Way, jackie. Good afternoon, folks, im charles payne, this is making money. Breaking right now, stocks stumbled out of the gate. Here is the thing it is litany of issues. Surging bond yields. Wait until you hear what happened with the 20 year auction. Political tensions enhancing. Negative reaction to earnings this morning. Guess what . Im actually bullish. I will share my source of optimism and my one key signal to load up. Heavyweights tesla, netflix report after the bell. Well handicap that with you our top analysts on on the street ad our favorite stockpickers. President biden heading home after the wartime visit in israel. Tensions escalate after a bombing in gaza hospital. Russias Vladmir Putin touts a new world order with his quote dear friend president xi. Gordon chang is here saying what the two leaders are saying is something we ought to be paying attention to no matter what else is in the news. All that and much more on making money. Charles all right, so most people know me as a rosecolored glasses kind of guy. Be honest with you it upsets a whole lot of people who say im a permabear. I admit im always bullish on america and looking for opportunities in the market. Doesnt mean im always completely long. I say i am champing at the bit to become aggressive here however there are some reasons, i will share some with you, not necessarily order of importance but you heard us talk about this a lot on the show, seasonality worked like to perfection this year. Historically where we are right now. A little bit of choppiness still to go but setting up perfectly for a yearend rally again if seasonality works out. By the way more important in a election year, third year of a president ial election. Were at this point if history proves right we are going to be off to the races. There are some other things people are concerned about, we have a lot of guests who always come on the show to talk about this, thats the earnings. Forward pe ratios i would look at that before past trailing 12 month pe ratios, coming down a little bit. Here is the magnificent seven. 34 times, 27 times. 493 stocks 18 times down to 16 times this right here is reasonable. I really of all the things in my decisionmaking process this is way down on the list but lets face it hundreds of billions of dollars go to work based off this number. Guess what . Most of these people missed the rally this year. They have to be a way to get in, that will be the excuse or opportunity no matter how you look at it. You have to talk about the earnings part. Third quarter right now well be reporting. Talk about the magnificent seven. Why do they have such high pes . Maybe they justify it. Look at what their earnings will probably be. Rest of market here. Here is the most important thing, were coming out of the earnings recession, it has been seven quarters i think. It will be pretty significant for a long time. This is the good news. You can see here where you start to get the rest of the market up near the magnificent seven. Maybe we get sort of scenario with the same tide lifts all ships. Then of course probably the most important thing, should be the most important thing there was a time when the fed didnt come before Everything Else but it does now. This is where we are right now with respect to where the fed is, where fed funds are. Looks like we will stay this according to the cme fed watch, maybe get our first rate cut in july of next year. I could live with that, i could live with that. I call that dry powder by the way. These are some things were looking at. Finally there is the wild card, when do you pull the trigger, right . When do you really want to get aggressive with all of this. One of the things that is going to happen. These are the money market funds, right now six trillion dollars, six trillion dollars, some of that eventually will come back to the stock market. Here is where i say maybe get really aggressive. Over 4400 you will see some buying. Over 4600 i think you got tonnage aggressive in the stock market. Joining me now, Wells Fargo Advisors svp mark smith. Mark, i laid out my bull case. Take some shots at it if you want. Charles, not a lot to disagree what you said. A lot of my clients are sitting in money market. Getting 5 rates plus. Es socially talking about the magnificent seven up 20 this year. Folks are saying im sitting on the sidelines, how do i get back in. You have to look at some of these tech stocks because they are really poised to break out. Charles you would stay with the tech names . Why not this showing tremendous growth still. Theyre, revenue is still coming in and i really dont see a reason why you want to own any of the magnificent seven next five, 10 years. Charles 2023 were kind of talking about earnings growth, then 2024 same thing. To your point all the way to even the Second Quarter of 2025 they will have outsized growth, earnings growth. This is what we based the market on before, before Everything Else, right . Investing 101, it is all about the mothers milk of markets is earnings and they have got them. Absolutely. Not to mention, listen value stocks, we talked about growth, theyre also poised to break out because they havent really moved a lot this year. Youre seeing low singledigit returns on the value side of things. If we see the financials take off, because typically when you see rates this high financials do very well. We havent seen that yet. If that breakings out and you start to see growth and value i agree with you charles on the financial side we had some pretty good earnings with the big banks for the most part. Some soso, i looked at top 10 age losers before i came down here, i saw a couple bank names Like Northern trust. You would still have to be very selective there . Absolutely. Regionals you saw coming into the beginning of this year took a huge hit. I really wouldnt be in small cap regional banks. I think large megacaps banks where you want to be because 6 all the ways they make money. Charles you like industrials. S p industrial index t was doing pretty well. Felt like you got all the fiscal programs out there that will pump all this money in. We see record breaking numbers on construction. All of sudden it started breaking down here. Is there, what is, what is your case for buying this and getting aggressive with these industrials . Well you pointed it out. Obviously the government is spending a ton of money on the infrastructure package got passed. Well start to see that kick in this coming year. Another reason why is the defensive stocks coming out. Youre seeing all these wars breaking out. That is in the industrial space. You see a. I. Being talked about all this year. You will need all these different Data Storage Centers a lot of reasons why you want to own industrials. I think it is a long story. Only started 3 yeartodate. Charles we can see were making a move through the 200day moving average. I mike the industrials too. Im overweight industrials, overweight materials as a counter to those tech names. Before i let you go, jay powell, you know, just six fed speaksers today starting at 12 noon. Jay powell tomorrow. What pru expecting . Listen they reiterated 2 target. Charles they didnt say when they had to get there, though. Do they have to bludgeon this economy to death . Do they realize between the lag effect and all the other things that happened can they let it happen. Can they let us get there when we get there . They got it wrong last year. I think theyre trying to make sure they dont get it wrong again. I think it is higher for longer, rates are going up. Charles you think they hike some more . I think so. If you look at the unemployment numbers, different growth numbers, energy will be moving up. Yeah i think you have to raise because theyre looking to target 2 . Got most of it right, mark. [laughter]. Hey, listen, one out of three that is not bad. Hall of fame. Charles not bad. Major League Baseball right there. Hey folks, look at this. These are two names looking after the close. They report, tesla, netflix. We have keith fitzgerald. He will break it down. Also the best media analyst on the street, laura martin is with us as well. So ive been talking about this economy for a while. Weve been talking about the stock market. Lets just talk about some things historically. Lets just say last october that was your low. Coming out of that bear market low the first year, this has been, really record breaking stuff. One of the lowest ever for the s p 500, only up 22 . There was only one year worse than that. Lower than that again. But some of these the worst ever for the russell, the worst ever. We hear talking about the worst ever for the new york composite. The worst ever. Dow jones transportation, one of the worst ever. The worst ever. S p financials, im sorry the financials, worst ever. The bank index itself, the worst ever. Coming out of this socalled first year of a, if it is a bull market, it has been pretty sloppy. So heres the question, is it a red flag or does it mean a chance to make even more money. I want to bring in Capital Management ceo, shana sissell. It has been a while. It has. Charles i know youre focused on this. Start at this end of the table, banks and financials, really sloppy, worst first year coming out after bear market ever. Is this a good thing or a bad thing. Im a little concerned. All the banks noted especially regional banks that rely more on lending activity there is no demand for lending because people dont want to pay the higher rates. Charles right. That is a major part of their earnings. So that is going to continue to weigh on the banks. I think if we see more certainty, where Interest Rates are, we know the fed is done we may see an increase in demand but until that point i think consumers are staying away from increasing debt levels. Charles russell 2000 small caps, everyone is wondering, so coming into the year, historically, coming out of these sort of economic environments, the russell lead, right . Almost. Charles last october, last december, last january, almost every guest said own the russell if you owned the russell youre trailing big time. Is this a buy situation or is this a red flag . I think this is a red flag. Nonearners in russell 2000 are at historic levels. So that for me is a red flag. I think there are some concerns there and i do think well have to see an earnings trough and im not sure were there yet. I think were too optimistic at 12 for 2024. We need to see an earnings trough. I think we need to see some economic softness before im in the russell. Charles the one thing i worry about the russell 2000, when the company is food enough they graduated. Yes. Charles they are saddled with higher rates. These companies will struggle when it comes time to refinance. Some of them may not be able to. Yes. Charles talking about the things you like here. Picked out some of the names at the top we got caterpillar. With a strong dollar doesnt that hurt them a little bit . I dont think so. As your previous guest pointed out we have infrastructure programs which caterpillar would be a huge beneficiary of. So caterpillar for me is a buy right now, whether or not they get business from china is not that important, given that they will have higher demand here. Charles i got a minute to go, get to another list, real quick, nvidia, rough sliding last couple sessions. Biden Administration Says no, you cant sell highend products in china s that an issue for you longer term . Would you hold the stock through this . I would hold the stock through this. As a matter of fact i would be a buyer on weakness. Very good company. Very strong balance sheet. Has more cash could pay off the debt tomorrow and still have tons of cash on the balance sheet. That is a wellrun company with no competition. I remain a buyer. Everyone gives me a hard time on this. Charles thats okay. I am too. Were in it together. Yeah. Charles 30 seconds to go why is this attractive investment at this time . I think fixed income will have volatility. If you have want a defensive positioning in your port goal on the downside, liquid alts will provide that. They will have that volatility. I think they will not provide the protection it mass in normal conditions. Great stuff. We covered a lot. Great seeing you again. You you too. Charles President Biden facing israel today. Facing what could be the biggest test of his presidency as tensions begin to rise. Dont forget about russia and china. They met also during this week. Wait until you hear the news coming out of there. We got rebecome can grant and gordon chang on that. It is a big day for earnings season. Laura martin will preview some of the big megacap names right after this. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. In a world moving toward clean energy and electric transportation. The future is in Battery Metals. Ion energy is a driving force poised to support asias booming Battery Metals supply chain. Ion energy. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. Nice footwork. Its happening. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Charles well, netflix is one of the Big Companies reporting after the bell and history shows the stock could move up or down, in a big way joining me now needham and Company SeniorMedia Internet analyst laura martin. Laura, im reading your 13 page report, taking notes. I go back to the front, it strikes me, 52week trading range 200 to 405. That is nuts. What is going on with this company. It is a binary company. Were figuring out if stream something growing business. It stopped growing in the u. S. The Writers Strike is over with very large Cost Increases for labor. The actors are still out on strike. Were trying to figure out whether streaming deserves its multiples today. Charles it is so interesting you said that, i dont know if you can see the teleprompter, you read my next three questions. The pandemic though at one point everyone was saying streaming streaming streaming. Disney took back their movies, they went online. Everyone assumed they would be a winner. They enjoyed outsized gains. We knew they couldnt last forever. You can see Revenue Growth around the world looks pretty solid but when you start looking at things like revenue per company, those sort of things, revenue per user that flattens out. What happens in an industry like this . Is there some sort of consolidation . Or just some names just not make it . Yeah i think both. I think what is going to happen is, well get rebundling back into the linear tv ecosystem. What these streaming companies didnt anticipate, if you have a direct to consumer offering you have to have lots of data scientists figuring out how to drive growth up. Your Customer Acquisition cost goes through the roof, churn goes through the roof. There is zero growth in the u. S. Which is the highest rpu per month area. We need netflix bellwether for streaming is, did they grow subscribers specifically in the u. S. Which is the highest rpu region, grow subscribers at all . Or only adding subscribers in the rest of the world, 8 average subscription base, versus 16 average in mesh. In which case the economics is not as good with the subscriber brace which lowers invested return on capital. Charles speaking of economics about it, they all hiked up prices a lot from initial launches. Hulu, showing most hubris, showing 18 a month. Is the model being like stamps and cigarettes, even though you have dwindling audience keep hiking the prices, if that is the case would you continue to invest in Something Like that . I think it is a great point because we have this thing called streamflation. The average streaming service is raising prices 25 . Deloitte says on average households have four streaming services. The gap, the price increasing between cost of streaming between the cost of your linear tv bundle which has sports is closing really quickly. It is possible we get growth again in the linear tv ecosystem as these streaming Companies Come into comcast and spectrum bundles because the price is getting really high for these streamers. Charles i got 30 seconds to go. I have got disney, amazon, apple, those kind of questions. What is the most important thing youre looking and considering with this whole space right now . Churn, average net subscriber growth and average rpu. Those are the three things. I care about regions. Netflix, where is the subscription growth coming from, and what is happening with the average rpu. Charles laura, youre the best, thank you for coming on. My pleasure. Charles coming up the market is always looking at the fed and these fed speakers. It is a lot to keep up with today. No less than six are speaking. Of course Everyone Wants to know what jay powell has to say. He will speak tomorrow. Luke gromen will handicap all of that and what is happening in the middle east for investors. 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Charles President Biden today in israel giving a fullthroated support to that country. Of course in the aftermath of the worst terror attack in that nations history. My next guest says that bidens presidency is on the line as americas credibility has already gone down tremendously under the current commanderinchief. Joining me Iris Independent Research president , fox news contributor, Rebecca Grant. Rebeccah, i woke up this morning, i dont know why, popped up at 3 00 in the morning. I dont know why. Im looking at stories, bloomberg has a piece, biden must salvage the mission. This is as he was landing in israel. I thought it was really amazing some were already saying he was in dire predictment even before landing . Because his National Security scorecard has been so bad. Afghanistan withdrawal, russian invades ukraine, chinataiwan, even the southern border. Then here comes this crisis. Make no mistake, he has to get this right. Israel has to restore their security and biden has to help push back against iran and their terror regime. He cannot fail in this crisis. Charles did he have to go over there though at this particular time . Pretty surprising move and you know does look very tired. I think the reason he went is to show that firm support and the difficult thing in my mind is it is going to take some time. Israel has to carry out very efficient but very extensive military operations in gaza to knock out hamas military capability. Biden and u. S. They have to give israel enough diplomatic top cover to do that and still come out with the abraham accord process intact. Charles listening to him today, i almost felt like someone had written his speech thinking about the squad to have been decidedly antiisrael. He did not mention iran. He also seemed naive about hamas, if they take this humanitarian aid there will be a price to pay. Of course they will take it. Should he be calling out iran and all these bad actors by name . I would love to see him call out iran more because even with this gaza hospital tragedy, you know the problem here is iran giving not only hamas but Islamic Palestinian jihad, all those other actors these longer range missiles. You step back, you clearly see irans terror tactics egging on the latest tragedy and biden is known to be conciliatory and perhaps even a little weak on iran. I would like to hear something stronger with that but he is treading a careful line right now. Charles yeah, between, president obama of course both wanting that jcpo so desperately people wonder if the concessions they made have been catastrophic. He cautioned israel not to be consumed with rage. What is he trying to say there . Many believe there is pressure already on israel not to go forth with the plan. Listen were going to eradicate hamas. Well make sure this never happens again. That is a scorched earth kind of approach. Many in america are already asking them to sees fire . Ceasefire. I think there is no question israel has to go ahead and eradicate the military capability there inside of gaza aint frankly see very strong u. S. Support. The two Aircraft Carrier groups, marines in the region, the weapons supplies, this is definitely u. S. Is still supporting a military operation by israel but israel has got to play by the rules of war in order to maintain the u. S. Support and also of course support around the world. Well speaking of the rules of war, the idf immediately providing evidence yesterday that the hospital tragically hit by a stray rocket came from Islamic Jihad. Still many in the western media, outlets here are equivocating, still not sure, wondering still out loud. Israel says we do play by the rules of war and already from a Public Relations point of view theyre having to defend themselves . Right and truth is the First Casualty of war, no question. I think its a pretty plausible technical explanation that it was a hamas or Islamic JihadMissile Launch gone wrong. That ended up hitting back on to the hospital. But i say, charles, israel has a lot more fighting ahead and we all need to be on our guard watching for manipulation of incidents and all kinds of things like that. Weve really got to be careful in what we listen to. But remember, it is hamas this time that really changed the nature of this conflict and carried out all the brutality. Israel had no motive to carry out any hospital strike. Charles sure, we do know not unusual for 30 of their rockets to miss their targets by a long shot. Rebeccah, thank you very much, appreciate it. Thank you. Charles so the horrific terror attack on israel has taken the focus off of china but i can tell you president xi is still pushing ahead with his agenda including the belt and road investment initiative. Joining me the author of the great u. S. China tech war, coming collapse of china, gordon chang. Gordon, 10year anniversary of belt and road. They had this huge event in china. They apparently lent out a trillion dollars. They will lend out another 100 billion. This sort of diplomacy, this form of diplomacy, some call it a shakedown, what us did it mean for the rest of the world . Well, essentially what xi xinping is trying to do is convince the world china is the future and thats why they held this belt and road forum on the 10th anniversary. Had 130 countries participate and most notably Vladmir Putin because there they said to the world that their partnership is as strong as ever. They will take on the International System which they say is unfair but they dont tell us why it is unfair and clearly its not. It is the existing International System in place since 1648 that countries want to be part of and china and russia have yet to make the case why it is, should be destroyed. Charles there has though been a lot of talk, especially since russias invasion of ukraine. Russia being cut out of the some of the Financial Systems out there, of, enhancing the bric involvement. You had a bunch of countries, rather, who were saying they want to be part of this, if they all are accept the. It will be a huge organization, they will have a large chunk of the young educated people in the world. What should we be doing to push back on this argument . Well, you know with theistic the brisks i dont see it as much of a threat. You have so many countries with interests adverse to each other. For instance, india is there. India and china have this terrible territorial dispute. They are, they consider each other adversaries. Tensions are getting worse. Bricks there are a lot of people represented by organization. I dont think it is an Effective Organization but not a challenger to the west. If looks fear some, but in reality, i dont think so. Charles talk about chinas role and what is happening in the middle east right now. How culpable are they and what are the stakes for them . Certainly the stakes are huge, because i think xi xinping felt this was going to create chaos. Like his hero mao tsetung, xi xinping believes chaos supports chinas ultimate goal taking over the world and they are culpable. Remember hamas is a proxy of iran and iran in many respects is a proxy of china. Iran could not challenge countries in the region were it not for chinese money. Remember china is their largest trade partner for 10 consecutive years. They have that Strategic Partnership deal they inked two years ago, 25 years, 400 billion. So clearly the chinese want to make sure that iran can destablize the region. We should be holding iran responsible as Rebecca Grant just said and we should be Holding China responsible, just as we should be Holding China responsible for ukraine for supporting the russian war effort to the hilt. Charles hey, before i let you go, i have got 30 seconds. Yesterday the administration cutting sales of advanced a. I. Chips to china. Is that enough . Would you like to see more of that . Yeah, that is certainly a move in the right direction. The loophole that they closed should never have existed in the first place and clearly they need to do more because strategically and morally we should not be helping the Chinese Military become more capable to kill americans. Charles gordon chang, thank you very much. Thank you, charles. Charles all right, folks, coming up david nelson says even in this challenging economic environment there are so many opportunities brewing in this market. That is what he gets paid to do. He sifts through all of this to find some things. First the fed is preaching soft landing or at least theyre trying, softening their stance so far. Luke gorman is with us to see how it will impact this market with his outlook next. 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Maybe well rally back above here and possibly could test a new hire. I want to bring in ftt, llc, founder, president , luke gromen. Talk about this oil, i remember years ago there used to be 20dollar, 30dollar geopolitical risk premium, right . We dont get that anymore but do you think as these tensions continue to grow and expand crude oil will respond by going higher . I do. Ultimately when you take a look at who these tensions are with, when you really sort of dig behind, its russia, its iran. Russia, iran, are in total 23 of the global oil export market. If we wanted to sanction even 1 5 of that amount of oil or take 1 5 of that amount of oil in the market, the price of oil would be a lot higher where it is today. Whether that is us, Weaponizing Oil, to try to punish one or the other or both, or, they Weaponizing Oil to try to use it as a weapon against us, et cetera, either way, it would suggest oil prices probably could go significantly higher depending how events unfold in the middle east. Charles our friends in saudi arabia wouldnt come to the rescue . I was being a little facetious there. Being facetious. You also like gold. I saw a chart earlier today of gold. I like gold, when is the breakout going to come . It acting pretty good, it looks like it is back on script. But is this move weve been waiting for 10 years . I think it very well could be. Were getting into a situation where the u. S. Is firmly in fiscal dominance. In other words rising rates are driving stronger growth and higher inflation and thats, its, it put us into a tricky spot where the fed tried to get too aggressive with rates in a situation that didnt allow for it. They needed to get that lower. Were moving toward a debt problem in the u. S. Pretty notably. Youre seeing it in yields. Thats a really Good Environment actually for gold. That is the best environment for fold, a highly indebt th we got recession coming up bank of america up 40 . Goldman has been low all year long, 16 . Consumers, 69 chance. Economists 48 chance. Yield curve saying 61 chance of a recession. Federal reserve says there is zero percent chance of recession. The irony they will push us into recession but how do you see all of this playing out . It is a really tricky economy right now for a couple of reasons. Things that never happened before. For starters the baby boomers have call it 30 trillion plus or minus in net assets. They want to spend a lot of that before they pass on. And they dont care what rates are. So that is, is, a positive impulse for demand that is i think pretty steady, if anything that is accelerating. Then you also have a very unique scenario where you have the u. S. Running a fiscal deficit on a trailing 12month basis of 8 of gdp unemployment at 3 that never happened before. The only other times it was even close where in 1968 under lbjs guns and butter. We know how that worked out in terms of inflation, et cetera. In 2019, it happened again. There we also had sort of the brief covid crash followed by money printing and a significant period of inflation. So to me, i think the economy, it is going to be really hard to have a recession with deficits at 8 and unemployment at 3 1 2 . It sets up this really tricky environment where everythings going to be fine and then we could have, if the fed keeps pushing things, i think the breaking spot is in the bond market. Could you have a bond market accident. Which case you probably will have a brief recession, hard landing, crisis, et cetera, but unless the fed is willing to stand aside and lit the treasury market dysfunction theyre going to have to come in with liquidity then, then well be right back to where we were in terms of inflationary impulse after the aftermath of the covid criess higher inflation, higher prices et cetera. Charles we dont have time for that. 10year yield trending higher 48 weeks. This is interesting stuff. You go back to the 60s, what jim grant says, a secular bear market in bonds. I dont know were ready for that. Luke, we appreciate it. Folks it is almost here. You can hear the clock. I think when i was in the military, doubledigit midget. Only less than 100 days left in the service. Were down to a single digit midget my man, tomorrow the special edition of making money, unbreakable investor happening here 2 00 p. M. Eastern. We have two superstars, evander holyfield, annie duke will join me. Not too late to get your free ticket t will be a great day in new york. Eventbrite. Com, search for charles payne. Already it will be phenomenal. All based on my new book, unbreakable investor. You can get a free copyright now, all you need to do, by the way it is free. You cover shipping. Go to unbreakableinvestor. Com to get your copyright now. Well be right back. adventurous music be ready for any market with a liquid etf. Get in and out with dia. Charles well no cp effect today, folks. Markets are weighing down on a litany of reasons and issues. I want to bring in bell point chief strategist david nelson. So, david, a couple things that happened today. We of course happening in the middle east. Getting you know, more intense, that doesnt help. Earnings, United Airlines down, jp hunt down, Morgan Stanley down and just minutes ago we got the beige book out which doesnt necessarily move markets but this one may have because theyre saying the declining Consumer Travel and leisure, they make big note of that bookings. Com down 100 a share. So that is top of ual, united missing or giving poor guidance. We keep hearing the Financial Media saying one thing. I keep hearing corporations say a different thing. The market is doing the math. And to your point, cyclical trade is struggling today, but i think the market looks at events in the middle east. It sees that were expanding into a new conflict. On the heels of ukraine. Eventually in the indough pacific. Eventually that means more bonds coming to market. That means higher rates. Higher rates generally mean lower multiples and a selling signal for stocks. Even with all of that, charles, i get it. There are a lot of elephants in the room and theyre all getting bigger. There are things you can do in this market. We have weapons that are disposable. Charles i want to ask you about that, first you mentioned these bond yields. We had a 20year auction. They raised 13 billiondollar but had to do it highest yield ever for the 20 year. Im like last week. Charles thursday, friday. Thursday was 10year, last friday was 30 year. Unmitt greated disasters. Again this market every time it felt it was coming back that same scenario plays out. I mean, is there any chance that the governments cush spending or we keep going full steam ahead . That keeps the fed in play too, right . The fed is trying to solve a problem they cant solve. A lot of it is on the fiscal side. Deficits trillion annually, trillion every six months and higher. Obviously something will have to change. It will take an election to do that but we have opportunities here and charles so talk about those. We have a defensive weapons we had for 15 years. Park your money a tbill, better than 5 . I dont care what you do with the other half. Take as much risk. By bitcoin on tech stocks. That is side is down 20 , youre down Single Digits to the doesntside. That is liveable, recoverable, a risk reward matrix i buy into. Charles you did add one stock to your portfolios . I should have waited today. It is down pretty hard. Parer hannifan is called now parker. It is boring filters, things like that, it is an industrial company. But these are Mission Critical items. Even here there is an a. I. Story. They are rolling out the ability to identify things that will fault in advance. A lot of companies will buy into that. Charles i loved Parker Hannifan for years, on and oaf, at least 20 years. Amazingryly run company. We talked about industrials in the beginning of show. May not the worst thing in the world. David thanks a lot. Thanks for having me. Charles folks well be right back. Charles all right, tough sledding in the market today as the 20year bond auction, i just mentioned, hit the highest yield ever. All the other things, united earnings, morgans earnings and j. B. Hunt, this stock is getting creamed on earnings. 9 and heres one of the most interesting things they had to say, we are not yet at a point where were saying were out of the freight recession. And, you know, what bothers me, what really is nuts about this, you keep hearing how strong the economy is and how great the consumer is. You dont see it in United Airlines, j. B. Hunt. This stock was making a big move, and its getting hammered, just absolutely hammered today. Now, for in the the real earnings season though, obvious, doesnt begin until after the close. We talked about this earlier, netflix and tesla. I want to bring in keith fitzgerald. Keith, all eyes obviously on earnings after the close. Before then, i just want to get your general sense of this market, assess whats happening with this market right now. Well, the market is, you know, to davids point just a moment ago, doing the math. Its uncertain. It doesnt like uncertainty. The war in the middle east could widen that danger. If the fed follies, boy, thats out of control, and then, of course, a litany of negative news. Its highly technical. It does not disturb the longterm Business Case for the right companies. Lesser companies are getting shellacked. Charles lets talk about two companies that have large are, big beta names, they report after the close. I want to start with tesla. The last time they reported, they beat by 12 cents. Nevertheless, the stock was hammered 10 that day, over the course of the week still down almost 10. Prior to that, it missed by a penny, it was down 10 points that same day, down 16 in just one week. How are are you handicapping this one . I think theyre going to come in, options were looking at a 6 8 i move. I expect everyones going to focus on volumes, discounts and deliveries. To me, thats an opportunity. In fact, im e hoping were going to see some weakness because if im smart enough, im going to be buying. Longer eternal, everybodys coming into the annuities, its going to be a charging network. Betting against musk is absolutely the wrong move. Charles its one thing to miss and the success goes down, and theres another thing to beat by 45 cents, which netflix did last time. You see the headline come across. If youre a new investor, youre happy. If youre an old investor, oh, boy. It was down 8 that day, 11 for the week. Prior to that it was also down. So this is a tough one, right . We had laura martin on earlier today, the best analyst on the street when it comes to this, is it worth owning a stock into the close . You know, thats an interesting one to me because, again, the longerterm picture, thats where real investors need to concentrate, charles, a company thats doing great things, its got great video content. I dont personally own it, but forget about the shortterm noise. Either you believe in the Company Going forward or you dont. Thats as complicated as it needs to get. If you can get around the shortterm lottery mentality, it seems to be creating prices. Charles you really preach that, preach that, preach that. A good ca case study staying the course that you always preach is palantir. For the last couple years youve talked about it, im not sure when you initially talked about it, but i do know the stock was getting hammered around 56, and you kept saying, no, you buy this stock. Up about 300 from there. Are you Still Holding . Yes, as a matter of fact, and thank you for remembering that. Its nice to get one right. This is a tough business. I have not sold a single share of palantir, in fact, i think the company is poised to go a lot higher. There are very few companies in the world that even come close to what its doing, and they are absolutely the crux of the warfighting effort, the peacetime effort, at medical technology, any number of a dozen things that are playing into a. I. And our world as it goes digital. Charles its always great and reassuring to have you during these periods. Youre a longterm investor. Its a tough path right now, but this is how we get through it. Appreciate it. Thank you so much. Thanks, my friend. Charles all right, folks, again, my special is tomorrow. Youre to going to definitely want to watch that. But the next hour in trading is beginning to be bumpy, buckle up. Heres liz. Liz just a quick note, charles,