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tv   Making Money With Charles Payne  FOX Business  July 31, 2022 8:00pm-9:00pm EDT

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larry: thanks for watching, folks. that's "kudlow." please have a great weekend. babye. >> this is a fox business special presentation, "inflation in america." here is your host, charles payne. [applause] charles: thank you. whoo. thank you. thank you very much. thank you very much. appreciate it. thank you. hello, everyone and thanks for being here on this very special edition of "making money." i'm charles payne. in 2020 a plague descended upon the world including in the united states, a century after the last global pandemic. the decision to lock down
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society, stop the spread in lieu of vaccines and cures brought the entire world to a halt. according to the peterson foundation, in the united states $13 trillion in covid-19 relief was authorized. 10 trillion was delivered. so we entered 2021 with the highest amount of cash on corporate coffers, household debt service payments as percentage of disposable income all-time low. the nation had a vaccine, america was ready to get on to business but another financial package was hastily cobbled together. 1.9 trillion american rescue plan, included billions to top off unemployment checks, stimulus checks, 10 of billions of child tax credits, $350 billion set to state for non-covid vote buying. as a result inflation is at the highest level more than 40 years. the specter of recession hangs over our nation like the sword of damomcles. followings we're all now in the
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soup. my bowl this hour is to help you with your most pressing questions. i'm lucky to have the best in the business to cover invests, government policy, monetary policy, alternative investment so make the next time this happens there might be aa way to avoid for mitigate the pain. welcome to "inflation in america," the hangover edition. ♪. charles: so most of the questions we received were about your investments, how to navigate the market which of course is already caused much damage to financial goals of many peoples dreams. i'm lucky enough to have two the best investment strategists to help us kick off the show. joining me now, advisor group chief market strategist, phil blancato and laffer-tengler cio, nancy tengler. i want to jump straight into the questions. the first question is from suzanne howard. >> yes. my question if you can tell us if we hit the bottom of the
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market yet? charles: start with you, phil. then you, nancy. >> okay. wishful thinking. >> sure, we're on the way up. traditionally markets need to wash out completely for us to see a liftoff. this time it's a little different. the key thing that has to change is inflation. in order for that to change the key thing has to stop federal reserve raising rates, in order to stop oil has to come back down below $80 a barrel. until we see oil correct, the fed won't put on the breaks, we're however i don't think far away. mid-september, really october, i think the market will lift off. i think the fed will pause in the september-october time period lower their forecast that is the opportunity to go into the market assuming oil comes down below $80 a barrel. charles: nancy? >> i think you're right. i don't think oil will come back down below $80 a barrel but i
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think time now is great time to add risk to your portfolio. nasdaq is not over yet. corrections take time as phil described. we are in a midterm election year. as independent, as non political as the fed is they're very political. so i think you will see a pause. i think that will be a chance to add more but i would be adding now. charles: some think the fed caused bush, sr. his job, that is, one of the entities he blamed it on. i want to go to david next. he sent us in this question, quote, are we now rotating a way from consumer discretionary because of inflation fears? this is a very timely question because the market got hit a little bit today. actually showing resolve. walmart warned for a second time. it is interesting warning. not that people don't have money to spend, the essentials they need cost so much they can't buy anything else. maybe that is why we're not free-falling. nancy, are you surprised?
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honestly i saw the news initially i wouldn't be surprised to see the market down 1 1/2 2%. i think they're showing a lot of resolve. >> i think we're seeing a lot of warnings, and for the reasons you described we're adding back to consumer discretionary names past six weeks. this is fair time. you never hit the bottom. being a investor is pert pet all state of dissatisfaction. you buy it is not enough. you be disciplined. dollar-cost-average your way in. a the lot of consumer discretion nary stocks. charles: lulu looks like a screaming buy. although i would warn the company says we won't make money for a long time, i wouldn't necessarily by the stock. sandra, email question. people already retired move iras in cash until the roller-coaster ride be over? how can people still working protecting 401(k)s, can they
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move some of their money into cash to continue to contribute along the way with the employers contributing? this is sort of a complicated question. phil, should they get cute with retirement? >> no. first off, 401(k), company supplementing income give that match, always take advantage. second off, doesn't matter degree how long you have to retirement. if retirement one or two years get more conservative in investments. assuming you're still working lengthy period of time five years, stocks are best infreed end in portfolio inflationary period. things inflate and stocks are finally cheaper. to your point prices are better than they have been in quite a while. for that reason you should be a buyer of stock in 401(k). cash is never winning an investment. it doesn't work. bear markets last around 11 markets. bull markets last average four years. average return after bear market 24%. if this is at the end of a bear
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market this is your chance. charles: put yourself in the future 10, 20 years out, look backwards, do you think you you wish i bought i wish i held, answer is 99% is you wish you bought and held. elvira in the audience with a question. >> hi, charles. charles: hi. you picked the write color. we're simpatico. >> we have good taste. based on of the current economic situation where would a go place be to invest $100,000 next year posttax. charles: nancy, start with you on that? >> are you selling for a year? >> no future educational purposes for children. >> i think you want to be exposed to dividend growers. this is a good time, because in our portfolio for example, dividend growth is 9% that used to be way ahead of inflation. not so much now. that's a great way to get paid to wait for the stock, the underlying stock to outperform. so there is plenty of ways you can do that. there are great etfs, dividend
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aristocrats, all sorts of places individual securities. pick 10 of your favorite names that is another way to do it. charles: one thing i love about nancy and phil, the reason i asked them to do this they always come on every show with specific strategies, right? it is just not sort of plain vanilla kind of stuff that doesn't help you. phil always has something elaborate. what would be your answer to elvira on that one? >> what is your favorite toothpaste? i bet it is made by proctor & gamble. proctor & gamble has a wonderful dividend. be paid to wait around. that stems volatility because you're earning a big dividend. six to nine months from now, growth comes back in favor, we grow as economy think about different allocation. for now own proctor & gamble, own names you go to. what is your favorite hotel chain that pay as nice dividend? by the dividend payers. be paid to wait around. you will have great success. charles: robert sent this in a question. what is the best long-term
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dividend stock? phil gave us an answer. do you have a favorite dividend stock here? >> i do but i'm a portfolio manager so i have two. we have to hedge. i think this is interesting time to buy target. they just grew it 20% and i think you want to use weakness to add to apple, not a huge dividend but a huge dividend grower. so those are two names. charles: are you a fan of dividend aristocrats? >> yes. charles: folks these are companies that hiked their dividend yield every single career for at least 25 years. i think it's a wonderful list to begin with. i would go through them with a fine comb. sometimes they will hike it by a penny just to stay on the list. okay. technically you're an aristocrat, that is more like a pauper move but does it mean something when a company is that committed to sharing cash? >> my partner and i wrote a book on this in the 1980s, relative dividend deal, don't buy it. i think it is out of print. what we said was, it is true,
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management set dividend policy based on long-term sustainable earnings power. they don't want to cut the dividend f they have the conviction to raise it they're better than that than wall street. wall street is wrong 2/3 of the time on earnings estimates. >> smarts and wisdom never go out of date. video question from louise. >> hi, charles, louise from indiana. i have a couple questions, i i want to build passive incomes using stocks that pay monthly dividend. also i would like to invest in i-bonds and wondering if that would be a short term or a long-term since they are paying a high rate of return right now? charles: we hit dividends hard. let me go to you, phil on i-bonds. everyone is asking about them. i think they're amazing. i think there is one draw back, not a draw back but limit amount
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you can buy. >> can only by 10,000 bucks. there is limitations. >> explain to the audience about them they never heard about. >> basically lending to the federal government based on high price of inflation. you spend $10,000, federal government give you a 10% dividend, nine plus. they could have duration as much as three years, five years if i'm not mistaken. some cases 10 years. you look at bonds a chance to commit capital. to your point it is a limited amount. you can only do $10,000. a great way to supplement her income. she touched on something if you're in a dividend portfolio take your dividends out use them as income, don't affect the principle. fund the portfolio with i-bond. it is not a lot of money. getting supplement of income out of ton of high inflation. charles: want to add something on to that? >> no. i a he agree. i think you're very smart. >> appreciate it.
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charles: remember, give a round of applause folks, they're absolutely phenomenal. brilliant, brilliant folks. so we're going to of course stay on markets where they go from here. largely near term will depend on the federal reserve. everyone is groaning when they heard that. unfortunately that is the question. a lot of people are sending in questions about powell and company. in fact we'll start off with one right now from frank. frank, he emails actually his question and says, how high will interest rates rise? you remember the old commercial with the owl and the lollipop? how many licks to the center of a tootsie roll? i think you get the answer to that before we get to the answer of this. although i could have not got entwo better people to help us, when i say brilliant. i mean brilliant. welcome in the two next guests, superstars on the federal reserve, quill intelligence ceo, danielle dimartino booth along with bianco research president
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phil bianco. danielle, did you hear the question? >> i heard the question. charles: tell me how many licks to the center after lollipop or answer the question? >> i think we'll see a three handle before it is all over, believe it or not. a lot of market participants think jay powell will get scared and hit the panic button and stop. to the extent he can he wants to be as tough as paul volcker was on inflation. i actually think unlike prior midterm cycles or any political cycle i think he will press forward into the midterms not appear if he is trying to curry favor with one party or another. which is not how the federal reserve usually operates. charles: right. phil, you've been writing, jim, you think he has no choice but to go strong, go hard on this? >> i agree with danielle. he has got a credibility problem. they used the word transitory last year. that turned out to be terribly wrong.
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they have to rein in inflation. the only tool they have is to raise interest rates. i agree with you we could see 3%, high threes in six months, but on longer term interest rates they may be closer to peaking out. we may get the situation with lower higher rates which is inverted yield curve. charles: that changes the conversation from inflation to recession? >> right. >> inverted yield curve has a good track of predicting recession. charles: five and 30, some odd combination? >> three month. charles: okay. >> that should be inverted by tomorrow. charles: get to some questions from the audience, okay? first one sent to us by ll. if interest rates usually have to exceed the rate of inflation how high do you see interest rates going and do you believe the fed will be able to orchestrate a soft landing? i guess no one sees it getting that high. it is almost an impossibility? >> it is at this juncture and i
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would venture to say any notion of a soft landing is being refuted every day by one company after another announcing layoffs. that they overhired. they're not seeing adequate demand whether walmart, at&t, verizon. general electric today came and said we have billion less in cash flow than we had expected. i think a soft landing is kind of fantastical at this point. charles: what about this, jim? the notion that the markets are doing the work for the fed? the reason i say that, we got new home sales in, folks, if you're going to sell a home or buy one, in one month $40,000. one month median price. that is kind of crazy. we know it was exponential. we knew it would blow up like a roman candle but golly. >> the market is doing the work for the fed. that is a nice way of saying that it is making everybody miserable because it is making the economy go in reverse. the whole idea we were never supposed to have the markets do that in the first place but you
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know, as far as interest rates go to the original question, yeah, inflation is 9%. we don't need them to go to 9%. there is a broad belief that inflation will come down. is it going all the way to two? probably not. but it might go to three or four which means that's where interest rates will probably settle. charles: let me ask you something philosophical, people not necessarily in the markets. sitting at home last year all of sudden you opened up the mailbox you got a check. okay, you took it, cashed it, went to the mall. what the hell are you going to go do? that is why they sent it to you. you're having a great time, your neighbors are having a great time. then you hear about a year later the government, between the federal government around the federal reserve deliberately want to hurt you, deliberately want to make your house worth less. deliberately want fewer people to have a job. is there something wrong with a system that does that to the american public? >> there was something very wrong with all of the people who were surprised at the money they didn't necessarily need. i can't tell you how many
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american families were like, i feel like we should be giving money to people who need it. i don't need the child tax credit in cash. they spent it. in many ways they did. we're seeing auto repossessions go up. loads of rv possessions. boats will be next. banks don't know where to put them. the backlash this created inflation regressive of all taxes. federal government authorized the spending and federal reserve monetized every last penny of it. that is huge, never monetize the national debt. they tell you that on the first day when you're inside of the federal reserve. trust me i remember. yet we did, a lot of it. charles: get some more questions. i want to go to bill who sent a video question. >> hi, charles. bill from red bank, new jersey. why does the fed talk about raising rates expeditiously when energy, foot, essential daily costs make up the bulk of that inflation which the fed can't fix with higher rates? i guess a secondary question
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would be is core inflation moving lower, because the headlined energy-based inflation remains stubbornly high. thanks for taking my question. have a great day. charles: fantastic questions, what do you think? >> as far as second-the question core inflation moving lower there is some argument what you try to do with core inflation, remove energy prices, remove food prices but you can never remove them from everything, transportation cost, everything else, that might be impacting those prices. as far as the first part of the question the wall street acronym is what the fed can't print it ships, the fed can't ship oil. so what are they trying to do? i will point out to everybody the u.s. has the highest inflation rate in the developed world. portugal recently took us out but we have a very high inflation rate. rest of the world has supply chain problem. rest of world has ukraine problem. rest of the world has high energy prices. why are we number one? we talked about it a minute ago. we mailed out more money than
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anybody else. that is why we have high inflation. fed can do something like that. rein in rates to curb excessive demand is where they're going. charles: the tough part i did was i did my part as an american. money you gave me. i thought there were no strings attached. boy do these strings hurt. michael in the audience. michael? is anyone -- we'll get back then, okay. i got an email question now, sent to us from brian. idea that jay powell can fix the economy with only monetary tools seems like a pipe-dream. remember paul volcker, ronald reagan on fiscal side doing all he could for the fiscal community. it's a dumbbell with monetary on one side, fiscal policy on the other. jay powell cannot do it with fiscal component alone. why is there so little conversation about this? danielle, i mean ironically, if the white house had their way we would be brenting more money f it wasn't for senator
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joe manchin, can you -- if "build back better" had gone through with more, i don't know how much it was, i forgot the price tag, how much exponentially would inflation be? it would be even -- >> we would be staring down the bearable of double-digit inflation and double-digit inflation that continued to rise. charles: right. >> the same type of speculation that has fed people who buy homes to rent out, speculation everywhere, that would have continued, actually increased because again the fed is the, the fed is the other hand. they're monetizing all of this. i think jay powell. i'm rarely defend this man you know that charles, but i think that jay powell is actually relieved right now that he is not being pressed upon to print more money. that right now fiscal policy is on hold so that he can try to get this inflation under control. >> he might not be pressed to print more money and i agree with that but he was pressed by the president last month when he was at the oval office and pointed at him, the president said the job of bringing inflation down is to the federal
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reserve. so jay, go make it go away. so you could argue the question was right, does he have the tools he can do something about it? maybe, maybe not but he can't say, i can't do anything about it. the president just ordered him to. >> jay cannot create a pipeline. charles: if you're paying attention on sunday elizabeth warren wrote an op-ed in the journal essentially saying she will blame jay powell when everyone has feels pain that he was ordered to inflict upon us. >> bless her heart. charles: bob sent this question. which inflation cannot be put down by the fed? will we have stagflation no matter what powell does because we need more energy? what do you think about that? let me start with you, jim, stagflation, is that still a possibility? almost like we should have bingo cards, inflation, deflation, disinflation, stagflation. already in the show, bingo, what did i win? 10 bucks. >> stagflation unfortunately is reality. it is not even a possibility.
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when you've got 9% inflation now which is the highest in 40 years, if you believe a lot of wall street, there is no reason not to at this point, thursday's gdp will probably be the second consecutive negative quarter and you've already got the white house trying to spin that as not being recession. charles: right. >> that is stagflation. the good news about stagflation, the bad news nobody wants it. good news historically it doesn't last maybe long, maybe a quarter or two several months. charles: it lasted a whole decade in the '70s? 65-82. old folks i remember that. i was there for that. golly was hell of a time. pushed my volkswagen up the block. i was in gas line seven days. come on on, jim. >> we were still creating jobs as a country. we were still growing as a country over that decade even though it was punctuated with stagflation. charles: we have to leave it there. danielle, jim, you are two of the very best. we were lucky to have you. folks give them a hand.
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[applause] charles: welcome back to "inflation in america." this is the hangover edition. as you know inflation is at a 41-year high. by the way it is not just gasoline and food prices. core inflation is wreaking havoc over household budgets and now those in power say the only answer to fix all of this is deliberately break the middle class by what they call dampening demand. sort of higher inflation to fade like breaking a fever. i know it sounds painful but is it really the only answer? i asked on twitter where people thought we were, fundamental efforts to change america and greatest fears were, inflation, recession, decline were the answers. there you go, 68% think we're in permanent decline. later on i get what you guys think in the audience. right now i want to bring in the editor of strategic intelligence
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jim rec kertz, chairman of forbes media, steve forbes. steve, by the way, current best-seller, "inflation." talk about a faustian deal, how the hell did you write a book on inflation on the eve of runaway inflation before any american ever saw before? how did you know? how did you know? >> i wish i knew what the stock market did i would be on the for example 400 list. i'm trying my whole life. >> you can't accidentally put your name on there? >> then the irs would say how did you get those numbers? charles: only one man said he wanted to be the list. you can take a guess who that was. you have an amazing grasp on government history, politics, everything else. you know history like everything. of course that is one of the reasons i invited you on because you know this is, what's happening here to me subpoena a global effort by certain people always saw the west as too
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large, too important, too powerful and you know, have attempted to somehow balance things in their minds but i think they're making it worse. >> they are definitely making it worse. you're right about the effort behind the scenes. it is not a conspiracy theory. we know who they are. the world economic forum principals. christine lagarde, janet yellen, the others, they're the global financial elite. they're not unknown. there is definitely a agenda. gee, too bad gas prices went up so much. that was the plan. for years they said we wish gas prices were higher so people can buy electric cars. people can barely afford a 30,000-dollar car. they can't afford a 70,000-dollar car. a lot of this is by design, you're absolutely right. charles: invite everyone to read papers by yellen, keynesian theories she and her husband had. it has been out in the open a long time. unfortunately we're living it the hard way. let's go to the audience with ty. you have a question. >> how are you doing, charles?
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charles: thanks, man. >> thanks for having me. i am the first member of my family to graduate from college with an advanced degree and become a business enter. what kind of investments should i seek during this time of high inflation? charles: first off, congratulations. [applause] steve, let me start with you. the forbes, is the bible of business, if you will and a lot of young entrepreneurs. i read it as a kid. i memorized the forbes 400 in 1908 when i was in high school. >> i you are a genius. charles: the answer ty is looking for. >> preamble, my grandfather said you make more money selling the advice than buying it so beware. at times like this in terms of investing you have to divide in two parts. one is retirement funds. you're a young man.
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keep invested, a reserve fund, a little bit of gold, a little bit of cash, keep it in the market. the country always comes back. don't get whipsawed by timing. on investments, look at ones people are talking about, you have time for real estate. not all real estate is good. there are bargains out there. u you have hard haas sets. buy a little bit of gold. it has been a hit recently i think it will go up next couple years. stocks that pay dividends but go up, not just dividend now but have a history of increasing dividends. even if the value of your money is going down you have a chance to at least keep up with it. the fact of the matter inflation makes it very difficult, especially monetary inflation makes it difficult to stay ahead. be cautious. there is no silver bullet are on this one. charles: only thing i would say, ty, as a small business owner, from a business point of view, a lot of people say when you start a business, pay yourself first. that is bad advice. i think there are times you won't get paid at all to make it
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over bridges over troubled waters. be committed to invest your business. find the best, smartest committed business people out there. >> by the way when we were growing up we heard stories of my grandfather during the great depression, cut himself a check. didn't cash it because the money wasn't there. years later, so yes, you're the last one to get paid. you have to pay everyone else before. charles: want to go to andre now. andre has a question. >> hi, charles. charles: how is it going? >> so during the pandemic congress spent trillions of dollars to keep the economy going as you mentioned. of course now we know it was too much but was there an optimal balance between keeping the economy open and preventing the inflation we see now. charles: jim? >> there was. probably what i call the first wave of government aid that went along with the first wave of the pandemic really was necessary to keep the u.s. from falling into something more like great depression. payroll protection plan or paycheck protection plan in particular did a lot to preserve
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jobs and businesses. probably where we went off the tracks was the second trump distribution which came in december of 2020. charles: you think that was politically motivated? >> i don't -- charles: they started talking about it before the election. felt like in other countries are doing it. to your point we didn't have to do that one. we certainly didn't have to do the one last year? second one was worse. done by biden administration february of 2021 was definitely over the top. caused inflation. larry summers called that correctly. even the second trump distribution in december 2020, 600-dollar checks. probably that was too much. first wave we probably needed. second trump distribution and certainly the biden distribution put us on the path of inflation t was too much. the idea was quit while you're ahead. charles: i would add, we don't have any scientists up here but maybe we shouldn't have closed down the way we did for as long as we did? >> look at all the countries around the world with stringent
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lockdown, new zealand, australia, chinas. they can't get out of their way. they are still locked down. we were initially applauding that. maybe a way ultimately something like this, you know, we panicked. hadn't happened in a hundred years. i think in hindsight i think maybe we overdid that. great question, andre. isaac is in audience with a history question for us. >> hi, charles. i want to know is today's inflation worse than the 1970s? charles: steve? >> i think it is different from the 1970s. a lot of the inflation that we have now what you might call supply side inflation, disrupting of supply chains, things like that, when you go to war, you disrupt the economy, shortages exist. getting out of a wartime economy after world war ii, prices shot up for a while and the economy adjusted to the new realities. so it's a different inflation but also, i think potentially a more dangerous one in the sense
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today the a least we know how to to fight monetary inflation even if they don't do it but the danger is global crisis are coming up whether with the euro, the japanese yen, with developing countries defaulting on their debts where the federal reserve may end up going backwards instead of sticking to the course. by the way the fed shouldn't be raising interest rates. let the market raise interest rates or cut interest rates, borrow and lender. the fed should be focused on a stable dollar, not too much, not too little and some day, i hate to say it, probably get me banished in we'll have to have a gold standard. so that is the big mistake coming out of the '70s. reagan wanted to go back to what we had before we went off gold in the early 1970s but didn't have the political power to do it. charles: jim, we have less than a minute. follow up on that. i want to point out today, i'm not sure if everyone saw this in the eu, they're forcing countries to use 15% natural
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gas. you have already got the countries on the mediterranean saying are you crazy? portugal, greece, italy. all because germany is chasing this green utopian dream. their people will have to spend so much money on electricity this winter they're forcing every european country. i bring that up, i feel like, steve you jarred my thought on this, all these grand experiments they're barely holding them together, aren't they, the eu and all that stuff? >> this is energy policy by press release. you're right, charles, they keep making these announcements but they haven't done much. they said would cut down western oil imports effective at end of august. western natural gas, end of this year. said would cut down natural gas 15%. well, not so fast. a lot of this is press release. they're not doing anything. the guy who is doing something is putin. he is slowly turning the tap. he is a very savvy chess player. cut it off all at once could
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turn into world war iii. he turns it a little bit at time. germany could be freezing in the dark. talking about rationing. millions to keep the lights on or industry. they will both sufficienter. >> leave it there. we have to give a hand to the ogs, don't we, jim and steve? thank you very much. [applause] thank you for sharing your knowledge and wisdom. when we come back the world of cryptocurrency has captured the imagination of the entire world. it has given people dreams of maybe their own financial freedom, some way to get out of the clutches of government and flawed financial systems. [applause] ♪. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an invesco qqq, a fund that gives me access to... nasdaq 100 innovations like...
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denied. how do we feel about getting a quote to see if we can save with america's number one motorcycle insurer? should flo stop asking the same question every time? -approved! -[ altered voice ] denied! [ normal voice ] whoa. ♪. charles: welcome back. cryptocurrency is scaring the hell out of governments and the establishment around the world. think about it, replacing fiat currency with decentralized revolution means loss of power and control. we have natalie brunell and haley linen. we have lots of questions. ladies before we get to them, been rocky, a little bit rocky but it's a growth phase. i always have crypto guests on. are you happy right now where it is in its trajectory the way it has gone the journso far, natalie? >> absolutely. i'm impressed by bitcoin resilience.
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especially for people at the 60,000-dollar range, oh, it is too expensive. here is your opportunity to get in. when you zoom out bitcoin's performance speaks for itself. charles: when it goes down, you find out who hates it. all old school haters is dancing on the grave. they come back, wait until next time. >> diamond hands. charles: right, haley? >> definitely agree. it is a difficult as an attorney in this space. the more issues we see with crypto that gives regulators talking points but i think the way bitcoin price has held, especially compared to the dollar over the last year and the journey that bitcoin has taken over the last 10 years is impressive and exciting to watch. charles: it really has been. i want to go to some of these questions. bobby jo sent this one. what do you think about crypto regulations? haley, where are we now with that? >> that's a big question. so what i would say is that the u.s. for a long time has had trouble because there are some federal and state regulators that touch on this space.
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often times the federal regulators are not in line with one another on how to regulate the space. charles: is there a battle going on over jurisdiction? here in d.c. everyone wants a piece of the action. who should be in control? >> definitely there is a battle. fcc and cftc cannot get on the same page there is almost a regulatory land grab now. we saw news from the doj and the sec about an insider trading case with coinbase and in that the sec really alleged at least nine cryptocurrencies were securities but they didn't name coinbase in that complain. and so we're seeing the sec continuing to try to pull more and more cryptocurrencies into their space and the only cryptocurrency that the sec and cftc really agreed about is bitcoin being a commodity and not in that sec jurisdiction. charles: as someone who believes in this, maximalist, would you call yourself that? >> yeah, i would probably call
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myself that. charles: would you welcome this? i look at, i have just 1.1 bitcoin for the record. i put a toe in the water but i'm dubious. i get worried. i know it needs guardrails. it is kind of like the wild west right now. do you think there might be some nefarious you know, alternative really measures by the government for wanting to be involved so deeply? >> i think we need regulation really are got clarity, so it opens up more avenues for people to invest, for pension funds to get in, for more retail awareness really. i'm not worried about nefarious activity because bitcoin has never been hacked. look at fallout from companies we see from companies were not properly collateralized, or collateralized against bitcoin. they dropped a bit. we need regulation what is a token, security, all of that. >> what we've been seeing the sec only regulating through
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enforcement action which isn't active enough in preventing the real problems in the industry and just going about things in very enforcement way without writing new laws. i mean so, in terms of how the sec regulates it is the howie test, a really long old case law they're relying on and the industry has long said maybe this new technology that could not have been thought of when these laws were created and written shouldn't apply here. of the sec should go back to enforcement action. charles: the next question from louise who asks would the entire world would use crypto even limited to certain projects, the entire world? >> i think the entire world will be using bitcoin. why? because we need superior form of money. charles: will there be enough bitcoin out there to make it viable backbone for the entire global financial system? >> that is exactly the point. you know what bitcoin is immune to? inflation. we need a pure form of money
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from inflation. who benefits from inflation? the rich people, the people who have assets and the people at the bottom really suffer. we never had this bout of wealth concentration since the late 1920s. money doesn't trickle down but default will trickle up. at some point that money printer will go broke again. it is math. when it does the bubble gets even bigger. wealth concentration will get even worse. thank goodness we have a parallel system through technology we can peacefully exit into to start accumulating bitcoin to fix some problems and leave behind fed's monopoly of money. charles: haley, you will be pretty busy then. >> job security. charles: they will not let go easily, world governments, fiat currency, the establishedment they will not let go of stranglehold on everybody's lives. >> there is definitely a reason why u.s. regulators are responding to the space as aggressively and unclearly as
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they are and part of that i do think is intentional because bitcoin challenges the u.s.'s monetary policy and how we deal with money and how we print money and the bitcoin will there ever be 21 million, there can't be more. my view a hedge against inflation even with the volatility we've seen recently. charles: we've got to leave it there. give a hand to natalie and haley. [applause] i think you guys converted a couple of them, [laughter]. all right, folks when we come back, i will take my shot answering some of your questions so stay with us. [applause] technically when enamel is gone, you cannot get it back. but there are ways you can repair it. i'm excited about pronamel repair because it penetrates deep into the tooth to help actively repair acid-weakened enamel. i recommend pronamel repair to my patients.
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[applause] charles: welcome back to the very special edition of "making money," our "inflation in america" town hall live from fox headquarters right here in new york city. i want to go back to the audience with more questions, going first to dell m. dell. >> hi, charles, how are you? charles: good, thank you. >> i have a short question. when will the recession end? [laughter] charles: i've got a long answer. [laughter]. i was ready for this one. so here's the deal, i think
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recession probably can end later this year early next year. the dynamics of the economy is shifting really at record speed today alone consumer confidence tumbled lowest level since 2013. median price home plunged $40,000 in single month. the jobs market, everyone will be shocked, my goodness, what happened to all the jobs? the writing is on the wall. the only wild card maybe possibly us entering some form of stagflation. now here's the problem, the reason the white house keeps trying to get everyone to focus on the national bureau of economic research, mber. it takes them a long time, look at this a long time to time stamp the start and end to recessions. if you want to invest using this as a backdrop, a lot of books say wait for the mber to say the
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recession is over, you buy the market. that means probably pay up a whole lot for stocks. the s&p 500 was already up 59% from the end once the mnber announced it was over. nobody will be pin the bottom for you. end of 1990, 1991, found bottom of that recession, by the time the nber called it you would be up 49%. so here's the thing, think about recession and think about investing. find stocks you want to own, you want to take advantage of and buy during this weakness. you heard it during the show, as scary as that may feel, that is the best way to get through this in terms of looking forward to your own personal prosperity. i have a question from james g. here in the audience. james? >> charles, i was just asking what is the best investment strategy of these times of high inflation? charles: you know, the book says tips which are treasury bonds,
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cash, short-term bonds, gold, commodities real estate. i would like to have some cash. at one point earlier this year i had my subscribers 45% cash because it is nimble. you can use it when you want to use it, even though you're losing purchasing power. commodities i think will come back. i think of course they had a huge run at beginning of the year. they're pulling back but i think they will go back up. in fact i think oil will go back to test the high. you want some exposure to oil. gold, listen, i don't know what's up. it is not living up to the old hype. i own some gold personally. i wouldn't add to it. i have bitcoin i wouldn't add although the ladies almost talked to me into it. she is asking what should we invest in ahead of inflation to not lose all of our saveings? the one thing investing is a long time journey. we learned this year, there is no perfect hedge. everything is down.
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the old 60/40 portfolio if you have a money manager or personal financial advisor they told you 60/40, 60% stocks, 40% bond you are getting crushed, absolutely annihilated. this year everything has gotten annihilated. you have to be careful. over time, you know, afternoon loses its purchasing power. you can't to invest. look beyond this period, beyond this point as tough as it is. i think everyone here is looking at future prosperity. don't get too hung up on making big changes in your portfolio trying to stay ahead of the latest thing. we've got a question, video question in fact from steve in illinois. steve. >> hi charles, my name is steve. i live in glendale heights, illinois. i'm66 years old. i've been retired three years. currently living off social security check. holding off dipping into my portfolio. inflation is starting to force me to rethink that strategy. my questions for you are, a, how
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much money should i have in stocks, bonds, cash, and b, what percentage of my portfolio should i start withdrawing to supplement my income? i appreciate it. charles: this kind of question is stuff, because this is all individual basis. for me at that age i'm hoping to be in 70% stocks, maybe 10% bonds, 10% alternatives, 5% cash. i mentioned the 60/40 portfolio. bonds had 40 year bull market. i don't think you find that back. you have to have something to filled void. next video, tom from southwest florida. >> hello, charles this is tom in southwest florida. i would like to thank you for taking my question today. my wife and i are long-time viewers. we have $150,000 sitting cash right now we would like to invest. how should we invest that money in today's market? it can sit for about five years. we don't have to access it right away. thank you so much for taking my
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question. charles: that is a great question. i like the five-year time horizon. a lot of stocks i bought on my own years ago think i would hold them five years. a lot i have longer, apples, amazons of the world. i think now you want to find a different five names. some may be older solid boring companies or some paying exciting names. that is decision you have to make. the commit amend to be in them five years or a decade, stick with them. make sure they have a value proposition. don't set it and forget. you have to make sure it lives up to what you thought it would be. that doesn't mean quarter to quarter. any stock changed quarter to quarter will be a mistake. lisa teacher in florida, said i'm in my '50s. i've been in conservative investments. is ira good investment? i love your advice, charles. charles: stay in this market. you cannot be active in the older years without being in this market. if you want to stay in the
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market to be cautious that is very fine as well. of course i appreciate you, thank you very, very much for that question. quick i think we've got a question from the audience. komika. >> hi charles, thanks for taking my question. charles: hi. >> as a plaque woman, a corporate officer of a fortune 200 company i'm responsible for expanding products and services into diverse markets. what challenges does the minority community have that companies should be aware of and responsible for helping to help? charles: i would say the most, for me right now honestly i would say lip service. you know, be aware of the companies that just want to write a check to make it all go away, particularly the last couple years. a lot of companies promised things, wrote lots of checks and millions of dollars, mostly went into peoples pockets. not a whole lot of things change. ask companies to invest in education, local education and entertain, help people in terms of getting knowledge, right?
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you know, but the days of writing a check or lip service should be over. it is just smart. right now, right now, honestly every company should be looking at all facets of our society without getting political and look at every single american as a potential user of their products or services. all right. folks, i want to thank everyone here of course at home for watching. by the way the show is doing great. our viewership is through the roof. my book, unstoppable prosperity has done extraordinarily well. it's a great honor to do all of this. i never take it for granted. investing is not easy, yet i implore everyone to stay in the stock market, especially taking the time to find individual companies you want to be co-owner of. think you're co-owner of these companies. listen we deal with our own insecurities and our own frustrations even knowledge that the system is unfair. listen i told everyone this is not a fair system. the elites play by different rules. i still want you in this. in fact it is not good you have
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that they have the edge over you. don't worry about all of that stuff, folks. don't worry about that at all. stay invested in the stock market. before we to, one more thing i want to share with you? do we have time for this, my mantra, can i give this? don't let anyone derail your dreams. i ahead out i read lyrics from a song, a group called crowded house. freedom within, freedom without, try to catch a deluge in paper cup, a battle is ahead, many battles are lost, but you never see the end of the road while traveling with me. hey now, hey now, the dream isn't over, hey now when the world comes in, they come, come to build a wall around it. we know they won't win. thank you all very, very much for being here with the special. don't let them beat us. thank you very much. thank you very much. appreciate
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