Americans continue to suffer financially, and many of them — including Glenn — may be wondering: Is now the time to pull assets from today’s tumultuous stock market? Carol Roth, financial expert and author of ‘The War On Small Business,’ joins Glenn to answer similar questions. And while Roth cannot give financial advice based on YOUR individual situation, she does provide insight into market trends and give tips for how to hedge your portfolio. Plus, Roth and Glenn discuss Biden’s recent letter to oil companies, in which the president warned his ‘emergency authorities’ may take over if they don’t do as told. But that’s similar to how Venezuela’s downfall began, Roth explains, and now the median net worth there is ZERO DOLLARS. And unfortunately, she says, it seems that’s the trajectory today’s far-left wants to take too…
Below is a rush transcript that may contain errors
GLENN: Thank you. Now I feel so much safer, now that the federal government has had the last word there. Carol Roth, welcome to the program. How are you, Carol?
CAROL: Oh, you know, just watching the market implode, and, you know, watching the lies come out of the White House. So just another day under Building Back Better, Glenn. How about you?
GLENN: I know. Oh, great.
Let me ask you a question: I've taken money out of the stock market. But I also have gotten burned before, by taking it out. And missing the upside, et cetera, et cetera. And my guy, who watches over my investments. He's like, Glenn, Glenn, it's going to come back. I'm like, I know it will come back. But, you know, I'm nearing 60. So if it's back in ten years, I'm going to start needing that money. Should have any money? I took about 50 percent out. Should you have any money in the market at this point? Have any idea of what's coming?
CAROL: Yeah. So, you know, obviously this is not financial advice. And I think that you did the right thing by talking to your financial adviser. Because obviously it makes a difference. If you're closer to retirement. Or if you're somebody who is younger or has the time to wait it out. The reality is, we don't know. If I knew, and I had this crystal ball, I would be on a yacht on the Mediterranean, and not on your program, as much as I adore you. But that's what I would be doing.
GLENN: Yeah, no, I know. I wouldn't have a program.
CAROL: So the reality is: You know, they show you over long periods of time, that people who take money out of the market, tend to miss the biggest up days in the market. You know, in these bear market situations, there are these kind of bull rallies that happen. And if you miss the ten best days of the market, over, you know, a ten or 20-year period, that ends up killing the returns that you get on your portfolio.
CAROL: So I do think, especially if you have a longer time horizon, that you should not panic. You know, you never want to be the one selling when the market is down. As you want to be buying. Not that I'm saying to buy today. But you should be also hedging your portfolio. And maybe realigning it. And I think it's a good time to maybe look at the types of investments you have in your portfolio. If you are looking at these high-flying growth companies. With weak balance sheets, you know, that don't make any money. You know, those are the ones that will struggle. If they have these rock solid balance sheets. They generate tons of cash. They're in an industry that can pass price increases on to the consumer. You know, those are the ones that will survive, and they're ultimately going to thrive. So, you know, that's the type of thing you should be talking to your financial advisor about, is maybe repositioning the portfolio right now.
GLENN: So what's really crazy, because of ESG. Right now, would be the time -- if I'm not mistaken. You know Wall Street. But right now would be the time that you would think, you've got to get into oil and gas. Because they'll make a killing. They'll invest. And we'll start to really boom. And they'll make a killing on it. But that's not true anymore. Because the market is not free. Oil and gas, is it even smart to do that now?
CAROL: So it depends on your perspective. I'm the follow the money kind of person. And obviously, like you said, the ESG push president the green push. The decarbonization push is so entrenched. You know that they're going to throw more money at that. And they've been keeping money from these sort of traditional areas of investment. So the question you have to ask yourself. And, again, I wish I could tell you the answer. I can only tell you what to think about in terms of the question. Is do you think that we're going to see a reversal, of course? Because right now, part of the reason that everything is so expensive, is because we have had all this capital being directed away from the industry. And there's severe underinvestment in all types of fossil fuels and traditional energy sources. So the play that you're going to have to go through in your mind is do you think that something is going to change? Or eventually here, we get some temporary relief. And then the green people continue to march on, and, you know, completely kill our -- our dependence on fossil fuels.
GLENN: What's frightening is that letter that came from Biden yesterday, where he said to the oil companies, I have emergency orders, where I will begin to direct this. This is what Hugo Chavez did. And it was over for Venezuela.
CAROL: Okay. So let's go back into whatever it is -- 50, 60 years ago. Venezuela was the fourth wealthiest country in the world. And like you said, their powers that be, said, we have wealth inequality. We need to hand this over to the government. We'll make sure that you are all rich. And they nationalized oil and a bunch of industries. Do you know what the median net worth in Venezuela is today, Glenn?
GLENN: Oh, I don't -- I'm afraid. No, I don't.
CAROL: It's zero. I'm not making this up. This comes from the Credit Suisse report on world wealth. The median net worth -- they went from the fourth wealthiest country in the world, to a median net worth -- not even an average -- a median of zero. The midpoint of the country's net worth is zero, because they nationalized the oil and gas industry. And the wealth, and that is the trajectory they want to take us down here.
GLENN: So, Carol, is it unreasonable to say. I mean, you know, Biden is lying to us about gas and oil and ESG and all of that stuff. He's just out and out lying to us. Is it unreasonable to say, that that's the way you get people to own nothing, by 2030?
CAROL: I mean, it's certainly one huge element of it. I mean, just think of. If we had, you know, some retraction of our energy. Where one day a week, we couldn't, you know, have enough energy to power electricity. Or to get us to where we need to be. And we all had to move to four-day workweeks. Think of the productivity that we would lose. Think of how our GDP would shrink. Think of the rolling consequences of that, throughout the economy. And, yeah. That's a really good way to start killing the ownership of people. But, Glenn, they have so many different ways they are trying to attack you, and make sure you don't own anything. That's just one of the tools in their pockets.
GLENN: Oh, I know. I will tell you, I'm up here in my ranch. I live in a town of very, very small. The next biggest town over is 5,000. And it is -- it's all ranchers. It's all farmers. And regular people. Dairy men. And they're all terrified. I mean, they can't buy water. Water is already at a premium, and now the state of Washington and the state of Idaho is talking about taking down the dams, which would destroy the energy here. And it would destroy all of the water. I live in a desert. Okay? It's a high-mountain desert. A lot of farms and cattle are here. And on top of that, they're also expressing to me fear, that they'll even be able to keep their land.
CAROL: I think these are real concerns. And I hope the place you're in is gulch, because we've been looking for it, for quite some time. But the reality of it is, the wealthiest people in the United States. You know, the Bill Gates. The Harvard hedge fund. They have all been buying up, not only land, but water rights. So it's something that we do need to keep a very close eye on. Because the question is, you know, why do they think this is such a good investment. You know, they're looking for return on their investment.
CAROL: So what do they think is going to happen with the prices, that they're making investments, in farmland, and in water rights. An area. You know, it's one of those. I'll call it a dark gray swan. Because obviously we've talked about it. But really, not enough people are focused on it. And to the extent, you have this rationing of water, on top of everything else. I mean, I can't even imagine that scenario, and the social unrest that comes with that.
GLENN: So we have 30-year mortgage rates. They were, last week, 5.5 percent. This week, they're now at 6.28 percent. And the fed raised the rates yesterday. What is this going to mean?
CAROL: Oh, I do think they came down a little bit today. But, yeah. It's still very high. This is a very challenging question, and the challenging question is because we have such a supply and demand imbalance, in the housing market. Again, because of all of the idiotic things, that the powers that be have done over the past couple of decades. So we have an undersupply, that's estimated four to five plus million houses. And that's what has supported, you know, these high prices in housing. Plus, you have all of these corporate buyers who are flush with cash, who are coming in. And they are buying up -- talk about you will own nothing. They are buying up housing. The thing that makes people gain general racial wealth. And they're doing it with all cash. So they don't need a mortgage. And sometimes they're not looking. They're not even doing an inspection. So they're getting very, very favorable outcomes. So, I mean, yeah. In terms of what happens with the housing industry. The mortgage rates are going to keep first-time buyers. And people who are just able to afford out of the market even further. You know, they were already hurt, because of the inflated asset bubble. Whether that means -- we'll certainly see some cooling off. I don't think we'll see a 2008, 2009 type implosion. Because we just don't have enough houses. And I don't think right now people are overleveraged.
GLENN: So let's -- let's -- let's continue this conversation here in a second. Let me take one minute to break. But, you know, Canada said already. One out of every four houses, I think it is, is underwater. Or they can't -- they can't afford to keep their mortgage. And if it goes up, I think another point, they said, it will be like 50 percent. The people won't be able to -- so is Canada different from us? Because that sounds like a 2008. We'll get to that question here in just a second. By the way, Texas leads the nation. Texas leads the nation in homes being sold to companies like BlackRock. More homes in Texas are being sold to these corporate raiders than anyplace else in America. That's got to make you feel good.
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GLENN: So over one in five Canadians expect rising interest rates to have significant negative impact, one in four say that they will be forced to sell their home, if interest rates increase any further. So it's not as bad as I thought it was. One in four. Is Canada different than we are. They don't have a shortage of homes?
CAROL: So Canada has a massive shortage of homes. They have a very different scenario, than we have here. Because they have even more foreign investment, that has come in, particularly from China, on an even lower supply of homes. So there's a great chart. And I was trying to find it during the break. And I'm going to have to circle back on that one. But I'll put it back into my Twitter stream. But there is this incredible chart, that shows the median income for Canada, versus home value. Versus the US. And the home values, compared to the incomes in Canada, are so out of whack, vis-à-vis, where the U.S. is. That absolutely, they're knew, much more in an area of a crisis. And I have friends who are in Canada, and they go, yeah. My house is worth all this money, but I can't sell it, because where am I going to go? I have nowhere else to go and downsize into. So that is a really big issue, that is different for them, in a bad way, versus here in the US.
GLENN: Carol, there was a -- this really nasty socialist extremist group that we exposed, that is pretty much running the agenda of the White House. At least I think, they gave the president a list of ten or 20 things. And he's done almost all of them verbatim, except for the last one on the list is, just declare a national emergency. And it's on climate. And it makes me so nervous to see him so willing to say to the gas and oil companies yesterday, that this is an emergency. And he will declare an emergency, and just take things over. That's what he's been saying and leading to for climate change. I think this is going to affect an emergency with food as well. And then eventually, jobs. What does it mean, that the fed rate has now -- or the fed growth is down at 0.0? I think that's intentional. So we don't have a month headed towards a recession. But what are we facing?
CAROL: I mean, we are facing a bunch of people who are completely disconnected with reality. And like you said, they may be the puppets of nefarious actors. It makes absolutely no sense. And it's so frustrating. Because, yes, we do have an emergency. And they're the ones that caused it. And they could get us out of this emergency. They could shore up economic security. They could shore up national security. By just doing a 180 on policy. It's pretty clear, if you're saying, there is an emergency here. We need to do something. But it's not just an emergency today. It's an emergency for the long-term. So it would be really great, to say -- for them to say, you know what, we understand. Maybe we got this wrong. Or, you know, we're in a different situation. If they don't want to admit that they're wrong. And we're going to continue the green agenda. But we don't want to have fossil fuels, come out of Venezuela or the Middle East. Or these countries that will do it in a fashion that is less clean. And we want to lead the way with the clean fossil fuels, and we're going to become the leader. And we're going to shore up your economic security. We're going to shore up national security. We're going to shore up the security for our allies. And that's the plan going forward. And I don't care. Take credit -- pretend this is your brainstorm, and none of us knew this. If you want the credit for it. I don't care. I just want to make sure we don't have all those things, that you talked about. The food insecurity. The rolling blackouts. The social unrest that comes with that. And that leading us into full-scale global war. I mean, that is potentially where we are headed. And he could change all of that today.
GLENN: The problem is, people keep saying, they won't admit that they're wrong. But I am -- and maybe it's the cynic in me. But I've just seen too much. I don't believe they are wrong. I think they're getting the results, that they want.
GLENN: This is -- this is too -- too perfect, in destroying the country.
GLENN: You know what I mean? You -- you can't be wrong this consistently.
CAROL: What would I be doing differently, if you were trying to do it intentional?
GLENN: Yeah. Exactly right. Carol Roth, thank you so much for being on with us. We'll talk to you again, next week about cryptocurrency, et cetera. You can follow her on Carol J. Roth, on Twitter. Or find her website. CarolRoth.com. Back with Mo Brooks and the economy, next.