how does this happen when you see how they manage things. >> this is how they do it. they prioritize the homelessness issue and illegal immigration issue instead of maybe the basic necessities of protecting life and liberty and the pursuit of happiness even within their own communities. they went woke on a lot of stuff and i'm not sure it would have prevented everything. jackie: everyone reasonable has left so all you have left is the wokesters who keep voting for this. >> i lived in southern border. these santa ana winds happen every year. it's highly predictable. jackie: it's the season. >> maybe not to this size or these wind sizes, but come on. it happens all the time. brian: a lot of good questions and you need competent leaders who can answer them. jason chaffetz great stuff. good to see you. now for something really fun we'll toss it back to taylor riggs who is sitting in charles payne's seat. taylor have you made it? are you there? taylor: i made it i'm here and as i always say i miss you guys already.

jackie: we do too. taylor: have a great day. good afternoon, everyone. i'm taylor riggs i'm in for charles payne and this is "making money." breaking right now, you have equity markets closed today for former president carter's funeral but bond markets closing just now at 2:00 p.m. bond yields have been rising in recent weeks, threatening this equity rally. plus, markets waiting to see if we'll get one big beautiful bill in congress to extend those tax cuts, and we are awaiting jobs day tomorrow. economist julia polack here to tell us about the state of job creation and optimistic. we are also following of course the devastation from the fires in california that for now are expanding and uncontained. all that and much more on "making money." so, the financial markets as we mentioned closed today in honor of the national day of mourning for president jimmy carter. the bond markets just closing

moments ago on the day yields are rising just a little bit. you have the 10-year yield holding just above 4.6% and the key two-year yield still at 4.2%. i'm pleased to say that's where i want to go with slatestone wealth chief market strategist kenny polcari. kenny? for me the story right now is not the equity market. it is the pressure that rising yields are putting on this equity market. the last time you had a 5% on a 20-year and a 30-year you had a significant sell-off. how concerned are you about rising yields? >> so, i'm very concerned about that, right? i'm in this camp we're going to see five on the 10-year yield, and i think if that happens, the markets going to certainly come under more pressure but that's both good and bad, right? because the market needs to be shaken a little bit. i think there are parts of the market that are very stretched but i also think there are parts of the market that offer some value because they have already kind of reacted but one way or the other if the

markets can do fine at 4.75, 5% rates if the economy remains strong and robust. it's when the economy starts to fail is when that's going to be a problem. taylor: so is it the why behind bond yields rising? because bond yields on the long end can rise because they see higher growth in the future, or they can rise because they are revolting against the federal reserve and they are looking at deficits and the bond vigilantes are coming out saying i don't think so. so, is it the why that really matters? >> no. it's argument number two. it's the bond vigilantes coming out saying to the feds, stop, stop cutting rates because look what's happened? the 10-year was at 3.6% in september when they had to cut rates by 50 basis points because the labor market was supposedly weak. meanwhile the labor market remained strong and the 10-year yield is now at 4.7% and so the bond market is telling the fed, it's not so much, it may think that the economy is strong but it's more worried

about government spending and potential inflation rearing its head again which by the way i think we'll start to see that. we've already started to see it in the cpi and ppi and next week we'll get another read and i think we'll see continue to kind of inch higher and that's the problem for the bond market. taylor: does jobs day tomorrow tell you anything? >> so listen. yesterday we had adp. that came in a little bit weaker than what the expectation was. that doesn't necessarily fortell what we'll out tomorrow. sometimes they move in unison. i think they are expecting 165,000 new jobs and i think that's just about where it's going to come in but that continues to be a fairly healthy pace of job creation and so yes, i think the job markets going to tell you, tell the fed, i think you should slow down and by the way if you've listened to a couple of what these recent fed heads have said, they are all

growing a little bit more concerned. they all say the labor market seems to be robust enough and they are all worried about the simmering inflation. taylor: i know a lot of our audience were sick of talking about the fed. we do best when the fed does nothing and gets out of our way. talk to me about then what i should be buying, what do you like? >> so listen. only because of where we are and the stocks we seen back off. i like healthcare. it was an under performer in 2024 i think it closed flatter just slightly below the flat line, but look. there's a lot of stocks on sale there. big, large, mega cap names that are in the space. merck, johnson & johnson, both those stocks are down 25, 24% and they are good dividend payers, right? so they pay you for owning their stock and large names in that space. taylor: it's more than just the glp-1 craze? >> correct. absolutely. i don't think, i'm moving beyond the glp-1 craze. those are core holdings that are

on sale and that's what long-term investors are looking for. taylor: kenny we love having you. thank you i appreciate it. >> a pleasure thanks for having me. taylor: i'm pleased to say i want to bring in texas congressman chip roy president-elect trump met with gop senators last night to discuss strategy. take a listen. >> we're going to get something done that's reducing taxes and creating a lot of jobs and all of the other things that we know about but this was a really unified meeting. taylor: congressman great to have you. thank you for joining us. are we closer to what we're calling triple b, this big one big beautiful bill? what do you see? >> well great to be on. yeah, a great meeting with a bunch of senators in that meeting with the president. i look forward to visiting with the president this weekend. we'll have continued conversations about how we can actually deliver on the president's agenda. whether that's two bills or one bill is still trying to be

determined. i think we've got to make sure we can deliver quickly for the president. i personally still favor a two bill approach so we can get out of the gate immediately, do what we need to do to secure america with money for our national defense and to secure the border, get some immediate reversals of president biden's damaging policies, like reversing the ev mandate, reversing these ridiculous bans on offshore drilling, getting the money back from the student loans and requiring work requirements for medicaid. if we do that we can do a debt ceiling increase and get this done within 45 days but we'll work together whether it's two bills or one to deliver on taxes but also spending restraint in light of what you just had with your previous guest, about bond yields, if we don't deal with spending restraint, and we don't deal with inflation we will not be able to make things affordable for the american people. we've got to cut spending and we're all working on that as we speak. taylor: congressman as you know we have a business audience and i think a lot of people if you're a small business owner, you're waiting at home and hoping for those tax cuts, because i'm thinking about how i invest, how i am making capital

decisions, how i'm buying capital equipment, if i can expense that, and what my corporate tax rate will be, and i'm thinking that the longer that we are getting uncertainty regarding the future of that tax status, the less likely that i am as a business owner am willing to invest in my company, in america. is that urgency in washington there with those business owners? >> yeah, no question we've had lots of conversations with the businesses you definitely want to see continued tax policy that's pro-growth but these same businesses have very strong concerns about the extent to which we have uncertainty in the bond markets and the lack of faith in the physical health of the united states. if we do not reduce spending, then we are simply shifting the tax to future generations and having to pay for these mountains of debt and we print money so that's why we are locked in arms. sitting in rooms i spent two hours this morning in a room trying to identify spending

restraint. we have a general agreement we came to right before christmas where we come together and say we need to cut at least 2.5 to $3 trillion for a debt ceiling increase. i think we can move quickly. again i go back to a two bill approach. i want to deliver for the president and a debt ceiling, get it out of the way so chuck schumer can't mess with the bond markets, secure our borders and military and reverse a lot of these biden policies. the ev mandates for example. you want economic growth? undo these ridiculous regulations. get rid of the ev mandate, stop the inflation reduction act which is empowering china and they are subsidies that go 90% to billion dollar corporations. you want the economy going again? end that stuff. get rid of the regulations. that is what most people i talked to want. the end of the regulatory constraints put on by biden and reversal of his damaging policies. we can deliver on all those things but have to move quickly. taylor: i want to talk about the spending side of that you rightfully bring up people are so sick of spending spending

spending. elon musk sort of hinted that instead of a $2 trillion cut, he might be thinking maybe it's actually just $1 trillion. how worried are you we aren't getting a full massive big massive triple, you know, two or three trillion whatever it is cut? >> yeah, well, it'll all depend on the will of congress. we've got to do our job to deliver on the mandate the president was given. i think elon and vivek have done a great job in highlighting the spending cuts that need to come up and they are going to do more of that. we're using crowd sourcing whether they are using a.i. they are identifying stuff. we're identifying stuff but here is the key. we have to set this up for success. my view is if we can get defense spending done early we can have a real debate in march when we have a cr expire for the regular appropriations process. we can actually get back to having a real conversation about returning the bureaucracy to pre-covid levels in 2019. that's basically how we can get elon and vivek to have

success in cutting the trillion dollars they want to cut or 2 trillion. if we can set the stage for success. that's what i want to do is move quickly. if we try to build too big of a bill too quick, it will take longer to get accomplished. i think we should deliver on defense, on border, move the debt ceiling for the president and immediately get early cuts, get rid of the ev mandate and all sit in a room for the next month or two, identify the cuts and then we'll be in a good spot for the american people. taylor: well congressman i know our business audience is thankful for the urgency that we hear in your voice, and getting back to work and being a pro-business make america open for business again country. congressman roy, thank you for your time. >> thank you. we have to deliver appreciate it. taylor: as the fires raging on in california, it's going down as one of the most destructive in l.a.'s history. we are live on the ground from california. that's next. introducing new eroxon gel, the first fda-cleared ed treatment available

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lock in let's go. rated e for everyone. [rock and roll music playing] xfinity. made for gaming. rewards members, get early access to an ea sports fc25 kit. visit xfinity.com/rewards. taylor: the catastrophic california wildfires continue to rage on with little containment. that's where we're going with fox business max gordon live on the ground from malibu. max? what is it like? reporter: yeah, good afternoon, this is still a very ongoing fire, a very fluid situation.

firefighters desperately trying to save one of the last remaining homes on this stretch of beach. even this home right here, that has been gutted, was still standing just yesterday. we saw it was standing, it looked okay but this stretch of beach though, decimated here in malibu, just victims to this fire that has claimed 17, 200 acres of land, thousands of buildings have been destroyed. to the east of us, the eaton fire chewed up 10, 60t five people. the los angeles county sheriffs office, they say that likely more victims will be identified as they continue their search and rescue efforts. this has been just an outright devastating firestorm for southern border. so many people losing their homes, entire neighborhoods decimated. earlier today, we were in the neighborhood of

pacific palisades. we talked to one resident who lost everything. take a listen. >> i'm thinking of the sons and daughters of parents i nowhere they're going to live, where they're going to go to school, where are they going to buy food. our grocery stores are gone. with the way the permit process is in l.a., these homes won't be rebuilt even if we start it tomorrow for two years. this is devastation. reporter: devastation, really, that is the word for what has gone on here, and this all culminated and came together because of devastating santa ana winds. we had one wind gust measured at 100 miles per hour. now those winds have since subsided and they are going to pick up a little bit this afternoon. the severe fire weather continues into tomorrow. this firefight not yet over. back to you. taylor: max gordon, thank you so much and stay safe and thank you for the live reporting you're bringing us on the ground. reporter: thank you. taylor: i do want to go to a malibu resident who

unfortunately has lost everything in these ongoing wildfires. i'm pleased to say i can bring in sophia hall. my heart goes out to you. i'm so sorry for what is happening. can you just give us an update on what happened? >> thank you so much. i really appreciate that. i was working from home. i looked up and saw a lot of smoke in the sky. it kind of left the call and was watching out and we saw the planes coming in and we really thought it was being contained. we really didn't think we had anything to worry about, but as the day got further we just saw the smoke getting bigger and bigger and eventually when we saw flames coming around the mountain we knew it was time for us to evacuate. taylor: where are you staying? >> we're staying on my husband's brother's sofa right now. we are trying to figure out where to live, where to restart,

so we've got a lot to think about. taylor: tell me when you think about eventually how you plan to restart, did you have insurance? can you count on any insurance money to help you rebuild? >> so my husband looked into getting insurance around his insurance for our place and nowhere would offer it. they wouldn't offer it for our area, so that's kind of one of the worrying things right now is we don't know how to navigate this really. we don't know, we just kind of like it's all new to us so we're trying to really figure out if we can get anything back, how we can restart. it's kind of a confusing situation. taylor: are you confident in the local leadership that's been provided to you? are you getting enough information and support? >> i'm getting support from

friends and family with their thoughts and messaging but honestly, when it comes to kind of process of what to do, it's very kind of unclear in this situation. taylor: safia allegation, again our hearts break for you. we wish you the best and we're glad you're safe and alive and we hope you can start to think about the rebuilding process when you're ready. stay safe. again, our hearts go out to you. >> thank you so much. taylor: in the meantime, i wanted to bring in zip recruiter chief economist julia polack. i know that i believe that are you currently living in the pacific palisades? how are you holding up? >> yes, so our home in pacific palisades was still standing but adjacent to a burning school and houses all around our entire neighborhood has been leveled. we are staying with friends in santa monica just one block outside of the evacuation zone which keeps growing because this fire is not yet contained.

taylor: how are you thinking about even rebuilding? the economics, we heard one gentlemen say grocery stores and schools are shutdown. you're an economist. how do you think about the economics of this tragedy? >> so this area, i mean, just has the most beautiful homes and institutions. iconic institutions. that is really the biggest loss here. there's no way to rebuild this community and what we've lost here. how will people rebuild? it's hard to know now. many will of course receive insurance payouts and face a tough decision, whether to rebuild. of course the place is a waste land. it looks like a war zone. it'll take years and years to rebuild and praise is not inhabitable. there's toxic ash, no water, gas, electricity. so, some probably will rebuild

and others will choose to start anew elsewhere. taylor: julia it's always hard to pivot in these conversations but we'll try to do that. you're an economist. that's usually why we have you on. we're facing a jobs day tomorrow when we think sort of more big picture about where we are and the direction of this country. what are you hoping for in terms of jobs day tomorrow morning? >> well, i'm hoping for a turnaround in the labor market in 2025 and i think there are many signs we will get that. banks are increasingly lending to consumers. home equity line of credit balances are growing. vehicle sales are growing. people are able to buy big ticket items again because the fed has cut rates so much and so we are seeing businesses gain confidence, retail outlook is improving. it hasn't yet trickled into the labor market so the labor market still is slow and sluggish, hiring was very slow to end the year. there was no real sign of a turnaround yet and so the jobs report on friday will likely show slow and narrow hiring

still. taylor: but one thing that did catch my eye is that jolts report, where job openings are up but people aren't quitting and people aren't getting fired. is that an optimistic sign that businesses are saying hey, i have a position and it's open? >> so it was still a very weak jolts report, with the hires rate at 3.3%, just extremely low sort of 2013-2014 levels of hiring and very low quits too which show workers don't feel confident or aren't switching jobs or aren't finding better opportunities. the uptick in openings i think is hopeful and it does suggest that perhaps we will see more hiring in the future and our customers are sounding very upbeat. our latest employer survey show that the majority expect to expand hiring in the coming year. taylor: you see that in the nfib small business optimism survey. people want to make money and they want to get back to work. unfortunately, though not everyone feels that. i mean, a lot of people are holding multiple jobs because

they can't make ends meet. how much of that can be solved by bringing down the rate of inflation and having one good paying job that after inflation, you're actually making money and then you don't have to hold multiple jobs? >> sure, so for two years, earlier on, in the pandemic recovery, inflation was so out of control that people were losing purchasing power but for the last two years, they've actually been regaining ground and if we continue to see real positive wage growth, workers will feel better and bette about their financial well being and that's what we're seeing in our job seeker surveys. job seekers are feeling a bit less financial desperation to take the first job offer they receive. taylor: right. julia, we really appreciate your time and as always stay safe as well because we know you're out there in l.a. we're thinking about you. >> thank you so much. taylor: meanwhile the biden administration announcing more limits on a.i. chip exports. keith fitz-gerald, he's sharing

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keith always great to have you here. how much of this is a boom or a bust for nvidia when you think about this more protection stance that we're taking? >> well it's interesting two part question. one, this is the most under informed over reaching sort of legislation i've seen. i don't expect anything lesson the outgoing administration but in terms of nvidia i think that it's actually going to be a boost because what's going to map is great companies compensate for nonsense like this so i'm expecting performance to improve and i view this sell-off as an opportunity to accumulate more shares. taylor: okay so talk to me more about the derivatives of a.i. we heard from nvidia ceo jensen huang and he said if you ask him about a useful quantum computer, 15 years be a little bit too short, but 30 years be a little bit long. he's thinking more about 20 years. you had a 40-50% sell-off in quantum stocks on that statement because we all thought you be frankly a lot sooner.

what do you think about quantum? >> well i think it's here to stay. i think it's going to be here just like apple was 30 years ago, before people realized it. it's going to be all of a sudden people wake up and go wait a minute. i had the opportunity to invest and i didn't. again. so to me, if i look at this i say where is it going, what's happening? the world is changing in ways we don't yet understand. we know computational intensity is increasing speed, efficiency all of those sorts of things. if anything i think jensen is being very conservative and he knows it. taylor: are we closer to five years or 15 then? i want a timeline. >> it's very hard. i'm not heavily associated with the science. i don't know what the production demands are, but what i do know from an investing standpoint is you get ahead of big life changing transformational trends like that as soon as you can identify them. i think that moment is here now. taylor: 40% sell-off tells you everything is on sale at a discount. you're still buying? >> well not everything. but the great companies i

bought inq in particular yesterday because that's going to be the leader of the pack and very likely winner. taylor: what else do you like? >> well nvidia of course. i hope i'm smart enough to buy more of those but here is the other thing. tesla is very quieu look at what organization stands to benefit from the emergence of that kind of computational power? i think musk has got something up his sleeve. taylor: interesting. and is there another way to play elon musk? i hear tesla, i had one company saying there was an etf where he could buy private shares of spacex. is this a tesla story or is this a musk story and is there a way to bet further on elon musk? >> well you know if you're a private investor with access to private shares clearly you can go down that channel. most investors don't so i think sticking with tesla for now is probably going to be the smart play. i think if you want to get out on the edges your risk goes up, but derivative technologies that tesla will be involved in,

mercedes for example, just decided to license tesla technology as gm gave up its auto driving process. they are going to have to license technology from tesla, very likely, so to me, this is all about tesla being the core and moving around that. taylor: keith fitz-gerald we always love having you on tesla, quantum computing making us smarter. thank you. >> you're very kind, thank you. taylor: i want to broaden this out a little bit further because i want to talk more about the mag7 and in this show, some magnificent dominance. this chart is showing the growth of tech versus the s&p 500 in the last 20 years. my next guest says some of those names still have room to run. i want to bring in chief investment officer, jason ware. jason, so look. we're looking at the chart of mag7 relative to the s&p 500 and frankly, it is mag7 and mag7 only. do you still bet big on mag7?

>> hi taylor, the short answer is yes. why? where are the earnings growth coming from if you look across the corporate sector? we can see the mag7 and we don't on all but most of them and we are overweight the select few that we are really bullish on. look they produced an incredible amount of earnings growth over the last few years. they have the widest economic moats and the big keep getting bigger so you continue to dance with those who brung you and we do like the mag7 going forward. taylor: you said you're overweight a select few. which are those? >> we're overweight amazon, you know the stock logged a nice return last year, 44%, and after a period of cost rationalization on enterprise cloud spend, aws growth reaccelerated on the back of a.i. workloads, so when we think about amazon going forward in 2025 we think operating margins continue to go up, their number one in e-commerce and cloud, they are number three in digital advertising, by the way which is also a secular growth story and

they are doing cool things with with i with bedrock, and in-house chips so we continue to like amazon a lot and want to own that company at larger weight than the index. taylor: when i hear companies i think it was amazon a few days ago making a big bet maybe it was in india with aws, microsoft a week ago drops a late friday night note saying they are spending 80 billion by june of this year on a.i. data centers. we wonder if honestly, a.i. and data centers are the future. what stock do you like that gets us to a.i. data centers? >> yeah it's a great question. obviously, nvidia is a company you have to own if you're bullish on a.i. and data centers but we also like vertif, and it's vrt. this is basically a mid-cap company by today's definition that does close to 9 billion in revenues this year, selling power management and cooling systems to the data centers. it's their largest business by far. it's about 80% of their overall

revenues and their tech is a market leader in this space. they have the most compelling digital portfolio for the data round. their power and cooling systems are mission-critical to the moved toker cloud and co-location and a.i. you know, if you install vertex's gear into your data centers, and they partner with nvidia, installing that gear after huge amounts of capex spend can bring down operating expenditures to the data centers that use their technology so it's just a really compelling story. by the way it's trading at 34 times forward earnings. the growth rate for the coming year is north of 35% and we think the long-term growth rate is firmly north of 20 so you can get this thing for a peg of one and it's a great growth story. david cody, wonderful industrial chairman was at honeywell for a while is the chairman of the company as well so great business. taylor: quickly, you also like broadcom. it's sort of that nice play between hardware and software, when we can't figure out which one we like, but you mentioned that broadcom is no longer

cheap. talk us through it. >> yeah, i love that set-up. if you can't decide where you want to be in 2025 software and semis is a big debate on the street broadcom is both of them in one stock. look, we own the stock when it had a originally 3% dividend was trading at a mid-teens multiple. its now gone up to a mid-30s multiple obviously been a big run over the last little while. so stock is no longer as cheap as it was but it's also not expensive. when we look at the total addressable market that hock tan just told us about by 2027 this $75 billion opportunity, this is the company that can continue to grow into tthat with custom silicon with the biggest customers, amazon,, google and software and semis within the context of a.i. taylor: jason we love your picks and know our audience does too. we're making them smarter hopefully a little money. jason thank you so much. >> appreciate it. thank you. taylor: and a reminder that charles town hall, unbreakable investor in the new guilded age,

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taylor: budget hawks are calling on congress for solutions in the face of growing debt problems . this is all as elon musk warning of a cutback on doge's initial goal and trying to cut $2 trillion in spending. that's where we're going with hillary vaughn who is more on that story. hi, hillary. reporter: hi, taylor. budget hawks are begging congress to not waste this opportunity of republican control to take advantage to tackle the debt. the committee for responsible federal budget warning, "our country's fiscal situation is

bad and getting worse with the national debt on track to exceed its record as a share of the economy in just two years. we need an actual comprehensive budget resolution. it should include reconciliation instructions to reduce deficits as reconciliation is intended to do." president-elect trump's wish list includes border security to tax cuts but raising the debt ceiling to avoid the government defaulting on its debts. the government will likely run out of money by this summer forcing congress to address it something trump wants to get ahead of but some in congress disagree on whether to lump all this together in one bill or break it up into two. >> one bill, two bill, i don't really care. it's really about the details. yes, there's some concern about if it's all in one package, can you get everything done in a timely fashion and we have some other pressure points and you also have the debt ceiling which we will have to address at some point over the next couple of months, so there's a lot of back

and forth on that. reporter: while fiscal conservatives don't want to be complicit in enabling the federal government to take on more bt to cover its unpaid for spending trump at the same time is deploying elon musk to try to cut trillions in government spending. >> i think if we try for 2 trillion we have a good shot at getting one. that be an epic outcome. there's a lot of waste in government because especially the federal government. you just got a situation where the checks never bounce. like they have infinite money. reporter: taylor there are fiscal conservatives who feel like a vote to raise the debt ceiling is enabling that idea congress has an infinite money computer to just spend money from. taylor? taylor: yeah, well-said hillary, thank you for bringing us that report. let's do all of that with stone x chief market strategist katherine rivera. so talk to me because i think for a long time, you had a government that was spend, spend, spend and the economy was

flourishing because you're just hiring anyone and putting money out into the ether, but eventually we have to pay the piper and i'm getting worried that the debt problem is becoming so much of an issue, that we're cradeling under that and we can't grow our way out of it. how do you see this? >> well you nailed it, taylor and i'll add to your points which are absolutely correct, which is that interest payments now exceed like the expenditures we have on debt on defense so interest payments as a percentage of gdp have doubled over the past two years. that's a very different cycle and not a good scenario where you have an economy slowing down in terms of economic growth, still pretty strong and that's the good news. productivity is still high but you have a phenomenon called the crowding out of the private sector and that to me is not talked about enough. taylor: can we talk about it then? when you think about this crowding out effect, one thing that worries me is the more that we do on interest payments, or non-discretionary, the less there is room to cut in

the discretionary and then you have comments from elon musk saying maybe we'll do one trillion instead of $2 trillion cuts. how does that change the way you think about investing in the markets, about future economic growth in this crowding out effect? >> it makes it so hard to do those. not just deficit but spending reductions, because tax cuts are phenomenal and we'll get a corporate tax cut but that takes the money out of the coffers. in a time where we have 6.5% deficit to gdp which is egregious so it does make elon and vivek's job much more difficult and it's disappointing to hear we're already hoping for 1 trillion instead of 2 trillion especially because tax cuts be a great thing but we can't continue to blowout the fiscal deficit reason being you have to finance your deficit with bonds. the public market, the government, is competing for the same pool, the capital markets that the private market is so what happens? you have a rising deficit, higher debt, and that increases interest costs and that starts

to affect not just you and me but corporations, investment in their own businesses, everything becomes more expensive so it's harder to invest these companies in themselves and an infrastructure. taylor: on that note, you are an investor. you're a market strategist. you're advising people where to put money and where not to. a 10-year yield at a 4.6, you have 30-year that almost hit that key 5% level. is that an attractive area in which to put your money or do you think if yields continue to go higher that means bond prices goes lower you don't want to be in that? >> i don't want to be in the long end of the treasury yield curve. i think it's going to continue to move higher because i don't see a real end to the story that's positive. i think we're probably going to stick with fiscal deficits so that tells us bond yields stay high probably move higher and the 10-year tops 5%. there is a price for everything but the problem therein is it starts to negatively affect the equity markets because you can get a better return on a treasury than on a riskier

asset. taylor: let's talk about the equity markets because you and i were laughing that and the math is simple. it's good for our audience to know. there's a classic discount cash flow model and that says you plug in a 10 year treasury. the higher that number is the math says the lower the equity value on the present value basis is worth. so when yields go up, the market in theory says your equity is worth less. is that where we're going? does this rise in yields really start to pressure your equity markets? >> thank you, taylor riggs cfa. the cfa is a wonderful thing, no, but you nailed it and that's the way it works. we're probably going to see corporate profits come under some pressure because of higher financing costs, because the fed probably can't even cut as much as the markets expecting, inflation financing costs and potential tariffs, so i think when we're looking at the equity markets and coming into earnings season, we need to be looking at

sectors in the s&p that do well under a high interest rate environment because i doubt the fed can cut very much from here. taylor: is that big tech or something else? >> it's not big tech so we need to buy protective puts on big tech in the event that because tech doesn't do well in higher interest rates environments. i be recommending real estate and utilities. then for a strong economy, that i think we're still in, we're going to remain in, i even think we could be overheating here, i like energy and industrials and banks. i also like banks. under a trump administration they do well. taylor: we love having you on because you give us something besides mag7 to talk about. on real estate, utilities they call it boring but it's interesting when it makes you money. >> this year it made a lot of money. utilities was up 30%. taylor: thank you so much. appreciate it. >> my pleasure. taylor: the biggest week in tech about to wrap up. jessica inskip joins me to explain major implications out of ces, and how to cash in on that action. that's next.

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taylor: generative ai grabbing the spotlight in las vegas at the consumer electronics show. this is always the biggest tech companies in the world show off their latest and greatest gadgets. joining me now director of investor research, jessica inskip. great to have you. what stood out to you this year from ces? >> yeah, so i think it's really important to pay attention to jensen huang and actually his keynote speech and i think a lot of the market was really looking for some clarity on data centers and what really makes those astronomical earnings we're seeing for nvidia but we need to remember it's a consumer electronics show. therefore the keynote was very much geared towards that but i still think it was an inflection point for nvidia because nvidia is showing us how they want to combine hardware and software data to remain in an essential

a.i. platform to layer on more than chips. i myself think this stock has run up so far. how much more earnings potential does it actually have, and i'm looking for something beyond chips, and that was my takeaway, was there is more beyond chips. there's another layer to make an a.i. enterprise solution reinforcing the ecosystem. taylor: a lot of people are wondering more broadly speaking about the future of mag7 especially in this great environment. you have a great chart for us and channeling my in r charles with may charts today. showing that the mag7 i believe you say can keep up with the broader market, even with higher yields. our previous guests seem to disagree with that. what do you think? >> yeah, so i did listen to that. broader tech i agree with her as in yes, that is normally a little bit difficult. that started early when we were in a restrictive environment mainly because of what happened with the dollar but as we got into 2023, we had a very narrow rally carrying the market.

it wasn't mag7. definitely take out tesla from that but it was these a.i.-related stocks because of the astronomical earnings potential and big macer" cap that was associated with that and so it's a small handful of securities because of that earnings potential that could carry the market because of also their market capitalization and the way we look at it. we were looking for broadening and that didn't happen until we had an easing fed, so that tells me and that i agree is the biggest headwind i have within the market is the inflation picture and more importantly, interest rates because it really does hurt that earnings potential. taylor: we have about a minute left. google is your top a.i. pick. why? >> yeah, so i think the next iteration that we're going to see with a.i. is a.i. agents. if i actually have a personal one that we're building for my podcast and it's astronomically blown my mind. i know it takes a while for the broader market and enterprises to adopt new

technology. however there are use cases with tpu's it's more efficient and it's the next iteration we see and i'm glad to hear jensen huang also mentioned that within his keynote but that is where i see the next a.i. leg. we started with chips. now we've got this ecosystem. we're building the foundation and the architecture and now, a.i. agents is going to be a way to bring that into enterprise solutions, wonderful use cases that alphabet has with crm for example, so much there. taylor: the agent force or whatever they have over there. jessica thank you so much, excited to see sort of the new iterations of what a.i. and what it can do for us. in the meantime that's it for "making money" don't worry charles is back tomorrow and in the meantime make sure to watch "the big money show" it all happens at 1:00 p.m. eastern right here on fox business. meanwhile, so excited to toss it on over to our good friend liz claman who is at ces. you've been doing an awesome job. liz: thank you so much, taylor. we