Transcripts For FBC Making Money With Charles Payne 20240712

FBC Making Money With Charles Payne July 12, 2024

On as wave after wave after big retailers decides to require them but one prominent retailer says no to mandating masks. This battle becomes more complicated by the day. Beverly hallberg has been a target in this war. She is here to share her thoughts. All that and so much more on making money. Finally here, right, the lazy hazy days, the summer doldrums,less volume, tighter trading ranges. There are trends and events that promise us fireworks. The rotation trade making its second attempt in as many months as value has perked up and profit taking in those monster growth names intensifies. How ironic that these names might have pulled back so quickly, they are already attractive. So buy value or dare i say buy oversold big tech names . Let me bring in Wealth Management president rebecca walzer, along with distributors vp. Coming into the session some of the biggest 2020 winners have lost a lot of ground. Tesla reversing but down a lot from the highs, intel, docu serve, amazon, adobe, these are names some i missed some i wish i was in, maybe we get a chance to get back in. Speaking of which, netflix reported after the close, mixed results but the subpar guidance hit the stock. At least ten wall street firms have hiked their share price targets. Rebecca, do we buy these hot names on dips . I think so. I think you definitely buy netflix at 488. I think that 550 is a good barometer for them right now. I mean, charles, content is key. Netflix has the content. I was looking at their budget last year, 15 billion, 17 blg 17 billion this year. Coronavirus ha coronavirus has affected. Theres no doubt that 80 of their budget goes to original programming, original content and only 20 to reruns and, you know, stuff like that. Charles right. They are going to win this game longterm with the amount of investment they put in every year. I think you can buy this while on the dip and make a shortterm profit. I think you can buy this one on the dip and hold it for a long time. I think you will be happy for a long time on this one. Charles it is not just netflix either. These names are rattled some we are showing on the screen, big winners this year that people wish they had bought. Could this be a chance now they have pulled back a little bit . I think i would wait a little bit more, charles. I remain optimistic longterm but in the case of the nasdaq and Big Technology names that you are talking about, fear is rising in the marketplace. Perhaps weve gone too far too fast and all this money from the government as well as the fed is going straight into equities market. Thats great for the shortterm, but what happens as that stimulus wears off and all of that money went into tech, and if you have a lot of big institutions right now saying that fear is rising, youre seeing them hit the sell button or at least take a pause in the markets for now. Charles heather, let me ask you about the other side of this, value having a really good week, things like the truckers are killing it, rail stocks are killing it. Is this where investors should be looking . Like i said, i think you should wait. Nasdaq has pulled back over 10 this week. I think yes, you have a buying list. You dont want to miss it. Look, we went as quick as we sold off at the end of march in two weeks, the market rallied back just as quick. You dont want to miss it if we do get more of a pullback in the marketplace here over the next week as at the end of the month, the supplemental Unemployment Insurance, that extra 600 a week for Many Americans wears off, and ppp, that Paycheck Protection Program over eight weeks really helps save a lot of jobs. Whats going to happen when they need more money . Charles it may wear off, but to your point, thats something we will talk about throughout the show, the 600 dilemma. Meanwhile, the feds got its own dilemma. Their Balance Sheet sitting at 7 trillion, only up slightly this week and it is actually lower than the peak on june 10th. It seems like maybe the struggle to hand out money, all the printed up cash, or maybe they need to find a way to nonprofit organizations, universities. Rebecca, does this mean that these facilities, maybe we have too many of them or does the fed have to do more aggressive action to get this more money into the system . To heathers point, it is so true, all of this government stimulus has gone straight into the market. I mean, its amazing. Five weeks from february 19th to march 23rd, 32 , you know, generalized correction and now were s p 500 through june is under the water 8 . Where do we get a massive correction swing backwards . It was because of the cares act, the government stimulus. That cant last indefinitely charles. We need to get businesses reopened to actually create the tax revenue that the government can collect and spend; right . This government stimulus thing cannot last indefinitely. Maybe they are trying to figure out where the better place to put their money. I think, you know, this is true, we have an overcorrection, which i was all for. Im not saying i wanted us to go into a great depression, but at some point, it cannot continue. We have to get the country back open, businesses back open, people going back out. Charles the Consumer Sentiment report this morning, came in lower than expectations. I mean, we thought it was going to pull back, but now it could potentially crumble. The head of the university, the economist there, he issued a dire warning. He said another aggressive fiscal response is urgently needed that focuses on Financial Relief for households as well as state and local governments. Without any action, another plunge in confidence and a longer recession is likely to occur. So you know, heather, i mean, im not sure if you want the additional 600 bucks or not, if you want additional stimulus or not, but hes saying if congress does not act, were going to have a worse recession than we had in march. I dont think were ready for that. Yeah. Hey, fair enough, and were all fiscal conservatives; right . I guess now is not the time to worry about debt and deficits most would argue. You have senator mcconnell if we have stimulus again, it should be targeted for americans less 40,000 a year, definitely lower income americans and not the wealthy, but the Paycheck Protection Program, over half of those loans were to Small Businesses, but maybe this time you make sure it only goes to Small Business hands. Charles all right, but the bottom line is that you think we need something because i think congress is going to fumble this ball, and if they do, it is not going to be good. Rebecca, heather, thank you very much, as usual, have a great weekend, ladies. Meanwhile attorney general william barr issuing a dire warning of his own, this is to American Companies about Chinese Communist parties and their global ambitions. The tensions between u. S. And china continue to heat up. The new cold war as it were. Speech he gave yesterday he actually asked the attorney general for the American Industries to stop pushing policies at the behest of china. He called out specifically disney and apple saying that they are quote all too willing to collaborate with the chinese government. So are these companies actually putting profits ahead of patriotism . I will bring in trend macro cio, don luskin. I thought you were the perfect guest for this, a free market sort of guy. Thank you. Charles im digging the style youve got there. Work with me here. Is this are they putting profits over patriotism . I think theres a simpler economic explanation for it, and that is, you know, think back to the basic economics concept called externalalities. Think of a steel plant thats making profits but it is making its high margins because it dumps its toxic in the nearby river. Thats not fair. Those arent legitimate profits. What they are doing is they are externalizing their costs on other people who will get poisoned when they drink the water. A company thats making money in china and in doing so enables the Chinese Communist party, the chinese army, more chinese cyberattacks or for that matter, pollution in china, which shares planet earth with us, those are not legitimate profits because youre not taking into account the externalities that earning those profits creates. All barr is saying is have your profits be ethical profits. Charles as an investor, how do you avoid these sort of names when they have these gigantic returns . Theyre omnipotent in almost every major portfolio. I dont care what they call it, new horizon, the moon, whatever they call it, these names are always in the funds. How do you deal with that, grapple with that . I think investors need to look at interconnectivity with china in a multitude of dimensions. Didnt we learn from the trade war that a company like apple setting aside whether theyre enabling the Chinese Communist party, the chinese army, if you Single Source all of your manufacturing with a single country, thats just stupid, and if that country happens to be china, thats got all these other political problems and trade war problems, thats doubly stupid. We call that being undiversified. Every company should diversify away from china to not only become a more ethical investor, but to improve the quality of your earnings by reducing the exposure to a single fragile country, china. I think investors should applaud countries diversifying away from china because they are lowering their risks. Charles donald luskin, always appreciate it, thanks, my friend. Thank you. Charles now, forget the politicians for a moment, folks. This mask fight is dividing friends, neighbors, even families. How heated has your mask debate gotten . I want to hear from you. Tweet me at cp payne. I love to hear these stories. We have some for you as well. Personal request for aoc, before pushing this new new york wealth tax and defunding the police even further. I want her to listen two songs from the sound track of my youth because trust me new york city has seen nothing yet. It could get a whole lot worse than it is, and it is already bad. I will explain after the break. 49. 50 i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Xfinity. The future of awesome. Charles so as new york city descends into a state of lawlessness that it hasnt seen in years, social justice warriors are wanting to complete their goal of up end the status quo. Aoc is pushing the state to levy a so called billionaires tax to raise 5. 5 billion that would go to mostly 800,000 undocumented immigrants, a Smaller Police force afraid to do their jobs coupled with fleeing wealthy folks and businesses would be the devastating onetwo punch we dont want to see. You know what . My friends who have lived in new york for years expressed their shock and outrage of the rise in crime and homelessness i say you havent seen nothing yet. The same is true for aoc who was born in 1989. The crime poverty, heart break, hopelessness that i saw in the 70s and the 80s are unimaginable to most new yorkers. I could spend hours sharing stories and trying to paint pictures but instead i want to invite everyone including by aoc to listen to two songs from the sound track of my youth. The first is the entire sound track from the superfly movie, a Ground Breaking 72 album that personified the intense pain and despair of harlem and all get ghettos. The lyrics. Little child running wild, watch it while you see he never smiles, kind of sad, kind of mad, ghetto child, thinking hes been had. Ten years later, the furious five achieved the same kind of social awakening with the message again, the lyrics that focus on children is what struck me most. A child is born with no state of mind, blind to the ways of mankind. Youre grown in ghetto living second rate and your eyes will sing a song, the places you play and where you stay look like one great big alleyway. If you get a chance, listen to those songs and think if you would want your children living in such physical or emotional conditions. Lets make kids smarter and more optimistic about the future and not angry poorer and pessimistic. A verbal attack people have received when they dont wear masks. I would love to hear your mask stories. Tweet me. And the 600 Unemployment Insurance. Jpmorgan has raised the stakes. David webb is here to react. Hes next. [ind mom ct radio chatter] come on, hurry up all systems go . Mission Control 5 4 3 2. And liftoff. vo audi etron. The next frontier of electric. Get audi at your door Remote Services through participating dealers. Some Companies Still have hr stuck between employeesentering data. A. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. Charles the partisan mask debate is on. More and more retailers and states are issuing mandatory wearing and tempers are flaring over those who see such rules as personal infringement. Now, its gotten so out of hand that some companies are actually refusing to issue a mask mandate. Theyre afraid that customers and employees could actually clash. For more on this, i would like to bring in District Media president beverly hallberg. Just moments ago, beverly, home depot is joining a long list of big retailers saying you Must Wear Masks to come into the store, beginning july 22nd. On the other hand, foot locker says they want no part of it. They want the customers to come in, do what they want to do, and plus, they dont want they dont want to have to train their employees to be bouncers. What do you think . I think businesses should decide for themselves and people can decide whether they want to work for that company and people can decide whether or not they want to go in and buy products from that company as well. What i am against is definitely a federal government mandate. When you give power to the government, they dont tend to want to give it back once the issue is over. So when this pandemic is over, do we really want the government making such important decisions on our lives . When it comes to state governments, i think there is a bit more push for that. This could be a civil rights infringement and we need to be careful about how much we let government dictate what we should do especial pi will with our bodies especially with our bodies. Charles there are a lot of questions out there about the science. I know it engenders confidence when people are wearing masks. I think you would probably feel more comfortable going into a store, but having said that, there are so many people out there who absolutely refuse it. They dont believe it works. They believe it could be harmful. They do believe it is an infringement on their civil liberties. In a situation in georgia where the state has mandated it, and you seem to be a fan of federalism, but atlanta is saying no were going to balk at the idea. They want to have mandatory masks the governor there saying no it should be optional. Who is right there . I personally am for the optional because like you were saying, we dont know exactly how this virus spreads. First of all, masks started as a nono from the federal government. They said dont wear a mask. Then wit ent to a recommendation then it went to a recommendation. We see states taking different approaches. The way to win over the public is to bring them science. If there is proof, if there is absolute proof that this can prevent people from dying, from contracting it, that is one thing, but lets not forget, this is where they lost a lot of people is when Health Officials started weighing in on when a protest is a danger and when it is not. We have seen so much hypocrisy between the protests and how we should treat coronavirus, and when you lose the public and think things are insincere, people wont follow suit. I think people would be willing if there had been some consistency and honesty along the way. Charles right. 30 seconds, we didnt do winners and losers, but you did actually note that theres a mask maker that could be the winner. Quickly the winner for me this week is im so thankful that we have companies that are being creative doing this time. Theres a company that made the selfie mask. I find this personally a bit creepy. I wont buy one for myself, but it seems to be a hot seller. Got a lot of twitter action. If you want to show a smile while wearing a mask, maybe you send in a selfie of your facie s and you can get one made. You should get one charles. Charles my wife has made and donated 500 masks. We have sewing machines. Down stairs the house looks like a factory. Singlehandedly shes done that and makes some great masks. I will probably have to stick with one of hers. Beverly, thank you very much. See you soon. Thank you, have a good weekend. Charles thats not the only debate. A huge debate over further stimulus and it is heating up in the white house. Whats going to happen with those enhanced Unemployment Benefits . Thats the 600 question. Blake burman is live with more. Blake . Hi there, charles. The negotiations between democrats and republicans on this phase four relief measure really expected to pick up starting next week. Heres how im told it will work at least over here at the white house. The treasury secretary mnuchin will be the one leading the team over here, no real surprise there, considering that was the setup last go around. He also has a very good rapport with the House Speaker pelosi. Im told by the way that the chief of staff mark meadows has been informing people of that decision as well. Speaking of meadows, a former congressman in his own right, he will be a part of the senior leadership, i guess if you want to put it that way, heavily

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