taylor: let's get a look at it has been all big tech all the day here. meanwhile i want to take a look at some individual movers we're looking earnings tomorrow. dollar tree, all about the consumer this comes after we heard from other customers saying food, gasoline all pressuring the customer. how does dollar tree react to that. jackie's pair of the, petco. they did not have a good report last november. you were not buying enough dog food. are you going to turn it around. jackie: fry, always eats, she eats farmer's dog we won't buy from petco. i'm surprised the cpi number didn't have impact on the market given it might take longer for the fed to cut. maybe that was baked into the cake. taylor: good conversation here. "making money" starts with charles payne. charles: maybe they don't think

about the fed anymore. all engines go. thank you very much, i'm charles payne this is "making money." forget taylor swift, folks, this stock market taking their cues from '60s rock and roll. it is loud, uninhibited and infectious. it is easy to get lost in the groove and you can make big mistakes but the big one is not being in this market. bob doll, ed yardeni, they will tell us what they expect. shah ghailani is sharing what he buys on dips. the the pedestrian approach still workss in this environment. nicole has a plan. rand paul taking on president biden's $7.3 trillion budget. something tells he doesn't like it. you don't want to miss "my take" way on the widening dills connect between the wall and main streets. all that and more on "making money." ♪. ♪ you know that it would be untrue, you know that i would be

a liar -- charles: you remember that. that is a classic, right? so in the i the in immortal wors of jim morrison, you know it would not be true, i would be a liar if i told you we couldn't get much higher. don't tell that sew the stock market. touch go back to the summer of 2021 to find names trading above, above their 200-day moving average. i've been talking about this for a while. we were worried about it, even though the market was rallying we have fewer participants. more and more of the market is participating that is a good signal. the s&p 500 is based on market camps the equal weights makes all stocks even. look at this, this is a major breakout, folks this is a breakout that can move on itself and build much, much higher. it is extremely cheap compared to market cap stocks. then there is the mid-cap.

really, this has been interesting. look at this, how many weeks it has been, nine consecutive weeks, the index, mid-cap index has traded higher. it has been a little stealthy. it has come out of the shadows. this morning we had hotter than cpi report. maybe a nanoseconds, maybe a second we went down. all of sudden we turned around every time we go down the buyers pounce. i'm calling this a psychedelic rock and roll market and technology is the electric guitar. i want to bring in research yardeni research president ed yardeni. we're talking psychedelic rock and roll this is the perfect chart. light blue, technology. a lot of folks say this is a negative chart, the overweighting of technology, and over presence technology but it is what it is, right? why fight it. if you have a choice to sit it out and fight it why fight it? >> i think you're absolutely right. the phrase it is what it is

particularly appropriate to this market. there have been a lot of people saying it's too narrow. they have been saying it's only a few stocks leading it up. they have been saying the valuation multiples are too high but what it is what it is it just keeps going up. charles: the title of your note yesterday is broading bull. i want you to explain to the audience, when the bull broaden, what does it mean for the rally? does it suggest that the legs are longer it could go much higher? >> i think that is absolutely correct. i think it can go much higher. i think all along it has been actually a pretty broad bull market. just some stocks have done a lot better than other stocks. a lot are up 20% or more. it happens to be quite, quite a few, not as many that are up by 40% or more. so on a relative basis when you take the s&p 500 market cap weighted and divide it by the equal weighted it looks like the

ratio is going up which suggests it is getting narrower but i think it is just because some stocks have done a lot better than others but all in all this is a great bull market. charles: of course that brings us to the really tough question. i'm on the sidelines, i'm in, but i want to get moring a aggressive. you posted this great table. by the way everyone should follow you on twitter, everyone should get your research? >> thank you. charles: march 12th through march 11th, october of 2022 you called the bottom. one of the few that said that was the bottom. so the action has been pretty wide. on the top we've got the nasdaq 100 up 64%. on the bottom you have the dow jones does industrials, utilities rather, up 3%. here's the question. do you start taking money out of here putting it down there? how do you start to rotate this cash? >> as the chart shows it is only one with a shingle digit increase over that period. all the rest are double-digit increases. i would focus on a broader market index instead of just

focusing on the s&p 500. i would go for the s&p 1500 which includes small caps and mid-caps. i prefer the s&p 600 as a indicator of the small cap action than the russell 2000 because the s&p 600 has more companies that actually have earnings but i think we're going to see the mid-caps break out here following the lead of the equal weighted which is following the lead of the market cap weighted. >> by the way i should point out, folks, your megacap names total return they're really not, they're down now to the top five. before i let you go, we could get lost in this excitement, right? when you get a little heady, you start to lose a little bit of your discipline. what is the one thing people should be on guard for? >> i think watch what the fed does. i think fed chair powell signaled that we're not far away from declining interest rates and i think the longer they hold

off on raising interest rates the better it is for the stock market because the risk here is that if you think it's a melt-up now wait until you see what happens if the fed starts lowering interest rates too soon. charles: all right, well, for right now wall street is like who, the fed, who? never heard of them. ed, thanks a lot. appreciate it. >> thank you. charles: so my next guest, his firm just got a strong sell signal through their proprietary research. i want to bring in long view economic research economic strategist, chris watt link. chris, first and foremost i've been a fan of your research for a long time. your equity research, it is flashing a strong sell signal. listen, there are a lot of signs like this. certainly a lot of sense that the market is overvalued. walk through the audience why this is important? >> yeah, charles, great to be on the show. i mean it's a pretty good

indicator. it's not going to give you the month by month timing but give you ballpark where the market is and what we're looking for is an indication of an extremely overvalued market relative what we think it should be. that is when you start getting these strong sell signals. interesting as you can see on this chart that is the first time it has gone into sell pre-financial crisis in '07, 08, 09. pretty good, it kept you in the bull market for a long time, the last 15 years it has been this abouts. it is time to say things a are a little stretch. another way of unpacking that you get a pretty good yield on fixed income these days. that's what we're up against. risk-free return of fivish. sure if the stock market goes up 20, 25% who cares, but on an earnings basis it is looking a little pricey. charles: i was going to jump in for the audience because traditionally on a 7, 8% return

with risk, 5% risk-free looks pretty attractive i want to point out something else, because you put out a lot of work. i put a few things to help us with, nfib, that business report got overlooked this morning. we have the cpi. we're showing, you pointed out sharp declines overall economic trends. these are small businesses. is this a leading indicator or how worried should we see with the nfib and other smaller indicators? >> i think there are real risks. most of the jobs are created by small and medium-sized businesses so when someone like the nfib, a survey of small and medium sizes businesses that less jobs are getting created, trending down, that is a red flag for recession. bull markets end whether you have to price in recession. i'm not saying that is our central case of recession but there is definitely some cracks emerging and that one this morning i think was really pretty troubling, and actually is probably why cpi was put to

one side. the other thing is worth mentioning about the nfib, if you look at the pricing plans in it, that's one of the reasons wall street has been getting excited about potential inflation but actually today it rolled over and went down a bit. so actually that was kind of offsetting the cpi, the bad cpi report we gotten you know, i think the focus should be on the labor market now. charles: right, right. listen, ism services and manufacturing were both ugly prints. the jolts report wasn't great. you know there are some signs in the jobs market but every time these reports come out the first thing wall street and financial media does is put out the pom-poms. that is why we need work like yours. i can't let you go yet. you're in favor of folks increasing gold weight. we have gelled chart. monster breakout. a long way to four breakout. you say buy on weakness or dips. this is not really a defensive move, right? you will not have a 3 to 5% hold

here, you want a big chunk of this. you're looking to make money with this? >> oh, you bet, try some of the gold miners as well this is a prays that has gone sideways for three years, really 3 1/2 years since august of 2020. it tested that 2050 level about three or four times and now as you said it is really breaking out nicely to the upside. of course gold loves rate cuts. that is what we're going to get. we'll start getting rate cuts the next few months as the fed starts easing off on those interest rates. it will be great for gold. investment demand will come back into the market. as i say those gold miners they will start creating a lot of cash. they have fantastic operating leverage once the gold price starts going up, their margins expand wonderfully. i think gold is really, really interesting here on sort of three to 12 month view. charles: chris, thank you very much. great work, keep it up. we appreciate you coming on. >> thank you. charles: all right, folks there is a bill to ban tiktok, it is

heading to the house floor. president biden said he would sign it up even though he just signed up for it. my next guest says signing it would be a actual huge mistake. rand paul is with us in a must-see interview after this. ♪. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... 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.

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and we could all un-experience this whole session. okay, that's uncalled for. charles: all right so yesterday president biden unveiled a $7.3 trillion budget that looks to me like an expensive blueprint to expediate america becoming a european nation of open borders, massive welfare and dearth of innovation of economic growth. joining me now kentucky senator rand paul. senator, thanks for joining. the budget is runaway spending, taxes 290 billion to house immigrants, the things you warn about forever and offer. are you shocked about how brazen is, this election comes down to whatever the election you want it to be? >> if you like inflation now, you like your grocery bill up 20% you will like it even more because it means more inflation will come. it is fundamentally sticking

your head in the sand to think higher taxes are good for the economy. the reason we're doing fairly well now because of the tax cut of 2017, passed by republicans, passed by donald trump but there is a fundamental difference between the parties. joe biden and the democrats think if you tax business somehow that is going to be something that we survive and it won't cost us jobs but it will cost jobs. inevitably you will have economic malaise and you will have loss of jobs if you raise taxes on corporations. so i think it is a very much a misguided blueprint and i think it will be dead on arrival here. i don't think we'll let it happen. charles: and i know, i'm glad of that. we're all kind of relieved that is the case. you may not always be in that position. i wish i could agree that everyone on the democratic side thought that this would end up being a positive. i feel sometimes it is punitive, not even a real economic plan but something to punish a war on capitalism. so let me shift gears here a little bit. president biden said he would

sign any proposal to ban tiktok if it landed on his desk. of course he just opened a account on tiktok. all the double take aside, because everyone seems to be doing that, you say no ban. why are you opposed to this? >> well there is little thing called the bill of rights which is an impediment. 180 million americans use tiktok to express themselves. you will tell them they are not allowed to do that away, take the company away, destroy the value of the company? the fifth amendment of the constitution says you can't take someone's property without due process. 60% of tiktok is owned by international investors. you will just take their investment. what happen to the investment they get to the he deadline they haven't made the sale? the deadline all the value of company is gone. if you don't like what they do on tiktok, facebook, google, don't use them. all of these information, all internet companies take up information.

i think if you destroy tiktok you may well make its competitors bigger. some of the people up here lobbying to destroy tiktok are actually their competitors so this isn't just about oh, we're against communism. if you don't like tiktok don't use them but realize that in china they banned tiktok. so we're going to somehow defeat the chinese model by becoming like the chinese and banning tiktok here? look, people should use them or not use them. that is what happens in capitalism. charles: i mean that is a whole different question or sorry, right? why the hell are we spilling our guts all the time? that is a whole different story. i have a couple other things i want to talk to you about, anti-lockdown vaccine skeptic martin said he was fired from his job as harvard professor. he wrote harvard tramples the truth, that vary rid taos is not one of the university's guiding principles. it is one of your guiding principles. americans are looking for answers include being money received by big pharma.

where do we stand? will weigh understand what happened? >> martin caldorf is a hero, spoke truth to power, for that harvard who used to be in believe in the truth got rid of him. it shows how low harvard has sunk. he was one of the truth tellers on this. one of the things i got passed out of committee, we're hoping to pass it, make it a law, all scientists work for the government should reveal the royalties they get. we're not clear whether people approving vaccines and approving mandates on vaccines, whether or not they received money in the form of royalties. anthony fauci told me it was none of my business and none of the taxpayer's business and he didn't have to reveal his royalties. they should all have to reveal their royalties. if you have a conflict of interest you shouldn't vote on approving vaccines or mandates, if you own part of the stock or making money from the stock or you're being paid royalties. >> before i let you go i got to get your thoughts, latest on

efforts to audit the fed. the federal reserve gets larger and more powerful every single year. wall street happenings on every single economic data point hoping that jay powell and company becomes more a accommodative. no one cares how they're flooding the zone. no one cares about inflation. on wall street they welcome it, stock prices go higher. will we ever audit the fed? >> you would think transparency would be an easy vote. we had a vote couple months ago we got every republican except for three and a two democrats. i hope for the day that democrats believe in transparency again. we got democrats on royalty bill for big pharma. i want them to get on transparency bill on the fed as well. the fed asset sheet is 8 or $9 trillion. i think it is funny to call it an asset sheet. they own debt by printing money. they bought debt with created money. we should own who own is it and what do they own. if somebody's brother-in-law has

a bank that is going bankrupt, the fed bails that out, they don't bail out somebody else's banks shouldn't we know all the details of every bank being bailed out or not bailed out? during the last crisis some banks got bailed out, some didn't. it seemed to be somewhat arbitrary. at the least which ought to know what the federal reserve owns and what they're buying. doesn't have to be real time, we need a look back, look back in time so it wouldn't affect the marketplace. people knowing that you're looking at their books, chastens people and makes them behave in a better way. charles: the fact you are not able to audit the fed tells you who really owns the fed, who they're accountable to. i got a tweet from jl, please encourage senator paul to run for majority bleeder. have you considered it yet -- leader? >> if we can change the election to be online. i'm doing great online. i got 97%. we did a vote between myself and two others and we had 168,000

votes online, i killed it online. if we get the vote online i would have a chance. we'll see. i am rooting for there to be a cover serve tiff alternative to the establishment. the election will take place privately among 50 of us. hopefully maybe 52 of us after the election. there is a lot of discussions going on. i'm hoping there will be a conservative candidate. charles: a lot of people i know are rooting for you as well. senator, thank you very much. always appreciate it. >> thank you. charles: it is possible that "the magnificent seven," listen to me, it's possible that they're undervalued. i'm not saying that. a wall street megaanalyst is saying that. i will ask my next guest right after this. ♪. the best advice i ever got was to invest with vanguard for my retirement. the second best? stay healthy enough to enjoy it. so i started preparing physically and financially.

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charles: so even as this market continues to smash records the fear and greed index has actually moved out of extreme greed. so here you have extreme greed. you would think, wow, with all, you know, the hoopla we would be somewhere here but look where we are. this is still considered greed but a week ago we were 78 which is extreme greed. a month ago we were at 78. the good news, maybe, because this is a contrarian index, a year ago we were big-time fear. interesting where the higher the market has gone the more that has come down. that feels counterintuitive, so does this. even though we feel like we're up there, everyone is comparing

this to the tech bubble i got to tell you these are mentions of stock bubble in the news. of course you go way over here with the chinese crash, wow. you got of course the meme stock mania, stock bubble, stock bubble. but right now a tiny, tiny uptick. not a lot ofries on this in the news but there is something that you have to understand, the sentiment indicator. this measures across the board retail, institutional and foreign investors, how much they're in this market. anything over 1.0 is considered stretch. we're 1.4 now. some think that's a sell signal. bring in man ward press, chief investment strategist, shah ghalani. shah is it starting to feel like mardi gras and if it is should we just dance to the music? >> as long as the music is playing you know you keep dancing, that is the bottom line, charles. yes, things are starting to look a little frothy a little overbought certainly in sectors. tech and consumer staples i

think are getting a little overbought. there are a few other areas that are overbought. communications are overbought. doesn't matter, these sectors can still go higher and still lead the market higher because of the underperformance of managers, money manager and mutual fund managers who have missed this rally. they're going to have to continue to chase the market. yes, we look a little fluffy. doesn't mean we can't go a lot higher and steadily so. charles: right. >> at any point, my thesis here you stay in the game until you actually see the market reverse. charles: you know it is interesting that you mentioned these experts, the pros, right? because on one hand jpmorgan, i think their strategist has the lowest target for the s&p. still not a believer but you have jpmorgan analyst is actually saying "the magnificent seven" are actually undervalued, undervalued to the rest of the market. i mean, do you think there is some truth to that? >> yeah, there is some truth to that. the market multiple that investors are willing to put on

some of these stocks is pretty reasonable. even if we're talking about 45-x on a p-e basis which sounds high. you look at the potential earnings of some of these companies, nvidia, for example, probably the best example. you apply -- i put something more like a 50-x multiple on nvidia's potential earnings. which means that stock probably can double from here. so yes, there is a lot of insight that people are missing in terms of yeah, how good are our companies earnings and what are investors willing to pay up for those earnings? in that case no, we're not, i don't think we're not expensive. charles: right. >> some stocks are. i think the ones that have gotten beaten up like tesla got very expensive relative to its earnings potential. even apple's earnings potential has taken a bit of a hick, hence the stock has underperformed. the stocks underperforming are getting tamped down a little bit. charles: three trading ideas you're looking at google, nike cron and path. talk to us about path.

i don't think the audience knows this one as well. pata, this is an automation play, this is 13 1/2 billion dollar market cap company which has a really tremendous balance sheet, very low debt on the balance sheet relative to its cash position. it is automation, robotic side of things, a.i. application. looking into back end systems how to automate them better using a.i. i like what they do. they're not profitable. i think the next two quarters they will turn profitable. i think investors will notice them. the stock has a long way to go up. we own it like it here. a way to get a good company at a good price. charles: i will add to that, when the company makes that profitable transition, it catches wall street's attention, no matter where it is trading a lot of folks pile in. earlier we had the top guy at long view. i like their research, excited about gold miners and. gold miners are breaking out.

gold miners are breaking the opposite direction. i am frustrated. i own some of these gold miners. what will turn this around. >> i think gold miners will do a lot better they're typically undervalued relative to gold. they always trail gold. gold hats broken out, i think it will continue to make new highs. i'm not a gold bug. i traditionally own a small amount of gold. now we're putting money into gold looking for appreciation not as some safe haven. i think gold can continue higher. when looking at gold, you look at miners they are undervalued relative to gold. they i think will catch up. we bought the gdx to make that play. charles: sounds good, shah. talk to you real soon. >> thank you. charles: my next guest says the business risk to the market is the fed waiting too long. with me wealth enhancement group, senior vice president, nicole webb. nicole, it is really interesting, when you say waiting too long, i want to share with the audience this is may, the may fed meeting.

30 days ago, a month ago, there was over 50% chance of a rate cut. now we can see there is like virtually zero. so when you say wait too long, wait too long to cut rates or wait too long to hike rates? [laughter]. >> yeah. i think you know, bostick had a great quote last week in kind of this fear of any incremental cut to rates is just a cause for additional reacceleration in certain pockets of this economy. and so what investors should really be questioning is, kind of this lingering is what's good for the economy, meaning continued above trend growth, bad for equities? and so far the earnings season behind us now was that no, not necessarily, that the cost discipline of u.s. corporations has really been a fact to earnings per share growth in 2024 that we just didn't see in

2023. the fear side of that continues to be some softening data around labor. in conjunction with that, you know, is it possible we wait too long to start shaving slowly, see the absorption of rate cuts into this economy and the data. charles: of course coming into all of this, jay powell vowed he would not be arthur burns. he would be volcker 2.0. if he cuts too early, and mess this is up, forget it. one thing you've been emphasizing, you say, hey, forget about these overweight bets on themes. instead focus, drill down on value. one name you like is deere. you say it is best in class. you like it because of the cycle we're in and also strong fundamentals. tell us more. >> this is a really cyclical company and we're entering a low point in that cycle and if you extract the graph back on deere even further you will see it tends to outperform the s&p 500 over long periods of time. we like the low point of the

cycle. we like the bad sentiment around deere today for an entry point into a name we believe is kind of entering that next leg. what i mean by that next leg, they have done really interesting work. the management team are visionaries and when you think about even the application of robotics they have ready and available for weed killing, and look at the investment they made into starlink, that changes the act cultural landscape in south america. what will accelerate in agriculture going forward and the positioning deere is in for capturing the upside. charles: i read an article ii months ago saying deere is one of the foremost companies in the world implementing a.i. i didn't even, i would have never thought that but to your point when you talk about these robotics and starlink and other things they're actually incorporating technology pretty rapidly. we have less than a minute to go but let's share another idea, xl energy. >> yeah, a lot of people are

cure just about an an entry point into energy. we didn't chase energy into 2023. that bode well for us. a position we do hold though is xcel energy. on the heels of the wildfires in texas, looking at it today, that pe is at a relative discount and so it is one of these markers looking at the containment of the situation, the fundamentals of the business, it may be one of those overblown selloffs with potential for a steady rebound for the company. charles: right. you shared a chart with relative p-e which has come down dramatically into an area that you say probably is now is a discount. nicole, thank you so much. always appreciate you. talk soon. all right, so my next guest has found a unique way to diversify your portfolio. patel is here to make it all down and along with today's reaction to today's economic data. you have got to hear it.

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charles: so i my next guest says stay focused on friends. nisha patel. when you say, particularly the people watch financial media, every time a number comes out it is blown off. >> yeah. charles: unless the expert told you it was going to be that. it wasn't because. feels like experts do that all the time. how do we watch a trend when we get three or four good numbers, two or three bad numbers? what is a trend, that's what i don't get these days? >> you're right, i think there is a knee-jerk reaction out of every piece of economic data but i bring up the trend because that's what the fed will be really focused on. charles: right. >> look at yesterday's cpi printed, it is still higher than expected, but compared to january, which was a blockbuster number it is lower. when the fed says they more confidence before they start cuts.

maybe continuous numbers, three or four figures, is the trend coming in right -- charles: moving average or six month average? >> exactly. an offshoot print, and there are a lot of numbers underneath the hood that can change that. charles: right. >> that will not change the fed stance. you may have a market reaction to that but the fed is looking for that continuous trend, three to four-month data on inflation. unememployment figures slightly ticked off, right? inflation growth has slightly ticked down. that is the trend we're talking about, if that happens the next few months i think the fed wilt feel a lot more comfortable that the overall trend is signifying inflation coming towards target, labor market softening, gives them more confidence. charles: what is ironic about that, the friday jobs report, the focus was 3.9 unemployment rate. equity futures went down, bond yields went up. by the end of the day the whole thing was reversed. i don't know what it is, things that feel that they are part of a trend a softening labor market

are not necessarily moving the needle with respect to the fed, because we don't understand jay powell, because these other forces like a.i., these other forces i won't call it euphoria but excitement seem to have taken over? >> yeah. i think you have an over all shift now because of the fed, you have end of last year the pivot where the fed ended up being very dovish. charles: right. >> now you have the fed walking that back. i think the market is trying to take the data and also now there has been more of that narrative that is the fed going to cut, how many times will you even cut? we talked about six. the market is pricing only three to four. so the market is shifting towards when is the fed even going to cut. charles: right. >> are they even going to cut this year? there is a little bit more taking place. to your point unemployment data ticking up, the rate picking up a little bit, it is just not enough for the market to maybe have that full confidence. now with that being said, remember we were thwart of 4.30

10-year. we have rallied. charles: right. >> we come back up a little bit on the cpi number. not as much as i would have originally thought because i would have argued that the overall overarching narrative maybe the fed after a few more figures of declining month-over-month inflation will feel more comfortable cutting in the second half of this year. charles: so you said you're fixed income, that is your specialty and, s&p right now the earnings yield is 4.3%. we talked 10-year is 4.16. that's close enough. people should have exposure to fixed income. all investors should be looking to have some exposure, maybe greater exposure to fixed income? >> yes, that's right. there is a lot of money sitting on the sidelines when we look at money market assets. charles: we want some of that. everybody wants a piece of that action. >> we want some of that. here's the thing, there is a lot of reinvestment risk with that on one hand the fed will not cut maybe until june. maybe they only cut two to three times. so that window is open a little bit longer for those money

market assets to yield 5%. cd rates yield kind of higher numbers but i would argue a lot of portfolios are likely underweight fixed income and if you don't have duration a little bit of duration, you want to think about locking in not only duration -- charles: 10-year bond, agt, tlt? >> pair rao metric, they're separately managed accounts. highly customized individual securities. charles: that is more sophisticated than the average. >> looking at the bloomberg ag, buying interimmediate type portfolio, intermead yacht index fund etf to take on the duration. when you look at investment grade bonds, you're liking 5% yield on municipal bonds, high tax bracket clients, looking five 1/2 to 6% yield. there is a lot of yield cushion. even if yields go up from here yields would have to go significantly higher for you to

be in the red from a negative perspective. however if the economy slows, we talked about this before, if yields trend downwards to the end of year, having duration and upside price appreciation will pay off for clients. charles: big time. >> yes. charles. i'm glad you finally came in studio. >> thank you. charles: wall street in its optimism against main street and their pessimism, i will break down where this disconnect is and why does it linger? also the great bob doll is with us next.m th ♪ (woman 1 vo) i have inherited the best traditions. (woman 2 vo) i have a great boss... it's me. (man 1 vo) i have people, people i can count on. (man 2 vo) i have time to give (grandma vo) and a million stories to share. (grandpa vo) if that's not rich, i don't know what is. (vo) the key to being rich is knowing what counts.

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unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. charles: all right, suddenly everyone is giddy in the professional investing world. barron's joining the economists talking up this bull market and, by the way, we're going to be talking about these covers for years to come. not just them, right? if bank of america joining the herd, they hiked their year-end target for the s&p 500, and the white house is still taking

credit for the stock market even though they continue to rail against billionaires. this can if be very confusing, but time for those new to investing to sort of learn a little bit more about all of this. luckily, my next guest is not only an old pro, but he's considered a legend on the street, crossmark global cio bob doll. i read where you were saying the market was priced to or for perfection. what define cans perfection these days -- defines perfection? >> yeah. great earnings, fed cutting rates, inflation falling, go buy stocks. what's wrong with you? [laughter] that's the per if next market which you obviously hear me a little tongue in cheek. look, this is the a momentum-driven market, as you well know, charles. predicting the end of that is an impossibility, so you've got to ride the wave. just be careful what you own. focus on companies that have good earnings predictability, good earnings persistence, decent cash flow numbers. and when the market goes down,

which it will again someday, hopefully you'll have a little protection. charles: it's also an election year, and what we know is that money comes pouring into the economy p. historically, it's helped the market rally. every single year that i remember, the market has been up during an election year, so should we expect that at least to be sort of a tailwind? >> probably so. you're absolutely right. if you have a cautious view of the economy, one of your big risks is that the government spends money if your view is wrong. biden and company will spend as much money as they can in an attempt to get reelected. happens every four years since 1944. every election year the stock market has gone up. charles: the street ignoring this morning's cpi report, but the narrative though is if it starts to shift that the fed not necessarily hiking, but, you know, we had six rate cuts, we're gown to -- down to three, we start to get less than that, could that at least be a speed bump for this rally? >> absolutely. look, if the fed ends up not being able to cut rates or only

once or twice, that's not a positive news for the market. conversely, if earnings don't go up 13% as a is the forecast for this calendar year, that's disappointing also. i agree we you, i ran into victoria fernandez, my counterpart, this morning. good news is good news for stock, bad news is good news, all news is good news, and i was outdone by nancy lazar who wrote inflation is sticky, marks disagree or don't care. [laughter] -- markets disagree or don't care. charles: i know nancy's been looking for a recession, so she's certainly paying attention. so am i. before i let you go, earlier today i had shah ghailani on. he said, listen, a stock like nvidia repriced now with different metrics could double from here. a lot of people watching the show, a lot of guests, i've got guests from large firms saying their clients are asking for these names, and they're forced to buy them. so if you are in them, you're

buying them, you want to own them, what add ice would you give to folks?? -- advice? >> yes, you've got to have some in your portfolio. i'm underweight nvidia versus my benchmark, but i bought more yesterday on the dip because the momentum is working with a tailwind that's double for stocks like nvidia. charles: all right. i never knew we had buy the dip bob on this show. [laughter] great stuff, my man. i always love talking to you. thank you very much. >> thank you, sir. charles: all right, folks, one thing i always say is that the stock market is not the economy and vice versa. i mean, there's some overlap are, but it's not a proxy, radioright? if i bring this up because you can be bullish on the stock market as the economy slips into despair. but a lot of folks on wall street are now basing this newfound optimism if on strong consumers. they're saying the consumer is really strong. now, this morning's cpi report is a prime example. as soon as that report was posted, all the a financial media did was gush about certain parts of it, and the parts that

didn't come down, make excuses about it. yes, the rate of inflation if is better, but the cumulative number, folks, look at this thing behind me, right? it's been above 3% a month for 35 months. that adds up. you know it because you feel it. wang of america, they just -- bank of america just came out with their credit card spending numbers for february, and that tells the story of retrenchment. look what wedged up -- went up. gasoline. that's the last thing we want going up. look what's going down, we spent less on furniture, less on home improvement, less on clothing, less on groceries and, by the way, i don't think that's prices, we're just spending less on groceries. general merchandise, airlines, all of these things went much, much lower. so how much longer wall street and economists will be so cavalier about this sort of stuff, i'm not sure. but how much longer can they ignore this? these are your delinquency rates, and it's for everyone. yeah, the youngest folks have

the biggest delinquency. 10 delinquency, that's nuts. even ages 40-49, these are parents, 6. we're coming up on some pre-pandemic numbers. listen, it's a $28 trillion economy. there are always a going to be areas in this market that make money. there's always something working here and there. en then, of course, there's always the federal reserve pumping in cash, the federal government pumping if cash. so there's always going to be opportunities. but, you know, it's frustrating when they get this confused, right, because right now the consumer, the average consumer is not strong the. all of the money has shifted to very wealthy folks and, yes, they are spending, and that's fantastic, but don't be mistaken, main street is hurting and wall street, well, we're just making money hand over first. that's why you need to be in this market. cheryl casone's in for liz claman. over to you. charles: -- cheryl: charles, thank you so much. we given with this fox market alert.