tv Making Money With Charles Payne FOX Business December 8, 2022 2:00pm-3:00pm EST
u.s. gold corp is advancing its environmentally friendly gold and copper mining project and creating american jobs in mining friendly wyoming. with a proven management team and board including former secretary of interior ryan zinke, a tight share structure, and a solid cash balance, u.s. gold's portfolio of world-class assets are creating american growth and homegrown strategic metals as the us moves towards an electrified future. u.s. gold corp. newtown here is charles payne. hey, charles. charles: thank you very much my friend good afternoon i'm charles payne this is "making money" and breaking right now a
reminder some stocks actually do go higher look at the green on the screen a lot of people positioning for big time inflation data out tomorrow and it could actually change the thinking of jay powell and this obsession he's now got about being a tough guy. but also, there are reminders out there, folks that the game is rigged. carvana's collapsing and ftx founder sam bankman-fried now reportedly under federal investigation for market manipulation. today we're going to interrogate the entire system because for the system, it's business as usual. and how to read the economic tea leave, we have daniel de martino david rosenberg will take on that and why the consumer is on borrowed time and my takeaway on the sec considering new rules to supposedly even out the playing field i think we'll see a cop out and i'd love to hear your thoughts and i'll share some tweet me at cvpayne.
all that and so much more on " making money." charles: so most of you know my biggest professional goal is to get regular folks to buy stocks. to be involved in the stock market in an effort to really change the trajectory of their lives and i know i say this knowing that the stock market is rigged in many ways and the insiders are positioned to make billions and billions of dollars in their protected buy, bought, and paid for regulators, financial media, lawmakers who always look the other way. occasionally they sound tough but they never do anything and that's why this ftx sam bankman-fried is the perfect opportunity to shine light on the system not duped, folks. this has been business as usual. and the reason of course is money and power. at the center of all of this is the flawed initial public offer ing system that allows the elites to invest in companies over a long period of time, and during that process,
the products and services of these companies start to become household names and also this period sees the valuation surge and to unfathomable levels at which point these companies are then hoisted upon and eager public, you've been hearing about these companies for a couple of years you want a bite of the apple at much higher levels. one example we'll go today, uber so, here is how it works. travis colanock and garrett camp put in the first round called seed money, 2009, 200,000 bucks. then there was another seed round. then what they call the angel round, and then a series a andb andc. by the way jay-z got some of the series c, props to him and then there's a private equity round and then a corporate round and a venture round. all told, $24 billion raised privately, privately. you weren't invited to this , over 30 rounds 116 investors. then they said it's time to go public, let's hoist this on the
public, 2009. a plan was hatched. they wanted to put the valuation initially this is crazy, $120 billion, but even for wall street that was too egregious right and by the way, they were blushing like are you serious we're in the wrong bracket so the ipo ended up going public at $75 billion that's about $45 a share right here. it immediately opens down, right and opens at 41.65. by the way this is where it closed. that was the biggest decline monetarily in ipo history. you could see from there the stock was unmitigated disaster went down more than 50% , about 50%. had a big move here in the 2020 tech all chi is fantastic. not based on fundamentals and then of course since then, and its been down precipitously and we're almost back here. yesterday i got to tell you there was a great piece. james grant, really if you don't read his work, check it out. this is what he wrote about uber rideshare fares are up 92% from
2018 to mid-2021. cumulative operating income is a negative $30 billion. how does an app lose $30 billion so of course, the shares are down 49%, same time the stock market is up 45%, but guess what how much is it worth? $54 billion. they've lost $30 billion. 47 analysts cover the stock over the next year. they see a 75% rally. folks, you can not make this up. you can not make this up. no matter what. so, this brings us to the whole thing, right? despite disasters like uber and so many others, the ipo racket has been incredible. it went into over drive in 2021. 1,033 deals, they raised $286 billion. this is how much they raised from the public. the average move that year is about down 8%. now here is the way it worked. the pump, this is where the
mediacoms in, the pump, is laying it on thick, sometimes there's a countdown clock, xyz has gone public you got to get in there so the first day on average they pop 31%. after that it's a free fall down 22%. the question is, can't anything be done about this , right? or it's just the public going to continue to be a dumping ground for the wealthiest people on the planet? joining me now to discuss, slatestone wealth chief market strategist kenny polcari. kenny, can anything be done to make this more equitable to retail investors instead of making them the dues all the time? >> listen, charles. it's a very interesting conversation we have. the old system is exactly as you described it right? all the insiders get in and they keep elevating the valuation and then they throw it on the public , they create all this excitement. look you saw what happened in facebook they created all that excitement and it became public and it crashed right after it became public if you remember
that and since it changed on that initial public offering it was crazy. i've got to tell you an area of the market where you start to democratize it more is in that crowd funding space which is now open to investors that can get in on the really early rounds, and participate on all the stuff that the guys in the big ipo's participate in right? you could do it on a small level it's not the same but it's going to start to democratize the ability for individual investors to get in, but the old ipo game, the way you describe it, i think it's difficult for that to change because it's structured that way, its been structured that way. a lot of the retail public buys into it. they like it that way whether they like it or not. charles: i don't know that the investing public likes being down in their portfolio and some hot stock they bought that's down 50%. who likes that, kenny and by the way, nobody likes, it wasn't always like this. you're going to run out of letters soon. there's a
series a,b,c,d,e,f,g,h, pretty soon they are using double letters, series bb, soar series triple g, before they take two or three bites of the apple and then invite the public in and everybody went along for the ride. that's over now. >> right. that's over and so what investors have to do, they got to be much more diligent and be a little bit more patient. they can't get caught up in all the drama like that the media and not the media, that the investment banks create on these particular ipo's right and the ones you talk about, uber, carvana all names that became household names and everyone wanted in just because it became a household name which is why by the way you and i had these conversations. those are not names i'm in. i tend to step back. i tend to be much more consistent and call it boring but i tend to play in the names i feel most comfortable in. charles: one thing i tell people is wait at least a year. here is one other thing. 47 analysts see this stock going up 75% talking about uber over the next 12 months.
where is the objectivity? >> there isn't. they are probably all involved at some point in funding and representing them and whatever it is so that they've all got skin in the game in the sense that they have got to talk their own book, right? so it's amazing to me that all of them see the stock rallying so significantly. now look, if the economy turns around theres a lot of names that are -- charles: yeah, yeah, kenny i don't want to talk about opportunities right now. i'm talking about the system let's stick with the system because i only have a minute to go and i want to bring up one other example, please. carvana, of course in the news this week. a lot of talk about bankruptcy. this is a stock that went from $1 billion in valuation to $60 billion in valuation, $350 a share. here is the problem with a lot of folks. the insiders, the insiders sold $4 billion worth of stock, later on they said to employees you know what? we'll give you an opportunity. they gave them some kind of stock options but they invest over two years which essentially means they're worthless. if you're an investor, what are the red flags for something like
this? >> i think what you have to watch is listen, you have to do your due diligence and have to see what their quarterly, what they are saying every quarter, where they are making money los ing money, whose being compensated whose not being compensated, whose getting out and selling their insider stock because a lot of that kind of details what the thinking is on the inside, right? a lot of that, a lot of investors aren't paying attention to but that's the stuff they need to pay attention to in order to understand what's happening behind the scenes. charles: got to do a lot of work and really really you got to phase out the noise, folks. you have to do due diligence. that's why we do this show and that's why i bring up people like kenny. thanks, i appreciate it. also let's bring in clear state advisor senior managing director jim awol. jim you've been around a long time and before we get to where you think the markets are i'm not sure how much of our conversation you heard with me and kenny. just your thoughts, i think wall street has gone to pure greed, they have added in this
marketing component so as these companies are private raising money, they are also marketing themselves right? so everyone gets to hear about lyft. everyone gets to hear about uber we all know it and then we get excited. we might use the product so when it goes public we don't know that it's extremely overvalued and we may never make a nickel on it, and it works for silicon valley. it works for wall street, but is it really good? is this a real system that's truly honestly the ethos of what we talk about with capital ism and free-trade? >> yeah, well it's a distortion of the system driven by greed, and in this case, it was super- charged by free money, low interest rates for so long, and there was no price to pay for speculation, but the real message here, is that the capitalist system, buyer beware. you can't -- the government isn't going to protect you. they just demand full disclosure wall street will sell you what they can sell you because that's how their bonuses are paid so i'd say do your research, stay
away from the crowd, invest with your mind, know the with emotion and you're more likely to see opportunity in something that's not being talked about in the press and promoted by wall street than something that is. charles: right i brought backup the james grant piece, because again, 47 analysts with an average rally of 75% in uber over the next year maybe it happens maybe it doesn't but it's frustrating because i doubt it's up 75% in the next year, but you on the other hand in general saying that growth, because growth is a big question mark now, that it's not dead for companies with enduring profits and i think that's the key here. that fits perfectly with this conversation, right? you got to go for these companies that are making money sometimes. >> yeah, i mean, you're in an environment where rates are going up for the foreseeable future at least for the next several months. we know it's going to effect the economy negatively with a lag incrementally. we don't know how bad it is, so the smartest guys in the world,
jamie dimon and david solemon, brian moynihan were all this week talking about the fact it could be a tough year next year, so you want to invest in companies that control their own destiny that have enduring business franchises, that are making money in the here and now , that have methodologies around their business model and their balance sheet and those stocks are getting thrown out with the unprofitable technology stocks and growth stocks that never should have gone up in the first place that are going down and are not going to come back. it's no different than the dot c om bubble. 90% of the stocks never came back but the 10% that did made you a lot of money and so there were a lot of enduring franchises that are on sale today because of what went on with the unprofitable companies and the spacs and all of the junk going down and it's dragging these down psychologically with similar negative psychology. they are over doing it. there is some real values there. charles: yeah and this is of course the kind of markets where you can make a fortune by zero
ing in on those and really again, you gotta filter out the noise, particularly these analysts and sometime the cheerleaders. jim thank you so much i appreciate your wisdom as always >> pleasure. charles: coming up folks, yield curve inversion, it's stiffening at such a rate. its got a lot of people worried but what does it mean for inflation? what does it mean for recession? daniel danielle is here to discuss and also discussing the recent jobs report and also, consumers living on borrowed time. that's next.
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charles: all right, so this week , the census bureau, i think it was yesterday, announced changes to the establishment survey in the jobs report. remember there are two surveys, so starting next month, approximately 10% of the employment will be re classified. now that sounds innocuous maybe, maybe, right? but it does bring up a more important point. there is so many adjustments to
the jobs data, and so many other data points from the government that i don't think is innocuous. in fact, my next guest has an interesting take on the last jobs report. i want to bring in rosenberg research & associates founder and president david rosenberg and david first of all i've been a fan for a long time. you're like the brilliant comungun. your work is amazing, you're a straight shooter, so i saw this what you posted on friday, and you know, you're saying adding to the insanity of this report, the birth-death model added 110,000 jobs and when all was said and done it should have been a negative 227,000 jobs. now, i really believe that everyone in the financial media had a duty to mention this tweet let's talk about that for a moment, because the fact is, every time i hear someone talk about the jobs report it's still accolades and sunshine. let's start with this whole birth-death model. what does it mean for the average person out there
and how did you arrive at a negative 227,000? >> well, the birth-death model is the having a baby. it's about how the monthly payroll numbers are constructed, so there's the survey of the businesses, but then there's an adjustment every month based on an estimate of net new business creation through the year. so what i find egregious is that we know from the data that that new business creation is actually running at 0% year-over-year. there is no net business creation taking place, and yet over the past several months, its been a key feature in terms of that additional skew to the actual survey, so that's one distortion taking place in the payroll report. there's others and as you said before, there's more than one survey, and the companion
household survey which is not a survey of companies, but a survey of individuals, has actually shown in the past two months that employment has actually contracted, which i think is more or less in line with a lot of the other economic indicators we're seeing right now. the payroll report is really the odd man out. charles: it's i think it's also probably in line with the way most people feel and see. it's anecdotally, certainly it feels more appropriate. i was reading your report this morning, and where you see a shift now and the focus overall focus and it might explain what's going on with this market about the economy and, you know, getting a little bit weaker here, different signs about being worried about a deep recession. my question to you is do you think the fed will pick-up the vibes that the market is sending out? >> well, i say that the fed is filled with extremely smart people. i'm sure they have bloomberg terminals, they know what's going on.
the reality is that they want the economy tweaking. they've told us that. charles: sure. >> it's part of their plan to crush inflation. what i found very interesting was that back in march, when they first started tightening policy, at the post-meeting press conference, jay powell came up and basically told us that the fed is going to turn a blind eye to developments on the supply side. once burned twice shy, people frustrated by the lack of increase in the participation rate, you know, china shutting down port cities with millions of people when there's the first hint of covid. we had the spread of omicron so they basically said look, global supply chains all this other stuff. we're not going to focus on the supply side even if it improves which it has. we're just focused on demand so basically, look. the bottom line here about the fed. they are going to change their forecast again next week at the meeting. they told us though in september that they want the unemployment rate up to 4.4% next year.
they've given to us on a silver platter for the people to think it's going to be a soft landing for a mild recession. going from 4.4% from the low of 3.5%, you never not had a recession with the unemployment rate going up nine-tenths of a percentage point so they told us that already. that could be up to about 2 million job losses. the feds already told us that's what they want so you're asking about are they paying attention to the market? they need to have financial conditions tighten to get the demand down, to get the inflation down to what they want, the stock market, the credit markets have to do what they are doing. charles: david? you're going in and out here but i catch your drift. i think for a lot of folks who are not in the markets or not intune with the fed's role and responsibility, the idea of deliberately making 2 million americans lose their job is really tough stuff to swallow. i appreciate your work and i hope you can bring it back real soon. thank you so much. all right, folks.
>> thank you. charles: coming up we got the financial influencer who promoted ftx and then, well, then you had an about-face, a strong about-face. meet kevin aka kevin is here to talk about that at 2:50 but first how to best find opportunities in this market, we've got two of the quest quincy crosby and dan suzuki right after this. ♪
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dan suzuki and last time you were on i've got to give you props. you called this the entire script and of course now the question is where do we go from here? >> yeah, well, i actually do think that the script has changed just a little bit here. if the story this year was about repricing inflation and re pricing the fed the next leg of this is repricing growth so growth is going to continue to slow from here, and that's going to, that's not great for markets overall but that has a very different impact on rates charles: when you say growth are you talking economic growth? growth stocks? i mean, what or just -- >> yeah, so we focus mostly on profits growth but obviously there's a correlation between corporate profits and the economy. if corporate profits are rolling over the economy is probably rolling over so that's kind of in the cards here. charles: let me ask you then because i think two days ago goldman came out with their forecast. a lot of people got upset for lack of not being able to use a few four letter words they
were using on wall street. 2022 earnings of $200 for the s&p, pe 19.6. next year, earnings of $228 but a lower pe ratio so essentially they are saying the market will be flat but earnings are actually going to go higher. i think there's something of an outlier there. where are you looking so if growth is an issue you must see earnings down a lot. >> yeah, i don't know about a lot. i think but i think to assume five to 10% is down is probably easy. that's pretty typical, so either way we think we'll be in a profitable recession and to be honest charles we're less focused on levels. i don't care if that number is 220 or 210 or 150 to be honest directionally is the most important. the direction is the most important thing while the direction is going down, it's not a good time to load up on stocks. when that starts to shift maybe you'll want to get more positive charles: does the market anticipate though the shift before it happens? >> yeah to some extent it will and to some extent this is probably the most anticipated
recession and profits recession ever, right? so you got to bake that in. charles: some of it is already built in. >> you would think so but if you look at the internals of the market sometimes it doesn't feel like that way. you had a big cyclical rally within the stock market, credit spreads are low, so that doesn't really point to an all-out at least not aver recession. charles: do you have any contrarian blood at all? do you think you're worried everyone is saying recession, not everyone but the majority of folks are looking for lower earnings, recession. i mean, i'm a contrarian by nature. so many folks tell me it's going to go one way i instinctively believe it's going to go the other. >> agree 100% agree. having come from that world they never get it right as a consensus. people people do but they never get it right as a consensus so you always have to ask yourself where could they be wrong. directionally i think people are right but maybe the thing where they are wrong is the timing of things. maybe it takes longer than people think. people are looking really for first quarter-second quarter collapse and then off to the
races again. charles: right i've got a feeling the recession will be further out myself. i've got less than a minute to go. how do we ride it out. how do investors ride this out? >> yeah, i think for now, the most important thing you want to do is focus on defense. that's what we're doing in the portfolio. that's the number one theme is high-quality, less economically sensitive, you know, defensive areas of the market but i think there are a couple ways to play offense here. one way to play offense is to pay lower interest rates, long term treasuries great way to take advantage of that and actually we think china the risk reward is good for the next 12 months. charles: so would that include chinese stocks then? >> chinese stocks, yeah. charles: they have been acting pretty good this week. >> i think up 40-50%. charles: i mean like names like baba are coming back pretty good. >> happy holidays. charles: you too, thanks so on tuesday released their outlook for the next year in a report focused on "finding balance" i want to bring in chief global strategist quincy crosby so
quincy, i read most of the report and it seems to underscore the sort of challenge you're dealing with stubbornly high inflation we've been dealing with and dealing with a lot of factors. you've got interest rates, the fed, and it really sounds really daunting, you know, like we have one main issue in 2022 that was a run-away inflation and now it's a whole bunch of balls we're juggling. how do you juggle that? >> well, the juggle continues until fewer balls are in the air and we see that the fed at some point slows it down, stops, and at the same time, you know, we'll probably have earnings come down, margin compression is going to be an issue for the market and then that brings down the valuations and when that happens, we think that we'll start to see if valuations come down markedly you'll start seeing investors start to come in. it won't be a traders market the way that its been for the last year, two years, but what we will see is investors saying look the
valuations are compelling, and the fed is virtually finished, and we will see growth starting to pick-up. you know, charles the market gets the news first, usually, and the market starts sniffing this out before the fed actually finishes, and we'll start to see the shift, i think, from that defensive stance, that we also are recommending to a similar cyclical stance. for example, consumer staples must give way to consumer discretionary. that should be the equities market, one of their signals to say we are getting out of this. the bear is going into deep hibernation, we're starting to look towards a bull market. it's going to take time. it's a process, but as long as you have the fed intent on keeping at it we've got to, you know, arrange a portfolio in the market we have. not the one we want. charles: right, but and again, so you kind of picked up on the conversation i had with dan with respect to the market
anticipating certain things, making the turns before you get the clear evidence from the data, which you know, of course a lot of people try to get out in front of that. it can lead to a lot of mistakes but if you ever get it right it's a huge bonanza for you. let's talk about that fed and the fed pausing. according to the report at least it seems like lpl looking for the fed to pause in the first quarter of next year. if that's the case, wouldn't that be huge for the market, the stock market? >> it be huge, but you know what? we're looking that the fed keeps downdrafting 50 basis points, maybe another 50 after this one in december, and then 25 basis points, another 25 basis points as long as they see that inflation has not been expunged. what they want to be able to do is monitor the larger economic backdrop without crushing the economy. i mean, you know, when he talked about soft and then he resurrect ed softish last week, i
was like am i hearing a replay of what he was saying? what am i missing? and nothing is impossible. nothing is impossible. we haven't had, you know, much contagion in the market when you really look at it. it's not 2008-2009 all over again and also, again, the market knows why he's doing it. it's his mandate. he wants to restore price stability even though they were late. they are going to keep at it and we've got to keep at it and have our clients protected during this process. charles: all right, protected but ready to take advantage as well. >> absolutely. charles: i think we're all hanging on that softish thing as well. quincy, thank you so much. appreciate it. >> thank you. charles: all right folks coming up, can sam bankman-fried face a congressional subpoena? we'll break that down and also be looking ahead to meet kevin. the real kevin, in studio 250. also, an aggressive fed. we just kind of talked about it but reading the tea leaves and
also this obsession, this obsession that jay powell has with paul volcker will that actually break an economy that doesn't need to be broken? danielle dimartino booth is next . ♪ everyone remembers the moment they heard, “you have cancer.” how their world stopped... ...and when they found a way to face it. for some,... ...this is where their keytruda story begins. keytruda—a breakthrough immunotherapy that may treat certain cancers.
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charles: so tomorrow we're going to get a whole lot of key data and that should cast some light on the inflation picture and maybe just maybe, influence the fed and jay powell who i think has boxed himself in with this sort of paul volcker thing and his pledge not to pause. i mean jay powell look at this , folks. this is amazing. so 2022, look at this right here this is the fed raising rates 4% now its gone higher than that just once in the past that was in 1999 but that was over a 20-
month period. this is in just four months look how aggressive this is. i think jay powell really is the kind of guy he doesn't want to go to the fed locker room and have someone call him a wimp so let's bring in will intelligence llc ceo and chief strategist danielle dimartino booth. you know, danielle, i mean, we've had this conversation before, but powell's comments at brookings i thought was a sign and i just talked about this with quincy krosby that maybe he might be willing to pause, the softish comments, so many people are saying no that's misinterpreted. where do you think jay powell is right now in this pledge never to pause? >> i think jay powell, every time he goes back to the locker room, comes back out and says hurry up, offense, and that's not something that is sustainable or that this economy can withstand for a prolonged period of time. he did say softish landing. i do understand how it was interpreted by the markets, but i think that he's diluting
himself and/or he's feeding us a line because he's determined to not be the next arthur burns. he's determined to be paul volcker. that means that so we go from 75 -50, by the way, charles, you remember that 50 used to be big. which in a world where we only had a quarter point rate hikes, and at the same time, i think he has every intention of keeping the liquidity draining from the system in the background with quantitative tightening which so few people talk about and yet, we are seeing lending really take a hit in the united states whether you're talking about public markets private markets bank lending. charles: right. great point. you know, and i don't think i'm talking about that enough and i need to because it's starting, you are starting to notice it on the fed balance sheet. in the meantime, the most telegraphed recession in history , except for morgan stanley, morgan stanley said na, first half maybe there's a 25% chance, second half maybe a 15% chance and they are saying no
recession by end of 2024 that's where they got about a 35% so morgan stanley maybe an outlier not seeing recession. where do you see the economy 2023? is the recession inevitable? >> charles i think it is. look starting points matter. you noted a tweet that i sent out earlier today that the flows matter more than the stock. may 21 is when we saw continuing claims the percentage of americans collecting unemployment insurance. we saw that bottom out on may 21 since then its risen 29%. that's a big delta. it's a big change. the highest since february and for the first time this week, we saw initial state jobless claims on the national level, charles, rise year-over-year. that's the first we've seen in the post-pandemic era. charles: i brought that tweet up by the way, because this is so important, i think. the fallacy of stock versus flow and we're not talking about
equities here, right? talk about that a little bit more, because so many times, the financial media, something will move. there will be a big move coming off a low base and they will note it's a low base, not the move itself, and a more or less dismiss it like don't even worry about it. you're saying no. worry about it. that's the nuance that we should be looking for , right? >> it certainly is. i mean if you apply that to what you spoke about right before i came on. with which the fed has tightened policy, that was coming off a really low base as well, but it was a huge move, and what we're seeing in terms of jobless claims, layoffs, i'm in indiana right now and rv plant just basically shutdown to just a few people. in mississippi a few days ago another rv plant said it was cutting, reducing headcount at three of its facilities. that's not silicon valley. layoffs are fanning out ink across broader economy and i think it's fanciful to say that
we're not already in recession. charles: all right folks watch the flow. watch the flow. danielle, always appreciate you thank you so much. >> thank you charles. charles: by the way folks speaking of which we're just a week out until my small business survival town hall, 2:00 p.m. right here on fox business. i'm going to be hearing from small business owners from a different bunch of different industries and we're here to sort of talk about their challenges how they cope. we've got people who made it in this industry. it's something you do not want to miss. coming up here on this show, my takeaway on the sec, making some proposals they say will help individual investors. i'm not buying it. tweet me @cvpayne if you are or not. also my next guest i had to apologize for promoting ftx before the collapse. he's here now to give us more details on the saga.
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bankman-fried debacle but so too are a lot of folks in the financial world because people are saying hey, maybe they should have known better. now my next guest did a sponsor ed post for ftx and he took heat for it and i think he's learned pretty valuable lessons. joining me is kevin financial analyst youtuber, kevin paffrath kevin, a couple of tweets you put out november 24, you put out a tweet saying okay, no longer accepting sponsored posts, affiliate links or promoting external products. i'll only plug products i create or control. listen a lot of people out there still haven't done mia culpa where they are saying oh, man i lost so much money, not considering what's happening to the investors and then the very next day after you did this you say today was your first full day you felt free. why did you feel free after that >> oh, gosh. the sponsor world is like a maffia. think of it like a union. there's a union boss who tells the creators we'll hold out for bigger wages so to speak and if we don't get what we want we
won't pitch but if we do you have to film that script today. it's high pressure, it's stressful, when you ask questions they pushback and it's hard as a create or. i'm not making excuses, it's terrible what happened. charles: it was good money though. bottom line to take that kind of stuff, listen, they spread it around like crazy. the kind of money i heard they wanted to offer the singer what's -- >> taylor swift $100 million for three years. charles: they sponsored stadiums , done everything, so they were spreading a lot of this money around for influence. one thing, are you going to, have you given them money back or talking about doing something about charity for the clients? >> we're working on exactly that. so we've just done our accounting for 2022. i made just under $200,000 from ftx. i lost over $433,000 in blockfi which they were supposed to bail out but we're doing something for the community because it's the right thing to do and also important that creators talk about this so we can learn from our mistakes rather than try to hide. charles: do you think this be an opportunity for the investing world, there should be for the entire invest
ing world because this doesn't happen by accident, sequoia wasn't dumb. is there some way we can get some sort of thing for justice for investors down the road so the ftx of the world are never in the pipeline again. >> we need fdicnd sipc insurance for cryptos and the limits need to be higher. we need the regulation there. charles: so let's talk about your fund. because you have a fund now. >> i do. charles: the pp fund. joining me for a little while folks doesn't have a long training but what is this pricing power all about? >> yeah the pricing power etf is all about looking for companies with high margin and the ability to keep prices high or increase margins even if prices are going down so we're looking at the chipmakers we think have bottomed out looking at tesla, solar edge, these are companies we think hard time right now but 2023 if we get that inflation reduction we're expecting, glorious times. charles: i love it although we took profits on it the third time. every time i get my subscribers in it i say we'll hold it forever and then let go man it's
a lot of money only because it's volatile. you got to add that the volatility to it. you've been at this speaking of tesla, are you happy or upset with elon musk? i can't tell from your tweets. seems like one-day you're okay, next day his attention might be diverted? >> yeah, elon is a little bit of a scheister. he makes up 20% of my pp fund and we're really excited for next year but the thing with elon what bothers me the most is he goes into an earnings call talks about how tesla is worth more than saudi aramco and apple combined and dumps $20 billion worth of shares after that so i love the guy and he has great intentions and tesla workers, great people, great company. it's going places. charles: you're here tomorrow to ring the bell. >> 4:00 p.m. close we'll do a meet-up at 5 p.m. charles: congratulations, man. you have done so much, 1.8 million youtube viewers people love you, people look up to you i'm glad you took this ftx thing like a man. you admitted you made a mistake and now you looking to do the
right thing. >> and buy the dip. charles: and buy the dip. all right thanks a lot kevin. folks, coming up, gary gensler & company considering proposals they say is going to help you. i don't think so. a little bit more of lip service but that's all. my takeaway is next. ♪ what should the future deliver? (music) progress... (music) ...innovation... (music) ...discovery? or simply stability... ...security... ...protection? you shouldn't have to choose. (music) gold. your strategic advantage. (music) visit goldhub.com.
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charles: all right, so according to the "wall street journal", next week, december 14, the sec is going to flood out some proposals to help small business traders get better prices. payment for order flow, order completion, best execution and execution quality, and i can tell you right now, i think retail investors are going to be pretty sad when all of it's laid out. there's not going to be a ban on payment for order flow like so many other nations, and i'm sure there's still going to be manipulation, the sort of not ever having to deliver the dark pools which suck up transparency like dark black holes. listen i don't have all the answers right but i really am worried and concerned. i hope gary gensler doesn't run with the line about how great this system is and how the average investors doing much better than ever because that's part of the cookbook, folks. you had a lot of comments to say yourself, including one comment if the sec ever does something undeniably beneficial for retail i suspect it's because they have
received confirmation that hell has indeed frozen over. another comment, make a fair market stop pleasing the 1%. another one, and they will say they feel as if the current system is in favor of protecting a smaller investor, years of waiting on proposed reforms is never a good sign. more of a tactic. all i can say is keep fighting the good fight folks. listen, it's not going to happen overnight. there's some extraordinarily powerful forces. one of the big problems of course is people from big business go to government and then from government back to business big and along the way they forget about who they are serving and in this case it's the individual investor. i say this as i hand it over to cheryl in for liz claman. buckling up for looks like we have a pretty intriguing last hour of trading. >> cheryl: looks like we'll actually have an up day finally for the dow which is good news charles thank you so much. markets are ticking higher final ly making a comeback after multiple days of declines but losing a little bit of steam