Elon Musk passes Warren Buffett on world’s richest people list

"MAKING MONEY." ♪ CHARLES: WE BEGIN WITH A "FOX BUSINESS ALERT," FOLKS. BIG CHANGES IN THE RICHEST PEOPLE LIST. ELON MUSK HAS BLAZED PAST WARREN BUFFETT AND TIMING COULD NOT BE BETTER, MORE REFLECTIVE OF A WORLD AND BUSINESS STOCK MARKET. ON THE ONE HAND, YOU HAVE BRASH, COCKY, IMPATIENT ELON MUSK, WHO WANTS TO CONQUER UNDERGROUND, ABOVE-GROUND, WANTS TO TRAVEL TO OUTER SPACE TO MAKE PEOPLE’S LIVES DIFFERENT FOR PEOPLE ON THE PLANET. EXTREMELY PATIENT WARREN BUFFETT, "ORACLE OF OMAHA," HIS INVESTMENTS ARE IN DAILY HAB BUSINESS. BOTH ARE FOLK HEROES FOR MILLIONS. IT IS ABOUT THE CONVENTIONAL WISDOM AND NAYSAYERS WHICH HAS A WHOLE NEW CROP OF INVESTORS IN THE MARKET SAYING SAME THING. EXPERTS ARE COMPLAINING ABOUT EVERYTHING FROM CENTRAL BANK POLICY, TRAILING PRICE, EARNINGS RATIOS WHILE MISSING THE RALLY. MILLENIAL INVESTORS LOOKING FOR WAYS TO INVEST IN THE STOCK MARKET. THEY ARE BUYING THINGS THEY BELIEVE IN. I’VE BEEN A FAN OF BOTH ELON MUSK AND WARREN BUFFETT. I TRADED THE WAY THEY TRADE, INVESTED THE WAY THEY BOTH INVEST. THIS CHANGING OF THE GUARD SO TO SPEAK IS ABSOLUTELY FANTASTIC. I WANT THOUGHTS FROM HERITAGE CAPITAL PAUL SCHATZ, COURTNEY DOMINGUEZ, SENIOR ADVISOR POUR PAYNE CAPITAL. BY THE WAY I’M NOT AFFILIATED WITH PAYNE CAPITAL. COURTNEY, AMAZING DAY WITH NASDAQ AT A ALL-TIME HIGH. ELON MUSK TO PASS WARREN BUFFETT, WHO SAT ON $130 BILLION FOR ALMOST ALL OF THIS RALLY. THE DIFFERENCES REFLECT THE DIFFERENCE IN INVESTING STYLES. OLD WALL STREET MISSING A RALLY, OLD YOUNG MILLENIALS ROCKING AND ROLLING. >> I HAVE ALL THOSE FRIENDS, ASSOCIATES, EVERYONE THINKS THEY DON’T HAVE A LOT OF CASH ON HAND A LOT OF THEM DO. THEY’RE DEFINITELY INTERESTED IN GETTING INVESTED. I AGREE WITH YOUR POINT. THEY’RE REALLY SEEING THEM COMB IN. TESLA IS INTERESTING. IT IS PRETTY EXPENSIVE. TRADING 430 TIMES FORWARD EARNINGS COMPARED TO THE S&P 500, ONLY 27 TIMES FORWARD EARNINGS BUT YOU DO HAVE A LOT OF GOOD SIGNS I THINK IN THE SHORT TERM. FOR EXAMPLE, THERE IS A REALLY BIG SHORT SQUEEZE ON THIS. THERE IS OVER $20 BILLION GETTING BET AGAINST THE STOCK. ONLY A QUARTER OF ANALYSTS RATING IT AS BUY. THAT IS A GOOD SIGN IN THE SHORT TERM THAT IT COULD PROBABLY GO EVEN FURTHER FROM HERE. CHARLES: YOU KNOW, PAUL, JUST EVEN PEEKING OF P-E RATIOS, I TELL FOLKS ALL THE TIME. LOOK AT THE END OF THE YEAR, THE STOCKS THAT DID THE BEST, THEY HAVE P-E RATIOS THAT EXPERTS WOULD NEVER HAVE TOUCHED. I THINK THERE IS SOMETHING GOING ON. WALL STREET HAS BEEN DISSING IT FROM THE VERY BEGINNING. THE COMMON REFRAIN IT, WILL END UGLY. GIVE ME A BREAK! SOMETHING AMAZING IS HAPPENING HERE. >> YOU’RE RIGHT. TWO POINTS. ONE VALUATION IS PROBABLY THE SINGLE WORSE TIMING TOOL ON EARTH. OVERBOUGHT MARKETS GET MORE OVERBOUGHT. ONCE THEY GET EXPENSIVE -- LET’S NOT FORGET, VALUE ITSELF, THE VALUE SECTOR HAS TRAILED THE ENTIRE BULL MARKET. VALUE VERSUS GROWTH IS PROBABLY ABOUT AS CHEAP AS IT EVER HAS BEEN BUT IT HAS YEAR AFTER YEAR VALUE GOTTEN CHEAPER AND CHEAPER. USING P-E RATIO IS NONSENSICAL RIGHT NOW. REGARDING TESLA, I BE THE CHICKEN LITTLE. I WILL BE THE OTHER SIDE. WHILE MUSK IS A REVOLUTIONARY AND HE IS ONE OF THOSE RARE PEOPLE LIKE BUFFETT, LIKE STEVE JOBS, LIKE BILL GATES, PERSONALLY I JUST HAVE A REALLY TOUGH TIME, MY WHOLE CAREER, BUYING STOCKS THAT GO PAIR ROLL BIG. I WILL ARGUE, GO OUT ON A LIMB, THIS COULD BE A PEAK FOR TESLA. I’M NOT DUMB ENOUGH TO SAY IT COULD BE THE PEAK. IN ORDER TO SHORT STOCK, THE BROKERAGE FIRMS ARE CHARGES USE SURE JUST INTEREST RATES. I’VE SEEN THINGS LIKE 100%. ALMOST IMPOSSIBLE TO GET STOCK TO SHORT ANYMORE. THAT IS USUALLY A SIGN THAT A STOCK HAS GONE PARABOLIC. NOBODY WANTS TO LEND IT OUT. THERE IS SOME PEAK COMING. I GET WHY PEOPLE ARE ON BOARD. I LOVE THE PRODUCTS, LOVE THEM, A STOCK LIKE THAT, 70% IN A COUPLE OF WEEKS, IT IS JUST, FOR ME IT IS I’M WAY TOO CHICKEN TO VENTURE THAT. CHARLES: I GOT YOU. I GOT YOU. I WILL SAY LAST WEEK WE’LL SEE THE MOTHER OF ALL SHORT SQUEEZES. ONCE THEY REPORT ON JULY 22nd, ELIGIBLE FOR THE S&P 500, I THINK THIS STOCK BREEZES PAST 2000. IT MAY COME DOWN SHARPLY FROM THERE. YOUR POINT, SHORTS HAVEN’T GOTTEN IT YET, 20 BILLION TO COURTNEY’S POINT THEY HAVE LOST THEIR SHIRTS BETTING AGAINST ELON MUSK. TALK ABOUT WHAT PUT SPARK IN TODAY’S SESSION. NEWS FROM PFIZER AND BIONTECH, BOTH FDA APPROVED FOR FAST TRACK ON THE COVID-19 VACCINES. IN FACT THEY WILL SAY THEY WILL MANUFACTURE 100 MILLION DOSES BY THE END OF THE YEAR. SO I MEAN, COURTNEY, WHAT DOES THAT MEAN IF WE DO GET THE VACCINE? MODERNA, NOVAVAX, BIONTECH, THESE STOCKS ARE THROUGH THE ROOF AGAIN TODAY. WHAT DOES IT MEAN IF WE GET A VACCINE AND WOULD YOU BE AN INVESTOR IN THESE NAMES? >> A VACCINE WILL BE ONLY A POSITIVE FOR THE MARKETS. REALISTICALLY THINGS ARE ALREADY GETTING A LITTLE MORE BACK TO NORMAL. WE’RE STARTING TO SEE SPENDING PICK UP. WE’RE STARTING TO SEE ECONOMIC ACTIVITY PICK UP A LITTLE BIT HERE. THAT IS WITHOUT THE VACCINE. IF WE HAVE THAT IN THE HORIZON, SEE A LIGHT AT THE END OF THE TUNNEL. WE HAVE A LOT OF CASH. WE HAVE $5 TRILLION SITTING IN CASH. EVERYONE GOT SO NERVOUS IN MARCH. IF WE SEE THAT LIGHT AT THE END OF THE TUNNEL, I THINK YOU WILL SEE THAT FLOOD BACK IN. CHARLES: PAUL, TOO THAT POINT, CASINO NAMES ARE THROUGH THE ROOF. PENN CASINO SAYING 90% OF THEIR PROPERTIES ARE BACK ONLINE. CRUISE SHIPS ARE DOING WELL. WHAT IS YOUR, HOW ARE YOU MODELING YOUR PORTFOLIO VIS-A-VIS A VACCINE OR NOT? >> IN, VACCINE NEWS HAS ZERO PLAY IN OUR PORTFOLIO. TO ME TWO REASONS WHY STOCKS ARE RALLYING. NUMBER ONE IS THAT THE STOCK MARKET DISCOUNTING THE REOPENING AND ECONOMIC ACTIVITY THREE TO SIX MONTHS DOWN THE ROAD. THAT IS WHY YOU SAW THE PEAK ON JUNE 8th. AND EXCEPT FOR THE NASDAQ 100, THE REST OF THE INDICES HAVE TRADED LOWER TO SIDEWAYS BECAUSE THEY SAW STUMBLING BLOCKS COMING OVER THE SUMMER WITH REOPENING. REAL REASON IS, LET’S FACE IT, WHEN THE FED IS THERE WITH A NUCLEAR BOMB OF LIQUIDITY IT IS VERY DIFFICULT TO HAVE ANYTHING MEANINGFUL ON THE DOWNSIDE AND THAT’S THE NUMBER ONE REASON, HOW MUCH MONEY IS AVAILABLE AND HOW QUICKLY CAN IT GET INVESTED. SO THE VACCINE NEWS, I DON’T THINK, JUST LIKE I DON’T THINK THE SPIKE IN CORONA CASES, THE MARKETS DON’T CARE. ON HEALTH SIDE, SURE, BUT ON MARKET SIDE, DOESN’T MATTER ANYMORE. CHARLES: RIGHT. >> I THINK THE VACCINE, THE MARKET IS DISCOUNTING AT LEAST ONE IF NOT SEVERAL VACCINES BEING AVAILABLE BY YEAR-END. AGAIN, IT IS ABOUT THE TSUNAMI OF LIQUIDITY AVAILABLE. WHAT YOU’RE SEEING TODAY AND ON FRIDAY, PERHAPS ANOTHER FALSE START BUT THE SMALL CAPS ARE STARTING TO PERK UP A LITTLE BIT AND -- CHARLES: BUYING STARTING TO SPREAD OUT. >> THIS IS WHAT THE MARKET HAS BEEN WAITING FOR SINCE IT HAD THE ALMOST 10% PULLBACK IN JUNE. CHARLES: YOU KNOW WHAT? THAT SHARP PULLBACK WE’VE BEEN GOING STRAIGHT UP. WE’RE ON THE CUSP OF THE S&P BREAKING OUT. I APPRECIATE THE POINTS. PAUL, COURTNEY, GREAT POINTS