LIZ: ALL RIGHT.
LET’S CALL IT ABOUT THREE
MINUTES BEFORE THE CLOSING BELL
RINGS.
WE ARE OFF SESSION HIGHS.
THE NASDAQ IS HAVING, FIVE
MINUTES.
THE NASDAQ IS HAVING ITS BEST
DAY SINCE MAY 27th.
THE DOW IS REBOUNDING FROM ITS
LOWEST LEVEL SINCE DECEMBER OF
2020.
WE NEED TO TELL YOU, WE
MENTIONED BROAD-BASED.
ALL 11 S&P SECTORS ARE UP RIGHT
NOW.
WE HAVE A VERDANT STOCK MARKET
WITH LOTS OF GREEN ARROWS ON
THIS SUMMER SOLSTICE SESSION.
IF PER CHANCE YOU HAVE IS CREAM
ON YOUR MIND, OUR "COUNTDOWN"
CLOSER WITH HIS SCOOPS WHICH
HAVE CHOCOLATE FLAVORING.
WE HAVE DAVID HARDEN.
DAVID, WHAT DO YOU MAKE OF THIS
RALLY THAT WE’RE STILL LOOKING
AT THAT IS STILL PRETTY DARN
POWERFUL IN FINAL MINUTES OF
TRADE?
A FLASH IN THE PAN OR SHORT-TERM
BOTTOM AND REAL UPTURN?
>> ENJOY IT.
SUMMER HAS STARTED.
ENJOY IT.
I DON’T THINK IT WILL LAST.
LIZ: I KNOW YOU HAVE A BASE ACE
THE RECESSION IS COMING IN THE
FIRST QUARTER OF 2023, BUT COULD
SHOW UP AS EARLY AS 2022 IN THE
FOURTH QUARTER.
WHAT ARE YOUR NUMBERS YOU’RE
LOOKING AT HERE AND WHAT STOCKS
DO YOU SAY BUY NOW TO BENEFIT OR
AT LEAST BE SAFE?
>> WELL, AS WE ALL KNOW GAS
PRICES ARE NOT GOING DOWN.
WE’VE SEEN THAT IN AIRLINE
PRICES AT THE PUMP, ET CETERA.
FOR ME YOU NEED TO HAVE SOME
EXPOSURE TO ENERGY.
I THINK TWO OF THE BEST IS
EXXONMOBIL IS DOING GREAT.
IT HAS NEARLY A 4% YIELD.
THAT IS A GREAT YIELD IN TODAY’S
ENVIRONMENT.
STILL, AND ONLY A 15 PE.
IT IS STILL RELSIEVE TIFF CHEAP.
ENERGY IS DOING WELL.
ANOTHER ONE IS CHEVRON.
BOTH OF THOSE COMPANIES ARE VERY
SIMILAR POSITIONED AND I THINK
THAT’S A POSITION YOU MUST HOLD
THROUGHOUT THIS SUMMER.
LIZ: YOUR SCOOPS, THOSE TWO PLUS
MCKESSON AND HERSHEY.
THESE ARE ALL NAMES THAT FEEL
LIKE GOT TO HAVE.
CERTAINLY WITH HERSHEY, YOU GOT
TO HAVE HERSHEY CHOCOLATE.
>> IF WE’RE GOING TO INTO
RECESSION I TELL PEOPLE WE’LL
EAT MORE CHOCOLATE.
ALL THESE COMPANIES DO WELL WITH
REALLY STRONG DOLLAR.
WITH THE INTEREST RATES RISING,
FED RAISING INTEREST RATES IN
JULY 75 BASIS POINTS, FACE IT
YOU WANT YOUR MONEY INVESTED IN
VERY QUALITY, HIGH CONVICTED
EARNINGS TYPE OF COMPANIES AND
THESE, THIS IS WHAT THESE
COMPANIES DO IS THEY MAKE MONEY
IN MARKETS LIKE TODAY.
LIZ: WHICH ONES DON’T?
IF YOU COULD THROW OUT SOME YOU
SAY THEY DON’T FIT INTO THESE
PARAMETERS, STAY AWAY?
>> WELL I THINK THERE IS SOME
THAT -- ANYBODY THAT IS VERY
DEPENDENT UPON EXPORTERS BECAUSE
OF THE STRONG U.S. DOLLAR.
SO YOU HAVE TO BE VERY, VERY
CAREFUL OF THAT.
IBM HAS TO TRANSLATE A LOT OF
REVENUE INTO U.S. DOLLARS.
REMEMBER ENERGY, COMMODITIES ARE
ALL PRICED INTO USD.
SO NONE OF THAT HAS TO HAPPEN
THERE BUT IBM, A LOT OF THEIR
REVENUE COME FROM OVERSEAS.
YOU WANT TO BE REAL, REALLY
CAREFUL THERE.
SOME OF THE ONES THAT DID REALLY
WELL DURING THE PANDEMIC, THE
PANDEMIC AND HOW WE TREATED
THINGS ARE OVER.
A LOT OF WORKFORCES WANT TO COME
BACK TO WORK, REVENUE FROM ZOOM,
THOSE THINGS I WANT TO STAY AWAY
FROM.
I WOULD BE SELLER OF ZOOM,
SELLER OF IBM.
LOOK FOR THEMES WHERE GOVERNMENT
AND GOVERNANCE IS NOT WORKING
WHERE WHERE THERE IS LACK OF
TRANSPARENCY THERE.
YOU WANT TO BE CAREFUL OF
DOWNSIDE RISK.
YOU TALKED ABOUT SPRINT EARLIER
TODAY.
WHAT IF ONE OF THOSE OFFERS OR
BOTH OF THOSE OFFERS WERE
WITHDRAWN?
TO ME I WOULD BE A SELLER OF
SPRINT AT THESE PRICES AND TAKE
YOUR PROFITS WHILE YOU HAVE
THEM.
LIZ: WHAT RISKS DO YOU REALLY
SEE OUT THERE?
ANY FLASHING RED LIGHTS WHEN IT
COMES TO LIQUIDITY OR ANYTHING
THAT WE SAW THE LIKES OF WHICH
BACK IN 2008 REALLY BROUGHT THE
MARKETS DOWN?
>> WELL I THINK, THE RISK IS IS
THAT I THINK WE’RE TOO EAGER
HERE.
THERE IS STILL FOMO IN THE
MARKET ABOUT WANTING IT TO GO UP
AND THE REALITY IS, YOU LOOK AT
THE VIX, WE REALLY HAVEN’T
FLUSHED IT OUT YET.
THIS CAPITULATION, MAYBE WE FELT
A LITTLE OF THAT ABOUT A WEEK
AGO ON MONDAY.
OTHER THAN THAT THERE REALLY
HASN’T BEEN THE CAPITULATION.
THE VIX HAS NOT EVEN GOT CLOSE
TO 40 YET.
I WOULD REALLY THINK YOU SEE
MORE VOLATILITY IN THE COMING
DAYS AND THE RISK, THE RISK IS
STILL, I THINK THAT THE FED GET
IT WRONG.
THEY’RE IN THE DRIVER’S SEAT BUT
THEY’RE WAY BEHIND OF CURVE
HERE.
WE HAVE HIGH, HIGH INFLATION.
WE HAVE TO DEAL WITH INFLATION
AND THE FED HAS TO DEAL WITH
THAT, MORTGAGE RATES GOING UP,
THAT’S RISK.
MORE HOMES ON THE MARKET.
WE’VE SEEN THAT LAYOFFS ACROSS
THE BOARD IN ALL THE MORTGAGE
SPACE.
WE’RE ALREADY SEEING CRACKS.
WE HOPE IT DOESN’T GO THERE BUT
THAT IS THE RISK THAT WE
ACTUALLY SEE AN R, A RECESSION
BY, FIRST QUARTER NEXT YEAR.
LIZ: WELL, LISTEN, THERE HAVE