tv Making Money With Charles Payne FOX Business January 4, 2016 6:00pm-7:01pm EST
few weeks. lis weihl joining me there. thank you for joining us on "risk and reward," make money * with charles pain starts now. charles: bill clinton hits the campaign trail despite trump's saber rallying. plus trump's provocative campaign ads. some are take matters into their own hands. president obama bypassing government and gun control. the stock market off 276 points. most investors feel like they dodged a bullet. making money starts right now.
markets plunging 276, the worst start to a new year since 2008. where do we go from here? we brought in the investment and economic pros. cortez, let me go to you first. the stock market despite the fact we were all on the dow and s & p, is this and extension of that or something new? >> i think it is. i have been sceptical and there are reasons to be sceptical into the new year. we were incredibly reliant on just a few names. some high-flying tech momentum names.
today those names are often referred to as the bangs. those names got decimated today. the fangs. we are doing okay but we can't be coupled from the rest of the world. charles: you were negative on the fangs through 2014. >> it made a high in november. and i have been particularly negative since then. momentum stocks led the market higher. it's not the types of winners you want to see to move the market higher. we'll talk about some of the picks we like. i think there are some bar gauges but in joint's time to be cautious. charles: how important is it
china continue to be the star. maybe the u.s. has to pull its own weight. >> it's been the straw that serves the drink. now according to how want to believe about the china statistics, and sometimes not believable. but somewhere the growth rate is 2% to 4% so it feels like a recession in china. i make a couple points about why china is slowing down. the manufacturing and output slowed considerably in the last three months and that caused a great flight around the world in terms of stocks. but china did something stupid which they learned from the united states. they have circuit breakers on the market. that i believe contributes to the manic selling. it's like having depositors in the bank and you tell them you
can't pull out your money, that causes them to panic. >> just so the audience understands. today was the first day china puts any circuit breakers. they go down 7%. they don't know what to do, they close up the market and everyone goes home. so we don't know what kind of pent-up selling we'll have overnight. >> gambling and corruption in china, and they are starting to feel it. charles: will our stock market crash because of their gambling and corruption. >> no. stock like kohl's was very resilient for us. charles: i see 16,900 as a muscle support point. what do you see the worst case scenario coming out the gate. >> we could be down 2.5 to 3%
but i see us coming back from that. the beginning of a new year, flue quarter, there is lots of money out there and many money managers will be out there looking for bargains. charles: steve cortez, you make the point that it wasn't about bargains. we heard a lot of money has been on the sideline since 2009. first of all what would be your worst case scenario. and what would turn it around? >> charles, i think at least 10% down side is possible here. last year we struggled to make any gains depending on which index you looked at. it's not that china matters that much in and of itself. it's that china matters so much to global commodities. we are saudi america.
but near term we have a problem. we don't like the 30s and china is the one forcing it there. i think we have to be careful going forward. but in terms of a catalyst for the up side, i think it will be a republican win in 2016. we need deregulation. if that happens i think the u.s. economy catapults higher. >> worldwide it's a leadership problem. where is the leadership coming from? you don't see many leaders in europe. the leaders around the world are been talking about climate change, not how to keep people out of poverty. if steve is right and we see a republican win in 2016 and you have a pro-business president, the up side of this market is huge. until we have some kind of resolution on this, when you have got hillary clinton who you might say is the most likely
person as the next president talking about racing taxes and wealth redistribution, that's a problem. do you think businesses will go out on a limb in they have been sitting on this money for a long time and tart to make it capital investments you told me are the key to real prosperity in this country. >> you put your finger on the problem. what's wrong with the american economy? businesses are not investing at the normal rate they would. why aren't they? they are afraid of washington. if we can see that cloud of fear dissipate and do the political changes, i think you would see one of the biggest booms we have in the country. but it would require a change regime. charles: i think coming into this last year, there are 181
million new regulations. president obama will start to break out the pen and phone. how detrimental will that be? going around congress, going around the constitution. coupled with hillary clinton remaining strong in the polls. >> barack obama intend to spend his last year on air force one going around the world meeting leaders. i don't think he will actually get that much done. i don't think he has the will or the drive. i think his going on this trip is self-serving. in terms of hillary clinton that could be problematic because obviously we do need tax reform and we need reforms badly and quickly. lons there is some clarity i think we could be fine and the rest of the world will see us and does see us as very strong and stable, most of the selling,
most of the stocks are being sold off out of countries, sovereign wealth fund. iran. charles: the american investors gave up on american companies as well. today we saw a lot of great american names that got crushes last year. go-pro is a new name but a lot of people think has a great future. >> so in my case i'm very bullish on cab. this is the sportsman's store more camping, hunting, fishing. they sell guns and guns are a constitutional right. so i can see cabella's coming back. charles: where is the 100 bithat
was saved last year at the pump. essentially that didn't make it beyond coffee cans and underneath pillows. what is the disconnect? why doesn't the american public put this money to work? >> i think some of it did filter back to the economy. i think low oil prices are a big, big stimulus to the economy. i just disappear with most economists on this. for everybody else it's a huge boom to the economy. can you manage what the economy, how bad it would be if we had rising oil prices rather than falling oil prices? >> steve, i can't disagree more on that point and you and i seldom disagree. >> the only real -- when you look at u.s. recovery, tepid
recovery since 2009, on the sector firing on all cylinders, that is the only real job creator. if the united states didn't have the energy and shale revolution we would still be near recession lows. >> steve, you have to think technology here. we created new areas in the technology world. and there is a lot more than energy. we are lucky we are diversified. charles: i think we can argue the fracking boom is a technology marvel. the great jobs created from 2008 on in the big capital projects, the new rail tracks put in, that might have made the difference between a sear serious flow. bottom fishing, people are looking for stuff to buy. would you consider some of the
beaten names we have talked about already? >> absolutely. overall i'm fairly gloomy, but there is always some light in the darkness. you mentioned walmart. i think walmart is a fantastic name. if there is a sector that can benefit it's consumer staples. another thing talking about oil and global geopolitical anxiety. i love defense names. with iran and saudi arabia, the world is dangerous and it will get more dangerous. i love defense things. you guys fantastic. really appreciate it. right now it's bill clinton. he began stumping for hillary. he was speak a moment ago to a crowd in new hampshire.
charles: he's back. bill clinton hitting the campaign trail. hillary has been catching a whole lot of flack recent lire for bill's history of scandals. donald trump spearheading all this. the gop frontrunner recently accused bill clinton of being one of the great women abusers of all time. will attacking clinton actually work? joining us now katrina pierson and david mack into be and tammy bruce. now that bill clinton is on the
campaign trail, do you think the best way the attract hillary is through the indiscretions of bill? >> only if she is using the sexism charge. she called donald trump a sexist and he responded in time. we have an entire new generation of vote horse need to be educated on the issues and the media no longer has the monopoly on how things get reported. charles: vote for the guy who is the lesser of a cad? in other words, donald trump says my life is fair game. he has been divorced a few times. is that what this campaign has been reduced to? is that what we are going to focus on? >> it's almost like watching an
episode of the kardashians and you have unsavory characters taking pot shots at each on thered and none of them are showing how to lead. trump himself said bill clinton was the best president out of the last four. now when hillary takes a swipe at him web's going after bill clinton. i think it's been reduced to this personality, we'll yell and shout at each other an entertain the voters. what are we going do to spree store the economy and create more jobs and get it back to being prosperous. >> donald trump's counter punching has been an amazing weapon. >> that act itself is something americans aren't used to seeing. they are seeing a collegial
thing where nobody says anything bad about anybody else. you saw thaty with john mccain and jeremiah wright. even in 2008 bill's approach wasn't able to save her from barack obama. so it didn't work then. that's preemail server, this is a dynamic that may tell you internally hillary sees some problems and she is not confident herself about her campaign. charles: a couple points in the ads that started airing today. a lot of people saying you used this footage from morocco. i saw a tweet from cory. how do we not was morocco. and the part about where we quickly cut off the head of isis
and take their oil. isis doesn't really own any oil. will we take their oil and give it back to its owners. >> he wants to contribute money we get to the veterans and families of veterans lost their lives over there. with regard to dave's points with leadership, i think donald trump being in the lead on issues that are very important particularly to republican voters, he has been leading in the on these issues and that's what these videos are reflecting. charles: until proven otherwise. donald trump's tactics have worked tremendously. you cannot miss fox business's next presidential republican debate. the remaining gop candidates will take center stage in south carolina.
we have breaking news. the sheriff just safe nounced the oregon ranchers have turned themselves in. this is a huge case. tweet me your thoughts. at ally bank no branches equals great rates. it's a fact. kind of like ordering wine equals pretending to know wine. pinot noir, which means peanut of the night.
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>> you said you were here to helped the citizens. that behinded when a peaceful profest became an armed occupation. the ham monds have turned themselves in, it's time for you to leave our community. go home your family and ends this peace any. charles: that was the oregon sheriff moments ago address the armed militia protesters who took over a federal wildlife building. they warned law enforcement that
while they want to be peaceful, they will defend themselves. the republican presidential candidates were pretty quiet on this. ted cruz said these guide should peacefully ends it or resolve it. what does donald trump make of the whole thing? >> i think that's absolutely right in is so much confusion around this case. this isn't the lands owners, the actual ranchers involved that are complaining about what's happening. they turned themselves in. their lawyer stated they want to follow the law. these are people who came in from outside this community to have this protest which is understandable because a lot of people feel they have been wronged and abused by the federal government. what's happening here is a
symptom of a greater problem of federal overreach without any recourse for the people. charles: would you say the cure is to grab a couple rifles? is there a place where we draw the line? i know we have given up that the constitution is upheld by courts anymore. but do you expect more of this? >> i don't think this is the appropriate way to handle this. the actual people involved in this case aren't part of this. i think that's why this has led to so much confusion. these are people who haven't involved. they came from outside to make a points to and i think that's where they went wrong. charles: the federal government in my minds owns way too much lands. i have been talking about this for years. the bureau of lands management. they take lands. they have given ranchers a hard
time for a long time, aen it's all about the question unquote environment. how does someone serve time and go home and judge says go back and do four years? >> it's about mandatory minimums. >> in this case he said it's too long a sentence for what they did. charles: they already went to jail. another truth matter is they should have served the five. appellate court said she should have served the five. charles: protests, but when rifles are on the scene. i was worried someone in law enforcement would get hurt. >> we don't need them rushing in on a statement as far as the minimum sentencing guidelines. the federal sentencing guidelines.
there was an appeal, they lost the appeal. my feeling are they didn't do something that wrong. once you get these militias in there, you have got to be careful. they don't want the cops or the people getting shot. charles: the mandatory sentencing guidelines, one judge gave them their sentences it seems crazy they have to go back. >> if they made a mistake they should let them out. charles: it will be a great grounds swell for them not to have the serve the time. the president is going to take executive action on guns.
obama earlier today as he met with attorney general loretta lynch and f.b.i. director james comey discussion new gun proposals he will put through this week as executive orders. one will be to expand the background checks on gun sales by requiring for sellers to be licensed. the big question is is it too later on does congress have the guts to step in. joining me is julian merks lcher and heather hanson. i saw a comments from ryan today saying president obama is circumventing congress. my thought was so what web was circumventing for 7 years and you never stood up to him. >> i agree, charles, the republicans are part of the problem. they have given into the president time after time.
ryan will say that because it sounds good. but the truth is the republicans are part of the problem. it isn't just republicans who won't be cooperative with gun control legislation. do you know the f.b.i. reported today that in 2015 there were 23 million background checks. and this president wants to bypass congress. what does he want? more background checks that will do nothing about the mentally ill or terrorists breaking into our borders. charles: 3.3 million in december. since the brady handgun violence prevention act 223 million background checks. the people sense the government coming for their guns and they want to get them while they can.
>> support for the nra is at an historic high. we see gun deaths actually down. congress couldn't pass it after sandy hook. the executive across is the only way he thinks this will get passed. >> we talk about this every evening. we talk about what happens in our democratic run cities in chicago and baltimore. he should be getting f.b.i. guys in the those cities going after gainings killing our minority kids withle illegal guns. he don't know what to do. what can i do at the end of my term, let me try to do this. this is ridiculous. he was get lower receipt ra young or whatever her name is -- i know what her name is -- i'm being funny, you know who i'm talking about. >> it's been interesting
watching the police chief saying we don't have the response time for this. the best response to crime is an armed citizenry. >> i think there is an argument to be made something has to be done and i think the president is grasping at straws. i think he's look at something that will be legal. charles: at this second we have breaking news. we have details. the guidelines on this executive action the atf clarifying anyone selling guns must get a license. anyone. it doesn't matter if you are selling them online, at a gun show, at a store. the legality of that? >> in 2013 after sandy hook president obama took 23 executive actions. that's one he considered and determined it was probably not legal.
the thought that he's going to i am plummet is interesting. we'll have to see how this stands up in court. >> the president is trying to take the second amendment away. if you can control something, get f.b.i. controlling the illegal guns in this country. >> on a political level i'm delighted the president is taking this action. if i had one wish in 2016 about barack obama, it's be yourself 367 continue to overreach -- continue to overreach. what's going to happen is the odds of an outsider on the gop side becoming president ratchet up more. charles: gillian mentioned the polls. president talked about a couple. but overwhelmingly americans believe in the second amendment and they do not want him tinkering with this. this is dangerous stuff he's playing around with.
for you. president obama making a huge announcement on gun control today bap we learned is the atf clarified guidance on this. just about everyone selling a gun now, you must get a license, and you must perform a background check. if you are selling online. if you are at a gun show or store, if you are selling that few as two guns it applies to you. this was before the breaking news. we were going to talk about big government. one of the overarching theme we talk about from who's wing on both sides, the enthusiasm for bernie sanders to donald trump to what's happening in oregon. it's all about big government. president obama is really taking a stand here whether you like it or not, and he will probably ends his presidency making a huge dent, putting a huge comment the second amendment.
>> i go back to obamacare. this will be wiped not you one year. the president is trying to take big government before it' not working. why don't you do something progressive and go after the gainings with atf and the f.b.i. get those guns off the streets that are killing our kids. do something progressive. you are not doing anything by this gun control stuff. >> the next president, even if you are a democrat you have might not like the things the next president is going to do. we have got to go to the courts if we have to. >> it's interesting because president obama is quick to points out any sort of poll that supports his position and yet he's tone deaf or just ignores overwhelming evidence that american public doesn't want to do pig.
i think it' the tip of the iceberg. i think 2016 will be marked as a year of extraordinary decisions by president obama that cuts out the constitution and the congress and i don't think the goes up going to do anything about it. >> they are just going to mark time until he's gone. he's consistent and he's the most cavalier man to be in the white house. the president stopped working with congress as soon as democrats no longer controlled it. what heels done? especially as's on his way out the door, he's going to use regulations like he has with the epa. executive actions, any power even that doesn't have, he will apply. he has another year to a wreak havoc through regulation and executive action on immigration, climate change and gun control. he will go for broke, and he's
going to do it anyway possible. the result will be when a republican takes office in january of 2017, he or she will be very, very busy reversing these negative actions and regulations. charles: it says if you are conducting your business from a store or show you are in the business of selling firearms, you must get a license and conduct background checks. >> when president trump becomes the presidents, i want to be the obama slasher. this guys on a roll. >> if you look at the clean power plan, you have the house voting against it, you have the senate voting against it. obama retoats it. >> all the regulatory stuff -- >> the bottom line i think is this comes back to the courts, and one thing we don't hear
about is how important this election is with respect to the supreme court of the united states. this will set the tone for where america goes legally for decades. >> i don't think there has been any president in recent history that has been likely to appoints as many supreme court justice as the president will. every issue we talk about daily will be impacted. charles: china, limits say they had a hiccup. we opened 467 points. i did some buying today. we'll twail to do to stay the course. etirement. alright, kelly and promise me that you'll try that taco place on south street. and we have portfolio planning tools to help you manage your ira. yeah, you're old 401k give me your phone. the rollover consultants give you step-by-step help. no set-up fees.
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charles: the dow fishes down 276 points and the nasdaq 100. you know it was a tough session. the bad data coming out of china caught investors float footed. today bad news was bad news. overseas and at home we have manufacturing data that contracted. people say as january goes so goes the year. so today obviously matters a lot. this week we have the latest on auto sales and friday the all-important jobs report. better to show a pickup in jobs creation and a spike in wages. overall there is a lot of value in this market. just like last year, though, you won't be able to throw a dart to find winners. there is low-hanging fruit.
i happen to be excited about the opportunities which are about the same -- really not the same as being bullish about the market but it means puck make money in the market. i like what's happening in oil and i have got a lot of areas. i worked on this feverishly for the last week or so. i don't want you to stick your head in the sand. we can make money this year. auto maker general motors investing $500 million in a start-up. general motors the first automaker to back one of these ride hailing services that will allow users to order a self-driving car. in other general motors news the company elevated mario to chairman.
the stock is trading down 2% today. san bernardino the sight of that terrorist attack that left 14 dead reopened today just before there was a memorial for the shooting victims. a program manager said he and oopters would be thinking of the victims as on their return back to work. the property is surrounded by fencing and they are check employee bangs every time they enter the building. we'll be right back.
cleric with 46 other convicted of terror charges, here with me now major general scale, and walid phares and tammy bruce, overwhelming majority of those executed were sunnies . considered to be terrorists, their legal system is not our legal system. is this enough to increase what is already a very tender situation in the region? >> well the situation has been on for many years, there is a -- was a cold war, sometimes low intensity with saudi led coalition. the hewitt -- they are backing militia in iraq and syria. so they were against each other on the ground. the only difference they were not directly at each other's throat. now it is happening, escalation is happening
between iran and saudi arabia, i think there will be limitations. they know it dangerous for both. charles: we can't forget that war between iraq and iran. a senseless multiyear war. no one ever got the upper hand, general scales, these are the two main players there. it feels like even though it sounds crazy it is inevitable? >> note only is -- not only is it inevitable but it is escalating, i see this as the tipping point, we talk about gray wars this gone beyond a gray war, beyond isis versus the west. this is now become what in essence is a regional sectarian civil war. what happened yesterday will have implications that does not just affect saudi arabia and iran but our war against
isis, it will prolong the syrian civil war, the consequences of this are going to be enormous long-term. charles: tammy, i found it interesting that secretary of state kerry, called iran to sort of appease them, this a week after they test fire a missile within a thousand yards of one of our ships, what the heck is going on? why the appeasement of iran every day. >> this right on heels of no sanctions because of the missiles issue the no matter what they do in the region it will be okay with us. we're not going to react anything else, this is saudi arabia realizing they must take action now, they have no one that has their back. iran is allied with russia. they are dealing as your guest noted with proxy war now in yemen, and they now have to
make a stand in make a statement to iran, this is what we're doing, they have their allies now, the obama administration is completely missing the disaster of what this will be for that entire region, that is where inexperience, immaturity come in that will affect the entire world. charles: someone mentioned -- earlier. if saudi arabia has to send troops in yemen, is 'possible that iran could counter, could that be the spark where they cam face-to-face take this to another level? some you nailed it. because the reason, one of the major reason for why iran is putting pressure on saudis, was backing the networking operating in eastern saudi arabia, and. because of saudis and uae, and
their allies have pushed pro iranian militias, this is a way to stop them. charles:ly hope so, thank you very much, all 3 of you, at home thank you for watching, now here is lou dobbs. lou: good evening, i'm lou dobb, happy new year, a standoff in a national wildlife refuge, and park in eastern oregon, between law enforcement agencies and armed so-called militia members now in the third day. day. tonight the fbi has taken charg charge. the agency is trying to come up with a peace fill resolution in support of two ranchers who have been persecuted in an overreach of federal power. antigovernment protesters moved into what was a small building in the refuge if burns,