white house in just about five minutes. there is chaos in iowa, leading to new hampshire. will tomorrow night be a big night for bernie sanders? what does that mean for your? time to think about it seriously. how can you make money? all that and so much more on making money. ♪ charles: so after opening lower, the dow off more than 100 points, the market wand its equalibrium. it is very clear the action now is very tenuous. what do we like? the friendly fed helped us a lot so far this year. monster financial results. we'll see the s&p 500 companies. yes, folks that number is real. for three months, s&p 500 approaching $3 trillion in revenue. that is certainly helping the market. those catalysts. the big question what can propel the markets next? here to discuss, gibbs wealth management cio and president, clear advisors senior managing director jim awad. we finished with the earnings picture. earnings came in much better than anticipated from january 1 to where we are right now. one thing we never talk about, erin, is the numbers themselves. people with the 324 reporting, close to 3 trillion in revenue. almost 3 billion in profits. that is how you justify the market being higher, isn't it? >> we're focusing on growth. we're looking, are you making more money? if you focus on just the dollar terms hard to see where you are compared to last year i'm on are you making 3% more than last year? so far we have been. so far the numbers are better. >> honestly the revisions upward, the beats have been pretty much in line with what we've been seeing for the past four quarters we had expectations of negative 2%. we're 4% higher than originally -- that is well within a normal pattern of beats. companies are expected to beat their expectations. >> you're saying the whole thing is a farce? [laughter] >> i really see the markets in this push and pull right now worried what is happening in the world. no alternative where i put my money. that is what is propping up -- charles: it helps, jim. if you look at earnings concensus for the next fourth quarters they bo higher higher. fourth quarter you're talking 12, 15%. that that will propel stocks. you can't do more in valuation at 19 times earnings. pes will not go a lot higher. it has to be growth in the economy, growth in earnings. which companies and the economy are predisposed to do. we have to make sure that the whole china virus thing doesn't reduce worldwide growth enough that those earnings become suspect. the key to that is getting factories in china back to work so it is only a one quarter hit. that the disruptions don't bleed into the second quarter. charles: let's talk about that. i think many people, when you talk to folks that are casual market observers, surprised to know we hit all-time high last thursday. nasdaq hit a all-time high today. goldman came out with 50 stocks people should look at to buy on dips because of the coronavirus. baird said buy canadian goose. the company warned because of coronavirus the sales will be down. what the wall street firms are suggesting this, will be short-lived, whether one quarter event, two quarter event. action of some stocks are creating a buying opportunity, erin? >> certainly potentially. i think some of your high-end luxury brands have really gotten hit. like tiffany's for example. canadian goose. so some of these companies. all of the material companies, we're still in the downtrend. still too early to make the call. those are something that could pop up. >> you will get pend-up demand. the virus will end. cases will stop growing you could have a lot of demand that couldn't be met, presses and deferred and that will give a kick to the economy. >> that is the question then. is it now or three month? charles: you don't want to be too cute to wait too long. the stocks will move before the situation is cured. people should know the stocks will move long before we see the coronavirus -- >> always paid to normalize through the black swans. you may be a little early or suffer a bit, usually the worldcarerys on. this will end. >> the question how fast will the chinese act? charles: erin, jim, thanks for stopping the show. president trump presented his budget today. it includes $740 billion more in twins spending. trillion dollars in infrastructure. white house says under the plan, total deficits shrink by more than $4 trillion but take 15 years to balance the budget. we want to hear from the administration, acting omb directors russ vogt. thanks for joining us. >> thanks for having me. charles: you said more guns, less butter. we're taking away medicare, going after third rail politics. you heard it all, what is your reaction. >> this is a historic deficit reduction university to balance the budget in 15 years. 4.$6 trillion in deficit reduction. what you're hearing by the president's adversaries on the hill is totally false this allows medicare to grow. there are no cuts to medicare. there are no cuts to medicaid. medicare and social security is totally protected as this president made clear time and time again. charles: some would say though at some point they have to be that the growth of them have to be more than slowed down if we are to get out of the deficit hole. it would seem like a adult conversation. perhaps not a good political conversation s this something the administration is trying to warm up to? >> there are common sense reforms, good government reforms had this budget, we hope they have bipartisan consensus. let me give you an example. $135 billion we can save as a result of lowering prescription drug prices for seniors. taxpayers would benefit and seniors of course would benefit. that is something speaker pelosi says the democrats support. we've provided something in this budget to reflect that we hope they come our way and put a bill that the president can support on his desk. charles: the, defense part, president trump is, he ran for president saying that he would shore up our defense, which i think almost everyone acknowledged the espirit de corps was down. operational capabilities was low. our triad system, nuclear detent is really dilapidated. i was in norad and minot. i worked worked with nuclear mis and bombers. i know first-hand how important it is. i'm not sure the public knows. how will you articulate the to the public, that the other side says you're warmongering and we don't need to fix these things? >> i don't think anybody can accuse this president of warmongering. he had commit reducing commitments overseas and getting out of endless wars. this president believes we need a strong national defense. this provides another historic level of defense spending. $741 billion building off of the three previous years that were all north of $700 billion. you spoke specifically to the need to continue to modernize our nuclear stockpile. there is a 20% increase for the nnsa, which is all these stockpiles are modernized under the department of energy. so really big, important increase in that area. charles: china certainly complicating the picture. before it was always about america and russia working together. now with china becoming a nuclear powerhouse as well, it is complicated. we better show some strength. where are the cuts coming from though? >> there is 5% reduction to non-defense discretionary spending. this will be in many different areas although there will be some increases with regard to nasa. there are some increases to -- charles: give me an example of a non-defense discretionary area. >> 21% cut to foreign aid. area we believe it is time to get out of funding the bob dylan statue in mozambique or professional cricket league in afghanistan or nasa space camp in pakistan this is examples of waste, fraud and abuse we believe easily something we move away from being able to fund what we need to fund. charles: ultimately, how do you think the ultimate compromise might look, understanding you guys, you have gone through this process a few times now, understanding the acrimony on capitol hill right now? >> look, they have ignored three budgets where the president put forward spending reductions. we're not thinking that this will be anything new other than we're hoping that congress comes along and works with us on things like infrastructure and drug pricing but it is very likely we'll have a national election in which the democrats will side away from the american people, that balances their, balances their budgets every single month. that is the side that this president is siding with, when he puts forward a proposal to balance the budget in 15 years with historic levels of deficit reduction. charles: russ, thank you very much. we always appreciate you coming on. you've been very thorough. audience reappreciate its. >> thanks, charles. charles: there is war on homeownership. how liberal policies are trying to upend a cornerstone of the american dream. speaking of the american dream, aoc is doubling down on her comments that it is impossible to pull yourself up by the bootstraps? why is she dismissing american success stories like her own. golden investment opportunities flash before our eyes every single day but we ignore them. you don't want to miss this one. i will teach you how to see them. i will bring one to your sight. 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[ fast-paced drumming ] and my side super soft? yes. with the sleep number 360 smart bed, on sale now, you can both adjust your comfort with your sleep number setting. can it help me fall asleep faster? yes, by gently warming your feet. but can it help keep me asleep? absolutely, it intelligently senses your movements and automatically adjusts to keep you both comfortable. so, you can really promise better sleep? not promise. prove. and now, during the ultimate sleep number event, save 50% on the sleep number 360 limited edition smart bed. plus 0% interest for 24 months on all smart beds. only for a limited time. charles: you know the house with the white picket fence in the suburbs? always been the ultimate american dream. i'm talking for generations. well, now the single-family house is under attack in the united states. there are growing calls to change single family zoning codes to allow townhouses and even apartment buildings. cities are watching minneapolis. they have an aggressive plans to allow duplexes,try plexes in single family neighborhoods that will triple capacity in those neighborhoods. i believe the war on housing with "leave it to beaver" houses with white picket fences are racist that is what people believe. kings college, professor of finance, minnesota native, brian brenberg. >> good to see you. charles: i've been covering this a long time. there was a cover story in the the economist, two weeks ago. we have to get brian. you understand economics an politics and understand the benefits of growing up in a suburban neighborhood. >> i grew outside that ring. a nall one, it was modest. it matters so much. the homes give you a sense of independence. when you have a moment you're not deeply connected to the federal government, the state government. you're connected to your local community. this is where, sort of the cradle of civic engagement happens. this is sort of the place where you learn how to invest long term, cultivate an asset to pay off over the long term for your family. but i look at these stories, i look at the battle against single family homes. what i really see, people who want to erode that independence. they want more people in the city. they want more people dependent on the levers of state and city government. they don't want people out there with that buffer zone against government which allows families to flourish. charles: i think it is transparent that's the case without a doubt and we've seen the attack in the last year on the single-family home. we have seen the racist angle by the way leading to legislation in a lot of different places. listen, no one will deny things that happened in the past with respect to coded zoning laws and things like that but for me, brian, where my mom grew up in her small town in alabama, blacks were not allowed on a certain side of town. what did i do? i bought the mayor's house. unless you were black and servant where you grew up, that was her house. i bought it for you. that is a better story than building apartment house. >> that is upward mobility story, charles. charles: exactly! >> i want to own a home. i want to have my own existence. i don't want to be dependent. don't want to be in a land order culture. i want to be master of my space, raise my family. homes allow people to have more kids, bigger families. that is one reason why the hard environmental left made single family homes. it is a view somehow that kids are bad for the environment f you don't have them in a home, with big cities. it is very hard to raise kids in the city. homes make that much easier. charles: also friendship,s right? many people don't realize you have a special friend in this building you guys grew up together with. >> i grew up across the street from pete hegseth. people see him on the show all the time. we go back to this small town america environment, i know his parents. he knows mind. we sat around kitchen table together. played basketball in the driveway. that is where community formation happens. that is hard for people stacked in the middle of apartments in the city, no homeownership and nothing to cultivate. charles: i agree 1000%. i'm so concerned, these things, the folks behind them, it doesn't happen overnight. they plot these things. then they get momentum. then they get stories planted. they then get legislation. i'm concerned. part of americans independence, the further out we go from cities the more we are to the core ethos of america, sort of independent thinking. >> property is such a buffer against the encroachment of the state. if you want to destroy civic culture, the surest way to do it, destroy property. make people dependent on you. i'm glad you're bringing light to it. we don't talk about it. these movements pop up in little pockets here and there and the radar. before you know it, you can't buy a home, it is too expensive for you. you are locked out of it. my only choice is to rent. we have a rental culture. charles: brian, you're fantastic. thank you very much. >> great to be here. charles: within 24 hours we're up in new hampshire. here is the irony. really some are saying we don't have a clear winner in iowa. attempts to unify the democratic party at that debate really seemed like it came apart particularly when it came to race. david webb, rick unger will hash all these things out. what if bernie sanders wins the new hampshire primary, will the markets take him seriously? 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[what happens to your portfolio if the market starts to take him seriously? remember when elizabeth warren was rising in the polls it did hurt the stock market. joining me to discuss, bahnsen group cio, david bahnsen. also an author. elizabeth warren and her presidency would destroy the american middle class and the american crime. you should have had elizabeth warren and bernie sanders. >> bernie sanders. yes. i had a few people suggest that. a lot of policies that i walked through in the book of course could very well be transposed under bernie but at the time i wrote it as you know -- charles: she was a rocket ship. she destroyed herself i think. she could have been more honest about her plans and nothing would have happened. >> authenticity still matters to a lot of voters. that is where bernie sanders voting bloc is for as crazy as a lot of his policies are, people don't doubt his own authenticity and consistency. she doesn't have that going for her. charles: as he says he wrote the damn bill. he went on the honeymoon to moscow, not elizabeth warren. >> yeah. charles: talk about the threats. i'm thinking if bernie sanders does win big tomorrow night, the market won't get hammered per se. i think it become as darker cloud, something we have to start considering. >> forgive me for disagreeing with you. i want to explain why i actually disagree. i think the market, for good or for bad, for right or for wrong, believes bernie has a lesser chance of winning against trump than some of the other candidates. to the degree something is happening might be advancing bernie's likelihood of capturing the nomination in theory the market ought to be more encouraged that it enhances president trump es odds of re-election. charles: to your point that is what happened after the eye would you. >> it is. charles: the iowa chaos markets thought president trump had a better chance of being ere-elected and markets took off the next day. >> market will not have any way to price what is really happening until we get closer to the election. february, march, it is way too early. there can be some volatility that gets enhanced around it. in a lot of ways, like you enhance tail risk. meaning low probability but high-risk action. bernie becoming president is a perfect example of that. but you lower the chances president trump losing. charles: what is the risk though, when you see elizabeth warren's policies or bernie sanders would destroy the middle class and the american dream, how? >> the book close goes into the policy aspects we're used to talking about on your show. the cost of things, huge social programs, migration towards socialism. what i really try to do more in the book sun pack how it undermines the whole idea of the aspirational society. fundamentally my biggest problem with sanders and warren is cultural and it is morale. i think it takes away the american spirit. she is telling people they can't get ahead. it is not their fault. they're the victim of some other entity. it is completely untrue. that is basically soft marxism. that is mostly undermining the middle class. we'll get through bad policies and taxes here and there. that is the stuff that stays with us generationally. charles: lack of accountability? >> that's right. the notion it is always someone else's fault. charles: david, great stuff. your books have been fantastic. glad you could make it through. >> thank you. charles: fox business has complete coverage of the new hampshire primary. continuing today on "after the bell," connell mcshane is live in the granite state. trish regan will be live for trump's rally at