them. give it as a refundable tax credit. hand it over to china. no, i you know, i agree but, i think as the house puts together a new package of bills part of that is the sanctions bill, okay? because the bidens refuse to enforce the sanctions that trump put in place years ago and i think the time has come to take very strong action, or at least propose very strong action. in fact i myself will propose trump should say that. he should talk more about that. tariffs are a tool beyond trade. trump used tariffs, for example, to get "remain in mexico." jackie: right. >> okay? which really wasn't a trading issue. it was a border issue. and with respect to china and the fact that they're violating the sanctions law, that's the only language they might understand. jackie: i hate cutting him off because he is so smart but i have to send it to charles payne.

charles: folks, thank you so much. good afternoon, everyone, i'm charles payne. this is "making money." breaking right now, yet after another early stock market rally it flames out. a lot of folks are saying you know what? maybe there is a big difference between real life and fairytales. by the way do you know what really happened to goldilocks in the original story. let's just say the bears weren't happy. despite the naysayers surrounding big tech, folks, there is a big reason why the mag five continue to dominate. cash rules everything around them. he dominated in the octagon on saturday but u h a ucf star, shoutout to an austrian economist and american values have gone value. here is great news. he joins me at he wants everyone to study the austrian school of economics. the loopholes the wealthy create and pay for, when they talk about taxing the rich folks, hide your wallet. all that and so much more on

"making money." charles: so we we began today's session reset of soft landing what sort of happens in a goldilocks environment. each day, now feels more like a fairly tale like we'll get the goldilocks landing. jay powell now saying rates may be higher for longer. things don't always go according to plan. i love this cartoon from "the new yorker." it illustrates what all investors are hoping for, it reads first goldilocks said the interest rates were too high. then goldilocks said they were too low. in agreement with the federal reserve board, she finally said they were just right. you know what the original story of gold city locks, i guarranty you never heard it. eleanor wrote this story of the three bears in 1831.

they were all males, none of them were related, just three friends who fancy a home amongst the dwellings of men. goldilocks by the way was not a young girl. she was an older lady. the bears did not try to satisfy her when she broke into her house. they punished her in variety of gruesome ways, before chucking her off a church steeple. those bears were a nasty bunch. even now although, also a frustrating thing for everyone to even think about this goldilocks scenario. yesterday, jay powell stepped up, he made sure as he was tampering our expectations for cuts to point out there not considering hiking rates just yet although he did say they would remain higher for longer with, which is something the bulls have been hanging on to, we've been looking for this let's call it a fairytale. for the fed to cut-rates, now it doesn't look like it will happen. investor hubris trying to take a

hit. look at fear and greed index. golly. the high striker games in the carnival, you use the mallet and puck hits the bell? this is moving faster than that. we were just a month ago in green territory. now we're going deeper and deeper into fear. speaking of racing higher, i want to you to check out the hike in volatility of bonds. this is absolutely phenomenal. it tells you things are happening, concerns are happening. even though we keep hearing how attractive bond yields are, global fund managers are not buying them too much. they have been piling into stocks. more into stocks than they have been in a long time. helping us figure it all out because this is some come complicated stuff, ubs private west management alli mccartney. are you buying they can still pull this off? >> absolutely. the way we view all the of this, the interest rate spikes you she

had in the last few days tells entire story with a little bit of exogenous stock from the conflict in the middle east. we think both the interest rate decrease and the soft landing are called delayed but not derailed, okay? when i was on the show, say, four months ago, we talked about 150 basis points of cuts priced into the market for 2024. as of this morning we're down to 40. so we're down to the market thinking we have one cut this year. charles: one cut ubs is at two beginning in september. fed through the beginning through the dot the plot and their rhetoric, they're looking for two things to little bit temer the strength in the labor market and for consistent proof that inflation is going towards their target. we can all see that throughout this meeting of the minds and the bears coming to the federal reserve board that you know neither of those things are happening in a way that makes

sense for them to. charles: right. >> to make policy rates more restrictive. charles: so here es the thing though, it looks like this bond story is superseding earnings. >> yeah. charles: listen, i don't think they have been that great. right now we're 3.2%. coming into earnings seasons the street was looking for 3 1/2%. in january the wall street was looking for 5.7%. expectations continue to go down. if there is no rate cuts or if they're delayed will the earnings situation be strong enough to keep this market buoyant? >> that's the million dollar question, right? there are three stories. earnings getting eps up so you can have expansion in the price of assets. there is the multiple story getting rates down and then there is this exogenous geopolitical story. from day-to-day what we're seeing no pun intended trumping the news concerning those stories. charles: right.

>> for two years on this show i have been saying we cannot have stability in the equity market until we have interest rate volatility stablizing. until the price of the 10-year is going effectively down to you know, 3 1/2 or 4%. charles: right. >> so what we're seeing in the last number of days when you spook, when you spook the bond market you also spook the equity market and i think that what we're seeing is every single dip that has existed in the lass four months has been bought and gone away in matter of months. this is different. charles: except in the small and mid-cap areas more recently. i know these are areas you like. small caps, i'm using the s&p 600, collapsing well under the 50-day moving average. mid-caps, now they're under its 50-day moving average. i think the velocity these things fall apart that worries me. >> yeah. charles: it is not smooth. it is not a dip. they collapse. if people say this is where the real value is, you start to see it, then all of a sudden it is

all gone. >> first of all this is a trade that will work, and the question is are you going to be early or part way through the cycle when it happens? this is not surprising to me given the following. first of all, small and mid-caps are much more sensitive to interest rates. they tend to be much higher levered than you talk about the mag five. some have negative leverage because they have so much cashing on the balance sheet. charles: right. say the yield is under 4% before even touching these things, the 10-year yield? >> usually, remember markets are in theory -- charles: forward-looking. >> right. if you can get in right now and small and mid-caps on the following, one, the fact that again interest rate decreases are delayed but not canceled. and two, that the historical valuation gap has been well-exceeded between small and mid-cap and large caps. >> is extreme right now. we don't have a chart of that. you are saying use this dip as

buying opportunity. they're cheap relative to the s&p and only getting cheaper? >> i will tell you i've been buy the dip each day in equities, in value, s&p, russell growth, you name it. charles: that is why you have on the fancy clothes. see you soon, thank you very much, alli. always. folks back in february my next guest said that equities looked expensive, excluding the mag-7. well guess what? they have got, they haven't gotten any cheaper since then. bea research strategist, daily insight, rukay ibrahim. the market is expensive according to every metric out there. i will share with the audience. hardly anything, enterprise value that sells, schiller, price to book, price to sales, pe whether it is trailing, whether it is forward, almost every metric it looks extremely expensive here. so how worried should we be? >> hi, charles. thanks for having me back.

well i mean we are concerned, not just because of these expensive valuations but because of the macroeconomic backdrop. so you know, just to be clear the current conditions are resilient. you know we have the atlanta fed gdp tracker showing that gdp growth will be 2.9% in q1 but if we take a look at some of the leading indicators of the economy those are pointing to some worrying signs ahead and for that reason we think that these valuations that are already expensive, they could be confronting deterioration into economic conditions later this year. charles: right. >> that's going to weigh on the stock market. charles: talking about these economic conditions, you talked about the consumer then, consumer savings. consumer savings have only gone lower since the last time you and i spoke. consumers keep stepping up. people conflate overpaying for gasoline with consumer strength but be that as it may, this equation, the downward swoon of the consumer as earnings are starting to be once again eroded by inflation, this can't be good

for the economy. >> right, exactly. that chart shows that the savings rate is actually quite low. it is half of where it was in 2019 prior to the pandemic. this is occurring in a backdrop where excess savings have dwindled. we are auto and credit card delinquencies are rising. so these are concerning signs. what it ultimately means that savings rate will mean revert higher. as consumers is that right to save more that is going to weigh down on their spending. that is also going to lead, you know, deterioration in the labor market. charles: a couple of things, two things i want to get to before i let you go because the clock is ticking. i want to give you props, last time you were here again said industrials should pop over the next three months. the past three months, only one sector has done better than the industrials. that's been energy. you think this move can continue? >> yeah. so actually last time i came on i highlighted our tactical view was neutral. there was this possibility that

things like industrials, materials, energy, they could benefit from a temporary up swing in the global manufacturing cycle. indeed that's what we're seeing, the global manufacturing pmi is back above 50 and energy stocks are doing well. i think it is possible these conditions do continue. these late cyclicals, they could benefit over the near term as there are some signs there is a manufacturing bounce in the global economy, but ultimately i think that is going to come to a head once the economy both in the u.s. as well as the rest of the world starts to deteriorate. charles: before i let gow, you are talking about a defensive portfolio in stocks. health care, utilities and consumer staples. these areas really have gone nowhere but i think you're saying over the next 12 to 18 months you want to have exposure here, right? >> right. i said we're newt on stocks over the tactical time horizon and turning defensive over the course of the year as economic

conditions deteriorate. we're shifting to a more defensive portfolio stance. things like consumer staples, utilities, health care, those will benefit on a relative basis during a recession. for example, something like health care that is already quite cheap t benefits from the structural tailwind of an aging population. charles: right. >> and what we're going to also see is that the pricing power is going to start to increase there because you know, they, this sector has been slow to raise prices but what we're going to see over the coming years is they're going to catch up. that is going to help the pricing power of these companies. charles: they are having a pretty good session considering all the red out there. thank you very much. always appreciate it. >> thanks for having me on. charles: after really impressive victory this weekend, one mma fighter is encouraging americans to study austrian economics also take accountable. renato money will join us next.

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and we could all un-experience this whole session. okay, that's uncalled for. ♪. charles: so the austrian school of economics was founded in 1871

with the publication of mengr's principle of economic analysis. that the appropriate unit of analysis is man and his choices. the austrian school started to take off in the 1930s as leading economists feigned note right and fame. hayak were perhaps two of the most influential, now i think they should add neither name of influencers spreading name of austrian economics and accountability and making money. joining me mixed marshal artist, renato moicano. i want to congratulate you on a sensational victory in ucf 300. after you won you snatched the mic, read vomises lesson of as you veryian economics. i wonder how you discovered it? >> thank you so much.

it is an honor to be here. austrian economics and economics and government when i got my first purse in ufc. then the government want to start to take my money. i start to realize i have to learn and understand about money because it's not only about getting money. you have to pay taxes, you have to understand what you're doing and then i discovered about the as you veryian economics school, theory, supply and demand, all these kind of, these theories and i want to tell people, that's very important, especially for a free market society, free market of ideas, free market of enterprise and i think, mises is such a great author, is such easy to understand the concepts that i want to share with the world. then i want people, especially younger people to read and i think i did a good job because especially on brazil, i'm

brazillian, more than 26,000 copies were sold, they sell on the amazon just on this weekend. charles: whoa. >> i think austrian economics is trending right now. charles: we already put you in the pantheon, my man. we already got you on the board with the influencers. you also talked about loving america, the constitution, the first amendment, you know, i'm curious, are you found people born here taking it for granted or maybe don't cherish it enough? >> 100%. people in america don't understand how important it is to love the empire of the laws. what make america great, what made america successful and rich and prosperous was the free market society, free market of ideas and the accountability and the system of justice. if everybody is weaker to the law, you have to keep it like that, so you have to have freedom of speech, the right to

defend yourself and private property is the most important thing in a free market society. so i think people, take it for granted and america is is not is the best country in the world for no reason. the founding fatherrers made the constitution to go durable, we see a document from the 1800's being amazing as it is. people should salute the constitution. charles: i also read you think interest rates are going higher and you want to get paid your mma bonus in bitcoin, right? >> 100%. that's a huge part of the austrian economic school, supply and demand and scarcity. i think bitcoin represents that. even though it is a dropping a little bit, i think, it is the fans defense against tyrant state and defense against inflation with interest rates going up. everybody knowing what bitcoin is and the dollar is losing

value because the interest rates, because the government keeps printing money, keep doing handouts keep doing welfare to the people. they are not trying to control the supply of the money. they always print more. so i think that is going to be beneficial to bitcoin. charles: renato, i have only 30 seconds i want to give you time to talk about your new podcast, show me the money. >> show me the money podcast, we talk about economics, politics and mma because i'm a fighter. if you want to check out more, mare what i have to say, i tell you something be grateful to be born in america. be grateful for the law america has the justice system and be grateful for the economics here. if you're born in another country you probably would see how good america is. if you can follow me on youtube, money, moicano channel, show me

the money podcast. thank you for having me here. it is a blessing to be on fox business. charles: great to have you. fantastic victory, fantastic speech, i love when you talk about accountability. we'll see you again soon. thank you, my friend. >> thank you so much. see you next time. charles: all right. my next guest just wrote a piece on why the u.s. public debt is simply unsustainable. it is a frightening piece. she is here to explain. what we need to be doing to stop destroying the middle class. ♪.

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♪. >> i think there is such a great author and is such easy to understand the concepts that i want to share with the world. then i want people, especially younger people to read -- charles: well, my next guest has been doing this for years, asking people to read the classics, austrian economics and so forth. i want to bring in tressis chief economist, daniel lacalle. what struck me about the interview with the ufc champ he actually understands. merge personal discipline with fiscal discipline and accountability t seems it boils down to that, unfortunately governments, particularly western governments seem to have forgotten about that. >> absolutely.

mr. m-oicano said it perfectly. the biggest problem, the governments completely forgotten what they have to do defend the power of currency and help small and medium enterprises and what's happened now the monsterous debt in the united states is impoverishing citizens, the middle class and making it more difficult for small and medium enterprises both to access credit but also to thrive because it is not just higher debt which means higher taxes, higher inflation, lower growth and lower real wages in the future. it is that it is a massive transfer of wealth from the real productive economy to the bloated administration and that always leads to massive discontent. so ultimately the problem here is that we are living in a moment in which what the government is doing, instead of helping the economy strengthen, it is making the economy weaker

by making it more difficult for the middle class to thrive. charles: you know to that point i know last week you actually published another piece on this, entitled, why the u.s. public debt is unsustainable, destroying the middle class, we've been hearing these warnings a long time. this $1.9 trillion american rescue act is the first bold example of modern monetary theory. it backfired. we have runaway inflation. now there is talk of releasing crude oil from the strategic petroleum reserve, doing all kinds of gym -- gimmicks to mitigate the inflation out there to pull the wool over peoples eyes. how many more of these can people take? if we allow this to continue, this form of money printing, to your point, that moment of truth that we've been warned abut for at least a decade could be sooner rather than later, right? >> absolutely.

people say, look, nothing has happened, therefore, we can continue to increase debt and this is similar to thinking well, we haven't crashed yet, let's accelerate which is a very dangerous policy. the idea that nothing has happened yet is also false because we have a tremendous number of negative signals. we have the weakening of real wages. we have the weakening of the small, medium enterprise fabric. we have a much worse environment in which citizens are finding it more difficult to get to the end of the month and they need to have multiple jobs, et cetera. and people don't understand why this is happening but what is literally happening is, coming back to the importance of understanding real economics and the austrian school of economics is that what the government is literally doing is disguising its monster imbalances making everyone poorer, i.e., diluting the purchasing power of the

currency. how longer will the world accept the u.s. dollar which is ultimately what the government does when its deficit spending is creating artificial money? so how long will that continue? we don't know, but what we know when it ends it ends abruptly. more importantly, what we also know, is that by increasing massively the imbalances and the deficit spending and this incredibly insane level of debt that the united states has in an environment that it should be reducing debt by the way, what we see is that what that generates is a lot of alarm bells all over the place. the alarm bells are very evident. charles: right. >> it is that, no real wage growth, no real improvement in the small and medium enterprise fabric and productive productivity coming down even worsening in terms of

productivity growth. all these things are negative. charles: thank you, daniel, for helping us and all the work you help us do. meanwhile, folks the stock market continues to put on a brave face, but without jay powell providing support the rally is becoming wobbly but there may be other signals people are missing. madison alworth is here. >> reporter: wobbly is putting it lightly. cash from programs including the discount window really offset the quarter but when you take a look the market has gotten ahead of fed liquidity. they were clearly banking on rate cuts and there's a difference here. now the question is, whether we'll see the market come down to the fed or come up, but those rate cuts looking more and more elusive. moreover, it is getting hard to find buyers for the avalanche of debt being raised by the current administration. retail buyers, they kind of picked up the slack for us but we're seeing a decrease in those buying u.s. treasurys this as well. you know, when it comes to the broad economy, it is hard to know the larger economic picture

when it comes to the government, but that's why we want to look at trucking. the fourth largest trucking company posted financial results that everyone should read, especially economists. some say j.b. hunt is the best of the breed, and if so this is scary. take a look at revenue. it has fallen off a cliff. when you look at the dynamics within the company, the picture not looking strong. revenue down 9%. operating income, that is down 30%. and when you look at their business models, their business section, four of the five segments saw declines in revenue and operating income, including their two largest sectors. it is hard to argue that trucking isn't a forward-looking proxy for the economy. we're talking about products, inventory, sales, all of that, can be summarized in trucking. so you can only hope that powell and co are paying attention to this information.

charles: i hope so. thank you so much, madison. my next guest is paying attention. she pays attention to this and a whole lot more. bring in qi research, ceo, chief strategist, danielle dimartino booth. danielle, first start with what jay powell is trying to achieve here because he kind of created this thing called supercore or supercore inflation that has got everyone going back to the their books. knew of course you're talking about ultracore. i can't keep up with the cores. what is going on? >> look, charles, we actually at qi research, we were making fun of jay powell a little bit, creating out of thin air this supercore inflation which historically really has never gone down. so if you're trying behind a rate that never goes down so you can maintain higher for longer, maybe he should come out and say so, so what is interesting, supercore is 28% of the weight of the cpi. the only thing that's larger is shelter. that's 34% of the cpi, charles. i will get a little wonky.

i will be really quick about there. of 28% that is the supercore, only 16% is automobile insurance and automobile car repair and maintenance. only 16%. and yet it drove 50% of the increase in supercore inflation in march. had it not been for those two small contributors, the supercore would not have been 4.8% and highly problematic. it would have been 2.4%. actually lower than it has been on a long-term historical trend. charles: right. >> powell is following the wrong metric. i think he is following the wrong metric. he should be paying closer to what madison was just talking about and that is what freight, which is the most leading indicator is telling us about the strength of this u.s. economy. charles: right. or lack thereof. you know -- >> right. charles: some people say this whole exercise of cherry-picking in general has gotten out of hand. whether you want to take out autos, auto insurance, take out

food and energy. the average person needs food and energy. it feels like it is a game among economists, then of course policies that impact everyone's life are based on these things and people who are suffering, look at this retail sales report, wall street's got the pom-poms on. they're saying how great it was. what drove it? gasoline through the roof, 2%. food through the roof. you have five gaat goers that were down, danielle. why can't we just have policy based on what the american people are feeling? it seems like policy that ignores that doesn't solve the problem for the masses. >> 65% of retail sales are online shopping y are they online? they're trying to find the absolute cheapest prices they can. the cost of things american families absolutely must buy is rising 4.7% a year. that is a lot, charles. all of this is going on at the same time weir hearing, take-two

interactive, google, l.l. bean, they all announced layoffs. we learned tesla's employees will be finished with their severance by june the 14th. as far as i'm concerned i think it is premature to say the fed is not going to cutting rates this year, whether they have lowered threshold to begin rate cuts for unememployment rate. we're at 3.829%. we're a whisper away from that threshold. as earnings come out in order to please shareholders more and more layoffs being announced. that is exactly what those j.b. hunt earnings are telling you. charles: they're telling us a whole lot. i hope someone is paying attention. i'm glad you are. that you take the time to explain this stuff to us. danielle, thank you very much. >> thank you, charles. charles: folks, where do you go to invest when inflation is accelerating? everyone kind of agrees that is happening. very few tell you how to take advantage of it. dan suzuki, bernstein fame.

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♪. charles: well my next guest says it's too early to position for the end of cycle but it's not too early to position for late cycle. joining me richard barn steen advisors, deputy chief investment officer, chairman of the investment committee there, dan suzuki. dan, what the hell does that mean? >> good question. i think what it means we don't think the cycle is rolling over or ending. a lot of people talking about recession although the data continues to say otherwise, but i think what's clear we're in the point in economic cycle where the economy is tighter. better growth comes with better inflation. that is what defines late cycle. so i think you want to portion portfolios on things that will benefit from growth, but also inflationary growth. charles: what about the pixie dust that kind of aided this cycle? i think this cycle is blown to smithereens. hard to understand how to works. you get fiscal a more federal, a

little more fiscal. it is not organic at all. it is manipulated. how are you able to model when that fades because it feels like when it does fade it could be abrupt? >> ultimately all the things you're describing are sources of liquidity, right? we had record liquidity pumped into the economy over the last few years. i think what you're looking for signs of liquidity rolling over. that is what the fed is trying to accomplish. clearly that is not working. if you look at most measures of liquidity, you've seen liquidity move over the past year despite the fed increasing rates aggressively. when you start to see the speculative investments roll over. that will tell you things are changing. which just haven't had that. charles: madison had a great chart earlier in the show. liquidity sideways, market going up. i think a lot of that was anticipation three rate cuts. at one point it was six rate cuts but every time we hit pa bump in the road, tradition out

the window. money doesn't go to utilities or consumer staples. it goes to communication services, technology, consumer discretionary. these have become defacto safe havens. doesn't that upset the modeling for you a little bit? >> i think so. i think, they're capturing the dreams and hopes for everybody and they definitely have become perceived safe havens especially with one of the concerns of higher interest rates. these companies have net cash on the balance sheet. there is no debt there. there is expectation problem. people want them to do well. people went hem to do well when the economy is doing poorly. we saw a glimpse of this. these companies were in a profits recession a year ago. clearly they're not immune. there is reality versus perception. charles: we forgot about 2022. they took it on the chin pretty good. before i let you go, sectors to be long, inflationary growth, winning sectors, energy, materials and industrials. >> exactly. charles: they also benefit a little bit from the pixie dust i

was talking about. >> they do, they benefit from better growth but importantly they benefit from inflationary growth. you look look at the selloff ine market, it is because inflation is running hot, because the fed might raise interest rates. only things that are up are inflation driven growth stories,-like commodities, some emerging market, that is what you want in your portfolio. charles: then after that, say the script works out the way you think it will, will we come to a point these work out but when does the market start to make a meaningful pullback? >> meaningful pullback, really i think, beyond toward the normal volatility of markets which we're witnessing now, i think there's a tremendous amount of earnings support. so earnings are still moving higher, they're still accelerating and it's broadening out across sectors. charles: it could be a good year then? >> it could be a good year. what you want to look out for, signs growth is rolling over. we're just not seeing those signs. who knows, three quarters from now, four quarters from now it

may be a different story. charles: dan, it has been too long. >> thanks a lot, charles. charles: folks it is not too late for you to join unbreakable investor to. we call the quiz show edition. town hall, 2:00 p.m. reason. the last two were standing room only. i can't, i really want to tell you what i got on the drawing board. you never have seen a financial special like this in your life. come see it in person. go to eventer bright.com. search charles payne. you get a free ticket. i will see you next week. coming up, my takeaway why picking up those pitchforks to go after the rich may be you're going after the person in the mirror. we'll be right back. ♪. ♪ grace didn't believe in magic. but her daughter was happy to prove her wrong. you were made to dream about it for years. we were made to help you book it in minutes. ♪ tamra, izzy, and emma...

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charles: all right, so of all the hand a-wringing about how overinfluential the mag 7 are, these companies continue to deliver outside growth, and the street keeps saying, okay, the

target's going to go up. check this out, these were all the target upgrades just morning alone, right? by the way, it's the mag 5. the other 2 don't count anymore. as for the impact of this, we talk about this against higher yields, for instance. these companies, one of the reasons they don't worry about it is they have monster free cash now. one of the reasons why wall street loves it. but my next guest says, guess what? it is still all about a a.i. and big tech. want to bring in options play directer of education, jessica. when i read your note, i feel like you're as a bullish now as you were when you were one of the first people in this space. >> is so i'm still bullish on a.i. it's an opportunity that creates a lot of, it takes a lot of headwinds and makes them tailwinds. we need productivity, it helps with the labor market, but what i find is really interesting as we're trying to figure out this interest rate environment, there's actually a lot of ipos on the sideline. and there is a lot of m&a activity happening, but a.i.

seem to be immune from it. charles: these are upgrades request today, folks. today. meta, one firm said, no, we thought 527, 588. one went from 530 to 610. amazon from 200 to 224. google, same thing. microsoft, someone initiated coverage of nvidia to say, you know what, we're late, but we still want to be in. you've got these, but you also make an interesting point more people are talking about the electricity crisis or the grid issue. you say that could also create opportunities because these things suck up a lot of power. >> they do. we have a data issue or a huge grid issue right now because there is so much astronomical demand for these, there's little supply. that's even worse when we get into the electrical grid system. so that's another great example if also very value dated by the increase within copper and commodities. so ifs an increase that's needed for the grid, that is where there's ample opportunity for these. charles: you're worried about the dollar being too strong right now? >> i am. i am a technician at heart, and

this is plague out climbing -- like clockwork. the second the u.s. dollar dips to 105-107, we end up hitting, the market goes downwards, and as soon as we find resistance, we bottom out. so that means because of these uncertainty that we have -- this uncertainty and with earnings on deck with all of those providers coming next week, even if we have good earns, there still could be drawdown. but that perhaps if is an ample buying -- charles: so you're a technician, but you also like to go down rabbit hills. >> so much. charles: when i saw your note on this, you're concerned about wealth, the distribution of wealth and liabilities. what are you concerned about there? >> i really think when we're focus on consumer, i want to know who the consumer is. if the consumer is the vast majority of baby boomers and not necessarily millennials and this newer generation, then we have to focus on where, how is that consumer healthy. and if you look at the stocks that are doing well, cruise stocks and things like that, this is a certain demographic, and it is baby boomers that have

the majority of wealth whereas the my if eleven y'alls have the majority of -- millennials have the majority of debt. we see that a labor market participation hit a wall which is the younger generation. that's a really big issue. that is inflationary. the inflationary pressures are from -- aren't from someone who is retiring and doesn't have the department so they're the able to be that resilient consumer which means my poor generation. [laughter] charles: and the irony, of course, that same generation that's spending and fueling inflation, they own certain assets that benefit from the higher yields, so it's a win-win for them, but -- >> it is. charles: i don't know what to tell you. [laughter] you're young. you'll make it through, don't worry ant it. jessica, great stuff, as usual. thanks a lot. i want to ping on this topic because whenever we talk about wealth in this country, politics always creeps into the conversation especially in an election year. but careful. before you pick up your pitchfork and your torch, i'd check this out. i was reading this yesterday. president biden's top tax negotiator's going to kpmg,

rejoining that firm. this is a guy who worked on international tax gains, t going to to cover 30 developed nations. he understands the system. he knows how to beat the system. mid-sized and small companies can't afford his services. this is the way it goes all a throughout. when they say let's tax the billionaires and the largest companies in the country, you've got to understand they can't hurt those guys. these are the people who are writing the systems. they understand how to bypass the system. remember just a few years ago tax records of the super wealthy revealed that some did not pay any federal income if taxes for years? bezos, musking bloomberg, icahn, even soros who's always pushing for this stuff. they all made the list. you know, i understand there's always going to be outrage just like in is 1969. "the new york times" wrote about 155 wealthy families that didn't pay any federal income tack. people lost their minds. there was so much anger, hay had congressional hearings, they cobbled together the

alternativetive minimum tax because they had to get those bastards, right? going after 155 people was on its way to hitting 43 million. eventually some adjustments were made, the trump tax cuts actually helped people down from 3% to just one-tenth of a percent, the billionaires. so here's the thing, recently americans were asked how do they feel about a federal income taxes, and they said they're paying too much. this is what i hope people remember. when you go to the voting booth and think about a government that's raising an army of 80,000 irs agents, they are not going after jeff bezos is. finish but they are going after someone, and that someone is you. so be careful, be very, very careful. in the meantime, speaking of being careful, folk, this market's all over the place. it's trying to find direction, trying to find footing. aisle leave you in the ands of the very best, liz claman,s over to you. liz: it's almost, or charles, like this is now sort of the behavior of the final hour o