"MAKING MONEY."
♪
CHARLES: WE BEGIN WITH A
"FOX BUSINESS ALERT," FOLKS.
BIG CHANGES IN THE RICHEST
PEOPLE LIST.
ELON MUSK HAS BLAZED PAST WARREN
BUFFETT AND TIMING COULD NOT BE
BETTER, MORE REFLECTIVE OF A
WORLD AND BUSINESS STOCK MARKET.
ON THE ONE HAND, YOU HAVE BRASH,
COCKY, IMPATIENT ELON MUSK, WHO
WANTS TO CONQUER UNDERGROUND,
ABOVE-GROUND, WANTS TO TRAVEL TO
OUTER SPACE TO MAKE PEOPLE’S
LIVES DIFFERENT FOR PEOPLE ON
THE PLANET.
EXTREMELY PATIENT WARREN
BUFFETT, "ORACLE OF OMAHA," HIS
INVESTMENTS ARE IN DAILY HAB
BUSINESS.
BOTH ARE FOLK HEROES FOR
MILLIONS.
IT IS ABOUT THE CONVENTIONAL
WISDOM AND NAYSAYERS WHICH HAS A
WHOLE NEW CROP OF INVESTORS IN
THE MARKET SAYING SAME THING.
EXPERTS ARE COMPLAINING ABOUT
EVERYTHING FROM CENTRAL BANK
POLICY, TRAILING PRICE, EARNINGS
RATIOS WHILE MISSING THE RALLY.
MILLENIAL INVESTORS LOOKING FOR
WAYS TO INVEST IN THE STOCK
MARKET.
THEY ARE BUYING THINGS THEY
BELIEVE IN.
I’VE BEEN A FAN OF BOTH ELON
MUSK AND WARREN BUFFETT.
I TRADED THE WAY THEY TRADE,
INVESTED THE WAY THEY BOTH
INVEST.
THIS CHANGING OF THE GUARD SO TO
SPEAK IS ABSOLUTELY FANTASTIC.
I WANT THOUGHTS FROM HERITAGE
CAPITAL PAUL SCHATZ, COURTNEY
DOMINGUEZ, SENIOR ADVISOR POUR
PAYNE CAPITAL.
BY THE WAY I’M NOT AFFILIATED
WITH PAYNE CAPITAL.
COURTNEY, AMAZING DAY WITH
NASDAQ AT A ALL-TIME HIGH.
ELON MUSK TO PASS WARREN
BUFFETT, WHO SAT ON $130 BILLION
FOR ALMOST ALL OF THIS RALLY.
THE DIFFERENCES REFLECT THE
DIFFERENCE IN INVESTING STYLES.
OLD WALL STREET MISSING A RALLY,
OLD YOUNG MILLENIALS ROCKING AND
ROLLING.
>> I HAVE ALL THOSE FRIENDS,
ASSOCIATES, EVERYONE THINKS THEY
DON’T HAVE A LOT OF CASH ON HAND
A LOT OF THEM DO.
THEY’RE DEFINITELY INTERESTED IN
GETTING INVESTED.
I AGREE WITH YOUR POINT.
THEY’RE REALLY SEEING THEM COMB
IN.
TESLA IS INTERESTING.
IT IS PRETTY EXPENSIVE.
TRADING 430 TIMES FORWARD
EARNINGS COMPARED TO THE
S&P 500, ONLY 27 TIMES FORWARD
EARNINGS BUT YOU DO HAVE A LOT
OF GOOD SIGNS I THINK IN THE
SHORT TERM.
FOR EXAMPLE, THERE IS A REALLY
BIG SHORT SQUEEZE ON THIS.
THERE IS OVER $20 BILLION
GETTING BET AGAINST THE STOCK.
ONLY A QUARTER OF ANALYSTS
RATING IT AS BUY.
THAT IS A GOOD SIGN IN THE SHORT
TERM THAT IT COULD PROBABLY GO
EVEN FURTHER FROM HERE.
CHARLES: YOU KNOW, PAUL, JUST
EVEN PEEKING OF P-E RATIOS, I
TELL FOLKS ALL THE TIME.
LOOK AT THE END OF THE YEAR, THE
STOCKS THAT DID THE BEST, THEY
HAVE P-E RATIOS THAT EXPERTS
WOULD NEVER HAVE TOUCHED.
I THINK THERE IS SOMETHING GOING
ON.
WALL STREET HAS BEEN DISSING IT
FROM THE VERY BEGINNING.
THE COMMON REFRAIN IT, WILL END
UGLY.
GIVE ME A BREAK!
SOMETHING AMAZING IS HAPPENING
HERE.
>> YOU’RE RIGHT.
TWO POINTS.
ONE VALUATION IS PROBABLY THE
SINGLE WORSE TIMING TOOL ON
EARTH.
OVERBOUGHT MARKETS GET MORE
OVERBOUGHT.
ONCE THEY GET EXPENSIVE -- LET’S
NOT FORGET, VALUE ITSELF, THE
VALUE SECTOR HAS TRAILED THE
ENTIRE BULL MARKET.
VALUE VERSUS GROWTH IS PROBABLY
ABOUT AS CHEAP AS IT EVER HAS
BEEN BUT IT HAS YEAR AFTER YEAR
VALUE GOTTEN CHEAPER AND
CHEAPER.
USING P-E RATIO IS NONSENSICAL
RIGHT NOW.
REGARDING TESLA, I BE THE
CHICKEN LITTLE.
I WILL BE THE OTHER SIDE.
WHILE MUSK IS A REVOLUTIONARY
AND HE IS ONE OF THOSE RARE
PEOPLE LIKE BUFFETT, LIKE
STEVE JOBS, LIKE BILL GATES,
PERSONALLY I JUST HAVE A REALLY
TOUGH TIME, MY WHOLE CAREER,
BUYING STOCKS THAT GO PAIR ROLL
BIG.
I WILL ARGUE, GO OUT ON A LIMB,
THIS COULD BE A PEAK FOR TESLA.
I’M NOT DUMB ENOUGH TO SAY IT
COULD BE THE PEAK.
IN ORDER TO SHORT STOCK, THE
BROKERAGE FIRMS ARE CHARGES USE
SURE JUST INTEREST RATES.
I’VE SEEN THINGS LIKE 100%.
ALMOST IMPOSSIBLE TO GET STOCK
TO SHORT ANYMORE.
THAT IS USUALLY A SIGN THAT A
STOCK HAS GONE PARABOLIC.
NOBODY WANTS TO LEND IT OUT.
THERE IS SOME PEAK COMING.
I GET WHY PEOPLE ARE ON BOARD.
I LOVE THE PRODUCTS, LOVE THEM,
A STOCK LIKE THAT, 70% IN A
COUPLE OF WEEKS, IT IS JUST, FOR
ME IT IS I’M WAY TOO CHICKEN TO
VENTURE THAT.
CHARLES: I GOT YOU.
I GOT YOU.
I WILL SAY LAST WEEK WE’LL SEE
THE MOTHER OF ALL SHORT
SQUEEZES.
ONCE THEY REPORT ON
JULY 22nd, ELIGIBLE FOR THE
S&P 500, I THINK THIS STOCK
BREEZES PAST 2000.
IT MAY COME DOWN SHARPLY FROM
THERE.
YOUR POINT, SHORTS HAVEN’T
GOTTEN IT YET, 20 BILLION TO
COURTNEY’S POINT THEY HAVE LOST
THEIR SHIRTS BETTING AGAINST
ELON MUSK.
TALK ABOUT WHAT PUT SPARK IN
TODAY’S SESSION.
NEWS FROM PFIZER AND BIONTECH,
BOTH FDA APPROVED FOR FAST TRACK
ON THE COVID-19 VACCINES.
IN FACT THEY WILL SAY THEY WILL
MANUFACTURE 100 MILLION DOSES BY
THE END OF THE YEAR.
SO I MEAN, COURTNEY, WHAT DOES
THAT MEAN IF WE DO GET THE
VACCINE?
MODERNA, NOVAVAX, BIONTECH,
THESE STOCKS ARE THROUGH THE
ROOF AGAIN TODAY.
WHAT DOES IT MEAN IF WE GET A
VACCINE AND WOULD YOU BE AN
INVESTOR IN THESE NAMES?
>> A VACCINE WILL BE ONLY A
POSITIVE FOR THE MARKETS.
REALISTICALLY THINGS ARE ALREADY
GETTING A LITTLE MORE BACK TO
NORMAL.
WE’RE STARTING TO SEE SPENDING
PICK UP.
WE’RE STARTING TO SEE ECONOMIC
ACTIVITY PICK UP A LITTLE BIT
HERE.
THAT IS WITHOUT THE VACCINE.
IF WE HAVE THAT IN THE HORIZON,
SEE A LIGHT AT THE END OF THE
TUNNEL.
WE HAVE A LOT OF CASH.
WE HAVE $5 TRILLION SITTING IN
CASH.
EVERYONE GOT SO NERVOUS IN
MARCH.
IF WE SEE THAT LIGHT AT THE END
OF THE TUNNEL, I THINK YOU WILL
SEE THAT FLOOD BACK IN.
CHARLES: PAUL, TOO THAT POINT,
CASINO NAMES ARE THROUGH THE
ROOF.
PENN CASINO SAYING 90% OF THEIR
PROPERTIES ARE BACK ONLINE.
CRUISE SHIPS ARE DOING WELL.
WHAT IS YOUR, HOW ARE YOU
MODELING YOUR PORTFOLIO
VIS-A-VIS A VACCINE OR NOT?
>> IN, VACCINE NEWS HAS ZERO
PLAY IN OUR PORTFOLIO.
TO ME TWO REASONS WHY STOCKS ARE
RALLYING.
NUMBER ONE IS THAT THE STOCK
MARKET DISCOUNTING THE REOPENING
AND ECONOMIC ACTIVITY THREE TO
SIX MONTHS DOWN THE ROAD.
THAT IS WHY YOU SAW THE PEAK ON
JUNE 8th.
AND EXCEPT FOR THE NASDAQ 100,
THE REST OF THE INDICES HAVE
TRADED LOWER TO SIDEWAYS BECAUSE
THEY SAW STUMBLING BLOCKS COMING
OVER THE SUMMER WITH REOPENING.
REAL REASON IS, LET’S FACE IT,
WHEN THE FED IS THERE WITH A
NUCLEAR BOMB OF LIQUIDITY IT IS
VERY DIFFICULT TO HAVE ANYTHING
MEANINGFUL ON THE DOWNSIDE AND
THAT’S THE NUMBER ONE REASON,
HOW MUCH MONEY IS AVAILABLE AND
HOW QUICKLY CAN IT GET INVESTED.
SO THE VACCINE NEWS, I DON’T
THINK, JUST LIKE I DON’T THINK
THE SPIKE IN CORONA CASES, THE
MARKETS DON’T CARE.
ON HEALTH SIDE, SURE, BUT ON
MARKET SIDE, DOESN’T MATTER
ANYMORE.
CHARLES: RIGHT.
>> I THINK THE VACCINE, THE
MARKET IS DISCOUNTING AT LEAST
ONE IF NOT SEVERAL VACCINES
BEING AVAILABLE BY YEAR-END.
AGAIN, IT IS ABOUT THE TSUNAMI
OF LIQUIDITY AVAILABLE.
WHAT YOU’RE SEEING TODAY AND ON
FRIDAY, PERHAPS ANOTHER FALSE
START BUT THE SMALL CAPS ARE
STARTING TO PERK UP A LITTLE BIT
AND --
CHARLES: BUYING STARTING TO
SPREAD OUT.
>> THIS IS WHAT THE MARKET HAS
BEEN WAITING FOR SINCE IT HAD
THE ALMOST 10% PULLBACK IN JUNE.
CHARLES: YOU KNOW WHAT?
THAT SHARP PULLBACK WE’VE BEEN
GOING STRAIGHT UP.
WE’RE ON THE CUSP OF THE S&P
BREAKING OUT.
I APPRECIATE THE POINTS.
PAUL, COURTNEY, GREAT POINTS
