tv Making Money With Charles Payne FOX Business January 22, 2025 2:00pm-3:00pm EST
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bring goods and services to your customers at a reasonable price and the types of goods that they want to purchase and you are not trying to as a company so much and act social change that you are in the purpose of being in the business of the business you are in. that is what we want companies to get back to. >> we really appreciate your time with us today. thank you for getting us through some of the faith-based investing in the work you are doing. appreciate it thank you very much. thank you for having me. you are looking at a record on the s&p 500. no records for the dow and the nasdaq. yields are rising. sort of the progrowth, pro- equity sort of rally that we saw a little bit in trump one point oh. that certainly leads us off to where we are today. we know animal spirits are always alive and well been -- when it comes to charles payne. >> really pumped. more than normal. good afternoon. i am charles payne.
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this is making money. president trump and -- they are stepping up to make sure that the united states wins this ai race. the stock market is going wild over trumps stargate. we will talk about that throughout the hour. an important part is how can you play this ai trade. so many components of this. rob luna is here. also, again, how to make money in the golden age of america. speaking of trump, trumped the builder looking to shed white elephants. wait until you hear how these empty government buildings cost you every year. it will blow your mind. i have an amazing power panel to help break that down and other things. all of that and so much more on "making money." ♪ this is the headlines. open ai saw $500 billion ai centered company.
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president trump of course unveiling that yesterday. he was joined by robert baron modern day. it will cost about 500 billion over four years. some chipping in. larry ellis at 200 billion. sam waltman is sort of a laggard down here $1 billion. the bottom line, folks, think about this. i am a big fan of stargate. the movie itself was really great. had a great storyline about aliens that came down to call misers a prop vital to their existence. eventually we ran out of it so that aliens left. while they were here they help to build the pyramids. what is really amazing about it is throughout the history scientists have said, it was impossible for humans to have made those things at that particular time. they did not have the knowledge, they did not have the tools, so how did they do it.
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maybe this next page will give us some tools to enhance, you know, the next evolution of civilization. may be problematic. every time things like this happen, big tech, look at this. technology making a huge move-in technology services. sucking the air out of the rest of the market. i wanted to keep going. it is not really a bad thing per se. the broadening out of the rally started last week it is absolutely phenomenal. consecutive days over declining socks. that is a record. believe it or not, that is a record right there. six consecutive sections in a row. we were broadening out. that is what a lot of people want to see to feel comfortable with the rally. only seven stocks, only 10 stocks, stocks trading above their 50 day moving average. falling off the cliff coming
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into the year in that is why we were so weak. now they are starting to pick back up. it feels like you could just kind of throw a dart. the problem, however, is not just type. 42024, fact of the matter is, all of the money flowed into technology. this is last year into today. all of the earnings growth came from technology. now, we are seeing money going to industrials, money going into financials, money is beginning to spread out. my first guest is a buyer of energy and datacenter. let's bring in cio stephen. welcome to the show. let me get your thoughts on the animal spirits in the air in general. what we've seen in the last couple sessions. >> this is a big thing about the trump trade. you can feel it in the air. this economy is confident and we've got a big dose of it here.
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when the tone at the top is out positive there's a lot that can happen. that's why we like the broader part of the market. a lot of things that have not happened. it is all going to start coming through. >> in the meantime you do like this. fear to qantas basically is the biggest player in the grid. we have to build out the grid. the only guy that can really do that is qantas. all the cooling for data centers , these are two areas of the market that for ai to work, we all need this. >> we are not talking about necessarily changing high beta stocks, this stock is on a roll. it is a monster but it does not have to hide valuation metrics in some of these other things that may normally scare value investors away. >> mid-twenties, it is not cheap
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for what you are getting, very, very steady growth here in the next five years. we like picks and shovels here rather than trying to trade them everybody loves nvidia. we do to, but who will be the beneficiaries of the buildout that is coming. >> you like financials. no large wall street money banks here, though. >> we do like the broader small-cap trade. these are the regional banks. cfg still has not broken out to its pre-covert highs. that is coming. a real beneficiary of all the deregulation going on from the fed and everywhere else. >> software. this is where you have some of the high flyers. i talk about this a lot because last year into april it was down 14-15%. then we have the ai story. that turns everything around. we have all of this ai out there now we have to do the software
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to make it work. >> and it is happening. you get a little rocky. trouble in every meeting. >> i like being the contrary in. 7500 and all of that. now everyone is jumping on board probably due to washout some of these. we will see. >> i like this. the upside risk, what is that all about? >> we are in a chess game here with tariffs. more lng from truck. cutting down russia's revenues. helping with the ukraine war. approves the trade deficit. >> sort of a no-brainer.
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>> some guy in canada was threatening to cut off energy to three states. come on, my man. stop it. stop it already. one thing i love about you, stephen, is your words of wisdom i was reading this story behind this headline strapped to the mass. you talked about volatility. what does this hearken back to? >> getting through the streets with the sirens by strapping himself to the mass. he would fill his sailors years with wax but he'd want to hear the sirens. i am just trying to warn our investors here. this is going to be a rockier year than last year. there will be ups and downs. some of these near-term risks are high. so when we get that, we just have to stay focused on where we are heading which is economic growth of 3% by 26 with all the reforms that trump is putting in place. a lot better earnings in the
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market is not really overvalued when you look at it. >> great seeing you. thank you very much. appreciate it. >> taking the plunge right before the inauguration. the crypto plunge. right before the inauguration. you knew that trump, he talked up crypto, he talked about the coin all the time. he went to the conferences. what was this epiphany of i've really got to be in there. i went in on january 6. i never got into bitcoin before this. i've been a skeptic. clearly got a crypto agenda. so we will now see a framework that will allow crypto to do it in a more mainstream way. people are talking about it. it's all about adoption.
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i thought that this was a time that it would start to happen. >> this is something that isn't broadening out. it is not unusual to be around this. a massive topic of sort of scorn or ridicule. >> everyone is okay where's bitcoin i want to give it a shot >> that is exactly right. >> it will still be roller coaster. i went up about 100,000 and it was down to 96 and now it's back up again. i am very honest. i am down about 8% out of the gate and the etf is up. so i'm ready for this to be volatile. >> i do not even look at it day today, i really do not. stargate. you being johnny on the spot, you actually interviewed the cfo which is intriguing because soft bank has a stake. musk said this is a conflict of
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interest. one of the biggest winners in the market today. what did the cfo tell you. >> his answer to my question is our conflict he flipped it on the head. very well media trains. because of softbank we can get great access. one of the tech partners along with microsoft nvidia, open ai and oracle. oracle and tiktok. this is where the softbank gives them access to stargate in a way i don't think they would otherwise. >> yesterday oracle had a 2% gain. someone knew something yesterday that is why you have to watch the tape, folks. one other thing i want to ask you. i do not have it up he. >> president trump coming out with a whole bunch of different thoughts and ideas. he puts it out there for public consumption. it feels like he desperately want something to happen. how do you see it playing out ultimately. >> it does go to a u.s. by. even as he was signing those
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orders talking about it being a joint venture. larry ellison's name is being thrown out. oracle. in 2020, dear member this, charles, oracle and walmart teaming up to go by to talk. i think we should watch out for oracle larry ellison play. i think we should see what true social does. whether they start circling. >> what about amazon? >> amazon is an interesting one. we have seen the growth. doing lots of live shopping. i would not rule it out. >> bottom line is a deal will get done. >> i do believe that a deal will get done. >> you took the plunge. all right, folks, a lot of intriguing items emerging from this current market. the reaction of course of trump
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charles: welcome to trump 2.0 where there is something, well, we all kind of think we can look to the prior roadmap for help as investors, really passing, the u.s. markets will trend higher. he is looking at emerging markets being led by china. let's bring in jack. you know, just overall, before i begin some of the more nuance questions, the general feeling the last couple of days, it feels pretty magnetic. >> it sure does. it certainly helps that the 10 year treasury yield has come down a bit to ease some of that flow because, certainly a lot of enthusiasm out there. a lot of it fueled by these trump policies.
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>> i saw china and of course, you know, people have been emerging markets for a long time , doing all of that. adding a list, trying to jumpstart the economy, you like china here even with the potential trade war. >> let me just rewind here. what i am saying is that the policy, the markets between the election day inauguration day 2016, trump one point oh versus trump 2.0 are almost identical. large gap beating small-cap. u.s. beating international. then what happened was in 2016, from election day to the next november, all of a sudden, yes, u.s. large cap did okay but it was emerging markets and international that outperformed. 's my point is while everyone is
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focused on policy and the prospects of policies influencing markets, once we get past the inauguration where we are now, investors will focus on other things, other macro items. i do think that china is synthetically cheap. i also think they have so many fundamental flaws and so does international that they will have to overcome some of those fundamentals in order to rally higher. i am not suggesting this be the leading market this time around but last time, trump one point oh, china was up 42% and that is not something that would have been anticipated between the election day inauguration. charles: starting to drift down a little bit. where does that put you with respect to small-cap, mid caps, where would you be overweight right now? >> our base cases we do expect and slowing growth, slowing inflation. that paved the way for lower 10 year treasury yields which
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would've -- usher in a broadening. we do expect the average stock to outperform. small caps to outperform large caps. that will be fueled by two things. one is a broadening of earnings, the nice thing is, you know, yes the earnings will come down to the mid- teens and growth, down from about 30%, the average stock in the market is actually going to increase their earnings to mid teens as well. that will be part of it. if the interest rates do come down, that should usher in a broadening market. >> i want to go over your stock picks. we have a minute to go. a few people have been talking about this in the last few shows what's going on there. >> strong cash flow. a diversified financial company including some insurance, but it is a huge, has a huge free cash
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flow yield primarily florida and great high-quality company. it is really moving over the last couple of months it has been moving higher in recent days higher. the next stock we want to talk about is dorian lpg. this is a liquid natural gas. you are talking about it in the previous sector. we think that as we start to drill and export more lng shipping should really continue to rally higher. and then, lastly, aligned with a lot of these policies is oil and gas exploration company. all three high quality generating huge clash -- huge cash flow. charles: i know you sleep well at night with that cash flow. [laughter]
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thanks a lot. see you soon. thanks. ai just absolutely rocking and rolling. here is the thing a lot of power when i say a lot of power, wait until you see how much power we need. you've got to wonder why were we not working on this already. you can make a lot of money. rob luna has pinpointed a few of these places. he is up next. ♪
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♪ budget. >> i'm giving it all she's got, captain. charles: i'm giving it all she's got. you can see right there that they did use it in one of the movies. it is not enough when it comes to powering this country. apparently when we talk powers, not energy, you know, not the old-school power, when it comes to sort of crude oil, listen, we are pumping a bunch of crude oil we do not need crude oil. this is how much we are really in the queue. you of all of this stuff in the queue, but it is not there yet. big giant bottlenecks when it comes to power generation.
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we will win the ai war we've got to be able to power it. here is a problem. it will only get worse. right now 4.3% of our total electricity, the demand for u.s. power rose from these data centers. about 2030, almost 12%. that is a mind-boggling change. we are talking about a ton of investments, a ton of effort. his is a big, big race on the clock. this is what it is all about. the last four years, one of the most disappointing things is we did not have more nuclear power. we did not drill for more oil. we did not do things that we should have been doing. many habits of salamanders and things like that ahead of the notion of, hey, this is national security. this is economic prosperity. we have to keep this going and make sure that this works.
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right now, it is a little worrisome. earlier today we did get some good news. banning a nuclear project in south carolina. they put $9 billion into this thing. they want to reboot it. let's bring in rob luna from luna enterprises. we talked about this before. the conversation that you and i had two years ago, last year, exponentially moving faster, but it is also creating amazing opportunities. how are you position for all of this. >> you talk about the speed of change happening in two-three months right now. you said it right there. the traditional fossil fuels will not get us there. you saw what was going on. ai will take in incredible need of energy. the way i am playing it, you just had the founder on yesterday, nano nuclear, these are the names that you have to own. i think it will be a big winner
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this year and next year. not enough people are listening to it right now. you've got to get into nuclear if you want to be a leader in the ai race. >> you and i both talked about this. the wealth effect. particularly now, this notion of prosperity. you've got some ideas. i wanted to go over them with you. restoration hardware, it seems like they cannot miss. every time they report the stock goes through the roof. why do i not on that stock. >> i love it. everyone is feeling better right now, charles. if you take a look at restoration hardware they keep handing the right product lines for the right people. it has been a tragedy what happened in california, but if you look at the areas impacted by the fire, the demographics, wealthier demographics, they not only walked away to rebuild to buy furniture they are moving to places getting insurance checks, they need furniture now another callous. twenty-30% higher the next 12
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months. >> by the way, i love reach month in terms of products. i am not sure if it is a read -- reach month product or someone else but it is suspending back. a lot of the spending was coming out of. >> i think my wife is single-handedly keeps cartier business over there. this is exactly what you want to own right now. you do not get as much notoriety but i think a little bit under the radar that people should pick up right here. >> disney. i'm surprised to see this on your list although you do have to be rich to go there. [laughter] you do these days. the whole woke thing is getting thrown out the window. i think people were boycotting that stock another coming back. they are expanding their cruise line a lot faster than people believe. they are booked out on the ship
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speared royal caribbean or norwegian, the crew stocks are hot. i will add to their earnings. i like disney a lot, charles. >> last time you were on your talking about buying a quantum dip. >> getty is a big one that i have over there. one last thing, you have to be in quantum, you've got a b in robotics you gotta be a nuclear and you've got a b in cybersecurity. the early 90s and 2000, it is here right now. do not miss out. >> don't worry about the volatility, it is still early. >> you've got a by the dips. charles: thanks a lot, my man. let's talk again soon. i want to stay on this stargazer 's story. a datacenter of value chain. this is inside. the biggest winners today we just talked about arm nvidia, amd got an update this morning, broad, is rocking. superconductor, dell is a big.
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these names are absolutely rocking and rolling in my next guest is also bullish on aim tech thinks the stargate announcement is a big deal. wealth management chief. art, so many people around during the.com bust have been reluctant. they say, hey, you know, do not buy the ai thing. we remember this story. what are they missing? >> the actual revenues. you put.com method to your name, yet a business model and you measure the number of clicks that you got. you really did not have a business. these are real businesses. nvidia the first mover advantage right here. now raking in billions of dollars having to raise every quarter because they are the best provider. arm holdings another great name on your list up there. every time you get nvidia chip you need to line that.
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away from that, obviously with the stargate announcement, microsoft is in there with open ai. a lot of exciting news in ai. we are just at the beginning that at the middle are anywhere near the end of this. charles: let me ask about the technology sector in general. a good day today, we have the big cap opening here. maybe going to a new high. relative strengths moving higher , rate of change moving higher. we still of money flows. when it comes to this sort of thing, picking up momentum, a lot of people think okay i missed it. a lot of people saying this is where you should start buying it >> this breakout is really important. coming into today before the breakout today, tech is one of the worst performing sectors in the s&p 500 and has been until the middle of december. year-to-date technology was underperforming. finally moving into positive territory here today. not surprising.
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building out of all of these data centers. energy, industrials and materials. clearly, that makes sense. when we talk about the stargate building 10 massive data centers and all the other buildup going on for ai, those are the new ai adjacent names. you talk about energy materials and industrials as well. >> we've got six of your stock ideas here. all of a sudden larry ellis is a player. all of a sudden he put himself in the mix. when you are worth $200 million you can wedge yourself into a lot of things. >> you've got a front row seat today. clearly, people thought that that was a detriment of microsoft. they have the first ability to turn down anything in terms of data storage. it is now a new very important partner in this program. when you think about what will happen when you build data
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centers you will need things when you start building things out. part of the energy needs will be satisfied there. to me, i think their ways to play it directly. >> you just reference it. these guys make cement. ai, artificial technology, stargate, no one will think except for maybe a few people in new york, cement, that is apply. you need a lot of cement to make this happen. >> you need a lot of industrial things moved around. one of the most important players especially in texas where a lot of this is happening >> former florida power & light. heckuva stock. appreciate it. see you soon. earnings coming along really nicely. the banks last night netflix. could earnings actually carry the rally baton.
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the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways.
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>> earnings have gotten off to a superduper hot stock. thanks last week, netflix, they had their best quarter ever. thus far these results have been living up to the hype. my next guest says this may just be the start as earnings are expected to broaden out for the remaining of the year. let me bring in asset management , we did not put your name in there, jack. [laughter] did you see that? >> that's all right. charles: i'm sorry about that. you know, we did put this chart. it is not necessarily your choice, but everyone kind of agrees that we hit an inflection point in earnings we will go up though up and go up. this is one of the reasons you are pretty optimistic about this market. >> i think that is a pretty good way to put it. i'm pretty optimistic about
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where 2025 will take us. fourth-quarter earnings season as it is playing out right now is really doing a good job of setting the stage for the strength that we think will build over the course of 2025. when i am talking about earnings and that broadening out story, a couple of different ways that you can play it. one of them is a little bit more video chrissy credit. financials having an incredible fourth-quarter right now from an earnings perspective. a lot of these banks out we were heading into a recession years ago. charles: did they have to? they had to come out legally. >> without a doubt. now you are starting to see the wind shift. the regulation coming down the pipeline. the economy is actually doing pretty well. one example of a sector specific company. rates moving lower, inflation stabilizing, wage growth
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stabilizing. that is where there is a little bit of uncertainty, i would say. real strong macro data, jobs. what does that mean for rates, what does it mean for the broadening out story. optimistic, but still little bit defensive. >> are you watching the guild as the guidepost, so to speak. under four and a half, well, under for, forget about it. maybe drifting towards that for? >> may be an unorthodox way to approach this, it's not about that. the problem is it is not that the ten-year is where it's at, it is that it is up 125 basis points from where it was four months ago. so much uncertainty out there from a macro perspective. i continue to see volatility and rate markets which will transfer in stocks and bonds. >> let's talk about where you see high quality. that is your focus. that is where you sleep at night
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large-cap growth and large-cap value. it is interesting you have this on the list. more often or not it's one of the other. it is not both. >> i feel like a real economist. >> come on the show next week and say, i told you so. >> cannot be wrong when you put it like that. the story to me, large-cap is a quality play. a lot affixed rate that. being kicked out far from now. not a whole lot of refinancing risk even with what is going on with interest rates right there that we just talked about. the earnings are there, these companies are profitable. the index is looking really strong. i like that arch -- large-cap play. splitting the difference growth and value, a little bit more nuance in that. it was for so long just the magnificent seven. now it is a 500 name index.
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you cannot really think about things in terms of style boxes. i don't even know if you want to talk about this in terms of sectors. high quality companies trading reasonable evaluations. across the board. a little bit of growth, a little bit of value, i think that that is a way to play this. >> we started this conversation talking about earnings. just to sort of point to what you are saying, within these areas there will be opportunities. you have to be pretty sharp. great seeing you, my man. really appreciate it. and you got the memo on the suit >> we look good. charles: we will talk about something we don't talk about a lot. we used to make fun of china and those ghost cities. wait until you hear how much this is costing you. never fear, president trump says he will do something about it. i have a power panel that you will love. we will react to that another great stories next. ♪
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charles: so for years, right, we made fun or marveled at shy that's big coast -- china's big ghost cities they built in anticipation of becoming number one city in the world and the high speed rail, their economy not lived up to the hype, and they're stuck with all the ghost cities, and i got to tell you, it was really intriguing that goldman sachs says because of that and other things, china has 13 trillion, with a t, trillion of unsold real estate. many cities are like pachyderms and our own problem and white elephant. of course according to investapedia and the cost of upkeep is not useful for the value and investment point of view and asset or property or business that's too expensive to operate and maintain so, you know, you can't make money from
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it and trying to get rid of it. say no more. president trump arrived, and we know there are no white -- no elephants in the room but no white ones that he wants weighing on taxpayers. get this, the federal government has 14,000 empty buildings. 14,000 empty buildings that cost $2 billion a year to maintenance and utilities. in addition, federal agencies only use 25% of existing capacity. and 'til spend $5 billion leasing more desirable office space. that's crappy and we want our own office space. then washington dc, so many of the big giant buildings look like massive moslems and people have been ordered to go back to work and returning to work, the waste in there is absolutely amazing. i just want to talk about some of the utilization. there's one building with the department of energy that is 0% utilization. there's another, which is 2%, one with 6%, one with 7%. the numbers go on and on and on
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it's really absolutely mind boggling want joining me to discuss, political commentator and kelly jane. kelly jane, these are giant buildings sitting empty and we've got to pay for them. >> it's insane, charles. the amount of upkeep, i hope they're tabulating how much the american taxpayer is spending, and that list is crazy. not a lot of energy going on at department of energy. and environmental protection agencies just 8% utilized. i know lee zeldin will do something about that once he gets con if i wered and is heading that up. charles: right. deborah, what are you make something >> this is spitting in all the faces of amer americanst are dealing with a housing crisis. we have people living on the streets and sad that there's so many government buildings not being used but especially when in so much death debt and asset being waste asked glad we have a businessmanman back in office. not even half of the
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buildings -- >> sorry, no single government federal building are at 50 persica passty. charles: absolutely nuts. >> complete waste. charles: the hot story, ai and stocks are through the roof. it's all the rage on wall street and apparently all the rage in school now. there's a new pugh research study out. teens are far more likely to say it's acceptable to use chatgpt for research doing essays and math problems and 54% say it's acceptable and 9% say it's not acceptable. are kids going to be able to learn in this new environment? >> i don't think so whatsoever and i've said for a long time the rise of artificial intelligence would be the down fall of human intelligence, there's a difference when the teemers said you won't always have a calculator with you and need to know how to do math. that's different than reservice connected and have deciding for yourself what's valid information and entrailing that it's programmed bay human being and has an algorithm to give you day it and need to have critical
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skills. this is america. you need your children educated. charles: show me your work. there's a link to it. you've got to -- >> and making a good point about chatgpt being programmed and there's a liberal bias. you ask it questions about hunter biden is laptop for example, it does not tell you the truth. i love wikipedia myself and don't rely entirely on that and don't rely entirely on chatgpt. charles: all the big time money being made on stocks here for awhile. i wish gen z was more involved and obviously they can't be yet but they're going to probably have to be according to them. they say that they need $9.5 million to be financially successful. take a look at this, this maybe is how it's going to look for them in real life if they don't somehow get their act together. all right, we'll watch as -- this is how we start, deborah,
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and how it goes. you're wait because 9.5 million take as long time to come. it's maybe being unrealistic and it's at least ambitious. >> yeah, but i think my generation is understanding inflation and how much it's affecting us, and this shows how scared we are to buy homes and affording school and having children and children and groceries and everything and we're not being given a great economy and glad we have trump back to fix it. i'm 24 and plan to have kids in a few years, god explg buy a home and i don't want to need $10 million to live a normal life in the united states of america. we should do everything we can to know that's a ridiculous amount of money and that's inflation. charles: that's a great point-blank layups. they've live with the inflation and housing, housing unaffordability. >> mortgagesare record highs. during the pandemic seeing the stock market tanking in some sectors, i had some jen z friends and didn't realize their 401(k) with the stock market and
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new to the working world and didn't realize there was a connection. them seeing the volatility of the pandemic years and then under biden how thing haves gone. you're seeing inflation, they're really worried but hopefully they can take it a little -- rest a little easier the next four years. charles: we're looking to the future and what it takes to retire, how about this article i saw: why you should never retire. i mean, you're a little young to think about it but, dellly jane -- kelly jane, should people continue to work? >> i don't see myself retiring. i mean, obviously if i were to get nebraska dementia, be hard to be a writer and editor, but i love what i do. i love what i do and love being in the game and being involved and when i get sick, i miss it. now, i know not everybody is like me, but it's good to have something that you're contributing towards that you're working with other people on on a daily basis. charles: i'm seeing so many creative people retire and die a year later, two years later. say it's a coincidence or not, but there's something to it.
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if you're a laborer, maybe. we've got less than a minute. one other topic to ask you alaska, in japan, where they had this sort of aging crisis before we did, we're lurching into it. they say some women there because they're so lonely are choosing to go to jail. they at least have companionship. what do you make of that? >> there's a loneliness epidemic in america too and so many youth identifying as as lgbtq community. charles: that's part of loneliness? >> yes, it's a desire to feel apart of something and no religion and engaging with people around them and need to feel apart of something and i have the jewish community, republican party and a lot of communities. it's saturday and hope for a healthier, happier society. charles: weave seen this and -- we've seen this and how it works and can try to avoid it. kelly and deborah, thank you both very, very much. liz claman, over to you. liz: it's big. pinstripes are huge for the spring. you've like 30 years early. charles: this comes back
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