tv Wall Street Week FOX Business November 5, 2016 12:30am-1:01am EDT
it will be marvelous. please join me. good night from new york. [♪] >> announcer: this is more than about investments. we talk about anything that affect people and their money. from fox business headquarters in new york city, the new "wall street week." anthony: welcome to "wall street week," the show of record for long-term investing. i'm anthony scaramucci. gary: i'm gary kaminsky. a crucial jobs report shows the u.s. added 15,000 jobs while the
unemployment rate dropped slightly to 4.9%. anthony: hillary clinton tops trump in categories like foreign policy. we welcome to "wall street week," wilbur ross, wilbur, you are supporting donald trump, but i think it's largely for economic reasons. could you explain to us why? >> i think we need a change. the 161,000 jobs was he people c enough. but all jobs are not created equal. 8.2% of these total jobs are part time. part time jobs went up, went up 90,000.
full-time jobs were down 109,000. that's not a healthy economy. while the media may say this is fine. the guy who is stuck in a part-time job doesn't think so. the other reason jobs are not created equal, a lot of these were in healthcare and retail. those are not high-paying jobs, and the retail ones are probably just temporary. anthony: what could the new administration do to change that mix of jobs and the quality of them and improve the wage mix for the american worker? >> it could do a lot of things. we have a huge trade balance problem. one of the few good things about the recent gdp report was that our experts went up. unfortunately the main reason they went up was a big sale of soybeans. i have nothing against so i beans. but it shows how feeble we are
when the key indicator our booming exports is so i beans and not manufactured goods. so we have to bring jobs back. we have to bring back high-paying manufacturing jobs. and the on real way to do that that i can see is two things. one, fix the balance of trade. two, trump's infrastructure program. as you know, we put forward a trillion dollar privately financed program where the equity investors in infrastructure would get an 82% tax credit. that would be recouped by the taxes on wages and contracted -- contractor profit. so the government would get the $2 trillion infrastructure for free. anthony: the media has been saying the markets have been down the last week because of
the likelihood of a trump victory. what do you expect happens to the markets if a trump victory happens. one of the concerns i heard throughout the street this past week, is what happens -- and there is a good likely -- good likelihood trump wins the popular vote but lose the electoral votes. what happens in those scenarios. >> wall street for whatever reason has decided to go democratic. it's not surprising some of them might be disappointed as it looks like trump might actually win. but think what a trump presidency would mean to the market. very few companies have their earnings go up 30% a year. but trump's lowering from 35% top rate to 15%, that means
there would be 30% more pretax earnings carried through the post tax. i can't imagine anything better for the market than having just about everybody's earnings in hand. i don't see where all the great concern about trump should be. gary: what if he wins the popular vote but loses the election. what do you think will happen then? >> i think that would be very, very bad. because that would hint at potential civil disorder. it would hint at changes of people believing in the voting system. it would make a big, big mess. and particularly so with obama and hillary playing the race card all over the place. obama ran on a ticket of unifying the country. and he has bent most divisive president that i can remember.
so i'm very worried if you have that kind of unbalanced solution. i'm very worried that there will be very, very bad things go on. gary: i would actually agree. that would be the worst case scenario for the markets. anthony: last week we had home depoems founder on our show. >> it seems to me that washington is working on how to hurt people and how to keep jobs out of america. i don't get it. i'm a businessman. i worked for the last 55 years creating jobs. i think i understand how to create jobs. the way to create jobs is knot the way they are doing it. hillary is talking about taxation. anthony: what's your take on that? >> i think taxation is a very big reason why jobs have moved overseas.
if we go down from the 35% maximum rate to 15%, we'll be extremely competitive with any country. one consequence of that is a lot of the earnings characterized as non-u.s. will be recharacterized as u.s. that will be the beginnings of the solution to the problem how you bring money back. second solution is obviously only taxing it at the 10% rate that donald trump was talking about for repay triyaition. but the more important thing in some ways is deregulation. the regulatory environment is horrendous for people to deal with. they are at the point where the they are even regulating the kind of charger you can use for your electric toothbrush. give me a break. with all the serious issues we have in the country, is this
what people should be focusing on? you had 7,000 new rules and regulations created the last two years. are we such a wild and woolly under regulated country two years ago that we needed 7,000 new rules? i don't think so. gary: "wall street week" will be right back. >> announcer: still to come on "wall street week." donald trump, hillary clinton, marc faber says it doesn't matter bec
our next guest is very worried and says you should be, too. anthony: marc faber joins us now. how do you think the presidential election will affect the long-term investor? >> i think mrs. clinton is elected, that the market will rally short-term. but no new highs. the all-time high was august 15. that's 2,193 on the s & p. i don't expect a new high. hillary will be very, very negative in the long-run for stocks and bonds. on the other hand if mr. trump is elected, much of the decline people have been fearing that mr. trump's victory would bring about has already occurred. so the market may sell off a bit more and bottom out and also rally. but in the long-running a wilbur
ross just pointed out. in the long-run a trump victory would be much better for u.s. assets than a hillary victory. anthony: there is a common notion out there if hillary clinton wins the election the stock market will rally because they know what to expect. i think you have to be concerned that is not going to happen because everybody expects that. >> the market rarely does whatter universally expects -- what everybody universally expects it to do. if it did, i couldn't make any money. so i am a contrarian. i think there is another phenomenon if it's hillary clinton that happens to win. you will see more volatility in
the market than you would with donald trump. and the reason is, look at her tax proposal on stocks. she is basically staying you have to hold stocks for six years to get full long-term capital gain treatment. people aren't going to want to hold stocks for six years it was one thing when you only had to hold them for a year to get the treatment. now you will se -- you will see more hotter-term trading because people d won't want to take the risk. especially the tax policy center admitting trump's policies would be better for the economy over the next few years. with hillary you have the further problem, she wants to put $275 billion more tax on businesses.
that's to pay for the infrastructure program. that's 7.5% of total business earnings and 1.5% of the economy. that's not a formula for a booming stock market. anthony: you are writing the gloom, doom and boom report. what do we get with mr. trump, boom? >> i would say we'll more likely get global peace than with mrs. clinton because mr. trump is relatively pragmatic. he doesn't stand up and basically express the opinion that he hates mr. putin. he looks at the world, also from the perspective of russia. he looks at the world also from the perspective of xi ping in china and not just the american perspective.
and the world has changed. all the countries in asia are china-centric. they are dependent on the chinese economy and exports to china. they are dependent on the 130 million chinese visitors. anthony: you wake up next wednesday morning, give us an asset allocation strategy globally you take with both of the candidates given one wins and one loses. what do you do? >> my view is we don't know how the world will look like in five years' time. we have manipulated asset markets with artificially low interest rates and you need to be diversified. by and large. individual and institutional investors are grossly underweight, gold, silver, platinum, and i would recommend every listener to hold to gold. when people say i own some gold.
not just 3%. i would say hold at least 20-30 percent of your liquid assets in gold. why would you hold u.s. dollar cash or any cash in the world which has frequently less than zero interest rates when you can have gold which is an honest currency. >> our thanks to marc faber, "gloom, doom and boom report" founder. we'll be right back. thanks, guys. [♪] >> announcer: is the market saying investors should be afraid of a donald trump presidency? or is something else going
anthony: welcome back to "wall street week." the markets were rattled when the f.b.i. reopened its investigation into second terry clinton's emails. it appears donald trump might win this election and the more volatile the market is. charlie, is there a correlation between trump doing better in the polls and the lower stock market? charlie: the dollar versus peso trade. look at the measure of volatility, way up. gold. people are putting money in gold. the market is rattled by donald trump.
it's selling off in various ways as his poll numbers tighten. my bigger point is if you are a small investor. try to tune this out. can i just make this point? the -- he's going to be net-net good if he wins. he will be net-net good for the markets long term. we'll have a fed rate increase in december. we'll have volatility. but there is no way a republican congress which will likely come in if donald trump comes in will renege on nafta. they both make me sick in a number of ways. >> are you voting? >> no. >> i think the market is down because the hillary clinton presidency was baked into the cake. i think they didn't expect him
to be president. but so many republicans going against donald trump for the congressional, the balance of power here, they might vote hillary clinton. but keep republicans in. then you have gridlock and that's good. gary: you don't think the market is down because of donald trump? >> i think it's because it was unexpected. gary: on this program earlier this year, the first person on wall street to predict donald trump would win the election. good long term. but the market doesn't buy that. charlie: i believe the stock market and investors are concerned about one thing. trump wins the popular vote by a large number and loses the electoral vote.
gary: that would not change the portfolio. gary: they are worried about nafta being repealed and tax policy. and uncertainty on him. >> he's a change, he's different. the status quo would be clinton. gary: he's crazy. anthony: you are going to abstain from voting. i have got to talk to you about that. your feeling about secretary clinton's emails is what exactly. >> the fear is she can be indicted because of the email and the clinton foundation. americans might go to the polls and say is this worth it? because this could be chaotic. >> i saw him in the green room. retired f.b.i. agent.
he was the head. and a marine veteran. he thinks there is going to be an indictment of secretary clinton. so do you think it average voter is calculating that when they go into the polls next tuesday? >> i have been talking to people in the know and the regular person on the street. and a lot of folks are saying that the way you are going to vote before everything is happening is how you are going to vote, or you are not going to vote. gary: the staff, the guys on the ground want her indicted. they want an investigation of the clinton foundation it's the power brokers, the guys in washington, kallstrom will tell you the same thing. to get an indictment you need the justice department to approve an indictment.
anthony: you have to get a grand jury together. gary: the f.b.i. cannot impanel a grand jury. sow my point is, this all moot unless you have a trump administration. she probably won't be indicted. f.b.i. agents might go rogue and leak information which i hope they do because she deserves to be indicted. anthony: on the markets post election what? charlie: hillary wins, the markets are stable. donald wins, it will be a crazy ride. anthony: get out there and vote. don't be like charlie.
. >> all of that wall street money going to help crooked hillary. >> donald trump is doing his best to confuse the american people. john: enough! there's more at stake november 8th than the presidency. >> yes on prop 60. >> no to amendment 3. john: this year millions of americans may have their lives changed if certain ballot measures pass. >> nine states will vote on some form of marijuana legalization. >> it's going to get much hotter. john: some advocates use kids in ads. >> i know it is nothing. >> don't go out buying new things