Pete jumping on Larry Kudlow Show

to Nancy Tangler, CEO and chief investment officer of Lafer Tangler Investments. Her latest book is The Women's Guide to Successful Investing. And uh Pete Nagarian, co-founder of Market Rebellion and Option Monster. Pete Nagarian, Nancy Tangler. M >> this sounds a little I'm just saying this little coppery a little uh thin on the maybe somebody's going to fix my microphone but Pete Nagarian I'm looking here >> the VIX index 15 okay [clears throat] it's what you taught me it's first thing I look at now [laughter] the VIX index it's pretty low seems like pretty optimistic >> yeah I I think it is very interesting Larry the fact that we we have these markets that are going up and down and it's like a heartbeat, right? I mean, it's boom to the upside. It can be up 600 points one day and down 500 the next and that's that's kind of the market that we're in. But because of the fact that we are very close, if not at all-time highs, um those kind of moves are are almost expected quite honestly because of the fact of the levels in which we are right now. I mean, if we if we drop like we did on Friday, 270 points, it's only a half of a percent. So, it's not it's not that much of an impact. So, we're looking at the volatility index, which at a 16, you're looking for about 1% move. Well, we're not even close to an S&P move. That's 1%. So, it's it's interesting to see. We're down there at 14 a.5, which actually makes a lot of sense right now, Larry, as I'm as I'm getting ready each and every day. I look at that volatility, like you just said, I look at that and and a new thing for me that I I have to watch every day because it is what inflation is is crude oil. And I just look at the WTI every single morning to see, okay, what are we going to expect for today? And here we are at about 91 and a half right now for WTI. >> Looks high to me. Looks very high to me cuz they're moving oil. They're moving oil through >> Mhm. >> through the straight form. I mean, I don't know. Nancy Tangler allegedly they're moving and this is from uh what's his name? Chris Wrights, the energy secretary. But Goldman Sachs said the same thing that more or less twothirds of pre-war oil, so call it whatever 15 million barrels a day is coming through. So, um I I think WTI oil is way too high. >> Way too high. >> Yeah, >> I think it should be 75 or 80, not 90. [clears throat] >> I completely agree. I do think however it's kind of shocking that it hasn't moved higher just because that's the as as um Pete pointed out that's that's the kind of market we're in which is headlines drive this immense amount of volatility and and it isn't the volume of the volatility as much as it is the um the swift changes. So I think we'll start to see oil come in. um traders are coming back from their long vacations on Long Island and in the Hamptons and uh I think we'll start to see liquidity return to the market in the next week or so and then we'll get more normal reactions because as you've been pointing out the whole show fundamentals are incredible. >> You know the manufacturing PMI at 54 plus um it's driven by the right factors. Uh you look at earnings growth, got earnings up 25% year to date, but stock prices have only gone up 12, which means stocks are actually cheaper than they were at the beginning of the year. Uh and m multiples are not out of line with um with the kind of earnings growth we're seeing at all. Technology companies, I think the multiples 21 times, the S&P is at about 20 times, but 30% of technology companies raised guidance. So, not only do you have strong earnings growth, revenue growth year-to- date is up 13%. That that's kind of amazing and I and your the guidance is very strong and we saw uh 2 to1 amongst S&P companies raising guidance. So, I think we'll we'll get back to the economyy's in great shape. The job market is solid. Uh and here we are uh in a in a bull market early years. Um, we're a couple years in and we're I think it ranks fifth out of the eight bull markets since uh 1966. So, we have a lot of room to run and I think the administration understands this. So, hopefully um we'll begin to see some progress in oil and um I don't think the Fed's going to raise rates. So, I think housing is uh safe but more abundant for now. So Edar Denny came on the TV show and um very bullish on profits. He agrees with me profits are the mother's milk of stocks. And he said that um we could get to 8,400 on the S&P 500 by year end. It's currently 7718. 8,400. >> What do you think? It's pretty cool forecast. by the way, on TV. [laughter] Great. >> He's got a lot of guts and he's a guy who's always, it seems like, very bullish, right, Jar? I mean, when we when we look at things, we we always like to see things the way that they should be. And I I think that uh you know, this rotation just shows you how how important it is to have that kind of a rotation where it's not just something that's driven by AI. It's not just something that's driven by technology. we're we're having a very significant rotation from different sectors constantly it seems like almost on a daily basis. So, I think that with with that kind of a market and if things go well at all when it comes to Iran and and when we're talking about the straits and and trying to get that oil through there, if that continues to be something where that's, you know, not going to be the biggest issue of the day, um we have a market that very much I would agree it's going to be well over 8,000. Um 8,400 seems like a lot, but um you know what, things can happen. And and we've gone through this earning season, it has been absolutely extraordinary, guys. I mean, Nancy, you're so right. I mean, they they they absolutely have crushed it. And they're the guidance has been for the most part unbelievably strong. So, you know, people are so so hard on the AI storyline and yet we're still seeing a lot of those stocks doing very very well that are attached to the AI story. >> We're in a boom. We are in an economic. It's the greatest story never told. We're in a boom. >> Now, the media doesn't want to tell the story because they're political and they hate Donald Trump. Blah blah blah. The reality is we're everything is clicking. >> Consumers are clicking, businesses are clicking, profits are clicking, manufacturing is clicking, construction is click. We have not had this in 25 years. We got to go back to the '9s. That's what we have to do. No [clears throat] one realizes it. Or maybe some people do. I'm just saying you won't read about it. But look at this. This is what's happening. Why couldn't the S&P can go to 8,400? I don't care. I mean, whatever the, you know, longer term horizon, stock, you you got to be in stocks, not bonds, stocks. >> Yeah. And I I think we've we've drawn the analogy to the 90s for about four years now. The the end of the 90s. [laughter] Yeah. Um that's another story that we'll talk about another time. But it was a very different environment. And I think you know if you if you listen to chairman wars he has channeled his inner Allan Greenspan [clears throat] and you know if you think about um what Greenspan did well a he didn't talk very much and when he did none of us knew what the hell he was talking about anyway and then and then he had you know the the understanding that productivitydriven growth was disinflationary. We're above trend uh for the last 5 years or last 7 years in productivity from the 2019 2000 to 2019 um baseline. Uh so if you look at if you look at that and you say what are we hearing from the companies we listen to all the calls at Laugher Tangler and what we're hearing is it's spreading. So to to Pete's point, it's not just technology companies. They're providing the solutions, but we're hearing from industrials and financials and pharmaceutical companies, how they're using AI and how it's improving margins and growth and new product development and client service. So rather than focus on job losses, which >> by the way, guys, new business apps were up over five, I think close to 600,000 in July alone. So, you've got good jobs numbers, people starting businesses that'll be fueled by AI. This is a technological revolution, an economy in transition that will change the way we live and do business um for for decades or forever. Uh and so I think it's hard to un it's hard to bet against that. Um and the last thing I'll say is Michael Bur, the big guy that's betting against it, owns Lululemon, which was down 20%. He's going to buy more. So, I don't get how Lululemon, >> who is this guy? Who's this guy? [laughter] >> The great short or the great whatever it was called, you know, probably Pete. But, so Lulu is a a sell or a buy and Nvidia is a short. So, these guys that grab the headlines, to your point, Larry, um I would not listen to them. >> He's crazy. No, [laughter] he's crazy. We have the lead. >> We're whooping China. We have the lead. That's correct. >> Yeah. And I know there's some talk about the data centers. Data centers are helpful to communities. >> I guess you have to work you work with the local. These are the factories of old. In other words, it's like saying in 1895 or 1910, I can't you won't build a smoke stack factory. You're not going to build a car factory. Yes, you are. You're going to build it even though it may not be pretty and it may not not, [snorts] you know, it does spew forth smoke, but the fact is we built them. >> We built them. That was our industrial engine. We're doing the same thing now. Data centers don't even they they figured out how to circulate their water. They figured out how to circulate their power. They pay more in taxes so you can cut property tax. These are the factories. That's the analogy that you have to make. And it will not be stopped. And all the Chinese can do is try to imitate us. They don't have an innovative, creative bone in their body. Those little Marxist socialist. [laughter] Not. They have nothing. They have nothing. >> True that you say that. [laughter] >> All they do is try to imitate and they're always going to be a year or two behind. Come on. I had Michael Katzio on the TV show, the techy guy in the White House. He's a good kid. Really good kid. He said, "We're doing fine. We're doing great." And the head in the video was he was at that innovation thing at G20. He was in good spirits. We're not going to stop this. We're going to keep going. This socialist crap that's coming out, the DSA. They're going to lose. You wait and see. The midterms is the greatest story never told, by the way, is how the Democrats are going to get whooped in the midterms. You wait and see. Track me on this. I'm telling you, there's an economic boom. Nobody wants socialism. Nobody wants Elsai. Nobody wants Hassan Nobody wants anti-semitism. And the stock market's going to reflect that. The stock market is telling us how good America is. That's what it's saying. I know it's profits and all that. It's also saying America is doing great. >> I totally agree with what you're saying, Larry. And and I'll I'll I'll even add to that. How about the fact that people want to they have all these surveys, right? and they survey a thousand people. A thousand people. That is not enough people to do the survey. And and yet they that's what they feed us. And then they tell us, well, 37% of them say that the grocery bills are higher. Well, that tells me that 63% didn't say that. And you know, when you look at that and you and you say to yourself, you know, that the data that that people from a measure standpoint is what people do on the surveys, it's how people feel. And it's a very small group of people that they're looking for on the negative side of things. And yet that comes out as something that's going to be driven by the commentary of that that whole thing. But the reality is all you got to do is look at the true numbers. And what those numbers are showing us is this market is on fire. And that's why guys like uh Ed are looking for the S&P to go to 8,400. Does it get there? It might. But uh but you know what? It it's definitely been on a great path to the upside. You know, year to date, the Shanghai Chinese index minus1%. The Hang Sang Chinese index 0.1%. And by the way, India is no better. The India's Sensex 30 minus 10%. India is just pathetic place. They should be doing so well and they don't do so well because they're over. I'm just saying we're doing great. Year to date, our S&P is up 12.8%. >> [clears throat] >> Boom. Anyway, let's take a break. [music] >> Now, back to the Larry Cuddlo show. >> Nancy Tangler, CEO and chief investment officer of Laugher Tangler Investments, and Pete Nagarian is co-founder of Market Rebellion and Option Monster. Um, Nancy, is anybody worried about interest rates, Fed policy, any of that stuff? I actually don't think you should be. Um, if you look at Goldman Sachs did a study and they found no correlation between interest rates and stock price performance. The '9s confirms that. What matters is rate of change and why rates are ch uh why rates are rising. And in this environment, we think it's because of growth. So, use the weakness and the volatility that Pete's been talking about to to add to high quality holdings. And we think you still want to be long this market for the next 3 to 5 years. You know, I talked to Scott Besson about this at the G20 when I interviewed him, and he agreed the the rise there has been a rise in in bond yields, but it's real interest rates because of a growing economy, >> right? >> Not something to be afraid of. I mean, I don't know. The Fed the Fed might snuggle up by a quarter of a percentage point. I don't know. I don't think any of that stuff matters. But >> who cares? >> Yeah. The rise in rates is is being driven by the rise in the economy, which is fine. And that is a 1990s thing, by the way, where I think bond yields got to I don't know, there were 6%, but the economy% >> 8% between five and eight during the the '9s. Yeah. Doesn't matter. >> Cool. I like it. Pete, what what's the best strategy? Um, I think the the best strategy is just to continue to be very disciplined because the markets are going to show you some great trading days as well as some pullback trading days, but the absolute direction is to the upside as both of you are talking about. And, you know, it's a really interesting thing. I mean, when when we when we talk about the Fed and and how they're viewing things and Christopher Waller was out there talking about, you know, inclined to be supportive of things and and and it's it was very interesting how we've shifted back and forth from that that uh that that CME tool that gives us the idea of where we stand right now. Are we are we going to raise are we going to stay, you know, put here as a pause or as the president would like to see, maybe a cut. So, um, you know, the president points out the fact that he'd like to see that cut and and I don't think we're going to see that, but I do think that we're going to see a pause, um, as we go forward. So, that that should be pretty interesting. I don't think we need to raise rates by a quarter, though. I I just don't understand why we have to do that. >> All right, then we won't. It's okay. If you don't want to do it, we're not going to do it. Nancy Tangler, thank you. Pete Nagarian, thank you