missed, hitch inson missed, christie and hutchinson, they're the old guard. old gop and voters don't believe in that and they're out of touch. you can't make people believe in something. they're the old guard. both are sell ratings and even though burgum beat expectations, it wasn't n. maybe he could be energy secretaries and re-represented north dakota and tried to get middle america into the conversation. just not enough umph there. i've got a sell on him as well. recap, buy on desantis, buy on ramaswamy, buy on hali and hold on scott and a -- haily and hold on scott and else is sell. bye bye. over to liz. liz: frank lutz is on the phone and wrap up from charles payne

and we have more. first, charles, the federal reserve is grabbing the steering wheel of the car back from nvidia and look at markets here and look at ai chip designers performance and massive earnings beat after the bell and on the screen right now, still has the stock about 2% higher but has paired gains by more than 22 bucks off the earlier record high of $502. unlike last quarter, nvidia does not have to power to inflate the markets along with it. just doesn't have it this time. investors instead dieverting their attention to federal reserve chair jay powell's appearance in jackson hole. and he hasn't even uttered a word because he speech is tomorrow morning at central banker's symposium in wyoming. but stocks that sailed well into the green at the open reversed around the time that boston federal reserve bank president susan colins told yahoo finance today from jackson hole that the fed might hike interest rates further and will likely need to

keep rates elevated for an extended period to quell inflation. well, if you look at inter-day series, the dow began sliding and went from a gain high of the session, 221 points down to about 301 point loss right now. we're down 256. nasdaq was on track for three day winning streak and funneled big points and up about 113 and down 169. but we should point out that nasdaq 100 stocks, nvidia included with earnings and/or profit beats out late yesterday showing strong performance and splunk up three and a quarter and nvidia holding on just under 2 bernards healthcares of the gains and what happened to nvidia's power from last quarter to pump up the whole market.

chief market strategist is joining me and ivan fineseth. phil, nvidia clearly not the bullet proof sherpa for the rest of the markets this time around. why not? is it the fed taking the oxygen out of the room? >> that's exactly right and the fed has one or two more hikes and that story is over and pumping up against the highs and can't get through them and breath of the market opened up a bit more and fed in the way and not done yet and they're going to continue pushing interest rates higher and measuring it as anticipating and going into the worst time of the year and preface to what's coming in september and october. liz: last night after the earnings numbers, that were an absolute blowout, ivan, you saw this halo effect where everyone from meta to palantir. anyone with an ai footprint and strength and c3 with the ticker

strength ai and microsoft and google, they all got a big punch of vago and ticker symbol and right now they're all in the red at the moment. so do you get the sense this is profit taking? >> yes, i think it is some profit taking and like phil said, we're going into a volatile period. september, october, but i think by year end, all of these stocks nvidia, microsoft, meta, google, they're all going to be higher, and i think this ai trend is real, this is like the internet in the late 90s. there's going to be winners, there's going to be losers, but this is a powerful trend and to quote tom the founder of ai, every company has to be an ai company. liz: you know what, phil, somebody bought at $502 earlier today when nvidia hit that high. they are not in the money. they're looking at a pretty

significant loss here because more than $22 down from the high. can you just give me a sense when you've got some of the wall street shops, everybody from rosenblat calling for $1100 a share and we're at $480 to advisers saying $1600 a share. you really thinking it's going to get to that point? >> i'm not. i think there's a lot of competition in the space and firms that will play catchup. they don't make the chip that make it is apart of it. it's the software on top and to me, i agree with ivan. this is 4200 in the s&p and seeing 46, 47 and by the end of the year, there's strength and you'll have to see it broaden out and not convinced they're the apple of chips yet. too much ground to cover before we can give them the title and i wouldn't make this bet and finance 101. double your money or triple or quadruple, don't sell the whole thing and take 20-30% off the table and pivot to another chip

maker or other stocks in the market that are cheaper. liz: which one? compare year-to-date what nvidia did compared to say intel up 23%. in a normal year that's amazing for intel or quite frankly many different stocks but nvidia is up more than 230%. same time. which one, fill? >> to be honest, i wouldn't go back to chips for a year. i think you have tremendous opportunity and value and if i was going to go ships, i would go football games he's loved and they're in the upside and they're not in the next few months and to weather the tomorrow is the next few monarchies and see where we're at. liz: i van, is traditional value stock area, is that the place to be as we head into cement fed meeting and doesn't look like they're going to raise rates after 11 rate hikes but you look at november's fed funds future, which is of course the market betting on what the federal

reserve is going to do. we're looking at fed funds interest for november and now suddenly a hike of a quarter of a percent. 47.7% and that number was 30% yesterday. so perhaps the market is starting to believe what susan colins of the boston fed said we're not done. what's the trade? >> well, not going to try and time the market but we are closer to the fed finishing thornhill tore t hiking rates higher and no. 2 is intel and there's value and i like the ceo pat focusing on chip production and winning companies like nvidia and app and will others to be their producer of their chips and most of the chip companies are fabulous and need a fab company and most companies

do use samsung and taiwan semiconductor. >> yes, rightly so and nvidia is a chip designer and farming out the manufacturing and liz: there's huge demand and need production and supply to fill that demand and they've poped out that startups are going into debt in order to get these chips from nvidia. so why would taiwan semi-be down today, 1.5%? >> that makes to sense when i look at that trade and they had ball lapsing issues earlier on and light effect over the past few years and it's a better trade than nvidia and getting it at a much underpriced stock and they're the commoditity, i get

that. there's a lot of places to get the parts made. but sake token. i want to see it materialize and taiwan makes more sense and getting better value for the trade and they're much past some of the manufacturing issues and now they'll be able to produce the volume that'll be needed just in data centers alone. that's where you see the huge up tick to the revenue. liz: phil, i van, great to see you and nvidia not doing what it did last quarter which was pump up the whole market. dow jones trails down 250 points and nasdaq down 179. jay powell did actually not come up specifically during last night's first gop debate, but inflation and excessive government spending definitely did. >> when you see 16% inflation, your gas is up 40%, your food is up 20%, your electricity is up

20%. we can stop that by turning the spigot off in washington. >> we cannot sit by any longer and allow the kind of spending going on in washington because every dollar they spend is a dollar these people are not allowed to spend on their children and grandchildren. >> we also cannot succeed when the congress spends trillions and trillions of dollars. >> no one has tailed you how to fix it. i'll tell you how to fix it. stop the spending, stop the borrowing, they need to eliminate the earmarks that republicans brought back in. at the end of the day, you look at 2024 budget, republicans asked for $7.4 billion in earmarks and democrats asked for $2-point$2.8 billion and time fn accountant in the white house. >> liz: who he was the strongest on his or her economic plan

overall? >> yeah, liz, i would probably put it into kind of a top three if you l. nikki haley certainly identified herself as a more traditional republican and let's cut spending and regulation and tackle the debt and deficit. i put ramaswamy into this group as well talking about the need to un- unleash energy resourcesd senator scott that made great points as it relates to unleashing the power ovu.s. economy on shoring and industrial base of the country. those three really stood out to me as the best on the economy from the debate last night. liz: they have an incline they have to climb for this because if you look at job creation under president bide, it's been rather impressive. if you look at how the stock market has done under president

joe biden is 13.2 million jobs created since he took office and what do they point out? inflation is very real even though all of these rate hikes have actually had a positive move certainly on inflation tamping it down from 40-year high back in june of 2022 to where we are now going from 9.1% down to 3%. >> yeah, liz, you make great points. there's been strong economic growth, strong job numbers under president biden. the problem for him is voters thinking the country is on the wrong track. when a majority of folks think we're on the right track, that's a great place for an incumbent to be and no one won with the right track, wrong track numbers

that president biden has right now. liz: i want to touch on energy and referenced vivek ramaswamy. listen to what the candidates said in a smattering here of what we call a sought string on energy. >> unlock american energy, drill, frack, burn coal and embrace nuclear. >> like to buy diesel at 20% off like in china. >> lower gas prices and open up all energy production and we'll be energy dominant again in this country. liz: if a republican is in the white house next season, do you anticipate that these stocks whether they're the drillers or the integrated oils will do better? >> yeah, liz, what i'm watching even before is two words. permitting reform. that was included in the debt ceiling debate and there was a still great chance later this year to do additional permitting reform and you see republicans wanting to unlock some of the

natural resources of this country. we're in an industrial super psychountil the country and energy stocks, industrial stocks, clean energy stocks and the economy at large will do well and before the election, foe us customer on what congress will do more on permitting reform. liz: edits, you may find it interesting refiners in the green at the moment and crude oil at $79.03 in the after market. good to see you. we appreciate your perspective and giving our viewers free advice, which i know your clients pay for so thank you very much. >> always great to be here. her. liz: ed mills of raymond james. the economy and energy not the only es getting air time and candidates pounced on the state of education as well as they battle it out, the founder of

t-shirt brand true classic has been doing private sector arithmetic of his own and teachers are now flooding to him, not the government, for what they need in the face of shrinking budgets, true classic ceo joins us next on what he's doing and wishes the government would do. ♪

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and our success stories are real. why not give it a try? i suffer with psoriatic arthritis and psoriasis. i was on a journey for a really long time to find some relief. cosentyx works for me. cosentyx helps real people get real relief from the symptoms of psoriatic arthritis or psoriasis. serious allergic reactions and an increased risk of infections or lowered ability to fight them may occur. tell your doctor if you have an infection or symptoms, had a vaccine or plan to or if ibd symptoms develop or worsen. i move so much better because of cosentyx. ask your rheumatologist about cosentyx. >> let's shut down the head of the snake, the department of education, take that $80 billion and put it in the hands of parents across this country. >> i built computer science education, we led the nation in computer science education. going from 1100 students to 23,000 students taking it. this is how you compete with

china. >> only way to change education in this nation is break the backs of the teacher's unions. liz: republican presidential candidates offering up views on improving education in this country and none mentioned the struggle every public schoolteacher faces coughing up their own money to buy classroom supplies. enter the private sector, founder and ceo of elevated basics true classic has been filling teacher's amazon wish list this is season and so far helped more than 500 of them across the u.s.. he is not done. joining me now in a fox business exclusive, true classic ceo ryan bartlett. ryan, the private sector and we talk about this a lot an the "claman countdown" and fox business and private sector does a much better job at problem solving than the u.s. government. what was the genesis of your idea to fill amazon teacher wish lists and what have you learned

about the need? >> someone surfaced internally at our company, and everyone is kind of trained to find ways to help people all the time every single day. you know, it was nothing different for us. we send a care package out to maui this year. or this last week and that's been nice for them. but for the teachers, it's just something that i noticed that was a bigger issue than where he kind of realized so, you know, like with everything, we just kind of jump on things as they come up and everything was very timely in this particular instance. teachers going back to school and i was just really shocked. i was really shocked that there was no funding for even the basics, essentials and talking pencils, paper, markers, you know, the things you'd think that would just come along with your job are things these teachers are stretched on and just don't have the money and a lot don't get paid till the first few weeks of school and they're all kind of scrambling to get what they need. i'm happy to help as much as i can. liz: how much do you estimate

you've spent so far and how much do you plan to spend and assuming you're fulfilling through amazon since the wish list is coming through amazon. >> yeah, all through amazon. we've done about $60,000 over the last two or three weeks and i'll keep going because no one else is really jumping in. what i would love is for viewer tosser much the #clear the list on twitter and get out and pay a few of the wish lists off and try to help the teachers in need. listen, ultimately this is about the kids. about the kids needing what they, you know, the absolute essentials just to do the bear minimum of learning so if we get enough people to chip in, this could be taken care of quickly. liz: yeah, again, private sector, you, you started your small business just a couple of yearsing a, couple of friends topple together just $3,000 and within two years doing $100 million in sales. where are you agent right now in sales and business climate you see right now?

>> we're probably going to land at 240 for the year. liz: billion. >> and women's is launching next year and that's huge for us. we're growing and spending a fortune on meta and all the other platforms to gain awareness and market shares. liz: ads, you're doing ads on meta? >> yeah, we're spending six figure as day on ads. liz: a day? >> yeah, we're really out there. you have to create pretty great content to be able to spend that and keep your cost per acquisition as low as we do but, yeah, it really works for us. you have to have a machine that understands creative and that's who we are. so we're allowed to spend, you know, as much as we possibly can to gain air wareness and keep cost as low as possible. liz: is meta the only platform you use for add spend. >> the main one and best out there in terms of conversion modeling and goes facebook, google, tiktok are the top

three. liz: let me end with this, as you're ready to launch yet another part of your business in womens, you're giving away as you mentioned a lot of t-shirts. started this business with six plain t-shirts as part of your product line. tell me who you wish you would hear from all of the presidential candidates whether they are democrat or republican. >> what i wish i would hear is they're kind of looking out for the people that house our children on a data day bay reporter: i would say that specifically talking about teachers, it's a little bizarre that we're even having this conversation about them needing supplies because it seems so obvious that it's something they need. you know, here we are obviously spending money, a lot frivolously that woe can all agree on but no matter what side of the aisle you are. breaking a little bit off for the teachers that take care of our children every single day doesn't seem like too much to ask. that's really what i would love

out of a candidate. just someone that's transparent and will follow through with whatever they say they'll do in this debates. that's what i'm looking for. liz: ryan, you're doing good work and i think a lot of teachers appreciate and you'll be hearing for more after this show. i'm sure. thanks. >> thanks, liz. shout-out to you for raising $30 million for homes for heros and unbelievable initiative you did a few yearsing a. liz: still doing it, buildinghomesforheros.org and build them for the seriously wound warriors and first responders. ryan afters a guest on my podcast and incredible story and well beyond cobbling together a few thousand for the company and pro wrestler ric flair morphing musting into millions for all kinds of stumbling blocks and try stumbling from a plane crash

and alcohol abuse and terrible personal tragedy and master class of turning stumbling blocks into steppingstones. get it from ryan's podcast or any of them. our podcast, everyone talks to liz. you got to listen. pick any one of them and they'll be very inspiring, especially ric flair. spotify, apple, google, wherever you get your podcasts, dow down 238 and that has dak by 195 and s&p down by 41. ♪lyric the dollar index jumping

to highest level since june as they await gapless speech tomorrow in -- jay powell's speech tomorrow in wyoming and he makes opening remarks and looking at u.s. dollar stronger against the pound, euro, canadian dollar and japanese yen. looking at dow and the boeing is down and it said a defect related to a part in the 737 max jets could delay near term deliveries. boeing says its supplier, spirit aerosystems gave it pieces with improperly drilled holes. spirits falling 13.25%. defect hits concerns of boeing hitting the annual target of 437

of the plane this is year. spirit uses multiple suppliers so not all near term deliveries will be affected. we continue to watch spirit aerosystems and had a few bumps along the way with supplying boeing. it is a war of dollar stores. dollar general falling 2.9% on news from its rival dollar tree, which is down 12.25%. dollar tree blaming a challenging economy and most americaning only buying food and necessities and mentioned shrink, which we talked about yesterday. and dollar stores to pricier retailers. guess stores moving higher by 27+% and increase since march of 2020 and raised fiscal year profit forecast and guess now anticipates annual adjusted

profit per share in the range of $2-point # 8 to $3.08 and up from previous $2.60 to $2.90. despite the gains, that stock is down about 11% year-to-date. investors are hanging up on t-mobile. sending the stock down 1.69%. just off its session lows here after the company announced plans to cut 5,000 jobs and layoffs all in the united states account for just under 7% in the work force and t-mobile and the back office and some technology roles getting the boot. we're getting in breaking news in the last hour, u.s. department of justice is suing elon musk rocket ship company spacex over hiring practices. get to kelly o'grady in los angeles with the story. kelly. reporter: great to see you, liz. yet another case against elon musk company by the government. this time the doj is suing spacex and they're alleging the

company discriminated against hiring refugees and asylum seekers. in a statement they said, "spacex failed to fairly consider or hire asylum seekers and refugees because of citizenship status and put a ban on them regardless of qualification and we'll hold spacex accountable for illegal employment practices and not allowing them to fairly compete for job opportunities". between 2018-2022, spacex wrongly claimed they were legally limited to hiring citizens and permanent residents. there's specific laws for rocket manufacturers like spacex that limit foreign nationals from accessing key safety information. they don't prevent them from hiring refugees because they legally are on equal footing with u.s. citizens when it comes to status and the suit is alleging that spacex recruiters and people actively

discouraged them from hiring and he said "u.s. law requires at least a green card to be hired at spacex as rockets are considered sad answered weapons technology and they're arguing they informed spacex of the investigation back in 2020 but the company continued these practices through last year and i was looking through the suit, liz, there's evidence that they cite hr rejection codes where an applicant was specifically denied due to citizenship status. we reached out to spacex for comment and haven't heard back but the suit is seeking to win back pay for the folks as well as civil penalties and policy changes, liz. liz: kelly o'grady, thank you very much. despite the mounting probe swirling around elon musk's companies, he is still gunning his engines. the test la ceo posting on x, the company formally known as twitter he took a production version of tesla's cyber truck for a spin. the truck was built at company's gig factory in austin, texas.

tesla just so happens to be the top holding in a brand new etf that exclusively invests in companies with operations in the lone star state. yes oil country. the funds ceo is here next on why you don't want to miss out on investing in texas. closing bell, 25 minutes away and dow down 252 points. we are coming right back with the texas etf. ♪

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liz: this is quite the traffic stopper, tesla ceo elon musk said yesterday he grabbed a cyber truck just as it rolled off the tesla assembly line in texas and took it for a joyride in the parking lot. austin is the production birthplace for the long awaited ev truck. musk moved the company's headquarters from silicon valley to austin a few yearsing a, and now tesla is the top holding of

entirely texas focused etf. texas capital launched texas index etf last month and 216 publicly traded companies headquarters in the state. among the top holdings aside from tesla, mckussen, charles schwab, exon mobile and more. rob, it's texas capitol's first etx. what was the first thesis behind this? you were born in raised in texas? >> born and raised in texas. thanks, liz. only seven economies in the world -- countries that have larger economies than texas. ninth largest in the world and second largest in the united states and gdp of $4.2 trillion and 10% of the u.s. economy. it grew faster the last four quarters of the u.s. economy and grew faster last year than the u.s. economy. it's highly diversified and only

9% is oil and gas and if you're not privileged enough to live and work in texas, you can now invest in one of the best robust economies in the world. liz: what types of requirements must the over 200 companies have to make it in the fund? >> it's weighted based on contribution and market cap and meet those requirements and we started tracking the fund -- index, sorry, in april till now, we've got about a 9% return and the mid cap russell is 3.7%. it's clearly outperforming in the short term and if you look at regression analysis, historically we think it'll outperform going forward. liz: okay, it hasn't yet since the actual launch date and it's down just about 3%. why is that because there's a lot of people in texas and viewers in texas and get the word on and tell me more.

>> it's on the rises el and for sure -- russell and the benchmark and look at components of the outperformance, the companies that are actually smaller and focused more in texas in terms of revenues and they're the ones that are outperforming the more global companies. liz: last year in 2022, texas produced 1.8 billion barrels of oil. making it the top producing state in the united states and yet tesla, i find this fascinating, is your top holding. at what point do you think you get most texans and most americans to understand that we all can live together. you can have internal combustion, gasoline powered cars and electric veh vehicles d we want america to be the leaders in both, do we not? >> we co. i think texas is the fourth largest producer of fossil fuels in the world. other countries as well but did you know texas is number one in wind and solar in the u.s.? liz: yes, we've talked about that.

>> we produce more alternative energy than california. so there's a myth that texas is only fossil fuel. liz: what other electrify indication companies do you have within the 200 plus names in the ctf? >> i would have to look. i don't know off the top of my head. liz: do you get a sense it's a mix of that and different manufacturing especially when there's so many companies to pick up their stakes and move to either texas or florida due to the very friendly tax offerings. >> i think it's opportunity also. it's a great business climate beyond tax. we have the second largest work force. we have the youngest work force. we created 650,000 jobs last year. we created more jobs that's four quarters in the u.s. just like the gdp growth comparison, and we have more fortune 500 companies than any other state and we have close to 100 fortune thousand companies. it's very broad, very diverse like i said. as a matter of fact i think the

lowest performs sectors in the index so far would be consumer discretionary and consumer and real estate. it makes total sense. liz: we have blue origin based in texas. that is jeff bezos' privately held rocket ship company. if it were to go public, that's pretty amazing and consider it for the etf? >> depends on the contribution of gdp and market cap. not a subjective requirement to get into the etf. it's core components. liz: lone star state with it is own etf ask you're the first. congratulations. >> unseasonably that, we'll be back in september to ring the closing bell. liz: come on the show before. >> for sure. liz: love to have you on. u.s. commerce secretary set to visit china next week at critical time for the world's top two economies. her visit comes as chinese aggression in the so south china sea is surging.

there's a live report from the ppentagon on this next. you need to hear this and close closing bell about 14 minutes away and dow industrials down 313 and nasdaq falling as well. here are the nasdaq losers, dollar tree, marvail technology. ♪ shelves. shelves that know what taste buds want. shelves smart enough to see, sense, react, restock. ♪ so caramel swirl is always there for the taking.

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and it stays off. (soft music) ♪. liz: we're nine minutes away from the closing bell and i'm looking at the markets here. we have got the dow jones industrials caught in a bear claw going down right now on wall street with major averages hitting session lows. the dow is down about 335 points. the swing from peak to tough, 575 points. next week the u.s. commerce secretary gina raimondo will go to china to meet with government officials and u.s. business leaders to help deepen ties with a very fractured bay jiang when it comes to the relationship with the u.s. this as tensions in the south china sea rise between china and the philippines. let's go live to fox news's chief national security correspondent jennifer griffin at the pentagon. what does this mean for u.s.-china relations? >> reporter: liz, all of this is

coming at a dangerous time and a dangerous confrontation earlier this week in the south china sea as chinese coast guardianships attempted to block two philippine supply ships on a resupply mission delivering food and other products to filipino military forces guarding the contested thomas scholl island chain claimed by china and philippines. they were blocked by at least four chinese coast guardianships for five hours tuesday as a u.s. navy surveillance plane circled over head. the philippine coast guard attempted to communicate with the chinese ships. >> we are proceeding according to our plan. -- [inaudible]. in accordance with the sea regulations over. >> in response to the illegal activities of philippines chinese coast guard taken necessary law enforcement measures in act occurred dance to the laws. we urge the philippines that

would take any measures that further complicated the situation. >> reporter: china sent dozens of military, aircraft and vessels into taiwan. one helicopter crossing into taiwan's air defense identification zone according to the taiwan defense ministry. in response taiwan launched its own fighter jets from bases across the island to deter bay june. the taiwanese president was off a island to mark anniversary after 1958 military clash with china. >> translator: we're committed to maintaining peace and stability across the taiwanese strait but to plain strain peace we must strengthen ourselves. >> reporter: gina raimondo will travel this week to meet with senior chinese business leaders. she met with the chinese ambassador on tuesday. the u.s., south korea militaries

began 11 days of large military exercises. 10 allied members of you know command member-states uk, australia japan. these exercises were halted under the trump administration. they're seen important deterrent drills with direct message to china and north korea. liz: yes. you get south korea getting together with japan which is highly unusual to sign those kinds of deals, that is very interesting but the tension continues. jennifer, thank you for keeping us up to date, jennifer griffin the treasury yields are rising, i saw them falling are they rising now? they were falling as investors turn focus to federal reserve chair jay powell. by this time tomorrow they may know where the fed stands, maybe more clarity but don't hold your breath with regard to interest rate policy. we have the markets tanking at the moment.

10-year yield up certainly off the highs of the week. right now 4.233%. let's bring in cliff corso, president, cio of advisors asset management with more than 41 billion of assets under his purview. i tell you we had some weird behavior with the bond market and specifically nasdaq this week. things seem to be getting more into i guess an equal balance, right now what do you make of the market moves? >> well i think, certainly today, as you were talking about earlier we've had the stock market selling off. i think you were talking about boeing but i think it is, beginning to sink in that perhaps powell won't be that dovish tomorrow. that risk does exist. if you think about where rates were a few days ago we had the 10-year breaking through cycle highs at 4.34. so the market, if you look at the action in the market over the last few weeks you see the nasdaq has not been outperforming some of dividend

or shorter duration stocks. so i think it may be beginning to sink in that the fed might be hiking and holding. i think that is our view, that would be probably what powell signals tomorrow because the market still hasn't eased a price in to next year. liz: again, we'll know more when we get fresh you are inflation data but we know that while inflation has come down it might not be at the level that satisfies jay powell and therefore perhaps we have a pause once again in september at the fed meeting but november the bets are starting to climb that there will be another quarter-point hike. what are you expecting? is there a way to position a portfolio without really knowing what is going to happen? >> our expectation is inflation is going to remain a little bit stickier on the core level than the market expects. the market priced i would say near perfection. so you know, how do you play that? i would say there is two-ways to think about it. one is in the fixed income

market. liz: yes. >> there ask an alternative, that is shorter dated investment grade treasuries, investment grade and even higher quality high yield. you're getting -- liz: 5%. >> highest yields within 15 years. with the equity market i would say the same. position margin of safety sectors where dividends are not zero that can buffer on the downside if that is where we're heading. certainly if it is a soft landing those sectors have lag and i think the broadening out we've seen in the market would also favor those types of sectors to outperform. so we wouldn't say, don't do anything buy narrowly, but reposition the portfolio for lower volatility. liz: two year treasury yield, we have the banner up right now, above 5% once again. and so as we watch that, and you're talking about opportunities and in fixed income, is it something you say i want to stay away from the equity risk premium at the moment? for example, tech stocks which

have actually done quite well, certainly year-to-date. apple today is one of the bigger laggards, not to go mention intel as well on the dow jones industrials but of course boeing with its problem on some of its supplier issues. do you get the sense now is the time to go looking elsewhere beyond fixed income into more specific areas where there isn't that risk premium at the moment? >> yeah, i think you raise a really good point because the equity risk premium is at the lowest level since 2004, coming close to zero. so if you look at while return, return expectations, history would tell you that, you're going to be below average over the next few years. we like certainty of income. one area in particular, within fixed income, would be alternative private lending. particularly in the middle market. the reason that is, is because while spreads are tight on public markets and fixed income, they have actually widened pretty robust i within private

lending. part of the reason is the regional bank crisis. we know that banks are pulling and tightening credit. if you're a middle market company you rely on those banks for your credit. now private lenders have the opportunity toe fill in that gap. they're getting much wider spreads and getting much bretter covenants and return profiles that are equity-like, somewhere 10 to upwards, 15%. so that's an equity-like return and you're at the top of the capital structure. liz: cliff, interesting ideas and please hang in there because we got a wild last 30 seconds here. dow jones industrials down 360 points after having been up as much as 221. [closing bell rings] all the markets, the majors are in the red. nvidia could not save the day. tomorrow we see how markets react to chairman jay powell. ♪ larry: hello, folks, welcome to "kudlo