tv Making Money With Charles Payne FOX Business February 23, 2021 2:00pm-3:00pm EST
♪. neil: boeing has now grounded all boeing 777 airplanes. there are about 69 in active service right now across the world to get to the bottom of this united airlines engine problem. i will talk to the ntsb chairman at 4:00. here is charles right now. hey, charles. charles: neil, thank you very much. good afternoon he one, i'm charles payne this is making money. breaking now jay powell is saying ultralow interest rates are here to stay but with the economy getting stronger what does the fed have to do convince wall street that with will keep the easy money fleeing? president trump making endorsements for the next election cycle. that is obviously a signal he is not going away. we'll hear from him this weekend, we'll get an update on the appearance his appearance at
cpac from mercedes schlapp herself. all anyone really wants to know is what to buy on the dip. plus i give you my take on this spac frenzy we're seeing. i'm joined by senator marsha blackburn, all things d.c. all that and much more on "making money." ♪. charles: house pushing ahead on president biden's two billion dollar covid release bill despite no republican support. so egregious are details emerging really underscore why the democrats didn't bother to reach across the aisle. i'm joined by republican senator marsha blackburn of tennessee. senator blackburn there are at least a half a dozen items that left me speechless in the last day or so. this is not a rescue bill. it is a whole lot more. your thoughts? >> it's a lot more than a rescue bill. our covid funding that should be targeted timely and temporary.
but what they're trying to do is bail out the blue states. you have got about $50 billion for new york, $27 billion for california. the bay area rapid transit is going to get millions and millions and millions of dollars. so what the democrats are doing with their bill is rewarding incompetence. they are rewarding people that have been taking the taxpayers money, spending it fast, loose, running up a lot of debt. this bill has got to go through the senate parliamentarians. it has got to go through the byrd rule and the byrd bath as they say. we'll see what they say has to be pulled out of it. charles: right. you know, to your point, not only rewarding these states to your point, it feels like it is emboldening them to do the same policies, same ham-fisted policies putting thousands of
restaurants out of business. millions of people out of a job permanently. it is saying keep doing this. that is what bothers me. they will continue with policies that haven't worked ultimately destructive for their own economies? >> precisely. they're looking at this bill, saying, if you are going to be disrespectful of the hard-working taxpayer we'll give you more, more money to go blow. more money to spend on unions and pensions. more money to put into teachers unions that won't go back to the classroom. and by the way, we're going to give you a kicker, a 15-dollar an hour minimum wage that is going to put a lot of small businesses out of business and when you talk about restaurants, and live venues and the entertainment industry people that need to have those support system jobs, $15 an hour as a minimum wage, you know, charles, one of my manufacturers in tennessee said look, we pay on a
scale that is called minimum wage plus. and they start with minimum wage and they must it up. whether it is new hires or long-term employees. on their hourly workers. this would completely change the way many companies have done businesses. there would be millions of people that would lose their jobs because of 15-dollar an hour minimum wage and thousands of restaurants, thousands of small business employers that would shut their doors because they can't afford to work. charles: you mentioned the senate parliamentarian. many believe that could be the last hope against this determined effort to push this through along with the other spending. now it is interesting, two of your colleagues, republican senators tom cotton and mitt romney, releasing their own version of this sort of raising the minimum wage to $10 instead of 15. they have other specifics in there, particularly regarding
illegal immigration and things like that. this is an issue, right. can there be an elegant solution for it? >> well, we need to remember is that people want a maximum wage. they want to be able to work hard and be rewarded for their productivity. and then you can look at it and say, you know, the bottom of the wage scale is zero. if people are not going to work. now i'm one of those. i say let's reward people who want to work, that want to work hard. that are out here trying to compete and then, let the market set the minimum wage, in different states, a minimum wage is going to be different. it is different in tennessee. it than it is in illinois. it is different in new york than it is in new mexico. and we need to realize that and stay with where we've been with the states working on this issue
charles: right. senator blackburn, you said a maximum wage i almost broke out my tambourine. i appreciate it. always appreciate the conversation. >> absolutely. thanks. charles: absolutely. see you soon on that point i want to bring in belpointe chief strategist david nelson and key advisor group eddie ghabour. from the markets perspective, seems pretty clear, more money the better. wall street is not carrying 1.9 trillion on top of 4.7 trillion, just keep it coming. the more the merrier, isn't that really wall street's perspective right now? >> the markets always want more money. investors understand the genie is out of the bottle and the investors are concerned about inflationary effects of flooding the system. not just where the 10-year is i had at thatting, charles, or commodity prices are now soaring. what they need to understand,
they have to get the capital with those that needed most. they want a targeted package. not just a wasteful package. that gets in close proximity businesses, those hit the hardest. focus is there. wall street i think will be fine with it. charles: eddie, you like that as opposed to flooding the zone? >> look the market short term will reward this flood of money. i don't think the government will be able to target the stimulus. they should have been doing that from the beginning. they haven't. the bottom line we have two dynamics right now. risk assets get rewarded as money floods in. make no mistake the government is adding fuel to this massive bubble being created. investors need to make sure they have a plan b for when that bubble starts to show signs of cracking. we told our clients possibly fourth quarter, we would be risked, right now risk on trade for the next two quarters because these gdp numbers, the spending numbers are going to
blow the roof off. charles: i see #riskon, baby. i see that on a bumper sticker. semiconductors already way off the lows. eddie, i know you're a buyer on the dips. you talked about it. how do you go about deciding hey, this is what i want to buy? i made a list already. i have 25 stocks in there i missed on the way up, i've been salivating on this little bit of a pullback? >> to your point, i think you have to know what sectors you want to be in. right now the energy sector, the small cap sector, an anything and anything travel, entertainment and leisure are the areas we think are not even close to where they're going to be six months from now. so when we see dips in those areas, we have continued to buy that because again it is such an underowned asset that ultimately these big funds that don't have any coast sure and energy in some of these other plays will chase returns. when they plow money into that, if you front run them you will get explosive growth on that.
so we're just scratching surface where we will be six months from now in those areas. charles: right. i happen to agree with that. you know, david, you know, we're spoiled, right? i think almost anyone in this market, kind of spoiled. i would like to go back to march 23rd when we talk technical indicators, particularly support points. with that in mind, you can pull way back still be in an uptrend. you're always vested. how do you look at these sort of dips? i think you take a little bit more of a conservative approach? >> you know for me it is about trying to buy on the way down, how i'm positioned. if i believe there has been a fundamental shift in the marketplace, i have to move capital from one sector to the next, i will do it. frankly don't care if i'm selling stock at 52-week high or 52-week low. rising 10 years yield we're not lost on market. when you see yields that high. valuations don't live in a
vacuum. it is forcing us into lower multiple names to eddie's point. financials and other stokes are outperforming. year-to-date tech is actually underperforming the market. that is unusual. it tells you something different is going on in this economy right now. charles: eddie, let me switch gears, you needed to be awarded not only laser eyes but diamond hands. you're buying bitcoin on a dip. this is one of the bigger dips. combination of things, i think yellen talk, the more she speaks the more i believe xi may want to take action against bitcoin if she can't jawbone it lower but why buy the dip? >> this move in bitcoin is very common. 20 to 40% moves in crypto is normal. if you're in a bull market and a risk asset trade which i firmly believe we are in, those dips should be bought in my opinion for the right investors f the risk trade works out we're anticipating i would expect a bounce at some point in time and
rip through all-time highs in the next month or two in cryptos. if it drops again tomorrow. i will buy more. charles: real quick, less than a minute. david, you talked about where yields are now. realistically, if you look at the past 30 years, the 10-year is probably high as it has been in the last, been higher than this in the last 29 years. if we're going to panic here, what happens when you get to 2%, 2 1/2%, 3%? >> i can't tell you where the line in the sand is. each step higher demands growth higher than it is right now. we live in these valuations right now. we support these valuations because of where the risk actually is. the fed is controlling the short end of the curve. as rates move higher. as commodity prices move higher and force us into these risk-on assets as eddie was talking about. we have to grow a lot faster than we are right now to support the valuations. it's a big deal for the market.
the market is reacting to it in real time today. charles: david, eddie, thank you very much. always appreciate it. spacs as you know taking wall street by storm. for many it is like the wild west out there. i have a great story to share with you. later in the hour, cpac getting red kuhl from canceling a reprehensible guest for the event. mercedes slaps will answer her critics when we come right back.
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♪. charles: special purpose acquisition companies or spacs have taken wall street by storm. it has for many become like the wild west, a good old-fashioned money grab as lead insiders make all the money and investors take all the risk. the current system sees companies change hands privately for a decade before the individual investor gets its shot, that is major disappointment. the same old wall street folks, silicon valley, they make money, guaranteed billions of the ubers of the world go public. this is one of the reason i only
played spacs as trading ideas. this morning developments underscore another reason. churchhill capital provides a great example why spacs carry many inherited risks and complexities beyond the experience of many or most individual investors. yesterday my wife went to see a new foot doctor, while she was there, i don't know somehow they began to talk about the stock market. he was extremely excited about churchhill capital. my wife sends me an email, is a subject line, question marks on church him capital. i'm closing it out. this was to assuage eagerness to be in something undiscovered she soon thinks will get hot. churchhill was already hot. everybody already knew the rumor. the second oldest axiom wall street, sell the news that was choi this morning with churchhill. this long rumored deal saw new investors buying the stock at $15. i didn't see that coming.
so how do you play in this spacs space? say that quickly. let's bring in director of options at simpler trading, danielle shea. danielle, were you ever long this churchhill? >> no, i was not. charles: okay. spacs, there are a dozen of them a day. some have been amazing. i've done extraordinarily well in the draftkings of the world and virgin airlines of the world. how do you go about, how does someone know when to buy, how to hold these things because there is no real road map for them? >> no there is no real road map, charles. we cannot look at the fundamentals, 2025 earnings are so far away at this point. we can't look at the numbers. for me what i tell my clients you have to look at something that is unique in the field, it has to be a disruptor, okay? so not only us did the company have to be unique, it has to be one of the first companies in the space, but it has to be a disruptor. it has to be something new like
draftkings. then, the third point is you really want a company that is being brought forward by somebody with experience. you want, you know, executives of the company to have a lot of experience. you want the person bringing forth the spac to have a lot of experience as well. charles: right, right. that is a great point you bring up. we're getting more and more celebrities in this thing. we're at the height of celebrityism and elitism and materialism. maybe that works but for an investor if you go with the idea that these companies will disrupt entire industries they better know how to do it. it can't be, not dissing anyone, but you can't be a baseball player, tell me you will disrupt some other industry. you invested in some spacs very success any. can you share three names you like right now? >> personally i like open door. i personally think this is a disruptor in the field. house flip something a for real. the real estate market is absolutely on fire. i like 20 three and me.
i think that -- 23andme. that was the first company in this space. i think that will be an area that will continue to grow. i also really like richard branson. he is amazing. you know, he is successfully brought many other companies public and i think that he is going to do a great job with this one. the third one i like, sofi. you we talked about this. you liked this one don't you? >> i do. all the names you bringing up you have solid background reasons for liking them. what happens if they take up, up 400, 500, 600%, everybody wants to talk about them do you ride the wave or is there some point where you get a little anxious when everyone jumps on the band wagon? >> i definitely get sanctions when everyone jumps on the bandwagon. my strategy i take out a position. i like to dictate this, percent of this position will be my
long-term hold, i am going to hold that for five or 10 years, if it goes 400%, you know to the upside i'm still going to keep it. but the other half of my position i will sell it and take it off as a trade. that is the way i've been managing all the recent ipos and spacs. you know i do want the long term potential but i could not ignore the fact that they have made for great trades. charles: danielle, that is absolutely fantastic. actionable advice that people need. okay? we can throw out a whole bunch of hot symbols. that is something everyone, i hope they wrote it all down. thank you very much. talk to you again soon. >> thank you. charles: jerome powell has been warning about inflation and employment. listen he is working on both. he is not really that anxious but the biden administration nevertheless going to push for new taxes. the bottom line, there is a lot of confusion as to the economy. can it keep going this great without overheating? plus long-term care is in a crisis. you all know that.
obviously new york is the place where we're really looking. this as pressure mounts on andrew cuomo over that state's thousands of nursing home deaths. fox business is talking to those directly affected by this and also looking even deeper, coming right up. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;)
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charles: fed chair jerome powell warning to lawmakers that the u.s. recovery sun even and incomplete. hillary vaughn on capitol hill with more. hillary? >> charles, fed chair jerome powell, the more vaccinations into people's arms, the faster the economy can return back to normal. he said the way the fed is going to look at unemployment is going to be different moving forward. they're going to look at the number of people in the workforce but whether or not that number is inclusive of minorities. that is exactly what democrats wanted to hear today. they pressed powell further about how far the fed is willing to go to address economic
inequality. senator elizabeth warren asked powell if he would support a wealth tax and he said that goes beyond what the fed is able to address with their tools. they're not able to address wealth inequality. they can do some to address income inequality, or employment inequality. they can't go so far backing a wealth tax or make comment on that. we saw some senators try to nail powell down whether or not he thinks we should add another $1.9 trillion to the deficit by passing president biden's covid relief bill. he didn't want to give an opinion on any of, any fiscal policy or any legislative measures that congress is considering but he did say that at some point the deficit needs to be addressed but, that is not, right now, now is not the time to do that, charles?
charles: hillary vaughn, thank you very much. so fed chair powell, leaving current policies in place, until he thinks the economy fully recovered from the pandemic. which, he says is likely to take some time. of course wall street just not convinced that powell can pull it off. joining me now, former jpmorgan chase chief economist anthony chan and bank of new york mellon investment chief investment strategist alicia levine. anthony, seems the market wants the fed to be even more aggressive before they lose this chance to -- rates are erupting and i think wall street is unconvinced that powell can tamp them down at a certain point. what are your thoughts? >> well i think that, you're spot on, charles, the economy is recovering and as the federal reserve continues to throw in $1.4 trillion worth of liquidity every single year, we know that with an economy that continues to grow we will see long-term
interest rates moving higher. now of course they can get ambitious and try to do yield curve control to try to tamp down those long-term interest rates so far they don't feel that the upward pressure on those long-term interest rates like the 10 year treasury is still threatening enough that it will cause a problem for this on going economic recovery. charles: right. alicia, what do you think? it seems to me almost every fomc meeting now, whenever we have the q&a session, what powell doesn't address to anthony's point, somehow capping yields or even negative yields, wall street has a little bit of a fit. you know, he has held his ground so far but, rates are going higher and that puts additional pressure on the fed to do something? >> look it is a really interesting question because the fed has to thread a needle here between encouraging liquidity that can help the real economy recover, particularly those areas where people are still out
of work, you know the 12 million people who remain unemployed over the last year, while at the same time not igniting an inflation spiral. it's a very difficult thing to do here. rates have moved quickly. that is more of an issue for the market than its the actual level. i think the ten year will get softer here. charles: right. >> in the next few days. i don't think you will see yield curve control until there is some sort of tantrum from the bond market. we don't see it just yet. yields are moving higher because of increasing confidence in the real recovery and real economy and higher inflation expectations. charles: old school bond vigilantes, no one has seen them in a long time. hey, anthony i know you cut your teeth initially as an economist at the federal reserve. have you ever seen the fed, what do you make of the fed, because i don't think any of us ever seen it, to hillary's point earlier they have become so
ambitious, right? they want to address things like income inequality. they want to fix the wrongs of yesteryear. they want to change policy, many wonder a, can they pull off, b should they be trying? >> charles, the answer, to that question is quite straightforward, they don't have the proper tools to handle income inequality. but somehow that has become an important issue to address. the people groups, better equipped to handle income inequality is congress. you could easily make the argument over the last 20 years income inequality has deteriorated, congress has stood by, not done much about it. so that is bringing the federal reserve in. but they don't have those proper equipment. charles: right. >> to give you a silly example, if you have a fire in a building and you start to use little kitchen fire extinguisher to put out the fire, that will not get the job done but you want to do something until the fire trucks arrived. maybe if the fire trucks don't
arrive you did something. that is what the federal reserve is doing. because they have a really blunt instrument that is not geared towards settling those issues. charles: well to borrow your analogy, some would say the fed set the fire with income inequality by running up these asset prices that helped the ultrawealthy. let me bring in alicia back in with less than a minute ago. this is their conundrum, isn't it, alicia? they know they have played a role in the income inequality. they know the finger has been pointing at them but should they go down to path to anthony's point? what can they do, other than make the problem worse. >> it is being arsonist and fireman at the same time, right? i think in some kay ways the policy choice is very clear, not with this administration, getting equality issue front and center for the fed. it is not lost on them, black wages did not start to rise until nine years into the last
recovery. that is really terrible. that is something they want to get in front of this time. so expect liquidity. i do think we'll be hearing about the taper later this year because we're going to have an enormous growth boom in the country. that will be very difficult for the fed to maintain, you know, bond buying in the face of that. charles: we're out of time. there might be something to be said about black wages starting to rise rapidly, poverty going to an all time low under a low tax regime. that is for a different conversation. anthony, alicia, you're two of the best. appreciate you taking the time. cpac is getting mocked for canceling a reprehensible guest at its anti-cancel culture event. mercedes schlapp will certainly respond to the critics. long-term care is in a crisis as many facilities across the country are closing their doors. we'll look at the nursing home situation, ask really the question, how much of a role does private equity play in the death of nursing homes?
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♪. charles: nursing homes are in crisis across this country, facing dire financial straits. the problem of course amplified in new york state where governor andrew cuomo is under fire for undercounting covid deaths at those facilities. lydia hu is with us live from the state capital with more. lydia? reporter: good afternoon, charles. we are outside of the van renslar manor here in troy, new york, and the county executive here in new york says this particular nursing home is losing thousands of dollars every day to continue the effort to keep its resident patients here safe from covid this nursing home also defied governor cuomo's executive order from march 25th and they say that they will not be one of the nursing homes that is facing
closure this year. >> we're probably losing about $17,000 a day. i was willing to take that hit to protect the people inside of this building, to keep that covid positive wing, you know, open. reporter: now financial issues are threatening hundreds of facilities nationwide. national estimates predict 1600 nursing homes could close this year with around $22 billion projected in losses. industry leaders say, that would pose another health care crisis. we spoke with one man who was forced to move his wife earlier this year when her facility in new york closed. >> there's a lot of you know, nationwide, there is a lot of places closing. it is definitely stressful. basically, just, you know, if you think that the places going to close, do everything you can right away to find a bed because they are scarce.
they're hard to come by. reporter: now the encouraging news in all of this the vaccines are helping as he rolled out with priority in the nursing homes. they are seeing the rate of new covid cases dropping dramatically, down 67% from last month. industry leaders say while they are continuing their fight to keep as many facilities open in the coming year. they're asking congress for $20 billion in aid, charles? charles: lydia, thank you very much. welcome to the team. reporter: thank you. charles: for more folks, i want to bring in one of the most conscientious and by the way one of the most successful investors i know, federated hermes equity market strategist phil orlando. phil, obviously we all know governor cuomo is in a world of trouble but there is a broader issue maybe here. there is a report from the nbaer and that shows that private equity ownership in nursing
homes, this is their report, increased short term mortality of medicare patients by 10%. so by their being coning, we're talking about 20,000 lives lost over 24 years. i know wall street, there is sort of this belief that private equity can do no wrong but are there any industries the bottom line isn't the number one consideration? >> charles, thanks for having me back. i think the nursing home industry is at the top of the list of an industry that you've got a very delicate balancing act here. you've got to care for your elderly population. you've got to be able to do so in a manner which you can afford to do it. and that, maybe is inconsistent with the private equity model. think about what they do in other industries outside of the nursing home industry. they look at a business that might be mismanaged, that doesn't have appropriate valuation. maybe it is sitting on some good real estate.
they go in. they manage it better. they try to extricate some value in the form of generous dividend payments for the investors. and then they move on. sometimes they have loaded that business up with debt in order to achieve that end result. that may not be the o mall way to manage a nursing home. as you saw from the previous story, you want to be able to take care of these people but you have got to be able to afford how to do it. charles: yeah. you know, i have to ask you, now, because you're there right? in fact you're sort of a pioneer in this whole esg movement but i got to tell you lately there are also some signs that the massive power of what you helped to create, phil, this esg movement, could be having some unintended consequences like this boom in oil prices. so i want your thoughts on that, so if you think we're in the beginning after commodity super cycle? >> i think we're clearly in a strong uptrend in commodities.
you look at a number about of the mom nam price increases in some of the agricultural commodities. wheat, corn, soybeans, oil, copper, lumber. these price have gone vertical over the course of the last year. looking specifically at oil, which was your question, oil prices are up 80% just since the election, in early november. now why is that? president biden won the election. he has consolidated control of congress and, he is already shut down the xcel pipeline talked about the fact he is going to band drilling on fracking, on federal lands. so, as the economy is recovering, and as oil companies have cut back their exploration and production, that supply demand balance is tightened, it forces prices higher. we're not, we're not at the top yet because the economy is reaccelerating from when the recession ended last may or june
to where we are now. this entire year is going to be a strong year of recovery. so oil prices, specifically, commodity prices in general, are probably going to continue to work higher. charles: phil orlando, thank you so much. i always love these conversations with you. you're a straight-shooter. i appreciate it. >> thank you, charles. charles: i have pretty sad breaking news i want to bring to you right now. it is from california, golfing legend tiger woods was in a single vehicle rollover crash. police and fire crews said they had to use the jaws of life to extract him from the vehicle. tiger woods is in the hospital. no word right now on his condition at this time. of course we'll be following it through on this and bring you any updates. we'll be right back. forward. they guide me with achievable steps that give me confidence. this is my granddaughter... she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement.
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♪ charles: all right, cpac folks, kicks off on thursday. former president trump will be the headline speaker this weekend. now the theme is america uncanceled. but the event already had to cancel a guest which i saying something cultural hint. i want to bring in foundation president mercedes schlapp. folks like the lincoln project taking delight the cans sell
culture played a role, they think it did. tell us what exactly happened with this particular guest. >> well the lincoln project has their own scandal to deal with right now. i don't think they have too much footing to stand on right now. with this particular guest, it was presented to us that he had some reprehensible views that were just not acceptable. and so we felt very strongly that we would need to disinvite the guest. you know, we really believe it is important for cpac to be a place where there is an exchange of ideas, where there is diversity of thought, and really be able to engage the grassroots activists, to hone in on how they need to prepare to focus on defeating socialism, defeating the far left agenda and stopping the biden administration's policies, that we know have been destructive for so many workers and we're just at the beginning this administration.
so cpac is an opportunity for conservatives and republicans alike and those that are disgruntled with the democrat party, to come and learn from the very best in our movement, in the conservative movement which we know have a very strong voice in this country. charles: you know, so sounds to me like, listen, in so-called cancel culture world that we're in, that gets crazier every day, there should be guardrails. there are these guardrails that don't extend to just sort of things we've seen where this out of left field people are being canceled for things they might have have said 20 years ago, almost irrelevant today. let me switch, go back to something you just talked about. you can also reply to that as well. i always found cpac to be an amazing source of young conservative thinkers. that i know you have an amazing lineup of folks that are going to be speaking but your audience has always been phenomenal. shoutout, you sold out immediately. >> that's right, we did sell out
immediately. obviously when they heard the president was coming as well, there was a huge frenzy following that announcement. but charles, let me make a clear point. i think it is important for people to understand what cancel culture means. what the left is tying to do, not only to try to cancel you, it is about the destruction of the individual. that means that for example, if you in any way are associated with supporting president trump or supporting the maga movement, or supporting the cpac movement, that you are a target and they're going to go after you, so you don't have a job. so that your voice is silenced. so you don't have an opportunity to succeed. and that's what i find to be so, so appalling coming from the left. we live in a country where we value freedom above all things. we have our god-given rights and that is something that at cpac we feel very strongly that we want to have these conversations. look, even in the conservative or republican family, there is disagreements. but we all can agree that we
need to defend the constitution, that we have to protect our liberties and insure that america stays a strong america. we're very concerned in the direction that big tech and these democrats are pushing to try to silence even networks like fox and fox business. charles: no, you're right. they're actually going after individual voters, people who took the right to vote, who the heck they wanted to vote for this. is the party of tolerance and to your point, you've got to draw the line and fight back. mercedes, congratulations thanks for coming on. we'll watch you this weekend. >> thank you so much. charles: under pressure although we're getting nice little bounce off the lows. this rotation story goes back and forth. we'll hone in on the trades you need to consider before the closing bell. plus why i'm calling what is going on today between home depot and macy's poetic justice. that is next. or what's trendin.
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charles: wanted to give you an update on the breaking news we brought you just moments ago that tiger woods has been hospitalized following a major rollover crash in california. we're getting fresh pictures of the major damage to his car, and his agent now says tiger woods is in surgery at this time with multiple leg injuries. fire crews had to use the jaws of life to get him out of the vehicle. he was the only one inside. well, last week we saw the
emergence of downward pressure, even negative internals in this market, and that's sort of snowballed, becoming more of a boulder. but, you know, some are saying maybe it's just overdue. i mean, obviously, the market pulled back from time to time, and when it happened, should you consider buying? let's bring in michael lee, michael lee strategies. first, let me just get your thoughts, mike, on what might be speaking the market right now -- speaking the market -- spooking the market right now. >> i think it has more to do with what's under the hood from an options perspective. we've talked about the gamma squeeze that was behind, i believe, the runup in gamestop. it's been pushing the nasdaq higher since march of last year when you called the bottom, and you've seen a reversal in that over the last week or so. but i think the economy's improving a lot faster than expectations. earnings have been much, much better than expectations, and
we've got so much liquidity that i think these are the opportunities to step in. charles: all right. so there's two things that caught my eye on social media today. hashtag buy the dip, hashtag stocks. so individual investors watching the show are probably with you. 40 how do you go about it? not everyone has endless amounts of money, so do you do that as you're pulling back? we've come off the lows today, is there a right time? >> yeah, well, look, when it gets ugly and scary is typically the time to buy. that's also the hardest time. but when you feel like the whole world's going to come to an end, that'styically when you want -- typically when you want to buy stocks. as we've been talking about the, if you're like me and you own some energy, you could rotate out of something that's been working and move into tech. i think the nasdaq is off, you know, dropped over 7% from its peak to trough. so i'd be looking at things like
that, biggest moveses down that you're still confident. there's been no real fundamental change, but the price has changed dramatically. charles: yeah. someone sent me an e-mail says should i sell amazon. are you nuts? the are you crazy? unless you're trading -- [laughter] i'm looking to buy those kind of names on this dip. what about the reopening trade? the irony, of course, is you got things like livenation already at all-time highs, but can they go higher? looks like folks are looking for instant gratification, whether it's big tech or something considered a value trade three months ago. >> you know, charles, just the nature of the market right now is that when a trade or a sector becomes in fashion, everyone runs for it right at the same time. and so there's been a lot of fast money being made, and now you're kind of -- days like today we see the other side of it. but, look, this reopening trade, i think, makes sense. i'm a little bit more skeptical on the airlines just because i don't see business travel coming back the way that the i see
recreational travel. maybe with the pent-up demand, people waiting for a vaccine, waiting for the nation to get vaccinated before they're comfortable going on a vacation -- charles: michael -- >> will paper over that. charles: thank you very much. you gave us a whole lot to consider there, as usual. you're one of the best. all right, we ap hand it over to liz claman, and i gave you a little bit of the cp effect, liz. you've got good momentum going into this last hour trading. liz: do not underestimate your power. the dow just climbed occupant of a 350-point hole. but do you send the ambulances home? rising rates knocking the wind out of the sails of the nasdaq, but it had been down more than 500 points. even moderna unable to escape the nasdaq's sea of red. we do have shares down about 7.5% at this moment. but in a rare television interview, one of the top three female financial advisers in the