the books. it is really despicable. >> it is disgusting, is what it is. he keeps going on record to say these exchanges are selling securities. you ask which ones? he won't say. now we know from his comment you just asked me about he is going with they're all securities except for bitcoin which makes the ripple case extremely -- >> i will get to that.
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let me ask about seemingly endless bad news. >> yep. charles: some are saying hey, you know what? this is the wild wild west kind of thing. the opportunity are crazy and they're there. this is almost to be expected. in a way it could be a good thing if we get something out of it, maybe guardrails, regulations what do you think? >> i think the house of cards are kind of crashing in because some of these companies, they have a business model of crypto lending with using highly leveraged strategies and they offer these 20%s or higher leveraged applications and they can't meet them and when you get into an illiquid environment like we have today with raising interest rates liquidity dries up and the house comes crashing down and i think that eventually will clean the house. charles: so where is the ripple case right now? >> well the ripple xrp case, i'm glad you asked, it is something i'm passionate about today, i wanted to make sure i get the number right, today, charles, we
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hit 68,250 people from 61 different countries around the world that have joined to fight the sec in their overreach and government intrusion. i want to tell you something, there is couple thousand of them don't even own xrp. they feel like you do, it is disgusting what's happening. >> right. by the way i did see last time the last time there was a anything from the courts, that the ceo of ripple said, gone quote exceedingly well. the notion that so many people want to see this succeed, whether you're and invest or or not i think speaks to the idea of freedom, innovation, self-determination. there are a lot of powerful forces out there that don't want to see that happen. absolutely. i think what is happening, cryptocurrencies and bitcoin is one of the first times in history where the individual runs the industry unlike hedge funds. personally i think gensler's attack on crypto is to allow the hedge funds and wall streeters to come in, crash the market. they come in and --
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charles: by the way they do that in the stock market all the time, all the time. did you see a guy left citadel to get in the crypto business? >> of course. the regulators leave and go into crypto too. charles: you're doing a great job. so many people look up to you. i appreciate you coming on the show. >> thank you very much, charles. charles: up next, the housing boom looking like a bust? interest rates, supply chain issues. listen, just unaffordable for some people. i have sam debianchi who has the lowdown after the break. ♪.
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♪. charles: so the housing boom, let's face it, it has been remarkable but there are cracks in the foundation and there are worries it is going to go bust. joining us bianchi real estate founder, sam adobe ahnky. there are higher mortgage rates, just amazing how think they have gone such a short period of time. the average home price, these
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are hick tiff things. charles schwab says the boom seems to be over for now. do you agree? >> i will start off by saying a changing market is not a crashing market and just because we're not complete boom does not mean it's a bust so we need to keep that in mind. you talked about mortgage rates. that is a huge hot topic. to give you an idea, i one year i was able to lock in 2.785 for 30-year fixed, now you look at a 30 year fixed it is nearing circling 6%. any buyer in this market, should i be buying? does it make sense that i will be spending that much more on my mortgage? it is really a situation where the buyer has transformed now. instead of removing their apraise alcon contingency, removing their financing contingency, paying tons of money over ask price, people are coming in more conservatively.
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they want to make sure things are not crazy. they are trying to get the best deal possible. they will still have to pay more. sellers are still going to make more, like again we've seen the huge price gains. we've dean double-digit price gains, not single digit which single-digits are normal. it is still a market where sellers can make money. buyers can still get some good deals, but yes, with mortgage rates, they are going to pay more in the interim. charles: i can see one you're one of the best. you found a way to use your philosophy degree selling homes. i like that answer. help me out with this one. number of hours, number of hours it takes to cover a monthly mortgage payment, look at this thing. it has spiked. this is the highest number since 2007. so this sounds to me at least will keep some people out of the mortgage, out of the housing market. also, it might lead to more defaults, no? >> it really depends how you look at it. we always push 30-year fixed,
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30-year fixed there are other products out there. a great example, i locked in at 10-year arm at 3.375 just 60 days ago. yes, that is insane and i probably won't be able to find that again but there are other products out there that can make more sense and that can have a lower interest rate that might make sense for a lot of buyers who could still then take advantage of cheap money. still even at 4, 5, 6%, it is cheaper than it was when it was 12%. charles: right. >> so there are still opportunities out there. charles: i only got 30 seconds. let me ask you about mortgage brokers, right? i read a story yesterday, academy mortgage, they're out in new york, they did 800 million in loans last year. now they're reducing headcount by 20%. we're hearing large firms are doing the same thing. the line that caught my eye, the owner said the surge in panic sell something quote, scary. what does that mean for the housing market?
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>> the panic selling people are concerned about the stock market, a lot of volatility, people say now i need to go and sell. instead of maybe making hundreds of thousands of dollars over their list price, they have to be brought down to reality, but again, if you look at year-over-year we're seeing 20%, some markets 30% price increases, price gains. it is still very much a seller's market but today's buyers is transforming and i think there are opportunities everywhere. you have to spend the time, spend the effort, and go find them. >> you know the homebuilders have been quietly coming on. they're down today, they have been quietly coming on, homebuilder index up 7%. maybe you're onto something. thanks, sam, that is why we have you on, my friend. >> thank you. >> the housing market is wobbly, that is my philosophical way. part of it is the households feeling the squeeze, inflation, slowing economy that brings us to a greater question can the
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consumer weather this torn? we have kb advisors founder kristin bense. this is straight from the report. appliances homes are relatively stable. but intentions have cool considerably right, this year? vacation plans are softening. prices are starting to take their toll. are we looking right now, seems like americans are still going out there we got to use credit card, going to savings. sounds like the typical american is still out there spending, that what you're seeing? >> well i'm definitely seeing to your point, charles, cruel intentions, right? they're going to spend until they can't spend anymore. we'll see that end abruptly with the end of the summer. charles: shop till you drop. in fact the expectations component of this report, that is where you have the weakness t nosedived. went to 66.4. the lowest level since 2013. what does that say about the
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likelihood of recession? >> well, you know me, i see things a little bit earlier than the average bear. so i think we're technically already in a recession. not to be the blonde reaper of course but, you know, it is just the consumer behavior that i see, consumers choices and the way they're shopping and spending has changed and you see that, you know, reacting in kind with target, walmart, et cetera. charles: let me pick up on that because nike posted their results last night. and like walmart and target the sore spot was inventory. for them, 20% build in inventory. this will be obviously great deals for consumers. all you dads out there, those dad jeans, two pair for 20 bucks, listen i'm mentioning that for a friend not for me or others. at some point this actually is a good thing at least for the consumer, isn't it? >> well for now it is great for the consumer f you're out there, and getting ready for back to school, take advantage of liquidation in retail.
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that is the one bright spot consume that's are savvy. get thee to a target, get thee to a walmart as soon as you can. charles: speaking of being ahead of the curve. you were a bullish and then you got bearish late last year. when the xrt, retail etf was at an all time hard, right? it then started to come down really hard. it recently hit a double-bottom. the down slope, you can see here it is very powerful. how much more pain do you see ahead? are any retail stocks standing out to you? >> i would get more constructive with a nike, more constructive with a restoration. i think we go back to the by pure fur indicated economy. also dollar stores are rocking in this environment. get more constructive in that area. charles: if you sell stuff to rich folks or you sell stuff to people barely making it you might do pretty good. everything in the middle stay away from? >> exactly. avoid the middle.
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charles: kristin, thank you very much. folks up next, my takeaway on the hotel of the future and why it goes back to the origins of mankind. i will explain. ♪ ... >> tech: when you have auto glass damage, trust safelite. this dad and daughter were driving
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charles: so have you seen this video out there, it's this sky cruise, it's a futuristic hotel that obviously be in the sky, in fact this thing is huge. it would house 5,000 guests. it would remain in the air for like several several years, powered by nuclear fusion. it be steered by artificial intelligence which supposedly you'd be able to read everything so would avoid all the dangers in the sky. i gotta be honest, i love the concept. you know but then again, i grew up watching and loving reruns of the old original buck rogers now first aired in 1939 so i'm not that old, but i was a child during the apollo program, and you know, i saw what until that point, have been impossible, right, for a man to go to the moon. mankind has always dreamed of such concepts which empower us in such ways that authorities have actually needed to curb our dreams. for instance the ancient greeks, they created the myths like flying too close to the sun. i've gotta tell you i've got two
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statutes of icarus in my house. income the naysayers are having a field day with this pointing to issues to maintenance to getting the beast off the ground to whatever happens to that nuclear power source if it crashes? even the animated video has some golly, he actually called the sky cruise the flytantic. get it? still this could be so amazing if it came to fruition, when mankind dreams of these kind of things, in the past, it was always about the nuts and bolts, because we always thought about it from jonathan swift and whoever but it always needed some sort of magic power to make it possible. well it is possible these days, right on the cusp of having tools to make all of this a reality. now, the only thing i'm worried about is this becoming part of a spac and being offered sometime this year, right? listen, i salute the folks that really think out of the box, they put no limits on what we can do, they put no limits on where we can go as people. that's how we got to this point and why i'm speaking to you right now, whether it's on your
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tv, whether it's on your phone, whether it's in the sky. we can make it all happen. now i know it's a little intimidating and scary but the main point here is we never want to stop dreaming about making the impossible possible because that is the essence of mankind particularly in this country. all right, liz, speaking of limits i don't know if there's any limits to how much further we can go but we're going to find out. liz: sky cruise gives a whole new meaning to the mile high club? charles: [laughter] liz: [laughter] charles: [laughter] liz: all right, hey, charles, what the happened to the morning rally? we were up 400 points, right? charles: it was like that, i don't what the hell happened to it. liz: what a turnaround right? stocks are now down, with the dow swinging 800-plus points from its peak, down to where we are now, down 429 points. as we kickoff the final hour of trade, it is very much because of a single

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