‘DEVASTATING’: Charles Payne issues stark warning to investors

‘Making Money’ host Charles Payne reacts to the hotter-than-expected PPI report, Bitcoin’s latest rally and tech stocks during an appearance on ‘The Big Money Show.’ #foxbusiness

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>> ENVIRONMENT FOR BRIAN. WELCOME TO “THE BIG MONEY SHOW”. JACKIE: STOCKS MOSTLY LOWER AFTER THE PRODUCER PRICE INDEX CAME IN HOTTER THAN EXPECTED. YOU SEE THE DOW HOVERING AROUND THE FLAT LINE, NASDAQ DOWN ONE 12:45%. JOINING US, MAKING MONEY HOST CHARLES PAYNE. WE SAW THAT HOTTER THAN

EXPECTED CPI REPORT, STEEP DECLINE IN RETAIL SALES NOT GOOD FOR THE MARKET, MORE LAYOFFS AS WELL. LET’S TALK ABOUT IMPLICATION FOR RATES. CHARLES: THE RATE IMPLICATION IS PUSHED FURTHER UP. WE WERE AT THREE RATE CUTS THIS YEAR IN THE COURSE OF ONE

POINT, 7 RATE CUTS OF THIS YEAR. THE IRONY OF IT, THE MARKET IS RALLYING GET. THE OCTOBER RALLY WAS SPARKED BY A SEMI VICTORY LAP, WALL STREET INTERPRETED THAT TO BE 7. THE MARKET RALLIES IN FRONT OF THESE MASSIVE RATE CUTS, NOW

THEY UNDERSTAND WON’T HAPPEN BUT THE MOMENTUM EVEN THOUGH THERE IS READ ON THE SCREEN, THE BIAS IS TO THE UPSIDE. WALL STREET IS IGNORING THAT AND FOCUSING ON THE NOTION THAT NEW HIGHS BEGET NEW HIGHS AND ANY REASON TO KEEP THIS GOING. TAYLOR: YOU COULD ARGUE

BITCOIN, 52,000, THE HIGHEST LEVELS SINCE DECEMBER 2021. WHEN THE ETFs WERE APPROVED OR YOU DIDN’T SEE THE BIG RALLY. NOW YOU ARE STARTING TO SEE IT. IT IS ON THE ETF NEWS? CHARLES: I HAD A GREAT INTERVIEW WITH MICHAEL SAYLOR. ONE OF THESE THINGS WHERE HE

TALKED ABOUT ECONOMIC ENERGY AND THINGS LIKE THAT. IT IS A TEMPORARY MOVE, IT IS SIGNIFICANTLY HIGHER. THERE WAS A LITTLE BIT OF INDUSTRY STUFF, A LOT OF FOLKS GET OUT OF IT. IT’S A BIG SPIKE. WE SEE MONEY POURING INTO THESE ETFs, GIVES THE STAMP OF WALL

STREET’S APPROVAL, WHETHER THAT IS TRUE DOESN’T MATTER. NOW THE SAME FIRMS A FEW YEARS AGO SAYING IT IS JUNK, IT IS GARBAGE, OFFERING ETFs. THAT’S A DIFFERENT KETTLE OF FISH. JUST GIVE AN EXAMPLE OF COIN BASE. THEY MADE LESS MONEY LAST YEAR THAN THE YEAR BEFORE.

THE FOURTH QUARTER, $905 MILLION VERSUS 600 MILLION A QUARTER BEFORE AND THE YEAR BEFORE THEY HAD PROFITS, A YEAR AGO, 557 IN THE SAME QUARTER, IF THIS IS THE NEXT RALLY, BITCOIN IS THE NUMBER ONE ASSET 8 TIMES. THREE TIMES IT WAS THE WORST ASSET.

TALK ABOUT HIT OR MISS, FEAST OR FAMINE. TAYLOR: IT WASN’T JUST PEOPLE GETTING INTO ETFs OR BEHIND BITCOIN, THAT IS AMAZING BUT CAN WE TALK ABOUT WHAT WE ARE SEEING? THE MARKET IS POISED IT TO RALLY. WE RECOVERED LOSSES WE SAW EARLIER TODAY.

THERE’S A LOT TO TALK ABOUT. THE LAYOFFS AND BAD NEWS AT THE MARKET. CHARLES: ONE OF THE UNDERPINNINGS, PEOPLE WHO ARE BULLISH, THE PRODUCTIVITY MIRROR, WE HAD SEVERAL MIRACLES IN THE PAST, ONE COINCIDED WITH THE TECH BUBBLE IN THE 1990s. SOME TIME, A EUPHEMISM FOR

LAYING PEOPLE OFF OR PAYING LESS MONEY BECAUSE THAT, THINK ABOUT LABOR COSTS, THE LAST REPORT WE HAD. PRODUCTIVITY IS MOVING IN THE RIGHT DIRECTION AND THAT IS AMAZING FOR THE CORPORATION’S BOTTOM LINES, IS THERE A MAINSTREET ELEMENT TO THIS THAT WILL BE DEVASTATING DESPITE THE

FACT THAT THE MARKET, MORE NOW THAN EVER THE STOCK MARKET IS NOT MAINSTREET. ALL OF THESE LAYOFFS, LOOK AT TECH COMPANY STOCKS THROUGH THE ROOF. TAYLOR: I’M EATING MY WORDS, THE SMALL-CAP TURNED POSITIVE BUT IN THE RUSSELL 2000 RESPONSIBLE FOR THOSE GAINS.

IT IS DOWN TODAY BUT HAS BEEN A PARABOLIC MOVE. WHAT IS IT WITH SMC I? CHARLES: IT IS A PLAY IN THE AI ARCHITECTURE. I SHOULD PLAY THE STOCK AS A TEENAGER, I HAD IT FOR SUBSCRIBERS FOR 5 YEARS AGO AT 70 BUCKS, THEN HAD IT LAST

YEAR, SOLD IT MIDDLE OF JANUARY. IT’S CRAZY WHEN YOU MAKE 50% IN TWO WEEKS AND ARE UPSET AND THIS GUY IS BEST FRIENDS WITH CEO OF NVIDIA COLLABORATING A LOT OF THINGS BUT THIS IS CRAZY PARABOLIC AND I WOULD ONLY TOUCH IT AS A TRAITOR.

I TRY TO BE DISCIPLINED, SORT OF UPSET, YOU SO NVIDIA TOO EARLY, MAKING THESE PARABOLIC MOVES, THE DAY THEY DON’T, IT IS DOWN 100 BUCKS A DAY. DID I MAKE A MISTAKE? LAUREN: TIME IN THE MARKET, NOT TIMING. CHARLES: THINK ABOUT THIS.

YOU ARE A NERVE FOR THIS KIND OF STUFF. A HANDFUL OF STOCKS LEADING THE MARKET, IT SHOWS THE TOP 5 STOCKS IN 1975. EASTMAN KODAK AMONG THEM. IT IS HARD FOR ANYONE TO BELIEVE EASTMAN KODAK IS ONE OF THE JUGGERNAUTS. EVEN THE JUGGERNAUTS RUN OUT OF STEAM.