Making Money With Charles Payne : FBC : June 21, 2024 2:00pm-3:00pm EDT : Free Borrow & Streaming : Internet Archive (2024)

didn't know that, and you were, like, generally, pockets don't -- aren't flattering on women's dresses. brian: well -- taylor: so you were calling me, you basically called me fat. [laughter] brian: i just want to say that i think, you know, in a a general sense the pockets -- you just save me -- jackie: i'm in a tighter dress, the pockets may not be flattering. if it's a more poofed-out dress -- that's what he meant to say. taylor: in 1899, an essay tying pockets to voting power and demanding equity, so there you go. the more you know. we will get you a quick check on your money, stocks narrowly mixed a little bit today. we're positive for the week, but our boy charles payne nose it is triple witching day -- knows it is triple witching day, is so you might have some good volatility in the next -- brian: and he has pockets too. jackie: a lot of pockets, just saying.

[laughter] charles: yeah, i got a few, although not those tom ford suits, too many pockets. [laughter] have a great weekend. good afternoon, i'm charles payne, and this is "making money. "breaking right now, t a heat wave outside, but all of a sudden the stock market is cooling down. this is the moment many are afraid of, right in we want to know what happens as the a.i. trade stalls. will investors rotate elsewhere within the market or find the nearest fox hoel? and remember -- foxhole? we're going to ask analysts where they see opportunity. meanwhile, a major wall street firm admitting the u.s. is in recession, but it's a, quote, selective recession. not everyone. just those folks. you know what i mean. i'd love to hear your thoughts. tweet me @cbpayne. and ladies, here's a question for you: would you date a man earning $755,000 a year concern 755,000, what if he lived in miami? -- 75,000. we've got a viral video, and it does have a commentary about the

impact of inflation on the society that's struggling to make it. all that and so much more on "making money." ♪ ♪ charles: all right, so, of course, the big question surrounding the market particularly over the last few months is can the rest of the market pick up the pace when a.i. starts to slip? so what we're looking at here on the screen, that's your equal weight s&p 500, all things being equal, it's been aa knewlated by cap weight which is what the southbound is that we -- s&p 500 is that we talk about. if now interestingly, gobs of money continue to pour into equity funds overall, and yet we all know that market breadth has deteriorated bigtime. look at those on the right-hand side. new lows are just swamping new highs. that's always an early tell that maybe manager's wrong with the market. one reason, of course, is because all that cash can i talked about gushing into the market is focused on growth.

in the last week, growth has seen the largest inflow ever. ever. so the biggest names taking a breather can cash and growth find other opportunities? although tech was the biggest decliner yesterday, take a look at this because four of the names on the top ten mover list were in technology, they just weren't the names that have been carrying the day. this could actually be good news for niches of technology including software. now, i think my first guest is one of the best, if not the best software analyst on the street, joining me now, tyler rad key. tyler, just -- i remember when hardware was the redheaded chip of technology. couldn't get a bid, had low pe ratios, right? you had small margins. all of a sudden it's like, you know, now it's -- the roles have been reversed and software is just getting annihilated, in part because they're taking money to go after these big chip developments. but they're trading at multiples even below the covid trough, so

there's got to be opportunity there, no? >> we think there is. and it's interesting, if you look at software position, so this is how much investors prefer software stocks relative to others in tech, it's at almost 20-year lows. it is hard to find a time when people have been this bearish on software with. and what's surprising is three, six months ago we were guns blazing on software. we came out of last year, interest rates were coming down. we saw some budget flush, but the sector's had a really rough start to the year, but we think it's overdone. all these concerns of a.i. eating software are overdone -- marls charles maybe eating the budget that might have might have been earmarked for software. whether it was salesforce.com and other big names sort of suggesting things are okay but things are pushed out. >> salesforce if had their biggest bookings miss the company had ever seen. microsoft continues to chug along, good results out of oracle and adobe over the last two weeks, so we have gotten

more favorable -- charles: i saw this great chart from adp, and it showed a sharp decline in what they call the software developer employment index. and i feel like maybe is there sort of a paradigm shift? it wasn't long ago they were telling everyone, learn how to code. is the a.i. phenomenon making software irrelevant? >> so it's an interesting chart. and i think one with of the things that we've seen throughout history, the new technology wave comes, are all the jobs going to go away. the reality is a lot of new jobs do get created from these bursts of technology, i bought the end of the day software and a.i. is automation. is if there are processes, pinpoints that software and a.i. can can automate, we've seen a lot of that happen. keep in mind with the software developer accounts going down, a lot of that's been driven by the layoffs we've seen in tech. these company have become much more profitable, so a lot of

that, there's lot of hiring in the blue chips -- charles: so no necessarily paradigm shifts, maybe kids can still learn to code? >>9 with the assistance of a.i -- charles: all right, and software in the market, there's 24 tostocks, $240 stocks, at the top of the list is salesforce.com. sap intuitive, service now, uber, some of these names. where are you looking right now? where do you see the opportunities? >> starting at the top, obviously, we still like movement we actually just raised our price target on the stock today. that being said, microsoft's one of the best performing stocks year to candidate. -- date. so you go down the market cap spectrum, with we like names that have been beat up. charles: do all these names are to have an a.i. story in the bid right now? >> i think you want to be confident they're not a.i. losers, rah right? at the end of the day, one of the names we also like is shopify. what do they do? they help merchants sell goods online. is a.i. going to eat into that?

not necessarily, but a.i. could make them even more productive. charles: right. >> could make transactions happen faster. so, you know, you want to be on the right side of a.i., but you don't necessarily need to be the next microsoft. charles: you also said plunge go when you -- money go when you sat down. is that model still relevant? >> i think it still is, but i would distinguish the application software versus infrastructure or database software. there's going to be a lot more data with a. a.i., right? but there may be less sales people or there may be less seats to be sold as a.i. makes that more efficient. monobow's tied to the data. charles: i love that answer. tyler, thanks a lot. it's always informative, or particularly now. we're looking for somewhere to put our cash. all right, folks, as we do that, could we be poised for another spike, let's say a blow

blow-off a top? a major firm on wall street says maybe we're going to get a nice move, tickle 6,000 and there she blows. buckle up. i'll ask our guests what they think right after the break. ♪ i can still hear you saying you would never break the chain ♪ can i have another pancake? from full house... ...to empty nest... ...to free birds.

vanguard personal advisor can help you prepare for every chapter. we got this. that's the value of ownership. when you're in the military you're really close with your brothers and your sisters that are in the military with you. and when you get out of the military, you kind of lose that until you find a new family. we can talk about our struggles and the things that we did overseas and not everybody can do that. adam! how's it going, brother? we live pretty close to each other. so he's always coming over. when i go to jack's house, we watch a lot of football, hang out. we go outside the friendship has kind of grown into a family i was overseas on a deployment. i got separated from my marines and i got hit in the neck, and it broke my neck and paralyzed me. 14 years ago, i was on a training mission. did a military freefall, and i had some faulty equipment. i hit the ground. going, 30 to 40 knots

and was instantly paralyzed. i met jack fanning when he invited us to park city, utah, through his foundation. i was able to actually get on the mountain and ski with my family, i can't put into words what that meant. i got paid in the military to do crazy fun stuff. and after my accident, i'm still that same guy. and when i was able to jump out of a perfectly good, helicopter, at 10,000 feet, i did it. i was talking to some vets last week amazing how we have these houses where they can come over because they■re in chairs too. carpet and wheelchairs don't mix very well. tunnel to towers, they got rid of all that. they redid my whole bathroom. that's probably the favorite part of my house. i thought they were just going to do the upgrades. but the surprise to me was they paid off the entire mortgage. when they told me they're going to pay off my mortgage, i cried.

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during my entire life i have been somewhat of and bring on the good stuff. an outdoors person. golf, gardening around here. how can i stay out of the sun? so about two years ago i was diagnosed with basal cell carcinoma. when they discussed the mohs surgery on my face, i was not really a fan of that because the scarring can be disfiguring. if you've been affected by skin cancer, surgery is no longer your only option. we chose gentlecure. gentlecure is a surgery-free treatment that uses low energy x-rays to kill skin cancer cells with a 99% cure rate. plus, there's no cutting, no surgical scarring and no downtime. the results are absolutely fabulous. see why so many people, including doctors, are choosing gentlecure. call today or go to gentlecure.com.

charles: all right, so there's a big rally that began in late 2022 finally poised for a major pullback. suggesting that we're going to see a spike to 6,000 and then thar she blows, folks, 20% down quickly. now, even for those watching seasonality, you have to admit that for a presidential year this is the sweet spot. but look at that blue line. we're still significantly higher than we would be, in fact, higher than where we would normally end the year. so obviously, the market does pull back from time to time. the green and duration is what poses a challenge for nervous. i want to bring in managing director dan greenhaus. dan, just how much over its skis is the market, in your opinion? >> well, listen, it's always difficult to say in realtime that the market has gone too far too fast or anything like that, but there are some things to which you can point.

for instance, the market's relative strength index. if viewers are not familiar, it's a way of judging how overbought the market is, and both the s&p9 and the nasdaq are above what you would consider to be an overbought level. charles: right. >> and for me, one of the important indicators is the spread between the market cap-weighted index and the equal-weighted index. if you wanted to judge how much influence those large, mega-cap names have, you would look at that a spread right now. the s&p traditional is up about 15% to date, the equal-weighted index is up about 5% year to date, so that 10-point spread is historically large, and it's larger at the year's midway point than anything we saw in the 19900s. charles: right. maybe we can bring it up, we used it in the a block, that chart of the equal weight versus the s&p cap weight, and it's never been this, you know, pronounced. >> yes. charles: but you could have argued that a month ago a, a month before that, you know? >> that's right. charles: i guess it gets back to pinpointing when these things

happen. do you then say, okay, this is crazy, but i've got to ride the wave and at the same time have some sort of cautionary, take some sort of precautions? >> we're a hedge fund, and we're not sort of benched to the s&p in the way a traditional money manager might be in a sense that they want to beat the s&p by 11 or 2 percentage points -- 1 or 2 percentage points. that's not really what we do, but if you're a money manager, you have to be tethered to these names, and the question is can you be as large as they are in the market in your portfolio. in reality, in order to be -- in order to outperform this year, you need to be overweight those names which is really saying something when you consider how large they are -- charles: right. top 10 names, 37% of the market to begin with, so -- >> that's right. maybe a larger weighting, which is difficult for a9 hot of managers to do. charles: right. ask and individual investors too. it's intriguing to me that wall street has spent the last 100 years preaching diversity in portfolios and to beat the market, you had to be as undiverse as ever --

>> well, let me interrupt you, i actually am on the other side of that. like, i subscribe to the warren buffett or bruce berkovitz line of thinking which is why should i put more money into my 7th best idea when i could put it into my 6th best idea? there's something to be said for diversity in average investment, but at the same time, if you've done the work and you think this is going to work out, there's something to be said also for being overweight that particula- charles: right now i'm overweight tech and industrials for specific reasons. we've got a minute to go, and you say, listen, there's other themes out there, media, big box, discretionary, financials. but even within these areas it's pretty select i have, right? -- selective, right? some discretionary names are doing great, some aren't. >> yeah. in a year in which the s&p is up 15%, think 270 to, 32800 stocks -- 2800 stocks in the index would be outperforming, but this names it's 101 to --

this year you have a sheriff -- very select number of names. you mentioned media. there's disney, there's your parent corporation fox having a pretty decent year with, the big box retailers like walmart and costco are doing quite good. so is kroger, the supermarket name. and on the consumer staples side of things, there's some things you could be invested in -- charles: for those who think a 20% correction could be right around the corner? >> listen, i think barry is a longstanding, great sell-side strategist, that's too cute for me. [laughter] we're going up to x and then we're going to fall to y. charles: all right, dan. have a great weekend. >> thank you. charles: tech sector is taking a break and many are pointing to that forward pe ratio. 31 times, which is huge, although take a look at that chart further back, this metric was with at 55 times during the dot.com peak. of course, nobody wrings -- rings a bell at tops or bottom, but the narratives have to be

defendtive. i want to bring in john hanco*ck investment manager emily to roland. i want -- roland. i want to follow up the conversation with dan. how concerned are you particularly when it comes to tech valuations? we got the top ten stocks here, and if they pull back when investors, do you think, get out of the market or would they start to rotate and look elsewhere? >> yeah, charles, the rotation, i think, is not there yet, and the concentration is worrisome. you mentioned earlier about 35% of the index is now comprised of 10 stocks here. the sec tech -- tech sector's up 30%. your prior guest mentioned the s&p 500 only up 15% year to date, so a lot of the returns are being driven there. but in order to actually see some type of leadership shift, you need another cat can list other than valuation -- catalyst. there's an old saying that a valuations just aren't a catalyst. you need to see a regime shift in the macro environment or the earnings environment.

tech earnings have been awesome. they were up 25% year-over-year in the first quarter, they're pen -- penciled in to be close to 20% for the rest of the year and into 2025 these companies are higher quality, they've got great balance sheets, they've got tons of cash, and we think that's an environment that's going to get rewarded in this late cycle regime we're sitting in today. charles: what about the small caps, right? because interest rates are coming down. that's supposed to be sort of a tailwind, and we mow they're starting to drift. -- know they're starting to drift. at the beginning of the year, everyone was saying, hey, look at the small caps. now everyone's doing that whistle past the graveyard thing, all right? would you look there at all? >> yeah, charles, i would say our most out of consensus view has been to underweight small cap equities. and you're right, everybody coming on your show talking about the fact that interest rates coming down are going to benefit small cap equities, but rates are potentially coming

down because inflation's slowing s. and inflation was great for corporate profits. it resulted in record revenue growth during the height of the pandemic, and that's starting to come down at the same time that the cost of capital is elevated. in the face of higher for longer. so what's happening now is companies are contending with margin pressure. and if you're a company that wants to maintain your profitability and your margins are shrinking, you have to cut costs or have a lot of pricing power. those companies that have the best pricing power have been found in those quality indices. tech companies in particular, small cap companies are lower quality. 45% of the russell 2000 index is comprised of unprofitable companies. charles: right. >> the debt that's coming due is significant. you're better to wait with for an early cycle environment to overweight with small cap stocks. charles: absolutely. and maybe also the s&p 600 might be a better alternative as well. emily, thank you so much. have a fantastic weekend. >> thank you.

charles: so is there something more than american exceptional aism at a work in this stock market in i think it's a prime proxy, but some say not so fast. i'll ask lance roberts, he's one of the smartest guys out there when it comes to this sort of stuff. and, of course, where you should be putting your money right now. ♪ i don't care if monday's flat- ♪ tuesday, wednesday, hard to tap. ♪ thursday, never looking back -- ♪ it's friday, i'm in love ♪ i promise that our relationship will go well beyond just investment decisions. it's the intersection of your money and your life where we can make the biggest difference. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

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charles: all right, folks, the united states, our stock market's got the largest weighting ever as part of the global stock market, right? if we've got the biggest slice of the pie. but some are calling it extreme. i call it u.s. exceptionalism, yet there has been pushback on that. in fact, earlier this month i saw a piece titled exceptionalism or just america's exorbitant privilege in the article really complained that, all things being equal with, value investors should have loaded up on emerging markets, shedding american stocks. of course, if they had done that, they'd really be with crying in their beer right now. is there something more than exceptionalism at work? i want to bring in ria add a advisors' cio lance roberts. should we have an exceptionalism premium for our stock market? >> absolutely, yes. you know, it's interesting, i read that same article, and the thesis is basically, well, their valuations are cheaper than the

u.s. look, there's a reason. their economy is not nearly as strong, they're an export country, not an import country as much as we are, is and so they're very dependent on their major industrial the partners like the u.s. and europe in general. so their valuations are aren't cheap relative to themselves. they may be cheap relative to the u.s., but relative is not really how we invest. we invest where money's going, where the value is, where profits are, and that's in the if u.s. and foreign investors are moving billions of dollars into the u.s. right now to chase we have superior u.s. strength economically versus the rest of the world with, we have the artificial intelligence if chase going on now. that development is here, it's now. this is what's happening here. we're the leaders in that. so money naturally is going to gravitate towards those countries that are developing and innovating, creating research and development. and we're doing a great job of messing a lot of our capitalistic structure up through our political choices --

[laughter] you know, we're still leading in that area. charles: so you posted some compelling -- you always post compelling charts, but a couple i want to ask you about, the cumulative change in real s&p 500 and real profits. now, if i'm reading this correctly, it suggests that maybe our market is way ahead of profit growth right now? >> yeah. and, again, this is a little bit of a valuation argument, just kind of in a different measure. it's that investors are paying more for profitability than what companies can actually generate right now. so valuations are a terrible short-term indicator. you should never use valuations. they're more of a measure of sentiment than anything else, and that's kind of the same way with profits. you know, wall street expects earnings to grow by 20% heading into next year. that suggests higher profit growth. but as your previous guest said and she's right on, inflation is coming up -- down, interest rates are coming down, that's going to weigh on profitability for corporations if they can't pass through the pricing. and we're seeing that with companies like walmart now.

charles: hey, before i let you go, is there too much calm out there, right? i don't know what the vix does anymore, but, you know, we see everything seems to be relatively sanguine, right? even this little i pullback, you know, every time you get it -- i guess we've had so many chances to buy the dip, we can see the last time we had a 2% decline. it's been a long time. so do you get somewhat concerned that we're too air a gant, too co*cky, too comfortable right now? >> yeah, look, we're going to have a correction. you know, you and i were talking about this back in march. we said, look, there's going to be a 5-10% protection sometime here soon, in april we had that 5.5% decline. we have the very same setup right now. very high complacency. investors are very, very bullish, extremely optimist in. and, again, we have big deviations technically, we're very deviated from the 50-day moving average, very overbought in the short term. you should expect within the next month or so to maybe about

a 5% correction. i do think we get a bigger correction before the election simply if because of all the unknowns. maybe that's a 10% type deal in september, october. charles: right. >> but expect a little volatility this summer. it is too complacent right now, to your point. charles: and history shows right before the election volatility can be nuts, and this year probably because of the situation will be even more exacerbated. lance are, have a great weekend, my friend, appreciate it. >> thank you. charles: a handful of stocks have maxed the broader weakness in the market -- masked. think about this, a handful of very wealthy folks in this country, let's call them the educated elites, have also masked a very troubled economy. jpmorgan is admitting that the u.s. is in what they call a, quote, selective recession. well, my next guest told us a long time ago about this. heritage foundation public finance economist ej antoni. some wall street firms are finally admitting there are two americas, but still they downplay the plight of those who

just can't keep up. what are your thoughts? >> charles, i think that's spot on. we very much have the charles dickens tale of two cities going on right now where you have very high income earners and very wealthy individuals who actually still have pandemic era savings. but what about the other 800 plus percent of -- 80 plus percent of americans? they have blown through all their savings because of today's higher prices and also been eating into savings that existed before the pandemic. this is why we have over $1.1 trillion in credit card debt, this is why we are increasingly seeing debt move from being paid on time to delinquent with. charles: you know, to me it's is amazing because how we got here, you know? my thought is the administration, you know, federals of dollars of unnecessary money cascading into the economy that broke all, you know, established norms triggering this recession, this inflation crisis. and the folks who own money markets are getting hundreds of

billions of dollars every month, and they're spending it! and the fed is looking at it saying, we're okay, the economy's great. but the other folks who don't have money markets but do have a gas bill, but they do have a mortgage bill or rent or their credit card all of a sudden a went from 10% to 22%, they're paying every price, and we're starting to see it. bank of america put out their credit card spending trends, and i'm looking at this and looking at these areas that are starting to get hammered. airlines are down huge, restaurants are starting to go into the red. it looks like all the discretionary money that everyone else had except for the rich folk, it's gone. we're tapped out, aren't we? >> exactly, charles. tapped out is precisely the right phrase here. and when we start talking about sectors like restaurants, we're looking at consumer spending categories like eating out, what are we finding in we're finding that ott -- not only is the consumer spending down, but also those establishments are in serious trouble. the number of restaurants falling behind on their rent is

exploding today. and so it's not simply consumer debt that we're beginning to worry about, we're beginning to worry about a commercial and industrial debt as a well. we have serious systemic problems throughout this economy. and to your point, it all goes back to the runaway spending which caused the runaway inflation. charles: right. >> and now the higher interest rates which are essentially the chemotherapy trying to kill this cancer but are killing a lot of the patients in the process. charles: before i let you go, less than a minute to go, you know, in this bizarre new american world, those were the greatest blessings. an an education from an american university getting these bailouts, and now we've just learned that student loan relief contributing to up to 27 of the projected jump in the federal budget deficit i think over 10 years. i think i read $2 trillion. the number's outrageous. why should the american public, it's nuts. e.j., help me out here. it's driving me crazy that we're, we're rewarding the

elite, most blessed folks in this country. >> exactly. and at the expense of who with, charles? at the expense of the plumber, of the carpenter, of the mechanic and the machinist who didn't go to these 4-year schools or get graduate degrees. by the way, those are the folks who hold the bulk of this student loan debt. in other words, all the people who we have every reason to expect are going to have higher lifetime earnings than their blue collar counterparts, they're the ones who are getting relief right now? this is morally outrageous. forget the economics for a moment -- charles: yeah, yeah. >> this is theft. charles: yeah. they'll make millions of dollars or more, their children will live in much safer neighborhoods, life is going to be absolutely wonderful for them. why should we have this kind of deficit to make it happen, even more so? e.j., thanks a lot are. talk to you again soon. all right, folks, we're gearing up for a really wild summer particularly when it come9 -- comes to the fed. ing hillary kramer's with us. she's already said that jay powell wants to keep his job, so

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during my entire life i have been somewhat of an outdoors person. golf, gardening around here. how can i stay out of the sun? so about two years ago i was diagnosed with basal cell carcinoma. when they discussed the mohs surgery on my face, i was not really a fan of that because the scarring can be disfiguring. if you've been affected by skin cancer, surgery is no longer your only option. we chose gentlecure. gentlecure is a surgery-free treatment that uses low energy x-rays to kill skin cancer cells

with a 99% cure rate. plus, there's no cutting, no surgical scarring and no downtime. the results are absolutely fabulous. see why so many people, including doctors, are choosing gentlecure. call today or go to gentlecure.com. want to save on some of the biggest names in streaming on including doctors, are choosing gentlecure. the network made for streaming? x marks the spot. now you can add the new xfinity streamsaver™ that includes netflix, peaco*ck, and apple tv+. that's xfinity streamsaver™ for just $15 a month. all your favorites. all in one place. only from xfinity. for more watching and less spending... x marks the spot. do it all on the network made for streaming, and bring on the good stuff. ♪ charles: well, my next guest says this is going to be a,

quote, wild, hot summer. bring in now research investment analyst hillary kramer. i'm big baa man ram ma, cruel summer -- [laughter] i don't know, hot summer for the fed. why? >> because the fed will be cutting rates. if they don't do it in september, it'll be before september, for sure -- charles: you said all along that jay powell is going to cut rates in part to keep his job. >> he wants to keep his job, he wants to make sure that he has a blue white house, is and it really is about his job. and this is the big problem, is that no one wants to fall on the corporate sword or on the public sword. they want to take care of themselves. but, charles, when it comes to this market, people are starting to really drown in debt right now. and with the stock market just going up, up, up, that sort of mentality of, oh, it's just going to keep going up, it's going to keep -- charles: sure. >> you and i have seen it so

many times, we just get slammed. so it's going to be a wild, wild summer -- charles: i was looking at a great chart that shows auto loan delinquencies through the roof but approvals for loans, only 2% are being rejected. they're, like, keep the fires going, but beneath the surface, bad things are happening. you also talked about the dot plot if which was interesting. nine9 cuts in 24 months, you said it was somewhere between apocalyptic and crazy. [laughter] >> yes, exactly. that is exactly what it is. it's more aa pock limittic than anything, and we are going towards the apocalypse. charles: that suggests an economy in freefall. >> yeah, because it will be freefall because all this money has been pumped into the system, it's gone into private equity. private equity has bought all these companies, and they're firing everyone. i know someone who owns a private equity-owned company, he has 500 employees. he's going to go down to 1 in the next 2 years. this is across the board what we're seeing s. and whether it's

the utilities that are using a.i., whether it's advertising or communications or in manufacturing, all of that is spelling trouble. no salaries coming in, high debt. we're going to see these cuts start -- charles: right. >> and, but it's going to be too late, and and we're going to have -- charles: by the way, i saw a twilight zone episode like that, you know, where they finish the guy fired everyone except he was the last one and then, of course, they took his job too, the same computer system. let's talk about the market, right? no matter what, your job to try to find opportunity. that's what you do very, very well. you like -- you've got a value idea and a growth idea. t and l, i'm not particular -- familiar -- >> travel and leisure. this is a really hot stock. you're getting it at a 50% discount. they run all these resorts in the caribbean -- charles: bottom line, the upper

echelon still has a lot of disposable income. $5000 billion just from money markets alone, they're doing very well and spending that cash. >> they're spending it, and they can go on vacation, and they can work from anywhere. and a lot of people aren't really working. so that that's their value, and you have a 3.57% dividend -- charles: almost 6%? 5%, you said? >> 3.5. and then spotify which you're getting -- really, yes, it's come back bigtime, but everyone thinks it's dead because you have apple music, but 1309fy is it because spotify goes right through roku, right into the television. people are using spot final. i mean, podcasts really are -- spot final. podcasts are not just the future, they're the here and now. spotify, i think we're going to see a double there. charles: what blew my mind from spotify, i read last month that 1200 artists made over a million

dollars on spotify, and the majority have never cracked the top ten. you've got niches. if you get a good fan base, you could do extraordinarily well. my only problem, i guess, is the stock can be volatile. we had a disclaimer, hey, it may not be for the faint of heart. i've been in the stock for a few years, and it can be a wild ride at times. >> spotify especially can be a wild ride, but i love your point which is it creates opportunity, and that's what's so wonderful about this country. charles: right. >> spotify is like the absolute pin if cl of -- charles: i'm ready to break out my guitar. [laughter] there's got to be somebody out there that likes bad music. hillary, thank you so much. have a great weekend. how much would you invest in, let's say, the next patrick mahomes or anthony edwards? we've got the founders of vestibule, they're going to give you insight into how you can invest in a professional athlete. that's next. ♪ ♪ and the message coming from my

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charles: we are talking about where to invest your money and sports. those conversations always bubble up. if you're a sports fan or interested in alternative investment, got something for you. joining the is e barto about and parker brand. i read the story, investing in athletes are having a piece of the action has been around in different forms, but you've changed it a little bit. talk about it. >> thanks for having us. investable, there are different companies that tried to create a stock market to invest in assets. whether it was the wrong time, right idea, we feel now is the best time to start something like this.

what we build, we build a first of its kind investment platform that is manipulated and allows investors, nonaccredited and accredited investors the ability to invest in careers of athletes, with distribution of what they make on the field their entire career. charles: how does it work? does an athlete get the money upfront from these investments and pledge a percentage of their earnings? and is it just from salary from playing a particular sport or does it include endorsem*nts? >> we want to make sure athletes can realize their full value and invest in that. the athlete goes through an initial offering process like the company would and after that offer closes they get to keep 80% of that money and the rest we file for him. the greatest problem is on the actual investable apps, they

can trade their assets. charles: i will ask about particular names, some of these sports, they are making $75 million a year. there was a time 10 or 20 years ago when it seemed like a better idea, looking at other sports, wnba to me, would love to invest in those players because i see that as a league of upside percentage right now. >> we have 20 hours to go. >> as a girl dad you are in the right spot. women's athletics is booming, the unique thing about women athletes is similar to their

male counterparts, marketing dollars versus on the field or on the cart dollars, women will be working with female athletes, those paybacks from distributions from marketing dollars off the field or off the court whereas most male athletes come on the quarter on the field and able to use that as the actual distribution method. charles: tell us some of the names that signed up. >> our launch when you download the apps, a linebacker for the denver broncos. the perfect athlete coming out of college, he was playing out of position. they say if he was used differently, he probably would've gotten drafted. here he is outside linebacker, gets to rush the passer for the denver broncos and is on the last year. we know if he performs the way

we've seen it, he is up, pay him a bunch of money. as an investor, i see some capital appreciation and higher distribution for an investment. charles: name, image, and likeness, does it work for you? younger folks have been making money already. a few years ago that wasn't the deal. >> we have two thoughts at oklahoma state. we missed out on that. i am glad those guys and girls are making all the money they can and on our platform we have college athletes, we will do ipos for them, pro basketball and pro football as well. we let those dollars stay with college kids and when they become pro we start monetizing. charles: a great idea i will be watching closely. thank you very much.

to my columns. kelly o'grady is with me. i will start with you. does the start you in investing? >> one of the greatest plates on investors or young people today is sports betting. we opened up sports betting. i know so many that follow the sport closely and wanted on the action. the endorphins that you get is a strong but to focus that energy in a productive way, risky sampling. >> are used to evaluate investments, you think about exit opportunity, you are absolutely right, sports betting is hot. i haven't seen that work on the

business cycle. volatile asset, it seems more like a meme stock. if they get hurt. then i can make that -- charles: let's stay with younger investors. a new poll out between ages people are collecting, 21 to 43, 44 and over, i find it fascinating. of the audience could check this out. watch this leap out at me. i collect watches. i've also known younger people who invest in watches. are you surprised the concentration of younger folks investing in these things whereas 44, not excited at all? >> the younger generation felt priced out of the traditional investments like real estate,

this is an emerging market. i could make a buck and hope they are investing. charles: sneakers, 30%. >> we see the watches and the wristwatch is a staple of business for so long, it made a resurgence, those online forums. what does not surprise me at all is the areas where over 44 have a larger coin collection than folks -- makes sense to me. charles: it it is high for 21 to 43. i saw this video earlier of a young lady being interviewed in miami. i want the audience to see you. she was asked if 75,000 was enough. let's take a look. >> would you date a guy who makes 75 k are year?

>> that so cute. now. with inflation in this economy i could not. couldn't afford our groceries. i am buying organic. seed oil, couldn't afford that at whole foods. no whole foods. we are back at publix like sales action. like walmart groceries. charles: sounds like a this but it also sounds realistic. >> life in miami and new york city is not cheap. the follow-up question would be, is 75 the earnings potential? there's tons who take no in home and are making $0, taking on debt. >> i would dates on to make 75k if that's the start. where are they going? are they driven? someone could make 100 k.

charles: the number is one hundred k. i don't want -- the idea, they are not on their way. they won't ever get there. >> the song of the summaries i'm looking for a man in finance. it speaks to this. they want someone with earnings potential. are you investing in that? are blowing it on deals? they got me through many times. charles: if you make 75 grand don't waste your time in whole foods. speaking of products, cosco, they want to do the nicotine pouches and they have a knockoff, these -- i've got a minute to go. madison, you are a value conscious person. would you go for the knockoff or the real deal? >> the teaser.

if they come, yes i would. also love cosco. we last the experience of them all. go to costco and get what you need. my dad says of cosco doesn't have it you don't need it. charles: the houses out of their, to your point, i love shopping at costco. that is a record for that bad boy. would you buy the cheap proxy? >> if you ever see me walking around you know it is too expensive. i am in. charles: stop teasing us. go with it. if you have that, don't go to miami. that's all i am saying. take us through the last hour of trading. liz: no knockoffs.

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Wall Street analyst Charles Payne discusses investment prospects.

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