Charles' Take: How the Lag 7 Becomes the Mag 7

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He's earned decades of Wall Street success. A lifelong student of the market

who learned to navigate the world of finance with unshaking confidence and underdog

who achieved the American dream. Now the Fox Business Host is sharing all his investing wisdom

with you on Charles Payne's unstoppable prosperity podcast. All right, so my next guest says in

the market in turmoil over unknowns, focus on unknowns. In this case, obviously it would be

the recent earnings season that we've had. So let's bring in Keen's view partners.

We'll manage the Mario Venerables and you know, just to remind the folks, this is it.

The dark blue is where we finished the grayish is where we thought we'd be in almost every

single sector outperformed on revenue big time almost every single sector outperformed on earnings

big time. I mean, big time. And you know, it's it's so funny. This is this is the mother's

milk of markets. But the reactions weren't that that great this when these numbers were coming out.

At the end of the day, Charles, sentiment changes, but numbers are forever. And headline creates

emotion. However, volatility creates opportunity. So when we look at these numbers, focus on the

knowns of what's in our control, fundamentals matter. And look, we're going to get 14 percent

bottom line growth. That is strong. And that's that projection is going to continue throughout

the rest of this year. Fundamentals matter. Fundamentals matter. Sometimes the fed matters,

easy money matters. I want to I want to pose a question to you. So right now, there's some

modeling that says no rate cuts this year. Yep. Some people are saying if you look at the historic

rate of oil and CPI, we probably end up with rate hikes this year. You were still at three

rate cuts. Yeah. So I'm at two to three rate cuts. And I'll tell you the reason why. What is

the Fed's job? Now many may question that, but it's two things. A dual man. They know. Yeah,

exactly. That's a case in point. So it's inflation and job security, job stability. What happened

last Friday? We missed by 92,000. We weren't even in the ballpark. We weren't even in the parking lot.

We were in a different state. So my point is this. I think with this war, every $10 hike, if you

look at the research and what the data says historically, the data suggests every $10 hike is about

a 20 basis point in inflation. Our inflation numbers just came out and they were strong. And I think

because of this, the Fed will still be on path to cut two to three times. Nearly home. Isn't home

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2025. And they'll do, they'll look at the inflation data X energy, right? Of course. So you're going

to look at core two as well. So they'll take that into consideration. Okay. Now I normally associate

you with high flying names. I was kind of intrigued by a defensive play that you like here.

Once in a while we got a trick up our sleeve. So look, at the end of the day, boring is sexy and

sexy is boring, especially in this market. SCHD trades out a Ford P of 16 of its constituents,

boring names, Lockheed Mar and Conoco Phillips. And by the way, pays you a three and a half percent

dividend. So while you wait, you get paid, I think take a look at this ETF. So really nice.

So really, really nice. Although, although you did mention that and you note that the lag seven,

yeah, going to return back and become the mag seven again. Absolutely. You know what? Patience

is a virtue, but very similar to 2022, the mag seven went down 40%. 23 led the market 24 and 25.

I think right now it's just going to be a consolidation period. It's going to take a few quarters,

but eventually the lag seven will be back to the mag seven. It's holding up here pretty well.

Is there a point when you get aggressive like, you know, with the starts to go higher?

Yeah, well, if you look at the chart right here, this used to be resistant. So if it breaks that

and it gets to that, it'll be at support level. So that'll be a more attractive buy-in.

All right. And we got a minute to go, less than a minute to go. You like Palantir. Absolutely.

Crowd strike. Yep. In Amazon. Let's bring up Amazon's chart because this thing is ugly.

Yeah. Well, it's, it's a mag seven constituent. It's, I don't know. When did we buy it?

Well, you know, well, we've owned it for many years and let me know. And we're still adding

to this position. So if you guys can see me, you go from here and you mock out the long-term

tread line right there. It's 210. I like Amazon because of three reasons. It's basically a

modern day consumer staple, right? They're leading with AI and their cloud computing services is up

38%. And I love Palantir and Crowd strike too, as well. Yeah, absolutely. It's, it's hard.

Not to look. That'll feel that's changed. It has. Absolutely.

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