typical work world and they're angry. will that anger persist? >> i actually hope it does. i hope young people get angry and angry fuels thought. be angry do not sin. there is something motivating because of what happens in the world we need to do something. there is too much apathy. nobody is digging in. president says what gas prices are, the president, he must be saying what is correct. dig in. neil: be angry. >> be angry in a way that helps the world get better. neil: what you're saying be a little more italian? >> depending on who i am talking to. >> that be angry, that is a whole different anger issue. neil: charles payne to take you through that. never anger. always well-seasoned and well-mannered. charles, thank you so much. charles: believe me i need all of that today.

we all do. great show, thank you, neil. i'm charles payne this is "making money." stocks early in the session tried to gain traction. they coin, right? they're slipping, big time after a disasterous bond auction sent bond yields higher this is huge in so many ways including the fact i keep underscoring this. this is a question no one really answered, without the federal reserve to buy our bonds, china, japan, dumping them how do we fund the u.s. government? president biden declaring war on fossil fuels. he said it on the campaign trail, first thing he did in office. now he is trying to blame the industry for pain at the pump. taking a shot at capitalistic actions, taking profits, buying back stock. president biden: bring down the price you charge at the pump to reflect what you pay for the product. your shareholders will still do very well and the american people will catch a breaks they deserve. charles: tracy shuchart here to

help explain when is going on. why she says the administration has completely lost touch with reality. tesla edging higher before the bell. investors watching this as a possible proxy for the overall market. how americans are coping at the supermarket. the changes bring to mind desperation and despair. all that and so much more on "making money." ♪. charles: all right, folks tensions continue, right. you can sort of feel it, really. investors are grappling like a thick menu if you will of doomsday scenarios. on one hand, runaway inflation. potentially economic recession, how deep it goes, we don't know. we know it is housing recession, earnings recession. maybe more important sentiment recession. despite multi-century track records for the united states and the stock market to bounce back, you know, we always sort of give up on the stock market. sometimes it is at the exact

moment when we should be betting on the very system that it was built on. we're talking about a foundation of the american spirit and it always comes back, in fact i want to share a chart. ryan dietrick posted this. this is great. two years began worse than 2022. they both actually started to bottom in this month. you had 1974, you see early october started to make a move higher. then you had 2002, same thing, started to make a nice move higher. either it is now or never, i will say that but there is historical precedent for this being a point to maybe start turning around. speaking of which, embracing 90% of our guests over the last, three, six months, have said earnings season will be an unmitigated disaster, so far, so far it has not been an unmitigated disaster. not only are earnings coming in nice. this is guidance folks this is guidance.

it is actual positive so far. let's hope that continues. then there is this, the bond market. you won't believe this. tlt is a 20 year bond. this is the put/call ratio. we're seeing a record amount of calls. someone is out there, not just someone, a lot of people are betting maybe, maybe the bond market has sold off, just maybe. the big question of course is how do we survive this, how do we survive this gauntlet of tension and fear and really find a way to make money on the other end? joining me a man who knows how to do this better than most, crossmark chief investment cio bob doll. i was reading your note. by the way fantastic note and the first line i guess said it all, right? it was a strange week for stocks. you were talking about last week. how would you describe this week thus far? >> just as strange, maybe stranger, charles. it's wild. i loved your comments up front. it takes time for the economy to be figured out and do what it is

going to do and we in the stock market want it solved yesterday. we have time risk in my view more than price risk from here. we may be in a long-term bottoming process but the stock market is going to have to take a maker sense pill or two to let the economy sort it out. charles: you also made the point i think, by the way everyone needs to ponder, the level of rates in bond yields right now are manageable for, when you say relatively healthy and leveraged economy. it seems to really auger then at some point if we stay in this realm, you know, even though much higher than we've been accustomed to, this should be a good enough backdrop for a solid stock market right? >> eventually. i don't think yet. the stock market doesn't know how far interest rates will go up. it doesn't know how far the fed will fight the inflation game, how high will it take rates. until the stock market can see the end of interest rate rises i

think it will be a lot of toing, froing, frustrating bears. until we get to that point, charles, one of the green lights you look for. fed is done, rates done going up. we start to look at the other part of the cycle. charles: bob, two hours ago, a auction on 20 year bonds, 19 years and 10 months, it was disaster, unmitigated disaster. yields spiked up. mortgage rates spiked up. that is when the market spiked lower. a lot of things come to mind. you talk about the bond yields where they go, being a major indicator when we want to become more aggressive for stocks. how do we run the country if no one out there is buying the bonds? >> that's a problem. people not buying bonds is a sign rates have to go higher. there is someone out there, i'm note disagreeing with them, that fed funds for example, might need to get 5% before they are

finished. a long way the consensus has been. first it was threes, four, four 1/2. this is how things go, charles. meantime there is a strike on buying bonds. charles: before i let you go, risk assets, most risk assets are way oversold and primed for a bounce. patience is the key right now but in the meantime patience for long-term rebound but in the meantime do you try to game these bounces at all? this is our sixth bear market bounce this year or do you kind of watch them from afar? >> when markets get as oversold as they were and sentiment gets as negative as it is, problem probabilities you get a bounce. doing buying in anticipation of that, charles, to me makes sense but when you get to the other side you need to let those trading positions go because we're probably coming back down again. charles: you have to be nimble and patient. one thing no investor outside after handful, doesn't come

natural, let's put it that way. >> here here. charles: bob, thank you for being here. particularly to start off the show. moments ago, folks, president biden laid out the latest scheme to curb higher oim and gas prices. draining more emergency supply. of course shifting the blame to oil companies. the administration somehow thinks oil companies should produce more even as the administration is selling the nation's reserves. by the way they're selling it at market price, profiteering price, wink-wink? the implication that oil companies are being simply greedy. i want to start the segment, bring in a special guest. lay off with a few facts, start with that, utilization, right, utilization is near max. 100% utilization where we are right now. there is not a lot of room if you look at it for oil companies to even start to produce even more, even if they could or wanted to. here is what they have done though. rig count, oil rig, natural gas

counts, up 226 of them in the last year. that is about a 50% increase. so the notion that they're sitting back and just counting their money is absolutely wrong. you know, here's the real big problem though, the refinery, this is all in my mind centers. the last major oil refinery in garyville, louisiana, was 1977. i urge the administration, if you truly want to put together a plan at this moment, use the defense production act, expediate the building of at least three more refineries. i think that would be brilliant. but my next guest has even more brilliant ideas. she is one of the best in the business. intelligence quarterly partner tracy shuchart. tracy, your thoughts what we heard moments ago from the president? >> well, that was quite the speech, wasn't it? he laid out a three-step plan which we kind of knew ahead of time because they did have the press release yesterday. so we are going to have another

15 million barrels out of the spr released in december. then we set a plan for oil companies to produce more because he will buy them back at $70 a barrel. i'm not sure that's the, any real incentive for oil companies to produce more especially when they bought those barrels for you know, 80 plus dollars. charles: right. let me just jump in for a moment. just imagine, if you ran a business, any business out there and someone came by and hey, you're selling these chat keys for 20 bucks. tell you what, sell them 15 i buy all you got. that is nuts! doesn't make business sense, alone for the major investments oil companies have to commit to. they know the administration declared war on them already. i know he tried to win an election but i hate the demonization of any american industry, particularly one as important as the crude oil

industry. >> well, yeah, absolutely. then his third plan, after gas retailers which we all know, that they literally make 15-cent a gallon. then after operating costs and labor costs, literally make two cents a gallon. all they make the money on is convenience store. they make no money on actual gasoline. the fact he is telling us that retailers are gouging the american public is simply just not true. charles: it is not true and it is so sad because -- often these are ma and pa shops, over 60%, first generation workers. you take away the cigarettes and vaping they won't make anything except for the chewing gum. here is something i'm really concerned about, i think we got a chart, we'll bring it up. where we are with distillates, diesel, finally admitting the diesel inventory is a problem by the way you warned for a long time. these are inventories, folks. i want you to see how low they are.

this is 1951. so just talk about all the things that distillates are used for and what this could imply, without home heating oil or higher costs, tracy. this is scary stuff, isn't it? >> absolutely. we've had this problem. i've been talking about this problem, this problem started in summer of 2021 but it really came to a head this spring and i've been warning about it. when we talk about distillates, we're generally talking about diesel what we're really concerned about right now, we have a shortage mere. charles: right. >> diesel is literally the lifeblood of the economy. diesel moves approximately 70% of the nation's trucking tonnage, freight tonnage, powers 75% of all farm equipment. 90% of farm products, pumps about 20% of agriculture irrigation water. that is not to mention all the heavy equipment industries such

as construction and the military that rely on heavy amounts of diesel. so really this is, this is a big problem. charles: yeah. i mean, so we're talking about higher food prices probably. you know higher prices for anything that is hauled around by trucks. i mean, you know, it is just, it is -- >> construction, housing everything. charles: it is nuts, it is really nuts and all of it ostensibly for the green utopia, right now to try to win an election, midterm election. i think they're rolling the dice. too selfish honestly to be frank with you. tracy, i wish we had more time. i truly appreciate your expert tease today at the top of the show. >> thank you. charles: coming up we have good news from the irs. that's right, your tax bracket will shift. you might catch a break. tell you more at 2:25. investing amid all the volatility. we have the two of the very best in studio. ali mccartney, phil blancato. you have to navigate through

this, no better insight than those two. financial sector, really good earnings, is this the place you want to be. we'll go to chart school with chris rune after this. ♪.

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charles: all right, folks a lot of trying to figure things out here. we'll utes earnings to come bind them with the charts. starting with financials because the end of last year the financials started doing pretty good and this year they were supposed to be the trade, right? you remember beginning of year "finergy," finance, energy, one side kept that commitment, the other side not yet, not yet. maybe it is going to break out. i want to bring in the head of technical analysis of strategas, chris rune. spyders against the s&p. >> sure. charles: financials are coming on. we came out the gate pretty good this year and early on in the year we kind of hit you know, a resistance point or whatever and we've been bumming along but are we looking thinking about the earnings, guidance, reaction to the earnings, could we be

breaking out with the financials? >> i think this is really important when we put this in context of the broader market we largely spent the last six weeks on the s&p between 3500 and 3800. what we have to do as analysts look to clues what some of the next leadership might be. charles: right. >> i've been intrigued despite a devastating bear market financials have not led you lower. that doesn't mean they have been gait but they have not led you lower. that is important distinction from 2007 and 2008 where they led you down. that hasn't been the case here. charles: one group you consider? into i think it's a candidate. i think financials and industrials are candidates for leadership on the other side of this mess. charles: the other part of that debate if you will, technology, xlk, will lose leadership role that it has had. >> sure. charles: i don't know if this is head and shoulders formation because it is such a long-term chart but we can certainly see down here, this is a key support area. it is breaking down versus the overall market. is there a chance it could regain that leadership or should

people really start to look to make a major change in their portfolio with less exposure to technology? >> i think it is the latter. what we always say let the market give us clues. what do you notice about the last couple weeks? we had big up days, we've had big down days. what hasn't worked regardless of the direction of the index? tech is not leadership. semis are not leadership. we called it be careful with the top of the market. all the big weights whether google, apple, tesla, amazon, microsoft, i think the risk to this market is still from the top and that is a lot of tech. charles: by the way to that point this is the semiconductor index. it broke a key support point and fallen completely apart. by the way, this is intriguing. you kind of mentioned it, because a lot of people conflate some of these, whether it is communications services or technology. netflix is in communications services. meta is in communications services. they are leading the market today but we can see it has been an utter disaster. don't try to go fishing, trying to bottom fish in these waters?

>> what our experience with charts like this i think you're right, it is an utter disaster, a collapse in the relative performance of the sector. what tends to follow this even with the low in purgatory, apathy, you frustrate the longs and the shorts. i think that is in the cards for that sector. charles: old dante's inferno. lockheed martin had a great earnings report. got an upgrade from someone this morning defensive, is this where we need to be where we know -- this is a great looking chart. you would have to be a chartist to see that. looks like at some point real soon it could break another breakout. >> you don't need me to tell you that. what is the message here, right? when we're looking for in this terrible bear market when we're looking for leadership you have seek out pictures that look like this. defense contractors in general send a pretty good message. we can talk about what the implications of that are. semis breaking down, defense contractors breaking out. we can extrapolate that what may mean but the bigger story,

lockheed, northrop, raytheon, are good charts. charles: geopolitical implications? >> absolutely. charles: chris wish we had more time. loaf your work. appreciate it. folks coming up earnings, profit margins we knew they would come down but are they combing down as much as wall street said they would. if not what does that mean? the housing crisis, it gets worse, folks. the american dream put on hold but will it ever come back? douglas holtz-eakin is here to break it all down. ♪. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.

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more than double the past year. gerri willis in the newsroom with more. reporter: charles, amazing just below 7.25. homebuyers cannot catch a break. battling mortgage rates, people looking to buy the "american dream home" are facing a brand new foe banks are making it harder to qualify for a loan, get the money. according to the mortgage bankers association, mortgage credit availability at its lowest level since march 2013 and falling for the 7th consecutive month in september. that is down 5.4% from august. mortgage experts saying bankers are trying to prevent people from stretching too much to buy a property when the economy is slowing and incomes delining. as a result mortgage demand is falling off as you can see here, down 38% from the same week a year ago a 25-year low. now after a lengthy housing boom, lenders are tightening the screws to protect their own bottom lines in case of recession pummels the job market, ruins credit scores and

makes it impossible for many folks to repay loans. look, the situation is so dire that freddie mac is launching a new program this week to help qualify more people by allowing lenders to consider get this, consumer monthly cash flow. not just credit scores and loan payment histories, in deciding who gets mortgage money but the big question is what homes will be available to buy. homebuilder sentiment is down for the 10th month in a row, with bankers funding only folks with the highest credit scores, housing is set for more pain. despite all this, the market setting up for even all recovery as prices decline and recession, though painful would probably bring down those mortgage rates. the fate of housing is critically important to americans across the board. to learn more join fox business this evening for two big hits, "mansion global," and "american dream home." charles? charles: thank you so much. but we love those shows though. that will get us through for

sure. folks when it comes to wrecking things the housing market, that is low-hanging fruit for the federal reserve. now sadly they won't be satisfied with just crushing the american dream of homeownership. joining me now american action forum president douglas holtz-eakin. housing starts down more than consensus. i read inventories are up 26%. certainly we know that the fed wants to break things and level of destruction will be tough but is there any measuring stick to how far this could go? >> charles, i think it will be a really tough stretch over next 18 months, two years, no question. normally federal reserve policy works through the housing market to a great extent. raise rates, mortgages less attractive, build fewer homes. when you build fewer homes, you don't put refrigerators, furnaces all the big durables in there, that helps slow the economy. this fed will have a really big impact. they went pushing $30 billion a month buying mbs, pushing it

into the mortgage finance. now they're taking 35 billion a month out. that is about 3/4 of a trillion dollars less mortgage capital out there. the reporter gerri willis gave tells you exactly what happens. the banks ration that more carefully, people can't get it t will be a really tough shred for the housing market. i don't see a way out of that. charles: couple hours ago they had a bond auction for the 20 year bond. 30,000,000,010 he -- 30 billions tendered. yield was huge, 3 billion was dealers. 16%. is there appetite for bonds. i wonder in general who buys them? if federal reserve is selling, china, japan, is selling. who buys our bops? how do we fund the government? >> we fund it a much more expensive way. that is one thing we already see.

higher interest rates add a trillion dollars every year to the federal budget deficit. a future congress will have to tighten the belt even more than they thought with such large borrowing requirements. we benefited from being a safe haven in a world of uncertainty. we've got a war in ukraine, a really, really tough economic outlook for western europe. china uncertain when they come out of the recession. they're almost certainly in it at the moment. with those kinds of uncertainties we'll benefit somewhat from international flight to safety but we can't rely on that. the key not to borrow so much. you don't have to worry about these problems. charles: right now we're worried. let me ask you, i don't know if it is a hypothetical question, maybe it's not, everyone who owns bonds, it is the worst year they ever had. i am not laughing at that. i have a tickle in my throat. the federal reserve owns bonds. they are the biggest bondholder in the world. they must be having a bad year.

if you use traditional accounting, fasb accounting. the federal reserve would be insolvent. i don't know what magical accounting they do but isn't that something we can worry about? >> the beautiful thing about the federal reserve they can print none any, they print money pay people off. when they making money hand it over to the treasury. one of the ways they solve the problem say to the treasury we don't have any contribution this year. you will have to rely on tax revenue. in general they are going to have to you know, really do a good job getting inflation under control so we can really get back to steady, high employment, rapid growth because it is in their interest as well. that is a good thing. >> got 30 seconds. you brought up tax revenue. i do think this is good news. i'm reading irs will adjust tax brackets. 37% goes up almost 100 grand. that feels like pretty good news to me? >> one of the greatest

accomplishment of reagan revolution, index income tax to inflation. you should not pay more taxes because of inflation. this prevents that. charles: good stuff. what a great day to have you, my man. thank you so much. appreciate it. >> thank you. charles: it has been a wild session today. it has been a wild year and it is tough. the volatility is hurting more than anything else. we'll tell you how we keep navigating through that. we have two of the best. also the biggest cliche during these earnings calls, these guys have a way of pasting themselves on the back. what do you think, what do you think the earnings calls should be saying? tweet me @cvpayne. i can't wait to hear your best guess. ♪. meet three sisters. the drummer, the dribbler, and the day-dreamer... the dribbler's getting hands-on practice with her chase first banking debit card...

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♪. charles: folks, earnings season picking up really nicely.

in addition to typical cliches that we hear in these earnings calls over the years, going forward, at this point, impacted negatively, vast majority, we're now listening very intently for new ones, inflation, recession, pricing power and of course overall guidance. joining me to help us understand it all, ubs private wealth management managing director alli mccartney. advicer group chief market strategist phil blancato. a lot of big names posting good earnings. netflix obviously stands out. united airlines, abbott, travelers. it is an assortment. so it is being overshadowed though. somewhat, alli pretty impressive everyone last few months said the earnings season would be unmitigated disaster. >> two specific things what you're seeing. you mentioned with ual, delta, et cetera, switching from consumer goods to consumer

services of the we all thought god gave us a holiday this summer. everyone wanted to get out there. that is starting to show up in the numbers. that why is you're seeing huge revenue there. what you're hearing from everybody else, we're starting to see it, trade-downs, pushing things out but still being able to maintain margins. the question is, how long does that last and how, how far are we kicking the earnings can down the road. charles: it does. i will say, that is what i'm seeing, reading also, right? that a lot of folks are now saying okay they're making adjustments. a lot of folks thought recession this year, first quarter, second quarter this year, recession will be okay. goldman says, this is your favorite one, phil, there is still 20% of excess savings out there and folks will spend that this holiday season. what we're seeing now augers well for the rest of the year. >> i would argue no recession if it is earnings recession, albeit very mild.

70% of the economy driven by cone super. gain fully employed. cash on hand, spending power. look where money is being spent, united goes from 80 cents forecast revenue to 2.25 revenue forecast into the fourth quarter next year. service sector really push higher which keeps the economy humming. stocks are a great value. by the way you've seen last five weeks in a row? inflows into the equity market every single week. six billion last week. people are taking advantage. charles: a lot of people are on wall street hate that. >> you're seeing inflows. what you've seen a lot of rallies especially the s&p around 3800 immense short-covering. then people buying on the downside. the thing about this market that i have never seen is with all of the algorithms that are out there, asset managers and individuals are not yet ready to take major stock market risk. so without the structural

support, you have the market being so volatile that it is thrown around to the upside or the downside every day. charles: right. >> so you either have to have a very thick skin, be right in the short term, be a medium, long-term holder. charles: you have three criteria. >> yeah. charles: when the coast is clear. you know, can you briefly talk about those? >> sure. we looked at the past 60 years of recessions and bear markets and of course it is easy to do this in retrospect. charles: sure. >> but there were three commonalities you see in the data. the first you saw the fed funds rate going downs not up. we're still going up. we're having some disagreement about where that is going up to. does it have a four handle or a five handle. that's number one. number two, is you have what is called excess equity premium over bonds. so people are getting compensated more than the risk-free rate and more relative to the past, that's again going the other way, largely because of interest rates. the third is you have some sort of visibility to an economic

bottom, whether that is ism manufacturing, whether that's retail sales, whether that's savings. we have none of those right now. charles: we're barreling lower. we know we're getting there [laughter] >> we are on the way but we're not there yet. charles: free fall so the bottom is coming real soon. some ways, phil, that works for the market. by the way the market often will assume these sort of things before they actually happen. isn't that when you want to in some cases be a buyer of long-term investment. >> that is the case i'm making. what i would disagree the reason why you're seeing people come into the market retail investors p-e ratios are fair price. things are finally on sale. i would argue as long as the consumer is able to hold to this, i use these words, hold me to it, it's a bit different. we don't see scenario, unemployment is stub bornely low pushing higher, in the midst of rate hikes. why? we still need bodies. number of open jobs come down, manufacturing, services. >> only problem it keeps the fed in play. what you're talking about keeps

the federal reserve in play. that seems to be the darkest cloud. >> it does. getting things cheaper. today the marks the 35th anniversary of black monday. if black monday happened today, the dow would be down 7,000 points in one day. retrospectively we have a market trades valuation that makes sense. fed can be a bit of a dark cloud. it is not permanent. fix oil. housing prices down. prices down across the board. it's a matter of time before they stop. i don't want to buy the day they stop. i want to buy six months ahead of that. to me where they are. charles: i was broker less than a year when that happened. went out, got drunk, came to the office. my whole dream was to be a broker since i was 14 years old. it is all over. i thought it was all over the moral of the story, it was just the beginning. business took off. i had a pretty good career since then. ali, phil, thank you very much. >> my pleasure. charles: coming up my takeaway how americans are adjusting spending at the grocery stores.

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charles: of course one major problem for investors even though there have been ups and downs over the last three years, including global financial crisis and of course the covid pandemic we always had the federal reserve behind us, right as sort of a backstop you always knew the federal reserve would come to the rescue. that is what changed this time around. that is what is making it very difficult. keep this in mind, talking about a circumstance, scenario that hasn't been in place 40 years. very few people have experience dealing with this. i want to bring in our next guest, in studio, wells fargo advisors, mark smith. mark, first of all, the last time i saw you were like mostly you know, staying back. you weren't bullish at all. obviously you acknowledge where the market was going. i think that was the right sentiment to have. how do you navigate something like that real time through your

clients? >> we're taking cues from the fed, charles, i think that is what is happening, every time we see numbers come out, look like we're not combating inflation like we thought. we weren't supposed to be doing it. numbers going up and not down. powell has a tricky thing to do, he has to raise rates. doesn't look like inflation is getting impacted, raising them pretty much the whole year. so until that, until we hear from the fed they will start slowing down, a lot of investors be on the sidelines. not me, what i'm asking clients to do. charles: talking about inflation, some people are quibbling about cpi report. owner equivalent rent, maybe six months, a year behind. we're getting picture of more robust housing market exists in real life. housing data today alone, rental data suggest maybe the fed is behind on that, in terms of analyzing this stuff. on top of that, you've got things like used cars. used cars still going up in the cpi report. the mannheim report shows them down, on their way to being down

20% this year. i think what i'm saying at some point soon we have a cpi report that comes in like shockingly below consensus. can something like that give this market a big spark? >> we're waiting for that news, charles. we have not seen it. lease let me know when that happens. my clients want to see it too. we haven't seen it. until the numbers dictate what we're saying we have to be prepared for continuing rising rate environment and in that scenario folks want to be on the sideline. they don't want to sit in equities while 30-year fixed mortgage rate will be eight or 9%. charles: you mentioned as you sat down, this is the most cash that you've had on the books in your career? >> yeah. in my career. most portfolio managers are dealing with private client money are pretty cautious right now given that the fed hasn't given us any indication that they will slow rates. inflation numbers are still at 40 year highs. i want to see those numbers come down before i start telling clients let's get off the sidelines with dollar-cost

averaging into some tech names, some large cap names are tried and true u.s. companies but they're down 30, 40%. charles: there is old adage in investing, buy low, sell high. >> correct. charles: at some point the cash, year from now will you look back say i had all this cash or maybe i wish i picked up some microsoft? >> listen my clients are still invested in the market. that is what is important. no one said mark, put me 100% in cash. otherwise they wouldn't be a client, right? they are still in. talking about new fresh money from bonuses. money on the sidelines sitting in your checking account. you got to wait to see what the fed is giving you indications. we said don't fight the fed for two years. don't fight them this way either. charles: easy on the way up. real quick, bonds, more people are buying bonds? more individual investors? >> because you've seen unprecedented amount of cash on the sidelines clients are calling me, saying what can i do to besides paltry money market rates. what is step outside of cash? look at the two-year treasury

yielding over 4%. hard for a client saying not to 4%, two year treasurys yielding cash. lay up decision even though you will not get rich on it. charles: that is how you have to navigate things out of your control. i appreciate it, man. giving us the straight scoop. what it is like dealing with investors real time. thanks so much, my man. >> thanks, charles. >> all right, folks, after the close we'll get earnings results from a bunch of companies, ibm, lam research but really the main focus will be on tesla which has been mired in a serious losing streak here recently. up a little bit today, near a critical must-hold support point. they need a big beat and strong guidance. joining me quote, meet kevin, quote, financial analyst, youtuber, kevin parfrat. kevin, you're known as a tesla bull. the good news is that tesla has been beating consensus for a long time. the somewhat bad news is that stock market reaction has been mixed. first just tell me what you're

expecting from the numbers. >> absolutely. so the biggest thing i'm looking at is how big is that foreign exchange adjustment going to be pause it could really tank eps? most of tesla's sales are outside of the united states, more than half so that's a problem. now if we can maintain margins that can be a off-setter which i think tesla can pull off but you know the reality here, charles? elon needs to stop negotiating peace with putin and zelenskyy and stop focusing on twitter, focus on tesla. get on the factory floor again. make sure my margins are good because my portfolio is going down. charles: you read my mind. a lot of people are excited about elon musk taking over twitter. from a public square, you're a youtuber. you understand social media better than anyone but feels like he is losing focus. do we want him on the call after the bell today? >> he is going to be on the call after the bell and you know what i really hope he says hey all of

these distractions i can handle. i deal with those while i'm on the toilet but while i'm working what i want elon to say i'm thinking about actually buying the dip on something like china. go over there consider the fact you've got a huge crisis of manufacturing. you will have a lot of available labor. build a couple more factories. they're spending money on infrastructure and stimulus like crazy. build cheap factories over there and build some more. i know we have trade tensions that could give tesla issues with biden by boy, oh, boy, buy the dip on china. charles: what about america, passed gigantic ev bill, $300 billion. the administration would prefer money going to union shops but no way in the world tesla doesn't get a piece of that action, right? >> they will get a big chunk of inflation reduction act which isn't really reducing inflation, but a big cut of ev. build more factories as well in america. go to florida, go to texas.

they would love the factories. i was running for governor in california. encourage manufacturing. california ain't going to change. florida, texas, absolutely build more factories. charles: bottom line, hold tesla, ride this out, no pun intended? >> for me, absolutely. so much so that with my new startup we'll be chasing and test la probably buying real estate where they're building their factories. charles: that make sense. kevin, good stuff. thanks very much. >> thanks for having me. charles: up next everyone paying a serious price for all the free money and world of fossil fuels which ain't helping. my takeaway on all of this is next. ♪ i'm so glad we did this. i'm so glad we did this.

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charles: so, everybody, you remember last year when inflation started to bubble up? i mean, i had guest after guest, all these economists, and they kind of played it off, higher inflation is self-correcting. people see prices go hire, they stop buying. you know, here's the thing, if it was run of the mill, typical sort of inflation, that would have been true. but let's face it, trillions and trillions and trillions of dollars came raining into this economy, and, you know, the scheme to prove that free money was the solution to all of our ills. well, it wasn't. it was fun for a while, but

we're all paying price for it now. the money is running out, the runaway inflation can't be stopped, and now there's the stark shadow of inflation. we are seeing those behavioral changes that economists told us about when the stimi checks came in and people didn't have to do that. 72% of grocery shoppers are actually buying fewer items. you get more money, you go in the store and come out with fewer eggs. that is a gut punch. 65% of people are are using more coupons. at this stage of the game, it'll have a minimal impact on inflation, particularly as long as there's a war on fossil fuels. so the misery won't get better with this self-correcting action, but here's the thing, it is what it is, and you've got to gut your way through it. but i hope you remember this when you have chance to decide if we want to be a free money society. liz, over to you. liz: charles, did you just see what elon tweeted? charles: no, i missed it. liz: okay. let me show you guys.

el