Speaker 1: We are going to continue to try to make sense
Speaker 1: of the economy right now, of the markets in the
Speaker 1: midst of a lot of chaos, a lot of noise
Speaker 1: in the media, a lot of noise from naysayers as
Speaker 1: well as always on this podcast.
Speaker 2: We're just going to try to get you the truth.
Speaker 2: That's what we do here On the Truth with Lisa Booth.
Speaker 2: So today we'll have someone on.
Speaker 1: Who I trust, who I turn to for advice, who
Speaker 1: when I see him on TV I stop to listen.
Speaker 1: His name is Charles Pain. You know him as the
Speaker 1: host of Making Money with Charles Pain on Fox Business.
Speaker 1: But besides that, he doesn't just play a financial expert
Speaker 1: on TV. He's a veteran in the industry. He started
Speaker 1: his time on Wall Street in nineteen eighty five. In
Speaker 1: nineteen eighty one, he started Wall Street Strategy as a
Speaker 1: stock market research firm. So this is the guy who eats, sleeps,
Speaker 1: and breathes this stuff for a living.
Speaker 2: He brings a wealth of insight to the table.
Speaker 1: So we're going to dive in to get his take.
Speaker 1: Dive in on President Trump's tariff strategy, it's impact on
Speaker 1: the markets and the economy, and what it means for
Speaker 1: investors in both the short term and the long term.
Speaker 1: I mean, most importantly, I'm gonna ask him what should
Speaker 1: you do? What should we all do right now as
Speaker 1: the markets continue to move and to shake. Plus, we'll
Speaker 1: explore his journey to television and also his latest book,
Speaker 1: Unbreakable Investor. I've always wondered how did he jump from
Speaker 1: Wall Street to television, So we'll dig into all that
Speaker 1: with my friend and colleague Charles Pain.
Speaker 2: Well, Charles Pain, it's an honor to have you on
Speaker 2: this show. Obviously, there's a lot of chaos.
Speaker 1: Going on right now, and I always stop and listen
Speaker 1: to you when you are on TV because you are calm,
Speaker 1: You're measured, and we need that and we need your
Speaker 1: wisdom right now. So it's an honor to have you on.
Speaker 1: I really appreciate you making the time.
Speaker 3: Thank you, Lisa. You know you've always been one of
Speaker 3: my favorites.
Speaker 1: Well, I feel the same about you, and you're so
Speaker 1: smart and like you don't I don't think i've ever
Speaker 1: seen you don't freak out, which is probably why you've
Speaker 1: been so successful in all this. But also what we
Speaker 1: need in this current environment, I guess like, Okay, so
Speaker 1: sort of just big picture. Could you sort of give
Speaker 1: us some perspective. What do you see right now when
Speaker 1: you're looking at the markets and you're looking at the
Speaker 1: economy right now.
Speaker 3: And it's interesting because there are two separate things right now.
Speaker 3: You know, in Wall Street, there's there's these things that
Speaker 3: call soft data, mostly surveys, and then things called hard
Speaker 3: data like corporate earnings reports and things like that. And
Speaker 3: so what's really amazing to me is this this phenomenon
Speaker 3: that we're living through right now. We've never seen anything
Speaker 3: like this. It's the amount of negative news stories that
Speaker 3: have been put out there. It supersedes nine to eleven,
Speaker 3: supersedes the global financial crisis, supersedes all kinds of all
Speaker 3: kinds of really much more serious issues struck global financial issues.
Speaker 3: And so we've been set up, the market has been
Speaker 3: set up sort of to be on this nervous perch
Speaker 3: because Lisa, we have a correction when the market pulls
Speaker 3: back ten percent on average every year in the last
Speaker 3: one hundred years, We've had one hundred and five of
Speaker 3: them something like that. We have corrections when the market
Speaker 3: pulls back twenty percent almost every four to five years,
Speaker 3: five to six years in that area. So all this stuff.
Speaker 3: Typically coming into the year, people would have said, we're
Speaker 3: kind of due for these pullbacks or corrections, but they
Speaker 3: have fanned of flames of fear and really, listen, be honest,
Speaker 3: it's all about anti Trump media agenda. So that's the backdrop.
Speaker 3: Everyone's nervous, everyone's more afraid than normal, and that means overreactions,
Speaker 3: and it's been mostly overreactions to soft data. We got
Speaker 3: the job support came in better than expected. It doesn't matter.
Speaker 3: The next one is going to be bad. This morning
Speaker 3: we got Delta Airlines great earning support. Don't worry, they're
Speaker 3: afraid to give us. Guy, it's going to be bad
Speaker 3: in the future. So this is what we're dealing with.
Speaker 3: And unfortunately, when you get these things, they become sort
Speaker 3: of a snowball, and they can become a boulder salt.
Speaker 3: Data can become hard data when everyone gets afraid to
Speaker 3: become self fulfilling. And so yet I freak out over
Speaker 3: the way this thing has been messaged, but I know
Speaker 3: it's been deliberate. And what I don't like, Lisa, is
Speaker 3: that I think people who sell in a panic, particularly
Speaker 3: taking losses, I think they've been regretted a year from now,
Speaker 3: three years from now, five years from now, and so
Speaker 3: I'm really spended by the coverage. Listen, obviously you want
Speaker 3: to talk about risk anytime someone wants to do what
Speaker 3: President Trump is talking about, which is sort of up
Speaker 3: ending a system that's been in place for a while.
Speaker 3: But while it's been in place, we have our foundation
Speaker 3: beneath us has been eroding, you know.
Speaker 2: And that's the thing is right, like we're saying, which
Speaker 2: is why.
Speaker 1: I wanted to have you on the show, and which
Speaker 1: is why you're so good at this is being able
Speaker 1: to kind of like look deeper into everything and really
Speaker 1: you know, to try to get an honest assessment of
Speaker 1: what's really going on right now.
Speaker 2: And so with all that, you know.
Speaker 1: It's hard for people like me who don't do this
Speaker 1: for a living of trying to figure out like how
Speaker 1: bad are things right now? How manufactured is it? You know,
Speaker 1: and so how how bad You don't give us some perspective,
Speaker 1: how bad are things are?
Speaker 2: They bad? I know, you kind of got into the
Speaker 2: soft data and the hard data.
Speaker 3: That's the irony. That's the irony. They're not bad yet, right,
Speaker 3: So the market is building in a worst case scenario
Speaker 3: and this is why it's again it's frustrating because sometimes
Speaker 3: the markets can can create a worst case scenario. Give
Speaker 3: you an example, coming into the year. For the last
Speaker 3: couple of years, the top ten percent of Americans have
Speaker 3: been doing fifty percent of the shopping because most families
Speaker 3: are in their own personal recessions already. That's why we
Speaker 3: got the election outcome that we got. But as the
Speaker 3: market pulls back those top ten people a percentage rather
Speaker 3: even though they're well off, they're going to pull back
Speaker 3: their spending and so you may see you know, more
Speaker 3: recessinary science and future data. Again that's manufactured by the
Speaker 3: fact that they didn't run out of money, it's just
Speaker 3: that they're becoming antsy. So this antsiness can create a problem.
Speaker 3: But if you say, at this very moment, what data
Speaker 3: can I point to this as the economy is a
Speaker 3: bad shape. None, I can point to a lot of
Speaker 3: data that can show that, you know, we were weakening,
Speaker 3: that people have spent maxed out their credit cards and
Speaker 3: things like that. But as Americans, we live with maxed
Speaker 3: out credit cards, right, Some people do that for the
Speaker 3: entire lives. And that's the frustrating part. That's the guessing part. Unfortunately,
Speaker 3: the markets are are right now reacting negative, negatively to anything.
Speaker 3: And there's an old saying on Wall Street selling the
Speaker 3: gas selling, it's sort of sometimes you sell because the
Speaker 3: person next to you sold, and then the person next
Speaker 3: to you was sell. It's it's it's it's the same
Speaker 3: thing on the upside. But you've seen markets where they
Speaker 3: just go up and go up and go up, and
Speaker 3: people chase them because, you know what, they think they're
Speaker 3: going to keep going up. So this is an irrational
Speaker 3: emotional period for the market where we don't have all
Speaker 3: the answers and the default is to sell first, ask
Speaker 3: questions later, or get answers later.
Speaker 1: Yeah, I think the issue, you know, So okay, so
Speaker 1: I see what President Trump is trying to do in
Speaker 1: the long term in bringing manufacturing here to the United States,
Speaker 1: trying to make us more self reliant, self sufficient.
Speaker 3: You know.
Speaker 1: But the issue is time on a lot of these things,
Speaker 1: right like even you know, I mean, you know, this
Speaker 1: will probably be less complicated than even looking at bilateral
Speaker 1: free trade agreements, but you know those can average around
Speaker 1: one point five years to develop through period of time
Speaker 1: even manufacturing plants getting them running, even if you retrofit.
Speaker 1: It takes time, you know, so we don't have as
Speaker 1: much time, especially Republicans looking ahead.
Speaker 2: At the midterms.
Speaker 1: You know, he did promise this golden age in his term,
Speaker 1: so can can he bake some of these long term
Speaker 1: changes without sacrificing sort of this this short term, this
Speaker 1: four year period of golden age?
Speaker 3: You know. I mean, listen, if you were to build
Speaker 3: the world's most magnificent skyscraper, first should have to dig
Speaker 3: a big hole for the foundation. You know, it's it's
Speaker 3: it's I think that what they have to do. And again,
Speaker 3: this is where it's interesting to study William McKinley's presidency.
Speaker 3: So I think they just have to get the ball rolling.
Speaker 3: Uh uh. You know, we don't have to change have
Speaker 3: change the entire thing overnight. It's sort of unrealistic to
Speaker 3: think all these factories will be built in the next
Speaker 3: two to four years. But we can see the permitting,
Speaker 3: We could see some of the cranes put in place
Speaker 3: right now. We've been you know, America's worst problem right
Speaker 3: now is that we can't we don't we can't accept
Speaker 3: any pain whatsoever. If it's emotional pain, you can you know,
Speaker 3: go online or get an app. You know, listen to
Speaker 3: ocean music. If it's physical pain, you could pop a
Speaker 3: pill or smoke something. We don't. We don't even understand
Speaker 3: the notion, not even to lose weight anymore. Right, you
Speaker 3: don't have to go to the gym. A duke crunches.
Speaker 3: So we don't even understand that issue. And it's really
Speaker 3: going to hurt us longer term because they're going to
Speaker 3: be something other things like you know, when it comes
Speaker 3: to military uh uh and Taiwan eventually having to protect them.
Speaker 3: You know, I don't think we'll be able to be
Speaker 3: up to snuff to do it. But so messaging is
Speaker 3: important for Trump and a Trump administration. And but when
Speaker 3: people tell me we can't build a factory over nine ID,
Speaker 3: I know we can't. That's not the point. The point
Speaker 3: is China. Look up, Look up Google, if you get
Speaker 3: a chance, new cities in China. They're building cities. They
Speaker 3: they're completing the tallest bridge in the world. That just
Speaker 3: the things that're going so magnificent. The only thing that
Speaker 3: we build that's magnificent right now our football stadiums. We
Speaker 3: build great football stadiums, right, but those aren't We're not
Speaker 3: We're not investing in our children's futures. We're not investing
Speaker 3: in our own futures. Since two thousand and nine, our
Speaker 3: country made a decided shift. We're going to become in
Speaker 3: this nation. It's called financialization, and everything was going to
Speaker 3: be about money, making more money, all these new fangled
Speaker 3: products from Wall Street. And that's essentially what we've done.
Speaker 3: We've created four economic classes, the educated elite. The next
Speaker 3: class are the barista class that served them. We have
Speaker 3: a service economy all while we got a few blue
Speaker 3: collar jobs left. And then after that, I call it
Speaker 3: the play catered poor. They get enough government assistance that
Speaker 3: they don't rebel against the system. That's unsustainable. What we're
Speaker 3: talking about, there's unsustainable. That's how great empires in the
Speaker 3: past have fallen down right in part so I get frustrated.
Speaker 3: Someone said, we can't build a factory of a night. No,
Speaker 3: we can't, but we can. We can put a stake
Speaker 3: in the ground tomorrow. We can do the groundbreaking tomorrow.
Speaker 3: We can we can sign off on all the regulations.
Speaker 3: In fact, we need to get rid of all these regulations,
Speaker 3: these barriers. Right. We can do those sort of things
Speaker 3: and get the ball rolling. I think if Republicans can
Speaker 3: show that the ball is rolling, that that's what they
Speaker 3: need to do. You know, maybe by the midterms. It
Speaker 3: certainly of the four years, and we'll have some actories
Speaker 3: built again. We built some hellified football stadiums in less
Speaker 3: than four years.
Speaker 1: You know, why do you think President Trump is doing this?
Speaker 1: You know, what do you think is overall objective?
Speaker 3: Is?
Speaker 2: How do you see it?
Speaker 3: Well? I do a special report once a week. I
Speaker 3: do I write every single day for my clients, but
Speaker 3: I do one a weekly called Pain's Perspective. It is
Speaker 3: usually twenty pages long. And this one I featured in
Speaker 3: a one ad that Trump had taken out in the
Speaker 3: New York Times in nineteen eighty seven that said, talked
Speaker 3: about our defensive our defense preparedness, and he said, the
Speaker 3: only reason we haven't done it as a nation is
Speaker 3: we don't have the backbone. I mean, think about our
Speaker 3: conversation already. We immediately talk about how Republicans can get
Speaker 3: re elected. Well, if that's the only thing our politicians
Speaker 3: are focused on, will never be prepared because that means
Speaker 3: politicians have to go to DC and bring back home
Speaker 3: a bridge to nowhere so they can get re elected.
Speaker 3: No one has backbone. We can't even go to a
Speaker 3: two week correction in the stock market without people saying
Speaker 3: this is the end. So he's been talking about this
Speaker 3: for decades. For decades, he's on record talking about the
Speaker 3: unfair treatment of America. But by the way, this is
Speaker 3: mostly our fault, though we've allowed it to happen. And
Speaker 3: so I think he's doing it because he sincerely believes
Speaker 3: that we are extraordinarily vulnerable, and that this perch that
Speaker 3: we sit on is sitting on really just its thin ice.
Speaker 3: It feels good, but it probably felt good to Great
Speaker 3: Britain in the late eighteen hundreds when they of the
Speaker 3: preeminent nation, and to the Portuguese, and to the Habsburgs,
Speaker 3: and to Spain and who are whoever else at any
Speaker 3: given time was the pre eminent nation in the world.
Speaker 3: But those periods generally last for one hundred years. We're
Speaker 3: a little bit over one hundred years, so our expiration
Speaker 3: data is coming up. Unless we do something about it.
Speaker 2: We've got more of Charles pain.
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Speaker 1: I think President Trump thrives in chaos and uses chaos
Speaker 1: as a leverage, you know, of the other side wondering
Speaker 1: what is he going to do?
Speaker 2: You know, But then.
Speaker 1: Alternatively, in that chaos right now is obviously like setting
Speaker 1: off the markets and setting off panic. And so you know,
Speaker 1: I wonder how much laying out just some clear objectives
Speaker 1: of like here's why we're doing this, this is like
Speaker 1: what we're gonna get from it would sort of calm
Speaker 1: nerves and jitters.
Speaker 3: Well, I think he's done that, but you know, he
Speaker 3: got to be. He's got to be as a It's
Speaker 3: an interesting thing, you can't you know, a long he
Speaker 3: mentioned tariffs every campaign stop. He said, I'm gonna go
Speaker 3: out to China every campaign stop. In fact, everything Trump
Speaker 3: has done so far he promised he would do. He
Speaker 3: promised he would do this. Maybe we're shocked that a
Speaker 3: politician lived up to the promises. Maybe we underestimated what
Speaker 3: it would mean, but he did promise this. Uh, and
Speaker 3: so he's doing it, and he's got to make sure
Speaker 3: that he's not letting the mainstream media in America manipulate
Speaker 3: him to the point where it weakens his bargaining position.
Speaker 3: So last Friday last week, rather after we announced the
Speaker 3: initial the additional tariffs on China, they immediately announced tariffs
Speaker 3: on US. One smart Wallstree firm said the only reason
Speaker 3: they did that was to make the markets go down.
Speaker 3: And then, of course, the next day China issued to
Speaker 3: communicate saying the markets have spoken. In other words, hey America,
Speaker 3: look at your markets. They're telling you to back off.
Speaker 3: America's Americans cannot live for the stock market. It is
Speaker 3: so dumb for the average person out there to be
Speaker 3: concerned about the market going up every single day and
Speaker 3: they don't have any money in a bank. It's ridiculous.
Speaker 3: We already lived in this sort of new quasi patriotsism
Speaker 3: of let's keep the GDP higher by staying maxed out
Speaker 3: in debt delinquency. Don't know how our kids are going
Speaker 3: to college. But the economy was good, the GDP number
Speaker 3: was solid. That's not our job, you know. We have
Speaker 3: We have a responsibility to our families and to ourselves,
Speaker 3: and we spend too much money, to be quite honest
Speaker 3: with you, he was particularly jumped from China in the
Speaker 3: first place. U and so he's got to be careful.
Speaker 3: You know, he's he's doing the broad stroke stuff. He
Speaker 3: has other folks like Besant out there. I think I
Speaker 3: like to see Lutnick and Naviarl sit down. I like Greer.
Speaker 3: He doesn't speak a lot. I think I don't know
Speaker 3: if he's bashful or whatever. Besson's been on air a lot,
Speaker 3: Steven Myron. Those are good people to get out there
Speaker 3: to sort of articulate this. But again, Trump is negotiating
Speaker 3: this and he already knows that the media doesn't like him.
Speaker 3: China knows the media doesn't like him, so he can't
Speaker 3: be manipulated too much by trying to you know, again,
Speaker 3: this morning, when Delta Airlines earnings came out, all of
Speaker 3: fine ancial media, I was like, they're not going there.
Speaker 3: They're not going give us guidance. They're so afraid. Yeah,
Speaker 3: but what the news was was that the earnings were phenomenal,
Speaker 3: that people were taking planes. That was the news. So
Speaker 3: while people are concerned about the market, they haven't yet
Speaker 3: stopped traveling. They haven't yet stopped doing things that they
Speaker 3: normally do. Now they're scared enough, eventually they will and
Speaker 3: that's the danger. So you know, it's a narrow it's
Speaker 3: a narrow Trump has a very narrow area where he can,
Speaker 3: you know, do one or two. His main thing right
Speaker 3: now is he's got to hold the line. He put
Speaker 3: out a teriff plan that no one anticipated, myself included,
Speaker 3: and I just acquitted it last week when it came out.
Speaker 3: The only thing I could think of was his first term.
Speaker 3: You might remember this, Lisa, when he dropped Moab and
Speaker 3: it's the Mother of all bombs. So and that was
Speaker 3: the most non most lethal, non nuclear bomb in the
Speaker 3: history of mankind. No president was thought about using it before.
Speaker 3: He immediately dropped in on Isis and has sent a message.
Speaker 3: This is sort of an economic mo ad. There's not
Speaker 3: a lot of room to negotiate. This won't go tip
Speaker 3: for tet. There won't be a whole lot of meetings.
Speaker 3: We won't go to Paris and then a month later
Speaker 3: go to Brussels, then a month later go to Tokyo. And
Speaker 3: we're not gonna have a bunch of diplomats nodding and
Speaker 3: shaking their hands in a green to meet again. No,
Speaker 3: this is it line in the sand. What are you
Speaker 3: gonna do? The rest of the world.
Speaker 1: I guess the lead part that confuses me is, so
Speaker 1: I get like reciprocal tariffs. Obviously that sort of speaks
Speaker 1: for itself. I get bringing manufacturing here, but like, how
Speaker 1: do you equalize trade deficits?
Speaker 3: Ultimately, I don't think that's the goal, but yeah, what
Speaker 3: they're saying is that the people have to understand they're
Speaker 3: official tariffs and there are non tariff barriers. Now. On
Speaker 3: a recent show, I laid on about twenty non tariff barriers,
Speaker 3: but Scott Myron, who's part of this negotiating team, said
Speaker 3: that there are a thousand. We don't know about them.
Speaker 3: They're tough. You know. Let's say you bring a product
Speaker 3: into a country. Let's say you bring a product into America.
Speaker 3: You want to sell in into America, a blender, but
Speaker 3: New Jersey has a certain law that will stop it
Speaker 3: from going in whatever that was made of a certain
Speaker 3: plastic or California. You know, it's so nuanced, is so
Speaker 3: marbled into these nations ways of stopping us from being
Speaker 3: able to compete in their countries. They decided the only
Speaker 3: way they could figure it out is, you know, using
Speaker 3: trade deficits. Obviously, the bigger nation that a more powerful
Speaker 3: economic nation probably will have a higher trade deficit. But
Speaker 3: they also think hidden in there is the only way
Speaker 3: to sort of figure out just how long spare the
Speaker 3: system is because no one truly knows. All they know
Speaker 3: is that they're barriers beyond tariffs that stopped us, and
Speaker 3: so it's not fair trading, it's not free trading. And
Speaker 3: that's why we don't sell any beef in Australia, but
Speaker 3: they sell billions in America. So these things are nuanced.
Speaker 3: And again it's not a tactic that I necessarily or
Speaker 3: I wouldn't have thought of it. I'm not sure I
Speaker 3: would have used it, but they did use it, and
Speaker 3: they set the bar high. And so this is not
Speaker 3: a game. The rest of the world understands. This is
Speaker 3: not a game. You can try to go tip for tet.
Speaker 3: But there's a reason everyone wants to bring their products here.
Speaker 3: We have the wealthiest consumers in the world, and if
Speaker 3: you want to make money, you sell it here. You
Speaker 3: can't sell it anywhere else. You can't you know, no
Speaker 3: one's going to buy it, no one can afford it.
Speaker 3: You can put it in a warehouse. These countries are
Speaker 3: in bad shape. China economically is and worse shape than
Speaker 3: Americans think they have been for a long time. They
Speaker 3: mismanaged the one child policy, they mismanaged COVID, they built
Speaker 3: a whole bunch of ghost cities. They're in trouble Europe,
Speaker 3: forget about it. They really just they have blown it.
Speaker 3: So with the open borders and the high taxes, lack
Speaker 3: of innovation, you know, they're in trouble. So we're coming
Speaker 3: from a position of strength, perhaps for the last time
Speaker 3: that we'll be able to come from a position of strength.
Speaker 1: Well, you know, it's interesting because if anyone was doubting
Speaker 1: the strength of America in both the global economy and
Speaker 1: just excess superpower, I think this shows we are the
Speaker 1: pre eminent superpower. And just like the you know, just
Speaker 1: this TERRORFF announcement, just the impact it has had on
Speaker 1: the global economy, I think sort of underscores what a
Speaker 1: powerhouse we as we are as a country. You had
Speaker 1: mentioned sort of China's weakness right now, will this bring
Speaker 1: them to the table or kind of like what would
Speaker 1: this trade war look like with China? And you know
Speaker 1: who has the upper hand in this?
Speaker 3: Well, we have the upper hand because we buy a
Speaker 3: lot of stuff from them. Yeah, you know, I mean
Speaker 3: they have some of our treasuries they can sell them.
Speaker 3: But all as you remember, this thing kinda doesn't have
Speaker 3: any any of our treasuries as a as a goodwill gesture.
Speaker 3: It's not altruistic. It's altruistic. It's it's the best treasuries
Speaker 3: to own in the world. So you don't want to if
Speaker 3: you don't want to, if you don't want those, get
Speaker 3: them from somebody else. There's a reason they want to
Speaker 3: buy that. There's a reason they want to own our farmland.
Speaker 3: There's a reason. And there's a reason they do business
Speaker 3: with us. We made China wealthy when China entered when
Speaker 3: Nixon went over there and Nixon and Kissinger, I think
Speaker 3: the average annual income for the average person in China
Speaker 3: was one hundred and fifty six bucks. This is the
Speaker 3: early seventies a person a year when they entered the
Speaker 3: World Trade Organization. They weren't much better on since then
Speaker 3: and using rules that favored them that even to this
Speaker 3: day treat them as an emerging nation, not the number
Speaker 3: two economy in the world. They've been able to take
Speaker 3: advantage and it's brilliant on their part. You know, Lisa,
Speaker 3: what a lot of people don't realize. With China and
Speaker 3: to a lesser extent with India is that they've always
Speaker 3: wanted to get even with the West. You know, China
Speaker 3: was the greatest economy, they were head of the most
Speaker 3: of the world for a long time. Technologically, they built
Speaker 3: the wall. They became an isolated insular nation because they
Speaker 3: wanted to. And so finally the British show up, and
Speaker 3: this is at the years of European you know, wars
Speaker 3: and wars and wars, and they say, hey, we want
Speaker 3: to trade with you. And initially the Emperor is like, what, no,
Speaker 3: we don't want to do it. But then you know,
Speaker 3: someone said, why don't we Why don't we trade with him?
Speaker 3: We could send in the world with these great things
Speaker 3: that no one else has, silk, jade, all of this
Speaker 3: beautiful stuff. So they start sending that out to Europe
Speaker 3: and in return they got silver, and they got so
Speaker 3: much silver that Europe sort of panicked, and eventually the
Speaker 3: British introduced this miracle drug to them called opium. So
Speaker 3: after a few years of getting the opium going in
Speaker 3: and the silver going out, the British showed back up
Speaker 3: and say we want you to open more ports. The
Speaker 3: Emperor says no, The British said we're not asking. The
Speaker 3: first Opium War, the Emperor calls up the troop. So
Speaker 3: guess what. Half of them are high on opium. And
Speaker 3: by the way, they hadn't been in a war in
Speaker 3: a long time. There's ships are that great technology they
Speaker 3: had fifty hundred years earlier. Didn't work. It was terrible.
Speaker 3: They got crushed. Had to open more ports. Same thing
Speaker 3: happened in another few years. We want more ports now.
Speaker 3: Second Opium War. China collapses to the point where they
Speaker 3: finally have what they call the Boxer Revolution. The Boxer
Speaker 3: Revolution wi all the peasants rise up the Chinese government.
Speaker 3: The emperor is so weak he has to ask Japan
Speaker 3: in the west for help. They give them help on
Speaker 3: economic terms that would make the mafia blush. After that
Speaker 3: was over, China became destitute, and of course a few
Speaker 3: years lady have Mao and the story goes on. So
Speaker 3: they have this long range thinking, this long ranch chip
Speaker 3: on their shoulders. And we're worried about the market being
Speaker 3: down for three days in a row. We can't win
Speaker 3: if we stay like this.
Speaker 1: We've got more in the markets. But first, Israel's still
Speaker 1: under attack. Missile fire has resumed from the hou Thias,
Speaker 1: has Bala and hamas enemy seeking Israel's destruction. Here in America,
Speaker 1: we cannot imagine living under constant threat of terrorism and
Speaker 1: rocket attacks. This is the reality in Israel. Parents taking
Speaker 1: their children to school, falling to the ground to lay
Speaker 1: on top of their small children, trying to comfort them
Speaker 1: as sirens blair. The next attack against Israel is happening
Speaker 1: now with little time to prepare, so we must act now.
Speaker 1: That's why I'm partnering with the International Fellowship of Christians
Speaker 1: and Jews to help provide life saving aid and security essentials.
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Speaker 1: can go online at support IFCJ dot org to give.
Speaker 1: That's one word support IFCJ dot org. I mean, Charles,
Speaker 1: you don't just play. I mean you're not playing a
Speaker 1: financial expert on TV. I mean you started your career
Speaker 1: on Wall Street in nineteen eighty five, nineteen ninety one,
Speaker 1: you started Wall Street strategies. I mean, you live, sleep,
Speaker 1: and breathe this stuff for a living. What are you
Speaker 1: telling cions right now?
Speaker 2: Like what I mean? People are turning to people like
Speaker 2: you and saying, what do we do?
Speaker 3: You know?
Speaker 2: So what's your advice?
Speaker 3: So let me tell you what's interesting? So you're right.
Speaker 3: I've been doing this for almost forty years, and in
Speaker 3: two thousand, the crash of two thousand was devastating. We
Speaker 3: were we were hanging by a threat for three years.
Speaker 3: I was so bad off that we had worked from
Speaker 3: home before anyone else even knew what it was because
Speaker 3: I couldn't afford an office. So we barely survived that.
Speaker 3: Then came the crash in two thousand and eight, two
Speaker 3: thousand and seven, two thousand and eight. This time clients
Speaker 3: didn't flee. They just held on. They said, Okay, we'll
Speaker 3: stay with you, We'll see what happens. Then came the
Speaker 3: COVID crash. You know what happened In the COVID crash,
Speaker 3: people were calling me, I want to buy, I want
Speaker 3: to buy. So over the last twenty five years, investors
Speaker 3: have learned that, you know, maybe you don't panic anyse
Speaker 3: sort of situations. So I'm asking them to do what
Speaker 3: they've been doing, not to panic. And you know, I
Speaker 3: was lucky in some ways, you know, I sold in video,
Speaker 3: we had I had them take profits on Nvidia near
Speaker 3: the top, volunteering near the top, Apple near the top.
Speaker 3: But we still have a lot of other positions that
Speaker 3: are that are down at this very moment. But we've
Speaker 3: been through this together for a long time and the
Speaker 3: majority of them want to know, just tell them when
Speaker 3: it's time to buy. So they're not panicking. But they
Speaker 3: read the scene newspapers, they hear the same stuff, and
Speaker 3: so the airwaves are filled with this doom and gloom
Speaker 3: stuff that it's hard to ignore unless you understand the
Speaker 3: history of the market.
Speaker 1: What's sort of like safe long term investments for people
Speaker 1: right now? If they're like, look, I kind of want
Speaker 1: to get involved right now, it's a good time to
Speaker 1: get in.
Speaker 2: What's what's smart?
Speaker 3: I mean I hesitate to use the word safe because
Speaker 3: any sad you can fit it any time. Bus I
Speaker 3: you know, here's a good rule of thumb. If a
Speaker 3: company's been in business for about one hundred years, more
Speaker 3: than likely they'll be in business for another one hundred years.
Speaker 3: It always, it always baffles me when people are afraid
Speaker 3: to buy a stock in a company that I say,
Speaker 3: you think they'll be around when you die? Who's going
Speaker 3: to die first? You Google? I mean you were metal.
Speaker 3: Who's gonna perish first? Uh? You know? Uh So I
Speaker 3: think the worst mistake, obviously is not being in the
Speaker 3: market is it's the greatest money create creating a machine
Speaker 3: creation machine in history, and you just never know what's
Speaker 3: going to be stuper duper hot. In the last five years,
Speaker 3: one of the hottest stocks that's been Brinker. You know
Speaker 3: what Brinker is is the parent company of Chili's. Have
Speaker 3: you gone to Chili's recently? Stock going up twelve five years? So,
Speaker 3: you know, I listen. I like exposure to rockets. I
Speaker 3: like for people have exposure to the Fourth Industrial Revolution.
Speaker 3: And by the same token, you know, home Depot is
Speaker 3: going to be here, Yeah, Walmart will be here. So
Speaker 3: you just have a mix of names in your portfolio,
Speaker 3: names that you know would be here forever, and then
Speaker 3: maybe a couple that you take a shot on that
Speaker 3: could be huge. You know, as we go into humanoid robots,
Speaker 3: as we go into more rockets, ships, more drones, So
Speaker 3: you want to have exposure to that kind of sexy
Speaker 3: stuff that sizzles but is volatile, and then basic stuff
Speaker 3: that's just going to be their payon a solid dibdend
Speaker 3: and go up. You know, every time I look at
Speaker 3: these solid names, they they don't gallop, but they get
Speaker 3: from point A to point B all the time, which
Speaker 3: is higher. And during the time that you own them,
Speaker 3: you still make You still make money through dividends. You
Speaker 3: get yourself a balanced portfolio like that you sleep at night.
Speaker 1: How'd you get into TV? So you know you started
Speaker 1: on Wall Street? How'd you find your way over to
Speaker 1: Fox News and Fox Business?
Speaker 3: So that's an interesting that's a good story, good question.
Speaker 3: As a kid, I lived on a army basis. My
Speaker 3: father was in the Army. One day I came home
Speaker 3: from school. My parents are separated. My mother's set were leaving,
Speaker 3: so we left this beautiful two story house in Fort Lee, Virginia.
Speaker 3: It was just an idyllic, wonderful place to live, a
Speaker 3: way to grow up. And we all moved me, my mom,
Speaker 3: and my two younger brothers to Harlem, which was the
Speaker 3: worst neighborhood in America at the time, and all lived
Speaker 3: in a room, and up to that particular moment I
Speaker 3: never thought about but there we were completely broke, destitute,
Speaker 3: all four of us living in a room. A few
Speaker 3: months later we got an apartment, but that first winter
Speaker 3: we had no heat or hot water. I was the oldest,
Speaker 3: So I just took it upon myself to help my
Speaker 3: mom and I did everything. I had, every kind of
Speaker 3: hustle you can imagine, from cleaning windows of stoplights with
Speaker 3: paper towns and windebts to a job at a bodega.
Speaker 3: And so I'm thinking, I need to make money, and
Speaker 3: I think we all equate Wall Street with money. So
Speaker 3: I started reading the journal, or trying to read it. It
Speaker 3: took me a few months to figure it out. It
Speaker 3: was tough back then. It was nothing but lines and numbers,
Speaker 3: and so I told my mom, I don't want to
Speaker 3: work on Wall Street. And so I just studied anything
Speaker 3: I could get. I bought my first mutual fund when
Speaker 3: I was seventeen. She had to co sign. I joined
Speaker 3: the Air Force, and in the Air Force, I bought
Speaker 3: my first stock, and by the way, it was a
Speaker 3: stock called MCI and the day who ran a company
Speaker 3: was Bill McGowan I think was his name. He was
Speaker 3: this hard charging, hard living kind of guy. Smoked like
Speaker 3: seven packs of cigarettes, drank thirty cups of coffee a day,
Speaker 3: and he was taking on the world's biggest company at
Speaker 3: and T I was I've always been drawn to Mavericks, right,
Speaker 3: people go against these David and Goliath stories. And the
Speaker 3: stock did well and I got out. I started working
Speaker 3: at Iff Hutton on the research side, which was no money,
Speaker 3: but I learned a lot, and then that became a broker,
Speaker 3: and as a broker, I had my own epiphany that
Speaker 3: the industry wasn't what I thought it was. I thought,
Speaker 3: you know, you go home, you find these great stocks
Speaker 3: for your clients, but it really didn't work that way.
Speaker 3: So I started my own research firm. So that's how
Speaker 3: I got into business. And then at some point early
Speaker 3: on I don't know how, but Wall Street the CNBC
Speaker 3: heard about me somehow, so they called me up and said, hey,
Speaker 3: can you come on. I came on. I started going
Speaker 3: on there and I met Neil Neil Kabuto, Yeah yeah,
Speaker 3: and so Neil goes over eventually leaves CNBC and he
Speaker 3: goes to this thing called Fox. At the time, I
Speaker 3: thought he was nuts. Yeah, at the time, the mark
Speaker 3: it was sizzling every time you go in a bar
Speaker 3: or restaurant. It was CBC. I'm like, what is this things?
Speaker 3: This Fox thing he's done, you know. And then they
Speaker 3: finally called me up. Neil wants you to come on
Speaker 3: his box. I'm like, oh boy, all right, and I
Speaker 3: come in. You know, I take the escalator down to
Speaker 3: the basement. I think that was the first studio down
Speaker 3: in the basement. I'm pretty sure that the table we
Speaker 3: were using had three legs. I think I was holding
Speaker 3: up my own with my knee. Yeah, the lighting was bad,
Speaker 3: and I'm looking at Neil the whole time, like, my man,
Speaker 3: you blew it. Of course he had not blown it.
Speaker 3: And eventually they asked if I would become a contributor,
Speaker 3: and then eventually I ended up with my own show.
Speaker 3: I love that.
Speaker 2: Also, I feel like Neil help me get my start
Speaker 2: as well.
Speaker 1: So I feel like I started doing Your Rold was
Speaker 1: one of the first shows I started doing at Fox.
Speaker 1: Because you know how it goes, It's like one show
Speaker 1: sees you and then the next book, like you just said,
Speaker 1: you know, you started going on there and then they're like, oh,
Speaker 1: you know so, and then it kind of has that
Speaker 1: snowball effect.
Speaker 2: I love that story. I didn't I didn't know all that.
Speaker 2: I love that.
Speaker 1: I feel your book right now and Breakable Investor is
Speaker 1: probably a good book for people to go pick up
Speaker 1: right now, give it given the current environment and right it's.
Speaker 3: Probably the ship book to pick up. And if you
Speaker 3: have it, it's a good time to read it.
Speaker 2: Yeah, what sort of insight before we go? What sort
Speaker 2: of insight can people get from it?
Speaker 1: Which I'm sure is very applicable to where we are
Speaker 1: currently and this environment.
Speaker 3: So it's my third book. And by the way, it's
Speaker 3: free if you go to Unbreakable Investor dot com. People
Speaker 3: just paid for shopping, shipping, and handling. Here's the first chapter.
Speaker 3: Lisa is dedicated to my grandparents who bought a farm
Speaker 3: in nineteen fifty two in Alabama and against all odds,
Speaker 3: and even now I get chilled and choked up thinking
Speaker 3: about what they had to sacrifice for that and the
Speaker 3: risk that they took on being a black family with
Speaker 3: a farm in nineteen fifty two in Alabama. And then
Speaker 3: the time the night writers will come whatever and they
Speaker 3: raise their family there. They never had indoor plumbing or electricity,
Speaker 3: but they raised their family there. They owned it, they
Speaker 3: had their own crops. And the main reason I mentioned
Speaker 3: that is I feel like we all have a responsibility
Speaker 3: to step up the foundation for future generations. So it's
Speaker 3: not about getting rich, but it's about creating a firm
Speaker 3: foundation and lifting it just a little bit more for
Speaker 3: the future generation so that their life they can chase
Speaker 3: their life's goals. And then in there, I've got chapters
Speaker 3: on the Federal Reserve, i have chapters on the Fourth
Speaker 3: Industrial Revolution. I have examples of how people confine stocks
Speaker 3: by things around them. For instance, when you go to
Speaker 3: buy food and you know, you have the screen pop
Speaker 3: up and they say you want to put you know,
Speaker 3: the tip and all that stuff. Yeah, people don't ever ask, well,
Speaker 3: one of they're publicly traded. Because I use this every
Speaker 3: day when I eat food, those kind of things. I
Speaker 3: teach people how to find these ideas on their own.
Speaker 3: Here's the great news. Every chapter I give you a
Speaker 3: test at the end of each chapter. I want to
Speaker 3: make sure you're learning. And that's why people peep the book.
Speaker 3: I'm telling you people love it.
Speaker 2: I love that Charles, I really appreciate you making the time.
Speaker 1: You're a busy man. Everyone go check out Charles on
Speaker 1: Fox Business. Making Money with Charles Pain. I really appreciate
Speaker 1: your insight. I just I really wanted to have you
Speaker 1: on because, you know, again, I feel like you just
Speaker 1: do such a good job of sort of like cutting
Speaker 1: through the noise of everything, and there's so much noise
Speaker 1: right now, and so just kind of like getting the
Speaker 1: heart of things, and so I feel like this was
Speaker 1: super helpful and also just interesting to learn more about
Speaker 1: your life story and kind of how you got started
Speaker 1: at Fox as well as just a friend of a colleague.
Speaker 2: So I really appreciate you making the time.
Speaker 3: Charles absolutely absolutely, Thank you so much. Lisa. I'm glad
Speaker 3: you thalled that.
Speaker 1: Was Charles Pain from Fox Business and Fox News. We
Speaker 1: appreciate him making the time to join the show. Appreciate
Speaker 1: you guys at home for listening every Tuesday and Thursday,
Speaker 1: but you can listen throughout the week until next time.