tv Making Money With Charles Payne FOX Business February 25, 2021 2:00pm-3:00pm EST
♪. neil: all right. we are off our worst levels of the day. this has not been a picnic. it will be a bumpy ride i assume for the next couple hours. charles payne to take you through all of that. hey, charles. charles: neil, we'll try to smooth it out a little bit, thanks, my friend. good afternoon, everyone, i'm charles payne. this is making money. the tug-of-war continues today. the mayors seem to have the upper hand. the there are several invest messages with all the gyrations. we'll definitely try to navigate them all. gamestop and other short stocks are the big story again for me today with another wild surge with a reminder to the powers, this retail revolution is just getting started. my take on all this is coming up. republicans are railing against the two trillion dollar stimulus package ahead of tomorrow's vote, guess what, it is coming?
the next question is what happens next? i will ask republican congressman mark green of tennessee. getting our kids back in school. we have a live, d.c. school that says, the answer is here. plus the biggest reason for the gender gap, what can be done about it. all that and so much more on "making money". ♪. charles: all right. don't look now but the duke brothers are upset again. riffraff back into the market. and now the short squeeze saga resumes. the establishment spent the last three weeks running victory laps and chuckling over those silly reddit people. while i'm not sure why the financial media seeps confused about this spike, i've been writing saying, this is only the beginning of the individual investor revolution. think of more like the boston
tea party than woodstock. gamestop, heavily shorted stocks are smoldering, hinting from time to time they want to test the hedge fund again. the spike we've seen in the last 24 hours is lot more than a test. gamestop took off like a rocket, even when establishment halted trading 15 minutes in the session. opening up with a one minute left to buy. they wanted to limit the gamma buying there is a lot of guess why the move is happening. people are grasping for straws in the financial media. some point to a tweet or something that sent the stock lower. i think the biggest development came from the deposit trust and clearing corp., known as dtcc created in the 1973, when the new york stocking change trading volume traded 8 million shares t was too much. the system trades operates in 65
countries. dtcc moved faster when it moves to trading settlements. it is t-plus two, adjusted from t-plus 3 in 2017. when i got in it was t-plus five. because you need time for brokers to come in to pay for orders. this reduces cost savingses, market risk and lower margin requirements. it would mack it harder to short 140% of stock. the dtcc move could take two years, that there would be a positive development to browbeat these stocks a major step in the right direction. the joy exhibited by individual investors underscores they are in tune with developments. with tweets of ice cream cones. while it is not a changing of the guard. the message to the establishment that they have company. the individual investor yelling
turn those machines back on. two market proses always yelling turn the machines back on. keith fitz-gerald, courtney dominguez, payne capital management a group i'm not familiar with. keith, you are one of the few investment pros taken the individual investor the whole reddit investment thing seriously so what do you make of the latest round in this saga. >> number one, my hats off, i'm excited. the opportunity to make a fortune is never greater than today. i applaud what is going on. i think high time individual investors have the upper hand. i think it is great they are able to do it. charles: courtney, slamming of individual investors, stocks they own, bloomberg keep as list of all the stocks they own from march of last year, you can even add bitcoin there, they are trouncing the overall market and trouncing the market pros so i don't know why everyone is always ridiculing them. what are your thoughts on that? >> definitely really into some
speculative names right now. bitcoin being one of those you have to watch. i think this idea that they're looking for these companies that are really beat down really isn't that novel after an idea. that is what you should do as investors looking for good value out there. reddit seems to find those an finding upside potential. that idea is really not uncommon when it comes to the stock market. charles: let's pull it out to the larger market. investors, listen, we're spoiled right, it seems like any hiccup spooks this market big time. in fact you know, if you take a look at the spike in searches for stock market crash, over the last 10 years or so, it is crazy. courtney, of course markets do pull back. they even crash from time to time. what do you tell people, tell investors about the realities of the market? do they urge you to sort of guess at the tops and bail out when the bailout? i get that a lot pro people. is this top, should i sell? >> i get that all the time. charles i unfortunately don't
have a crystal ball either. i unfortunately condition answer those questions particular. i try to urge people to remember ups and downs are very normal to the stock market. timing can be a dangerous game. you want to make sure cash or safety available to take advantage of opportunities. last year was a great example. in march and april everyone was really nervous. people genuinely asked me can the markets go to zero. we were taking cash and buy being back in scary time and putting best foot forward. think, markets have never gone down, stayed down forever. look at those opportunities and make sure you're well-positioned. charles: meantime, anxiety, keith, we covered this almost every week when we first saw the turn in the 10-year yield. i don't know that it is 1.6% or the fact it is happening so quickly. what are you telling people right now? >> well you know this reminds me of the old adage mike tyson said, everybody has a plan until they get punched in the mouth. the problem win investors for
the most part not that they fear big down days, that they're unprepared for fear of big down days. to courtney's point you have a list, know what you want to buy, you have a solid time, when school of hard knocks pays off. buy low, sell high. that is how the game works. over time the markets have upward bias, you have to remember that even if tempting not to. charles: most viewers got the duke brothers theme. we're staying on trading places theme. the meteoric rally in reopening trades. keith ironically megacap stocks look like a deep value play now. >> i agree, charles. if you ask yourself what companies will you regret not owning five, 10 years out, that is how you make decisions on days like today. i would hate to be example, for example, repetitiously redundant, isn't it, hate to be
the guy five years from now gee i wish i bought apple today, but didn't or microsoft but didn't. the last thing you want to be is playing catch up five or 10 years out. charles: courtney, i have to give you props. late last year you were advising move away from overconcentration in megagrowth, megacap names, this weakness i guess you were anticipating it but what do you make now? irony people moved into the other names that were moving fast as typical tech stock although they don't have the tech stock as typical tech stock? >> i appreciate that kudos, charles. but our thesis stays the same. we don't do still own our megacaps. we've been making sure we been taking profits from those things, that they have done so well. we're making sure to add to large, small caps and value overgrowth and international and if you look past 14 recessions each time, value and small caps led that you want to make sure you are being proactive, making
sure you're taking advantage. each dip will be a little bit different, long term you want to make sure you're taking those trends. charles: keith, of course we've seen all kinds of gyrations in the last year, growth or value. more recently we've sign the small caps take off like a rocket, microcaps take off like a rocket, reopening trades getting back on profit-taking. where is the hot spot, the group, the crowd, look at next hot spot where rotation crowd may go soon. >> i think so. look where the institutions are feeling a little angst. you look where people aren't going. medical stocks in front of everybody, focused on the virus, what happens beyond the virus, taken all the knowledge, company like pfizer will learn from it. what they do with that when it comes to cancer treatment or engage in medical treatment five years out i think it is compelling. get point something percent dividend in the interim. 3d medical printing. people have not launched on the fact you can have titanium
spinal implants for surgery, grow cartilage or synthetic skin. computing power i think it is possibility we solve cancer in the next 10 years or so these are the companies that will go. medtronic is a printer i like. charles: as you were talking pfizer stock went to the plus column. looking at a gtech, way people are eating. i don't know a lot about it, i'm not a perfect example of that. the knew operation phase is the real deal. i want to be part of it. keith and courtney, thank you both very much. appreciate it. house law i can arrest are gearing up to vote on president biden's 1.9 trillion stimulus bill. it is coming, that is a fact. i will talk to congressman mark green. college an rolement is shrinking. maybe there is a general epiphany about college after all. we'll be right back.
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the question what happens after that? will it be the fight over minimum wage, about infrastructure? will the spending ever end? bring in republican congressman mark green from tennessee. congressman green, i read an interesting stat. republicans offered 286 amendments and democrats took two. is that what bipartisanship looks like these days? >> unity everybody is talking about, that's it, two amendments. crazy. charles: yeah. so listen, it's going to happen and then of course you know there have been whispers of $3 trillion in stimulus, infrastructure. let's be honest, after what happened in texas that will be an easier sell so you know what do you tell folks about all of this spending that i'm sure a lot of it you think is overdone? >> there is no doubt, we still have a trillion dollars from the cares act that hasn't been spent yet. all of these, you take the
stimulus checks to individuals, only, 15% actually goes to spending. most of it goes, going to go into the market really because rates are so low, powell reaffirmed they will be low and we're talking about negative downstream effects of that. one of the things liberals often forget are the secondary, tesh airplanery, effects something. something thomas sowell introduced to me. i didn't think about. think about downstream effect. 15-dollar minimum wage, downstream effect is automation, less enemployment, puts people back on the government dime which increases debt more. it's a terrible cycle. pretty much everything they're doing is, just not making any sense. charles: and of course we know that all of this is deficit spending. then when it is all done we'll come promotion for taxes. you know, i just haven't read anywhere, outside of moody's, i got to be honest i think mark
zandi is more after democrat than economist. i'm not trying to diss sim, all the reports about higher taxes point to deleterious impact on our economy. should we brace for that soon? >> if you're asking me about their corporate tax increase, that doubles down on you know, decreasing the actual number of jobs out there. it also decreases the dividend. all the money flowing into the market, relative value of companies are going down because of taxes it worsens the potential for a bubble. they just can't add two plus two plus two and get six. it is really absurd. charles: do you think, anyone in the administration looks at the market? chairman powell of the fed was working overtime, my man was sweating the last two days on capitol hill trying to convince everyone he can contain all this. obviously the market is not sure. they're testing him. i would suspect ecb and fed does
something really dramatic soon, capping yield or negative rates. do you think anyone in washington is looking at the market as some sort of canary in the coal mine or treasury yields as the canary in the coal mine? >> i think unfortunately what they're doing they're banking on where the market is today to make decisions ultimately that will hurt jobs in the future. so you if look at both the increase in corporate tax and the increased minimum wage, those have negative impact in the future on employment as we've already discussed. i think they're using the market to help justify that as some kind of confidence measure on their part. i think is a huge mistake, charles. i just, i'm very concerned about that. charles: congressman green i enjoy our conversations anyone that can reference thomas sowell is friend of mine. you too. the flood of stimulus is about to send the american consumer to the rescue.
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charles: the american consumer about to get a massive jolt from president biden's $1.89 trillion replan we said about a done deal. look at impact on consumer and economy. look at credit balances have come down. many used a large chunk of $3.5 billion handed out to pay bills. household debt servicing payments to disposable income is at the best level ever. let's bring in ledge enin retail analysis, with us, jan rogers.
great seeing you. you look fantastic. let's talk about this for a moment. once we get this economy reopened we've seen credit card bills paid down. we've seen debt bills paid down. people will be flush with almost two trillion extra dollars. how explosive will that be for the retail industry? >> actually already been explosive. look in january, retail sales up 12 1/2% ex gas, auto restaurants. my kind of retail wept crazy. why? 600 bucks in their pockets. as you said already very healthy balance sheet. savings rate all-time high i think. it just looks like a really, really strong consumer. the only problem the consumer has there is no place to go. shortly there will be. when they put the 1400 bucks in their pocket again, retail sales are going crazy in april for sure. and about april, we're very likely to hit herd immunity f we
do, party, party, roaring 20s. we'll see retail sales, we saw retail sales in january i never seen in the 50 years i've been doing this. it will get better going forward. charles: wow. to your point, january retail sales to your point, it blew away wall street estimates. something stood out, i want the opinion. furniture up huge. sporting goods is killing it, department stores, they have been calling for the death of department stores for 30 years. what is up with the trend, will they continue? >> yeah department stores were only down 3%. best year they have had, best month they have had in a very, very long time. and all those other categories you said were up dramatically. we're about to see that rotation happen because discretionary retail is what will roar starting in april. these department stores, if you're nordstrom, macy's kohl's get better. now the stuff they will sell is
stuff people want to buy. they will go to garden parties, sports events and dinner inside and outside. they will need clothes to do that. they haven't bought any in a year. in april she will look for in her closet i hate all this stuff. i have places to go. i can't believe how strong it will be in accessories shoes, cosmetics, things like that. charles: we have dillard's on the board it is an absolute rocket ship. i remember for year it was "countdown" it would go out of business. she may not like what is in the closet but he won't be able to fit anything in the closet. i want to ask you about omni channel. looks like we're getting next development beyond omni channel. disney, ulta, levi's straus, is this wave of the future for retail? >> we've been through omni channel. we've been through multichannel. now we're at digital or physical. either buy it online or don't,
how you get it any way you want it. drive up to pick it up, sent to the house, sent to your office, sent from other store. sent from a distribution center. we're digital and physical. the digital is taking over. it hit 21% of retail sales in 2020. it is not going to go back down just because the stores open. it is going to continue to go up. it is never gone down in the 20 years that we've been tracking online sales. we're going to see another strong year. it won't be as strong of growth as last year but it will be growth and so we're in the era now of you buy it somehow and you get it from a store or from a distribution center. now it all looks like sales if you're a retailer. 95% of what target sold last year digitally came out of the store. didn't come out of a distribution center. charles: like amazons of the world. that is how you compete with amazon. >> biggest competitor for amazon
right now. pardon? charles: jan, thank you very much. always pleasure to talk to you. no one knows this stuff better than you. after more than doubling its revenue in the last year, coinbase filed its s 1 this year, folks. they will do a direct listing, set up an ipo to go public. susan li on how big of a deal this will be. susan: coinbase has filed to go public on the nasdaq. yes a direct listing which means they don't raise any new cash. it is more a way of early investors and early employees to get out. no dates when this will take place but we've been talking about it for some time. coinbase is one of the rare unicorns in silicon valley making money. 22 million in profit last year. doubling in sales as you mentioned. 43 million verified users, very enticing stats for wall street to buy into. if it goes public at a valuation
of $100 billion that would make coinbase one of the most valuable companies to go public on the markets since facebook back in 2012. so coinbase could be going into the day one debut worth more than airbnb and doordash and more than what uber bass valued at when it went public two years ago. couple interesting details in the s one filing, brian armstrong was paid nearly $60 million last year. big hedge funds and venture fund as horowitz global are backer of coinbase. some of the risks to coinbase listed to potential investors that bitcoin prices could go down. there are cyber security concerns about hacking. we know a lot of high flying unicorns have decided to go the direct listing route including spotify and palantir. they're concerned that the ipo process is broken, only benefits big wall street money, turn around in 24 hours make 100%
plus instead of valuing employees and early founders who should be rewarded. charles: susan, great stuff, appreciate it. i want to bring in from nicholas wealth management david nicholas. david, you heard susan, this coinbase ipo sounds like a grand slam a profitable offering. like sighting of a dodo bird. i will say shamal put out a tweet that he thought folks would get too greedy and he is not going to touch it. i'm torn, before i saw the tweet before i would be a buyer. where do you stand? >> i like the stock. i'm possibly a buyer. i want to see where it finally ends up. you can't argue with revenue. revenue more than doubled last year. user growth doubled. every metric for pricing this thing is pretty amazing. obviously it is directly tied to the price of bitcoin. obviously volatility is there it will affect the valuation but
volatility bitcoin is actually good for coinbase. because they make a commission every time one of these coins is bought and sold. the more this price moves around, more buyers and sellers you have the more money coinbase makes. i don't know, charles, i like it. i'm very interested. we'll see. but i think i will be a buyer. >> i'm still a lilt upset. i tried to open a.case account when bitcoin pulled back to 17,000. i spent half an hour messing around. maybe it is me. i'm not the best person when it comes to the stuff, cost me a little bit of cash. maybe he get discount insider price. let's stay on this top pick. yesterday charlie monger of berkshire hathaway had choice words for many trends in the market including bitcoin. he said bitcoin reminds me of what oscar wilde said about foxhunting. it was pursuit of the uneatable by the unspeakable. what is your thoughts? is charlie monger getting something wrong here because i think you like bitcoin? >> yeah. it is hard to disagree with charlie monger and even warren
buffett right but i think they're discounting the amount of liquidity in the market right now. when you talk about some of the numbers, talk about 3 trillion in stimulus, another two trillion this year, valuations essentially don't matter. they are the valuation kings. so when you talk about bitcoin they're looking at it, is it going to replace transaction currency. i could agree with him there. i don't think bitcoin will replace the dollar or replace currency globally but it is an asset class people find value. i don't think it is going away. i like about it coin, obviously it is an speculative investment. they are underestimating how many institutions and individual investors bought in and believe bitcoin has staying power. that is where respectfully i think he is wrong. charles: we just had jan nefin a moment ago. i'm pretty sure you heard him. we were talking about the consumer already set up pretty good with the balance sheets, already spending a lot of money ready to get more money.
reopen stocks were profit-taking which was simply overdue, when the money hits where do we buy? how do we take advantage as investors? >> look at airlines. we booked some profits yesterday on southwest. we'll look to get in another position. walk in retailer names. you mentioned a few earlier. academy sports, a name i talked about before. really big in the southeast. that is a great play. tap, coors, look at valuation on this thing. 10 times forward p-e. there is so much value built into a company like tap i think you can't go wrong as restaurants get back open, weather gets warmer i think it will do well. vista outdoor, ammunition maker. a little bit after contrarian reopening play. there is value there as well when you see happening in the ammunition market, outdoor gun ranges and the like. sporting goods names, names like tap, i think there is value. ha is what i'm looking for in a reopening play. charles: david, great, thank you
very much. enjoy you on the show. >> thank you. charles: parents as you know, maybe you are a parent, so you really know are fed up with remote learning and demanding their kids get back in the classroom. fox business is at one d.c. school that says it has the answer. the pandemic exposing the gender wage gap but a new study pointing out there is a much bigger issue for unmarried women. so how do we fix it? next. ♪ ♪ ♪ ♪ ♪ ♪
♪. charles: parents and school districts are searching for ways to bring kids back into the classroom. friendship charter schools in washington, d.c., are part of a pilot testing program and are able to bring a few hundred students into the classrooms across the united states. one of those schools where test something taking place is friendship's bo pierce elementary. where we find our own edward
lawrence. edward. reporter: charles, getting kids in-person learn something a very big priority here and they have done it for the past six months or so, since september, four-day as week through masks, also testing as well as washing their hands and six foot distancing. each student get as test every week here at friendship blow pierce elementary and middle school. if there is a positive covid test the friendship public charter school system has very specific actions that it takes. >> we then shutter the learning pods so our schools have set number of pods and the individuals in that pod, may have had contact with that student or staff member, they quarantine for a minimum of 10 days. whether doing hospital grade deep cleaning of space, after the quarantine period the individual are tested again. reporter: the charter school system made the decision it is
better, much better for kids to come in-person learning. they get the interaction with each other plus it helps parents need their kids in school so they can work. modeling estimates from mat mattic report found weekly testing of students could reduce school infections by 50%. plus it helps teach kids about being covid safe. >> you know we're telling them don't shake hand anymore wherever you go. groceries or outside, just you know, keep social distancing you know, maintain, just keep safe and always sanitize your hands keep on your mask at all times. reporter: do you feel like the program is working? >> it is working very well. reporter: over the last six weeks this charter system has done 261 tests. they had zero positive covid results. back to you. charles: wow. edward, thank you very much. of course we know the pandemic shutdowns and work from home situation has been a real big negative impact for women in the
workforce in part because they have to also become teachers as well. now, there is a whole lot of those numbers of reasons for that. we're hoping maybe that adjusts itself quickly as we reopen. there is a study from the kansas city fed points to a much larger issue and this is for unmarried women. to explain why this is major problem, perhaps how society could address this situation. i want to bring in walser wealth management rebecca walser. rebecca, the federal government, federal reserve spending a lost money, spending billions and billions of dollars. they're trying to fix things like income inequality. they are trying to specifically help women. it is unmarried women are the furthest behind. are you confident that the way to address this is to have the federal reserve print more money? >> setting me up with that trick question, charles. i don't know how we ever seen so many fed studies so fast about all income inequality, gender
inequality. absolutely a woman, as career woman i absolutely want the gender gap of wealth and income both closed but the question is, is this an appropriate role for the federal reserve? shouldn't it be more appropriately addressed by congress and elected representatives? should it be addressed by government at all? as a boy is born should we say minus 30% whatever your future wealth is because you're a boy? life isn't fair, charles. i want to tell you really fast, i looked at this study, and if you look at it, they have to adjust for age, children, race, ethnicity, education, income, homeownership, inheritance and employment and financial risk-taking. those are all factors we take into consideration when we start down the road for government involvement. it is impossible to start. charles: you know, one thing that i have noticed forever in any of these kind of studies is, no matter what race, no matter what gender, when you're married, your chances of success
are exponentially better. maybe it is an old-fashioned thing but economically it really does work? >> it is typical. that is the design that we all started with. somewhere gone along the way a different route. charles, marriage is the most financial stablizing factor anyone can do in the history of their lifetime. so you're 100% right about that. charles: i want to tap now into your investment prowess there. because, you, i consider you like an investment purist. i want your thoughts on a comment made today by jim grant, quote. to suppose that the value after common stock is determined by corporations earnings, discounted by the relevant interest rate and adjusted for the marginal tax rate is to forget that people have burned witches, gone to war on a whim, risen to the defense of joesph stalin and believed orson welles when he told them over the radio that martians had
landed. so is it time to admit on the short-term basis stocks don't always move by the old school formula? >> it reminds me of alan greenspan's irrational exuberance comment. jim is right. he has got a point there are times we make irrational decisions, and we should look at that, but obviously charles we believe fundamental analysis is the name of the game long term and long term the market makes efficient decisions. yes we can have some short-term irrational exuberance for sure. charles: by the way i listened to that war of the world thing from orson welles, it was scary as hell if you were back in the day. you would have thought the martians are coming. >> take the picture in your mind, you had to picture in your mind. it is more scary. >> absolutely. college attendance hitting its peak couple years before the covid pandemic, it was shrinking. so why? we have the perfect person
helping us with that. kristin tate will weigh in right after the break. ber commercials with exciting stunts. so to help you remember that liberty mutual customizes your home insurance, here's something you shouldn't try at home... look, liberty mutual customizes home insurance so we only pay for what we need. it's pretty cool. that is cool! grandma! very cool. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
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up 4%. traded 10 million shares. normally trades eight. we'll get back to you. in the meantime we're seeing more and more signs americans are skipping college, including a report from the federal reserve. the pandemic played a role in last year's decline, really feels like there is an awakening to the true cost especially if you have the wrong degree. even overpaying if you have the right degree. bring in young americans for liberty kristin tate on this. kristin, you long warned this was going to happen. you talked about this. what are younger adults seeing now that is making them change their minds? >> this trend is much bigger than the pandemic, charles. increasingly young people are beginning to realize they have been sold a bill of goods by the education system that failed them. we talked about it on the show many times. young people have been encouraged to bury themselves tens of thousands of dollars in debt for degrees often not really a good return on investment is it worth taking out 100 to $200,000 in loans
plus interest for a liberal arts degree? for some students the answer to that question is going to be no, especially consider the average salary in the u.s. for english major graduate is $43,000 a year. there are alternative paths to college that can be more lucrative and we are increasingly becoming a skills-based economy where what you know, how you use it, how hard you're willing to work is almost as important or in some cases more important than your college degree. charles: yeah. i'm glad, by the way i'm glad that is the way it is. i think elbow grease, worth ethic, all these things matter. now yesterday he seemed to take offense at elizabeth warren. it was a tweet she put out calling for cancellation of $50,000 in student loans. she claims that it would lift a huge burden from the same communities hardest hit by the pandemic. so you're calling foul on this. what is she getting wrong here? what, she obviously is
stretching the truth but, she hasn't stopped. >> canceling student loan debt is a catch think bumper sticker slogan. it is very fashionable for lefties to call for this right now but it would largely be a wealth transfer from taxpayers, which include minority communities and blue-collar workers to middle and upper income earnings. we know from federal reserve statistics student loan debt is held by upper middle income workers. this would be disasterous policy rolled out. not to mention very insulting people who didn't go to college because they could not afford it. those who paid off their loans quickly. veterans to went into service to get a free college education. neil: charles: it so nuts they keep pushing this. the way they push it is offensive. >> yes. charles: i want to get this in also because the federal reserve posted a really good paper, people should read it, a need
for general purpose central bank currency. here is janet yellen the last two weeks she has been pounding the heck out of bitcoin, taking shots at it, used for organize crime. but federal reserve will have our own bitcoin. how do you reconcile these two things? >> janet yellen continue tosses disparage cryptocurrencies because they remove currency control from the central government and implies they are dangerous and need regulation and the suggestion of a digital dollar pushing this idea it will satisfy the demand for cryptocurrencies. people are not buying cryptocurrencies because they want a digital currency. they are buying digital currencies like bitcoin because they believe the u.s. collar will fall because of out of control federal spending. important to consider privacy concerns about digital dollar a centralized digital currency would give the central bank urn precedented amount of access
into transactions and detail into transactions of all of its users. there are a lot of questions to be asked here and red flags that are coming up. charles: i will put you down as a maybe. kristin, thank you very much. >> thank you, charles. charles: see you soon. there are a ton of high-profile companies releasing their earnings after the close today. should you be buying them ahead of the closing bell? we'll help you with that. we'll be right back. ♪ de. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪♪
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charles: all right, i just mentioned hewlett-packard, hp if, shares are halted this hour. we're being told, quote, it's for news pending. in the meantime, folks, we're in the end of earnings season, but we've got some big names reporting. in fact, it's been an amazing week overall for the markets. the most intriguing thing is that we've sort of, you know, we've made this big move, and we're seesawing back and forth. the rally is has seen wave of ar wave of selling, each session except for today so far climbing off the canvas. we want to find out what's going on, is there something more to these jitters, so we brought in the man himself, rob luna, and before he even get started, got to give you a shout-out for being named the best in-state adviser by "forbes."
what's your general thoughts about what's happening right now? >> yeah. what i think is going on right now, charles, is the blossoming of the move on the 10-year, that creates uncertainty. it spooked the market at all time highs. we've only pulled back 2% on the s&p, 6% on the nasdaq. investors need to looked at technicals right now. we're at the 50-day moving average. they need to be prepared for a break down to the 200-day moving average. that's going to be a correction of about 14-16%, but it still keeps us in a bull market, and if you're investing now, you have to be ready for that real possibility. charles: i know. but there's a lot of folks who ain't ready for that -- [laughter] although i will say last march when the market was crashing and all the experts said head for the hills, it was the individual investor that bought the march 23rd low. and i can tell you right now more people are asking me when to buyen than when to sell. let's talk about what's going to happen after the close. if you can help me, let's whip
through them. salesforce. >> yeah. i like salesforce. this is a long-term enterprise play, biggest crm out there. i think this is a company you can buy on the pullback. again, i'm not a big fan of i buying options on expiration dates, so i don't know that i'd jump in right before earnings, but if you get a pullback, that's when to jump into it. charles: crm systems management, the granddaddy of 'em all. airbnb. >> this is the future. again, an opportunity to jump into this. it's at the 50-day right here, so if you want to nibble at it, but again, 15% to the downside, be prepared for that if you're going to get into it long term. charles: i'm up huge in etsy, so i'm not sweating that, it's down 4% today, but we have seen a lot of these great names no matter how much they beat go down a little bit. so real quick, etsy and beyond meat. i've got 20 seconds for you. >> yeah, i like etsy long term same as with airbnb. i'm a qualitative analyst on our
board, charles, the beyond meat9 i just can't get my arms around. it's horrible tasting, it's not good for you. there's a lot of good alternatives, something i would stay away from. charles: all right. i am looking into plant-based, i agree this might not be the right one. rob, congratulations again, my friend, that is a high honor, indeed. for a split second, liz claman, we had the cp effect. we actually sawed into those losses bigtime, but at 2:30 we turned down again. it's going to be a crazy last hour. i can't wait to see your show. liz: in fact, we are looking right now at that 10-year yield continuing to climb. look at this, charles, 1.518. so 1.52 right around the corner? you got to stay with us. charles, thank thank you. breaking news, investors are turning tail as we head into the final hour of trades one day after the dow hit its tenth record of the year, the blue