Of china casting a dark cloud other its economic output. Industrial production, meanwhile, coming in weaker than expected and, oh, yes, china unexpectedly cutting rates by 15 basis points. All kind of negative headwinds. Now on the other hand, strong data guest canically not helping Investor Sentiment either. Retail sales rose more than expected showing that the consumer here in the u. S. , very resilient. But you know what thats codes for, yep, the feds could have to keep rates longer for high higher can higher for longer, rather. [laughter] Neel Kashkari saying today we are, quote, a long way from cutting rates. Oh, great. Those higher rates, however, certainly have proven burdensome to banks. Today Credit Ratings company fitch warning it may have to downgrade several u. S. Banks including jpmorgan, the big financials all moving lower on that warning as you can see. Morgan stan hi down 1. 33. Morgan stanley. Regional banks also seeing declines on worries over tighter regulation, today the fdic signaling a potential plan to overhaul how regional a banks prepare living wills. Now look at the action here on a very down day, of course, western alliance, pacwest, key corp. , citizens financial all moving substantially lower, 3 or 4 . So could all of these factors pose a very real risk to the markets longer term rally . Lets get right to the floor show to dig into all of this. Joining me now is mullen camp or and Company Portfolio manager jeff mullen camp and always great to see you, trader steven sarge guilfoyle. Thank you, gentlemen, both. Sarge, let me begin with you. There was a laundry list of headwinds there. Certainly china casting a shadow over everything because their economy seems to be to really struggling right now. How much concern does that bring you for the markets here as we look ahead . Well, i have a little bit of concern. I mean, china was and is the second largest economy on the planet. They were the primary engine for growth for the global g dp over the last are, i dont know, 1015 years, but weve made it without them before, and we can do well without them again. Our economy, ive been wrong about the economy. I was calling for a recession of half a year ago. I mean, the atlanta the gd fed revised their gdp now model for this quarter, for the Third Quarter to 5 . I never saw anything like that coming. I mean, maybe i saw it comes recently, but not until recently. The Unemployment Rate ares down to 3. 5 , wage growth is higher than inflation, yet nobody feels happy, nobody feels that strong. Ashley yeah. I think you have to be in this market because if the economys going to grow, rates have to stay i higher for longer. Ashley i think, jeff theyve got to stay where they are. Ashley you got it. Jeff, let me bring you in. You may maybe higher for longer inflation suggests perhaps commodities and is highly cashgenerative companies, any in particular . This is a type of difficult environment, is it not in we have global concerns, fitch putting out warnings about major banks, and then theres the fed, of course, we worry good news is bad news. Theres so much to digest. Where are you in this environment . Well, ashley, the things im concerned about, one, much like sarge im interested in what the u. S. Economy is doing. Like him, six months ago i expect a recession. Like him, data recently had led has led me to have a much more positive outlook on the u. S. Economy, so i think thats a positive thing. But i do the think that inflation theres at least a pretty strong risk that its going to be higher for longer, and so the fed is going to have to react to that. Weve with already seen the fed in march react to problems in the Banking Sector caused by the increases in rates that they had instituted to fight inflation, and im kind of waiting for the problems that stem from their quantitative tightening, right . So the fed has now bumped into constraints in terms of how high can they raise rates, and so im looking for what are the constraints that are going to cause them to a little bit reevaluate the quantitative tightening. That the thats the picture i have for the future. I like a numb of sectors in the u. S. Market. I like energy, i think that will do well in an inflationary environment or just a decent environment. It doesnt have to be great. I mentioned transocean, the ticker for that is rig are. It looks to me like an energy discycle, a lot of the investment is going to yo go offshore. So thats something were interested in. Ashley got it. And there are a number of other companies that for idiosyncratic reasons are very interesting to us. Ashley very good. Sarge, met me bring you back in. I want to talk about retail sales, prizing on the upside surprising on the upside. I the even more surprise, the resilience of the household consumer. Were talking about debt going up and up and up. At some point somethings gotta give. What do you feel about the psyche of the u. S. Consumer that is so important in the u. S. Economy . I think i want to be pessimistic because i think thats the way we should be right now, but i we shouldnt be when we look at this data the, because i call it the fun index. Its the line on the retail sales that says sporting goods, hobbies, music and books, all right . Thats the stuff people buy new. That was up 1. 5 month over month, a 1 gain yearoveryear, so they havent been buying the stuff for about a year, now all of a sudden theyre starting to buy it. That means people are starting to feel better about things. This is a weak time of the year seasonally. I think as far as investments you want to be where the demand is. The demand is still for a. I. , so while its risky, i still think a. I nvidia and amd i still think software, microsoft and service now, and i think cybersecurity. Thats palo alto and, for me, crowdstrike. Stay out of the banks. Higher for longer, that compresses net interest margin, thats to no good for the banks and hurts their hold to maturity portfolios, those bonds that if they were marktomarket would show great losses. I think you have to stay out of the banks and decide precisely where demand is and be there. Ashley very quickly, jeff, met me bring you in on the tech side. Had a tremendous run, the magnificent seven, all of that. But weve seen some profit taking, but do you stilling like these names on the pullback . The a. I. Names im going to be a little bit on the flipside of the coin from sarge there. Im not a momentum player. Im primarily a value player. So to me, im looking through the banks recognizing all of the negatives he said are completely valued, im looking through the wreckage to see if theres a diamond amongst the wreckage. [laughter] and with tech everybody is so positive on it, im going to sit on the sidelines because my fear is that at some point the momentum will reverse, and im the wrong guy to get that right. So i dont think [laughter] i can personally make a dime there. Im the one waiting for the wreck withage, and then ill once again go through and see what i can find thats of interest. Its a little bit different methodology, but were seeing very similar things. Ashley i understand. Right. Hey, ash a. Ashley sift9 through the debris. Very quickly, sarge, go ahead. I just want to Say Something to jeff. He mentioned transocean, rig . That is the Top Performing stock in the portfolio. The stocks stocks under 10, so familiar with the name and that was an excellent choice. Thank you, sir, i appreciate that. Ashley there you go. [laughter] doesnt it make you feel good . We should all have a Group Virtual hug. [laughter] thank you very much, guys, jeff and sarge. Terrific information, you guys. I love the positivity. Thank you so much. All right, reports claim that striking hollywood writers are expected to respond to the latest proposal from major studios. The offer includes a concession about the use of Artificial Intelligence, but our next guest says a. I. Doesnt need to always be cast as the villain when it comes to film making. The claman countdown coming right back. Salonpas lidocaine flex. A super thin, flexible patch with maximum otc strength lidocaine that contours to the body to relieve pain right where it hurts. And did we mention, it really, really sticks . Salonpas, its good medicine. Let Innovation Refunds help with your erc tax refund so you can improve your business however you see fit. Rosie used part of her refund to build an outdoor patio. Clink dr. Marshall used part of his refund to give his practice a facelift. Emily used part of her refund to buy. I run a wax museum. Let Innovation Refunds help you get started on your erc tax refund. Stop waiting. Go to innovationrefunds. Com you really got the brows. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Ashley reuters reporting striking hollywood writers are expected to respond this week to the latest contract proposal from major studios after a monthslong labor dispute. Now, the offer reportedly contained a a concession on the use of Artificial Intelligence and credits human writers on scripts. The unions also asking for higher wages, streaming residuals and a. I. Precautions. But a guy who used to work for warner brothers,son finn sonny dylan loan just started a new Venture Capital fund that invests in Artificial Intelligence and is backed by former executives from major movie studios, and he joins me now in a to fox business excollusive. Here he is, sonny dillon. Sonny, great to have you with us. Why should, in your opinion, hollywood not fear a. I. Among the writers and the actors in theres a lot of fear about a. I. Essentially replacing them, right . Yeah. I think a. I. Has often been cast as a villain if are a story telling perspective. Eva, all terror, hal, the list goes on and on, so i think its very easy to demonize technology that in and of itself is fundamentally neutral, and if portrayed and used in the right way and communicated in the right way, we actually see a. I. As being something augmentive. We refer to it as augmented intelligence when we look at it from our funs perspective. But we see it as a horizontallyenableing activity. Ashley i think youd have a hard time making writers and if act the to haves accept that. The strike has gone more than a hundred days. There is a proposal from the major studios, can we get this thing done sooner rather than later . Yeah. Ill start by being very clear, i think that a lot of this stems from compensation. Training data thats used to actually train the artificial intelligencal a grit. Temperatureses al grit. S, if artists, sown mixers, directors, etc. , have contributed work to training that a. I. , they should absolutely be with compensated for it. So i think the new Business Opportunity thats emerging, the new Business Models that need to emerge, the legal frameworks for ip protection, for labor protection, etc. , absolutely need to be something that accompanies this fundamentally enabling technology. Can and i think that thats really where a lot of the conversation needs to be focused on, because it does open up huge new revenue streamses for the industry at large, and i think that those folks contributing to it absolutely knead to be compensated for fairly. A. I. And in itself is derivative. Its train off of something thats been done before and come up with new permutations, combinations of that said work, and i think its very, very important that people are very transparent in Silicon Valley about whose Training Data has gone into that, which movie dialogue has gone into training this character. The weighting of that balance in the algorithm should absolutely be used to compensate folks on the back end. I think thats a core part of this argument. Ashley right. Well, hopefully, they can come to that agreement. I want to talk about kyber knight. It lawned with a 120 inaugural fund. What type of companies, sunny, or investments are you looking at to put money into . Where are you headed . Yeah. Were a generalist, precede and feed fund based in Silicon Valley but investing primarily across the United States. We invest, like i said, Artificial Intelligence is a horizontalenabling technology for us, so weve been investing in a lot of different verticals that a. I. s been impacted, 3d printing of. Homes and robotics, leveraging Computer Vision which is a form of about official intelligence, we were some of the earlier investors in Autonomous Vehicles with Companies Like cruise automation. We also think theres far more ordinarily mundane industries that need to be impacted to the benefit of the consumer by Artificial Intelligence. Specifically how will you calculate your taxes, how businesses calculate their taxes, how insurance payments should be calculated, compliance and regulation, things like that, that that arent the most fun things, a. I. Can make easier, simpler and more cost effective. So were looking at businesses in all those, quoteunquote, boring industries. Ashley well, theyre not successes city. Doesnt matter if they can do the job and and cut down the time i personally have to deal with, that thats always a good news. Were out of time. Fascinate nateing conversation and the best of luck, sir, with your new venture. Sounds very exciting. Thank you very much. Thank you. Ashley okay. Thank you. And speaking of hollywood, nfl star Michael Ohers life story was turned into an oscar carwinning, 470 million movie. I bet you watched it. Its called the blind side. Now hes claiming its all a lie. What the heck . A live report coming up next. But as we head to the break, take a look at the markets firmly in the red across the board. The dow, s p and and nasdaq, as you can see, down close to . Well 1 percent. Well be right back. What do we always say, son . Liberty mutual customizes your car insurance. So you only pay for what you need. Thats my boy. 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Ashley well, markets continuing their selloff with just, what, weve got 30odd, 38 minutes or thereabouts left of trading, and we can see good riddance. The dow off 300 or thereabouts, the s p and the nasdaq down close to 1 . Thousand, to more fallout from those hollywood strikes that weve been talking about. Getty images feeling the impact, down as you can see nearly 5 after the company cut its fullyear revenue outlook by 222 million. Getty images 22 million. A today photograph Red Carpet Events and say the slashed guidance is due to the ongoing hollywood strikes. On a postearnings call, the companys cfo said it expects the strike to last through the end e of the year. Yikes. Another ev company has joined teslas growing lists are of charging partners. Fiskers stock, as you can see, up today half a percent if certainly a sellers market after signing a deal to adopt teslas north american charging standard. Fisker owners can expect to start using the charging network by 20 the a 25, so theyre going to have to wait a while, but teslas stock also down 2. 5 . Speaking of electric vehicles, vietnamese automaker making a riproaring debut on the nasdaq, more than doubling in its first day of trading look at that, up 194 after e it completed its merger with special Purpose Acquisition Company black spade. And discover financial stock plummeting after the ceo, roger hochschild, announced he is stepping down. The stock down so as well. The bank announced john owens are take over at interim ceo and president effective immediately, but the market reacting. Again, 10 down on discover financial services. All right, now this story. Was the feelgood 2009 movie the blind side based on a lie . Say it aint so, but thats what many people are wondering after former nfl player michael oher who the film is based on claims he wasnt actually adopted by the the family in the movie and now, well, yeah, you bet it was going to happen, its become a legal battle 678 for thest e on this plot twist, gerri willis joins us now. Why so her bringing this up now instead of years ago when the movie first daewooed . Reporter well, i have to tell you, ash, he just learned some of the details of his legal standing back in the spring, so now he is finding, trying to get a finding against the family. The subject of a 2009 film called the blind side which described his to adoption by a wealthy white family alleges in a Court Document that the film was based on a lie. The 4page filing in the shelby, tennessee, Probate Court saying the lie of michaels adoption is one on which leanne and sean too by have enriched themself. Oher maintaining the company set up a conservatorship which resulted in his receiving zero earnings from the move have i have which made 300 billion and was a huge hit for warner brothers. We reached out to warn or or brothers, they did not respond to our request for comment. But sean two hi, that is, is telling the daily american january web site that he was stun by ohers allegations and that twohealth care ey didnt make money from the film, only a share of the the proceeds from the book on which the movie was based. Now according to the legal filing, the movie played the twoheys and their two birth children each 225,000 plus 2. 5 of the films defined net proceeds and a 200,000 contribution to leanne twoheys charity. Sean twohey said the familys share of the proceeds was only 14,000 each and that michael was paid as well. Now, a conservatorship, as you know, allows someone to assume legal guardianship over an adult often to deal with medical and health care needs. Britney spears successfully challenged the guardianship her father placed her under two years ago. Now toher oher has maintained he didnt know he was signing his rights away, he says he was falsely told by the twoheys that since he was 18, he was too old for adoption which is not the case under Tennessee Law are. So lots of moving part, but i have to tell you this is one were going to be debating for a while. Ash . Ashley yeah. What a sad development for such an inspirational story. Ing gerri, thank you very much. Fascinating stuff, appreciate it. All right. Rising Mortgage Rates taking the wind out of potential home buyers sails, know we mow. That also leaving some of them stuck in a rental rut. Were going to talk to redfins ceo on how the lack of inventory is hurting the Housing Market. Well be right back. Dad, we got this. We got this. We got this. We got this. We got this. Yay we got this. We got this life is for living. We got this lets partner for all of it. 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And just might change how you trade forever. Because once you experience thinkorswim® by Td Ameritrade theres no going back. Ashley breaking news, the markets are shirting session lows now in the last half hour of trading, the dow down almost 400 points. Guess whats inching close to a record high . Rent in the United States. We mow its been going up, and according to redfin, asking rent in july was 2,00 2,038. But there is also some good news, rent growth is slowing. Rising onliment. 3 annually compared to 3. 6 growth 13. 6 the year before. Its still not great news for renters, of course, who are stuck in a very tight Housing Market right now. Madison alworth has more on this, well, were calling it rental rut, right, madison . Reporter yeah, ash, we are, because with even if theyre cooling, you can see rent prices are still way, way up, and part of the reason why is because people that would be home buyers are not able to get into that market, so theyre stuck still renting. You see a very crowded rental market, and thats meaning demand cannot keep up, prices are going way up. Take this rental unit, for example. Even this unit that were in, small studio on the Upper West Side of manhattan 3500 a month which sounds crazy, but we already had three applicants on this apartment on the rental side as with well. Reporter rent is at such a high that that folks are putting way more of their salis budgeting that towards their rent more than is fiscally responsible. Youre supposed to only spend 30 of your income on rent max. There are now 7 metro areas where the average renter is paying much more than that. And now this is marley frustrating for those that want to buy but cant because theyring being outbid or because Mortgage Rates are very high, near 7 . And 100 forced to rent because theres no availability out there. Im almost 30, im 29, so i thought at this point i maybe would have had my first home by now. And really each year we assess everything and we see if its feasible for us. Reporter making matters worse for those looking to buy, home Builder Sentiment has decreased for the first time in 2023. That number out today. Home builder stocks over the course of the day mostly reacting positively to the news but, again, for those hoping to get in new homes, it is not good. And now we talked about this apartment, its the 600 square feet, 3,500 per month. You might think thats high, but this shows you what were dealing with in the market. This apartment, 600 square feet, already has had 10 offers in one week. They have three that they are considering at this point. So this stuff, the inventory, the demand, they cant keep up, so if youre sitting at home thinking 3500 for an alcove studio, there are ten people that are ready to move in the here tomorrow. Ashley . Ashley yeah. And thats the sad thing, new york is just beyond belief with. Madison alworth, great job of really bringing that home. Madison, thank you very much. Can you believe it, more than 3,000 for a studio on the Upper West Side. Well, while rent ors dont have much opportunity right now, Home Builders dont have much feint in the market either. Faith in the market either. Sentiment for newlybuilt homes drop dod to 50 in august, the first decline this year and the lowest level since may. The lack of confidence likely stemming from those ooh rising Mortgage Rates and, oh, yes, High Construction costs. But despite that, home builder stocks significantly higher year to date. Look at this. Pretty good, dr horton, lennar, and its not just the brokers, redfib up 135 redfin if up 135 this year. Guess what . Joining me now is Ceo Glenn Kelman of redfin. Congratulations on the stock, e glenn. But lets talk about more perhaps depressing issues in the Housing Market. We just had Madison Alworth talking about the rent in new york city which i dont think you can really call most of america, its just off the charts. But we have high Mortgage Rates, we have people who dont want to leave their homes right now, some of them, because they dont want another higher Mortgage Rate, Home Builders that are not very confident. All in all, this is a tough environment, isnt it . The market is at a stand still, so home prices have held up. In fact, home prices have risen 3 , but sales volume is absolutely rock bottom. The people who need to sell wont do it because they dont want to give up their mortgage. The people who normally are would buy cant afford it. So buyers and sellers are in a standoff, and it means that the industry is just going to have a tough 2023. Ashley you released a couple of studies in the past few days, and i found these fascinating. One of them said the typical teacher cannot afford can afford, i should say, 12 of homes for sale near their school. That number was 30 a number of years back, so only 12 . I mean, that says et al. , doesnt it . It all, doesnt it . It duds. Teachers are just the prototype of middle class americans. It was only four years that a third of teachers could afford to hiv in the communities that they served to live in the communities. Its the same story for Police Officers and Fire Fighters and everyone else that has a regular job. Its been this combination of home prices shooting through the roof and now mortgages also going up really faster that has put a real crimp in the style of most people who are looking for more space. And we didnt feel the effect immediately through 20202022 because so Many Americans could move to less ec expensive cities. But now as there is more return to the office, we are seeing more people trying to afford a seattle, a denver, a portland, a dallas even can and struggling to do it. So what we need to do is just build more houses. [laughter] ashley well, yes. I think theres one city in america, i think its minneapolis, that did that that ahead of when all of this hit, and now they are sitting much better, to your point, because they built a lot more housing and Affordable Housing as well. Another part of the study that you put out here, glenn, nearly 1 in 10 u. S. Homes are worth at least 1 million. That is near an alltime high, and that just speaks to how far out of reach these homes are for the average house you know, for the average buyer. Well, when i started in this job in 2005 two, a Million Dollars was a luxury home. [laughter] now that is below the median price in a market like san francisco. I think you would be shocked if you saw how little you could buy for a Million Dollars. So people feel like they have to win the lottery just to be able to buy a home and start a family. And that is just a real challenge for the american dream. So the only solution to that is, obviously ashley you know, glenn yeah, go ahead. Oh, go ahead. Ashley im sorry to jump in, but i want to talk about the Mortgage Rate at 7. That is absolutely crippling and a huge barrier, ill imagine. I would imagine. The lack of housing, as you say, is part of it, but the builders will tell you theres so many regulations in many of the states especially california, material costs have gone up, and those builders that like to build on spec are too frightened to do it. The cost is high and theres lack of buyers because they cant afford it. Well, this has been a real vindication at the local level of free market politics. So despite how important it is in the Progressive Agenda to make housing more affordable, almost all the regulations to do that just force builders to build elsewhere. If so its atlanta and nashville and dallas and houston and other cities like that that have really figured out how to build a large number of homes. And as a result, more people are moving there. People are voting with their feet, even people who are politically in a different place with their pocketbook want an affordable house, and right now the free market is able to deliver that better than most of the regulations would have. Ashley youre very right. Especially about nashville. I lived there for a decade. I went back recently, i couldnt believe it. It had just exploded. Boomtown. Ashley yes, its a beautiful town. Fantastic conversation, glenn, appreciate it. Thanks for joining us. All right, lets move on. President biden thank you. President biden has begun canceling Student Loan Debt for more than 800,000 borrowers. Well have a live report from the white house coming up next. Yes, well be right back. 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Com with your hearing, if you start having a little trouble, youre concerned that its going to cost you money. To this day i only paid what i had to pay for the device. When i go back everything is covered. Theres so much youre missing by not having hearing aids. Well find you a hearing aid that fits your lifestyle and budget at one of our over fifteen hundred locations. Call miracle ear at 1800miracle and schedule your free, no obligation hearing evaluation today. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Ashley President Biden has started canceling student debt for over 800,000 borrowers after a judge threw out a lawsuit to actually block the forgiveness plan for longtime borrowers. The white house now moving forward with a mauler forgiveness plan smaller after the Supreme Court struck town the original proposal. Lets go to Edward Lawrence live at the white house this afternoon with more on the president s new handout strategy. Edward. Reporter yeah, ashley. The department of education, as you were alluding to, is now forgiving starting today some 39 billion in student loans, and that affects 804,000 borrowers. The decision comes because the forgiveness comes because a judge ruled against a lawsuit about a rule change over counting the months towards forgiveness. Now under the incomedriven repayment plan, after 202 or 25 years of 20 or 25 years of repayment, loans are forgiven. So now months of partial payments or no payment count towards forgiveness. One of the lawyers recommending the atoe institute and the mci i know center that sued says the fight is not over. Absolutely unconstitutional and and unlawful. Congress said you have to make a certain number of Monthly Payments to receive loan forgiveness, and the department is counting nonpayments as payments. Anybody should know that is not a lawful definition of what Monthly Payment means. Reporter and he plans to file an appeal as soon as possible and take the case to the u. S. Supreme court if necessary. In the meantime, the Biden Administration rushing to start the forgiveness, piecemealing his plan to get around the u. S. Supreme court decision. Former students mixed on the push. Freezing student loan payment, deferring indefinitely, i support all of those things. Or or or forgiving altogether, i think it should be a matter of perhaps individual, you know, application review, Something Like that based on need. I dont believe in the president s forgiveness program. It makes, frankly, i think the cost of college has become completely out of whack for the return you get on it, so to enable further access to that overinflated system, in my opinion, is not the right approach. Reporter and President Biden believes taxpayer money should be used to help forgive loans, student loan for some borrowers. Ashley . Ashley yeah. The debate goes on. Edward lawrence, thank you very much. Appreciate it. All right, now this, nearly two months on from the Supreme Courts decision to get rid of affirmative action programs at harvard and North Carolina universities, big corporations seem to be slowwalking the positive of winding down their own dei policies. Charlie gasparino here with more. Of how are they doing that, charlie . Well, lets point out that we were kind of on this story very early even before the the affirmative action ruling on the claman countdown. We were talking about how companies were eyeing a victory for the students, you know, a loss for the colleges on the affirmative action stuff, would lead to a change in corporate dei policies, diversity, equity and inclusion. Why is that . Because the same sort of concepts that the Supreme Court would use to strike down affirmative action, namely a strict leading reading of the various titles of the civil rights act, could be applied directly on the corporate level. Thats essentially what theyre planning for right now. Heres what we know, none of this stuff is going to happen immediately. From what i understand from lawyers that deal with Big Companies and are discussing changes to their corporate dei policies, theyre talking about an eventual revamp, something over the next three years, that theyll slowly start deemphasizing race and gender so to speak in these sort of programs. They may even eventually not call it dei anymore because the notion of diversity, equity and inclusion could include not just race, but other factors including diversity of thought and diversity of belief and political opinion. So which you didnt have in the past. Thats what were talking about here. One of the problems with doing it immediately, ashley, is the potential for litigation. If you do it immediately, youre almost admitting that you were discriminating against white males in the past, you to do it now. So if someone has a case, they could bring it and say, look, youre already doing a 180 because you its illegal. Thats one thing about not transitioning this thing. The one thing i say though, and im finding this pretty much across the board, is that these sort of consultancy businesses thats basically cropped up, they were always around. After george floyd they were in hot demand, these dei consultancy businesses, outside companies that would come in and sort of consult with hr departments at Big Companies, that those companies are getting from a business standpoint hammered right now. Theres not a lot of ashley do we know any Company Names that were talking about here, charlie . Theres, you know, theyre not well, the Dei Consultants are not household names, theres a lot of them. You can just look them up. But they are not in demand right now from corporate america. On top of that, it looks like a lot of companies are eyeing dei departments for cuts. Its known as not just a cost center, its essential arely a place that you can essentially a place that you can get hammered on litigation. So all this is occurring, its going to be, its going to be a transition. Its not going to happen immediately. You know, still youre going to read about woke Companies Hike disney and things like that. Ashley yeah. One of the reasons why you have Dylan Mulvaney in a budweiser ad, and this is based on my reporting, was because budweiser was very, very concerned about meeting dei metrics for its esg scores, environmental, social governance, the g part of esg is where you get diversity, equity and inclusion. They were the worried about meeting that that, thats why there was tremendous pressure, from what i understand based on my reporting, on the Marketing Department to go out there with influencers and to be more, quoteunquote, diverse. Ashley yeah. Thats where we are right now. A transition, itll be interesting to see it happen. And if they dont transition in this way, theyre facing lawsuits. Back to. Ashley my goodness, fascinating stuff, charlesly. It will two on for quite sometime. Absolutely. Will follow it every step of the way, charlie, thank you very much. You got it. Lets get back to the markets, big selloff today. All sorts of headwinds with china. Retail sales stronger than expected. Does that mean the fed will be more hawkish . Anyway the dow on pace to snap a threeday winning streak we know that. 399 points down but still down 350. Now this, is a spot bitcoin etf is now officially trading just not in america. The jacbee Wilshire Bitcoin etf is trading where . In europe. The first time a crypto fund is trading there. The company was planning to the list the etf last year but pushed the listing back because of crypto related scandals like the ftx bankruptcy. What does that mean for a spot bitcoin listing here in the United States . It around the corner . We have pacer etf president sean ohara. Lets begin there, sean. Could this bitcoin etf be a blueprint for a listing here in the u. S. , what do you think . Thanks for having me, ashley. This is one of those things like the holy grail for the issuers here in the u. S. Im not sure from a issuers perspective what the value after bitcoin etf would be. You can buy and hold and own bitcoin fairly easily. The wrapper would eventually erode returns. There are a lot of filings. They have been pushing them pretty aggressively. Usually what happens overseas eventually winds up over here but well have to wait and see. Ashley talking of overseas do you like investing overseas and where are the opportunities given that weve seen news out of china isnt great as far as the economy is going there and there are concerns about a global slowdown but do you think there are opportunities overseas . Well yes, so far this year, ashley weve seen nice flows into international and global funds here at pacer etfs. The predominant driver for that those valuations are lower than ours. I happen to think the u. S. Equity market valuations are a tad high. Ive been saying that for a while. They continue to defyigraphy, but if you want to shift asset to buy stocks cheaper. We use strategies with Free Cash Flow yield as a screen. We can buy a basket of 100 Global International stocks at singledigit pes can get attractive overall dividend yields. Counter to what happened beginning of this year if you dont own seven names you didnt have relative returns and sooner or later that goes away. As a strategy going forward, lowering the overall pe on your portfolio makes sense not only in the u. S. But probably internationally. Weve been underweight as investors in the u. S. Internationally and globally for a long time because the u. S. Market has been so strong. Ashley youre etf cows, it is up 6 yeartodate, 6 quarter to date. Tell me about that. What is that invested in . Yeah. So our cows etf uses Free Cash Flow yield as a screen. We take the russell 1000 for example, screen for 100 names for highest Free Cash Flow yield. That is our approach to traditional value investing. You wind up with a 100 Profitable Companies with a high Free Cash Flow yield which means they have excess capital to do all kind of things to buy back stock or acquire people. For the last several years this strategy has been a pretty effective strategy to value and the broad market. Weve been overweight energy. I gave you one of my names as one of your top holdings is chevron. The Energy Sector on a Free Cash Flow yield basis historic high in terms of excess yield that is there their valuations are very, very low. That count irto market cap weighting in a different way to weight the cows etf allows you to do it on a large cap basis. To your Previous Story on rents, one of the big surprises in the portfolio of cows is the homebuilders. It seems doesnt make any sense f people are not selling their houses because they dont want to get rid of higher mortgages and dont want higher mortgage, there is no inventory in new homes, the builders have a little advantage. We own a name like lennar which has done very, very well so far yeartodate. Ashley it is almost counter intuitive, isnt it, sean . For instance, chevron we had people saying Global Economy is struggling, demand will go down next year at least that is the opinion of some economists. Lennar homebuilders i know Warren Buffett is getting into this sector. Maybe we should say okay but you know the housing sector has been struggling but you believe these names are definitely a solid choice . Well i mean they have done well for us yeartodate. They generate a lot of Free Cash Flow. Have a high Free Cash Flow yield. They almost have an unfair advantage today because theyre not competing against the excess used inventory that goes from time to time through these cycles in the Housing Market. Ashley right. Sean ohare remarks fascinating sufficient. I cant, run out of time. Thank you very much. I have this item, breaking news. Trucking Company Yellow is tanking at this hour on Financial Times report that Apollo Global management shed its financial exposure by selling off 500 milliondollar term loan and dropping plans to extend pricey financings to extend its bankruptcy. Breaking news. The dow offer. David hello, everyone, welcome to a special edition of kudlow, im david asman in for larry today. Historic fourth indictment of former president donald trump, actually they were all historic, there never has been one before, this one coming out of fulton county, georgia, where donald trump and 18 other individuals have been charged for allegedly trying to overturn