♪ >> IT'S CAN THE A.M. HERE IN NEW YORK CITY. I'M HERE ALONGSIDE BRAD SMITH. THIS IS "THE MORNING BRIEF," THE ULTIMATE GUIDE TO MAKE DECISIONS FOR YOUR PORTFOLIO. I'LL BRING YOU TO THE TOP MARKET BEAMS AND ELEVATING YAHOO FINANCE'S MOST POPULAR NEWSLETTER. >> THAT'S RIGHT. HAPPY MONDAY, EVERYONE OUT THERE. STOCK FUTURES TAKING A BIT OF A BOTHER HERE AT THE START OF THE HOLIDAY SHORTENED TRADING WEEK. MEANWHILE, SHARES OF BOEING, THEY ARE ON THE MOVE. TICKER SYMBOL BA AFTER THAT COMPANY ANNOUNCED CEO DAVE CALHOUN IS GOING TO STEP DOWN AT THE END OF THE YEAR. SHARES HIGHER 3.5%. WE'LL DISCUSS THE RIPPLE EFFECTS STILL TO COME. >> PLUS THE TIMELINE FOR RATE CUTS. FEDERAL RESERVE PRESIDENT AUSTON GOOLSBEE WILL BE SPEAKING WITH OUR VERY OWN JENNIFER SCHAUMBERGER IN AN EXCLUSIVE COMING UP ON FAO FINANCE. >> AND A HUGE DAY AS WE WE MERE OUR NEW SHOW "WEALTH." SET YOUR TIMING. ALL YOUR PERSONAL FINANCE NEEDS COMING FORWARD DURING THE 11:00 HOUR. THREE THINGS THAT YOU NEED TO KNOW FOR RIGHT NOW. YOUR ROAD MAP FOR THE TRADING DAY. >> SHARES OF BOEING MOVING MORE AFTER THE COMPANY ANNOUNCED SHOW DAVE CALHOUN WILL STEP DOWN AT THE END OF THE YEAR. HIS DEPARTURE COMES AS THE PLAYMAKER HAS DEALT WITH THE DRAFT PRODUCTION ISSUES, MOST NOTICEABLY WHEN ITS MAX-9 PLANES LOST ITS DOOR PANEL MID-FLIGHT. THE FORMER SAINT-LO OF QUALCOMM AND BOARD MEMBER SINCE 2020 WILL LEAD THE COMPANY'S SEARCH FOR ITS NEXT CEO. >> AND BIG TECH UNDER FIRE AGAIN. EUROPEAN UNION LAUNCHING PROBES INTO APPLE, ALPHABET AND META ON MONDAY FOR POTENTIAL VIOLATIONS OF THE EU'S DIGITAL MARKET ACTS. UNDER THOSE NEW RULES, LAWS DESIGNED TO PREVENT GIANTS FROM CORNER CONSUMERS BY PROVIDING MAIN OFFERS OUTSIDE OF THEIR MAIN STORES. THEY COULD BE SLAPPED WITH UP TO BIG FINES OF UP TO 10% OF THE COMPANY'S GLOBAL TURNOVER. >> STOCK FUTURES SLIPPING THIS MORNING TO START THE LAST TRADING WEEK IN MARCH. MARKETS ARE POISES TO HIT A FIFTH CONSECUTIVE MONTH OF GAINS, AND THE S&P IS PACING TOWARDS DOUBLE-DIGIT PERCENTAGE GAINS TO CAP OFF A STRONG FIRST QUARTER OF THE YEAR. IT'S ALL ABOUT THE BULLS ON WALL STREET RIGHT NOW. OPPENHEIMER'S JOHN STOLE THE SMITH YOU GO HIS TARGET TO A STREET HIGH OF 5,500. GOLDMAN SACHS SAYING IT SEES A SCENARIO WHERE MEGA CAP TECH COULD LEAD THE S&P 500 UP ANOTHER 15% JUST THIS YEAR. ♪ >> TO OUR TOP STORY OF THE DAY. BOEING SHARES MOVING TO THE UPSIDE, UP JUST ABOUT 3.35% IN PRE-MARKET TRADING AFTER ANNOUNCING A MAJOR LEADERSHIP SHAKE-UP. THE CEO DAVE CALHOUN WILL BE STEPPING DOWN AT THE END OF THE HERE. THE CHAIRMAN OF THE BOARD ALSO ANNOUNCED THAT HIS DECISION NOT TO STAND FOR RE-ELECTION AT THE COMPANY'S ANNUAL MEETING IN MAY. YAHOO FINANCE HAS BEEN FOLLOWING THE BOEING STORY FROM THE BEGINNING. AT LEAST BY THE FIRST LOOK OF IT, SHARES MOVING FROM THE UPSIDE. SEEMS LIKE SLAYER HOLDERS ARE ENCOURAGING BY THIS NEWS. >> I HATE TO SAY WE WERE WAITING FOR THE NEWS TO HAPPEN FOR SOME TIME. WRITING ON THE WALL THAT CALHOUN COULDN'T SURVIVE THE ALAS CAB AIRLINES BLOWOUT. SO MUCH OF A HIGH-PROFILE KIND OF SAFETY ISSUE THAT IT WAS A CONCERN. IT'S SAFETY ISSUES AND PRODUCTION QUALITY ISSUES, AND I THINK THIS MOVE WAS SORT OF MAYBE ORCHESTRATED BY POTENTIALLY BIGGER SHAREHOLDERS. THE BOARD LOST CONFIDENCE. LARRY KELNER ALSO STEPPING DOWN. HE WAS CHAIRMAN OF THE BOARD SINCE 2019 AND HE'S BEEN THROUGH IT ALL AND HE'S KIND OF JOINED WITH CALHOUN AS SORT OF THE TWO BIGGEST GUYS TO SORT OF COME DOWN HERE. ALSO WANT TO KNOW THE DEAL AHEAD OF COMMERCIAL AIRLINES, HE'S STEPPING DOWN AND THE HEAD OF GLOBAL SERVICES WILL STEP IN FOR THE COMMERCIAL AIRLINES HEAD POSITION. >> IT'S INTERESTING. THE MAX LINE HAS NOW TAKEN OUT TWO CEOs. PREVIOUSLY DENIS MULLENBERG AND NOW DAVE CALHOUN. WHAT DO WE KNOW ABOUT THE LEADERSHIP THAT THEY WILL BE SEEKING NOW FOR THIS ROLE AND PERHAPS THE TYPE OF PERSON THAT'S FIT FOR BOEING AND TO REALLY TURN THINGS AROUND THERE? >> YEAH. YOU KNOW, CALHOUN, ALSO AN INSIDE THEY ARE AT BOEING SO MAYBE THE THOUGHT IS TO GET FROM SOMEONE OUTSIDE THE COMPANY. NOT SURE WITH THAT. THE TWO BIGGEST THINGS THAT I SEE FROM LIKE A SUCCESSION POINT OF VIEW ARE THE PERSON WHO STEPS IN. DO THEY HAVE THE SORT OF BACKGROUND OF TURNING THINGS AROUND, THE ABILITY TO HAVE THAT KIND OF STREET CRED FROM AN INDUSTRIAL POINT OF VIEW? ALSO, WILL THEY BE GIVEN CARTE BLANCHE TO DO WHATEVER THEY NEED TO DO. >> WHICH COULD HAVE MAJOR RAMIFICATIONS FOR THE STOCK, THE INVESTORS AS WELL. >> EXACTLY. WILL THEY BE ABLE TO NOT ONLY WEATHER THE STORM OF POTENTIAL, YOU KNOW, DOWNDRAFTS OF THE STOCK BUT ALSO THE MONEY THAT NEEDS TO BE INVESTED TO CHANGE THINGS AT BOEING, MAYBE REACQUIRE SPIRIT AIR SYSTEMS AND TRY TO GET THAT ALL UNDER THE SAME SORT OF GARAGE OR UNDER THE SAME ROOF TO MAKE SURE THAT THE PLANES ARE BACK TO WHERE BOEING USED TO BE. I THINK THAT'S THE MAIN CONCERN THERE. >> UNDER THE SAME HANGAR. >> THERE WE GO. >> RIGHT. BOEING SHARES AT LEAST FOR TODAY MOVING TO THE UPSIDE, RECOVERING SOME OF THE LOSSES THAT WE'VE SEEN SINCE THE START OF THE YEAR, JUST SOME. A LONG WAYS TO GO AS WE TALK ABOUT THAT RECOVERY STORY. >> RAPHAEL BOSTIC SAYING HE NOW EXPECTS THE FED TO CUT ONCE THIS YEAR SCALING BACK FROM HIS PREVIOUS PROJECTION OF TWO RATE CUTS. BOSTIC SAYING TO REPORTERS ON FRIDAY HE'S LESS CONFIDENT THAN HE WAS BACK IN DECEMBER THAT INFLATION WILL CONTINUE TO FALL TOWARDS THE FOMC'S 2% TARGET. NOW INVESTORS AWAY THE LATEST PRINTS FROM THE PREFERRED REPORTS ON FRIDAY. JOINING US WITH MORE ON A SPECIAL GUEST, LET'S BRING IN OUR VERY OWN JENNIFER SCHAUMBERGER. >> JOINING ME NOW IN AN EXCLUSIVE INTERVIEW IS CHICAGO FED PRESIDENT AUSTON GOOLSBEE. THANKS SO MUCH FOR JOINING ME. WELCOME BACK TO THE PROGRAM. IT'S GREAT TO SEE YOU. >> HI, JENNIFER. THANK YOU FOR HAVING ME. >> LAST WEEK FED CHAIR POWELL SAID DURING HIS PRESS CONFERENCE THAT DESPITE HOTTER INFLATION DATA IN THE FIRST COUPLE MONTHS OF THIS YEAR HE DIDN'T FEEL THAT THE OVERALL PICTURE FOR INFLATION HAS CHANGED ALL THAT MUCH. DO YOU SHARE THAT VIEW? >> I THINK I SHARE THAT VIEW. I THINK THE BIG CPI AND PCE INFLATION READINGS OF JANUARY REMAINED HIGHER THAN WE WANTED THEM TO BE AND HIGHER THAN EXPECTED IN FEBRUARY, BUT THEY DID COME DOWN. THEY FOLLOW ON SEVEN STRAIGHT MONTHS OF REALLY QUITE GOOD CPI AND PCE READINGS, SO WE'RE IN A LITTLE BIT OF A MURKY PERIOD. THE OVERALL, IT SEEMS HARD FOR ME TO VIEW THAT THE SEVEN MONTHS PREVIOUS TO THIS -- THE START OF THIS YEAR WERE JUST RANDOM, SO WE'RE IN A -- WE'RE IN AN UNCERTAIN STATE, BUT IT DOESN'T FEEL TO ME LIKE WE'VE CHANGED FUNDAMENTALLY THE STORY THAT WE'RE GETTING BACK TO -- TO TARGET. >> SETTING CPI ASIDE FOR A SECOND BECAUSE THAT'S BEEN RUNNING HIGHER THAN THE INFLATION GAUGE OF CORE PCE WHICH SITS AT 2.8% AS OF JANUARY, AND IT'S BEEN FALLING BY A TENTH OF A PERCENT EVERY MONTH. WE'LL GET A NEW READING ON THAT METRIC THIS FRIDAY, BUT DO YOU EXPECT THAT THAT TREND COULD CONTINUE AT THAT PACE? >> WELL, IT -- IT BETTER, AND LET'S -- LET'S HOPE WE EVEN START SPEEDING UP THE IMPROVEMENT. WE HAVE TO. I MEAN, 2.8 IS WELL ABOVE OUR TARGET, AS YOU KNOW. WE'RE GOING TO GET TO 2%. WE'VE ALWAYS KNOWN IT'S GOING TO TAKE PLACE OVER TIME. AS I SAY, WE'RE IN THIS MURKY PERIOD WHERE WE'VE GOT TO STRIKE A BALANCE OF THE DUAL MANDATE. THE LAW GIVES US THE DUAL JOB OF GETTING PRICES STABILIZED AND MAXIMIZING EMPLOYMENT. WE'VE BEEN IN A RESTRICTIVE ENVIRONMENT, I THINK. IF YOU LOOK AT THE REAL FEDERAL FUNDS RATE, THAT IS, THE RATE MINUS THE INFLATION RATE, AS INFLATION HAS COME DOWN, IT MEANS THAT WE'RE IN A HISTORICALLY PRETTY RESTRICTIVE TERRITORY, AND IT GETS MORE RESTRICTIVE AS WE HOLD THE RATES STEADY AND INFLATION COMES DOWN. THE REAL RESTRICTIVENESS GOES UP. SO I THINK WITH THAT LEVEL OF RESTRICTIVENESS, YOU WILL HAVE TO START PAYING ATTENTION TO THE OTHER SIDE OF THE MANDATE, TOO, IF IT GOES FOR TOO LONG, AND YOU SAW CHAIR POWELL DISCUSS THE EMPLOYMENT SIDE OF THE MANDATE AT THE PRESS CONFERENCE AS WELL. >> I WANT TO COME BACK TO THAT PIECE OF THE EMPLOYMENT MANDATE IN A MOMENT, BUT STICKING WITH INFLATION RIGHT NOW, THE COMMITTEE HAS PROJECTED INFLATION WILL END THIS YEAR AT 2.6% OF CORE PCE. THAT'S ONLY .2 OF A PERCENT AWAY FROM WHERE WE SIT RIGHT NOW. YES, THE TREND COULD BE SLOWER OR BUMPIER THAN WHAT WE'VE SEEN OVER THE LAST SEVERAL MONTHS, BUT AS YOU SAID THE INFLATION PICTURE HASN'T CHANGED THAT MUCH. GIVEN THAT, WHAT'S THE PROSPECT THAT WE COULD BE AT THAT LEVEL OF 2.6% BY THE SUMMERTIME? >> WELL, THE ONE THING TO NOTE IS THAT THE 2.6% WOULD BE AVERAGE FOR THIS WHOLE YEAR, SO THE FACT THAT WE'VE GOT TWO BIG READINGS IN JANUARY AND FEBRUARY MEAN THAT FOR THE NEXT TEN MONTHS THEY WILL HAVE TO BE A FAIR BIT LOWER TO GET THE 2.6 DOWN BY THE END OF THIS YEAR, SO I THINK THE -- THERE'S A -- THERE'S A BIG DIFFERENCE BETWEEN 2.6, 2.6 REPEATED FOR 18 MONTHS AND WHAT WE'VE BEEN SEEING WHICH IS MORE VARIABILITY, SO WE WERE LITERALLY DOWN AT 2% FOR SIX OR SEVEN MONTHS AT THE END OF LAST YEAR. NOW WE'VE HAD TWO HIGH READINGS, AND -- AND WE NEED TO SEE PROGRESS IN THAT INFLATION COMING DOWN. THAT'S THE FOREMOST THING ON OUR MIND. ON THE DUAL MANDATE WHERE WE HAVE MISSED, AS YOU KNOW, HAS BEEN ON THE INFLATION SIDE. THE JOB MARKET HAS BEEN QUITE STRONG, BUT INFLATION SIDE OF THE MANDATE IS WHERE WE'VE MISSED, AND I CONTINUE TO HIGHLIGHT THE MAIN PUZZLE HAS BEEN ABOUT HOUSING, THAT WE'VE GOT TO GET HOUSING INFLATION COMING DOWN CLOSER TO WHERE IT WAS BEFORE THE PANDEMIC. YOU'VE ALREADY SEEN GOODS COME DOWN TO VERY -- VERY CLOSE TO WHERE THEY WERE PRE-PANDEMIC. SERVICES STILL ELEVATED BUT NOT THAT MUCH ELEVATED HIGHER THAN THEY WERE PRE-PANDEMIC, AND -- AND THE BIG OUTLIER HAS BEEN HOUSING. I DO THINK THE MARKET RENTS SHOW THAT THERE IS PROGRESS TO BE MADE, BUT WE HAVE YET TO SEE THAT IN THE OVERALL DATA, SO I'M VERY HIGHLIGHTED ABOUT THAT ISSUE. >> SO STILL SOME ROOM FOR IMPROVEMENT OBVIOUSLY, BUT YOU DID SAY THAT WE'RE VERY RESTRICTIVE HERE, SO I'M CURIOUS. IS A JUNE RATE CUT ON THE TABLE? >> WELL, YEAH. AS YOU KNOW, I DON'T EVER LIKE TYING OUR HANDS OR SIGNALING THAT WE'VE MADE UP OUR MINDS OR THAT I'VE MADE UP MY MIND BEFORE THE MEETINGS WHEN WE'RE GOING TO GET A LOT OF DATA BETWEEN NOW AND WHENEVER THAT DECISION HAS TO BE MADE. YOU'VE SEEN THE EVOLUTION OF EVERYONE'S THINKING AND MY OWN THINKING. WHEN WE HAD SEVEN MONTHS OF 2% INFLATION OR EVEN LESS, THE COMMITTEE'S STATEMENT ENDS UP BEING FAIRLY PRESCIENT TO HAVE ADDED LANGUAGE THAT SAYS THE COMMITTEE NEEDS TO HAVE MORE CONFIDENCE THAT WE'RE ON THE PATH TO 2%. WE THEN SAW THIS UPTICK IN INFLATION, AND WE JUST GOT TO MAKE SURE THAT WE'RE ON TREND. WE NEVER -- I BELIEVE THAT WE SHOULD NEVER RULE OUT OR RULE IN ANYTHING WHEN WE'VE GOT A WHOLE LOT OF DATA TO COME AND MULTIPLE MEETINGS AND MULTIPLE MONTHS OF DATA. >> IS IT POSSIBLE THAT WE COULD SEE JUNE ON THE TABLE OR IS IT OFF THE TABLE? >> LOOK, AS I SAY, I DON'T WANT TO GET BACKED INTO SPECULATING ABOUT WHAT'S NOT EVEN THE NEXT MEETING BUT TWO MEETINGS FROM NOW. EVERYTHING IS ALWAYS ON THE TABLE OR OFF THE TABLE. IT ALL DEPENDS ON THE DATA AND CONDITIONS, IN MY OPINION. >> LET ME ASK YOU THIS. THREE RATE CUTS HAVE BEEN PENCILED IN BY THE MEDIAN FOR THIS YEAR. IS THAT IN LINE WITH YOUR THINKING? >> THAT WAS IN LINE WITH MY THINKING THIS TIME FOR THE -- AS YOU KNOW, THE SUMMARY OF ECONOMIC PROJECTIONS IS NOT FORWARD GUIDANCE. IT'S NOT DEBATED. WE DON'T VOTE, DISCUSS, DELIBERATE ON THESE FUTURE MEETINGS. THAT'S -- THE THINGS IN THE STATEMENT ARE WHAT WE DISCUSS AND DEBATE. THE SUMMARY OF ECONOMIC PROJECTIONS ARE INDIVIDUAL PROJECTIONS WHICH WE DON'T HAVE ANY DEBATE ON. I WAS AT THE MEDIAN FOR -- FOR THIS ONE, AND WE'LL HAVE TO SEE HOW THE CONDITIONS DEVELOP ON THAT. >> DOUBLING BACK ON WHAT YOU SAID IN TERMS OF THE RATE BEING RESTRICTIVE RIGHT NOW, I HAVE HERE IN MY NOTES THE ATLANTA FED RUNS SOME NUMBERS, AND THREE VERSIONS OF THAT SHOW THAT THE FED'S TARGET RATE SHOULD BE IN THE RANGE OF 3.9% TO 4.7% RIGHT NOW. DO YOU SUBSCRIBE TO THE TAYLOR RULE? WHAT ARE YOUR THOUGHTS ON THAT, AND, YES, I KNOW, WE HAVE ROOM TO IMPROVE ON INFLATION. WHAT ABOUT CUTTING NOW? >> OKAY. THERE'S A LOT OF IMPORTANT ISSUES IN THAT QUESTION. OKAY. SO THE TAYLOR RULE IS A FORMULA THAT LOOKS AT PAST HISTORY OF THE FED AND SAYS YOU PLUG IN THE INFLATION RATE. YOU PLUG IN THE UNEMPLOYMENT RATE. YOU MAKE SOME ESTIMATES OF WHAT THE NEUTRAL RATE OF EACH OF THOSE WOULD BE AND IT KIND OF SPITS OUT. HERE IN THE PAST IS HOW THE FED HAS BEHAVED. I'M A LOOSE SUBSCRIBER TO THE TAYLOR RULE, BUT ESPECIALLY AT MOMENTS WHERE YOU'VE GOT ODDITIES HAPPENING LIKE SUPPLY SHOCKS OR THINGS THAT MAKE THE CURRENT SITUATION QUITE DIFFERENT FROM PREVIOUS TIMES THAT THE ECONOMY HAS BEEN IN THAT CIRCUMSTANCE. YOU'VE JUST GOT TO BE A LITTLE CAREFUL WITH BEING TOO MECHANICALLY TIED TO LET'S JUST DO WHATEVER THE FORMULA SAYS. THERE ARE MANY TAYLOR RULES, TAYLOR-STYLE RULES, LET'S CALL THEM, AND SOME OF THEM ARE FOR LOWER RATES, BUT THERE ARE ALSO TAYLOR RULES THAT ARE ARGUING THE RATES SHOULD BE HIGHER, SO ALL OF THOSE ARE INPUTS THAT WE SHOULD PAY ATTENTION TO, BUT I DON'T THINK THAT A FORMULA SHOULD CONVINCE US, AH, IF THE MACHINE SAYS -- THE CHATGPT TELLS US WE SHOULD GO CUT THE RATES RIGHT NOW OR WAIT UNTIL NEXT YEAR TO DO IT, I DON'T THINK WE SHOULD BE OVERLY ENTHUSIASTIC TO EMBRACE THOSE RULES BECAUSE WE KNOW THAT 2023, FOR EXAMPLE, WAS EXTREMELY UNUSUAL. REALLY QUITE SUBSTANTIAL DROP IN INFLATION WITH NO RECESSION AT ALL, VIRTUALLY WITHOUT PRECEDENT. GIVEN THAT WE JUST GOT THROUGH THE YEAR IN WHICH THAT HAPPENED, LET'S BE A LITTLE CIRCUMSPECT OF USING THE OLD RULES TO DETERMINE WHAT THE RATES SHOULD BE RIGHT NOW. >> AND TO YOUR POINT, LET ME ASK YOU ABOUT THE PULSE OF THE CONSUMER RIGHT NOW BECAUSE WE DID SEE RETAIL SALES COME IN A LITTLE BIT MORE TEPID. WHAT'S YOUR SENSE OF THE STRENGTH OF THE CONSUMER NOW AND CONSUMER SPENDING AS WE DO THROUGH THIS YEAR, DO YOU EXPECT ANY WEAKENING? >> YEAH. I THINK -- I THINK YOU'RE RIGHT. I LIKE THAT YOU USE TEPID. YOU'VE SEEN TWO TO THREE MONTHS WHERE CONSUMER SPENDING WAS WEAKER THAN IT WAS EXPECTED TO BE. I MEAN, IT'S STILL THE CONSUMER HAS BEEN A STRONG PART OF THE ECONOMY, AND YOU'VE SEEN A LOT OF GROWTH. I WOULD HIGHLIGHT IT MIXED OUR PICTURE A LITTLE OF HOW MUCH CONSUMER SPENDING AND WHAT PAYROLL JOBS NUMBERS WE CAN SUSTAIN FOR A GIVEN RATE OF INFLATION. IT HAS BEEN MIXED A LITTLE BIT BY THE RECALCULATION ABOUT IMMIGRATION, SO EUROPE NOW SEEN THE CBO AND OTHERS SAYING THERE WAS A LOT MORE IMMIGRATION LAST YEAR THAN THEY HAD INITIALLY CALCULATED, AND IF TRUE, LARGER POPULATION, THERE'S NO QUESTION ABOUT IT, IS GOING TO LEAD TO MORE AGGREGATE GDP, IS GOING TO LEAD TO MORE AGGREGATE CONSUMPTION, SO I THINK WE'VE STILL GOT TO THE GET A HANDLE ON WHEN WE'RE TRYING TO MAKE CALCULATIONS THAT ARE NOT PER CAPITA, THAT ARE ABOUT THE AGGREGATE, I THINK WE'VE GOT TO -- WE'LL HAVE TO PAY A LITTLE CLOSER ATTENTION TO WHAT WAS IN THE DENOMINATOR AS IT WERE, NOT JUST THE NEW JERSEY RATER. >> LET ME ASK YOU ABOUT THE BALL SHEET BECAUSE CHAIR POWELL SAID HE THOUGHT IT WOULD BE APPROPRIATE TO SLOWING THE PACE OF SLINKING THE BALANCE SHEET RUNOFF, QUOTE, FAIRLY SOON. DO YOU SHARE THAT VIEW, AND HOW SOON IS FAIRLY SOON? >> YEAH. I DON'T KNOW THE EXACT DATE. I DO SHARE THAT VIEW, AND I THOUGHT CHAIR POWELL'S -- THE SECOND PART OF CHAIR POWELL'S COMMENT IS ALSO QUITE IMPORTANT WHICH IS TO SAY SLOWING THE RATE OF THE BALANCE SHEET RUNOFF IS NOT THE SAME QUESTION AS WHAT WILL BE THE ULTIMATE SIZE OF THE BALANCE SHEET, AND THE -- THE ISSUE THAT WE WANT TO PRE-ANNOUNCE AND APPROACH IN A REGULAR -- IN A REGULARIZED WAY, A SLOWING DOWN SO WE CAN TELL WHAT IS THE POINT OR WHERE DO WE THINK THE RANGE OF BANKS HAVING AMPLE RESERVES IS BECAUSE THAT'S QUITE IMPORTANT FOR OUR -- FOR OUR RATE CONTROL. SO I -- I THOUGHT THAT THE CHAIR WAS SPOT ON FROM MY VIEW ON WHAT SHOULD HAPPEN WITH THE BALANCE SHEET. >> AND I KNOW THAT RATE CUTS ARE ON A SEPARATE TRACK FROM THE BALANCE SHEET, BUT WOULD YOU BEGIN SLOWING THAT RUNOFF BEFORE CUTTING RATES? OR NO? >> I WOULD KEEP THEM TOTALLY SEPARATE. I THINK IF YOU REMEMBER BACK IN THE -- IN THE BAD OLD DAYS WHERE AT EVERY MEETING IT FELT LIKE THE MARKET IS DEMANDING TO KNOW WHAT ARE YOU GOING TO DO ON BALANCE SHEET, AND WHAT ARE YOU GOING TO DO ON RATE CUTS? THAT WAS CONFUSING. IT ADDED A LOT OF VOLATILITY, I FELT LIKE, AND I THINK IT WAS AN ACCOMPLISHMENT TO GET ON THE BALANCE SHEET SIDE, GET IT SEPARATE AND GET IT ON A REGULAR LARIZED LARIZED PATH, AND IT WAS AN INDICATION IN MY VIEW OF CORRECT POLICY. I THINK WE WANT TO GET ON A REGULARIZED PATH. DOING IT A LITTLE SLOWER AS WE GET CLOSER TO THE POINT AT WHICH THE RESERVES -- THE POINT AT WHICH RESERVES ARE AMPLE. >> REAL QUICK, AUSTON. I'VE GOT TO GO. >> WE SHOULD KEEP THAT SEPARATE FROM QUESTIONS. >> REAL QUICK. I'VE GOT TO GO. DO YOU THINK ONE WOULD COME BEFORE THE OTHER OR DO YOU THINK IT JUST DEPENDS? >> IT JUST DEPENDS. LIKE I SAY, I WANT THEM ON SEPARATE TRACKS. OUR DECISIONS ABOUT THE BALANCE SHEET ARE NOT DECISION ABOUT RATE AND MONETARY POLICY. I THINK IT'S IMPORTANT WE KEEP THOSE SEPARATE. >> ALL RIGHT. THANK YOU SO MUCH FOR YOUR INSIGHT. GREAT TO SPEAK WITH YOU. HOPE TO SPEAK WITH YOU AGAIN SOON. >> GREAT TO SEE YOU, JENNIFER. >> THAT'S AUSTAN GOOLSBEE, PRESIDENT OF THE CHICAGO FEDERAL RESERVE. BRAD, I'LL SEND IT BACK TO YOU IN NEW YORK. >> EXCELLENT INTERVIEW THERE, AN EXCLUSIVE WITH THE FED PRESIDENT AND FED CHAIR AUSTAN GOOLSBEE. KEEPING IT MOVING HERE THIS MORNING ON "MORNING BRIEF," STOCK FUTURES ARE EDGING LOWER. YOU'VE THAT THIS MORNING. AND THE END OF THE QUARTER. DESPITE THE TICK TO THE DOWNSIDE MARKETS ARE ON TRACK FOR FIVE CONSECUTIVE MONTHS OF GAINS, AND ANALYSTS FROM OPPENHEIMER SEE A MORE BULLISH PATH AHEAD FOR STOCKS. HERE WITH MORE WE'VE GOT JOSH SCHAFFER TO BREAK IT DOWN. WHAT ARE THEY SAYING? >> BRAD, IT'S THE FINAL WEEK OF THE QUARTER, AND WE HIT EVERYONE'S S&P 500 TARGET FOR 2024. >> ALREADY. >> CONGRATS. >> THE YEAR IS OVER. >> DONE. >> NO. THAT MEANS THEY HAVE TO COME OUT AND MOVE IT HIGHER, AND THAT'S WHAT WE'RE STARTING TO SEE STREETWIDE HERE SO OPPENHEIM HER BEEN THE HIGHEST CALL ENTERING THE YEAR, ON OF THE HIGHEST CALLS, TIED WITH THE HIGHEST CALLS WITH 5,200 AND NOW THAT WE'VE REACHED THAT TARGET IT'S SAID WE SIMPLY THINK STOCKS GO HIGHER FROM HERE. SORT OF KEY TO THIS CALL, A COUPLE OF THINGS TO HIGHLIGHT HERE, GUYS, HE THINKS WE'LL KEEP SEEING A BROADENING OUT IN THE MARKET, AND THIS WILL BE A BROODNING DRIVE CHUG HIGHER HERE, NOT NECESSARILY A TECH BUBBLE-STYLE RALLY. YOU CAN SEE BOTH THOSE CALLS OUT THERE RIGHT NOW AS FAR AS THE S&P 500. THEY ARE CALLING FOR BOTH WAYS THAT WE COULD GET TO SEE STOCKS HIGHER HERE, BUT OTHER THING THAT I THOUGHT WAS INTERESTING IS SIMPLY IT'S LESS ABOUT THE ECONOMY, SURPRISING HIM TO THE UPSIDE BECAUSE HE'S BEEN IN A POSITIVE ENEMY CAMP AS A LOT OF STOCK MARKET BULLS HAVE, BUT HE TALKED ABOUT A CAPITULATION AMONG THE BEARS. ESSENTIALLY MAYBE THE FLOOR IS MOVING YOU HAVE AND THE FLOOR KEEPS MOVING UP, RIGHT, AND AT SOME POINT PEOPLE WANT TO JOIN THE PARTY. AT THIS POINT WHEN YOU LOOK AT PERFORMANCE TO THE YEAR, WHERE ARE YOU GOING TO JOIN THE PARTY? PROBABLY IN THE BROADENING OUT. YOU WON'T HOP INTO SOME OF THE AREAS THAT HAVE ALREADY TAKEN OFF, AND THAT WAS ONE OF THE BIGGEST TAKEAWAYS HERE. >> WORTH NOTING AND SIMILAR TOWARDS THE NARRATIVE THAT HAVE SHIFTED. A NUMBER OF STRATEGISTS WE'VE TALKED TO TIME AND TIME AGAIN OVER THE LAST SEVERAL WEEKS AT LEAST HAVE BEEN TALKING ABOUT THE BROADENING OUT STORY AND EXACTLY WHAT THAT'S GOING TO DO TO SOME OF THE YEAR-END TARGETS AND THEN ALSO GOLDMAN WAS OUT WITH AN INTERESTING NOTE. IT IS PRETTY MUCH POINTING TO A SIMILAR TYPE OF SCENARIO, JUST ABOUT THE FACT THAT THEM TO OF THEIR CLIENTS ARE ASKING, OKAY. WHAT'S HAPPENING NOW? WHAT ARE THE SCENARIOS AROUND YOUR BASE CASE? AND THEY HAD ONE SCENARIO THAT WAS WHAT? WE COULD SEE THE S&P UP TO 6000 ON THE FLIP SIDE AND S&P PRESSURE DOWN TO AROUND 4500? >> YEAH. GOLDMAN HIGHLIGHTING THE QUESTION OF THE MOMENT NOW FOR A LOT OF THESE FIRMS, ONE OF THE MOST POPULAR QUESTIONS THEY ARE GETTING RIGHT NOW WHAT ARE THE POSSIBILITIES END THE CNBC. >> 52 IS A POPULAR NUMBER ON WALL STREET FOR THE S&P 500 AND WE'RE SIGNATURE AT IT, AND WE HAVE A LOT OF TIME LEFT THIS YEAR. INTERESTINGLY ENOUGH, WE WERE TALKING ABOUT THE BROADENING OUT, RIGHT? WE'RE TALKING ABOUT THINGS LIKE FINANCIALS CONTINUING TO PERFORM WELL, MAYBE THE RUSSEL 2000 JOINS THE PARTY. IN THAT HAPPENS GOLDMAN SAYS MAYBE WE GET TO 5,800. WHAT YOU'RE LOOKING AT ON YOUR SCREEN NOW THOUGH IS SORT OF THE BUBBLE CALL. SO YOU'RE LOOKING AT MARKET IMPLIED LONG-TERM S&P 500 GROWTH EXPECTATIONS. IF WE ZOOM IN ON THAT CHART, YOU CAN SEE RIGHT NOW WE'RE AT 11%. LOOK AT THE TECH BUBBLE AT 16%. YOU SEE THAT RUN HIGHER. THE POST-COVID BUBBLE WHICH IS 2021, WE GOT EVEN MORE EXTENDED IN GROWTH EXPECTATIONS. GOLDMAN SAYS IF WE GET INTO AN AREA LIKE THAT WHERE WE HAVE CONTINUED MEGA CAP GROWTH, EXCEPTIONALISM WHERE WE'RE BEING LED BY THE BIG TECH STOCKS AND PEOPLE WILL PILE INTO THAT TRADE, WE CAN GET TO 6,000 THIS YEAR. THAT'S 15% UP FROM WHERE WE ARE NOW. WE SHOULD ALSO NOTE AND WE'LL BE DIG FLOG THIS MORE THIS WEEK, IT'S NOT JUST GOLDMAN THAT SEES THIS HAPPENING. THIS IS SOMETHING THAT CAPITAL ECONOMICS HAS HIGHLIGHTED TO US IN THE PAST. THEY THINK WE COULD REACH 6,500 IF WE WERE IN SORT OF A MOMENTUM TRADE. SO IF WE'RE IN A MOMENTUM TRADE, MOMENTUM CAN FEED ON ITSELF AND GROW A LITTLE BIT HIGHER. IT WILL BE INTERESTING TO SEE IF THAT IS WHAT WE'RE TALKING ABOUT IN SIX MONTHS OR IF WE START TO MAYBE GET SOME SORT OF PULLBACK, SOMETHING TO SWELL US DOWN HERE. IT FEELS LIKE WE'RE JUST CHARGING AHEAD. >> YEAH. YOU'VE GOT TO THINK THAT THAT SCENARIO AT LEAST ISN'T TOO LIKELY. HEY, MAYBE EVERYONE IN THE U.S. WILL BE UP. I DON'T KNOW. IT'S JUST HARD TO THINK THAT WE'LL HAVE THAT MASSIVE MARCH FORWARD, JUST VERY, VERY CONCENTRATED GROUP OF STOCKS WHO ARE LEADING THE WAY. THEY ARE SAYING THAT'S 6,000 THERE COULD POTENTIALLY BE ATTAINABLE. I DON'T KNOW. >> THE HIGHLIGHTED SCENARIOS WHERE -- TWO DIFFERENT SCENARIOS WHERE WE FALL TO 4,500, TOO. IMPORTANT TO NOTE THAT. >> YEAH. >> THERE'S STILL DOWNSIDE RISK OUT THERE. >> HENCE, WHY THEY ARE RIGHT THERE IN THE MIDDLE. >> RISK IS EVERYWHERE. >> THANKS. >> THANKS SO MUCH FOR HELPING US BREAK THIS DOWN, AND THIS ONE COMING AHEAD OF THE OPENING BELL. ANOTHER BIG NEWS ITEM COMING AHEAD OF THE OPENING BELL. ANOTHER CRACKDOWN ON BIG TECH. THIS TIME COMING FROM THE EU. THE COMMISSION GOING AFTER META, ALPHABET AND APPLE. THE STATEMENT SAYS THE EU HAS OPENED NON-COMPLIANCE INVESTIGATIONS UNDER THE DIGITAL MARKETS ACT INTO ALPHABET'S RULES ON STEERING AND GOOGLE PLAY AND SELF-PREFERENCING ON GOOGLE SEARCH. APPLE'S RULES ON STEERING IN THE APP STORE AND THE CHOICE SCREEN FOR SAFARI AND META IS FOR PAY OR CONSENT MODEL. LET'S BREAK THAT DOWN A LITTLE BIT FURTHER HERE. FOR ALPHABET AND APPLE STEERING RULES, WHAT THEY SAY IS THAT THE COMMISSION HAS OPENED PROCEEDINGS TO ASSESS WHETHER THE MEASURES THAT HAVE BEEN IMPLEMENTED BY ALPHABET AND APPLE IN RELATION TO THEIR OBLIGATIONS PERTAINING TO APP STORES ARE IN BREACH OF THE DIGITAL MARKETS REQUIRING GATEKEEPERS TO ALLOW APP DEVELOPERS TO STEER CONSUMERS TO OFFERS OUTSIDE OF THE APP STORES FREE OF CHARGE THERE, AND THAT'S SOMETHING THAT'S COMING UP TIME AND TIME AGAIN AND REALLY HAS BEEN KICKED OFF BY SOME OF THE COMPANIES WHO WERE CALLING ABOUT THIS FOR YEARS AND SAYING, HEY. CAN YOU GUYS LOOK INTO THIS? THEY ARE TAKING REVENUES FROM US OR JUST BARRING US FROM THE OPPORTUNITY TO REALIZE REVENUE BECAUSE OF THAT STEERING. >> AND THE IMPACT THIS COULD HAVE ON THE BOTTOM LINE AND WHAT THIS MEANS FOR APPLE'S BUSINESS. EU ACCOUNTS FOR 7% OF APP STORE REVENUES. IT IS A SIGNIFICANT PART OF THEIR BUSINESS AND THE QUESTION IS IF THIS HAPPENS OVER IN THE EU, WHAT WILL THAT PRESSURE LOOK LIKE HERE IN THE U.S.? WE HAVE THE DOJ LAWSUIT, SEPARATE ISSUE, BUT THE DOJ LAWSUIT LAST WEEK PERTAINING TO APPLE AND SOME OF THE CONCERNS THERE OVER THE MONOPOLY. IF YOU MOVE THAT ASIDE AND MOVE THE ISSUES WITH ALPHABET ASIDE, SIMILAR SORT OF SCENARIO THERE JUST IN TERMS OF THE QUESTIONS ABOUT GOOGLE PLAY, BUT THEN FOCUS ON META AND WHAT THE SATURDAY THERE. >> YEAH. >> THAT'S ALSO SOMETHING THAT STUCK OUT TO ME. YOU HAVE A PAYING CONSENT MODEL, THE AD SUBSCRIPTION MODEL VERSUS WHETHER OR NOT YOU'LL ALLOW META SHARE YOUR DATA. VERY SEPARATE ISSUES HERE, BUT THERE IS PRESSURE ACROSS THE BOARD ON THESE STOCKS HERE IN THE PRE-MARKET. YOU'VE GOT APPLE DOWN ANOTHER 1% POTENTIALLY. COMING UP, WE'VE GOT THE OPENING BELL ON WALL STREET ON THE OTHER SIDE OF THE BREAK. WE'LL BE RIGHT BACK. ♪ >>> HERE'S THE ONLY BELL ON WALL STREET. WE'RE GETTING LOTS OF EXCITEMENT PLAYING OUT ON THE FLOOR OF THE NEW YORK STOCK EXCHANGE AND THE NASDAQ. WE'LL SEE WHETHER OR NOT THIS IS ANOTHER RECORD-SETTING WEEK HERE FOR THE MARKET. THE S&P COMING OFF ITS BEST WEEK THAT WE SAW SINCE THE START OF THE YEAR. HOW THINGS STARTED THE WEEK, A BIT OF A DOWNNOTE. WE ENDED THE WOKE LAST WEEK WITH THE DOW UP A TENTH OF A PERCENT AND THE NASDAQ COMPOSITE OFF HALF A PERCENT HERE AS WE SHAKE OUT THAT OPENING TRADE AND THE S&P ALSO UNDER A BIT OF PRESSURE, BUT WE'VE GOT TO THE ALSO START WITH THE BIG NEWS OF THE MORNING, THAT DOW COMPONENT BOEING, AND YOU'RE LOOKING AT GAINS HERE AT THE OPEN, OF JUST ABOUT 3%. TAKING A LOOK AT THAT YEAR-TO-DATE LOOK, REGAINING SOME OF THE LOSSES THAT WE'VE SEEN SINCE THE STOCK HAS BEEN UNDER PRESSURE SINCE START OF THE YEAR. >> AS WE WERE MENTIONING AT THE START OF TODAY'S SHOW, A HUGE LINE. YOU THINK OF THE MAX LINE AND HOW TUMULTUOUS IT'S BEEN FOR BOEING SHARES OVER THE YEARS, THE HITS BOEING HAS TAKEN, AND NOW IT'S TAKEN TWO CEOs OUT AS WELL WITH IT, AND SO ALL THAT CONSIDERED, LARGER QUESTION OF WHO STEPS INTO THE HELM THERE AND INTO THE COCKPIT TO REALLY STEER BOEING. COULDN'T HELP MYSELF THIS MORNING HERE. GOT TO START OFF WITH SOME FUN I GUESS IN THE MIDST OF ALL OF THIS. TAKE A LOOK AT THE DOW HERE MORE BROADLY. SEEING A GOOD MIX OF RED AND GREEN AS OF RIGHT NOW, BUT SOME MEGA CAP TECH STOCKS RIGHT NOW DOWN. MICROSOFT, APPLE, WE WERE MENTIONING THE EU DIGITAL MARKETS ACT COMING AFTER APPLE. AMAZON ALSO MENTIONED WITHIN THAT VERY SLIGHTLY COMPARED TO SOME OF THE CALLOUTS THAT APPLE, ALPHABET AND THEN META GOT AS WELL HERE SO WE'RE TRACKING ALL OF THOSE THIS MORNING. >> INTEL OFF 3.5%. THE LATEST ON THAT, INTEL AND AMD, BOTH OF THOSE STOCKS SINKING TODAY AFTER REPORTEDLY TRYING TO PLANT GUIDANCE TO PHASE OUT THE USE OF U.S. CHIP-MAKERS IN GOVERNMENT SERVERS AND COMPUTERS. THIS IS ACCORDING TO A REPORT FROM "THE FINANCIAL TIMES." MORE FROM IN STUDIO. AKIKA. >> THIS POINTS TO A FURTHER DECOUPLE BETWEEN THE U.S. AND CHINA WHEN IT COMES TO CRITICAL TECH INFRASTRUCTURE. "THE FINANCIAL TIMES" INTRODUCING CHINA HAS INTRODUCED NEW GUIDELINES TO PHASE OUT INTEL AND AMD PROCESSORS FROM GOVERNMENT SERVERS. THE GUIDELINES FOR THIS NEW POLICY WERE UNVEILED BACK IN DECEMBER OF LAST YEAR, ORDERING GOVERNMENT AGENCIES AND POLITICAL PARTIES TO REQUIRE IN THEIR WORDS SAFE AND RELIABLE PROCESSORS AND OPERATING SYSTEMS. TRANSLATION, ONLY PARTS FROM CHINESE COMPANIES. IN ALL IT WAS REPORTED THERE WERE 18 APPROVED PROCESSORS INCLUDING CHIPS FROM HUAWEI AS WELL AS STATE BACKED FIDIUM AND CHINA LOOKS TO RAMP UP THEIR CHIP PRODUCTION AND DESIGN IN THE FACE OF U.S. EXPORT RESTRICTIONS. REMEMBER, THE U.S. IS ALREADY RESTRICTED ADVANCES CHIPS AS WELL AS CHIP-MAKING EQUIPMENT. WE SHOULD POINT OUT INTEL AND AMD SINKING BECAUSE INTEL GETS 27% OF THEIR REVENUE FROM CHINA. AMD 15%. STILL QUESTIONS ABOUT HOW MUCH OF THAT IS DEPRIVED FROM GOVERNMENT ACCOUNTS. MICROSOFT'S OPERATING SYSTEMS SET TO BE REMOVED FROM GOVERNMENT DEVICES, AT LEAST ACCORDING TO THE FT. FOR INTEL THIS MARKS THE LATEST SETBACK. LAST FALL THEY HAD TO UNWIND OR ACTUALLY ABANDON THIS -- THIS ACQUISITION, $5.4 BILLION OF TOWER SEMICONDUCTOR WHICH IS AN ISRAELI COMPANY AND CHINA DID NOT WANT TO APPROVE THAT. THIS REALLY POINTS TO THE CHIP-MAKERS BEING INCREASINGLY CAUGHT IN THE MIDDLE HERE. INTERESTING TO SEE HOW QUICKLY CHINA RAMPS UP AND HOW ADVANCE THEIR TECHNOLOGY IS, BECAUSE THAT'S BEEN THE BIG QUESTION MARK. CAN THEY BE SELF-SUFFICIENT? CHINA WITH THIS POLICY SAYING ESSENTIALLY OVER THE NEXT FEW YEARS WE'RE GOING TO MOVE IN THAT DIRECTION. >> I MEAN, SOCIAL MEDIA, CHIPS, LIKE IT SEEMS LIKE THERE ARE MORE AREAS THAT THIS COULD BROADEN OUT TO IN TERMS OF INDUSTRIES THAT COULD BE IMPACTED AS A RESULT OF WHAT HAS KIND OF PEFRM ATED FROM A TIT FOR TAT TYPE OF U.S. AND CHINA SPAT THAT'S GONE ON FOR YEARS NOW AT THIS POINT. >> I'VE BEEN SPEAKING TO A LOT OF CHINA EXPERTS ABOUT THIS, LIKE HOW DOES THIS BROADEN OUT. >> SHOWER. >> AND IT FEELS LIKE IT'S STILL VERY MUCH FOCUSED ON CRITICAL TECH INFRASTRUCTURE. SOCIAL MEDIA DIFFERENT BECAUSE OF ALL OF THE DIFFERENT DATA COLLECTED. >> RIGHT. >> BUT SO FAR IT'S BEEN REALLY FOCUSED ON THE SEMICONDUCTOR SPACE. >> THANKS SO MUCH FOR TRACKING THIS AND BREAKING THIS DOWN FOR US THIS MORNING. WE'RE WATCHING SHARES OF FISKER. THEY ARE PLUMMETING AFTER THE EV STARTUP SAYS THE LARGE AUTOMAKER, IT WAS IN TALKS WITH FOR A POTENTIAL TRANS ACTION HAS TERMINATED NEGOTIATIONS. FISKER WEIGHING STRATEGIC ALTERNATIVES INCLUDING IN OR OUT OF COURT RESTRUCTURES HERE. SHARES ARE DOWN 28%. THE COMPANY HAS ALREADY BEEN GOING THROUGH A MASSIVE RESTRUCTURING OF ITS OWN BUSINESS AND TRYING TO MAKE SURE THAT THEY CAN COZY UP TO SOME POTENTIAL DEALERS AND GROWING OUT THE DEALER NETWORK AS WELL, SO KIND OF STEPPING AWAY FROM THE PURE D TO C REALLY SPURRED BY HOW WELL TESLA HAD BEEN ABLE TO DO AND MOVING AWAY FROM THAT AND NOW GOING AWAY TO DIRECTLY WHAT ARE THE DISTRIBUTION PARTNERS AND CHANNELS THAT WE CAN WORK WITH AT THE DEALER MODEL PERSPECTIVE, AND IF THAT DOESN'T HELP THEM, YOU'VE GOT -- YOU'VE GOT A QUESTION HERE, NUMBER ONE, HOW MUCH LONGER ARE WE LOOKING AT FISKER AS A PUBLICLY TRADED COMPANY? THAT'S AN ISSUE AND ANY MECHANISMS THAT THEY WILL NEED TO IMPLORE IN ORDER TO REMAIN WITHIN LISTING COMPLIANCE AS WELL, AND, THEN, TWO WHAT SALES LOOK LIKE IN THE NEAR TERMS? I LOVE THE NAMES OF THE VEHICLES THOUGH, OCEAN, HOW CAN YOU NOT LIKE THAT? >> HOPEFULLY THAT HELPS THEM SELL A COUPLE MORE VEHICLES BECAUSE THEY ARE A VERY CASH-STRAPPED COMPANY. A LOT OF QUESTIONS WHAT THEIR FUTURE WILL LOOK DIRECTLY REFLECTED IN THIS SELLOFF THAT WE SAW HERE. SHARES OFF 30%, AND REMEMBER THAT THIS EV-MAKER ALSO ANNOUNCED EARLIER THIS MONTH THAT IT WAS GOING TO BE PAUSING PRODUCTION OF ITS EVs FOR SIX WEEKS TO RAISE UP TO $150 MILLION OF FUNDING HERE AFTER MISSING AN INTEREST PAYMENT. SO THIS COMPANY IS UNDER TREMENDOUS AMOUNT OF FINANCIAL STRAIN, TREMENDOUS AMOUNT OF CONCERN GOING FORWARD ABOUT WHAT EXACTLY IS GOING TO LOOK LIKE. WE KNOW THE COST OF EVs AND WHAT IT TAKES TO MANUFACTURE EVs IS VERY EXPENSIVE. DEMAND SIMPLY NOWHERE NEAR EXPECTATIONS WERE UP TO THIS POINT AND ALSO THE COMPETITION LANDSCAPE GETTING EVEN MORE COMPETITIVE. WE'VE SEEN PRICE SLASHING BY MANY OF THE LARGER PLAYERS WITHIN THE SPACE, SO THE ABILITY FOR FISKER TO COMPETE HERE WITHOUT THE PARTNERSHIP OF A LARGER AUTOMAKER HERE, THERE'S LOTS OF QUESTIONS ABOUT WHAT EVEN ITS FUTURE WILL LOOK LIKE FOR FISKER SPECIFICALLY AT THIS POINT. >> ABSOLUTELY, AND IT DOESN'T HELP FOR THE EV INDUSTRY A REPORT THAT JUST CAME OUT FROM JD POUR THIS MORNING FINDING OUT THAT EV OWNERS WERE UNDER INFORMED OF FASTER TIRE WEAR LEADING TO DISSATISFACTION AND THAT IS CREATING A HIT ON SOME OF THE EV DEMAND THAT WE'VE SEEN RIGHT NOW. >> STILL TO COME HERE ON YAHOO FINANCE, RATES HIGHER FOR LONGER, AT LEAST FOR NOW. WE'LL BE SPEAKING WITH A STRATEGIST ON WHY IT MAY NOT NECESSARILY BE A BAD THING FOR THE MARKET. WE'LL BE RIGHT BACK. >>> STOCKS TAKING A BREATHER HERE THIS MORNING AFTER REACHING RECORD HIGHS LAST WEEK. NOW INVESTORS ARE LOOKING AHEAD TO THIS WEEK'S PCE DATA TO PETTER GAUGE THE TIMING OF THE FED'S FIRST RATE CUT. EARLIER THIS HOUR WE SPOKE TO CHICAGO FEDERAL PRESIDENT AUSTAN GOOLSBEE ABOUT HIS OUTLOOK FOR INFLATION. LET'S TAKE A LISTEN. >> WE'RE IN THIS MURKY PERIOD WHERE WE'VE GOT TO STRIKE A BALANCE OF THE DUAL MANDATE. THE LAW GIVES US THE DUAL JOB OF GETTING PRICES STABILIZED AND MAXIMIZING EMPLOYMENT. >> ALL RIGHT. WE WANT TO BRING IN A GRADIENT INVESTMENT PORTFOLIO MANAGER HERE. KEITH, GRADE TO HAVE YOU. WE JUST HEARD FROM GOOLSBEE EARLIER IN THE HOUR SAYING HE DOESN'T WANT TO SAY A RATE CUT IS ON THE TABLE IN JUNE OR OFF THE TABLE IN JUNE. HOW ARE YOU AS AN INVESTOR LISTENING TO THE LATEST COMMENTARY WE'RE GETTING OUT FROM FEDERAL OFFICIALS AND HOW THAT'S AFFECTING YOUR POSITIONING HERE OVER THE NEXT COUPLE OF MONTHS? >> YEAH. WE'RE STARTING TO LISTEN TO THE FED OFFICIALS. GREAT INTERVIEW YOU HAD THIS MORNING WITH HIM. BOSTIC CAME OVER THE WEEKEND LOOKING FOR ONE FED CUT SO THAT'S GOOLSBEE LOOKING FOR THREE, YOU'RE HEARING ONE, SO WE'RE KIND OF IN THE CAMP THAT WILL BE TWO, MAYBE THREE. GOING INTO THIS YEAR PEOPLE ARE LOOKING FOR SIX RATE CUTS. THE ECONOMY IS DOING WELL, UNEMPLOYMENT IS LOW AND INFLATION IS COMING DOWN. WE DIDN'T SEE THE NEED FOR A CUT SO THAT'S BEEN DIALED BACK DOWN TO THREE, AND WE THINK IT COULD ACTUALLY BE A LITTLE LESS THAN THAT. IF THE ECONOMY STAYS STRONG THERE'S NO REASON TO CUT. AS LONG AS INFLATION IS COMING DOWN AS WELL. A COUPLE OF MIX THINGS WE WANT TO REMIND. PAYING ATTENTION TO A LOT OF ECONOMIC ACTIVITY AND WE'RE LISTENING TO THE FED TO SEE WHAT THEY ARE SAYING. >> KEITH, THAT IN MIND, WHAT'S THE PLAYBOOK FOR A FEWER THAN EXPECTED RATE CUT SCENARIO FOR PEOPLE'S PORTFOLIOS OUT THERE? >> YEAH. STAY DIVERSIFIED. THE MAGNIFICENT SEVEN DROVE THE MARKET. THE MARKET WAS UP 25%. THOSE NAMES ON AVERAGE WERE UP 25%. EACH OUTSIDE OF THE NAMES, THE REST OF THE MARKET WAS UP ABOUT 13% SO WE'RE STARTING TO SEE A BROADENING OF THE OVERALL MARKET WHICH IS A VERY HEALTHY THING SO WE THINK THAT SHOULD BE THE PLAYBOOK GOING FORWARD. YOU STILL WANT TO OWN THE MAGNIFICENT SEVEN BUT PROBABLY DON'T WANT TO OWN THEM ALL. OWN MAYBE FOUR OR FIVE AND WEIGHT THOSE APPROPRIATELY AND ALSO LOOK FOR OTHER VALUES OUTSIDE OF THE HAG ANY OF SENT SEVEN. INDUSTRIALS HAD A NICE RUN. WE THINK FINANCIALS ARE VERY WELL-PLACED GOING FORWARD. WE LIKE HEALTH CARE AS WELL. THAT'S THE PLAYBOOK WE HAVE GOING INTO YEAR END. WE THINK IT WILL BE CHOPPY. THE MARKET IS UP 10% TO START THE YEAR SO WE WOULD NOT BE SURPRISED TO SEE A MILD CORRECTION HERE OF LIKE 5%, BUT GOING FORWARD WE THINK THE MARKETS WILL BE HIGHER BY YEAR END. >> KEITH, WHAT DO YOU THINK IS GOING TO TRIGGER THAT CORRECTION IF WE DO GET A CORRECTION OF ABOUT 5%. >> OBVIOUSLY WE JUST FINISHED Q1 DOWN BEHIND THE BOOKS. WE COULD SEE ANYTHING. WE COULD SEE UNEMPLOYMENT MAYBE TICKING UP IN A FEW MORE WEEKS. SAW A FEW Q1 EARNINGS. IF THEY AREN'T AS GOOD AS EXPECTATIONS, THAT'S A CASE FOR A MINOR SELLOFF. WE COULD SEE THAT IN APRIL, MAY TIME FRAME WHERE MARKETS PULL BACK AND THEN WE GET THE SUMMER RALLY GOING. >> KEITH, LASTLY WHILE WE HAVE YOU HERE. YOU KNOW, AS SO MANY ARE TRYING TO THINK ABOUT WITH THAT NEXT AREA TO EMERGE, WE HEARD SO MUCH TALK COMING IN THIS YEAR, SMALL CAPS AND WHAT THE WAITINGS ARE LOOKING LIKE AT THIS JUNCTURE FOR THE COURSE OF THIS YEAR. WITH YOU ARE YOU SEEING THAT PLAY CONTINUE LEANED INTO OR INVESTORS, ARE THEY A LITTLE BIT WARY ABOUT THAT RIGHT NOW IN. >> SMALL CAPS, GOT TO KEEP AN EYE ON THAT. EVERYBODY IS EXPECTING. THEY HAVEN'T PERFORMED FOR THE LAST COUPLE OF YEARS SO EVERYBODY WANTS TO GET INTO THE AREA THAT HASN'T PERFORMED AND SMALL CAPS ARE CERTAINLY IN THAT LIST. VALUE IS ANOTHER NAME THAT'S KIND OF LOOKED AT FOR UNDERPERFORMANCE, SO OF THOSE TWO WE ACTUALLY LIKE KIND OF THOSE LARGE-CAP VALUE NAMES. WE THINK THERE'S A LOT OF VALUE THERE. WE LIKE THE FINANCIALS AND LARGE-CAP VALUE STOCKS HAVE A LOT OF THOSE SO THAT COULD BE AN AREA THAT DOES WELL. AS FAR AS SMALL CAPS, THE ECONOMY HAS TO STILL REMAIN STRONG WHICH WHICH THINK IT WILL. IT WILL SLOW A LITTLE BIT. IN A SLOWING ECONOMY SMALL CAPS DO GETTER WHEN YOU'RE TRYING TO ACCELERATE OUT OF THE BOTTOM. WE'RE NOT SURE WE'RE THERE YET. OWN SOME SMALL CAP NAMES AND KEEPING AN EYE ON IT. >> THE GRADIENT INVESTMENT PORTFOLIO MANAGER, KEITH, GREAT TO SO YOU THIS MORNING. THANKS FOR TAKING THE TIME. >> THANKS FOR HAVING ME. >> ALL THE MARKET ACTION AHEAD. STAY TUNED. YOU'RE WATCHING YAHOO FINANCE. >>> WALL STREET IS GETTING BULLISH ON MEDIA STOCKS, STOWE RAISE TARGETS ON NETFLIX AND BARCLAYS LISTING DISNEYED A OWEN R OVERWEIGHT. WHAT ARE WE LEARNING ABOUT DISNEY. >> DISNEY HAS BEEN IN THE NEWS A LOT DUE TO THE PROXY BATTLE WHICH WILL ALL CAM TO A HEAD AT THE SHAREHOLDER MEETING. BARCLAYS UPGRADED SHARES FROM OVERWEIGHT TO EQUAL WEIGHT AND RAISING THE PRICE TARGET BY $40 TO $135 A SHARE. CURRENTLY SHARES ARE TRADING AROUND 120 WHICH IMPLIES 15% UPSIDE WHICH IS PRETTY SIGNIFICANT CONSIDERING HOW MUCH THIS STOCK HAS OUTPERFORMED OVER THE PAST YEAR. BUT THE BOLD CASE IS THAT STREAMING MIGHT END UP BEING POSITIVE A FEW QUARTERS EARLIER THAN EXPECTED. BOG IGER HAS CONSISTENTLY REITERATE THAT HAD BY THE END OF FISCAL 2024 STREAMING IS FINALLY GOING TO BE PROFITABLE. WE ALSO HAVE A FEW OTHER TAILWINDS SUCH AS THE STRIKE END BEING, THE HULU CONSOLIDATION, CONTINUED COST CUTS AND ANALYSTS SEE THAT WILL BE MORE IMPACTFUL DOWN THE LINE AS REALLY DISNEY COMMITS TO THIS TURNAROUND PLAN. PART OF THE TURNAROUND PLAN HAS BEEN PRESSURED BY ACTIVIST INVESTORS. NELSON PALTZ HAS BEEN THE MOST VOCAL AND ACCORDING TO CNBC HE WITHHELD HIS VOTE FROM CNBC BOB IGER IN THE PROXY FIGHT SAYING HE BASICALLY IMPLIED HE DOES WANT HIM TO REJOIN THE COMPANY'S BOARD. WE'LL SEE AGAIN THAT ALL COMES TO A HEAD ON APRIL 3. HE IS FIGHTING FOR A SEAT AT THE BOARD ALONG WITH FORMER DISNEY CEO JAY ROSSULO. RIGHT NOW IT SEEMS LIKE DISNEY IS IN A STRONG POSITION CONSIDERING WHERE THE STOCK IS TRADING, CONSIDERING THE POSITIVE RESULTS THAT WE GOT IN THEIR LATEST EARNINGS REPORT, SO WE'LL SEE WHAT SHAREHOLDERS WANT AT THE END OF THE DAY COME NEXT WEEK. >> NETFLIX ALSO THIS MORNING MOVING LOWER BY ABOUT .3%, THAT'S ALSO PART OF A CALL OUT THERE, TOO. >> CITI IS RAISING ESTIMATES TO REFLECT STRONGER GROWTH AND RAISING ITS PRICE TARGET FROM $555 A SHARE TO $660 A SHARE. IT'S GOING TO MAINTAIN ITS NEUTRAL RATING. NOW NETFLIX HAS BEEN REALLY TRYING TO MOVE AWAY FROM SUBSCRIBER ADS, AND THEY HAVE SORT OF BEEN PUTTING THE EMPHASIS MORE ON THE AD-SUPPORTED TIER ALONG WITH THE PASSWORD SHARING CRACKDOWN. SO THEY SEE THAT AS THE SEE DRIVERS MOVING AHEAD HERE, AND CITI REALLY SEES MORE ROOM TO RUN ON THE SUBSCRIBER FRONT. IF YOU THINK OF THE RECENT PROGRAMMING THAT NETFLIX HAS PUT OUT THERE, IT'S BEEN VERY SUCCESSFUL, ESPECIALLY WHEN WE THINK ABOUT INTERNATIONAL, TOO. I MEAN, FOR A FUEL YEAR 2024, THEY ARE ACTUALLY GOING TO INVEST MORE INTERNATIONALLY. THEY ARE REALLY EMPHASIZING LOCALIZED CONTENT THAN DEFENDANT IN CLICK AND THAT'S HAVING A BOON REALLY WHEN YOU THINK ABOUT OVERSEAS GROWTH AND THE POTENTIAL TO REACH SUBSCRIBERS THAT ARE MAYBE IN MARKETS NOT AS MATURE AS THE NORTH AMERICAN MARKETS. A LOT OF THESE STREAMING COMPANIES, THESE MEDIA COMPANIES, THEY ARE PUTTING OUT THEIR NEXT PHASES OF GROWTH. >> RIGHT. >> AND IT SEEMS LIKE ANALYSTS ARE PRETTY BULLISH AS WE SEE THAT PLAY OUT IT WILL HAVE A SIGNIFICANT IMPACT ON THE STOCK PRICE AND THE BOTTOM LINES OF THESE COMPANIES. >> TRACKING ALL THE THINGS THAT ARE ON YOUR SCREEN. THANKS SO MUCH. >> APPRECIATE IT. >> ALL YOUR MARKET ACTION STRAIGHT AHEAD. STAY TUNED. YOU'RE WATCHING YAHOO FINANCE. >>> WELCOME BACK TO YAHOO FINANCE. WE ARE CLOSING IN ON THE END OF TODAY'S MORNING BRIEF, AND WE HAVE A MASSIVE ANNOUNCEMENT. TODAY IS THE LAUNCH OF OUR NEW PERSONAL FINANCE SHOW "WEALTH," AND IT'S HOSTED BY THAT GUY RIGHT OVER THERE. MY WONDERFUL, THE BEST EVER COLLEAGUE BRAD SMITH. >> THE SUPERLATIVES. I'LL SEE ALL OF YOU AT 11:00 EASTERN TIME. WE'LL DIG INTO THE LOOMING TAX DEADLINE, THE BIG UPCOMING SPRING HOME-BUYING SEASON AND THE PACT OF HIGHER FOR LONGER RATES ON YOUR CREDIT CARDS, BUT BEFORE WE GET TO THAT PASSING THE BATON FOR THE 10:00 A.M. SHOW WHICH WILL BE HOSTED, OF COURSE, BY SEANA SMITH ALONGSIDE, I DON'T KNOW IF WE HAVE A DRUM ROLL IN THE CONTROL ROOM. >> I'M HERE. >> ON THE DESK AS WELL, COMING IN AT 5'7", BORN AND RAISED IN SOUTHERN FLORIDA, PARENTS TO THIS CUTIE, BILLY, DO WE HAVE A SHOOT OF BILLY AND OUR GO-TO VOICE ON THE FLOOR OF THE STOCK EXCHANGE, MADDISON. >> IT'S A MIRACLE I DIDN'T FALL DURING THE WALK-IN SO IT'S ALREADY GOING REALLY WELL. >> DO SOMETHING BIG. >> LIKE COME IN LIKE DEION SANDERS, TOUCHDOWN DANCE. >> WHERE'S THE CONFETTI WHEN I NEED IT, GUYS? SO EXCITED. THANKS SO MUCH FOR EVERYTHING YOU'VE DONE FOR ME AND MY TIME HERE. I'M OBSESSED WITH YOU, SEANA, AND, BRAD, I CAN'T WAIT FOR YOU TO TELL ME I MAY NEVER BE ABLE TO BUY A HOME. EXCITED TO TUNE IN FOR MORE. >> WE'LL MAKE SURE. IT WILL GET REALLY WEALTHY DURING THE 11:00 A.M. HOUR. >> NO PRESSURE FOR ME. >> GOT TO MAKE EVERYBODY OUT THERE. >> EXACTLY. >> SO IT'S GOING TO HAPPEN. >> OH, I BELIEVE IN YOU, WHOLEHEARTEDLY. >> WE ALSO HAVE ADVICE FOR YOU AS WELL. >> OH, WOW. >> LIVE, LAUGH, LOVE WAS TAKEN, MAY EARLY SESSION MOVES MAY YOUR NORTH STAR AND CAFFEIN FOR -- >> I LOVE IT. IT'S VERY PISCES I LOVE IT. >> LEO HERE, MY GOODNESS. >> MATT, WE'RE SO EXCITED. I'M PERSONALLY OBVIOUSLY EXTREMELY EXCITED TO HAVE YOU AT THE DESK, BRAD. YOU WILL SORELY BE MISSED IN THE 10:00 A.M. HOUR, BUT THERE'S SO MANY EXCITING THINGS HAPPENING AT YAHOO FINANCE AND THE FACT THAT WE'RE ABLE TO SIT ALONGSIDE EACH OTHER FOR A HOUR FOLLOWED BY BRAD EVERYONE OUT THERETO BUILD THEIR WEALTH GETTING RICHER AND HELPING US ALL FIGURE OUT HOW EXACTLY WE'LL ABLE TO AFFORD HOMES, OUR CHILDREN'S COLLEGE OVER THE NEXT SEVERAL DECADES. IT'S ALL UP TO YOU, BRAD. MY ADVICE, IT'S LAME BUT TRUE BUT HAVE FUN. >> I LOVE IT. >> IN THE 10:00 A.M. MAKE SURE YOU GUYS ARE EQUIPPED WHAT YOU ARE NEED TO KNOW FOR THE TRADING DAY, SO LOTS OF EXCITING THINGS HAPPENING. >> I'M JUST SEEING THE PHOTO OF BILLY OUT THERE. DO WE HAVE THE SHOT IN THE. >> I WOULD LOVE TO SEE. >> WITH THE TONGUE OUT AND EVERYTHING. >> HOW OLD IS BILL? >> THAT'S MY SON. HE JUST TURNED 5 AND WAS ADOPTED FROM CHINA AND MOVED TO NEW YORK CITY ABOUT EIGHT MONTHS AGO, AND HE'S BEEN IN HEAVEN EVER SINCE. >> WE NEED TO GET BILLY IN STUDIO. >> SO YOU HAVE ALL OF THAT HOPEFULLY TO LOOK FORWARD TO ONE DAY. >> BRAD, TIME TO GET OUT OF HERE. >> PEACE, BYE. >> WE HAVE MUCH MORE OF YOUR MARKET ACTION AHEAD ON YAHOO FINANCE. VANESSA MILLS WILL BE STARTING THE 10:00 A.M. HOUR WITH ME. SEE YOU IN A FEW MINUTES. ♪ >>> WELCOME BACK TO YAHOO! FINANCE, I'M SEANA SMITH ALONGSIDE MY NEW CO-HOST FOR THE 10:00 A.M. HOUR, MADISON MILLS. MADISON HAS BEEN ALL OVER YAHOO! FINANCE COVERAGE. WE ARE SURE THAT YOU ARE VERY FAMILIAR WITH MADDIE. SHE'S BEEN TRACKING MARKET ACTION ON THE FLOOR OF THE NEW YORK STOCK EXCHANGE. MADDIE, WELCOME. >> THANK YOU SO MUCH, SEANA. I'M SO EXCITED TO BE HERE, BUT WE GOT A LOT OF NEWS TODAY, SO WE'RE GOING TO JUMP RIGHT IN. WE'RE JUST ABOUT 30 MINUTES INTO TODAY'S TRADE, SO WE'RE GOING TO TAKE A LOOK AT HOW THINGS ARE SHAPING UP SO FAR. STOCKS TRADING SLIGHTLY LOWER TO KICK OFF THIS SHORTENED TRADING WEEK, NOT A LOT OF MOMENTUM TO MOVE OFF OF HERE, BUT ALL THREE MAJOR AVERAGES ARE STILL ON PACE FOR FIVE STRAIGHT MONTHS OF GAINS HERE. SO, NOW, SOME TIME FOR INDIVIDUAL TRENDING TICKERS THIS MORNING, BECAUSE WE HAVE MIZUHO SECURITIES DOWNGRADING TESLA, ROO RIVIAN AND NEO ALL TO NEUTRAL. THEY SAY NEAR-TERM DEMAND AND TIGHTENING LIQUIDITY CREATE CHALLENGES COMING INTO NEXT YEAR. EV OEMs FACE A CATCH-22, JUGGLING PROFITABILITY AND RAMPS AS WELL. >>> AFTER ANNOUNCING A DEAL WITH ITS MAJORITY STOCKHOLDER HERE TO PURCHASE $1 BILLION WORTH OF NEWLY CREATED PREFERRED STOCK. IT'S AN AFFILIATE OF SAUDI ARABIA'S PUBLIC INVESTMENT FUND, AND THE FLOW OF CAPITAL IS GOING TO GIVE THE EV MAKER A BIT MORE RUNWAY. >>> AND WE'RE ALSO WATCHING NOVO NORDISK. THE WEGOVY MAKER IS BUYING CARTIER PHARMACEUTICALS. THAT WILL STRENGTHEN THEIR CARDIOVASCULAR PIPELINE. THE DEAL INCLUDES A HEART FAILURE TREATMENT, CURRENTLY IN PHASE TWO OF CLINICAL DEVELOPMENT. >>> WE WANT TO GET TO SOME BREAKING NEWS. NEW HOME SALES COMING OUT FOR THE MONTH OF FEBRUARY. THAT WAS A DECLINE OF ABOUT 0.3% COMING IN BELOW THE PRIOR READING HERE. NEW HOME SALES FALLING ABOUT 2,000 IN FEBRUARY FROM THE PRIOR MONTH. THE MEDIAN NEW HOME SALE PRICE FOLLOWING 7.6% ON A YEAR OVER YEAR BASIS HERE, JUST OVER 400,000, AND AVERAGE SELLING PRICE AT $485,000. SO, AGAIN, NEW HOME SALES FALLING FOR THE MONTH OF FEBRUARY, FALLING TO 662,000, WHICH WAS JUST BELOW WHAT THE STREET WAS LOOKING FOR HERE, MADDIE. >> THAT'S NOT TOO SURPRISING, GIVEN THAT LAST MONTH, IT WAS A RECORD FOR NEW HOME SALES SINCE FEBRUARY OF 2023. BUT INTERESTING TO NOTE THAT GOOLSBEE, ON OUR PROGRAM, SPEAKING EXCLUSIVELY WITH OUR OWN JEN SHCHONBERGER SAYING THE MAIN PUZZLE IS INFLATION. INTERESTING THAT HE WAS GOING AGAINST THE BOSS, JAY POWELL, WHO SAID HOUSING IS NO BIG DEAL. IT'S GOING TO BE INTERESTING TO SEE HOW THAT CONTINUES TO SHAKE OUT, CONSIDERING THESE NEW HOME SALES, UNDER ESTIMATES, BUT STILL PRETTY STRONG. >>> WE'RE GOING TO MOVE ON TO BOEING. SHARES ARE SLIGHTLY HIGHER THIS MORNING AFTER THE ANNOUNCEMENT OF A MAJOR LEADERSHIP SHAKE-UP H HERE. THE PLANE MAKER'S CEO WILL STEP DOWN FROM THE HELM AT THE END OF 2024. LARRY KELLNER ANNOUNCING HIS DECISION NOT TO STAND FOR RE-ELECTION AT THE COMPANY'S ANNUAL MEETING IN MAY. MIKE BOYD, BOYD GROUP INTERNATIONAL PRESIDENT, IS JOINING US NOW TO DISCUSS. MIKE, THANK YOU SO MUCH FOR BEING HERE. I WANT TO START BY JUST GETTING YOUR TAKE ON THIS NEWS. IS THIS WHAT ACCOUNTABILITY LOOKS LIKE AT BOEING? >> WELL, WHAT IT MEANS IS THEY'VE THROWN A COUPLE PEOPLE UNDER THE BUS, AND THEY'RE GOING TO BE LOOKING FOR A NEW CEO. CALHOUN STAYS FOR ANOTHER EIGHTH MONTHS OR SO. IT'S A START, BUT WHAT THEY NEED IS NOT JUST NEW PEOPLE BUT A WHOLE NEW PHILOSOPHY AND NEW STRATEGY. THAT REMAINS TO BE SEEN, AND UNTIL WE SEE THAT, YOU CAN'T BE TOO EXCITED ABOUT BOEING RIGHT NOW. WE HAVE THE SAME BOARD OF DIRECTORS, AND THAT MAY MEAN THE SAME DIRECTION. AGAIN, THE BODY COUNT DOESN'T COUNT. WHAT REALLY DOES COUNT IS, WHAT'S THEIR NEW STRATEGY GOING TO BE? >> MIKE, WHAT DO YOU THINK THAT NEW STRATEGY SHOULD BE? THE FACT THAT THIS IS THE GOING OF A NEW PHASE FOR BOEING, AT LEAST IT SOUNDS LIKE IT MIGHT, AT THE VERY LEAST, BE A STEP IN THE RIGHT DIRECTION. >> IT'S DEFINITELY A STEP IN THE RIGHT DIRECTION TO START WITH. THEY HAVE TO MAKE SOMETHING OF THAT STEP. RIGHT NOW, WE'RE TALKING ABOUT BOEING'S MANUFACTURING PROCESSES. OKAY, FIX THAT. BUT WHAT ARE THEY MANUFACTURING? THEY'RE MANUFACTURING A NARROW BODY AIRCRAFT THAT'S REALLY OUT OF DATE OR COMING TO BE OUT OF DATE. AIRBUS IS NOW THE NUMBER ONE. IT'S GOING TO BE THAT WAY FOR A WHILE, BECAUSE BOEING SAID, WE'RE NOT GOING TO BRING IN ANOTHER NEW AIRPLANE UNTIL 2030. GUYS, BY THAT TIME, AIRBUS WILL BE MORE THAN JUST NUMBER ONE. SO, WE NEED PEOPLE WHO ARE GOING TO TAKE BOEING, SHAKE IT LIKE A DEAD CHICKEN, AND MOVE IT AHEAD INTO BEING THE LEADER IT USED TO BE, AND THAT'S A LONG WAY OFF. >> MIKE, IF THIS IS THEM MOVING IN THE RIGHT DIRECTION, HOW DO THEY MAKE SURE THAT THEY NAIL THIS PROCESS? >> WHAT WE HAVE -- WHAT THEY HAVE TO DO IS MAKE SURE WHOEVER THEY BRING IN HAS NEW IDEAS, NOT JUST A NEW SEAT WARMER. AND AGAIN, LET'S REMEMBER, THE BOARD OF DIRECTORS HAS BEEN SITTING THERE FOR YEARS, LETTING THIS HAPPEN. MAYBE WE NEED A BULLDOZER IN THAT ROOM AS WELL, BECAUSE THEY'RE THE ONES THAT ARE RESPONSIBLE FOR WHAT'S GONE ON OVER THE LAST 15, 20 YEARS THAT'S PUT BOEING BEHIND THE CURVE. AGAIN, WE'RE GOING TO HAVE TO HAVE WHOLE NEW THINKING, NOT JUST NEW PEOPLE, AND THAT MEANS THINKING AHEAD, PLANNING A NEW PRODUCT LINE, LOOKING AHEAD TO THE FUTURE, AND ALL KINDS OF AREAS IN AVIATION. BOEING HADN'T BEEN DOING THAT. >> WHEN YOU TAKE INTO ACCOUNT WHAT WE COULD EXPECT HERE FROM THE NEW CEO, WE HAVE STEVE MOLLENKOPF, THE FORMER CEO OF QUALCOMM, CHAIR OF THE BOARD, REPLACING KELLNER. WHAT ARE THEY, FROM WHAT WE KNOW ABOUT THE MAKE-UP OF BOEING'S BOARD AS IT STANDS OR HOW IT WILL BE IN JUST ABOUT A MONTH FROM NOW, WHAT ARE THEY GOING TO BE LOOKING FOR IN THEIR SEARCH FOR THAT NEXT CEO? >> ONE HOPES THEY'RE GOING TO BE LOOKING FOR SOMEONE WITH MORE THAN JUST A TRACK RECORD. NOT GOING WITH SOMEBODY WITH A GE OR SOMEWHERE ELSE. WE WANT TO TALK ABOUT PEOPLE WHO WILL WALK IN THERE AND SAY, I KNOW WHAT THIS COMPANY NEEDS, AND HERE'S WHAT IT IS, AND CAN BASICALLY PUT THOSE INTO WORDS, PUT THOSE INTO ACTION. JUST GETTING SOMEONE WHO HAS A GREAT BACKGROUND DOESN'T COUNT. WE'VE ALREADY HAD THAT AT BOEING. WE NEED SOMEBODY WHO HAS A FUTURIST VIEW, AND THAT MAY MEAN GOING OUTSIDE THE INDUSTRY, MAYBE STAYING IN IT, BUT WE DON'T WANT ANOTHER SEAT WARMING AT BOEING FOR AMERICA'S GOOD. WE WANT SOMEONE WHO SEES BOEING AND SEES WHAT IT CAN BE AS A GLOBAL MANUFACTURER AGAIN. >> FOLLOWING UP ON THAT, DO YOU THINK IT'S MORE LIKELY THEY MIGHT GO OUTSIDE OF THE INDUSTRY, THEN, AT THIS POINT? A >> IT'S POSSIBLE. THIS IS A VERY SPECIFIC INDUSTRY. WE'RE TALKING ABOUT THE AIRLINER INDUSTRY. IT DOESN'T REALLY TRANSLATE FROM APPLIANCES OR TRANSLATE FROM, LET'S JUST SAY, MEDICAL SUPPLIES. IT HAS TO BE SOMEONE WHO UNDERSTANDS THE BUSINESS, UNDERSTANDS THE TIME FRAME INVOLVED, UNDERSTANDS THE COMPETITION, UNDERSTANDS WHAT THE CONSUMER'S GOING TO BE DOING, AND ALSO CAN SEE INTO THE FUTURE. THAT'S GOING TO HAVE TO BE SOMEONE WITH A LOT OF TRAITS WE DON'T SEE RIGHT NOW AT BOEING. >> MIKE, THERE'S A LOT OF EYES ON LARRY CULP THIS MORNING AFTER HE WAS ABLE TO REVISE THINGS OVER AT GE. DO YOU THINK HE WOULD CONSIDER THIS POSITION? >> WELL, YEAH, BECAUSE HE'S THE ONE IN LINE TO TAKE OVER THE AVIATION SIDE OF GE, BASICALLY, AT GE AIRCRAFT ENGINES, BUT GE HAS A BACKGROUND TOO OF NOT WANTING TO INVEST IN SOMETHING UNTIL THEY CAN SEE HOW MUCH MONEY THEY'RE GOING TO MAKE FROM IT. IN OTHER WORDS, WE MIGHT BE IN THE ENGINE BUSINESS, BUT WE'RE NOT GOING TO BUILD NEW ENGINES UNLESS WE CAN MAKE MORE AND DO SOMETHING ELSE WITH THE MONEY. LET'S HOPE THAT DOESN'T TRANSLATE FROM GE AIRCRAFT ENGINES INTO BOEING. WE NEED SOMEONE WHO LOOKS AHEAD AND SAYS, WE BUILD AIRPLANES. IT COSTS MONEY TO BUILDING AIRPLANES, WE'RE GOING TO BE THE BEST AT IT. YOU WANT TO GO INTO HIGHER MARGINS? FINE, GO INTO DIAPERS OR SOMETHING. >> I LOVE YOUR ONE-LINERS AT THE END OF ANSWERS EVERY TIME. LET'S TALK ABOUT THE FACT THAT CALHOUN IS GOING TO BE STAYING AT BOEING THROUGH THE END OF THE YEAR. WHY NOT LEAVE NOW? >> THAT WOULD BE MY QUESTION AS WELL. WHY NOT LEAVE NOW? WE DON'T HAVE A GOOD TRACK RECORD THERE, VERY HONESTLY. AGAIN, HE'S ONE OF A STRING OF PEOPLE THAT HAVE BEEN IN THERE WHO BASICALLY HAS PUT BOEING INTO THIS SITUATION. HE PROBABLY NEEDS TO FIND, YOU KNOW, RETIREMENT OR A NEW LINE OF WORK. BUT HE SHOULDN'T BE RUNNING THE SHOW RIGHT NOW, BECAUSE HE HELPED ENGINEER IT INTO THIS POSITION. SO, IF WE PUT ANYBODY ELSE IN THERE, I DON'T THINK IT COULD BE A DETRIMENT TO BOEING. I THINK, REALLY, IT WOULD BE GOOD IF MR. CALHOUN MOVED ON TO ANOTHER CAREER. >> SO, GIVEN THAT, HOW DO YOU THINK THE FAA MIGHT REACT TO THIS NEWS? DO YOU THINK IT WILL BE POSITIVE, EVEN THOUGH WE DO HAVE THIS KIND OF INTERIM PERIOD WITH HIM STAYING AT THE COMPANY? >> WELL, LET'S KEEP IN MIND, THE FAA IS INVOLVED IN THIS TOO. THEY HAD OVERSIGHT, WHICH THEY DIDN'T EXERCISE. THEY LET BOEING GET INTO THE MAX MESS AND THIS OTHER MESS. THEY ACT LIKE THEY JUST CAME OVER THE HILL. THEY WERE SUPPOSED TO BE ENGINEERING OVERSIGHT ALREADY. BUT I THINK THE FAA IS GOING TO KEEP ON DOING WHAT IT'S BEEN DOING, WHAT IT'S ANNOUNCED TO BE DONE. I DON'T THINK THEY'RE GOING TO CARE TOO MUCH WHO REALLY IS AT THE HELM RIGHT NOW. THEY'RE GOING TO BE LOOKING AT MANUFACTURING PROCESSES AND OTHER THINGS TO KEEP THE PUBLIC SAFE. >> ALL RIGHT, MIKE BOYD, ALWAYS GREAT TO GET YOUR INSIGHT. THANK YOU SO MUCH FOR HOPPING ON WITH US THIS MORNING. BOYD GROUP'S INTERNATIONAL PRESIDENT. THANKS, MIKE. >>> ANOTHER CRACKDOWN ON BIG TECH, THIS TIME COMING FROM THE EU, THE COMMISSION GOING AFTER META, ALPHABET, AND APPLE. THE STATEMENT SAYING THAT THE EU HAS "OPENED NONCOMPLIANCE INVESTIGATIONS UNDER THE DIGITAL MARKETS ACT INTO ALPHABET'S RULES ON STEERING IN GOOGLE PLAY AND SELF-PREFERENCING ON GOOGLE SEARCH, APPLE'S RULES ON STEERING IN THE APP STORE AND THE CHOICE FOR SCREEN FOR SAFARI, AND META'S PAY OR CONSENT MODEL." LET'S TALK ABOUT WHAT THIS MEANS FOR THE BIG TECH GIANT, FOR APPLE SPECIFICALLY. FOR THAT, I WANT TO BRING IN JIM, ARGUS DIRECTOR OF RESEARCH HERE. IT'S GOOD TO SEE YOU. I KNOW YOU HAVE A BUY RATING ON APPLE. YOU HAVE THAT BUY RATING, REITERATED THAT BUY RATING FOLLOWING THE LEGAL UPDATE THAT WE GOT FROM THE DOJ LAWSUIT AGAINST APPLE LAST WEEK. HOW ARE YOU LOOKING AT THE FACT THAT -- WHAT DOES THIS POTENTIALLY MEAN TO APPLE'S BOTTOM LINE, THE FACT THAT NOW YOU ALSO POTENTIALLY HAVE MORE PRESSURE COMING FROM THE EU AS WELL? >> GOOD MORNING, SEANA AND MADISON. WHAT I WOULD GENERALLY SAY IS, YOU KNOW, WE FOUND A LOT OF COMPANIES THAT HAVE SPENT A LOT OF TIME IN THE COURTS OVER THE YEARS, SUCH AS QUALCOMM, AND THESE THINGS DO TEND TO DRAG ON FOR A LONG TIME WHEN THE GOVERNMENT FEELS THAT THEY ARE, YOU KNOW, UNFAIR PRACTICES. WHAT I WOULD SAY IS I EXPECT, OVER THE LONG-TERM, AND I DO EXPECT THIS TO TAKE A WHILE TO PLAY OUT, APPLE WILL NEGOTIATE AND GRANT SOME DEGREE OF OPENNESS TO ITS ECOSYSTEM. TA AT THE SAME TIME, THE IMMENSE CORE OF APPLE AND iOS USERS IS GOING TO STAY LOYAL TO THE COMPANY. THAT'S WHAT I'M THINKING RIGHT NOW. THE IMPACTS ON THE BOTTOM LINE ARE A LITTLE HARD TO QUANTIFY. JUST LOOKING AT APPLE'S RESPONSE TO THE DOJ COMPLAINT, THEY BASICALLY DIDN'T SAY, WE DIDN'T DO IT. NOR DID THEY SAY, YOU KNOW, "WE'RE NOT GOING TO DO IT IN THE FUTURE." THEY STOOD ON THEIR PRINCIPLES, HOW THEY OPERATE THEIR ECOSYSTEM, AND SAY, "WE'RE ALWAYS INTERESTED IN THE SECURITY OF OUR DEVICES, FIRST AND FOREMOST." I WOULD LOOK REALLY AT THE APPLE FUNDAMENTALS, AND I WOULD BE WILLING TO DISCUSS THOSE IN A MOMENT AS BEING MORE INDICATIVE OF THE -- I SHOULD SAY, LONG-TERM STOCK DRIVERS. >> I WANT TO STAY ON THE INVESTIGATIONS FOR A SECOND, BECAUSE I'M CURIOUS IF THIS EU INVESTIGATION, TO YOU, FELT LIKE A BIGGER DEAL THAN WHAT WE SAW HERE IN THE U.S.? >> WELL, YOU KNOW, ON A PRELIMINARY BASIS, IT LOOKS AS IF THEY'RE ALSO GOING AFTER THE FACT THAT, YOU KNOW, THE APP STORE SEEMS TOO INCLUSIVE, THAT DEVELOPERS ARE, YOU KNOW, UNDER-COMPENSATED. THAT THERE'S AN EFFECTIVE FIREWALL PREVENTING THE APPS FROM WORKING AS WELL OR WORKING OUTSIDE THE APP STORE. SO, I THINK THERE WILL BE NEGOTIATIONS ALL DOWN THE LINE AS THIS THING UNFOLDS, AND APPLE WILL GIVE A LITTLE AND EU WILL GIVE A LITTLE, AND DOJ WILL GIVE A LITTLE. AND ULTIMATELY, YOU KNOW, THE APPLE -- THE VELVET ROPE WILL BE LET DOWN A LITTLE BIT, THE APPLE ECOSYSTEM WILL BE A LITTLE BIT MORE OPEN, BUT ULTIMATELY, I THINK APPLE WILL DO EVERYTHING IN ITS POWER, AND I THINK IT DOES HAVE SOME POWER TO PRESERVE, YOU KNOW, MOST OF ITS ECOSYSTEM. >> JIM, I'M CURIOUS, AT LEAST WITH THE ANTITRUST CASE HERE IN THE DOJ, THERE HAS BEEN SOME WORRY STARTING TO TRICKLE THROUGH, WHAT APPLE MIGHT BE FORCED TO REVEAL IN TERMS OF THEIR BUSINESS OFFERINGS, BECAUSE WE KNOW THEY'RE TIGHT-LIPPED, AND WE DON'T GET A GOOD LOOK AT THAT. DO YOU THINK THEY'RE GOING TO BE ABLE TO MAINTAIN SOME OF THOSE CONFIDENTIAL ARRANGEMENTS? HOW DO YOU SEE THAT PLAYING OUT? >> YOU KNOW, AGAIN, I THINK THESE ARE THINGS THAT ARE A LITTLE MORE ON THE SIDELINES. APPLE -- I DON'T THINK THERE'S ENORMOUS SMOKING GUNS IN THERE. I DON'T THINK APPLE IS BEHAVING UNETHICALLY. I THINK THEY'VE BEEN OPERATING IN THE SAME WAY THEY'VE ALWAYS BEEN OPERATING, SO I'M NOT EXPECTING BIG REVELATIONS THAT CONFIDENTIALITY IS GOING TO UNMASK SOME, YOU KNOW, HORRENDOUS GOINGS-ON. WHAT I'M FOCUSED ON RIGHT NOW IS THE FACT THAT APPLE SEEMS TO BE TURNING AROUND ITS OPERATIONS. IF YOU LOOK AT 2023, THE STOCK WAS UP 48%, AND YET, AT THIS TIME A YEAR AGO, IN OTHER WORDS, AT THE FISCAL HALF-YEAR MARK, MAX SALES WERE DOWN IN DOUBLE DIGITS IN REVENUE. iPHONE SALES WERE DOWN ABOUT 5%. OVERALL REVENUE WAS DOWN. I KNOW THE STREET CONSENSUS FOR THIS YEAR IS FOR SLIGHTLY DOWN EARNINGS, BUT IF YOU LOOK AT THE REALITY OF THE FIRST HALF OF THIS YEAR, YOU SEE THAT MAX SALE -- MAC SALES ARE UP SLIGHTLY, AND iPHONE SALES ARE UP A FEW PERCENTAGE POINTS, AND THEY'RE DOING WELL IN EVERY REGION, EXCLUDING GREATER CHINA. THAT'S AS EXPECTED. I THINK WE'RE GOING TO SEE A COUPLE SURPRISE QUARTERS COMING FORWARD. AND THE VALUATION-WISE, THE STOCK IS TRADING IN LINE WITH ITS FIVE-YEAR HISTORICAL MULTIPLE AT A TIME WHEN BIG TECH NAMES ARE TRADING AT HUGE PREMIUMS TO WHERE THEY'VE TRADED IN THE PAST FIVE YEARS. >> RIGHT, BUT IT'S INTERESTING TO NOTE THAT APPLE'S STOCK IS DOWN ABOUT 8% YEAR TO DATE STILL, THOUGH, JIM. THANK YOU SO MUCH FOR JOINING US. WE KNOW WE GOT TO LET YOU GO. THAT WAS JIM KELLEHER, ARGUS DIRECTOR OF ROOERJ. >>> WE'RE GOING TO SPEAK TO A STRATEGIST ON WHAT IT MEANS FOR SOME OF THE U.S.'S BIGGEST CHIP MAKERS COMING UP NEXT. >>> IT'S A JAM-PACKED HOUR FOCUSING ON THE BIGGEST MOVERS AND SHAKERS ON WALL STREET. >> THIS IS "MARKET DOMINATION," AND HERE, EVERY DAY IS GAMEDAY. >> WE HAVE ONE HOUR LEFT UNTIL THE MARKET CLOSE. >> IT'S GAMETIME FOR INVESTORS TO MAKE THEIR FINAL PLAYS. >> THE CLOCK IS TICKING, AND WE'VE GOT YOU COVERED WITH OUR QUARTER-BY-QUARTER PLAYBOOK. >> WE'RE BRINGING YOU IN ON ALL THE MARKET ACTION. >> WITH STEP-BY-STEP ANALYSIS OF OUR BIGGEST TRENDING TICKERS. >> WE'LL BRING YOU THE CLOSING BELL AND GET YOU TO THE FINISH LINE. >> THIS IS "MARKET DOMINATION." TUNE IN DAILY FROM 3:00 TO 4:00 P.M. EASTERN. >>> OPPENHEIMER SAYS THAT THE MARKET STILL HAS ROOM TO RUN. THE TEAM ARE RAISING ITS FOUR-YEAR FORECAST FOR THE S&P 500 TO 5,500. HERE WITH THAT CALL IS CHIEF INVESTMENT STRATEGIST JOHN STOLTHIS. IT FEELS LIKE NOT TOO LONG AGO, WE WERE SAYING YOUR PREVIOUS CALL WAS ONE OF THE MOST BULLISH CALLS ON THE STREET. HERE WE ARE AGAIN TODAY, UPPING THE YEAR-END TARGET TO 5,500. WHAT'S GOING TO KEEP DRIVING THE MARKETS TO THE UPSIDE? >> WELL, THIS TARGET IS ABOUT 8% HIGHER THAN OUR 5,200 TARGET, WHICH WE PUT IN LAST DECEMBER. A LOT OF PEOPLE THOUGHT WE WERE OVERLY OPTIMISTIC AT THAT TIME, AND IT'S JUST ABOUT 5% UP FROM MARKET CLOSED ON FRIDAY. WHAT BACKS THIS UPGRADE NO TERMS OF OUR TARGET PRICE FOR THE S&P 500 IS A NUMBER OF THINGS, INCLUDING THE FEDERAL RESERVE HAS BEEN VERY SENSITIVE THIS FED FUNDS HIKE CYCLE IF YOU CONSIDER THEY'VE RAISED RATES 11 TIMES, PAUSED FOR 6 AT HIGH LEVELS RELATIVE TO WHERE WE WERE BEFORE, SO THEY'VE TAKEN THE FED FUNDS RATE FROM ZERO -- A BAND OF 0.0 TO 0.25% TO A BAND OF 5.25% TO 5.5% WITHIN TWO YEARS AND HAVE NOT PUSHED THE ECONOMY INTO A RECESSION. IT'S BEEN GOOD FOR BUSINESS IF YOU TAKE A LOOK AT THE EARNINGS FOR THE S&P 500. THIRD QUARTER AND FOURTH QUARTER OF LAST YEAR. FOURTH QUARTER EARNINGS SEASON JUST ENDED, OKAY? IN ADDITION TO THAT, YOU'VE SEEN THE CONSUMER IN REMARKABLY GOOD SHAPE, EVEN WITH A SLOWING OF THEIR ACTIVITY TO SOME EXTENT, AND ON TOP OF THAT, WHEN YOU LOOK AT THE BROAD AREA, YOU SEE JOB POSTINGS REMAIN REMARKABLY HEALTHY. SO, THE THEMATIC OF RESILIENCE THAT LOOKS LIKE IT WILL RUN FURTHER. WE THINK NEAR TERM, ANY PULLBACK LOOKS TO US LIKE AN OPPORTUNITY FOR INVESTORS TO LOOK FOR BABIES THAT HAVE BEEN THROWN OUT WITH THE BATH WATER, LOOKING TO THE POINT OF, WE MAY EVEN HAVE TO RAISE OUR TARGET AGAIN LATER THIS YEAR BASED ON THIS RESILIENCE THAT HAS REALLY PROVEN TO BE EVEN STICKIER THAN THE INFLATION RATE, BECAUSE THAT HAS HAD CONSIDERABLE SUCCESS BRINGING THE INFLATION RATE LOWER, THOUGH STILL FAR FROM ITS 2% TARGET. >> TALK TO ME, THEN, ABOUT THE BABIES FOR A SECOND HERE. HOW CAN OUR AUDIENCE OF RETAIL INVESTORS BE LOOKING FOR THE RIGHT ONES TO CATCH IF THERE EVEN IS A MOMENT FOR A PULLBACK TO BE HAPPENING IN THIS RUNAWAY MARKET? >> YEAH, WELL, I WOULD SAY, ONE PARTICULAR AREA THAT YOU WANT TO TAKE A LOOK AT IS RECOGNIZING THE FACT -- JUST LOOKING AT TODAY, FOR EXAMPLE. WHERE'S THE SELLING TAKING PLACE? IT REALLY IS TAKING PLACE IN COMMUNICATION SERVICES AND INDUSTRIALS AND INFORMATION TECHNOLOGY. THE TECHNOLOGY SECTOR AND COMMUNICATION SERVICES, WHICH IS PREDOMINANTLY DRIVEN BY ITS TECHNOLOGY COMPONENTS. THOSE SECTORS ARE UP 30-SOME PERCENT FROM THE OCTOBER 27 LOW OF LAST YEAR, AND FINANCIALS ARE UP 31% FROM THAT POINT AS WELL. INDUSTRIALS, UP AROUND 29%. I SEEM TO BE HAVING A PROBLEM HERE. SORRY WITH THE PHONE. I JUST GOT TO TURN THAT OFF. VERY SORRY ABOUT THAT. USUALLY, WE FIND OUR PHONES ARE OFF FOR THIS, AND I HAVE BEEN SO BUSY THIS MORNING. >> HAPPENS TO ALL OF US. NO WORRIES. >> INSTITUTIONAL CALLS. SORRY ABOUT THAT. >> JOHN, NOT AT ALL. WE HAVE ALL BEEN THERE MANY TIMES BEFORE. JOHN, TALK TO ME ABOUT WHAT YOU WERE JUST SAYING A MINUTE AGO WHERE YOU SEE THE POTENTIAL MAYBE TO RAISE THAT TARGET ONCE AGAIN. HOW ARE YOU ASSESSING THOSE RISKS? WE HAVE TALKED TO STRATEGISTS AND SO MANY INVESTORS HERE OVER THE LAST SEVERAL WEEKS AT YAHOO! FINANCE THAT ARE CONCERNED ABOUT VALUATIONS. THEY'RE CONCERNED THAT, HEY, MAYBE WE ARE IN THIS HIGHER FOR LONGER ENVIRONMENT. THAT'S ACTUALLY GOING TO PUT MORE PRESSURE ON EQUITIES DOWN THE ROAD. YET, IT SEEMS LIKE YOU VIEW MORE OF THAT RISK HERE TO THE UPSIDE. >> YEAH, WE WOULD VIEW -- A GREATER RISK TO THE UPSIDE. AS SENTIMENT HAS IMPROVED SIGNIFICANTLY, WE'VE SEEN MASSIVE CAPITULATION BY BEARS SINCE LAST OCTOBER, ALTHOUGH THERE'S STILL PLENTY OF BEARS AROUND. BUT WHAT WE WOULD SAY IS THE EARNINGS HAVE SHOWN TO BE REMARKABLY RESILIENT IN A PERIOD OF FED HIKE CYCLE, AND IN ADDITION TO THAT, TECHNOLOGY HAS ENABLED COMPANIES OVER THE COURSE OF THE LAST 15 YEARS, INCLUDING THE GREAT FINANCIAL CRISIS AND THEN FURTHER WITH THE PANDEMIC CRISIS, TO HELP COMPANIES NAVIGATE OVER TROUBLED WATER IN THE ECONOMY. IT'S BEEN RATHER REMARKABLE, AND A LOT OF THAT HAS TO DO WITH ADVANC ADVANC ADV ADVANCED LOGISTICS, AND FOR THE CONSUMER, THE ABILITY TO FIND COMPETITIVE SOURCES AND FIND PRODUCTS AS WELL, AS A RESULT OF ALL THE TECHNOLOGY GIVES THEM ACCESS TO. SO, WE THINK EARNINGS ARE LIKELY TO SURPRISE TO THE UPSIDE. WE RAISED OUR EARNINGS PROJECTION FOR THE YEAR FROM 240 TO 250. IT IMPLIES AN INCREASE OF MULTIPLE FROM 21.7 TIMES BY YEAR-END TO 22 TIMES, NOT MUCH OF AN INCREASE, BUT WE ALSO SEE HERE A SHIFT, DEMOGRAPHICALLY, AMONG INVESTORS. IT'S NOT ALL ABOUT FEAR AND GREED. THE HOT STOCK PICK OF THE DAY. BUT RATHER, IT'S PLANNING FOR RETIREMENT BY MILLENNIALS, THE GENERATION BEFORE THE MILLENNIALS, THE X'ERS, X GENERATION, AND THE BOOMERS ALL -- AND THEN, AS WELL AS THE FORWARD-LOOKING IF YOU LOOK AT THE YOUNGER GENERATIONS, TO THE MILLENNIALS, EVERYBODY SEEMS TO GET THE MESSAGE THAT SOCIAL SECURITY IS JUST NOT GOING TO BE WHAT IT ONCE WAS FOR PREVIOUS GENERATIONS, AND IN ADDITION TO THAT, THE DEMISE OR THE LACK OF COMPANIES THAT CARRY DEFINED BENEFIT RETIREMENT PLANS LEADS ONE TO CONCLUDE THAT WITH LIFE SPANS, EVEN THOUGH IT'S BEEN SLIGHT LOWERING OF LIFE SPANS POST-COVID, BUT GENERALLY, MUCH GREATER LIFE SPANS THAN PREVIOUS GENERATIONS. FOR PEOPLE WHO ARE GOING TO LIVE LONGER, YOU'RE JUST GOING TO NEED TO SAVE BETTER, INVEST BETTER, AND THAT POINTS TO STOCKS FROM A HISTORICAL PERSPECTIVE AS PERFORMANCE. NO GUARANTEE OF FUTURE RESULTS, BUT OVER MANY YEARS, STOCKS HAVE JUST OUTPERFORMED OTHER ASSET CLASSES TO -- AGAINST INFLATION AND TO TAKE PARTICIPATION WITHIN VERY PRUDENT INNOVATION THAT HAS CHANGED THE MARKETS. >> JOHN, ONE THING THAT HAS CHANGED OVER THE LAST SEVERAL WEEKS, WE WERE TALKING SO MUCH ABOUT, IT ALMOST BECAME CONSENSUS THAT WE WOULD HAVE A SOFT LANDING. NOW THERE'S A LITTLE BIT MORE CONCERN ABOUT THAT HARD LANDING SCENARIO IF, IN FACT, YOU HAVE THE FED CONTINUING ON THIS PATH. WHAT'S YOUR ASSESSMENT OF THAT IN TERMS OF HOW BUMPY THIS LANDING COULD POTENTIALLY BE OVER THE NEXT SEVERAL MONTHS? >> WELL, I CAN TELL YOU, YOU READ OUR STRATEGY, BECAUSE FOR A LONG TIME, WE HAVE SAID THAT WE THINK THAT THE FED CAN AVOID A RECESSION, BUT THAT A BUMPY LANDING WOULD NOT BE CONSIDERED TO BE OUT OF THE QUESTION. THAT SAID, THAT BUMPY LANDING, TO US, LOOKS A LOT LESS LIKELY AS WE BEGIN TO SEE THE CONSUMER AND BUSINESS -- THIS USUALLY WHAT HAPPENS WHEN THE FED IS HAVING POSITIVE EFFECT IN BRINGING DOWN INFLATION, IF NOT YET REACHING ITS TARGET, WHAT HAPPENS IS PEOPLE GET MORE ACCUSTOMED TO HIGHER RATES AND IN THIS CASE, YOU KNOW, IF THE FED FUNDS RATE IS YOUR BENCHMARK FROM WHICH EVERYTHING IS DERIVED IN TERMS OF LENDING, THE 5.25% TO 5.5% ON THE FED FUNDS RATE MEANS IT'S THE END OF FREE MONEY, AND THAT'S WHERE WE WERE BEFORE WITH ZERO TO 0.25 BAND ON THAT. FREE MONEY, NOT A GOOD THING. IT ENCOURAGES SPECULATION. WHEN BOND ISSUERS HAVE TO PAY FOR THE PRIVILEGE OF ISSUING BONDS, WE THINK THAT'S A GOOD THING. NOT ONLY FOR COMPANIES, BECAUSE THEY HAVE TO BE MORE RESPONSIBLE IN PROJECTING THEIR FUTURE, BUT. IN ADDITION TO THAT, IT'S BETTER FOR BOND BUYERS WHO ACTUALLY RECEIVE SOMETHING IN RETURN IN TERMS OF A COUPON. AND THAT IS DERIVED ALL THE WAY THROUGH THE BANKING INDUSTRY AND THROUGH ALL THE SECTORS. >> ALL RIGHT, JOHN, WE'RE GOING TO HAVE TO LEAVE IT THERE BUT REALLY APPRECIATE YOU JOINING US. THANK YOU SO MUCH FOR UPDATING US. >> THANK YOU, SEANA. >>> WELL, WE'RE GOING TO MOVE ON BECAUSE FEBRUARY NEW HOME SALES COMING IN SLIGHTLY LOWER THAN THE REVISED JANUARY REPORT, BUT UP 5.9% FROM A YEAR AGO. THIS COMES AS EXISTING HOME SALES SURGED 9.5% IN FEBRUARY. THAT WAS THE LARGEST MONTHLY INCREASE IN A YEAR. JOINING US NOW TO DISCUSS IS LAWRENCE YUN, NATIONAL ASSOCIATION OF REALTORS CHIEF ECONOMIST. AUSTAN GOOLSBEE TOLD YAHOO! FINANCE EXCLUSIVELY THIS MORNING THAT HOUSING INFLATION IS STILL THE BIGGEST HEADACHE FOR THE FED WHEN IT COMES TO THE INFLATION PICTURE. DID TODAY'S NUMBERS SUPPORT, REFUTE THAT CLAIM, OR JUST KIND OF MEH? >> WELL, YEAH, YOU KNOW, WE SAW THE NEW HOME SALES, NEWLY CONSTRUCTED HOME SALES REACHING THE THIRD BEST SINCE THE 2008 FORECLOSURE CRISIS LAST YEAR, AND THIS YEAR, STILL MOVING ABOVE LAST YEAR. SO, THAT IS IMPLYING THAT THE BUILDERS ARE RAMPING UP CONSTRUCTION. WE NEED MORE SUPPLY. MORE SUPPLY, MORE SUPPLY WILL TAME DOWN THE HOUSING INFLATION. WE NEED TO HAVE MORE MULTIFAMILY CONSTRUCTION IN ORDER TO STABILIZE THE RENT. WE ARE SEEING RENTS ACTUALLY DECLINE IN PLACES LIKE ATLANTA, AUSTIN, BECAUSE OF MASSIVE CONSTRUCTION. YOU DON'T NEED TO RENT CONTROL. EVERY ECONOMIST KNOWS RENT CONTROL IS TERRIBLE POLICY. THE WAY YOU GET THE RENT DOWN IS THROUGH MORE CONSTRUCTION, AND ON SINGLE-FAMILY SIDE, THERE IS STILL MULTIPLE OFFERS HAPPENING, SO WE NEED MORE SUPPLY TO SATISFY THE DEMAND. >> LAWRENCE, WHEN IT COMES TO NEW HOME SALES MAKING UP OR COUNTING FOR OVERALL SALES, WE DID SEE MORE OF AN UPTICK WHEN YOU COMPARE TO NUMBERS THAT WE HAVE SEEN HISTORICALLY SPEAKING. IS THAT GOING TO BE THE CASE ONCE AGAIN THIS YEAR? AND I GUESS, HOW BIG OF A PART OF THAT PIE DO YOU SEE HOME BUILDERS PLAYING IN THIS HOUSING RECOVERY? >> I THINK THE EXISTING HOME SALES MARKET, WHICH GENERALLY COMPRISE 90% OF TOTAL TRANSACTION, I MEAN, IT HAS DIMINISHED SOMEWHAT BECAUSE OF THE LACK OF VIINVENTORY, BUT THE ARE SO MANY HOMEOWNERS WHO ARE STUCK IN THE WRONG HOUSE. THAT IS TO SAY, IN THE PAST TWO YEARS, WE HAVE NOT SEEN LISTINGS POP OUT FOR THE REASONS THAT WE KNOW. PEOPLE LOVE THEIR LOW INTEREST RATE, BUT LIFE MOVED ON. PEOPLE HAVE ADDITIONAL CHILD IN THE FAMILY. THEY NEED LARGER-SIZE HOME. THEY NEED TO TRADE UP. WE HAVE SOME RETIREES WHO WANT TO TRADE DOWN. JOB SWITCHES REQUIRE DIFFERENT COMMUTING PATTERNS. I THINK THERE IS A SIZABLE PENT-UP SELLER, DELAY SELLERS WHO HAVE BEEN POST PPONING, AND POSTPONING, AND THE MORTGAGE RATE, THE NEW NORMAL APPEARS TO BE BETWEEN 6 AND 7%. WE ARE NOT GOING TO SEE 5%. 3 AND 4%, OUT OF THE QUESTION. THEREFORE, I THINK MORE PEOPLE ARE ADJUSTING TO THE NEW NORMAL IN THE MORTGAGE RATES, AND THEY WILL BEGIN TO LIST THE PROPERTY AND MORE LISTING IS GOOD FOR THE MARKET. >> DOES THAT MEAN THAT THE SECOND THE FED CHOOSES TO CUT RATES, WE'RE GOING TOO SEE THIS INSANE GROUND SWELL OF ACTIVITY? >> WE WILL SEE INCREASED ACTIVITY. I'M NOT SURE IF IT WILL BE A HUGE BURSTING, BUT AGAIN, SUPPLY IS NEEDED, BECAUSE WE KNOW THAT MORE BUYERS WILL BE COMING ON TO THE MARKET WHEN THE RATES ARE LOWER, BUT IF WE HAVE MORE SUPPLY, THAT WILL TAME DOWN THE HOUSING INFLATION COMPONENT. >> LAWRENCE, I'M CURIOUS TO GET YOUR PERSPECTIVE ON THIS. NAR SETTLEMENT, NATIONAL ASSOCIATION OF REALTOR SETTLEMENT, CLEARLY VERY FAMILIAR WITH IT. JUST IN TERMS OF HOW MUCH THAT IS GOING TO SHIFT OR SHAKE UP THE HOME-BUYING AND SELLING PROCESS, WHAT DO YOU THINK THE ULTIMATE IMPACT OF THAT RULING OR THAT SETTLEMENT, EXCUSE ME, IS GOING TO BE? >> YOU KNOW, REALTORS ARE SMALL BUSINESS OWNERS. THEY'RE HIGHLY ENTREPRENEURIAL. THEY WILL ADJUST TO THE CIRCUMSTANCE. I HAVE NO WORRIES ABOUT THAT. THE WORRY IS ABOUT FIRST-TIME HOME BUYERS, FIRST-GENERATION HOME BUYERS WHO ARE BARELY SCRAPING FOR THE DOWN PAYMENT, AND NOW, THEY MAY HAVE TO COME UP WITH ADDITIONAL AMOUNT TO GET THE PROFESSIONAL REPRESENTATION, SO IT'S AN AWFUL NEWS FOR POTENTIAL FIRST-GENERATION BUYERS. THEY DON'T HAVE THE CASH. THEY DON'T -- THEIR PARENTS ARE NOT ABLE TO HELP OUT BECAUSE THEY ARE FIRST GENERATION HOME BUYERS, AND THE OTHER GROUP IS VETERANS. THERE IS AN EXPLICIT MORTGAGE RULE THAT SAYS VETERANS CANNOT BYE-BYE PAY BUYER AGENTS. THAT SAYS, YOU HAVE TO DO IT BY YOURSELF, SO THEY MAY BE TAKEN ADVANTAGE OF BY THE HOME SELLERS, OR THEY HAVE TO PAY OUT OF POCKET. I'M VERY CONCERNED WITH SOME OF THE BUYERS OUT THERE, ESPECIALLY FIRST GENERATION BUYERS, VETERAN B BUYERS, WHO MAY HAVE TO STRUGGLE THROUGH THE PROCESS. THE MARKET, I'M SURE IT WILL ADJUST, BUT IT'S CLEARLY A WIN FOR TRIAL LAWYERS. I DON'T KNOW HOW THEY WERE ABLE TO GET THE CLASS ACTION LAWSUIT, BUT THE REALTORS WILL JUST -- BAD NEWS FOR FIRST GENERATION AND VETERAN BUYERS. >> ALL RIGHT, WE'RE GOING TO HAVE TO LEAVE IT THERE, LAWRENCE. THANK YOU SO MUCH FOR JOINING US. THAT WAS LAWRENCE YUN, NATIONAL ASSOCIATION OF REALTORS CHIEF ECONOMIST. >>> WE'RE GOING TO HAVE ALL YOUR MARKETS ACTION AHEAD RIGHT HERE ON YAHOO! FINANCE. STAY TUNED FOR MORE. >>> SHARES OF REDDIT PUSHING HIGHER TODAY, UP ANOTHER 10% IN EARLY ACTIONS. THE THIRD DAY OF TRADING HERE FOR THE COMPANY, THE RECENT GAINS PUSHING REDDIT'S MARKET VALUATION AROUND $8 BILLION. SO, THE QUESTION THAT MANY INVESTORS ARE ASKING OUT THERE IS WHETHER OR NOT REDDIT'S DEBUT OPENED UP THE SO-CALLED IPO WINDOW FOR OTHER COMPANIES THAT ARE LOOKING TO GO PUBLIC. HERE WITH MORE, WHO BETTER TO ASK, YAHOO! FINANCE'S HEAD OF NEWS, MYLES UDLAND. WHAT DO YOU THINK? THERE WAS SO MUCH PUT INTO -- SO MUCH HYPE SURROUNDING REDDIT'S IPO. CLEARLY OUTPERFORMED. DOES THAT, THOUGH, REALLY SIGNAL SOME OF THE ACTIVITY THAT WE COULD SEE? >> YES. >> WHY? >> I THINK THAT'S IT. IF YOU LOOK AT THE WAY THE MARKET IS RECEIVING REDDIT'S IPO, THE MARKET IS SAYING, WE WOULD LIKE MORE NEW ISSUES. IF YOU LOOK AT JOSH'S STORY FROM LAST WEEK ABOUT WHY IT WON'T LEAD TO A BOOM, I THINK THERE'S SOME INTERESTING MECHANICS IN THERE ABOUT HOW MUCH MONEY A LOT OF COMPANIES RAISED OVER THE LAST COUPLE OF YEARS THAT MAKES THEIR NEED FOR MORE CAPITAL GO AWAY. I MEAN, AND I'LL JUST SAY, I KNOW WELL SOME OF THESE COMPANIES THAT RAISED MULTIPLE YEARS, LIKE FIVE, SEVEN YEARS OF RUNWAY, ESPECIALLY GIVEN ALL THE LAYOFFS YOU HAVE THE COVER TO DO RIGHT NOW. SO, YOU KNOW, YOU DON'T NEED TO GO PUBLIC TO GET ANY OF THE CAPITAL RAISED. STRIPE LAST YEAR, MAYBE END OF 2022, THEY RAISED MONEY JUST TO PAY OUT EARLY INVESTORS AND TO PAY OUT EMPLOYEES. SO, THEY WERE ABLE TO GET FUNDING IN THE PRIVATE MARKETS TO OBVIATE THEIR NEED TO GO PUBLIC. REDDIT IS SAYING, IF THIS IS ON YOUR ROAD MAP, YOU NO LONGER HAVE THE EXCUSE TO SAY SOMETHING LIKE, WELL, MARKET CONDITIONS MAKE IT TOO HARD FOR US. IF YOU'RE A MANAGEMENT TEAM THAT'S BEEN GETTING ANY PRESSURE FROM YOUR INVESTORS OR BOARD TO CONSIDER AN IPO, AND YOU'VE BEEN PUTTING IT OFF BECAUSE YOU THINK THE MARKET WON'T BE RECEPTIVE, I THINK THAT STORY IS OVER NOW. >> CLEARLY, YOU KNOW THE COMPANIES VERY WELL, MYLES. DO YOU THINK THAT THE FACTORS THAT ARE DRIVING THE SUCCESS AROUND REDDIT'S IPO, SPECIFIC TO REDDIT, AND THE FUNDAMENTALS OF THAT COMPANY? WHAT FACTORS ARE BROADER MARKET FACTORS THAT WOULD INDICATE THAT OTHER COMPANIES WILL SUCCEED AS WELL? >> I THINK IF THERE'S A FACTOR THAT'S SPECIFIC TO REDDIT, IT'S PROBABLY OUR OLD FRIEND, A.I., AND REDDIT BASICALLY SAYING -- WELL, NOT BASICALLY SAYING -- REDDIT GETTING A BUNCH OF MONEY FROM GOOGLE TO LICENSE ITS BACK CATALOG OF TEXT THAT'S ON THE INTERNET. INTERESTING TO THINK THAT, LIKE, REDDIT SLANG WILL NOW BE FEEDING INTO OUR A.I. ALGORITHMS, BUT WE CAN LEAVE THAT ONE FOR ANOTHER TIME. I THINK THAT THAT'S PARTLY LIKE THE REDDIT-SPECIFIC PART OF IT, BUT TO ME, ULTIMATELY, IN A MARKET WHERE YOU HAVE SO FEW IPOs, AND THERE ARE SO FEW NAMES THAT HAVE COME PUBLIC IN THE LAST SIX AMOMONTHS THAT HAVE TH KIND OF CONSUMER AWARENESS, THIS IS A MAJORITY MACRO PLAY. I MEAN, I THINK IT'S, AGAIN, THERE'S ALL KIENNDS OF DYNAMICSN HERE AROUND THE STOCK SPECIFICALLY, BUT EVERY BANKER WHO IS A PART OF THAT ROAD SHOW, GIVEN WHERE IT PRICED, EVERYONE IS ON CALL TODAY, AND EVERYONE'S IN MEETINGS, BEING, LIKE, LET'S GO, LITERALLY POUNDING THE TABLE AS I JUST DID, BECAUSE THIS IS THE TIME TO GO AND DO IT. THE FED HAS TOLD YOU, RATES ARE NOT GOING HIGHER. WE HAVE SOME VISIBILITY INTO WHAT'S GOING TO HAPPEN THERE. SO, THE COST OF CAPITAL, YOU HAVE A PRETTY GOOD VISIBILITY INTO WHAT THAT'S GOING TO BE, AND THIS IS THE TIME TO GO DO IT. >> THEY NO LONGER HAVE AN EXCUSE. MY FOLLOW-UP QUESTION IS, HOW IMPORTANT IS THAT A.I. COMPONENT OF THIS JUST IN TERMS OF RESONATING WITH INVESTORS OUT THERE? >> I THINK THAT YOU CANNOT GO PUBLIC TODAY WITHOUT AN A.I. PLAY. LIKE, YOU HAVE TO HAVE SOMETHING IN THERE THAT HAS A.I. I MEAN, YOU PROBABLY CAN'T BE PRIVATE TODAY AND STAY PRIVATE AND NOT BE, LIKE, WHAT'S YOUR A.I. STRATEGY? I DON'T THINK THERE'S A SINGLE MEETING IN THE TECH SPACE THAT COMES AND GOES THESE DAYS WITHOUT SOMEONE SAYING, WHAT'S THE A.I. PLAY? DO YOU HAVE AN A.I. STRATEGY? NOW, WHAT DOES THAT MEAN? I DON'T KNOW. BUT I THINK YOU HAVE TO HAVE THAT AS A COMPONENT OF YOUR PITCH, EVEN BETTER IF YOU COULD HAVE A CHIPS PLAY IN THERE, LIKE DERIVATIVE AROUND NVIDIA OR WHATEVER IT IS. LOOK AT THE NAMES ON THE SCREEN. I DON'T THINK THERE'S ANY QUESTION THERE'S A VERY ROBUST -- I MEAN, YOU KNOW, OBVIOUSLY, TWO OF THEM ARE LITERALLY A.I. PLAYS, BUT STRIPE AND SHEIN ARE NOT GOING TO HAVE ANY PROBLEM GETTING A.I. INTO THEIR PROSPECTUS AND WHAT THEY'RE SELLING TO INVESTORS. YOU DON'T HAVE TO BE NEARLY THIS CLEAR WITH WHAT BUSINESS LINE YOU'RE IN TO HAVE SOME SORT OF A.I. PLAY AROUND THAT AS YOU GET INTO IT THIS YEAR. I THINK THE LESSON, ALSO, FOR A LOT OF THESE COMPANIES FROM '21, AS THAT MARKET COOLS DOWN, IS, LIKE, YOU KNOW, I WOULDN'T MISS THE WINDOW. YOU MIGHT HAVE -- IT MIGHT BE -- I MEAN, A LOT OF THE OVERHANG, LOOK AT THE VOLUME THERE IN 2021. OBVIOUSLY, THERE'S GOING TO BE A HANGOVER, BUT THE MARKET WAS -- I MEAN, WE DID UBER, PELOTON, LYFT. WE DID ALL THESE NAMES BEFORE THE PANDEMIC. THOSE WERE 2019 COMPANIES, 2019 VINTAGES, LET'S SAY, SO I THINK THE MARKET RIGHT NOW IS SAYING, '24,' 25 NEED TO LOOK MORE LIKE '18, '19 THAN HAD BEEN PLANNED PREVIOUSLY. >> YOU CAN FIND MORE OF MYLES' COVERAGE ON THE YAHOO! FINANCE PLATFORM, OF COURSE. YOU'RE WATCHING YAHOO! FINANCE. >>> CHINA BLOCKING THE USE OF INTEL AND AMD CHIPS IN GOVERNMENT COMPUTERS AND SERVERS. THIS IS A REPORT FROM THE "FINANCIAL TIMES." THE MOVE, AIMED AT PHASING OUT U.S.-MADE MICROPROCESSORS IN FAVOR OF DOMESTIC OPTIONS, SO PHASING OUT, BEING THE KEY PHRASE. TO BREAK THIS DOWN AND MORE OF THE INVESTMENT IMPLICATIONS, WE WANT TO BRING IN KIMBERLY FOREST. KIMBERLY, IT'S GREAT TO SEE YOU AGAIN. WE'RE STARTING WITH INTEL AND AMD BECAUSE TWO OF THOSE NAMES, AMONG YOUR TOP PICKS, ARE WHERE YOU'RE SEEING THE MOST OPPORTUNITY FROM A PORTFOLIO STRATEGY STANDPOINT. HOW -- WHEN YOU SEE REPORTS LIKE THIS, THE ESCALATION IN GEOPOLITICAL TENSIONS, HOW BIG OF A FACTOR DO YOU SEE THAT POTENTIALLY BEING ON THE PERFORMANCE OF INTEL AND AMD HERE IN THE SHORT-TERM? >> SO, I THINK THAT TODAY'S ANNOUNCEMENT REALLY REFLECTS LAST WEEK'S TIKTOK ANNOUNCEMENT FROM THE U.S. AND THIS IS TIT-FOR-TAT. NOT TIK FOR TOK. OR MAYBE IT IS. I DON'T KNOW. BUT IT REALLY IS THE CHINESE MATCHING THE U.S. IN FORBIDDING SOME OF ITS BIGGEST, MOST USED PRODUCTS. AND I THINK IT'S EXTREMELY UNLIKELY THAT THIS IS ACTUALLY GOING TO BE CARRIED OUT, IF FOR NO OTHER REASON, JUST THE VOLUME THAT AMD AND INTEL SELL INTO CHINA ANYHOW. AGAIN, THIS IS ONLY THE GOVERNMENT PCs, NOT PRIVATE PCs, BUT I WILL SAY, IT DOES HAVE A CHILLING EFFECT WHEN PREMIER XI LOOKS DOWN ON A PRODUCT AND SAYS, WE DON'T WANT YOU TO BUY IT. A LOT OF PEOPLE IN CHINA LISTEN. BUT AGAIN, I THINK THIS IS ALL POLITICAL POSITIONING AT THIS POINT. >> BUT REGARDLESS, THIS IS NOT THE FIRST TIME THAT WE'VE HEARD SIMILAR WARNINGS FROM CHINA. LIKE YOU MENTIONED, REGARDING THE TIKTOK NEWS FROM LAST WEEK, A CHINESE OFFICIAL SAYING THAT CHINA WOULD BE BITING BACK, TO YOUR EXACT POINT THERE. I'M CURIOUS, IS THIS KIND OF JUST THE BEGINNING OF MORE REGULATION THAT WE COULD SEE, AND TO WHAT EXTENT DO YOU THINK THAT IS ALREADY PRICED IN TO SOME OF THESE CHIP PLAYS? >> SURE. WELL, I THINK INVESTORS REALLY HAVE TO BE PRACTICAL AND KIND OF SEPARATE THE POLITICAL AND WHAT POLITICIANS WOULD LIKE TO HAVE HAPPEN FROM THE PRACTICAL. AGAIN, I DON'T THINK THAT CHINA HAS THE MANUFACTURING CAPACITY FOR THESE SPECIFIC CHIPS THAT THEY'RE TALKING ABOUT, ESPECIALLY IN SERVERS, THE HIGHER-END CHIPS. YOU KNOW, CAN THEY FIND SOME REPLACEMENTS? SURE. BUT IS THIS GOING TO BE A MASS OVERHAUL OF HOW THEY BUY THINGS? ON A PRACTICAL MATTER, I CANNOT SEE THAT HAPPENING. AND AGAIN, I DON'T THINK -- DOES TIKTOK GET SHUT OFF IN THE U.S.? ANYBODY THINK THAT? I THINK IT'S HIGHLY UNLIKELY. SO, I THINK THESE ARE REALLY JUST, YOU KNOW, POLITICIANS KIND OF TALKING TO EACH OTHER, AND I DON'T THINK THAT IT CAN BE -- EITHER ONE OF THESE PRODUCTS CAN BE LEGISLATED OUT OF EXISTENCE IN EITHER COUNTRY. >> CLEARLY, YOU HAVE THE GEOPOLITICAL RISK SIDE OF THINGS, AND THEN YOU HAVE WHAT'S PLAYING OUT MORE BROADLY, SPEAKING HERE IN REGARDS TO THE MARKET ACTION A LOT OF THAT TIED TO WHAT WE'RE HEARING FROM THE FED, WHAT EXACTLY THEY'RE SIGNALING IN TERMS OF RATE CUTS. WHAT IS YOUR ADVICE TO INVESTORS? WHAT SHOULD THEY BE DOING AT THIS POINT TO POSITION THEIR PORTFOLIO FOR WHAT COULD BE A PRETTY BUMPY COUPLE OF MONTHS AHEAD? >> SURE. WELL, MY ADVICE IS ALWAYS NOT TO LOOK OVER THE SHORT-TERM. THE SHORT-TERM IS -- IT'S REALLY TRUE THAT ABSOLUTELY ANYTHING CAN HAPPEN. BUT THE LONG-TERM SNOOTS THAT OUT, AND WHY DOES IT? IF YOU HAVE A PORTFOLIO, REGARDLESS OF HOW MANY STOCKS ARE IN IT, WE LIKE GENERALLY 30 STOCKS IS A GOOD NUMBER, WE THINK. IT'S CONCENTRATED POSITIONS. BUT YOU KNOW, NOT OVERWHELMINGLY SO. ANYHOW, I'M GETTING OFF THE SUBJECT HERE. THE BEST THING TO DO IS TO LOOK AT LONG-TERM TRENDS AND HOW THE COMPANIES THAT ARE IN YOUR PORTFOLIO CAN PLAY INTO THEM, AND I THINK THAT IS THE WAY TO GET THROUGH SHORT-TERM CHOPPINESS, AND REMIND YOURSELF THAT THERE'S A LOT OF REACTION THAT GOES ON IN THE SHORT-TERM THAT DOESN'T REALLY SHOW UP IN LONG-TERM GAINS. >> SO, LONG-TERM, THEN, HOW BIG OF A RISK IS NVIDIA'S POTENTIAL PRICING POWER TO SOME OF THESE OTHER PLAYERS? I THINK ABOUT THEIR LATEST CHIP THAT CAME IN LINE WITH ITS PREDECESSOR IN TERMS OF PRICING. IT WAS PRETTY MODERATE. IS THAT A RISK FOR THE AMDs AND INTELS OF THE WORLD? >> NO, I THINK IT'S AN OPPORTUNITY, BECAUSE NVIDIA'S CHIPS GENERALLY ARE REALLY HIGH-PRICED RELATIVE TO THE COMPETITION. AND I THINK THAT REALLY SHOWS WHAT THEY CAN DO. THEY ARE ALWAYS AT THE BLEEDING EDGE OF TECHNOLOGY, WHICH IS GREAT. BUT AS A.I. GETS BUILT OUT, I EXPECT TO SEE COMPANIES PREFERRING A LITTLE LESS COST TO THE NVIDIA CHIPS. AND THAT'S GOING TO OPEN IT UP, NOT JUST FOR INTEL AND AMD, BUT OTHER PROVIDERS TOO. THIS IS A RICH SPACE, AND I THINK IT'S JUST THE BEGINNING OF THE A.I. BUILDOUT. SO, IT'S GOING TO ATTRACT MORE COMPANIES INTO THIS SPACE. >> ALL RIGHT, KIMBERLY, WE GOT TO LEAVE IT THERE, BUT THANK YOU SO MUCH FOR JOINING US. KIMBERLY IS THE BOKEH CAPITAL PARTNERS FOUNDER AND CHIEF INVESTMENT OFFICER. >>> NOW, WE'RE GOING TO HAVE ALL YOUR MARKETS ACTION HERE AHEAD, SO STAY TUNED FOR MORE. YOU'RE WATCHING YAHOO! FINANCE. >>> FORMER PRESIDENT DONALD TRUMP IS UP AGAINST THE CLOCK THIS MORNING, FACING THE DEADLINE TO COVER THE AMOUNT OF HIS CIVIL FRAUD CASE LED BY ATTORNEY GENERAL LETITIA JAMES. LET'S BRING IN YAHOO! FINANCE'S RICK NEWMAN TO GIVE US THE DETAILS. RICK, IT SEEMS LIKE THERE'S A LIQUIDITY ISSUE HERE. WHAT'S GOING ON? >> I GUESS MOST OF US WOULD HAVE LIQUIDITY ISSUES IF WE HAD TO COME UP WITH $455 MILLION OR AT LEAST THE COLLATERAL FOR THAT MUCH AMOUNT OF MONEY. SO, THIS IS THE CIVIL TRIAL IN NEW YORK STATE THAT HAS ACTUALLY BEEN CONCLUDED, AT LEAST THE REGULAR TRIAL. IT IS GOING TO APPEAL, BUT IN THE MEANWHILE, TRUMP HAS TO EITHER COME UP WITH A BOND FOR $454 MILLION, WHICH HE HAS SAID IS "PRACTICALLY IMPOSSIBLE." HE CAN'T DO IT, MAINLY BECAUSE HE CAN'T PROVIDE THE LIQUID COLLATERAL THAT A BOND WRITER WOULD ACTUALLY REQUIRE, OR HE HAS TO COME UP WITH THE CASH, WHICH HE ALSO CAN'T DO, SO HE'S BASICALLY GOING TO ASK -- THIS IS NOW AT THE APPELLATE COURT IN NEW YORK STATE. HE'S BASICALLY GOING TO ASK FOR SOME KIND OF RELIEF, AND THIS COULD GO IN A VARIETY OF DIFFERENT DIRECTIONS. THE COURT COULD SAY, NO, WE'RE NOT PROVIDING ANY KIND OF RELIEF. THE COURT COULD SAY, YOU CAN PROVIDE A SMALLER AMOUNT OR SOME OTHER KIND OF FINDING. JUST TO REMIND EVERYBODY, THIS IS NOT ONE OF THE FOUR CRIMINAL TRIALS TRUMP IS FACING. THIS IS THE CIVIL TRIAL WHERE THE JUDGE HAS ALREADY FOUND HIM GUILTY OF BUSINESS FRAUD IN THAT $454 MILLION PENALTY IS BASICALLY WHAT THE JUDGE CALCULATED TRUMP SAVED BY DECEIVING LENDERS, BY OVERSTATING THE VALUE OF HIS PROPERTIES AND STUFF LIKE THAT. SO, THIS IS AN APPELLATE COURT RIGHT NOW. IT CAN GO ONE LEVEL HIGHER TO THE NEW YORK STATE SUPREME COURT. IT WILL NOT GO TO THE U.S. SUPREME COURT, BECAUSE IT'S A STATE CASE, NOT A FEDERAL CASE. BUT THIS IS JUST ONE PROBLEM DONALD TRUMP HAS, AND IF HE CAN NOT COME UP WITH THE MONEY, AND THE COURT SAYS YOU HAVE TO PAY, ONE OPTION IS THAT THE PROSECUTOR IN THIS CASE, NEW YORK STATE ATTORNEY GENERAL LETITIA JAMES, ACTUALLY STARTS THE PROCESS TO SELL OFF SOME OF TRUMP'S PROPERTIES. SO, THIS HAS MASSIVE IMPLICATIONS FOR TRUMP AND HIS COMPANY, BUT AGAIN, THIS IS CIVIL TRIAL, NOT ONE OF THOSE FOUR CRIMINAL CASES THAT IS STILL PENDING. >> AND ONE THAT WE ARE GOING TO CONTINUE TO WATCH HERE. EXACTLY HOW ALL OF THIS PLAYS OUT. RICK, ALWAYS GREAT TO GET YOU ON HERE. THANK YOU SO MUCH FOR TAKING THE TIME. >> BYE, GUYS. >>> LET'S DO A QUICK CHECK OF THE MARKETS. WE'RE LOOKING AT RED ACROSS THE SCREEN. YOU GOT THE DOW OFF JUST AROUND 121 POINTS. THE S&P, FALLING BACK FROM THOSE RECORD LEVELS. COMING UP, A BIG DAY, MASSIVE DAY HERE ON YAHOO! FINANCE. WE'RE LAUNCHING THE BRAND-NEW SHOW, "WEALTH!" DEDICATED TO ALL YOUR PERSONAL FINANCE NEEDS. THE ONE AND ONLY BRAD SMITH HAS YOU FOR THE NEXT HOUR. STAY TUNED. WE'LL SEE YOU TOMORROW. >>> WELL, BURNING IT, ROWING IT, AND MANAGING IT. TRACKING THE LATEST MARKET MOVES. IT'S MORE THAN YOUR FAVORITE TRENDING TICKERS. ONE DOES NOT SIMPLY BUILD WEALTH WITHOUT CONSIDERING THE ENTIRE FINANCIAL LANDSCAPE. IT TAKES COMMUNITY, AND WE HAVE BUILT ONE FOR YOU. ON TODAY'S SHOW, SOME BIG FINANCIAL DEADLINES ARE ON THE HORIZON, FROM TAX SEASON, TO STUDENT LOANS. WE'LL TELL YOU WHAT YOU CANNOT FORGET, AND BUSY SEASON IS AROUND THE CORNER FOR HOME BUYERS. WE LOOK AT THE HIDDEN COSTS TO CONSIDER. PLUS, WE LOOK AT THE IMPACT OF HIGHER FOR LONGER RATES ON YOUR CREDIT CARD. >>> WELCOME TO "WEALTH," I'M BRAD SMITH, AND THIS IS YAHOO! FINANCE'S NEWEST GUIDE TO BUILDING YOUR FINANCIAL FOOTPRINT. OUR COMMUNITY OF EXPERTS WILL GIVE YOU THE RESOURCES, TOOLS AND TRIPS YOU NEED FROM EXPLAINERS TO JARGON BUSTERS, WE'RE BE YOU EVERY STEP OF THE WAY. WELL, YOUR WEALTH THEME FOR TODAY, FINANCIAL DEADLINES. THE BIG ONE, FIRST AND FOREMOST, TAXES. AMERICA'S TAX RETURNS ARE DUE IN THREE WEEKS. EVEN IF YOU GET AN EXTENSION, ALL PAYMENTS MUST STILL BE PAID APRIL 15th. WE'RE ALSO TALKING REAL ESTATE TODAY AS KEY DATA GIVES US A READ ON THE HOUSING MARKET AHEAD OF THE BUSY SEASON. AND MARRYING THE TWO NEATLY, ESTATE PLANNING. WE HAVE EVERYTHING YOU NEED TO KNOW REGARDLESS OF YOUR TAX BRACKET ON TODAY'S SHOW. LET'S TALK HOUSING. FOR MANY OF US, OUR HOME, IT'S THE MOST VALUABLE ASSET WE'LL EVER OWN. HOME PRICE GROWTH IS DECELERATING BUT NOT FAST ENOUGH. EARLIER IN AN EXCLUSIVE INTERVIEW WITH YAHOO! FINANCE CHICAGO PRESIDENT, AUSTAN GOOLSBEE OFFERED HIS THOUGHTS ON SHELTER COST. >> THE MAIN PUZZLE HAS BEEN ABOUT HOUSING THAT WE'VE GOT TO GET HOUSING INFLATION COMING DOWN CLOSER TO WHERE IT WAS BEFORE THE PANDEMIC. YOU'VE ALREADY SEEN GOODS COME DOWN VERY CLOSE TO WHERE THEY WERE PREPANDEMIC. >> THE U.S. HOUSING MARKET IS HEADING INTO ITS PIVOTAL SPRING SEASON. AS SOME SELLERS WAIT FOR THEIR SWEET SPOT TO LIST PROPERTIES FOR SALE. WE JUST GOT A KEY READ ON THE HOUSING MARKET WITH FEBRUARY'S NEW HOME SALES. BUT YOU MIGHT BE ASKING YOURSELF, WHAT DO I EVEN MEAN BY NEW HOME SALES, AND HOW ARE THEY DIFFERENT FROM OTHER HOME DATA THAT WE GET. YAHOO! FINANCE REPORTER DANI ROMERO HERE WITH THE BREAKDOWN AS PART OF YOUR NONE. >> NEW HOME SALES CAPTURES THE NUMBER OF NEWLY BUILT HOMES SOLD IN A GIVEN MONTH IN THE U.S. OVER THE LAST YEAR, THE NEW HOME MARKET HAS BECOME A DOMINANT PLAYER AS THE RESALE MARKET HAS STRUGGLED TO GAIN SUPPLY. THIS MONTHLY REPORT FROM THE U.S. CENSUS BUREAU AND THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT GIVES US A PULSE OF THE REAL ESTATE SECTOR, AND ITS BROADER ECONOMIC IMPLICATIONS. THE OVERALL FIGURE SERVES AS A BAROMETER FOR ECONOMISTS, POLICY MAKERS AND INVESTORS. NEW HOME SALES REPRESENTS A SMALL PART, ABOUT 10% OF THE HOUSING MARKET. THE NATIONAL ASSOCIATION OF REALTORS REPORTED AND THERE'S EXPECTATIONS THAT THE NEWLY BUILT HOMES MARKET WILL CAPTURE A HIGHER PERCENTAGE OF THE OVERALL HOUSING MARKET AS BUILDERS RAMP UP CONSTRUCTION AND OFFER THOSE JUICY INCENTIVES TO ATTRACT BUYERS. >> WHILE WE HAVE YOU, NOW THAT WE KNOW NEW HOME SALES ARE ULTIMATELY KIND OF ON THE MOVE HERE AND WHEN WE THINK ABOUT THE NUMBERS IN FEBRUARY AND WHAT THEY ACTUALLY MEAN FOR HOME BUYERS, PUT THAT IN CONTEXT FOR US HERE? >> SALES OF NEWLY SINGLE FAMILY HOMES LOST SOME STEAM IN FEBRUARY, DECLINING .3% TO A 662 ANNUAL PACE, THE GOVERNMENT DATA SHOWED TODAY. THE HOUSING MARKET DID GET OFF TO A GOOD START THIS YEAR. WITH THE FEDERAL RESERVE IN NO RUSH TO LOWER BORROWING COSTS. RATES HAVE BEEN ON THE RISE, HOVERING CLOSER TO 7%. AND THIS REPORT REVEALS, REALLY, THE UNBALANCED RECOVERY THAT'S HAPPENING IN THE HOUSING MARKET, BUT IT CONTINUES TO BE A BRIGHT SPOT IN REAL ESTATE AS INVENTORY LAGS IN THE RESALE MARKET, BRAD. >> YAHOO! FINANCE'S OWN, DANI ROMERO, THANKS FOR TEEING UP THE CONVERSATION FOR US. LET'S CONTINUE ALONG THE SAME THREAD HERE, BUYING A NEW HOME IN THE U.S. IS AN EXPENSIVE ORDEAL, AND THAT CERTAINLY WON'T CHANGE NANYTIME SOON THANKS TO HIGHER MORTGAGE RATES AND STICKY INFLATION. THERE'S A SLEW OF HIDDEN COSTS LURKING IN THE SHADOWS OF HOME BUYING. FOR MORE ON THE HIDDEN COSTS OF BUYING A NEW HOME, I'M JOINED BY JADE WARSHAW, THE RAMSEY SOLUTIONS MASTER FINANCIAL COACH AND DEBT ELIMINATION EXPERT. GREAT TO HAVE YOU HERE WITH US THIS MORNING, JAIDE, THANKS FOR TAKING THE TIME. >> THANKS FOR HAVING ME. >> WE WERE BREAKING DOWN NEW HOME SALES DATA. WHAT SHOULD BUY SKERS AND SELLE IN THE MARKET BE ANTICIPATING GOING INTO THE SPRING BUYING SEASON. >> I TELL BUYERS, GO IN WITH A STACKED DECK. THIS IS AN ACRONYM. DID IS FOR DOWN PAYMENT. WE WANT TO PUT DOWN 5 TO 20%. 20% IS GREAT BECAUSE IT WILL HELP YOU AVOID A HIDDEN COST, PRIVATE MORTGAGE INSURANCE. IF YOU WANT TO AVOID THAT, PUT DOWN 20% OR MORE. E IS FOR EARNEST MONEY. WE KNOW WE HAVE A DOWN PAYMENT, BUT EARNEST MONEY IS MONEY WE PUT DOWN USUALLY SOMEWHERE BETWEEN 1 TO 3% OF THE PURCHASE PRICE, AND THIS REALLY JUST SHOWS THAT WE'RE VERY SERIOUS ABOUT BUYING THIS PROPERTY. THE ONLY PROBLEM IS A LOT OF PEOPLE AREN'T READY TO FORK OVER THAT CASH. IT WILL BE ROLLED INTO THE DOWN PAYMENT ONCE THE DEAL CLOSES BUT YOU NEED TO HAVE THE MONEY READY TO PRESENT BEFORE CLOSING. AND OF COURSE YOU WANT TO COME THROUGH WITH CLOSING COSTS, ANYWHERE BETWEEN 3 TO 5%, AND KEEP IN MIND HIDDEN COSTS, P APPRAISALS, INSPECTIONS, PUTTING UP SEVERAL MONTHS OF PROPERTY TAX AHEAD OF TIME. >> FOR THOSE EXPECTED TO ENTER INTO THE HOUSING MARKET, THERE'S A LOT OF FOCUS THIS TIME ON FIRST TIME HOME BUYERS AND WHERE THEY COULD POTENTIALLY BE LOOKING, NEW HOMES OR WHETHER THAT'S EXISTING. WHERE ARE WE KIND OF EXPECTING THAT TO NET OUT GOING INTO THIS SEASON? >> YOU KNOW, AT THE END OF THE DAY, I ALWAYS TELL PEOPLE, DON'T LET THE MARKET DETERMINE IF YOU'RE READY TO BUY. YOU DETERMINE WHETHER YOU'RE READY TO BUY. THAT MIGHT BE A NEW BUILD. A LOT OF THEM ARE OFFERING. THEY HAVE THE ABILITY TO OFFER INCENTIVES, RIGHT, WHETHER IT'S A SLIGHTLY LOWER MORTGAGE FEE OR INTEREST RATE, BUT JUST BE CAREFUL BECAUSE A LOT OF TIMES IT'S ONLY FOR A LIMITED TIME, AND AS TIME GOES ON, THE INTEREST RATE GOES UP TO A NORMAL LEVEL. SO BE CAREFUL WITH THAT. BUT AT THE END OF THE DAY, I WANT TO MAKE SURE EVERYBODY UNDERSTANDS, THE BEST WAY TO ENTER INTO BUYING A HOUSE IS TO MAKE SURE YOU'VE GOT NO DEBT, THREE TO SIX MONTHS OF EXPENSES SAVED, AND THEN AS A FIRST TIME HOME BUYER, IF YOU CAN SCROUNGE UP 5% TO PUT DOWN, I'M VERY HAPPY FOR YOU. >> FOR THOSE CONSIDERING SELLING THEIR HOME IN ORDER TO GET INTO A NEW HOME, WHAT ARE THE IMPORTANT THINGS TO REMEMBER ABOUT THAT SETTLEMENT AND THEN THE PURCHASE TOWARDS THE NEXT SHELTER OR THE NEXT DOMICILE OR HOME OR THE PAD, WHATEVER THEY'RE CALLING IT. IT'S JUST NEW. >> THE CRIB, THAT'S RIGHT. SO, BRAD, WHAT I WOULD TELL PEOPLE IS AS TEMPTING AS IT IS, WHEN WE'RE LOOKING AT NEW HOUSES ON THE MARKET, AND READY TO SELL OUR HOUSE, I WOULD ALWAYS SAY, IF YOU'RE GOING TO SELL YOUR HOUSE AND BUY ANOTHER HOUSE, MAKE SURE YOU DO IT ON A CONTINGENT OFFER. I DO NOT WANT PEOPLE SAYING, I KNOW THAT MY HOUSE WILL SELL EVENTUALLY. I'M JUST GOING TO JUMP INTO THE NEW HOUSE. IF I HAVE TO FLOAT TWO MORTGAGES, NO PROBLEM. THAT'S A SCARY POSITION TO BE IN. MAKE SURE THAT YOU HAVE SOLD AND CLOSED ON YOUR PREVIOUS HOME BEFORE YOU BUY ANOTHER HOME OR IF YOU ARE GOING TO MAKE AN OFFER ON A NEW HOME, MAKE SURE IT IS CONTINGENT ON THE SALE OF YOUR PREVIOUS HOME. >> JADE, AS WE'RE LOOKING ACROSS THE COUNTRY RIGHT NOW, AND EVALUATING SOME OF THE DATA AND WHERE THE HOT SPOTS ARE, WHERE THE HOT LOCATIONS THAT ARE SEEING THE MOST BIDS, SEEING THE MOST FLOW INTO THE MARKET THAT YOU'RE TRACKING. >> WELL, LISTEN, WE KNOW THAT SOUTH FLORIDA IS POPPING OFF. I'M A NATIVE OF SOUTH FLORIDA AND THOSE PROPERTY RATES HAVE GONE THROUGH THE ROOF, YOU KNOW, PEOPLE HAVE DOUBLED THE WORTH OF THEIR HOUSE, AND OF COURSE FOR THE SELLERS, THIS IS A GREAT TIME, BUT ESPECIALLY IF YOU'RE A SELLER AND YOU'RE MOVING OUT OF SOUTH FLORIDA INTO A LESS EXPENSIVE MARKET. IF YOU'RE IN SOUTH FLORIDA AT THE MOMENT, IT'S TOUGH FOR YOU. PROPERTIES ARE SO EXPENSIVE. HERE IN THE NASHVILLE AREA, WE'RE SEEING THE EXACT SAME THING. I LIKE TO TELL CONSUMERS, THERE'S A LOT OF FACTORS THAT GO INTO THIS. I DON'T WANT PEOPLE TO GET FRUSTRATED BECAUSE THEY LIVE IN A MARKET. AS LONG AS YOU ARE WILLING TO GO INTO A WIDER RADIUS, YOU CAN ALWAYS FIND LESS EXPENSIVE PROPERTIES. THE FURTHER OUT OF THAT RADIUS YOU GO, THE MORE AFFORDABLE PROPERTIES THAT YOU'RE GOING TO FIND IN THE AREA. KEEP SEARCH SING. >> LASTLY, I DO A COMMAND F OR CONTROL F FOR THOSE ON MACINTOSH SYSTEMS, WHEN WE HEAR FROM HOME DEPOT AND LOWE'S AND THEIR EARNINGS CALLS AND TRANSCRIPTS COME OUT. THE DO IT YOURSELFERS OUT THERE. THEY MIGHT BE LOOKING TO SPEND A LITTLE BIT MORE RIGHT NOW TO BEEF UP THEIR EXISTING HOME SO THEY CAN LIST IT ON THE MARKET. WHAT ARE SOME OF THE HACKS TO MAKE SURE THAT YOU GET MORE VALUE WHEN YOU GET THAT HOME APPRAISED? >> LISTEN, I THINK IT'S SO IMPORTANT TO MAKE SURE THAT R Y HO -- YOUR HOUSE IS READY FOR SALE. THE KEY THING TO REMEMBER IS NOT TO GO IN DEBT IN ORDER TO DO SO. DO THE UPGRADES AT THE SPEED OF CASH. AT THE END OF THE DAY, IF YOU ARE A HOMEOWNER, THE BEST THING YOU CAN DO IS REMEMBER, HOME IS AN ASSET, IT'S A WAY TO BUILD WEALTH. IT'S A VEHICLE TO BUILD WEALTH. DO YOUR VERY BEST NOT TO PULL THE EQUITY OUT IN THE FORM OF HOME EQUITY LINES OF CREDIT. ALL YOU'RE DOING IS ROBBING FROM YOUR FUTURE SELF AND TRUST ME, WHEN YOU GO TO SELL, THE LAST THING YOU WANT TO REALIZE IS THAT YOU PULLED OUT ALL OF YOUR EQUITY BECAUSE YOU NEEDED TO, I DON'T KNOW, GIVE YOURS A NEW BATHROOM THAT DID NOT GIVE YOU THE RATE OF RETURN THAT YOU THOUGHT IT WAS. >> JADE WARSHAW, RAMSEY SOLUTIONS, MASTER FINANCIAL COACH, DEBT ELIMINATION EXPERT, AND DEBT FREE ENTREPRENEUR. ALL THINGS WITH THE KEYS OF THE CRIB THERE. APPRECIATE IT. >> THANKS, BRAD. >> TALK SOON. >>> REDDIT SHARES RISING IN THE WAKE OF LAST WEEK'S DEBUT. WE WANT TO FIND OUT IF YOU'RE BUYING. THERE YOU SEE ON THE YOUR SCREEN WHERE WE ASK REDDIT USERS IF THEY PLAN TO INVEST IN THE COMPANY NOW THAT IT'S PUBLIC. MAKE SURE TO FOLLOW US ON X, FORMERLY TWITTER, TO GIVE YOUR VOTE. WE'LL GIVE YOU THE ANSWER TO THE POLL AT THE END OF THE HOUR, AND GIVE YOU THE PROS AND CONS OF INVESTING IN A NEWLY PUBLIC COMPANY. >>> PLUS, MORE IMMINENTLY, AFTER THE BREAK, TAX SEASON IS COMING TO A CLOSE ON APRIL 15th. YAHOO! FINANCE'S REBECCA CHEN IS GOING TO JOIN US TO BREAK TOWN WHAT YOU NEED TO KNOW ABOUT FILING. DON'T MISS TAX TIME COVERAGE. >>> IT'S THE END OF MARCH, AND YOU CAN NO LONGER PROCRASTINATE FILING YOUR TAXES. BEFORE LOGGING INTO YOUR TAX SOFTWARE OR LOOKING FOR A CPA NEAR YOU, THERE'S FIVE THINGS TO DO TO MAKE THIS EASIER. GATHER TAX DOCUMENTS, PULL LAST YEAR'S RETURNS. THINK ABOUT LIFE CHANGES, LOOK FOR FREE FILINGS, AND OF COURSE, IF YOU CAN'T MAKE THE DEADLINE, MAKE AN EXTENSION. THESE ARE QUICK AND EASY TO DO ITEMS HELPING YOU FILE THE MOST ACCURATE AND REWARDING RETURNS WHILE SPENDING THE LEAST AMOUNT OF TIME AND MONEY. YAHOO! FINANCE 2024 TAX WEEK WILL GUIDE YOU WHERE TO START, HOW TO START, AND WHAT TO DO TO MAKE FILING RETURNS AS PAINLESS AS POSSIBLE. >>> APRIL 15th IS COMING UP FAST, AND HOPEFULLY YOU'RE AWARE THAT'S TAX DEADLINE DAY. THE GOVERNMENT RECEIVES NEARLY $5 TRILLION OF TAX REVENUE IN A YEAR, AND THE IRS WILL ISSUE CLOSE TO $650 BILLION OF REFUNDS. BUT LET'S FACE IT, SOMETIMES DOING TAXES JUST ISN'T THAT SIMPLE. YAHOO! FINANCE'S REBECCA CHEN JOINS US TO BREAK EVERYTHING DOWN HERE. WHAT DO WE NEED TO KNOW? >> THANKS, BRAD. SO THAT'S CORRECT. TAX SEASON IS ONLY THREE WEEKS AWAY OR TAX DEADLINE IS ONLY THREE WEEKS AWAY. YOU HAVE TO GET ALL OF YOUR STUFF DONE BY APRIL 15th, AND IT'S APPROACHING REALLY QUICKLY. HERE WE REALLY WANTED TO PROVIDE THREE QUICK AND SIMPLE TIPS TO HELP YOU GET STARTED IF YOU HAVEN'T YET. THOSE ARE REALLY, BEFORE YOU GET STARTED, GATHER ALL OF YOUR TAX DOCUMENTS. AND ALSO, THINK ABOUT IF YOU HAVE ANY LIFE CHANGES THIS YEAR. AND THE LAST THING IS DETERMINE HOW YOU ARE GOING TO FILE YOUR TAXES. NOW, LET ME WALK THROUGH EACH OF THEM IN A LITTLE BIT GREATER DETAIL. THE FIRST ONE ABOUT GATHERING YOUR TAX DOCUMENTS. IT'S THE USUAL. GATHER YOUR W2s, WHETHER YOU HAVE ONE OR MULTIPLE, MAKE SURE YOU HAVE ALL OF THEM. AND 1099s, THEY CAN BE FROM THE BANK FOR DIVIDENDS AND SPINTERE, THE GOVERNMENT OR FREELANCING INCOME YOU HAVE DONE OUTSIDE OF WORK. MAKE SURE YOU HAVE ALL OF THESE BEFORE DOING YOUR RETURN. ANOTHER TIP WE HAVE RIGHT HERE IS GATHER OR HAVE YOUR LAST YEAR'S RETURN. MOST PEOPLE DON'T REALLY THINK ABOUT THEIR LAST YEAR'S RETURN WHEN THEY ARE DOING THEIR RETURNS THIS YEAR, BUT THIS IS ACTUALLY A VERY HELPFUL THING TO HAVE. YOU DID ALL OF THAT WORK LAST YEAR, YOU SHOULD USE IT TO PIVOT AND HELP YOU DO THIS YEAR'S RETURN. THAT KIND OF BRINGS ME TO MY NEXT POINT. WHEN YOU'RE LOOKING AT YOUR LAST YEAR'S TAX RETURN, THINK ABOUT WHAT HAS CHANGED IN YOUR LIFE THIS YEAR. DID YOU GET MARRIED, DID YOU HAVE A KID, OR DID YOU EVEN BUY CRYPTOCURRENCY. ALL OF THIS IS VERY IMPORTANT BECAUSE THEY MAKE A DIFFERENCE ON YOUR RETURN. BEFORE YOU GET STARTED, REALLY SIT DOWN AND THINK ABOUT WHAT HAVE YOU DONE THIS PAST YEAR THAT IS DIFFERENT FROM PREVIOUS YEAR AND HOW THAT CAN IMPACT YOUR TAX RETURNS. THIS IS GOING TO GO A LONG WAY BECAUSE YOU DON'T WANT TO DO YOUR RETURN AND REMEMBER THAT, OH, YOU FORGOT TO CLAIM A CHILD'S CREDIT. SO IT'S DEFINITELY REALLY HECHL HELPFUL TO THINK ABOUT ALL OF THAT BEFORE YOU GET STARTED. >> ABSOLUTELY. >> THINK ABOUT THE LAST TIP. I FEEL LIKE A LOT OF PEOPLE DON'T REALLY THINK ABOUT THAT. IT'S EXTREMELY IMPORTANT, AND THEN THE LAST ONE IS REALLY HOW ARE YOU GOING TO FILE YOUR RETURN. NOW, THIS SOUNDS A LITTLE BIT SILLY BECAUSE MOST PEOPLE PROBABLY JUST SIT DOWN, LOG INTO THE SOFTWARE THEY USED LAST YEAR AND JUST GO WITH IT. BUT REALLY THINK ABOUT IT. AND WHAT I MEAN IS THINK ABOUT IF YOU QUALIFY FOR FREE FILE. THERE ARE A COUPLE OF DIFFERENT OPTIONS THAT YOU COULD USE TO FILE YOUR TAXES FOR FREE INSTEAD OF PAYING FOR A SOFTWARE. IRS HAS A LOT OF PARTNERS WHERE IF YOU QUALIFY, YOU CAN FILE YOUR TAXES FOR FREE WITH THESE SOF SOFTWARE PARTNERS. BUT IRS HAS STARTED SOMETHING CALLED A DIRECT FILE. THIS IS BEING RULED OUT. IF YOU ARE ELIGIBLE, OR IF IT'S SOMETHING YOU'RE INTERESTED IN, LOG ON TO THE IRS WEB SITE, AND SEE IF YOU CAN DO YOUR TAXES DIRECTLY WITH THE IRS WITHOUT HAVING TO GO THROUGH ANY COMMERCIAL SOFTWARE. AND AFTER YOU'VE DONE ALL OF THIS, IF YOU FEEL LIKE YOU ARE JUST NOT READY, YOU DON'T HAVE TIME TO DO IT THIS YEAR, AND YOU WANT TO PUSH IT BACK, DO YOUR EXTENSION BY APRIL 15th, AND THEN YOU CAN FILE YOUR TAXES FOR A LATER DATE. ONE THING TO KNOW, THOUGH, FILING YOUR TAXES ON EXTENSION, YOU STILL HAVE TO PAY BY APRIL 15th. MAKE SURE YOU DO THAT. >> NOTHING IN LIFE IS FREE, BUT FREE FILING SOUND NICE. THANKS FOR LAYING IT OUT. THE DEADLINE FOR THIS YEAR'S TAX SEASON IS THREE WEEKS AWAY. WITH INFLATION STILL ON THE STICKY SIDE, SOME MAY BE STRUGGLING TO PAY. WHAT IS YOUR NEXT BEST OPTION HERE, LET'S BRING IN KYAHOO! FINANCE MOLLY MOREHEAD ON SET. WHAT'S THE NEXT BEST OPTION. >> GO AHEAD AND FILE. IF YOU OWE TAXES, CAN'T PAY YOUR BILL, YOU KNOW YOU CAN'T PAY, FILE YOUR RETURN. YOU'RE GOING TO HAVE A PENALTY FOR FAILURE TO FILE AND ONE FOR FAILURE TO PAY, BUT FAILURE TO FILE IS WORSE. IT'S 5% PER MONTH OF THE UNPAID TAXES THAT YOU OWE, SO IF YOU HAVE A $500 TAX BILL, YOU'RE TACKING ON $25 A MONTH, EVERY TIME, IF YOU HAVEN'T FILED YOUR RETURN. SO GO AHEAD AND FILE, AND WE CAN TALK ABOUT HOW THE IRS WILL HELP YOU GET THAT BILL PAID. >> CERTAINLY, SO LET'S TALK ABOUT THOSE PENALTIES JUST A LITTLE BIT MORE. MOLLY, WHAT PENALTIES PEOPLE CAN FACE, POTENTIALLY, IF THEY DON'T PAY THEIR TAXES ON TIME, AND HOW THEY CAN GO ABOUT REMEDIATING THAT AS WELL. >> SO THE FAILURE TO PAY PENALTY IS JUST .5% PER MONTH OF WHAT YOU OWE. IT'S A SMALL AMOUNT. YOU KNOW, YOU DON'T WANT TO BE ACCRUING MORE ON THIS UNPAID BILL. BUT IF YOU CAN'T PAY, THEN YOU HAVE OPTIONS. YOU CAN DO A SHORT-TERM PAYMENT AGREEMENT THAT GIVES YOU ABOUT SIX MONTHS TO PAY OFF THAT BILL. AND THEN YOU HAVE A LONG-TERM THING CALLED AN INSTALLMENT AGREEMENT, WHERE YOU CAN WORK IT OUT DIRECTLY WITH THE IRS. AND YOU HAVE UP TO SIX YEARS. SO THESE ARE SORT OF THE PAYMENT PLANS, LIKE YOU WOULD THINK OF, THAT THE IRS OFFERS. IN MORE EXTREME CASES, IF THERE'S LIKE SOME DOUBT ABOUT THE TAXES THAT YOU OWE, OR IF YOU'RE IN REALLY BAD STRAITS, AND YOU ARE NEVER GOING TO BE ABLE TO PAY THIS, THE IRS WILL ENTER A SPECIAL PLAN WITH YOU, BUT THOSE ARE FOR THE RARE CASES. IF YOU REALLY JUST WANT THE IRS OFF YOUR BACK, YOU CAN PAY YOUR TAXES WITH YOUR CREDIT CARD, TAKE OUT A PERSONAL LOAN, AND THEN YOU'RE IN GOOD WITH THE GOVERNMENT, BUT YOU JUST DEAL WITH YOUR LENDER TO PAY OFF WHAT YOU OWE. >> HOW DOES THE IRS HELP TAXPAYERS WHO MAY HAVE FALLEN ON A HARD TIME AND HAVE OTHER FINANCIAL ISSUES THEN? >> WELL, I MEAN, THEY'RE GOING TO -- THEY'RE NOT GOING TO LEAVE YOU ALONE. >> SURE. >> SO, AGAIN, FILE YOUR RETURN. FILE IT ON TIME. BUT THEY'RE GOING TO GIVE YOU ALL OF THESE DIFFERENT WAYS TO MAKE IT MAKE GOOD, AND NOT, YOU KNOW, END UP WITH A TAX LIEN OR SOME SCARY THING LIKE THAT. >> YAHOO! FINANCE'S OWN, MOLLY MOREHEAD, LIVE IN STUDIO, THANK YOU. >>> FORGET EVERYTHING YOU KNOW ABOUT ESTATE PLANNING. IT'S NOT JUST FOR THE WEALTHY. HOW TO PLAN REGARDLESS OF YOUR TAX BREAK ET, ACKET SO YOU CAN MOST OUT OF YOUR MONEY. . >>> HOW DO YOU TRANSFER BOTH MONEY AND PROPERTY WITHOUT GETTING POMMELLED BY TAXES, WHETHER YOU'RE JUST SETTING UP A STANDARD WILL OR WANTING TO GIFT OVER $13 MILLION, WE'RE DIVING INTO THE MOST TAX EFFICIENT WAYS TO PASS ON SOME OF YOUR WEALTH TO OTHERS. AND WE'RE AMIDST THE GREAT WEALTH TRANSFER WHERE $80 MILLION IS TRICKLING FROM THE BABY BOOMERS TO THE YOUNGER GENERATIONS THROUGH 2045. TO BREAK DOWN THE BEST ESTATE PLANNING STRATEGY FOR YOUR TAX BRACKET, WE'VE GOT SAM PETRUCI, GREAT TO HAVE YOU HERE IN STUDIO. FIRST AND FOREMOST, FOR THOSE WHO HEAR ABOUT THE GREAT WEALTH TRANSFER AND ARE TRYING TO DO SO APTLY AND EFFICIENTLY FOR THEIR FAMILY AS WELL, WHAT IS STEP NUMBER ONE THAT THEY NEED TO IMPLORE? >> WELL, THANK YOU FOR HAVING ME, BRAD, AND CONGRATULATIONS ON THE NEW SHOW. >> THANK YOU. >> FIRST AND FOREMOST, I THINK IT'S REALLY IMPORTANT FOR YOUR ENTIRE AUDIENCE TO UNDERSTAND SOME BASIC ROLES, AND SO IF YOU DIE IN 2024, THE ESTATE TAX EXEMPTION THAT IS TO SAY THE AMOUNT YOU CAN PASS FREE OF ESTATE TAX IS $13.61 MILLION OR ROUGHLY $27 MILLION PER MARRIED COUPLE. SECONDLY, THAT NUMBER IS AT AN ALL TIME HIGH, PRIMARILY BECAUSE OF TWO REASONS, FIRST WAS THE PASSAGE OF THE TAX CUTS AND JOBS ACT IN 2017, WHICH INCREASED THAT NUMBER FROM ROUGHLY $5.45 MILLION TO $11 MILLION. ADDITI ADDITIONALLY THAT NUMBER IS INDEXED FOR INFLATION. THAT $11 MILLION NUMBER IS $13.61 MILLION. OR AGAIN, ROUGHLY 27 MILLION PER MARRIED COUPLE. THIRDLY, WHAT'S MOST IMPORTANT IS THAT CLIENTS, YOUR AUDIENCE SHOULD UNDERSTAND THAT THAT NUMBER WILL REVERT TO PRIOR LEVELS AT THE END OF 2025. WE ESTIMATE IT WILL RETURN TO ROUGHLY A $7 MILLION NUMBER PER INDIVIDUAL OR 14 MILLION PER MARRIED COUPLE. >> IT'S NOT JUST ALL CASH THAT'S GETTING PASSED ON. SAY IT'S AN ASSET LIKE REAL ESTATE, WHAT ARE THE KEY THINGS TO REMEMBER THERE? >> ANY TYPE OF PROPERTY. IT COULD BE YOUR CASH, YOUR STOCKS, YOUR BONDS, YOUR REAL ESTATE, YOUR ART WORK, YOUR AUTOMOBILES, ALL OF THAT GOES INTO CALCULATING YOUR TAXABLE ESTATE. >> AND SO FOR DIFFERENT INCOME BRACKETS THEY MAY BE SAYING, OKAY, HOW DO I MAKE SURE I'M DOING IT EFFICIENTLY WHETHER I'M AT THE HIGH END OF AN INCOME BRACKET OR ON THE LOWER END OF THE SCALE AS WELL. >> FOR SMALLER CLIENTS, YOU HAVE TO STICK TO THE BASICS. IT'S IMPORTANT FOR EVERYONE TO HAVE BASIC ESTATE PLANNING DOCUMENTS, WILLS AND IRREVOCABLE TRUSTS, LIVING WELLS, HEALTH CARE PROXIES, TO NAME AGENTS TO ACT ON YOUR BEHALF IF YOU FIND YOURSELF INCAPACITATED. SECONDLY, IT'S REALLY IMPORTANT TO TITLE YOUR ASSETS CORRECTLY AND NOT A LOT OF PEOPLE PAY ATTENTION TO THIS, AND I CAN'T TELL YOU HOW MANY CLIENTS HAVE NOT PROPERLY DESIGNATED BENEFICIARIES OF THEIR RETIREMENT PLANS OR LIFE INSURANCE POLICIES. WE ENCOURAGE CLIENTS AT SMALLER LEVELS TO ALSO MAXIMIZE THEIR RETIREMENT CONTRIBUTIONS, WHICH IS $7,000 FOR THE YEAR, 8,000 IF YOU'RE 50 OR OLDER, AND THOSE CLIENTS WILL OFTEN FIND THEMSELVES IN A SITUATION WHERE IT'S IMPORTANT TO PURCHASE TERM LIFE INSURANCE FOR INCOME REPLACEMENT PURPOSES. AND THEN LASTLY, TO FUND 529 COLLEGE SAVINGS PLANS TO SAVE FOR THEIR CHILDREN'S FUTURE EDUCATION. >> ALL OF THAT SAID, THE EXEMPTIONS HERE, A LOT OF PEOPLE ARE GOING TO LOOK FOR THE LOOPHOLES AND CORRECTLY SO. ARE THERE CERTAIN EXEMPTIONS WHEN IT COMES TO THIS TYPE OF PLANNING AS WELL? >> ABSOLUTELY. AND SO SOME BASIC RULES, YOU CAN TRANSFER AN UNLIMITED AMOUNT OF PROPERTY TO U.S. CITIZENS SPOUSE WITHOUT ESTATE OR GIFT TAX. YOU CAN TRANSFER AN UNLIMITED AMOUNT OF PROPERTY TO CHARITABLE ORGANIZATIONS DURING LIFE OR AT DEATH WITHOUT ANY TYPE OF TRANSFER TAX. YOU CAN PAY ANYONE'S TUITION OR MEDICAL EXPENSES TO THE SERVICE PROVIDER. THAT'S NOT A TAXABLE TRANSFER AND THROUGH THE ANNUAL EXCLUSION, YOU COULD GIFT $18,000 PER YEAR PER BENEFICIARY, WITHOUT ANY TYPE OF TRANSFER TAXATION. >> SAM, THANK YOU SO MUCH FOR TAKING THE TIME IN STUDIO WITH US. >> GOOD TO BE HERE. THANK YOU SO MUCH FOR HAVING ME, BRAD. >>> TURBULENCE FOR THE AVIATION INDUSTRY TODAY WE NEED TO KEEP AN EYE ON. BOEING CEO DAVE CALHOUN STEPPING DOWN AT THE END OF THIS YEAR. IT'S PART OF A BROADER MANAGEMENT SHAKE UP AT THE AEROSPACE COMPANY WITH THE CHAIRMAN AND COMMERCIAL AIRPLANE UNIT, THAT HEAD IS ALSO LEAVING. IT HAS BEEN A TOUGH YEAR FOR BOEING AFTER A PANEL OF ONE OF THE AIRCRAFTS FLEW OFF MID FLIGHT, THE AIRLINE INDUSTRY WOES WON'T END THERE AND DO NOT. UNITED AIRLINES SHARES LOWER TODAY AS WELL. THIS COMES AS THE FEDERAL AVIATION ADMINISTRATION INCREASES ITS OVERSIGHT OF THE CARRIER AFTER A SPATE OF NEWLY A DOZEN SAFETY INCIDENTS. AUTHORITIES ARE CONSIDERING DRASTIC MEASURES AT THE AIRLINE, LIKE DELAYING FUTURE PLANS, AND PREVENTING THE AIRLINE FROM ADDING NEW ROOTS. THAT'S ACCORDING TO BLOOMBERG HERE. FOR MUCH MORE ON THE BIG QUESTIONS AHEAD, FIRSTLY, THE MANAGEMENT SHAKEUP HITTING BOEING. WHAT WILL THAT ULTIMATELY LOOK LIKE AND WILL IT APPEASE REGULATORS, AND BOEING'S LARGEST UNION SEEKING A BOARD SEAT. THAT'S ACCORDING TO THE FINANCIAL TIMES. HOW COULD CHA THAT CHANGE THE TRAJECTORY IN THE COMING YEAR. IT'S NOT JUST THE AIRPLANE MANUFACTURERS WE NEED TO WATCH. AFTER NEARLY A DOZEN SAFETY INCIDENTS. COULD INCREASED OVERSIGHT SPILL OVER TO OTHER BIG PLAYERS IN THE AIRLINE INDUSTRY? >>> LET'S TALK ABOUT ANOTHER MAJOR THING WE'RE TRACKING TODAY. HIGHER FOR LONGER IS MORE THAN A TERM FOR THE FEDERAL RESERVE. ECONOMISTS AND HIGH LEVEL ACADEMICS. IT MATTERS TO ALL OF US IN DIFFERENT WAYS. ATLANTA FED PRESIDENT RAPHAEL BOSTIC ADDED FUEL TO THE DEBATE. HE ADDED JUST ONE RATE CUT THIS YEAR. THIS CAME AFTER THE FED HELD RATES AT A MORE THAN 20 YEAR HIGH. THAT'S BETWEEN 5 1/4 AND 5 1/2%. NOW, CONSUMERS ARE FEELING THOSE RATES, ESPECIALLY THOSE WITH CREDIT CARD DEBT. TO BREAK DOWN HOW TO DEAL WITH HIGH INTEREST RATES ON YOUR CREDIT CARD BILL, WE'VE GOT YAHOO! FINANCE'S VERY OWN KENDALL LITTLE. WHAT DO PEOPLE NEED TO CONSIDER IN A HIGHER RATE. >> THE FED'S DECISION TO KEEP RATES HIGH MEANS THAT CARD HOLDERS ARE GOING TO SEE A CONTINUATION OF THE HIGH RATES THAT THEY HAVE SEEN KIND OF ACCUMULATING OVER THE PAST COUPLE OF YEARS. SO THAT MEANS IT'S MORE IMPORTANT THAN EVER TO PAY DOWN YOUR BALANCES AS MUCH AS POSSIBLE. SAY, FOR EXAMPLE, YOU HAD A 16% INTEREST RATE ON YOUR CARD TWO YEARS AGO, IF THAT'S UP TO 22% NOW, THEN THAT COULD MEAN HUNDREDS MORE IN INTEREST CHARGES PER YEAR, DEPENDING ON YOUR BALANCE. >> SO AS WE'RE CONTINUING TO TRACK THIS, OF COURSE IT COMES WITH THE MINDSET THAT THERE HAS BEEN MORE CREDIT CARD DEBT THAT'S BEEN ACCUMULATING HERE. WHERE DO WE SIT RIGHT NOW ON THE KIND OF SCALE OF HISTORY, IF YOU WILL? >> YEAH, CREDIT CARD DEBT IS DEFINITELY ON THE RISE, AND THAT MEANS THAT, YOU KNOW, FOR CONSUMERS WHO HAVE CREDIT CARD DEBT, IT'S MORE IMPORTANT THAN EVER TO PAY THOSE BALANCES DOWN. >> KENDALL LITTLE OF YAHOO! FINANCE FAME, JOINING US HERE ON SET. THANK YOU SO MUCH, KENDALL, APPRECIATE IT. >>> COMING UP, FEAR AND MONEY, LIKE OIL AND WATER, THEY DON'T MIX. I'LL HAVE A PANEL OF EXPERTS JOINING ME TO SHARE HOW YOU CAN MANAGE FEAR AND EMOTION WHEN INVESTING. >>> ALSO AHEAD, AN INTRODUCTION TO MACRONOMICS, WITH ROSS MACK. HERE'S A TASTE OF WHAT YOU CAN EXPECT. >> A TAX REFUND ISN'T A MAGICAL BONUS THAT THE GOVERNMENT WAS FEELING GENEROUS ABOUT GIVING YOU. IT WAS YOUR MONEY IN THE FIRST PLACE. YOU WERE PAYING THE GOVERNMENT TOO MUCH IN TAXES THE PRIOR YEAR. YOU WERE GIVING THE GOVERNMENT AN INTEREST FREE LOAN. BEFORE YOU TRY TO MAKE THAT MONEY AND MAKE A BIG PURCHASE, ASK YOURSELF, WOULD YOU HAVE MADE THAT PURCHASE THE YEAR PRIOR. EXACTLY. LET'S TALK ABOUT WHAT YOU SHOULD DO WITH IT. IT'S A JAM PACKED HOUR, FOCUSING ON THE MOVERS AND SHAKERS. >> THIS IS MARKET DOMINATION, AND HERE EVERY DAY IS GAME DAY. >> WE HAVE ONE HOUR LEFT UNTIL THE MARKET CLOSE. >> IT'S GAME TIME FOR INVESTORS TO MAKE THEIR FINAL PLAYS. >> THE CLOCK IS TICKING, AND WE'VE GOT YOU COVERED WITH OUR QUARTER BY QUARTER PLAYBOOK. >> WE'RE BRINGING YOU IN ON ALL THE MARKET ACTION. >> WITH STEP-BY-STEP ANALYSIS OF OUR BIGGEST TRENDING TICKERS. >> AND EXPERT INSIGHT INTO THE DAY'S BIGGEST MHEADLINES. >> WE'LL BRING YOU THE CLOSING BELL AND GET YOU TO THE FINISH LINE. >> THIS IS "MARKET DOMINATION." >> TUNE IN DAILY FROM 3:00 TO 4:00 P.M. EASTERN. FRDS >>> THE TAX MAN COMETH, TAX SEASON IS WELL UNDERWAY. IN FACT, YOU HAVE A LITTLE LESS THAN A MONTH LEFT UNTIL THAT APRIL 15th DEADLINE TO FILE YOUR 2023 TAXES. WE WANT TO GET TIPS FOR THE LATE FILERS. IF YOU'RE FILING RIGHT NOW, YOU WOULD BE CONSIDERED LATE. JOINING ME NOW TO HELP SIMPLIFY YOUR FINANCES, MA MAC-NOMICS FOUNDER, ROSS MAC. WHAT SHOULD THEY BE WRITING OFF IN THEIR TAXES? >> BRAD, THANKS FOR HAVING ME. WHEN IT COMES TO SELF-EMPLOYED INDIVIDUALS, YOU GOT TO UNDERSTAND THERE ARE A NUMBER OF WRITEOFFS THAT ARE QUALIFIED THAT THE GOVERNMENT ALLOWS YOU TO WRITE OFF. YOUR START UP AND YOUR OPERATIONAL COSTS. RIGHT? IT COSTS TO START YOUR BUSINESS, AS WELL AS YOU GOT TO UNDERSTAND THAT EVERYBODY LIVED THROUGH THE COVID LOCKDOWN. GE GUESS WHAT, MOST ENTREPRENEURS LIVE IN THEIR HOME AND THEY HAVE A HOME OFFICE. YOU HAVE THE HOME OFFICE DEDUCTION. YOU HAVE MARKETING COSTS, YOU HAVE TRAVEL COSTS, VEHICLE EXPENSES, BUT I WOULD OBVIOUSLY SAY, YOU KNOW, CONSULT WITH A CPA, A KWQUALIFIED CPA. >> I'M GOING TO ASK THAT CPA IF I CAN COUNT COOKING FOR ME AS A PERSONAL CHEF, LIVE-IN CHEF. I DON'T KNOW, I MIGHT HAVE TO PAY MYSELF FOR MY SERVICES. ONCE OUR VIEWERS FILE TAXES, IF THEY RECEIVE A REFUND, WHAT SHOULD THEY DO WITH THE MONEY? >> I LOVE THAT QUESTION, RIGHT. I THINK, ONE, FIRST UNDERSTAND, A TAX REFUND ISN'T JUST A MAGICAL BONUS THE GOVERNMENT GAVE YOU. IT WAS YOUR MONEY THAT YOU WERE PAYING TOO MUCH TO THE GOVERNMENT THE PRIOR YEAR. WHEN IT COMES TO THIS QUESTION, THE FIRST THING I WANT YOU TO DO IS MAKE SURE YOU DON'T HAVE ANY BAD DEBT. WHAT I MEAN BY THAT IS THAT 20 PLUS PERCENT APR CREDIT CARD YOU HAVE. SECONDLY AFTER THAT, ASSUMING YOU DON'T HAVE CREDIT CARD DEBT, THE NEXT THING I WANT YOU TO DO IS ENSURE YOU HAVE A FULLY FUNDED EMERGENCY FUND, AND THIRDLY, I WOULD RECOMMEND STARTING TO INVEST: YOU COULD ASK WARREN BUFFETT, YOU COULD ASK MYSELF. THE FIRST INVESTMENT IS THE ONE THAT'S THE MOST DIVERSIFIED, THAT BEING INDEX FUNDS, S&P 500, NASDAQ, ET CETERA. >> AND WITH THAT INVESTMENT MIND SET AS WELL, WHAT IS THE TIME HORIZON THAT YOU TYPICALLY TELL FOLKS TO CONSIDER? >> THE IDEA IS WHEN YOU BUY AN ASSET, YOU WANT TO BE HOLDING IT FOR FIVE-PLUS YEARS. YOU GOT TO TAKE INTO ACCOUNT YOUR TIMING. ONE OF THE GREATEST THING THEY SAY IS, YOU KNOW, YOU CAN'T TIME THE MARKET. INSTEAD, YOU WANT TO FOCUS ON TIME IN THE MARKET. WHEN YOU'RE BUYING AN ASSET, YOU'RE LOOKING TO BE A LONG-TERM HOLDER. I LOOK AT IT FIVE PLUS YEARS. >> ROSS MAC, THANK YOU SO MUCH, APPRECIATE IT. >> THANK YOU. >>> LET'S SWITCH GEARS AND TALK REDDIT, SHARES MOVING HIGHER IN THE WAKE OF LAST WEEK'S PUBLIC DEBUT. WHAT ARE SOME PROS AND CONS OF INVESTING IN A NEWLY PUBLIC COMPANY. YAHOO! FINANCE'S RACHELLE AKUFFO IS HERE WITH A BREAKDOWN OF WHAT YOU NEED TO KNOW BEFORE INVESTING IN AN IPO. HEY, RACHELLE. >> INDEED, AND REDDIT IS A GREAT ONE TO THINK OF. THIS IS A COMMUNITY EVENT WHEN IT COMES TO INVESTING. JUST BECAUSE YOU LIKE A COMPANY DOESN'T MEAN YOU SHOULD INVEST IN IT. LET'S BREAK DOWN SOME OF THE TOP THREE THINGS YOU SHOULD THINK ABOUT. NUMBER ONE, DO YOUR RESEARCH ON THE COMPANY BEFORE YOU EVEN THINK ABOUT VENTURING INTO THIS SP SPACE. NOW, A COMPANY GOING PUBLIC DOESN'T NECESSARILY MAKE IT A GOOD INVESTMENT. A GOOD PLACE TO LOOK ARE S.E.C. FILINGS, PLATFORMS, WHERE YOU CAN BREAK DOWN THINGS INCLUDING VALUATION, SHARE PRICE, THE BUSINESS MODEL, THE FINANCIAL HEALTH AND THE GROWTH POTENTIAL AS WELL, AND SOMETHING ELSE THAT YOU CAN ALSO SEE A LITTLE BIT MORE ABOUT THE COMPANY IS AN IPO ROAD SHOW. BEFORE A COMPANY IPOs THEY GO TO A FEW SELECT MAJOR CITIES AND REALLY TRY AND SELL YOU ON SOME OF THE BEST THINGS ABOUT THE COMPANY. YOU GET TO SEE HOW IT WORKS IN PERSON AND GET A LOOK AT THE KEY PERSONNEL INVOLVED IN THIS AS WELL. >> CONTINUE, NUMBER ONE, BUT PERHAPS A LAYER DEEPER HERE, SHOULD INVESTORS EXPECT VOLATILITY, THEN? >> YOU DEFINITELY SHOULD. ITS USUALLY PAR FOR THE COURSE THAT THERE IS GOING TO BE SOME VOLATILITY. THE MARKETS NEED A BIT OF TIME TO DIGEST IF THE STOCK IS PRICED CORRECTLY. AND THAT CAN DEPEND ON SUPPLY AND DEMAND. THAT CAN DEPEND ON MACROECONOMIC BACK DROP AS WELL. THAT'S SOMETHING TO KEEP IN MIND. ALSO, YOU SOMETIMES CAN LOOK FOR BILL WHALE INVESTORS HERE. WE SAW CATHIE WOOD, NOTED GROWTH INVESTOR THERE, BOUGHT 10,000 REDDIT SHARES ACROSS HER TWO ETFs. THIS IS A RISKY INVESTMENT. THERE IS GOING TO BE SOME S VOLATILITY, NOT JUST IN THE SHORT-TERM, BUT WHEN THE LOCKOUT PERIOD ENDS. THAT'S UP TO ABOUT 180 DAYS WHERE A LOT OF INITIAL PEOPLE WHO BOUGHT THE IPO SHARES ARE ABLE TO SELL THEM. EXPECT VOLATILITY, AND KEEP IN MIND WHAT THIS MEANS FOR YOUR OVERALL FINANCIAL PLAN. DON'T GO PUTTING YOUR TAX REFUND INTO REDDIT IF THAT'S NOT WHERE YOU NEED TO BE. AND MOST IMPORTANTLY, CHECK THAT YOU'RE ELIGIBLE, JUST BECAUSE SOMETHING IS IPO, DOESN'T MEAN YOU'RE ELIGIBLE. FIND A GOOD BROKERAGE FIRM THAT ALLOWS FOR IPOs, AND SOMETIMES THEY COULD BE MINIMUM REQUIREMENTS IN TERMS OF THE MINIMUM AMOUNT OF MONEY OR THE NUMBER OF TRANSACTIONS. CHOOSE THE WRITE BROKERAGE FIRMS. VANGUARD IS ONE OR FIDELITY OR IF YOU LIKE YOUR ONLINE, YOU KNOW, VERSIONS, YOU HAVE ROBINHOOD OR E TRADE AS WELL. THIS IS ONE PART OF YOUR PORTFOLIO. DON'T PUT ALL OF YOUR EGGS IN ONE BASKET. DO YOUR HOME WORK. THAT IS MUCH MORE IMPORTANT. FUNDAMENTALS OVER FOMO, BRAD. >> LASTLY, WE TEASED IT AT THE TOP OF THE SHOW. WE CAN'T LET THE VIEWERS GO WITHOUT LETTING THEM KNOW THE RESULTS OF THE POLL. WHAT DO WE GOT? >> YOU WOULD BE SURPRISED. WE DID ASK CURRENT REDDIT USERS IF THEY WERE WILLING TO INVEST. IT WAS AN OVERWHELMING NO. AND THAT WAS ACTUALLY QUITE SURPRISING. THERE WAS SOME BUZZ ABOUT SOME OF THESE, THE AFFINITY SHARES THAT WERE AVAILABLE FOR PEOPLE THAT WERE BIG USERS IN REDDIT, BUT 68% SAYING, NO, I DON'T PLAN TO. JUST GOES TO SHOW, JUST BECAUSE YOU LIKE A COMPANY AND USE PRODUCTS AND SERVICES DOESN'T MEAN YOU WANT TO INVEST IN IT. TAKE EVERYTHING WITH A GRAIN OF SALT. >> SAD SNU, IT WASN'T EVEN CLOSE THOSE NUMBERS HERE. SNU IS THE MASCOT, THE NAMED MASCOT FOR REDDIT OUT THERE WHO WE SAW RINGING THE OPENING BELL. THANK YOU SO MUCH. WE APPRECIATE IT. >>> COMING UP, EVERYONE, WE'LL DIVE INTO WHY FEAR AND EMOTION, EVEN MORE THAN THE MARIAH CARRY EMOTION ARE THE ENEMIES OF LONG-TERM INVESTING. WE HAVE TWO GREAT PANELISTS TO TELL YOU HOW TO OVERCOME THOSE OBSTACLES. MUCH MORE ON "WEALTH" AFTER THE BREAK. YOU'RE WATCHING YAHOO! FINANCE. >>> IT'S THE END OF MARCH, AND YOU CAN NO LONGER PROCRASTINATE FILING YOUR TAXES. BEFORE LOGGING INTO YOUR TAX SOFTWARE OR LOOKING FOR A CPA NEAR YOU, THERE ARE FIVE THINGS ALL TAXPAYERS CAN DO TO MAKE THIS EASIER. GATHER TAX DOCUMENTS. PULL LAST YEAR'S RETURNS. THINK ABOUT LIFE CHANGES. LOOK FOR FREE FILINGS AND, OF COURSE, IF YOU CAN'T MAKE THE DEADLINE, MAKE AN EXTENSION. THESE ARE QUICK AND EASY TO DO ITEMS HELPING YOU FILE THE MOST ACCURATE AND REWARDING RETURNS WHILE SPENDING THE LEAST AMOUNT OF TIME AND MONEY. YAHOO! FINANCE 2024 TAX WEEK WILL GUIDE YOU THROUGH WHERE TO START, HOW TO START, AND WHAT TO DO TO MAKE FILING RETURNS AS PAINLESS AS POSSIBLE. >>> IT'S A JAM-PACKED HOUR, FOCUSING ON THE BIGGEST MOVERS AND SHAKERS ON WALL STREET. >> THIS IS MARKET DOMINATION, AND HERE EVERY DAY IS GAME DAY. >> WE HAVE ONE HOUR LEFT UNTIL THE MARKET CLOSE. >> IT'S GAME TIME FOR INVESTORS TO MAKE THEIR FINAL PLAYS. >> THE CLOCK IS TICKING, AND WE'VE GOT YOU COVERED WITH OUR QUARTER BY QUARTER PLAYBOOK. >> WE'RE BRINGING YOU IN ON ALL THE MARKET ACTION. >> WITH STEP BY STEP ANALYSIS OF OUR BIGGEST TRENDING TICKERS. >> AND EXPERT INSIGHT INTO THE BIGGEST HEADLINES. >> WE'LL BRING YOU THE CLOSING BELL AND GET YOU TO THE FINISH LINE. THIS IS MARKET DOMINATION. >> TUNE IN DAILY FROM 3:00 TO 4:00 P.M. EASTERN. >> NOW, IF YOU'RE GOING TO USE YOUR TAX REFUND TO HELP BUILD YOUR INVESTMENT PORTFOLIO, WHAT IS THE BEST WAY TO GO ABOUT IT. WELL, OUR NUMBER ONE TIP, KEEP FEAR AND EMOTION OUT OF IT. AT THE END OF THE DAY, MARKETS ARE MADE BY HUMAN BEINGS AND LARGELY DRIVEN BY SENTIMENT, SO HOW DO YOU KEEP A STEADY HEAD IN THIS INVESTING CYCLE. HERE TO TELL US, WE'VE GOT NEIL, THE TIAA CHIEF INVESTMENT OFFICER OF THE WEALTH MANAGEMENT DIVISION, PLUS, MICHAEL GYATT, THE TITLE FINANCIAL GROUP PORTFOLIO MANAGER. THANK YOU SO MUCH FOR TAKING TIME IN STUDIO WITH US. THIS IS COMPLEX. OBVIOUSLY YOU HAVE SOME EMOTION WHEN IT COMES TO YOUR PORTFOLIO, BUT HOW DO YOU GO ABOUT REMOVING FEAR AND EMOTION FROM YOUR INVESTMENT DECISIONS. MICHAEL, I'LL BEGIN WITH YOU. >> DON'T FOLLOW MY X ACCOUNT. I TEND TO BE PRETTY EMOTIONAL. IT'S IMPORTANT THAT WE'RE DISTINGUISHING BETWEEN SHORT-TERM AND LONGER TERM. SHORT-TERM TRADING, LONGER TERM INVESTING. THE NUMBER ONE THING TO REMOVE EMOTION IS TO NOT LOOK. THERE'S ALL KINDS OF STUDIES THAT SHOW WHEN PEOPLE LOOK AT PRICES THEY'RE TEMPTED TO OVERTRADE. THOSE THAT LOOK AT THEIR PORTFOLIO QUARTERLY AS OPPOSED TO MONTHLY OR DAILY TEND TO HAVE BETTER LONG-TERM PERFORMANCE. WHAT CAUSES PEOPLE TO BE EMOTIONAL IS REALTIME PRICING. TO THE EXTENT THAT INVESTORS CAN REMOVE THAT AND REMOVE SOCIAL MEDIA ADDS MUCH AS POSSIBLE OR HAVE A DEDICATED TIME FRAME IN WHICH YOU LOOK AT THAT INFORMATION, YOU'RE PROBABLY GOING TO BE BETTER OFF THAT WAY. >> THERE'S SO MUCH EMOTION THAT GETS KIND OF PULLED INTO THE ENVIRONMENT WHEN YOU HEAR ABOUT THE MASSIVE RUN-UPS, DRIVEN BY THEMES LIKE GENERATIVE AI, HOW CAN YOU BE MORE CALCULATED EVEN WITH THOSE DECISIONS THAT YOU'RE MAKING ALONG THE WAY. >> YEAH, WELL, I WOULD SAY THAT, NUMBER ONE IS TIME IN THE MARKET IS MORE IMPORTANT THAN TIMING THE MARKET. AND I THINK FOR AN AVERAGE INVESTOR, ONE OF THE MISTAKES THEY MAKE IS THEY LET FEAR AND EMOTION, TO YOUR WORDS, GET IN THE WAY OF PORTFOLIO MANAGEMENT, AND WHAT HISTORY HAS SHOWN IS IF YOU CAN JUST STAY INVESTED IN THE MARKET OVER THE LONG-TERM, YOUR RETURNS ARE MUCH BETTER. JUST TO GIVE YOU AN EXAMPLE, IF YOU STAYED IN THE MARKET OVER THE LAST 20 YEARS, YOUR AVERAGE ANNUAL RETURNS ARE ABOUT $10 MILLION. IF YOU MISS THE BEST TEN DAYS IN THE MARKET, YOUR RETURNS DRIVE TO 5 1/2%, WHICH IS HALF THAT. AND IF YOU MISS 20 DAYS, IT DROPS. THE NUMBER ONE THING IS STAY INVESTED IN THE MARKET AND HAVE A FINANCIAL PLAN THAT'S IN SYNC WITH YOUR FINANCIAL GOALS, RISK TOLERANCE AND TIME HORIZON. >> THERE'S A TOOL CALLED THE FEAR GAUGE INDEX, AND WE'RE SITTING AT LIKE 13 RIGHT NOW. THERE'S NOT A LOT OF FEAR THAT'S OUT THERE IN THE MARKET RIGHT NOW. BUT FOR INVESTORS WHO ARE TRYING TO BEST ANTICIPATE WHAT THE NEXT MAJOR OPPORTUNITY IS OR WHERE THEY'RE USING A TAX REFUND AND THOSE HARD-EARNED DOLLARS THAT THEY'RE GETTING BACK NOW FROM THE GOVERNMENT AND PUTTING THAT BACK INTO THEIR PORTFOLIO STRATEGY, WHAT DO YOU REMIND THEM ALONG THE WAY WHEN THEY ARE ALLOCATING THAT TO A MAJOR INVESTMENT, MICHAEL. >> THERE'S FEAR. THERE'S FEAR OF MISSING OUT, WHICH IS THE FEAR THAT'S HAPPENING NOW. >> FOMO. >> THE POINT IS VALID ABOUT THE TEN WORST DAYS AND BEST DAYS, THE INTERESTING THING IS YOU REMOVE THE TEN BEST DAYS AND WORST DAYS, YOU HAVE THE SAME RETURN AS BUY AND HOLD BECAUSE THOSE EXTREME DAYS HAPPEN IN PERIODS OF VOLATILITY WHEN EMOTION AND OVER TRADING TENDS TO HAPPEN. YOU'RE GOING TO LOOK FROM THE PERSPECTIVE OF WHERE DO YOU ALLOCATE. KNOW THYSELF. YOU HAVE TO KNOW HOW YOU'RE GOING TO RESPOND TO VOLATILITY. IF YOU'RE GOING TO RESPOND POORLY, YOU MIGHT WANT TO BE IN LOW VOLATILE INVESTMENTS. AVOID THE FEAR OF MISSING OUT, AND CONSIDER THAT, YOU KNOW, REALITY IS MARKETS, YES, TEND TO MOVE OVER THE LONG-TERM, BUT THE LONG-TERM IS VERY HARD TO ACHIEVE. THE JOKE ABOUT BUY AND HOLD IS THAT VERY FEW PEOPLE ACTUALLY HOLD. >> WE'RE GETTING INTO A CRITICAL TIME WHERE THERE'S GOING TO BE A GREAT WEALTH TRANSFER THAT WE WERE DISCUSSING WITH ONE OF OUR GU GUESTS EARLIER AS WELL HERE. THAT COULD MEAN A GREAT WEALTH TRANSFER IN IDEOLOGIES OF INVESTING. WHERE IS THE BIGGEST SHIFT YOU'RE ANTICIPATING? >> I THINK YOU'RE ABSOLUTELY RIGHT. FIRST OF ALL, INVESTORS GENERALLY ARE FEELING QUITE NERVOUS. YOU TALKED ABOUT TAX REFUNDS, AND IT'S PRUDENT, IN A WAY, YOU CAN UNDERSTAND WHY INVESTORS ARE NERVOUS BECAUSE ASSET PRICES HAVE GONE UP QUITE A BIT. WHAT I WOULD REMIND INVESTORS VOLATILITY IS COMMON IN THE STOCK MARKET. 10%-LIKE PULL BACKS HAPPEN ONCE A YEAR. VOLATILITY IS THE INVISIBLE HAND WHICH SHAKES OFF EXCESSES IN OUR MARKET-BASED ECONOMY SO ON THE OTHER SIDE BETTER CAPITAL ALLOCATION DECISIONS ARE MADE. YOUR QUESTION AS TO WHAT TO DO WITH THE TAX REFUNDS, U.S. EQUITIES, PARTICIPATING IN THE U.S. GROWTH STORY IS A GREAT WAY TO THINK ABOUT DEPLOYING THAT. OVER THE LONG-TERM, THE NEXT SEVEN TO TEN YEARS, YOU WILL FIND THAT THE U.S. ECONOMY WILL BENEFIT FROM TRENDS, AI PROLIFERATION, INVESTING IN HIGH END MANUFACTURING INDUSTRIES HERE, AND THE MILLENNIALS ARE NOW GETTING INTO THEIR PRIME AGE OF INVESTING, CONSUMING AND EARNING. THAT WILL DRIVE THE STOCK MARKET MULTIPLES TOO. I THINK BEING IN CASH SORT OF HAS A SEDATE EFFECT, AND INVESTORS FEEL COMFORTABLE. JUST PARTICIPATING IN THE LONG-TERM ALLOCATIONS MAKES THE MOST SENSE. >> I SAW YOU NODDING YOUR HEAD, MICHAEL! >> YOU'RE 100% RIGHT, TIME IN THE MARKET. I'M PUBLIC ABOUT THE IDEA, THE LAST THING I WANT TO DO IS SHORT, AND IT'S MUCH BETTER TO BE EXPOSED TO A MARKET. NOW, THE THING IS MOST PEOPLE DEFINE THE MARKET AS THE S&P 500 OR AS THE NASDAQ. >> SURE. >> THERE ARE MANY MANY DIFFERENT TYPES OF MARKETS, SO MY VIEW IS IT'S BETTER TO TRY TO ROTATE HOPEFULLY THE CYCLES IN YOUR FAVOR. TALK ABOUT AI, IF THE AI DYNAMIC IS REAL, THREE THINGS PLAY OUT FOR DIFFERENT MARKETS TO INVEST IN. LOWER BOND YIELDS, SMALL CAPS RUNNING BENEFIT FROM THE MARGIN ENHANCEMENT OF AI, AND YOU SHOULD SEE UTILITY COMPANIES REALLY ROCKET BECAUSE AI IS GOING TO USE ELECTRICITY. THOSE ARE MARKETS THAT ONE CAN INVEST IN FROM A LONG-TERM PERSPECTIVE OUTSIDE OF THE PURE PLAYS FROM AI THAT WE'RE SEEING NOW. >> WE THINK ABOUT THE HIGHER FOR LONGER THAT WE'RE ANTICIPATING FROM THE FED HERE AS WELL, AND NOT FIVE, SIX, SEVEN RATE CUTS THAT WE MIGHT HAVE BEEN ANTICIPATING COMING INTO THIS YEAR. MAYBE ONE TO THREE ON THE TOP END. HOW DOES THAT INSERT, PERHAPS, SOME FEAR INTO THIS INVESTOR SENTIMENT PICTURE RIGHT NOW AND WHERE CAN WE DAMPEN THAT DOWN RIGHT NOW. >> HIGHER FOR LONGER IS NOT BAD FOR SAVERS. YOU MAKE THE EXTRA INTEREST INCOME, WHICH YOU CAN ACTUALLY DEPLOY FROM MANY THINGS. I WOULD SAY THAT THE FED WILL CUT INTEREST RATES. I THINK IT'S APPROPRIATE FOR THEM TO CUT INTEREST RATES BECAUSE A DISINFLATION TREND IS ONGOING. I THINK THE CUTTING CYCLE WILL BE SHALLOW. THEY DON'T WANT TO CUT TOO MUCH. THEY KNOW INFLATION CAN COME BACK IN WAVES LIKE THEY DID IN THE 1970s. IT MAKES SENSE TO RECALIBRATE RATES LOWER. THAT RAISES THE PROSPECTS OF A RECESSION. THEY WILL CUT, AND THAT'S WHY WE URGE INVESTORS TO STAY INVESTED. INTEREST RATES WILL LIKELY COME DOWN AND THE AI TAIL WINDS ARE BLOWING STRONGLY. >> GENTLEMEN, THANK YOU SO MUCH FOR TAKING THE TIME HERE. NEIL AND MICHAEL JOINING US IN STUDIO. APPRECIATE IT. >>> WE'RE WRAPPING UP TODAY'S SHOW, AND I WANT TO TELL YOU WHAT'S AHEAD. TUNE IN 11:00 A.M. EASTERN TIME TOMORROW WHERE WE'LL TALK ABOUT YOUR FUTURE FINANCES, THE IMPACT OF EARLY RETIREMENT, AND HOW YOU CAN STILL GENERATE INCOME. WE'LL BREAK DOWN WHETHER CRYPTO SHOULD BE A STAPLE IN YOUR PORTFOLIO. AND FINALLY, THE IMPORTANCE OF ALTERNATIVE ASSETS IN A VOLATILE MARKET, AND THAT'S NOT ALL. WE'VE GOT MORE FROM TAX TIME, RATES TO REFUNDS. TOMORROW WE'LL BE LOOKING AT WHY THE U.S. TAX SYSTEM IS SO COMPLICATED. AND HERE IS A SNEAK PEEK OF SOMETHING THAT'S AHEAD. >>> AMERICA'S TAX RETURNS ARE DUE IN THREE WEEKS, THE GOVERNMENT RECEIVES NEARLY $5 TRILLION OF TAX REFUNDS IN A YEAR. IRS WILL ISSUE CLOSE TO $650 BILLION OF REFUNDS AFTER ACCEPTING HUNDREDS OF MILLIONS OF TAX RETURNS. SOMETIMES DOING TAXES IS NOT SO SIMPLE. IT CAN GET COMPLICATED VERY QUICKLY. HOW CAN YOU FILE TAXES FOR FREE, HOW TO GET MORE REFUNDS, AND WHY IS THE U.S. TAX SYSTEM SO COMPLICATED. YAHOO! FINANCE'S TAX WEEK 2024 BRINGS YOU INDUSTRY NEWS AND EXPERT TIPS ON HOW TO DO YOUR TAXES AND UNDERSTAND WHAT IS GOING ON. SO YOU CAN MAKE THE BEST DECISION TO GETTING MORE REFUNDS. >>> WE'LL HAVE ALL THAT AND MORE WHEN WEALTH RETURNS TOMORROW. THAT'S IT FOR NOW. I'M BRAD SMITH, THANK YOU SO MUCH FOR WATCHING.
