estate, even the art fund. couldn't of touch this. look at that thing. from 200,000 to a million bucks from 2003 to 2013. finish if that's because there was an artificial control over supply and demand. supply really, right? so new yorkers, of course, the demand part is always will because you're trying to get across town. well, the jig is up, and the loser, of course, will be the consumer which in many ways is the exact opposite outcome that's promised from free markets. sadly, i think it's only going to get worse in new york city as they make driving de facto, el lee or -- illegal or, certainly, prohibitively expensive. the good news though, there will be a whole lot more bike lanes. liz: yeah, and most ubers don't smell like cigarettes. [laughter] charles: all right, good point. liz: charles, happy new year, and thank you. nothing like hitting the ground sprinting and then slowing to a walk. the dow is actually walking

backwards at the moment, it's down 73 points. this after earlier advancing 304 points. and then you look at the s&p which had jumped 55 points at session highs, it's now up a paltry 7. now, the nasdaq session high jump of 237, those points have been chopped in more than half, down about 101 points -- up 10 the 2 points at the moment. tech is still leading this rally with materials in second place. if you look at the nasdaq 100 leaders, you've got evs and semiconductor tock stocks. lucid in the top position. tesla, though, is right up there. tesla, after closing out the worst year in its history, is zooming higher by about 7% at the moment. thanks in part to the barron's bounce. the stock a buy now due to its decade head start on other automakers and its ability to turn out cars at a lower cost than competitors.

the s&p saw a monster rally of 2.3% or 86 points back on friday. now, why am ily revisiting pretty? well, the dow powered up 700 points on friday, which was good for 2.1%. all of this on hopes that inflation is coming down. where do they get that idea? well, wage growth cooling in december which investors took as a sign that the federal reserve will slow its pace of interest rate hikes. why is dow now negative? today the at 12:36 p.m. eastern time a sign hit the tape to stop wishing. that the fed is going to somehow reverse. san francisco principal reserve chief mary daly telling "the wall street journal," quote, there's agreement among fed policymakers that inflation is more persistent than thought and that the biggest risk is that inflation expectations will drift up after inching down. that uncertainty and a possible recession triggered by perhaps an overaggressive fed has companied like goldman sachs

reportedly about to lay off 3,200 employees sometime this week as it faces a crop in deal making and a tough -- a drop in deal making and a tough economic environment. up 1.6% right now, but no matter what those fears are, that does not mean investors have nowhere to go to pump up their portfolios. join toking me now in a fox business exclusive, blackrock cio of fixed item rick reider. rafael boss tick afternoon of the atlanta fed came out, and this was a little more pointed even, he specifically said rates will have to say high for a long time, well into 2024, and hen he followed that by saying it's fair to say that the fed is willing to overshoot. is that going to be a mistake? if. >> so i think there's something really complex around the way the economy is today. you have an economy, a modern economy, that has some parts of the economy that are interest rate sensitive. things like housing and in commercial real estate. real estate markets are very

sensitive, auto sector is very sensitive. but then service sector isn't. if the fed overtightens, what happens is you really hit parts of economy, you create what ises a two-step economy. so i do think it is dangerous. listen, i think the fed and the comments, like you said, this is a fed that is going to keep rates restrictive. markets have gotten very excited about the fed's going to start easing again. i think it's foolhardy. they keep coming out and telling you they're not going to do that. i don't think they need to go that far in terms of tightening, but i think the idea of easing doesn't make sense for a while. liz: fed chair powell will be speaking tomorrow, do you think he's going to double down and be extraordinarily serious like the elementary school principal saying stop thinking that i'm not going to do what i say i'm going to do? >> listen, i think the fed today is not symmetric in terms of their disposition. they want to cure inflation. we are still at the point, we're still not at the level they want us to get to. you have to see the day that,

and i think chair powell's going to be clear about we haven't solved the issue yet. and the fed is not necessarily a forward-thinking institution in one regard. hay need to see the data before they back off, particularly when you've had such persistent and elevated levels of inflation, so i think he's going to remind us of that tomorrow. liz: and you don't think they will reverse and start cutting until -- >> i think 024 is a possibility -- 2024. there's a series of projections that in '23 that you'll start tightening and then start easing again, i don't think you can see that. you need to see data -- the gig economy really soften and inflation come at target. i don't think it's a '23 event. liz: let's not assume people understand why the fed is hiking rates. it's because when you raise the cost of borrowing, that will turn down on demand. it is starting to cool. but we are getting on thursday december price index which is a really good sense of consumer inflation. it's like one of the better ones that we have.

it's not the fed's favorite, but here it is. you can see the high was june, 9.1%, and the most recent print in november, 7.1%. expectations for december will be # 6.5% year-over-year. so ticking down a bit but nowhere near 2% which is what the fed says that's when we'll hit our target. >> totally. we're still far away. the thing that we're confident is you get into the middle part of this year, some of the base effects where we were last year, things like energy, if it just stays here relative to last year, that's an inflationary dynamic. we mow shelter's coming down. used cars, there are things that are clearly suggestive of -- we think we're going to get a softer cpi report again, but we're still, to your point, we're still pretty elevated relative to where the fed wants us to be. liz: cars that list car company on the s&p 500, last quarter they looked pretty dismal. >> terrible. liz: that's an interest rate sensitive sector, is it not? if because of auto loans. would you avoid that area?

>> i think for the time being you have to be really careful and, yes, the auto sector -- your comment about tesla, that's a pretty significant degradation in price, but, yes, i think you have to be careful. commercial real estate, residential real estate, auto, anything that has that intense interest rate sensitivity you've got to be careful for a while. and like you say, it's not like we're going to reverse course and start easing. so we're going to pause when fed pauses, which could happen the end of this quarter, beginning of next quarter, it's still going to be a restrictive rate, and i think that's really important for the interest-sensitive parts of the economy. liz: you just said what to avoid. what should investors watching right now look toward as an opportunity to park money and see some keels -- deals? >> so, first of all, this is one of the times, of i don't have this many times in my career where you can buy quality fixed income yielding assets. for most of my career, the last decade, last 0 years -- 20 years, 1-3-year interest rates

were at 1%. they're over 4%. you can buy r -- aa a a assets, credit cards, student loans and clip 5.5-6. if you think about what equities are going to do this year, could they generate an 8-9% return? maybe. but it's going to be volatile. you can clip 6% in good quality assets, that is nirvana. liz: in fact, if you look at stocks that are too dangerous, then you turn to corporate bonds. we scraped through and found three that we just thought, let's put it up. i know you don't pick individual names, but the corporate debt, 2.6%. amex, 3.4% maturity in 2024, ubs bonds corporates, 4.49%. that's higher even than 2-year. so would you say that that's the way that investors can find real yield and at a little bit of a calmer pace? >> 100%. and, by the way, without taking significant -- even if interest rates move, your price to

volatility,you're buying 30-year treasuries or 30-year rates, you're going to take some price -- if the fed decides to go further. buying 2 and 3-year corporate bonds is a very safe investment, and the yield is pretty darn atrack i. you're seeing money flow into these types of assets. by the way, the equity market you're getting yield in a good deal of areas now, and there's a stable sector of health care, etc. liz: blackrock has a strategic income opportunity if fund. we know the s&p dropped 20%. we know that your fund last year fell 5.6%, so it certainly outperformed the s&p, but when do you expect this to turn around -- [laughter] >> yeah, yeah. so, by the way, the bond index was down 13 and change percent. never proud of being down 5.6, but when you outperform an index by 700 and something, pretty good. so, listen, i thinkable year because you can clip yield and buy quality assets, we're

carrying it over 6 and, boy, if you get a fed that's pausing and corporate spread sites, you can get high single-digit returns. that's pretty darn attractive and not take a lot of risk. high yield emerging markets to get a bit more risk, you can do that, but, boy, you don't have to take a lot of risk to get nice yields. liz: you've got the better part, i believe, in u.s. treasuries. wills a big chunk of cash, non-u.s. sovereign department, non-u.s. credit. just so people understand what is in there. where do you see, we're looking at the 10-year and the 2-year, bonds had a pretty horrific year, but there is also the belief park it in the 2-year because that yield is really good. can you just explain to viewers why you hear people say the bond market had a bad year and yet they're saying go into the 2-year? >> so now you think about where we started, last year, at this time last year, the federal funds rate was 0. the fed was at 0, and now they're getting to 5%.

you're now pricing in maybe the fed's going to go to 5.5, maybe. we're talking about 50 basis points. the fed did four 75 basis point rate hikes, now your carry, your interest income, is is so profound that you're still going to have significantly positive return because your coupon is going to offset that. it's a good time to own some income-producing assets. now you can do it without taking much risk. liz: and, again, i've got to ask you about the s&p because if i hear one more person or economist say that the s&p is going to bottom around 3400, i mean, we are not near that right now. we're well above it. or even, obviously, jpmorgan's guys say 3,000. this quarter, because we're going to have an earnings version. do you agree? do you believing that it's going to -- >> so i don't. i mean, quite frankly, i run a big equity fund, i wouldn't mind ec with i thinks to trade down to give an opportunity to buy.

i don't think they're going to go down that much, but there's no doubt there's margin compression. the data in china over the last quarter is going to show up in some of these earnings, some of the revenue numbers. listen, i think equities are uninteresting relative to what you can get on the bond side today. could you trade down a bit on some scarier numbers this quarter, for sure. listen, i think it's really hard to create negative earnings for companies on a year because of so many big companies generate return on equity. so i think it'll be an okay year, flattish to up, you know, single digits in equities. but could we trade down first? for sure, particularly if the fed kneel -- feels the need to overtighten. liz: rick, good to see you. i'm going to keep asking you back, this is one of the most exciting times in history. >> i agree. the volatility last year, by the way, people think that the year starts and all of a sudden liquidity improves, we're going to have volatility around in the environment for a while. liz: blackrock's rick rieder.

stocks are uninteresting, compared to the corporates and the yield you can get there. all right, could the economy be really that bad if this luxury car is selling like hot cakes? the ceo of rolls royce motor cars is about to tell you what's behind, yes, record sales of its six-figure ride and his company's push from a legendary luxury brand into the ev revolution are. "the claman countdown" is just starting to gun the engines. dow is down 100 points after being -- having been up 300 points earlier. we are back in a minute. ♪ ♪ the day you get your clearchoice dental implants

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kickoff returns for touchdowns is this: great news from the supreme courts world. nfl player damar hamlin has been released from from the cincinnati hospital, he is now back in buffalo. he, of course, was hospitalized after suffering from cardiac arrest a week ago on the field, a week ago today, during the monday night if football game against cincinnati the bengals. so damar's doing great. that's unbelievable, one week in the hospital. good for him. general motors trying to convince washington, d.c. that the cadillac lyric is an suv and not a car. why? because the lyric's price tag starts at $62,990, but to qualify for up to $7500 in federal tax credits for evs, cars have to cost $55,490 or less. electric suv, however, have a higher price benchmark for the tax credits. the u.s. treasury says, sorry, the lyric for now is a car and not a crossover suv.

so as gm's cadillac attempts to lobby for a change, there's probably no way this e e v will ever qualify no matter what you call it. but apparently, rolls royce doesn't need incentives. last year rolls royce motor cars sold most vehicles in its 120-year history thanks to unprecedented demand for its brand new $400,000 fully electric model, the specter. who is doing the buying? joining me now is the ceo. great to have you. who is buying half a million dollar cars? >> i mean, quite a lot of people. first of all, thanks for having me, liz. quite a lot of people. we have broken a record, as you rightly stated, over 6,000 cars sold to clients worldwide. by the way, that is not including specter. specter comes into the market end of this year, so first deliveries will happen at the end of this year, so it is the very much our suv, our big

luxury sedan and also ghost, the the more informal way to drive a rolls royce. all three of hem deliver that great result, and i think what we have seen worldwide is an ongoing rejuvenation of our brand. so we are now at an average age of 42 worldwide and are even younger in the mini buyer, and that is not only due to asian clients, but also very much to our united states clients over there. so quite an interesting development and also a big shift away from formerly very much a chauffer-driven brand into self-driving brand. maybe 10 years ago 80% cho ferd, 20% self-driving. this is exactly the other way around, 80% are driving now. [laughter] so it's a remarkable shift. liz: people want to drive their own cars, especially if you pay that much. i get the whole grey poupon

moment where the chauffer comes up and opens the window. no, that is not the image right now that you have. but you mentioned asian a buyers. china has been shut down. i would imagine that there's been a bit of a slow todown. what about north american buyers? >> i mean, north american buyers, we haven't seen my slowdown here. -- any slowdown. we're very strong going into with 2023, fine to 2023 we have orders. so for that reason, i think it's the great. and we haven't seen any slowdown. yes, china was, think this i -- i think, in different waters due to the circumstances around covid is. but i must also say also here still second best record year or the best year, second best year ever for us even under these difficult circumstances. so all in all, i mean, a brilliant record for us world wild and nearly all markets worldwide performed extremely well. liz: yeah. for people who don't know, bmw's the parent company of rolls.

let me ask you about that thing behind you. that is the specter, the all-electric. starts at more than $400,000. i love the color. i think my dress can, my whole outfit, my hair, it matches. [laughter] tell me what is in here and how fast does it go? tell me the features of it. >> i mean, this is the very first fully electric super luxury car on the planet, and i think we're going to stay here on the planet for quite a while, just us, over the next years to come. and one of your colleagues even said recently that being seen behind the wheel of a specter end ebb of this year and in 2024 is a similar thing like carrying the very first iphone in your pockets in 2007. so i think quite a mice comparison. and it is -- a nice comparison. and it is definitely that something that puts you in a different -- driving a rolls royce. it fits the brand extremely well. it's silent, and it's a very different way of magic carpet

ride, i would describe it. i had the chance to drive it a couple of hundred miles, fantastic. and as you stated in the beginning, very, very strong -- particularly from the united states. liz: well, if the u.s. is your largest market, wills some fear that we will see a recession. do you expect to meet, beat or come in the lower than last year's numbers for rolls royce? >> i mean, that is difficult to forecast now second week in january. i'm personally cautiously optimistic about the year that we should see, again, a strong year. but, i mean, it's early days s and we might talk again middle of in this year, and then i can talk better about it. so far we haven't seen any auto cancellations within the united states, even more orders are pouring in. so the business is quite resilient and strong apparently, and i'm glad about it. liz: no cancellations yet. good to see you, thank you. >> good to see you, liz. thanks a lot. liz: you bet. reefer mania hitting the empire state as new york opens its very

first legal weed store. so we sent madison alworth there on site to give us a first look at how sales are smoking up, the expected tax the revenues that might come from it and the possibility of unintended consequences. closing bell, 37 minutes away. dow is down 77 points. the s&p now up just 7 points. the nasdaq up 105, russell's holding on to 7 points of gains. we are coming right back. ♪ ♪ so it's decided, we'll park even deeper into parking spaces so people think they're open. surprise. [ laughs ] [ horn honks, muffled talking ] -can't hear you, jerry. -sorry. uh, yeah, can we get a system where when someone's bike is in the shop, then we could borrow someone else's? -no! -no! or you can get a quote with america's number-one motorcycle insurer and maybe save some money while you're at it. all in favor of that. [ horn honking ] there's a lot of buttons and knobs in here.

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♪ liz: fox market alert and, yeah, it is the dow that's really lagging here, but the swing is really important to note. the dow at its high up 304 points, now down 123 points. even rick reider of blackrock was shaking his head when he saw the dow go down another 100 points. the s&p up just 2 points now. stay with us, you might see it turn negative. nasdaq is up 9. -- 93. individual stock stories, lululemon forecasting a decline in its growth margins for the fourth quarter. the yoga apparel manufacturer shares are down almost 10% at the moment. did fairly well for most of 2022, but an 85 jump in inventory -- 85% -- forced the company to offer steep discounts and those plus higher costs accounted for lower margins. lulu is not alone, macy's is messy right now, down 7.25% after announcing it expects holiday sales to come in at the

lower end of its earlier forecast range of 8.1 billion to 8.4 billion in met sales. the department store also warned that consumer spending will still be under inflationary pressures for 2023, particularly in the first half of year. you know, it is not often that investors celebrate the possibility of bankruptcy, but it seems they're throwing a party for party city and bed bath & beyond, both of which are planning to file chapter 11 bankruptcy protection. party city planning to file within weeks as creditors take ownership. look at that gain for party city of 13.8%. according to reports, a creditor group which includes capital group company zinc and silver point capital are having restructuring costs ahead of the filing, and bed bath & beyond is charging higher by 23% after -- ahead of its highly anticipated earnings call tomorrow. some investors believe the meme stock may declare bankruptcy

before releasing that report. others believe that the earnings results will serve as a final indication that bed bath & beyond will need to file bankruptcy sooner rather than later. it's just $1.62 stock right now. bankruptcy news not the only thing helping those two stock the, buyout deals are propelling other companies, duck creeked pad paddling -- creek paddling higher after the insurance software provider agreed to be take thatten private for $19 a share. folks, look at your screen, it's above that price right now. it's at $19.04. the deal values duck creek at $2.6 billion. it's expected to close in the second quarter of this year. that's about 47% jump since friday's close that you're looking at right now, and paya holdings rallying 24% after being -- agreeing to be acquired for $9.75 a share. that deal is valued at $1.3 billion. cannabis goods company til

ray brands getting smoked right now, it is down 6.6% after post a second quarter loss of 6 cents per share, that's a 7.1% year-over-year revenue drop due to slowing demand for its weed products. now tomorrow the, you've got to stay tuned, 3 p.m. eastern, the ceo of tillray, irwin simon, is going to join me. we're going to ask him when he expects demand to pick up and how new york's brand new marijuana laws could boost profits because new york state just opened up its first legal recreational marijuana dispepsly with the hope of concern dispensary with the hope of grabbing what's projected to be the biggest market in the nation. we sent madison alworth to the very first legal weed retailer mt. state. hey, madison. what's the reception been like? >> reporter: liz, it's been strong. we actually had a full line here, but i think that they knee that our report was going live. even though it's legal in the state, this is a drug that's been illegal for a long time, so

perception is still a little nervous. but this is complete completely legal. of this is the first legal retailer, like you said. they've been open a week and a half, and they've had strong business from the start. we actually got here morning at 9:40, there were already two people many line, the store didn't even open until 11. people wanted to get here before product ran out because, like i said, sales are strong. that could turn into big business for the state, so taking a look at california, last year alone 770 million over that in tax revenue, that a state charges 15% on cannabis sales. here in new york they're going to be charging 13%. i spoke to some of the people on line, they said it's not their first time smoking which means that they've been buying on the illegal market. so they're happy to see the change. take a listen. >> i'm sure the state will be happy with the money coming in. now it's not going to illegal things, it's going to help other people open their own businesses that have been in prison. they shouldn't have been in

prison, it's a shame people were arrested for it. >> reporter: so right now 21 states have legalized marijuana. advocates applauding this change but, of course, those against it are warning that this could open up the flood gates, that legalization spurs other drug or alcohol use, increases crime and harms public health. take a listen. >> we're seeing increases in property crime, increases in violent crime, we're seeing increases in homelessness. it's it's not all, you know, sunshine and roses for, you know, marijuana legalization. >> reporter: so, liz, in this shop's been open for a week and a half, but starting tomorrow they're going to have more neighborly competition, connecticut will officially be allowed to sell cannabis products to adults starting tomorrow, like i said. back to you. liz: madison, thank you very much. interesting to get that first look. folks, what did i say going into this, we might see s&p turn

mega? it just touched -- negative? it just touched into the red just a few seconds ago, it is popping back up about 2 points. but, yes, it did turn negative a moment ago. dow down, of course, 100. the negativivity for the s&p is the first time this session, so pretty much fumbled all of the gains that we saw coming right out of the gate. up next, nasdaq ceo dana -- iowa dee that friedman took to the stage with me at the consumer electronics show on friday in vegas. i asked her about the ftx collapse and if that crypto exchange could have ever slipped by and listed on the nasdaq. wait til you hear her reaction. and we will get reaction from the godmother of spacs, betsy cohen. she gives us her outlook on the ipo market in the new year. will it remain frozen in permafrost? it's a fox business exclusive. closing bell, 25 minutes away. we're coming right back, don't

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liz: would ftx have ever, as you look at how you structure your listings, ever been able to list on the nasdaq? >> i think that the whole process of going public is one of disclosure and diligence. so if you are a firm that wants to come to the public markets, you hire banks and lawyers, and they do -- and you hire accountants, and they coa lot of diligence on you, and they then make you write up every risk factor that you have. every risk many your business, operational risk, legal risk, anything that's a risk. and you have seen companies really, frankly, through that process and that scrutiny -- liz: back away? >> -- they will not go public. and i think that process works quite well. it's not perfect, but i have to tell you i think given what

we're learning about what's happening with ftx, they would never have survived the diligence process, ever. there's no way. it's very clear how money was flowing from one entity to another and the self-dealing was happening. the fact that the, you know -- and they didn't have kind of a big four accounting firm, hay didn't have a board, they didn't have just general, basic governance overseeing that business, so there's no way they would have gone public. liz: that was nasdaq president and ceo iowa dean that friedman with me at the ces leaders in technology dinner in las vegas. she told me about the high level of disclosure and diligence that's required to go through the nasdaq's ip o process, but what about ipos, right? certainly, investors breathing a sigh of relief. just think about how much larger the fallout could have been had ftx extended to the to the public markets. already the ripple effect of ftx's scheme causing the crypto space to totally freeze over, plus the market as a whole has been a very harsh place to take

companies public over past year. the u.s. ipo market gone ice cold, falling to a 32 the-year low, and this comes after a rip-roaring 2021 that saw more than a thousand initial public offerings. 59% of which were special purpose acquisition companies, spacs, or reverse mergers. that that according to nasdaq data. 2022 saw fewer than 200 ipos in total. joining me now in a fox business exclusive is the godmother of spacs and cofounder and chairman of cohen circle, betsy cohen. one of the spacs that you backed was trading platform etora which was very big in crypto. you backed away from that one, and i know it was a mutual decision, but why? >> i think you really have to separate out good companies from investors' perceptions of good companies at any one time. and, certainly, the crypto overhang at the time that we were going to approach the market was significant.

and i think that a, you're right, this was a mutual decision. it is a decision that drives many, many of the well-run companies today, the volatility of the market, the investor perception and, in fact, i could call it an investor depression. liz: well, etoro, which was the company that you were going to reverse merge with and take public, they've been on this show before. and the ceo has talked very much about expanding and doing well, etc., etc. but you backed away from this one even before the sam bankman-fried/f ftx collapse. >> you have to remember that sam bankman-fried is not the only thing in the crypto market, that the crypto market was volatile before that time, that people were concerned about maintaining and the increase in prices in crypto. they had had begun to shatter a

bit. and so, you know, volatility is very different than good practice. and i think with etoro this is a very well-run, actually risk-averse company that has, will come to the public if market -- liz: will you be the one to take it there? >> well, i would hope so. will liz okay. so could be revisited possibly. >> absolutely. liz: i want to broaden the aperture to the ipo market which looked positively dismal compared to 2021. 2022 looked bad, will 2023 be worse? >> i think it's hard for it to be much worse, but i think it will be. i think it's a high bar -- [laughter] but the ip o market, as you have said, is at a 32 the-year low -- 32-year low, and it's not so much valuation, although those valuations have come down, valuations have come down and become more realistic.

it's really the volatility. and that's both in the financial markets and in the world as a whole. liz: what amazes me is so this news breaks that a canadian company is taking pay public -- >> right, one of ours. liz: you brought paya to the public markets. >> we did. liz: and yet price that they are offering right now paya is already -- i believe we can put it up on the screen -- is already hitting that level and slightly surpassed it earlier when we checked on it. so $9.69 at the moment. of it's almost there at -- i believe it was the 9.75. does that tell you anything about a valuations still needing to come down a bit more overall? >> remember that the valuation was pegged at $10, so it really is at the price or at the value that we ascribed to paya at the i'm that we went public. liz: and finally, are you planning to take any of your spac ifs public this year? >> i think that we really have

to find the right company in the right sector, and that will be the determinant. but, you know, we invest up and down the capital stack. there's an opportunity to invest earlier as well as to invest in the public market. liz: well, you were among the first, if not the first, to create the spac world, so it's great to have you. thank you, betsy. >> thank you, liz. liz: all right. sam bankman-fried, speaking of which, his charitable donations under fire. will those donations be clawed back? charlie has some news on that a to break when we come back. closing bell, 14 minutes away. so the dow is still down 110 points, the s&p just slightly lore, i'm going to call it flat, but it's down just about half a percent at the moment. nasdaq's up 78. ♪ ♪

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bit today on one charity. it was a fascinating thing that he did. it was called hackathon. it was for underprivileged students in broward county where they did a shark tank like event. it was kind of a competition where they tried to come up with computerized solutions via computer programing for various problems. kevin o'leary was one of judges. david ortiz was one of the judges. whitney cumming was one of judges. for all told we gather, we have calls out to broward county school board because they were in partnership with ftx, there was 10 of them, about a million plus dollars. these kids are in college, come from underprivileged backgrounds. liz: the money is probably spent. >> probably spent. according to bankruptcy attorneys we talked to they

might have to give the money back. this is where it is getting really, really scary. if these kids could claw back money from these kids. liz: come on. >> we should point out i don't know why the broward county school board you think wants to talk about this they're sort of road kill in this, they're not perpetrators in this, why they're kind of covering this up it seems to me. they're not calling us back. they're ignoring our calls. we want to know if these kids are indemnified or not. i'm hoping they are indemnified. these are not kids that have a lot of money, right? the last event was in march 2022 so last march. tough go to sort of stop putting things together to see whether it's a clawbackable event or type of money. if the bankruptcy trustee and the sec, all the prosecutors are saying that the fraud began before the implosion that money

could be clawed backable. it is not, it is part of the time, when the fraud, the ponzi, the theft, he was commingling so much funds it was starting to begin and that is kind of what you hear from the, if you read the, read the various sec charges, if you listen to the bankruptcy trustee. we should point out that his aunt, sam bankman-fried's aunt, a woman named barbara miller, very politically connected. she was one of sponsors for this stuff. we should point out barbara miller has not returned our calls for comment this is getting pretty deep. i'm not casting aspersions on miss miller, i'm sure she wanted to do the right thing, why isn't anyone calling me back why the poor kids will have to spend the rest of their life working off -- liz: do they, if the money is gone? >> i don't know. i don't know. it is claw backable.

>> ask harvey pitt. >> well, we're talking to bankruptcy trustees saying technically, maybe the bankruptcy trustee in this case won't go there i hope he doesn't, but technically it is kind of open season if you can prove the fraud reached back, at least to the time of the, of the, of the hackathon which by the way, this was a huge thing. i'm, this was like the whole county. liz: okay. >> broward county is second largest county in florida, home of fort lauderdale, on and on. >> charlie, good stuff, thank you very much. keep us posted. closing bell we're about four 1/2 minutes away. dow on pace for the second down day in the last three. earlier just before 12:30 it was not looking anything like this. the dow was powering higher, so was the nasdaq. the s&p and the dow are now negative. nasdaq was up 54 points earlier.

let me get my high-tech research. the high of the session was 237 points moving up. nasdaq right now at up 49. russell up 3. had been higher by 24. why? where is this trigger happening? a lot of fed heads came out today, mary daily of san francisco fed, rafael bostic of atlanta fed saying we still have inflation. don't get excited. we'll not cut rates. we'll continue to raise rates. inflation fears are still there. we're less than three days away from getting the key inflation reading that would be the december cpi, consumer price index. year-over-year estimates have the number coming in 6.5%. that would be a huge step at least in the right direction compared to november's 7.1% number year-over-year but as inflation fears are still very much in play because you know that is what the fed is thinking, still as they come down, today's "countdown" closer

doug foreman joins us with recession-proof picks. he is cio of kaine resnik, manages 47 bill under management. okay you have to pounce now and tell us because inflation is coming down inch by inch but still well above the 2% guideline the fed is looking for. >> yeah. obviously we need to get the inflation rate down a lot more than it is currently. in you notice last several months, three or four in a row inflation came in lower than expected. inflation is heading in the right direction. it just takes some time. granted the fed has some more work to do but there is little doubt in my mind, every major input into the inflation equation, raw materials, rent, oil prices, et cetera are all clearly heading in the right direction. so it is only a matter of time until we get down closer to the fed's target and it is not as far away i think many investors believe. liz: it is very -- that the consumer thinks they will slow

down, your three picks, monster beverage, brown foreman, mccormick, the spice company, you think those are consumer staples versus consumer discretionary? >> yes. they're consumer staples. monster is and energy drink company. brown foreman is spirits company, primarily whiskey, the other is a spice company, mccormick. these are types of products people buy even in slow and no-growth periods, even recessionary periods. so we believe that the demand will stay relatively strong. these are companies hurt by rising input costs, very thing we're talking about inflation. so it is inflation moderates, they're pricing actions started to catch up with the rising input costs. we think there is a good case for margin expansion for these companies over the next six to 12 months. liz: i would say monster saw huge gains last year. brown-forman was down 6%.

i want to go macro here really quickly with the federal reserve. do you get the sense the fed will overshoot? by the way rafael bostic of the atlanta fed, it is fair to say the fed is willing to overshoot. are you worried about that? >> i'm worried about that and i think the market is worried about that. if you look at the yield curve the market signals to the fed they're doing more than they need to do. the fact the two-year is where it is at and 10-year it is at tells you that the market believes the fed should stop. the fed made it clear they will not do it anytime soon. that is triggering recession fears on part of investors. liz: doug forman, happy new year. [closing bell rings] dow swing from peak to trough, 44point. it will end in the red. s&p too close to call. that will do it for "the claman countdown." "kudlow" is next. ♪ larry: hello, folks, welcome to "kudlow."