This is making money. Breaking right now lots of confusion and anger in todays session. Major indices holding up despite the superhot ppi number and a big miss from home depot but wall street elites are really cursing the move in meme stocks. Not again plus this hot stocks that are benefiting from the baby boom spending. By the way that is not going to stop. You might as well ride the train. We have congressman Burgess Owens with us. He will explain what theyre trying to do to lower the cost of college. Unfortunately theyre getting a lot of opposition from a lot of folks who were the architects of this spike in the first place. My take on china, playing President Biden like a fiddle. All that and so much more on making money. Evolution, revolution, rocket to the moon politicians say more taxes. Stop everything. And the band played on. Charles everybody remembers that great line from the temptations, ball of confusion. I got to tell you, it really seems appropriate for todays session. Think about this ppi soars this is the core ppi number here today, man you would have thought folly that would have sent the market a whole lot lower. But it didnt. Then there is home depot one of the biggest name out there in the retail side. Not only did it miss but gave lukewarm, almost really awful guidance. What happened with the s p retail etf . It spiked. It is at new high. Go figure. While wall street loses its collective mind over people stoxx, by the way this meme stock thing is not about fundamentals, it is not about a risk management, it is a philosophy, it is a battle and does not go away. It is only going to intensify as it festers on the sidelines from moment to moment, year to year. Because for a lot of americans the power brokers and elites that they work for, they just grow fatter on government largess, Monetary Policy the bottom line wall street is upset about that . Im really more confused about this session. It is also confusing for more reasons here to be honest with you. So wall street is getting out of cash. All the money cash is paying, they have been getting out of cash. It actually peaked in october 22 obviously when the bear market stopped and they have been putting the money into stocks. So their cash allocation has come down a whole lot. Here is another thing that is interesting, because it feels like wall street says, hey, this rally has to reach a certain threshold. Albeit the twoyear anniversary, not too long from now, so far, so far, this 41 gain is runofthemill which is below the average of 55 by historical standards. Confusion, jay powell he spoke today. He said he was a little confused by the mixed messages of the ppi report. He of course really confused, remains confused on the stalled progress on inflation. He is pleading with everyone, please be patient. Joining me now, niles Investment Management founder, portfolio manager, dan niles. Dan, have you come to grips with the possibility of no rate cut this is year, and if so how would the market react . Can we still rally without any rate cuts . The answer is yes. Weve been saying it for a while that the odds are pretty high that we get no rate cuts this year because i do think inflation, because the economy is strong and the supply side is somewhat restrained that you could end up in that situation. Now, if thats the case, i think the market can still go up but youre going to have be highly selective. Youre seeing it this year. Thats a great thing for fundamental investors like myself because, then, it is not animal spirits that are making everything go up or everything go down. It is actually fundamentals. You can look at a tesla this year where the stocks down almost 30 or an apple where the stock is down you know, a few for the year and compare that against an amazon or an nvidia or, you know, meta, where those stocks are huge and it is really driven by earnings. So thats a good thing in my view if we dont get any rate cuts this year. Charles so heres the thing higher for longer was supposed to be kryptonite for growth stocks, right . Because last summer when it got into the lexicon so to speak thats when we had the big swoon until october. How do you explain the street now okay with higher for longer or just because it is high for longer . Well heres the thing, you have to again get really selective. So it is higher for longer really kryptonite for stocks that have my multiples with no earnings . Absolutely. So these socalled innovation funds that were all the rage back in 2021, they have absolutely gotten destroyed since then. Now if youre saying higher for longer for some of the most Profitable Companies in the world, so, you pick a meta or a microsoft or you know, google, et cetera, it is not kryptonite for them. Given a. I. Is really core to a lot of their businesses and a. I. Is a real thing, its going to continue to change the way we do business much like the internet did 30 years ago, then that happens to be impacting the biggest, most Profitable Companies in the world. Thats a very big difference. Thats why for us entering into this year two of our top five picks for the year were amazon and meta because our belief a. I. Would really help those two out and it really has. Charles right. And ive got your longterm likes here on the board. You mentioned amazon and meta. Nvidia reports next week. Microsoft has been you know, just doing very well. Have you started following, im sure you follow the super micro, number stock in the s p today . Whats a name like that that looks so enticing as well, would you be interested in owning that . Absolutely not because my simple rule is this. How much value are you adding . You look at super micro, their margins, their Gross Margins have done down for five quarters before this most recent one. When they reported think guided down the next quarter for the Gross Margins. Were talking midteens i believe Gross Margins. You compare that against, you can use a Gross Margins as a shorthand how much value are you adding. Right. You compare that against a meta or google where you have Gross Margins sitting in the 60s, it tells you the difference between those in a very big way. Even simpler way to think about it, super micro is taking a bunch of component from other guys, putting them together and reselling them. So you know, theres nothing wrong with being, being in that name when it has got momentum but what i would tell you is that from a longerterm perspective i think theyre going to have some issues. Doesnt mean in the short term like with gamestop, right . Animal spirits cant make a stock do anything it wants. Gamestop was up 74 yesterday. At one point today it was up over 100 . Much like that you get momentum behind a name anything can happen. From a longterm perspective thats why i dont like it. Charles i got less than a minute to go. Companies that you dislike, apple, tesla, and google, alphabet, wall street was warming up a little bit to alphabet. Why dont you like it yet . Well, mines really simple. It is called math. 93 market share its, they have 93 market share in search. So the question you have to ask yourself, charles, is if they have 93 market share in search you think all the billions that is being spent by other companies on generative a. I. Can eat into 93 market share . And if your answer to that is yes, thats one of the reasons why short term we like apple because we think apple will team up, potentially with somebody else obviously chatgpt openai is the one thats been rumored, that is going to be another data point that googles 93 share is going down and for me i dont like those types of situations because thats going to create a problem. Not today, not tomorrow, but you know, five, multiple years from now. Charles right. Thats going to be an issue and from a longerterm perspective thats probably a problem. Charles all right. So you heard it hear boys and girls. If you want your own firm with your name on it you better learn math, first and foremost. Dan, congratulations by the way on the new firm. Talk to you again real soon. Thank you, charles, appreciate it. Charles wall street quickly circling the wagons in this mornings ppi report saying nah, it really doesnt matter. If 2 came in below consensus there would be confetti everywhere, right. In his may report, my next guest had a few factors for the rebound weve seen since april. I want to bring in bahnsen managing Group Director david bahnsen. You have a few things, acknowledgement the fed is done with rate hikes. We may not get cuts but this wont be any hikes. Financial markets, liquidity, good fundamental backdrop for corporate profits. I guess the only thing i would wonder the cpi tomorrow if it was hot, how long can jay powell stave off the notion maybe they have to hike rates . They dont have to hike rates because the Inflation Numbers are not going higher this is all about the shelter number. It is all about the way theyre measuring rents, which is a good 14 to 18 months behind real life. No web getting a new lease at a new apartment believes rent prices are up 6 over what they were a year ago. That deficiency in the fed number charles wouldnt that depend where you live though . There is no market, look at National Apartment list, look at zillow, realtor. Com, there are six different real time metrics we use, all have anywhere from plus three to minus three. Theyre measuring at a plus six and 34 of cpi. I believe the real cpi number over the last couple months everyone calls hot is about 2. 3 and going lower. By the way the ppi number everyone is calling hot. When you took the revision of the last two months it was charles you do that all the time. Wall street picks and chooses. What do you mean wall street . Investors in the bond market. Charles the folks that sort of chattering class, that sort of give a chance to immediately pounce on these sort of things, always seem to say hey you know what, buying these things make it good or bad depending where we are. Yeah. Charles i feel like we get set up by that because, like tomorrow, if the number is hot, i think it is going to be hard to argue that away. Well if the number comes in by hot higher than expected. But again, you have to look to the bond market okay . This is not maul street, this is not wall street or chattering class. Charles bond is really high. 10year yield still relatively high. A year ago most people were saying the bond yields would be under 4 . Yeah. If you get a 4. 5 or 4. 4 10year and we think thats high, thats pointing to inflation, to me if we dont get nominal gdp growth of 4 to 5 for the next 10year we have very big problem. Charles if you were at the fed you would be cutting rates . At worst case you would be holding in line. The reason he will end up cutting this year, the reason why i would cut is what no one wants to talk about. They know there is a cliff of trillions of dollars of debt resetting its rates, bank loans, leveraged loans, commercial real estate. Everybody borrowed at low rates, some of those rates are coming due. If they think they have got a soft landing so far thats soft landing goes away real quick if rates have to come higher resetting those loans. Buybacks is coming down as percentage of the overall composition of the market. Dividends are holding in there pretty good. Youre a dividend guy. Is it time for dividends to shy . Will, you have your own ways of finding your own growth ideas but in general the dividend play overall will this become more attractive for investors . Unfortunately i think it will and i dont want that. I dont care what everyone else is doing. I care what were doing. I dont want to know people of great pockets of opportunities. We like to be in more unpopular sectors where better returns can be found. Charles right. Here is the thing, nobody was buying stocks that were buying back shares because they consciously viewed it as a way to get cash back. The fact that is coming down now will not be immediate substitute for dividends. Ultimately why dividends work because they come from better companies. Charles right. Then there are people who need the dividends. You cant eat stock buybacks. A dividend is real cash in your checking account. So there is a mechanical benefit that more and more people aging, retiring need. Charles right. But ultimately there is no question that stock buybacks are used as a way to Fund Employee compensation, executive compensation. It has not been a way to reward shareholders. Charles i owe awe lot more time next time. Great stuff. Appreciate it. My next guest says were stuck in a game of tugofwar but there are pockets of opportunity there. Nicole web is here to tell you the public whether you can trust the system. Well be right back. Did you ever worry we wouldnt get to enjoy this . [jeff laughs maniacally] inner monologue seriously, im on the green and all i can think about is all the green im spending on 3 kids in college. With empower, i get all of my financial questions answered. So i dont have to worry. Empower. Whats next. Choose advil liquigels for faster, stronger and longerlasting relief than tylenol rapid release gels because advil targets pain at the source of inflammation. So for faster pain relief, advil the pain away. At st. 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My next guest is a certified Financial Planner and the very symbol of trust. I will bring in Wealth Enhancement GroupSenior Vice President nicole webb. Look at you, you just look trustworthy. Thank you. Charles what do you say someone walks in your office, ive been grappling with this, i do want to get involved but i believe the market is rigged . Our firm stands right now it is an Incredible Opportunity if youve been sitting in safety you can actually buy into these dips. So we had kind charles what about just, the institution or the investing in the market itself . No. You know, that actually isnt the sentiment that were hearing all too often. I think there is a lot of confusion and frustration whats to come after the election. More often than not from planning perspective were talking about a tax reform, impact to it for the American People. Charles right. On the heels of that state tax reform. When you look at government deficit and some of that, there is more concern how much accumulated wealth is actually going to be towards future taxation and how one thinks in the face of investing today to offset that, from a stewardship perspective. Charles thats a great point, thats a great point. More near term, earning, the mothers milk of stock market rallies this is over the last year, earnings estimates for 2024, obviously they have come down a lot but more recently have been moving higher, still below the 2 2. 45 a year ago. Will earnings be Strong Enough to keep this rally going . Yes. Generally analysts are 3 to 5 too bullish on eps projections for the year ahead. To look on a 12 month rolling basis to us were flat is really a strong indication. When you pull the graph forward even further were seeing some incremental uptick to eps expectations all the way to 2025. Baked into the market i think there is strength and resilience there. Charles lets talk about the hot areas, or what has been the hot areas. In fact a lot of criticism about this rally it has been only a handful of names. All these names have struggled these are names you feel comfort with . Yes, think think are Interesting Times where you have ownership in big tech, you think about google and impact of competition, you had a guest on speaking about this, their Business Today exists on the heels of search. There is more search competition coming weve seen that were binge and meta right. So again when you look at future Growth Expectations for something similarly priced amazon to apple, that future Growth Expectation lies within amazon, not necessarily apple who has been spending more time doing stock buybacks, actually really needs a huge purchasing window charles although i will say 110 billiondollar thing blew me away. Yes. Charles 6, 700 billion in buybacks i would rather see them invest in a. I. Research. Yes. Charles you talk about being a conservator of all this money, old folks have all the money right now, it will be the biggest transfer of money, before they transfer this money they have a lot of fun. These are pretty big idea, baby boomers are spending they will keep spending and certain areas keep benefiting. There are a couple things really cognizant. Baby boomers hold most of the wealth. Charles right. They are benefited rates being higher, they are not using leverage and back to something i mentioned earlier they are concerned about taxation and estate taxes. They are spending and forward gifting of that money. We look at names like the cruise industry. Charles royal caribbean, hilton, mgm. Travel it is all back. It is on heels of people benefiting from higher for longer. Charles we have only 30 seconds, but what are you concerned about . Sounds like it is pretty smooth sailing in your mind now . Im concerned about the bifurcation of the consumer and when that comes to a head. We heard signaling noise from the likes of mcdonalds. Charles right. We heard it determine earlier from the dollar generals, youre seeing fast fashion is not fast fashion anymore, youre seeing fast trends from a consumerism perspective. I think there is a bit of right now the consumer is saying overall that they are concerned but their behaviors havent matched that. We know that from visa, mastercard data, but that could roll over very quickly and start to trend upwards. Charles this last Consumer Credit report came in substantially lower than expected. Only 150 million in credit debt. That is usually in the billions. Maybe it is starting to happen already. Exactly. Charles thank you, nicole. The market barely batting an eye when it came to the data we talked about this morning i have two guests who are coming up on this economy including anika who says hang in there. She will explain why she is not too worried either. Well be right back. luke this will be a gold mine of local intel. Just you wait. marci right. So, tell us about this corn festival . stylist 1 oooh you got your corn pudding. You got your corn chowder. marci so. Is it safe around here . stylist 2 sometimes. luke if a family of eight were to need a cold plunge, where would they find it . stylist 1 . And then they dip it in butter, then bam, it goes right in. stylist 2 . Really cute vampire bar. stylist 1 the reverend does like a blessing on the corn. luke donut shops. How far from here . marci no eyebrows . luke think of how light itll feel in the summer. Weve got to run. Eleven thousand more neighborhoods to go vo ding dong homesdotcom. At enterprise mobility, we never stop looking for new mobility solutions. Because sometimes the best road forward, is the one you didnt expect. After last months massive solar flare added a 25th hour to the day, businesses are wondering what should we do with it . Im thinking company wide power nap. [ employees snoring ] anything can change the world of work. 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But theres no magic involved. dog bark its just smarter, healthier pet food. Its amazing what real food can do. grandpa vo im the richest guy in the world. Hi baby woman 1 vo i have inherited the best traditions. woman 2 vo i have a great boss. Its me. man 1 vo i have people, people i can count on. man 2 vo i have time to give grandma vo and a million stories to share. grandpa vo if thats not rich, i dont know what is. vo the key to being rich is knowing what counts. Charles all right, so this morning we saw a ppi number come in hot but street has been able to rationalize it. You know the revisions, other factors. Its a nonevent, right . Ironically the cpi has been a lot less impactful. This is usually what the market does on the day of the cpi. You can see over the last year. It has been moving a whole lot less. I do believe the stakes are higher after this morning in the hot, not so hot ppi number. This is what were looking for, were looking for the core cpi cool off a little bit, maybe turn here a little bit. Of course a hotter than expected report could have a major, major impact. In short there are a lot of areas of economy we touched on a little bit that is re sensitive right now. One is cre, commercial real estate. Also regional banks, they have really a big correlation. They usually move 2. 3 . You have got homebuilders usually make a big move, semiconductors make a big move, real estate makes a big move, you do have certain sectors really are on the precipice of maybe coming down a lot if there is a big, big miss, if it is too hot, right . So we think about that and then we say okay, think about the banking crisis because, it really never really went away. In fact, youve got double the amount of names right now that are exposed to cre since 2006. So its a much bigger potential ticking time bomb than you would have thought. So with all of that in mind i want to bring in chief economist aneeka trion. First there is a lot of talk today about the difference between the ppi and the cpi number. I would rather talk to you though about the difference between the cpi and the pce number. We know now pce is what powell and company is looking at and the really big thing is housing. Housing is 23 where cpi it is 42 . One guest says shelter costs are much lower being reflected in the data. Your thoughts . Yeah. Well it is, it is all about housing and the reason it is all about housing powell actually spoke in amsterdam today and he said something quite new and what he said was look, he called the ppi a mixed bag. That is not what people would have expected and what he said was, while you have goods inflation, you have got Services Inflation and youve got housing inflation. Now the goods part seems to be under control. Services less so and housing is around the edge. Given how late, how big of a timeline there is in terms of the impact of shelter costs and how that is related to Interest Rates its really important and that is, certainly a risk factor in the inflation prints. Charles right. On the other hand though, you look at the pce, medical, right, medical care, 22 versus only 9 for cpi. Ironically i dont see medical care ever going down . True, true and thats what, you know, we can either call it the last mile of inflation or the broadening of the sources of pricing pressure and thats what makes this whole thing quite complex. The sources of inflation over the last one, two years, have been broad. It is not just about services. Its not just about housing. Its broader to your points but i think again echoing what i said earlier the way that powell is changing his rhetoric which i think you know many Market Participants can learn from this, lets finally start looking at the world glass halffull. The fact that the economy is so strong, the fact that the labor market is so strong, consumers are willing to spend. They are not overleveraged at least in an aggregate sense. Lets celebrate this. Yes, that causes inflation to be higher for longer but for a good reason. Charles so then i want to talk about economic risk then right now with you. We have economic risk from your notes, youre concerned about household delinquencies, Energy Commodity prices and another potential banking issue which of course as i started this segment off with, a hotter than expected cpi number tomorrow might add to that fear. Can you rank them for us, just how pressing they may be at this very moment . Obviously the Energy Prices is very much politically charged and there is always these black swan events. Interestingly the last times weve seen these black swan events with escalated issues again the markets reacted quite benign. Off the three Interest Rates commercial real estate, and therefore regional banks, thats a major one because commercial real estate is not only hit by higher rates which is a very slow ticking time bomb like you said because of the time lags and locked rates, et cetera, you have also got the sustainability aspects to it, the energy labels, you have a lot of stock which means a lot of investments. Charles right. You have got the supply demand dynamics. Offices, working from home, retail, online, its complex. Charles it really is. Thats why we bring you on, anekka. To help us out. Thank you. Charles i will be thinking about you when the cpi number drops tomorrow. Great. Charles my next guest says really doesnt see recession but there are some risks again, well leave them up there. Household delinquencieses, commodities, energy. I want to bring in laura roehm. I want to go back with this number this morning. Immediately the chattering class, they circle the wagons, they kind of talk down these sort of things. Whenever there is Something Like this normally would rattle the market, i think theyre effective short term but we might be missing something here. Should we brush off the number completely . I dont think we can. Weve got a problem. Inflation is too hot and what i see analysts and to some extent markets cherrypicking data when you have really a wide swath of higher wages data, higher Inflation Expectation numbers and also within the cpi data. Youve got goods prices, yeah theyre lower but we announced a lot of tariffs on goods. Charles right. We got goods, services, not just rents. It is a lot of other services, you, i, every other household in america are observing in the monthly budgets. You really cant cherrypick. It is a whackamole. It goes away in one place, 307s up in another, you need to look at the overall picture as too hot. Charles with that in mind powell spoke as anika just mentioned, it feels like he is threading the needles. He is loathe to say anything about rate hikes but he had to push rate cuts off the table. He did that again today. How much longer can they do that if the number remain this is way . If these numbers continue to come in elevated . I think they can wait a long time with Interest Rates where they are. That is one of the reasons why i think jokingly every three months we roll forward. A couple rate cuts in the next 12 months. Charles right. That seems to be the rolling forecast. Charles something we can hold on to. I think well be there for a while. Charles no rate hikes . I dont think so. I think they would, you know, really rather just be patient right now which is fine. I think they have got the room. Listen if the economy slow as lot they can come in and really meaningfully cut. Charles right. All i see is more surgical. Like nip and a tuck. They will have to wait until the conditions are right. It will be later than markets are expecting. Maybe not even until q1. Charles so whats the biggest threat or potential threat right now for the economy as we go into an election . I think we mentioned a couple things. One of them is that consumer delinquency number. That is troublingly high given the economy is so strong. If i want to get in there, 30 seconds,. Yeah. Charles points to a bifurcated market. High school, less than high school, young folks, households making less than 50,000, they matter. Theyre getting hammered by these high Interest Rates but powells not going to do anything to adjust these high Interest Rates until it starts hurting rich people. We have this think of it in terms of the average slowing down but that bifurcation is really troubling. People cant pay the bills, credit score goes down. That impacts ability to spend seven years in the future. It is a credit story that thats slowly. We need to keep our eye own it. Charles great stuff, lara. I invite everyone to read my daily market commentary. I write it day and night there are a lot of ideas on there. Go to wstreet. Com. Plus im offering free copies of my book unbreakable investor. Go to unbreakableinvestor. Com. It is 30dollar value. You get it for three you have to cover shipping. Right now i have a major segment there on the fed and using observation. I highlight a Company Called toast. The stock is up big. Short sellers getting pummeled once again. David nelson said there may be a few short squeeze ideas on his radar too. Well be right back. Did i read this . Did i get eggs . Where are my keys . Memory and thinking issues keep piling up . It may be due to a buildup of amyloid plaques in the brain. Visit morethannormalaging. Com tamra, izzy, and emma. No one puts more love into logistics than these three. You need them. They need a retirement plan. 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Two what . Oh, what was that word . What word . Two what . What . Did you say youths . Yeah, two youths. What is a youth. Charles one of the best scenes in a movie classic, my cousin vinnie. Obviously the judge is perplexed when he mentions the two yutes, he meant two youths. My next guest says one youth playing utilities. David nelson is on the yute bandwagon. Im on the yute bandwagon. Quietly utilities became number one sector yeartodate. I dont think people know that. That is typically a warning sign. A defensive asset class. What you go to in a recession, what you go to in a bear market. We know a. I. Is trickling down to almost every industry. What they were learning about the rollout of a. I. Well need power and a lot of it. By definition, that will expand the sector. Of the s p 500 likely going to five. Charles not just a red flag. The runway is just now starting . I dont think it lose its red flag status completely but clearly this is another dynamic going on. Goldman came out said they expect electricity demand climbing 2 1 2 for the next decade. Well have a electricity crisis. Were seeing brownouts and blackouts. They will make a lot of money. Some of the best things we had on the show, vista, constellation energy, they have been home runs. Charles grand slams. What do you think of todays session . It feels like the market, dave bahnsen had issue with me being powers at be but whatever magical forces are trying to keep the market elevated no matter what the news. Home depot laid an egg and Retail Stocks going higher. The ceo said consumers are going strong. Just talk a stock up but, how does this market stay elevated . Maybe it was in the data, because once again we get another revision kind of saves us. Then powell came out and said he doesnt expect to be hiking rates. Look, it is important. It is one thing keeps us going. In the end you tell me where rates are going i tell with you are the stock market going. Stairstep of rates pulls money out of the market. Charles even though pce is the one the fed uses . Theyre all important. If you have a superhot number and no revision well probably take a leg lower but by and large i think dan niles said it earlier this is stockpickers market. You get down in there. This is not the tide lifts all boats. If you do the home work you find things to buy. Charles if it is a stockpickers market stockpickers love nvidia. 1350 is the new target with the last Earnings Report before they report. Would you of course long . I am long. I may be regretting what we sold so far. A lot of us trimmed our position as we go into the number. Charles you dont want to know where i trimmed mind. Im bragging. Up 50 . This is not just a chip stock. A Company Coming out a better chip. This is systems company. A. I. Engineer cant easily replace this companied. Charles lds you like as well. I do. Every corner of the planet is a hot spot. This is not raytheon, northrop this is almost a Systems Engineering company. They do Mission Critical software. I use its as a pilot. If call a flighted plan. They pick up the phone every time i file a flight plan. Charles everyone picks up the phone with those glasses. Biden administration putting Student Loan Debt on the ballot. My next guest says things work on Real Solutions right . We have to curb skyhigh tuition. Representative Burgess Owens on that and so much more. He is next. Trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. Get an expanding library filled with new online videos, webcasts, articles, courses, and more all crafted just for traders. And with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. Trade brilliantly with schwab. So, what are you thinking . Im thinking. speaking to self about our honeymoon. 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Charles all right, folk, runaway inflation shares top billing with illegal immigration in america today, and my next guest is plague a bill pivotal role triesinging to curtail boast o both of them. Representative Burgess Owens, lets talk first and foremost about college tuition. It went parabolic after president obama kicked out the middlemen. Ill never forget, he bragged about that is and how prices were going to go down. Since then the federal governments rubber stamped every application no matter how crazy it is. Your committee has come up with ways to save tax pay ors taxpayers a lot of money, so tell us about it. Youre right, charles, i remember that day. One of my girls was actually going to college, and i realized at some point it would be a mess. What were doing, we have a focus on making sure we have transparency, and thats whats been missing in our educational system. The outcome. So were going to make sure we have, the Cost Reduction act is going to save, cbo came out with a number, 185 billion to tax a pay iers over 10 years by going through a process in which were Holding Colleges accountable not only to what the costs might be, but the end game, the product, what happens to our children when they come out of the system. Were excited about that, we look forward to getting more information out. Were making sure that education is a priority for us and we get, again, the kids coming out that truly believe in our country and function and be productive as this move forward. Charles its nuts. Yesterday the new york fed came out with a survey, people think college is going to go up 322. 5 in the 2. 5 in the next year. Interest rates through the roof, and im really glad theres a Bipartisan Team working on this. But the u. S st just not that, your committee has a report card grading the education department, you give the Biden Administration an f. We can go down the list of things that the Biden Administration has done. Keep in mind in the three years we have found nothing yet that they have come out aced on. Yes ahead on. F on antisemitism, f on the amount of debt these young people have when they come out. This is, again, why we have oversight, and thank goodness we have a committee headed up by dr. Foxx that is going to hold these colleges accountable. Everything were seeing, were going to have a conversation about do we need to continue to fund at the rate were funding some of these institutions hard giving us such a poor outcome. Charles im glad theres oversight to too, but complying with congressional oversight, by the way, the Supreme Court told him he cant bail out college students, and hes doing it anyway. Im not sure this administration cares about oversight so much. Well, today dont. Thats why this coming year s so important. We, the people, have an opportunity to right the ship, and part of this will make sure that the administration we have coming in will give us, first of all, give us enough in the house of representatives that we can hold these people accountable, that we can start pulling money back. Well get that done9 if the American People bring the right representatives to the house of representatives charles right. Before i let you go, and i only have 30 seconds, ive had economists who have been coming on for about a month or so insinuating and now out loud that they think illegal immigration has been a plus for america, some suggest its saved our economy. What are your thoughts . No, its a drain. Right now the report has come out that over 40 are not adding anything to our economy. Theres nothing that when we have chaos, theres nothing good about chaos. Dont believe that. We need to get back to the rule of law, making sure people are adding to our economy, and not taking away if from us. More importantly, respecting our culture, which is not happening now, and we need to change this. With President Trump and the senate, well get that accomplished, so im looking forward to that change of pace, for sure is. Charles all right, is sir. Im looking forward to trying to to get you on more often. Its been far too long. Thank you so much. Thank you, charles. Charles President Biden announcing 100 tariffs on Affordable Electric vehicles from china. The thing is we hardly import if any electric vehicles from china right now, and so with that in mind, many people are sort of writing off todays rose garden vent as a nothing burger. Believe event as a nothing burger, but it is a huge, de facto omission if admission that the zest to force feed a socalled climate agenda was not only misguided, but miscalculated as well. Remember, china dominates the ev Battery Supply chain. Look at that, all the red is all china, and that does not go away anytime soon, maybe never. And so, you know, every time theres news i always look at the stock market to see whats going on. To me, its the best bomb tore. So when President Biden talked about how things are going to work with charging station, e said, well, let me look at chargepoint. The stock is down more than 80 in the past 5 years. Talk about rare earth materials, all right, np material, thats a good proxy. Listen, they will never get the billions needed to really, truly dig for rare earths in this country, marley with the regulationses particularly with the regulations and environmental restraints, so maybe that explains why the stock still down more than 17 this year. Heres the bottom line, folks, china has played President Biden like a fiddle, and theyll find ways around this ev tariff just like they have with solar. According to a report in 2022 the administration, if you remember, they announced that they wanted a 2year delay on solar tariffs, and they were poised to take effect to allow for greater adoption of the technology in the united states. Well, its a moot point now. S p s p notes that solar are panel imports have absolutely surged. Look behind me. That line, thats 8322 in the last 82 in the if last 2 years, and these shipments ostensibly are from asia, ball of them really from chinese manufacturers who are operating in Southeast Asia with. Also during that time prices for solar panels declined by 50 so, again, American Companies are going to have a hard time getting in there and competing. In the meantime, the administration has made sure that a automakers will stop making interim combustion engines soon. Cafe standards are now calling for passenger cars that average 55 miles a gallon. How do you do it . You make a bunch of cars and add some evs in there. Trucks, 39 miles a gallon . Only in 2010 those numbers were 27 and 24 respectively. The american publics going to pay a huge price for this one day and realize what i i think e the white house her knows, in the immortal words of dj dj cal eleven, President Biden is plague being himself. Unfortunately, hes plaid all of us, because were going to be forced to buy these evs directly or indirectly from china, buy the materials like graphite, we cant have an ev without that, theyve got 995 of it. 95 of it. Millions of people in the fossil fuel if industry without a job, who knows. Ashley websters got your back for the next hour, hes in for liz claman. Ashley thank you very much, charles. Great stuff, as always. Good afternoon, everyone. Indeed, im ashley webster. Welcome to the most important hour of trade. Its the last