Much. The market worry when it wants to worry or when its too late. Im charles payne, this is making money. Breaking right now, we are seeing a bifurcation in this market. Its been an amazing may, but its been stagger all of the names you normally wouldnt hear about like utilities. When will the magnificents step up, because at some point its going to be needed to keep this rally going. Although ive to got a special guest who says there might be a changing of the guard. Should i stay or should i go . Diane swan breaks down how inflation is clashing with the feds thinking, and i have barron davis joining me, now the host of going public, a company about startups. Amazing stories. I cant wait for his thoughts on americas entrepreneurship. Ill also ask whos going to win the championship this year. And my take on mcdonalds expect unhappy meal as the struggles of Middle America continue. All that and so much more on making money. Charles all right, so the stock market, its sort of just, or you know, listen, it keeps moving higher. Its been a compelling move because its been led by utilities, right in look at this. Over your last five sessions, all sectors have been higher, so the same tide is lifting all ships. But if we look back over the past month, your two classic, traditional safe havens, utilities and staple, really have been the only sectors that have enjoyed strong strength of we have seen signs with some of these sick cyclical areas america live, theyve held up, but only two moves up moving up. We drill deeper, and we can see more biif fur if case. The bank index has come roaring back after bouncing off key e Technical Levels in april. Its made a stealthy move and all of a sudden its at new highs. But on the other hand, regional banks are really a country mile from their alltime high, and they have a whole lot more work to do. Heres the thing, folks, the issue is the action in the magnificent seven and not all of them below [laughter] not that magnificent seven, a although they are fantastic. Were talking about the accept stocks that will pour the next Industrial Revolution power. Their annual Income Growth has been and will be mindboggling, but massive buybacks have also played a role, and despite the big news out of apple, these company are poised to buy fewer of their own shares. Remember, in the movie version of the magnificent seven it was a small town so fearful of local marauders that they had to hire gun sleepingers for gunslingers for help. They wanted to mistake sure the towns folk had the confidence to survive without their help. Similar situation with the stock market. Its been mired in fear despite the fact that weve had this strong may because the bottom line is investors still maybe are not sure that the thrallly can go on without the gunslingers leading the way. Joining me now, lance robertson. Lance, i do want to get a sense from you how big of a role does the magnificent seven and some other megacap tech names like semiconductors have to play a role for a sustained rally . Well, it actually needs a lot. And the reason is, is that if you take a looked at the s p 500, the top ten stocks make up about 30 of the index, gave or give or take, which means every dollar put into the s p 500, 30 cents goes into those 010 stocks. So 10 stocks. So if those guys arent leading, its going to be hard for the rest of the market to to drag up the index accordingly. We did see system underperformance from meta and a couple other stocks, apple in particular the last couple months. We need to see more improvement if this rallys going to continue. Charles so beyond the fundamentals for these names, we see Insider Selling has been picking up. First it was a little blip on the radar, now getting bigger. Some believe buybacks are going to fade. So with respect, again, for the magnificent seven, does that both bother you at all . Look, at the end of the day, charles, its about a earnings. If you take a look at the recent earnings session we just went through, the only companies that are really growing earnings and, most importantly, Profit Margins are those big 10 tech stock companies. You strip those out, weve not had any Earnings Growth in the s p for the last 2 years. So its going to be very important for those companies to continue to generate earnings. And, of course, a big part of that is those buybacks. Apple and google will make up almost 18 of the buybacks alone this year, so thats going to help support that market because corporations have been about the entirety of net purchases of equities over the last few years. Charles its amazing, isnt it . Lets talk about the names rights now d chip names, which ones do you like . We recently, during the downturn in april, we added to the invid. And amd. Theyre nvidia and amd. Also, you know, if you want system diversification, broadcom is also a good company, Texas Instruments in that space. Also youve got to look at the manufacturers like Applied Materials and taiwan semiconductors, also important. But if you really dont know where to put money in the chip space, you can always use an etf like smh which is the Semiconductor Sector in your portfolio that gives you broad diversitiuation diversification across that space. Charles taiwan semiconductor, great news today. I know youve been rebalancing exposure to wrote tilts. What do utilities. What do you like about the sector . Its all about a. I. At the end of the day. One of the things thats been leading the market has been this whole 56789i. Chase, nvidia, amd, microsoft, amazon. The data centers are very important to the structure. The chips that go into it. But youve got to have power for that. And one of the big things over the next few years is going to be developing more Power Infrastructure to deliver the electricity requirements we need not just for a. U. E, but also electric a. I. , but also electric vehicles, the computers, phone, Everything Else were doing can. We just dont have enough power to continue to generate that, so Companies LikeAmerican Electric power p duke energy, the new spin ioff from general electric, the g ev is that symbol there, those are all providing that infrastructure to delivering power and the delivery of the power itselfful theyve been on a great run. Theyre overbought short term, but i would look to add on pullbacks when you can. Charles yeah, absolutely. Hey, lance are, great stuff, my man. Have a fantastic weekend, and lets talk next week. Absolutely. Thank you. Charles all right, see ya. You too. My next guest also saw that april decline as a buyable dip. I want to bring in key Adviser Group ceo eddie ghabour. Eddie, i agree that the market was due for a pullback, but my question is was it big enough in us with it was a 5 percent pullback big enough considering how far the market had come . Charles, i think one of the interesting things with the selloff in april was there was a lot more damage done to names than what the broader index actually indicated. I think that was enough and a good industry point. Now, i am a little concerned heading into next week. The vix has come down, yields have is are come down. And this rallys been on very low volume heading into a cpi print. So if that are kp if i print if comes in really hot next week, short term the i could see another pullback that could test those april lows, but i think those would be good entry points, and we would continue buying that dip in anticipation of what we think will happen this summer. Charles yeah. In fact, just to ping on what youre saying, nasdaq came out the gate pretty strong. You had a combination of things from Inflation Expectations to a couple of fed if officials throwing cold water on, you know, interest rates. So, again, they react, i think, more sensitively than any other major market. I want to pick up on your summer rally theme. Walk us through the rationale there. So the rationale is i think this market and the bond market is telling us that we may get some softening on the inflation data that will be perceived as good news, and then well get weaker economic data. Were in a time period right now where bad news is good news because Everyone Wants the fed to cut rates. So i think that will keep that narrative in play heading into the summer months. But i think if the fed cuts rates, thatll be a huge policy mistake, and well probably start selling at that point in time. Itll be perceived as good, itll suck everybody in, and thats when well be looking to get out, because i think inflation will reaccelerate regardless to at the e end of the year and the 10year starting to go back towards 5 , and i think youll hear the fed having to raise rates again next year to get this inflation down. So i hope theyre prudent, and they stay where we are. Charles yeah, i hope theyre prudent too, although i wish theyd start more aggressively. I think if theyd been more aggressive at the beginning, this would be a moot point now. I understand youre looking for a changing of the guard during the summer rally, but if you think rates are going to be an issue, then youre looking at other areas. Where are you looking right now . Charles, we looked and said, okay, what can do well regardless of what the fed does and take the guessing out of it. And since we think were going to be in a higher inflationary regime, we want to own things that do well in an inflationary if environment. Weve been buying energy. We took down some of our tech plays and went into energy, industrials, emerging markets. We think those three will outperform the s p over the next few months x. Then the one thats been a pain in our rear end has been small caps. We got in in january. Every time we get to that 204 level and we think its going to break out, it keeps going down. Were being patient there, but small caps would be the fourth area that if were going to get this broadening rally that we need to be healthy, you can outperform the s p. Charles before i let you go, i i know you also like commodities. Commodities are tough, right in most of the folks watching dont necessarily informs the in them. They invest in them. Is there a way for people out there to have exposure to commodities . There is. Charles, we just bought an etf, pdbc, is the symbol, and its a nonk1. K1s are a pain in the butt for individual families when heir trying to buy commodities. Its got oil, its got copper, its got natural gas, wheat, corn, silver, gold. So its a great way to play commodities. We will look to get this position to 10 , because i think commodities are going up. And you can play the industrial individual equities and the energy equities, again, indirectly tied to that play on inflation. And and i think being overweight those areas are a way to take the guessing out of what the fed s going to do. Charles all right. Folks listening on the radio, thats papa, delta, bravo, charlie. Have a great weekend, eddie. Talk to you soon. Thank you, charles. Charles we know the epicenter of concern for these markets had been banks, mostly because of exposure to cre, but there may be a diamond in the rough, an unlikely one. Also money is broken. Someone who may have a clue on how to fix it because she knows everything about why its broken, lynn also aen is going to join us right after this. Youre beautiful like diamonds in the sky. Eye to eye, so alive wereei beautiful like diamonds in the sky and more about discovering magic. Rich is being able to keep your loved ones close. And also send them away. Rich is living life your way. And having someone who can help you get there. The key to being rich is knowing what counts. aaron i own a lot of businesses. So my tech and my network need to keep up. Thank you verizon business. kevin now our businesses get fast and reliable internet from the same network that powers our phones. aaron so whatevers next. Were cooking with fire. vo switch to the partner businesses rely on. i got injured, um, my back got injured very bad. I was off work for about a year. Did physical therapy, did. You name it i did it. I heard about relief factor from my wife. She basically made me take it. 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Thats why more choose comcast business. And now were introducing ultimate speed for business, our fastest plans yet. Were up to 12 times faster than verizon, at t, and tmobile. And existing customers could even get up to triple the speeds at no additional cost. From the company with 99. 9 Network Reliability and advanced cyber security, its ultimate speed for ultimate business. And its all from comcast business. Charles so this week i was reading that argentina now is circulating a 10,000possess sew note, the first pace sew note p. Think about this, its worth the equivalent of 11 u. S. To paraphrase the movie views, i think were going to need a bigger wallet. Lets bring in someone who understands why money appears to be broken more yearly, lynn alsoen joins us now. Lynn, i just want to implore all the audience, everyone watching, theyve got to see your half hour overview of your new book, i think its amazing, i love it. I think it should be teaching 101, congratulations. Im thinking weimer, germany, but is there any different deference between that and deficit spending with the u. S. Dollar . Well, thank you for recommending the video, so people should check it out. Basically, the difference in speed with these kind of deficits is largely determined by magnitude. So countries that have liabilities in , that they cant print, for example, why or mar, germ first or argentina today, countries that have their liabilities in their own currency, they tend to go through a similar phenomenon, it just stretches out over a much longer time period with generally lower magnitudes. And so i think thats what were seeing in the United States, that thats what were seeing in japan for people who are paying attention to the yen devaluation, these all sort of the same trajectory, just a much slower pace. Charles does that a slower pace give us false confidence . I think it does. I think it gives us a sense of invince about. I think over or the past 30 years people that have been very concerned around the debts in developed markets have kind of come off as premature, and i think people took the wrong view from that which is basically e that the deficits and debts dont matter. One tailwind that we had over the past 30, 40 years was structurally declining interest rates, and to large and larger e debt cans were offset by lower interest rates, so the interest expersons was still manageable. However, once we hit zero throughout the developed world and started bouncing sideways to up in terms of interest rate, those debts and deficits are becoming less sustainable. Some of the things people learned over the past 20, 30 years, i think a lot of those are the wrong lessons. These things start to matter on a more significant scale even in developed countries. Charles i think it was turkey key i was reading this week said inflation finally peaked at 70 [laughter] and im thinking, okay, well, turkey is known for erdogan fires at, whoevers in charge of their Central Banks at a whim, right in how critical is the role of the central bank, and they ignore if inflation . It seems like theyre between a rock and a hard place because on one hand if they keep hiking rates or allow rates to go up, its twoapg to have a serious, painful impact as well. Yeah. Generally speaking, countries that dont have an independent central bank, they tend to have a lot more currency problems because the Monetary Policy gets a lot more captured by shortterm needs of the administration. Whereas countries with a fairly independent central bank, it generally takes a lot longer for them the get captured, but it generally happens over time. Once debt to gdp if gets to a high level, the options for otherwise somewhat independent Central Banks become a lot more limited and tools more blunted when it comes down to slowing inflation. Basically, either way it kind of leads to the same outcome, but again its a matter of speed and timing. Charles all right. So ive got less than a minute go. Is there a nonpainful solution to all of this . Yeah, i think, unfortunately, any sort of major disruption or switchover of these types of things tend to be pain. For example, in an emerging market when their currency gets so bad that people switch towards dollars and the country dollarizes either from the bottom up or top down, that tends to be painful for people on the wrong side of it. I think the best thing people can do is learn about whats happening, educate themselves around the ongoing money supply growth, the ongoing large debts and deficits and position accordingly. Own assets that are scarcer, you know, use debt appropriately, cautiously and basically try to position themselves on the right side of it to at least minimize the pain that they experience in their portfolios and in their financial lives. Charles all right. Well, if theyre going to educate themselves, they should start with that 30minute video. It is fantastic. Lyn thank you very much. Appreciate it. Thank you. Charles all right, folks, lets get to some of your money mail. My ode to fog or horn leg horn to kick off yesterdays show got a ton of reaction. Joe quiting tweeting, my favorite guys, foghorn and charles. [laughter] todd says, well done, charles. Rob luna, of course, tweeting, man, i was crying watching that before i was on yesterday. Made my week. Will be watching old foghorn clips. And act goodser says currently in the United StatesPresident Trum