Money. So the market is on autopilot and investors are loving it. Lets face it, all news right now is good news. Thats until good things, you know [laughter] until its not, right . Bekno how that works. We know how that works. Ive got a rising superstar on wall street who says a pullback is due can, but it would be a buying opportunity. Shell explain. And i have two brilliant economists who are going to give us the unvarnished a assessment. And hes back, folks, the perm ma bull has raised his targets to the highest on the street, why brian belski thinks the markets going higher and how we get there. Dont miss my take on blowing smoke on the inflation crisis, politicians trying the make you look really stupid. All that and so much more on making money. Charles there it is. [background sounds] charles this is your captain speaking, the market is now on autopilot, right . Good news is good news, bad news is good news, mixed news is good news. Just sit back, relax and enjoy the ride. Take a look at this, short term, midterm, long term, it doesnt matter, all the arrows are going higher. The question, of course, is how do we get to this winwin situation in the first place . Because, remember, when the rally began coming into the new year, at one point wall street was thinking about seven rate cuts. Seven rate cuts x. Even as the consensus began to decline, okay, we wont get that many rate cuts, then the narrative shifted from, okay, we dont need the fed to be accommodative. If weve got a strong economy, that justifies higher stock prices, right . But then a funny thing started to happen. The data began to turn negative and turn negative in a big way. Bam [laughter] i dont know, okay. Well, thats going to be negative, what do we do with the rally baton . We pass it back to the fed coming to the rescue. I mean, of course we do. We just keep this thing going over and over and over again. And on that note, if you like bad news, you must have smiling from ear to ear this morning. Take, for instance, Housing Starts and permits, both coming in below consensus. But this revision right here,11. 28 million 1. 28 million, your annualized rate. The original number was. 3 1. 3. Thats a big decline just from february to march. But if you like bad news, folks, you should be cheering. Hey, it doesnt stop there. And theres more. Try the philadelphia fed. [laughter] so it came down, it missed consensus, but it was a positive number. Still though this is what you dont want to see. Prices paid, prices received were positive. Number of employees, average employee workweek negative. So we dont want prices going up as employment is going down, right . And by the way, the manufacturing component of Industrial Production told was. 3 revised down from 5 to 2. The street was looking for a positive number. My first guest has been a rising supertar on wall street for a number of years now, says the economic datas starting to show signs of slowing but agrees for right now bad news is good news. Citi wealth investment solution haves kristin finnerly. Welcome to the show. Thanks for having me. Charles you are saying maybe a pullback is due, but its a pullback that people want to buy. Yeah, certainly we would buy. Even the pullback we saw in april,s that was more of a garden variety pullback with. We had two quarters in the s p 500 back to back where you saw doubledigit gains, so some of that volatility was to be expected. I think when we look at the economic data, the cpi print, retail sales, what do we want to see9 for the fed to be in a position to cut rates . We want to see a reassumption of disinflationary trends which we got a little bit, not a lot, but a little bit in terms of that trajectory, and we do want to see a softennenning in some of this data whether thats in the labor market or in areas like retail sales. Charles so youre in the how many ate cut camp . Right now we have priced in about three. We still think we could see three rate cuts, and this has been our belief the entirety of this year. We started 2024 thinking that we wouldnt get the economic day that we needed for the data that we needed for the fed to cut rate rates at least until the summer months. We thought the first rate cut would be in the summer months charles so july. Yeah, i think thats on the table. Charles is it better overall for a stock market rally to be based on a strong the economy or a weak economy and fed accommodation . So i think the one thing we have to look at in terms of were not talking about a weak economy Charles Charles a weakening economy. Weakening, because when you look at the Overall Economic data whether thats ploirntle even some of the manufacturing data that weve seen, its still relatively strong. T not contractionary, its just a deceleration. And so i think the main thing that is driving the market, of course the rate the way the market is reacting to rates is very, very extreme. But i also think its based on fundamentals. One of the big trends this year is a broadening out of that earnings story. Earnings dropped in the u. S. Market in q3 of last year, and we now to anticipate for full year 2024 about 8 in Earnings Growth, so thats a promising sign. Charles right. The irony is the street always has a big number of course. Charles the market rallies on that number as we get closer to the actual release, those numbers, we beat the lower numbers, then anyway, i want to talk about the consumer. Walmart, obviously, perhaps the best proxy. U. S. Sales about the same, but x fuel, we saw a big decline in the pace, 3. 8 versus 74. Transactions are up 7. 4. Your average ticket was flat. Walmart doesnt have any Pricing Power, plus we know more welloff a families are shopping there. Is the consumer on borrowed time, in your opinion . I think what we learned from walmarts earnings today was really so two things stood out to me. One this trading town, who is down, who is shopping at walmart. I think the other interesting trend too was grocery sale. Charles right. So moving into grocery sales, does that Say Something about a services, about people not going out to eat as much and actually now cooking at home. And so that could obviously drive some of the economic data. But again, i go back to this, were coming off some pretty resilient and strong levels. Seeing a little bit of softening isnt necessarily a bad thing, and if bad news does become bad news, thats where you enter into a buying up opportunity. Charles second half 2024, some of your notes historically, defense outperformance performs cyclicals, rates outperform credit. You have a lot of folks who really want to buy cyclical and always want to buy international particularly now because emerging markets, for instance, have underperformed so dramatically. Try the stick with history . This is actually history going into an election year. Charles okay. So defenses outperform cyclicals, u. S. Outperforms internationals rates outperform credit when we see an election. This is of course obviously; the number one question that were getting, you do see some volatility the really around september, october and then you tend to see equity markets trend higher. The way were positioning our portfolios right now, a couple of areas. One, this broadening out of earning. We like the s p 500 equal weighted as opposed the market capitalization weighted. We also a like system of the mid cap space where you see profitable companyings that are companies that are poised for growth charles is there an etf that captures that . Yeah. You can look at the s p 400, 600 specific because they have those profitability filters. Look at this ones that are progrowth with. Charles okay. Great stuff. Great. Thank you so much. Good to see you. Charles you too. All right, folks, my next guest says disinflation remains the bigger risk out there, r are ia ceo lance robertson, lance, just to clarify for the audience, what does that mean . [laughter] well, it means slower prices. So theres a difference between disinflation which is Slower Growth in inflation their prices and deflation which is a negative trend in price. So what were seeing right now with retail sales, again, a little bit about what kristins that talking about, youre seeing shoppers starting to scale down here a bit. We saw retail sales a lot weaker than expected, negative revisions to prior months, so consumers are starting to slow down. Theyre 40 of that 70 piece of gdp called personal consumption expenditures. So as they slow down, you know, inflations a supplydemand balance. So as that demand declines, youre going to get lower prices as companies have to scale down to sell product. Charles right. So you actually also posted a chart of income gains here recently. This is really a fascinating chart. So weve got the top 5 , their gains have been just phenomenal. Phenomenal. The top 20 just sort of trailing along. The bottom 800, though, moving 800 moving in negativer if story. The bottom two quintiles of negative territory. The top two quintiles are responsible for 611 , if 61 , and they still have some dry powder. Do the masses have to wait for rich folks to. Run out of money before they can get some inflation relief in. Well, not so much. I mean, you know, the bottom 40 of earners, theyre on the very low end of income, they only can consume so much. They tonight have much income to start with. The guys in the top 20 , a lot of those are your business owners, right . Theyre the ones that own companies, they own the businesses, and when that bottom, you know, 80 of the population begins to pull back, they scale back also. They see less sales, less revenue, they get concerned, they start to buckle down just as a well. Its a psychological factor each more than it is just do i have money in the bank or not. Charles right. Ive got to talk to you about this. I saw your notes. Everyone is jumping on the power story, buying utilities. From 83 to 91, energy and gdp were always the same, and then after that i dont know what it is, but gdp always outpaced energy. Now we see its going to flip here, over the next six years its going to be absolutely phenomenal. And some to have driving reasons for that, a. A i. And everything, but heres my problem, lance. Im getting worried utilities are getting over their skis near term. And you should be, they are getting a bit ahead of themselves. This is a lot like the a. I. Chase, right . You and i saw this last year, we were talking about in the first half of last year this big run in a. I. Stocks and, of course, we had that big correction in the summer, 10 . A lot of those stocks cooled off a good bit, and and were going to have that again. Theres going to be e ebbs and flows, but the demand for a. I. , if the projections for art Artificial Intelligence are what they seem to be, were going to have a massive increase in the amount of power consumption that we need, so thats going to require a lot more infrastructure buildout, thats going to be a big driver for Economic Growth over the next few years as well, creates jobs, creates activities, its very positive for the u. S. Consumer. So if, you know, what i would be doing now and what we started doing in our portfolios is to use opportunities on pullbacks to scale into some of these positions and have a portion of your portfolio allocated towards infrastructure over the next few years. Charles and we put someone, some that you think are buying mostly on the utility side, and maybe copper, metals plays associated with the need for increased Power Production on your watch list. I only have 30 seconds to go. I started this conversation off with kristin saying, hey, right now the market is on a autopilot. Obviously, people want to ride wave. How do you become more cautious . Well, the problem is that bad news is good news for right now, but eventually and i agree with kristin, by the way, you know, history of president ial election cycles suggests corrections in september and october. Shes absolutely right about that. At a some point in the latter half of this year, i suspect were going to see some of this bad news get reflected. And as you pointed out, you know with, these very accelerated rates of Earnings Growth that analysts have right now, thats going to come down sharply as that realization comes in. Lets not forget one thing, is in spite of everything else, its the consumer that drives earnings. Thats, that Economic Activity is where with earnings come from from. If theyre slowing down, Earnings Growth will slow. That that will get reflected back into prices at a some point. Charles all right. And then maybe this thing they call sanity. Lance, great seeing you, my man. [laughter] talk to you again soon. All right, folks, hes back. For a long time i was ribbing brian belski if he didnt have the highest target on wall street. No more. Hes saying 5600, and hes going to tell you why at 2 40. 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Charles so my next guest nobody for his skills in the kitchen and the stock market and, from time to time, he kind of crosspollinates like, for instance, letting the recent news and event in the stock market majority nate. Marinate. Lets bring in Kenny Polcari. [laughter] im reading the i cant believe you did that. Charles im reading the report, yeah, were going to let this marinate a little bit here. [laughter] listen, you talk about the algos, and theyre having their way with this market, or right . Whatever the news is, they find a way to turn into it a positive. I compare it to the who sacked rome. Is there more to it than hype . You know, id like to the believe there is because im still positive on the market, im positive on the economy, im positive where stocks are going. I do, though, think this latest surge up especially over the last couple of days has been really crunch by the algorithms, driven by what it was expecting to hear out of the ppi and cpi, and i walked away with a very mixed feeling about where where we are. I still think that inflation is stick by can and theres going to be a problem, but theyre trying to change the narrative. Theyre trying to tell us that, you know, were okay and that 3 plus Percent Inflation is probably where were going to be. Thats how i read it. Remember, bloomberg yesterday came out to say 3. 6 is the lowest its been in 3 years. You know, they flipped that conversation around to try to make you think we should be okay with this, and rook what they did. They took it right up into a new century on the s p, up to 53 and change, which i thought was amazing. And i love the fact that they did it. Im 346sed invested, so im going along. I want to let it marinate a little bit, see how the market reacts. Charles right. Do you still see no rate cuts before the election . I do not see any rate cuts until the end of the year because in my view, i dont know what everyones looking at, i dont see that the data demands it. Your first guest, the young woman that says she still sees three rate cuts, im sitting there going, what am i missing in this conversation . If were looking at the same day da, i just dont see it. I dont see one, never mind three. [laughter] charles so im reading the report, of course, you talked about that super hot the it was a super hot ppi. I was in the same camp as you, you mentioned, okay, now we just have to wait until june 21st. Well see if this rises, if this increase shows up in the cpi. But then you wrote a little dot, dot, dot, capiche. So when my italian friends say that [laughter] thats when theyre getting a little frustrated. Im getting a little bit frustrated because i like to go shopping when theres a sale fake aing the place, and taking place, and they just dont want to let me in. I fully expected after the ppi that we were going to see the market back off a little bit. Would have been a great opportunity to get some clients in, get some of my money reinvested, and i never got the chance because i wasnt chasing it. Okay, im sitting back. This is not my type of market where im going to chase, you know, chase it at the alltime highs. Im not going to add risk at the highs. Were invested, the its not like were sitting in cash, were not. So thats good. But, yeah, the its a little bit frustrating because to your point the ppi, which was more elevated than expected, those prices are going to come down over the next four or five weeks and then into the next cpi report in june. So yesterday Means Nothing because with its next months cpi thats going to be affected, i think, by the higher ppi prices we just saw. Charles so ive got less than a minute to go. And, again, youve been voicing some concern although you do have exposure to the market. I received an email from one of my subscribers saying people are cautious because were told something supposed to happen, yet it continues to be elusive. Just like the calls for a recession, a pullback seems to be right around the corner, but it never happens. You know, i listen, obviously, hindsight is 20 20. What are you telling people who are frustrated that were not just gunning hoe, you know, all in gung ho, all in, go crazy, forget about being cautious, ride this wave . Well, but you see, thats whr wrote that email, thats why you have to create the plan. You create the plan and you execute on the plan, and and you dont try to pick tops and bottoms and weight and all that. Yeah, i would love to see the market back off a little bit, but when it doesnt, youve got to look for the opportunities within the market. So youre staying invested. Youre continuing to build a portfolio. You dont just sit there and do absolutely nothing every singling day when youve got money to put to work. And, by the way, as a fiduciary, im charged with actually putting your money to work and helping you grow your money for the long term into generational wealth, and thats what we do. Charles sean, if youre watching, capiche. [laughter] thank you, my friend. But youve got to do it with your hands. Charles yeah, yeah, yeah. [laughter] talk to you again soon. All right, folks, theres another side to this weak cpi story. Kenny just talked about it. Theres a whole narrative about the economy that for some reason doesnt get out there there. Were talking about the real narrative, what it means for your pocket and your portfolio right after this. This is how a heartbreak withs Investment Opportunities are everywhere you turn. But at t. Rowe price, were letting curiosity light the way. 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He has more or less promised wall street no matter what he wont hike rates income, but your thoughts on the notion that were on some sort of glide path to nirvana. Well, or charles, if these rates are sufficiently restrictive, i would love to know why Bank Reserves have been trending up ever since the beginning of 2023. Powell has overseen an expansion, not a contraction, of the money supply for the over a year now. The idea that somehow he is constricting things, i think its just a fallacy, quite frankly. He is purposely reducing the run ah in the balance runoff in the Balance Sheet in order to give janet yellen some more breathing room. Because, lets be honest, at this point the fed is essentially a captive of the treasury. Charles yeah. I think we all are, right in hey, you know, the street always kind of finding a way more recently to rationalize or simply ignore data that doesnt fit the positive narrative. One area, for instance, has been shelter. And marley rents. Everyone that comes particularly rents. Everyone that comes on the show says rents are much lower than the cpi, and theyll be reflected soon. When whole thing began we heard in four months, in six months, in a year. I think i had a guest last week who said in 18 months, right . You actually posted a tweet that really is amazing because you say, yeah, there is a lag, but the increase in rents should actually be larger. You have got to explain that. So, charles, essentially what were seeing in the Housing Market right now is a complete disconnect between real world data and whats being reported in these official government numbers. Is so, yes, there is a lag between when information is collected and when it completely shows up in things like the cpi because information thats collected today will not just show up for the month of may, it can show up for the next six months because we we dont have enough data every single month, essentially, to get a full report. However, people need to keep in mind that the component of the cpi that is supposed to be estimating the cost of homeownership doesnt even look at home prices. It doesnt look at interest rates. Instead, it looks at rents and from that tries to estimate the actual cost of home ownership. Charles right. So unsed the of a 20 instead of a 20 increase like the official numbers say, youre looking at a 100 increase in about three years. Charles and thats why its ownerequivalent rents. Another eyepopping chart you posted, the average when people can get, you know, how far the average paycheck goes since 2021, you know, we go back to 2021 and its just all negative, less and less and less. The paycheck goes a lot further than it used to go. We all kind of know that. And on top of that, ive got to get your thoughts on this. Headlined today, billionaires are sounding the alarm on government debt. When it comes to this stuff, the trillions, peoples eyes just glaze over. Jamie dimon and ray dalio saying the governments got to do something about this. Youve talked about this before. Whats the worst case outcome if nothing is done . Well, the worst case outcome, charles, is that that first chart gets a lot further in the red, in other words, peoples paychecks are going to continue to grow in nominal terms, but theyre going to buy significantly less and less as the dollar continues to be devalued in order to pay for all of this runaway government spending. I mean, this has been a problem for quite some time now. We talked about this well over a year ago, how not just the debt and deficit are ballooning, but even just the cost to service the debt, the interest is well over a trillion dollars a year now. So while these folks are certainly late to the party, people like jamie dimon, i suppose its nice for them the finally come around to the truth. Charles yeah, it really is. I mean, you know, at some point they do have an audience out there, and someones got to Pay Attention at some point. You know, the argument is that weve been hearing about going off the cliff for 15 years, and it never happened. The problem is once youre off the cliff, theres no turning back. E. J. , appreciate it. Thank, charles. Charles my next guest does fantastic research on a bunch of things, micro edge data lead analyst ulysses awesome, that is one of the best names ive a heard in my life. Appreciate that. [laughter] charles you ever go on a dating site with that it was a good character builder as a kid, ill tell you that. [laughter] charles we had initial jobless claims out today. That number, it was up a little bit last week, but for the most part, it was flat line, flat line, flat line. You have your own tracker, and it is not a flat line. It is not. Were at a little over 61,000 for the month right now, and we expect through the month were probably going to see more, but theres two things to really keep an eye on towards the end of the month, and thats going to be schools over so how many school leis take effect and also its peak hiring season for builders right now, at least in residential construction. With the spending having tailedded off a little bit, were anxious to see charles when you see numbers like those Housing Starts numbers today though, they were a disaster. Yes. Charles maybe this wont be the row robust robust hiring season. Thats one of the things that weve been tracking. Single family Home Construction has been contracting for basically 20 months now, were building 20 less singlefamily houses hand we were in 2022, and we havent seen as big of a layoff in employment yet, but were definitely keeping an eye on it. Charles why do you think the government, initial jobless claim just doesnt move . Ive heard so many theory on that. Yeah. Boy, thats a tough one. Theres been a lot of seasonal adjustments but, you know, were racking some different things. One of the things that were tracking is the nfib and Small Business hiring optimism charles let me just highlight this for the audience, right, because the numbers starting to free paul, right . The last freefall. These are Small Businesses plans to hire, theyre just not planning to hire as much as they were. Correct. Like bigger companies, during earnings theyre discussing layoffs. Well, they have a footprint that they can compress margins and get by without the lack of optimism that Small Businesses have. If youve got one location, you dont have the same power as the footprint yo you might have multiple locations, multiple stores. Charles right. How much of a canary in the coal mine is this for the overall employee . Well, Small Businesses employ the majority of the economy, so the worse this gets, the worse things could get. Charles delinquencies, this number out today i mean, this week. So we knew credit cards were really starting to explode. Right. Charles you broke down by age and income, it would be even a lot higher. Correct. Charles you say keep an eye on mortgages right now . Yes. So the new York Federal Reserve put out the household. Credits report, and for the First Quarter mortgages, 30 days delinquent have increased, theyre almost up to 4 delinquency rate, and the fha therein again city has also been going up delinquency. One of the things we noted was basically skyrocketing as a percentage, its a small number, but over 10 of fha mortgages are delinquent due to job loss. Charles really many. Its one of those data points that a wed like to find out why its not meshing with the National Merit charles right. Aye got less than a minute. I want to get your thoughts on theres a big push out there, its starting to bubble up trying to get people to take home ec i withty loans. Equity loans. It wouldnt cost the taxpayers anything, and we remember the time when everyone was. It was fun until it wasnt. [laughter] until it wasnt, exactly. And if were already talking about people being in delinquency and rates rising, then adding more personal debt is not going to help much like adding more public debt that we covered before here. Charles right. Great stuff. Thank you very much. Charles you were awesome. Thanks a lot. Thank you, sir. Charles all right, bmo capital just raised its target on the s p the 5600. Of brian belski, once again, the permanbull, on top. Why . What changed his mind . Acting like were animals. No, no matter where we go everyone knows were just a couple animals. So come on, baby, get in you need them. They need a retirement plan. Work with principal so we can help you with a plan thats right for your team. Let our expertise round out yours. Moving forward with nodepositive Breast Cancer. My fear of recurrence couldve held me back. But im staying focused. 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Xfinity gives you reliable wifi with walltowall coverage on all your devices, even when everyone is online. Maybe well even get married one day. I wonder what i will be doing . Probably still living here with mom and dad. Fast reliable speeds right where you need them. Thats walltowall wifi with xfinity. After military service, you bring a lot back to civilian life. Leadership skills. Technical ability. And a drive to serve in new ways. Syracuse universitys Daniello Institute for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. From professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world. Oops, i did it e again. I played with your heart, got lost in the game charles oops, he did it again. Brian belski lifted his yearend target on the s p is, 5600. Now, he cited momentum that is likely to continue moving, so its likely to persist. He likes it, 5600. Lets bring him in, bmo Capital Markets chief investment strategist brian belski. Brian, i loved reading this report. My man, hes back now, you admit that you had drawn a line in the sand at 5100 late february, it was a mistake. Well, the report actually reads, we underestimated the strength of the market. Now, heres my question, did you underestimate the strength of the market or the cube exuberance of investors that keep buying no matter how the narrative shifts . I think its basically the same thing. So, by the way, thank you so much for having me back on fox business news. Ive never had Britney Spears music [laughter] being from minnesota, i get a lot of prince bumper music but anyway, ill take what i can get. No, i think its a combination of investors and exuberance, but i have another theory, charles, and the theory is i believe that people actually really believe in stocks again. And people are going to think im crazy for saying that especially given the performance that we with saw in 2023, but this years markets very different than 2023. To me, it feels a lot like the mid 80 and mid 90s. I call it the golden age of stock picking, and i think were going to have more and more assets, quite frankly, come out of bonds, come out of private equity, come out of real estate and come into equities for the first time in a long time. Remember, were still kind of unwinding a 40 year bull market in bonds, and the last couple years have been really tough. So what do people do when they lose money in an asset . They go find the asset thats working and thats cheerily equities. Clearly equities. Charles and in the mid 9990s we got the rational exuberance speech. Now, i did think it was interesting because with you didnt change your earnings number, so how do you get to 56000 if you dont move earnings up 5600 . Great question. So when we published our year aheadpiece many november of 2023, we said base case 5100 on 2500 of earnings, bull case a 5500. And theres upside to 3260 in earnings 260. Now the street is coming around to this 250 number, numbers have been kind of coming in. We think theres a really Good Opportunity for that number to go higher especially the second half of the year, and we think the big surprise sectors going to be financials. I think from a consensus basis, earnings are way too low, and theres still a lot of money to be had there and made there, and we think a lot of our institutional clients are massively underweight financials. Charles i also thought it was interesting that you see a more significant pullback is likely to occur, and you mote the pullback in april with was 5. 5 president. Historic clue, during the second year of a bull markets its 9. 4 . So will the next pullback be greater than 9. 4 . Its clear that you think it would be a buying opportunity. Yeah, i think so. Our line all along is we want the buy at a lower prices, obviously, and we think were going to have another opportunity. To have only a 5 or so correction within a 2year bull market is actually quite unprecedented. We think theres a chance that closer to a 10 correction, it doesnt mean were bearish, it just means its actually much more healthy to have a better buying opportunity. So we think that could happen in the summer and into the fall which will set up a fantastic Fourth Quarter rally especially with the likelihood of the fed moving after, in our view, the election in terms of cutting rates. Charles so you mentioned financials, and weve got a minute to go. You do have the overweight on financials, 13. 55 of weight. Infotech, information technology, overweight there too too which is 30. Those are the only two areas you have an overweight on. You know, a lot of folks that have been coming on the show today and over the last couple of weeks have talked about a broadening out of the rally. You dont see that yet. Well, were neutral the majority of the rest of the sectors except for the really maul ones small ones. Consumer a staples from a fundamental perspective, with we think theyre really expensive. If you take a look at these other big, doubledigit sectors like health care, Like Communications services, like consumer discretionary, were stock picking there. We hi the negativity, quite frankly, with the respect to the consumer is way overdone. What were seeing from a fundamental perspective is rotation into certain names. We really like the consumer longer term. I think aside from the growth can sectors, you know, our favorite sectors from a longer term perspective over the next 510 years are clearly communication services, technology, parts of industrials and the consumer. Charles right. Hey, great stuff, brian. Its good the see you back on top, my, man. Well see if we can find something more suitable to bring you in next time. I would love that. A little prince, man, lets go. Charles you got it. All right. A shift so occurring in the consumer, theres no doubt about it. But you might be surprised where americans are choosing to save and what were unwilling to give up. Kristin benz joins me for the state of the consumer and the stock that you want to own there, next. Go on, take the money is and run. Go on, take the money and run nice to meet ya. My name is david. Ive been a pharmacist for 44 years. When i have customers come in and ask for something for memory, i recommend prevagen. Number one, because its safe and effective. Does not require a prescription. And ive been taking it quite a while myself and i know it works. And i love it when the customers come back in and tell me, david, that really works so good for me. Makes my day. Prevagen. At stores everywhere without a prescription. Lauren charles mentioned earlier in the show, walmart posting numbers and guidance that made wall street chair and the stock is up 7 . Of course this is always considered a great maybe the best proxy for the consumer. But is it really good news in i want to bring in now kb advisory group, their founder christine. Christine, walmart had no Pricing Power from their last quarter a year ago and they had, you know, that helped on transactions but what did they say about the consume fertilizer general . Heres something thats very interesting, im not a big fan of walmart as you know. The composite of the consumer that lifted them to that amazing performance was the high end consumer that makes 100,000 for more combined income. Thats a luxury consumer. So i think thats fascinating and really tells you where the consumer and going and how theyre shopping and we can kind of put to bed the oldtrope of people of walmart and theyre driving teslas and mercedes and it aint that bad out there. Theyre seeking value. Charles on one hand, argue theyre starting to feel the pinch like everyone else and you say the best gauge with you with respect to the health and consumer and household Credit Card Debt and funds to handle 100,000 emergency. How are those looking . Well, not so great; right. The thing that sticks out the most to me is 52 of American Consumers dont have 1,000 for emergencies. So everyones just kind of hanging on by the skin of their teeth right now. Charles 1,000. Oh, boy. I got i was going through the bank of America Daily they put out a daily spending, which i think is really great information. Couple things leaped at me. First of all, entertainment down 11 on the 11th, may 11th, down 12 on may 10, down 10 on may 9th. Its been free fall here for the last few days. Even airlines are in the negative. I thought we were sort of in the yolo, only live once and spend all the money you can. Is that running out . Its funny your guest before saying we keep braces for something to happen. U. S. Consumer withs all the unrest in College Campuses and kudos to you on your speech. It was amazing. Charles oh, thank you. I think theres so much worry out there and, you know, consumers are kind of holding back a little bit. Look what happened with mcd, starbucks. So i think the cracks are starting to show and the consumer is very, very much under pressure. Charles the same report had something inintriguing that matches retail sells. Yesterday resale sales come in and Department Stores come up and internet was down 1. 2 and corroborated and Department Store spending up 10. 5 . Its been up almost every day this month. Whats that all about . I could be trite and say its about ozempic. I think youve got to get yourself to the stove and see how you look when you lose the 30 pounds. That could be one part of it. The other part for the nonstore sales, i think bynow pay later is really just a nasty underbelly of the u. S. Consumer and no one even knows how bad it is yet. Charles right. Before i let you go, survey out obstructing cerumen Summer Travel plans and 43 of folks hitting the road for a trip this summer. 6 on a cruise and 13 camping. Im not sure where i miss that had camping thing. You know, but is this a normal layout here . They dont to want cook and clean when they travel and its an easy way to take your kids, get out of town and all this equipment that everyone bought during, you know, the pandemic and now theyve got to use it. Thats what every is doing. System of articcharles theresd to College Campuses. Thank you, kristin. Thank you for having me. Charles see you soon. Any number of approaching from scalding remember in the beginning when the place was coming up and the white house really scalded ungrateful americans and showered everyone with all of the stimulus checks. Then of course to telling them that they simply werent smart enough to understand how good they had it. Now it appears theres a two pronged tactic going on, including just straight up lying. President biden has said on more than one occasion inflation coming into office and hes taking mea culpa on that. Its true that if he wanted to go back and look at where history was, when he came to office, household and business as far as inflation was concerned, it was 1. 4 . Inflation is coming down. And i hate the wording on that. Im really a stickler for words. That applies that prices are coming down. Come on. Yesterday senator cory booker posted that inflation coming down with more than 60 a peak to the lowest level in three years. Its amazing. The real deal though, look at this chart that i retorted with. Okay, inflation hasnt come down at all. In fact, it keeps compounding and compounding at higher and higher rate. In fact look at that chart close enough and i dont know weve seen a more blistering move in inflation and in the 70s, the first spike in the 70s not looking agreeance as were dealing with right now. Egregious and wartime spending effort and they wont. Its all about the clean climate agenda and youll have to get used to more gaslighting folks. Meanwhile we know one thing and inflation is crushing americans. 41 of the country and now mentions inflation as most important Family Financial problem. Wow. I mean, they deserve a break. I dont think theyll get one though. Meanwhile Ashley Webster taking you for the final hour of trading with liz claman. Ashley always appreciate it. Thank you, my friend. The dows 40,000 party, what hook and hold,