in your state. taylor: often florida goes, everyone else can follow. let's get a check on your money. stocks higher on a big fed decision expecting tomorrow. as you can imagine they're quitely expected to leave rates unchanged. stocks getting a boost on this, bonds higher, yield lower, i do wonder going forward what the dot plot means looking for two cuts or three. far away from the six, seven rate cuts, many people thought three months ago. jackie: i don't see that happening. i'm sticking to my story. this was a big reversal for this market. the dow up 247 points. on that point we send it over to "making money" with charles payne. charles: don't fight the trend, all i can tell you. don't fight it. learn to love it. good afternoon, everyone, i'm charles payne, this is "making money." breaking now, they saw, they came they conquered. i think they came, they saw,

they conquered. nvidia keeping report empire going but the question can they beat it going. jensen meets caesar. which powell will show up tomorrow. why the 10% are loving these harsh fed policies. plus the badgegy brook. keeping up with the jones. i love to see crazy stuff you've seen with people trying to look rich. 6% commission on buying a home, let's say it is over. here is a dirty little secret for agents, it never existed for them. we have real estate agents that want to tell their side of the story. all that and more on "making money." charles: all right, so it's the morning after and the morning before. the morning after a.i. woodstock and the books,'s in the books, folks. while a.i. stocks sort of mostly

chugging along today the ramifications from this event will be felt in society and in your portfolio for years to come. now it is the day before the fed decision. of course conventional wisdom saying no rate cuts tomorrow but there is a lot of debate over when and how much the fed should cut. now the good news for investors is, this market hasn't missed a beat, even as the rate cut estimates have come down, right? remember when we had the powell pivot, both rate expectations in the stock market shot straight up. rate cuts we've gone from six to three but look at this the market not only has gone up but this is your p-e ratio, it has gotten more and more expensive. some people are concerned about that part of this whole equation. if it is not the fed it will be the economy and strong earnings. this is the first quarter, which will be over real soon. we're seeing so far only four names where you have earnings estimates have actually gone up since the quarter has begun. you actually have four where earnings estimates are going to

be negative. so a very narrow number there. remember we have multiple expansion all of last year. this year it has to come from earnings. it has to come from earnings, folks. of course speaking of earnings we want to go further out beyond this quarter. a lot of people are looking for alternatives. look at the small cap earnings are expected to grow this year just as fast as the s&p and next year even faster to. so maybe, maybe it's time to start looking in on these small caps because i got to tell you something, talk about attractive, here's a chart, this is the your forward p-e. it's the small caps versus large caps. essentially small caps have not been this cheap or inexpensive compared to your larger cap names since the end of the global financial crisis. when the dust settled look what happened to those small caps though. huge, huge, like once in a lifetime amount of money that could have been made. are we there? not quite sure. then of course the day that is really important of course is this sort of situation where

nvidia, handful of stocks dominating the market. some are starting to get worried about this. in fact on that note i want to bring in our next guest who kind of warned about this. joining me yardeni research, inc. president, ed yardeni. this is fomo buyers, jump in the nvidia three-day love-fest but the fed chair could be a spoiler. in your note you talk about this, this extreme optimism, you use the word extreme optimism for a handful of stocks. at some point you think it become as dangerous? >> yeah i think at some point it could be. let me put it in the context of our forecast. we're thinking that the s&p 500 gets to 5400 bip year-end. the problem from that it is not that far off anymore. charles: right. >> it was six, 12 months ago when we were pushing that forecast. i'm concerned we'll get to 5400 by the middle of the year, in which case i will have the have the possibility that this thing is getting a little bit out of hand. charles: here's the thing. you always talk about the

megacap 8. >> yeah. charles: in thinking along that way, if we get to 5400 and it is really nvidia, it is really meta, it is really netflix, just a handful of stocks and the rest of them are trailing you could look at it glass half-full, glass half empty. >> when you actually look at the performance of the market since the beginning of the bull market back october 12th, 2022 what you see actually a lot of stocks are up only by 20%. charles: [laughter]. laggards. >> exactly. everything is kind of relative. what we're seeing here, that we have such extraordinary performance bit megacap eight, everything else looks like puny. charles: right. >> but the reality is, it has been a pretty broad bull market. charles: i was seizing at the beginning when we handed off the show, 1:00, talking about the remarkable yet again turnaround, ininterest day turnaround for the market. you don't fight this, right? >> no. charles: as investor you don't fight it, even if you think it's

bizarre, even if you think so internally you have to take advantage of it, don't you? >> i think you have to stay with it. charles: okay. >> it has been my position it has been a bull market since the end of 2022. i've been promoting the idea of investing in the market for sure. would i stay with it. i wouldn't sell. charles: you called the 2022 low, october, took a long time for a lot of folks to agree with you, many still haven't but we're always looking ahead. >> yes. charles: to continue this conversation, this is your profit margins and of course the large cap names, profit margins are typically moving higher. more recently your s&p 400 starting to turn here a little bit. >> starting. charles: you talked about the small cap area, the mid-cap area. >> right. i think what we're seeing in the mid-cap and small cap area of the marketplace, the thing that is concerning that we are not really seeing forward earnings, expectations are going up. they're kind of going sideways. charles: right. >> where the s&p 500 forward earnings, we're looking is the profit margin which is one of

the components that goes into forward earnings. right now the s&p 500 still looks pretty good from a fundamental perspective relative to the small caps. as you said, the small caps, mid-caps, they're cheap. charles: then if they can't turn a corner, the very small caps to your point really look like, there is no sense of pushing the issue here. i want to look forward to tomorrow. leading indicators, right? there's forward, there's lagging and there's coincident. >> right. charles: you always talk about the coincident because interesting enough it is still suggesting that this rally is okay. >> yeah. charles: the leading economic indicators for a long time warned of recession but even the conference boarded a mitted there is flaws there. no one is using that anymore. >> i would continue to focus on the index of couldn't dent of economic indicators. it is a monthly indicator. correlates really well with g-gp growth. it is at a record high. what more do you need to know senate economy is doing extremely well.

there was no sign this index was signaling recession for the past two years. charles: this is one we're talking about. this is the one wall street uses this is down 24 months in a row. when this turned down, everyone said recession, recession, recession. to ed's point, follow the green line, the coincident. stay bullish huh? >> yeah. charles: absolutely. thank you. it was most hyped technical event, most hyped technology event in a long time. let me tell you nvidia did not disappoint. like julius caesar, they came, they saw, they conquered but remember the roman empire didn't last forever. i have want to bring in io analyst, beth kindig. there is a ton of stuff to unpack. we don't have time to do it all. i want to sort of cut straight to the chase, this blackwell cpu, a billion transition terse. 30 times for performance with

generative a.i., 25% less energy. sounds almost too good to be a true. >> hi, charles. blackwell is another reminder that nvidia is the world's best gpu company and what's most important about blackwell it improves 2 x on trading but 5-x on inference. amd's chip is geared entirely towards inference. nvidia had toe respond to that the other key point of blackwell it drives down the total cost of ownership. by doing so it creates motivation for the big tech companies replace the hopper architecture, h-100 that created gains this year with the bracwell. they have to create that motivation. they're driving down total cost of ownership. all of those pieces together is creating excitement now at gtc. charles: i've seen bubbling up this last couple weeks is this energy component.

between this -- i remember at least 25, 25 years ago i remember reading about just how much energy a google search back then took, just google anything. and of course now a.i., is that going to be a central issue? which one of these, you know, these chips can actually hold back the -- because you wonder where all the power will come from between that and all the other things we've got going on? >> that's the crux of the issue right now. that is a great question. this is where amd is coming in to compete with nvidia. they are entirely focused on power efficiency. what people like myself understand is that in some ways nvidia is having to chase amd right now because of how amd came out with such incredible power efficiency. expect these two to go head-to-head not only on power efficiency but also pricing. nvidia had no competition of any kind. you talked about the roman empire. the crack that would occur with this empire which of course we own nvidia, high allocation, would be pricing power which has

been very strong for nvidia. expect that to change this year. charles: pricing power is always the most important thing, right? that drives your margins. a lot of collaborations i'm hearing in the last 24, 48 hours. any of them standing out we should know about? which one reasonably means something? >> yes, one of the best take-aways i give you omni cloud api. we said nvidia would surpass apple one day and would do so quickly. it is based on hardware but primarily software. this omni cloud api is another leg up for nvidia to be a leader in a.i. software. even apple is embracing omni verse with its vision pro. when apple partners someone with software, it is basically saying if we don't partner with nvidia we'll be left behind. from a 10,000-foot view that is huge statement on apple of nvidia's a.i. software potential. charles: i heard novo will be

huge buy irof nvidia chips. you have a great health care market this slope says it all, up to 200 billion. how do we make money, investors people watching this show? we talk so much about the picks and shovels. are you starting to see other ways for the end-users, the ones that will stand out in the crowd yet? >> i hate to say it the common denominator here is nvidia again. it is one of the easiest ways to participate, however, i would also say take a chapter from what's happening in big tech. we saw the mag-7 accelerate, meta, google, microsoft because they have the large, big, cap-ex budgets to, and r&d departments for a.i. when it comes to health care it will be the large players use a.i. for productivity, drug discovery. look what is already working and who has bigger budgets. charles: so novo gets a little larger from here. beth, thank you so much. >> thanks, charles.

charles: all right, folks you probably know someone that is budgegy broke. they look rich but have no money bougie. we'll talk fed policy after this. ♪

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wireless that works for you. it's not just possible, it's happening. charles: so my next next guest rather wrote a great piece last week on the facade of consumer spending. implications keeping up with the joins 2024 version. joining me now ria advisors portfolio manager michael leibowitz. michael, i love you started the piece with a joke, that was michael green, professor green. bill gates walks into a bar. bill gates and i walk into a bar. bartender, wow, a couple billionaires on average. i love it because one of the most irritating problems i have when wall street economists using aggregate data in the notion that everybody is doing well. let's talk to the audience about what you're calling the wealth divide here. >> yeah. there is a huge wealth divide, and it is really skewing a lot of economic date that we see.

so 2/3 of the wealth is held by the upper 10% of the population, meaning that the rest of the, a third of the wealth is held by 90%. so when you look at things like personal savings, it's so skewed, that you can't make sense of it. i think that helps explain why biden's economic confidence polling is not so great because a lot of us are suffering. charles: yeah, one person, one vote, one survey taker, you know, are you doing great. yeah, the other 99%, not to much. >> right. charles: i like the idea you got from the tiktok videos, means, so-called bougie broke. talk about that. >> i love the word bougie broke. so my partner lance roberts challenged me to write an article on it. i used bougie broke as a kind of a lead-in to the state of consumer. what we've been seeing, consumers represent 2/3 of

economic growth, gdp. on to know what the means of the consumer. the savings are down to 15 year lows. savings rates are very similar. consumers largely gone through the surge in pandemic related savings and at the same time, credit card usage is soaring, and we have things like buy now pay later loans. it is all pointing to a consumer that is weakening. charles: right. >> but until unemployment starts rising the economy will continue to stay robust and consumers will spend, even if their means are declining. charles: you know, also, this sort of keeping up with the jeanses, 2024, you get to post this stuff on videos. you flaunt all the fox wealth that you have. people are traveling more than any way they did before. number of people with passports growing exponentially. people at restaurants. they don't want to give that up.

if they build economic policy around this and doing this at 22% interest rates, $20 trillion credit card debt, buy now, pay later at grocery stores, we feel like we have mismanaged policies once folks run out of money. >> that's the problem. how will the fed going to react to this problem because when unemployment starts rising i think that is when consumption comes to a halt, not to a halt but slows down significantly and can really steam role what is a budding recession or budding economic slowdown. the fed has to be very mindful of the wealth divide, of the way consumers are spending above their means and the effect it will have on the economy. charles: irony of course, i think they started this whole hiking cycle to stop this from lapping but it is only -- happening but it only continued. michael great stuff, great writing thank you. >> thank you, charles.

charles: speaking of the fed, folks, the fed is feeling pressure to bring rates down from a lot of areas including members of congress. i have two of the very best, how the congress, how the election cycle, and how some other things we don't talk about could actually affect tomorrow's decision next. ♪. it's odd how in an instant

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charles: all right, folks, so the federal reserve will come out with their decision tomorrow. while we know there will not be any rate hikes, the question an answer period will be absolutely explosive. many people may ask maybe a few questions about middle america, low income americans because you know what? they are getting crushed. madison alworth has more. >> reporter: hey, charles, they definitely should be asking those questions because you're right, they are being crushed. jay powell has worked hard to temper excite amendment over potential fed rate cut after his own pivot last october sparked a freeding frenzy on wall street, assumption of six or seven rate cuts this year. for tomorrow that's not what we're expecting. the stock rally that happened after that, that is something to behold, that important piece, main street, they have been left out in the cold through all of this. even though the fed is supposed to be separate, make no mistake there is a ton of pressure on powell and co to bring rates down. most of it unseen but some of it

absolutely in your face like elizabeth warren and other democrats. they're push being the fed to cut-rates for clean energy. this coming out today. and then last month we also saw a push from different members of government, senators asking for them to cut-rates to help address affordable housing. but the question that we have here is are they looking at things beyond that? because when it comes to high rates, we know that there is a lot of issues when it comes to interest. congress would be pressuring the fed to cut for those things but the reality, americans are deciding they're feeling it heavily. interest income is up. interest bill, $420 billion. that is on things like mortgages, credit card loans, things of that nature. interest paid, the income that we make from beneficial high interest rates, that's only up $280 billion. so obviously not as much here. then within this sector, the people benefiting, they're the

folks only really at the top. we're taking a look at interest and who pays it. financial assets, top 10% they're taking home most of that money. the lower bottom 50%, only making, only 2.6 of them is making money on financial assets that improving because of high interest rates. conversely these two groups, middle class, bottom 50%, when it comes to consumer credit, they have the majority there, 87, really bad, 87% of consumer credit debt that is held by the bottom 50 and middle class. now, the fed has a lot of contemplating to do in terms of their mission and how they're going to slow down the economy. because it has enriched as we saw. the wealthiest americans while hitting everyone else. back to you, charles. charles: feels weird, doesn't seem like it should work that way, madison, thanks a lot. that was very inli -- enlightening. i want to bring in discipline

fund founder colin roche. there is lot of excuses why the aggressive rate hiking cycle has not worked as it was planned. going back two years ago you would say everything is broken. why is it inflation has been so hard to tame? >> well, i think to some degree the rate hikes have worked as you know your previous guests were talking about and as the bloomberg article discusses. this has really hurt middle class and poor americans, they are the ones who are most interest rate sensitive because they rely on revolving credit card debt and more interest rate-sensitive debt. i think part of the big reason why maybe inflation hasn't come down quite as quickly as a lot of people expected it to because the congress and treasury continues to just fire money into the economy. so i say it all the time, if were at the fed, when i saw the size of the deficit last year, i would have walked over to congress and treasury what are you guys doing? we're trying to bring down inflation. can you help us out here rather

than continuing to run the huge deficits. charles: that would be something to behold, right? maybe they can turn the next humphrey-hawkins on its ear, ask you a question. love to see a fed chair do that, last day on the job but would love to see them do it. >> right. charles: put that back in your position if you were running the fed, are there more elegant ways, more elegant solutions tamping down inflation without wrecking the poorest people out there at the expense of the richest people? they're making money on all of this? >> yeah, fed policy is known famously being this very blunt instrument and the primary way, especially with interest rates, the primary way that works is by hurting consumers. the consumers who most rely on interest rate sensitive debts that work for fed policy is just happens to be the poor and the middle class. you know i don't know if there is a really precise tool. this is part of why when i see

ideas focusing on the fed being more clean energy focused and things like that, that is not how this works. the fed cannot be that precise. they can't fight climate change with interest rates. it is too blunt of an interest interest -- instrument i think they are blunt by necessity. charles: the longer the fed waits to cut, more difficult as we approach to november. a lot of people say no, the fed is not paying attention to that. your thoughts. would they maybe consider pausing as they get closer to november without cutting? >> yeah i think for sure. i think that powell, especially, he has been very independent but the fed does not want to look like they're influencing the election in any way and i think powell is cognizant of this and so to me that's why it's increasingly looking like, i've been in the june camp all year basically for a rate cut.

it is looking increasingly like it might be july. they will not move at the september meeting. they might not move even at the november meeting. that only leaves you a handful of rate cut cuts to begin with looking at two rate cuts max for sure. charles: i'm running out of time but how do we invest against this backdrop? >> depending evers on your time horizon. people with a short time horizon, relying on things like treasury bills and money market funds. i think it is time to lengthening duration. front running the fed. the two-year is at 5% still. the three-year is at four 1/2. the five-year is at 4.4. you can start locking in some safe government interest rates, three, five years out it might look pretty smart locking in a 4 1/2% interest rate when the fed is deep into a rate cut

cycle. charles: colin, great stuff. let's talk again soon. >> thank you, charles. have a good one. charles: my next guest one of the best economists on the street. he thinks the fed will have enough date too to support a rate cut in june. i want to bring in constance hunter. you're modeling suggesting that the pce inflation 2.1% next month? if that's the case that gives the fed the green light, right? >> we actually moved it a little bit after the recent inflation data. we'll be down to 2.5% next month and 2.1% by june. but of course they won't have the june data until after the meeting. the point is that we think it is going to continue moving in the right direction. the beginning of the year last year we also saw some beginning of the year volatility in prices. a couple of really significant things, one, owners equivalent rent started to come down again in february. we expect that to continue. another big area of inflation has been vehicle services. so things like renting a car,

repairing a car, leasing a car, purchasing a car, those prices have been elevated. we are starting to see those come down a bit. charles: right. >> that is going to be an important factor in this sort of supercore that the fed looks at. charles: so i'm looking 2.5, 2.1, it feels like so-called lag effect kicking in maybe faster the next few weeks. the fed warned about so-called long and variable lags and monetary policy. what i wonder if the snowball become as proverbial boulder could we have actually more aggressive rate cuts in the back half of the year or larger rate cuts? >> yeah, well that is the risk and i think all things being equal the fed would prefer to have a steady pace of cuts from now until the end of the year. it is another important reason why i think they don't want to leave it for too long. if they were to do, for example, what boss ticker suggested, have a cut a cut, a pause, a cut, a

pause, it doesn't really hurt them to move in june. okay we'll see how the data evolves. if they need to wait out july. cut again in september. so the sooner they get going the more room they have to do that and you know, as you were discussing with your previous guest, right, we're hitting this sort of inflection point where if you really want to nail the soft landing and not have the middle class get overly hurt by higher rates you've got to start the cutting cycle. charles: you do a lot of surveys. one that caught my attention, whether the fed knees needs to see the labor market weaken before cutting. it was pretty large, 64% said no, the fed can actually start to cut before then but it feels like that labor market is the part they haven't gotten right. the part still seems to be still somewhat confusing, that last part of it? >> well a lot of people didn't

get that necessarily right. one of the things we also do at macro policy perspectives we really analyze the immigration data. so we had a lot of visa and legal immigration in addition to some of the asylum-seekers who get approved able to work legally. so when we look at that, that boosted the labor force which allowed the economy to grow more strongly than people expected in '23 and also allowed job postings and hiring to continue to be strong last year. so -- charles: but those, constance, i got like 20 seconds but i'm looking at indeed, the postings are really starting to be in a precipitous fall. they're not just drifting fall. they're really coming down pretty hard. i guess what i'm asking is could the fed wait -- maybe the fed already waited too long and we'll find out the hard way about these lags? >> correct. i think that is 100%. they need to sort of get the ball rolling because they're

getting to that inflection point where it could become problematic. charles: all right, great stuff. hey, constance, always great work, appreciate you. folks, here is the question for you, why should you stop worrying about when the rally is going to end? stop. you need to make money. that's what rallies are for! phil blancato has ideas for you. by the way how safe is the 10-year bond? wait until you hear about this. ♪. investment opportunities are everywhere you turn. do you charge forward? freeze in your tracks? or, let curiosity light the way. at t. rowe price, we ask smart questions about opportunities like advances in healthcare and how these innovations will create a healthier world tomorrow.

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call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. ♪. charles: the last week this headline here caught my attention, running with the bulls. i'm like okay, sounds pretty good. 6250? wow. it has been a mistake right to sort of keep guessing when this rally is going to stop. so many people do that. i'm going to get in after it pulls backs. it will stop anytime soon t can't go on forever! you're supposed to enjoy the rides particularly if you're a do it yourself investor. these windows of opportunity this big don't come around often. i want to bring in phil blancato. phil, 6250, can you do better than that? >> i cannot. charles: you can't?

>> that is an incredible number. if a.i. happens, we get tremendous increase, 30, 40% for each company across s&p, maybe but that is not what i think. charles: this is bank of america, this is therapy most recent, most crowded trade when they do the fund managers survey. so i mean obviously long "the magnificent seven" is the most crowded but the point i'm trying to make, i've been watching the survey for years. at least a decade. and i have noticed that the most crowded trade can stay the most crowded trade for the long time, be the most is being susful trade. the often knee-jerk this is too crowded. i missed it already. how do you handle something like that? >> it is really quite simple, folks, these are great companies. if you look at earnings. we were trading at 40 pe. now trading at 30. why? they had a really good fourth quarter. in some cases double, triple digit earnings growth. don't sell your best names. it was "magnificent seven," now fabulous five.

maybe going down to the thrilling four. take some profits. nothing wrong with finance 101. charles: scale out. >> some great places to be, small cap, mid-cap, value, i'm not saying sell them. take some profits and pivot. charles: a thing you and i talk about is the bond market. these bond yields, we're down a little bit today. we're at a serious resistance point, breaking out. the rate of change is picking up on the upside. on friday i had nancy davis here, she gave a stark warning about the 10-year bond being a safe haven. take a listen. >> yeah but the yield curve is so inverted is crazy thing. the stouffer curve is negative 70 basis points. two year is 70 basis points above the 10-year. you would think it would be the opposite. you would think people would be worried even things like the jbj curve, curve in japan, same 10-year on jpy rates, that is positive 70. i want to grab people, 10-year is not some safe haven.

don't, everything involves risk. you have to be really careful but it is a great time to your point to add inflation. charles: the 10-year is is not necessarily a safe haven. i don't hear people on wall street saying that much. >> i completely disagree. i have a significant position, 10 to 20s in equity portfolio. that position in the fourth quarter up 19%. to her credit the rebound showed us we see rates push higher. why? the fed is not out of the way. the fed gets out of the way, rates get cut, data suggests the fed is getting closer. we're not there yet but they're getting closer to do that that. charles: the fomc tomorrow. jon housman put out this chart, i want to get your notion about the taylor rule, represented by this green line, that the fed funds rate usually have to be above this to be effective. again if you want to curb payroll employment, retail sales, all the things imply they have done their job, that it is

not there yet, do you buy into that notion, that has got to be the case? >> i don't. here's why. the greatest amount of money ever infused to the u.s. economy, labor market, although minor weakening is extremely strong. until that inverts, we see real weakness about the labor market that doesn't matter. point about 10 year doesn't matter. mckenzie talked about more debt i get it. fed getting what they want, weakening consumer, with the job market hanging in there. why that data irrelevant. charles: you're still in the soft landing camp? >> i. charles: 30 seconds, some things you like, jpmorgan, amazon, and crowdstrike. crowdstrike is intriguing i think they cut a deal with nvidia. >> why i put it on there. charles: the only thing i would caution, maybe the investors, with the low risk tolerance this is less volatile. this name, you've got to be ready to hold on and endure some down 5% days, down 10% days. you have to articulate that to

investors before you buy this? >> this is your meat and potatoes. arguably the best business bank in the world. five business lines. generating billions of dollars in cash with them. they're not overloaded in debt. five-year share growth rate is better than ever been. meat and potatoes. amazon spoke at nvidia conference with cloud services to get them more efficient. 40% of e-commerce. trading below five return. meat and potatoes, side dish, dessert. why i like this name they struck a deal with a.i. to increase efficiency. earnings growth. charles: crowd is amazing. >> had a hell of a one. not this one so much. think still have great one. in volatile market i like to hide out here. charles: thanks a lot, phil. by the way, don't forget i am hosting "unbreakable investors," next town hall, april 24th, that is 2:00 p.m. eastern. you can join me here in the new york city. last couple have been standing room only. they have been a blast.

here is what you do, go to eventbrite.com, search for charles payne. get your free ticket, i will see you next month and we'll be right back. ♪.

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but oh how he can nail a software solution. you need ron. ron needs a retirement plan. work with principal so we can help you with a plan that's right for him. let our expertise round out yours. charles: so on friday we broke that breaking news, the national association of realtors is settling over a massive lawsuit, and p of course, this story has taken off like wild efire. a lot of the agents have expressed massive anger particularly toward me. i'm getting your phone calls and e-mails, and we are listening to you. but first for the audience, let's break this all down. what does it all mean, how did we get here? >> reporter: absolutely, charles. this is huge news, arguably the biggest financial development to hit our nation in a long time. and as you said, it's creating rip rings and and worries about the fate of hundreds of thousands of real estate agencys in the overall housing industry. so the important part of this is is the equity in our homes. when you look at home ownership, it is by far the largest asset

in american households. you take a look here, our median value, nothing even comes close to the equity that we own in homes. and as americans, roughly 62 percent of us -- 62% of us own homes. this clearly is something that impacts a majority of americans and their largest wealth asset. and then what is now changing is how that wealth is going to be distributed to buyers and sellers. so the national association of realtors, they're going to be paying $418 million over the next 4 years in connection with multiple listing services. in addition, there's going to be a new rule that will put into place that prohibits listing the commission on an mls. the reason that is now the case is because the argument is agents cannot steer their clients towards homes with bigger commissions, rather, pushing them towards homes better value for them. most real estate agents would say that's what they already do because they want to help their buyers, but that is now a new rule. i want to break down what is also changeing when it comes to

the broker fee. that globinger fee is -- broker fee is no longer needed to be split between the buyer and seller-broker. you have a total commission, or let's say your house is half a million dollars, 6% is the normal fee. so what you're talking about is there $30,000. that 30k is split if between the seller and the buyer. so you're talking $15,000. finish on both sides. and that's held by the seller who's selling the home. the challenge though with this $15,000 is it goes to both the agent and to the broker. so the agent who's been hustling and working hard to sell that home or to bring their client to a bun 7 of different homes -- bunch of different homes in order to get them into the right piece of property, you're just getting a percentage of this. it's usually around 60% with the brokerage taking home about a 40% but this now all changes because no longer will a seller have to do a 6% commission, and

no longer are it have to be -- will it have to be evenly split. you could sell your home and do no commission or you could say just 3% commission and and is just send it to your seller. this shakes up everything, charles, when it comes to how real estate works. still going through the courts, it's not official yet, but as you mentioned, a lot of real estate agents wondering what this means for the future of how they make money. i'll seven it to you with. charles: not onlying, but they are absolutely upset and p if issed off. madison, great breaking it down. let's bring in two folks who do this for a living, reality broker jonathan ashford along with virginia realtor rory remmic. if my phone's ringing off the hook, people are sending me mails. the implication is that somehow the buyer-agent just sitting around a, someone calls a house online, they call them up, and they make all this money for doing no work. >> yeah. and that's absolutely not the case. on most buyers i'm probably

working somewhere between 30 and unlimited hours. i've worked with buyers for 5 years before i actually made a commission. so the idea that we're just, you know, everybody is shopping online and that that a buyer-agents aren't necessary is pretty untrue and outdated. charles: roy, and also this idea that somehow the buyer-agent is making 6%, right? the money is split, first of all, the broker e gets a big chunk of it and decides how much the agent is the -- agent's going to the make. a lot of agents feel underpaid, to be honest. >> yeah. well, i haven't seen 66% in a long time. -- 6%. it's been closer to 55 for quite some time or 5.5, depending on which side you're on, you know? obviously, it depends on how much experience you have as a realtor, you know, besides what kind of cuts you have with your broker. charles: right. >> how much you get. chas khairallah right.

but do you think the system is -- and such a position where it should be changed then? >> well, we're already ahead of the curve, charles, because we're one of the 189 statements that currently -- 18 states that currently have buyer agreements in place. so this has to do the with the 30 some odd other states that don't have them. charles: chandra, let me go back to you on this. what do you think, you know, it's one of the other things i saw is who this impacts. over 60% of these agents are women, you know, they work in their community. they get to take the kids to school. there's a lot of social is impact to this even beyond this particular if breakdown of money. >> oh, shul. absolutely. you know, i think that this is going with to impact not only realtors, but, you know, if we're large enough to have a team, we're going to have to start laying off our team. it's going to impact inspect or

orers. -- inspectors. on the west coast we don't use lawyers, buyers' agents are doing all of the negotiation and contracts as a well. and now we're suddenly expected to maybe do that the for no commission? i don't really understand how this is going to work with. and, frankly, i think that the problem actually has more to do with a lack of inventory and the fact that a lot of homes are owned by privating equity firms. charles: right. >> this is the problem. charles: right. >> a lack of inventory. charles: right. >> i would agree with that statement. charles: sorry, we've got to leave it there. we'll follow up again tomorrow, but we're out of time, and aye got to hand the show over the to liz claman p. looks like we've got some momentum. liz: yeah, a little bit. and what's interesting, charles, the question, are we finally witnessing the broadening out of the market beyond mega-cap tech that wall street has been anticipating the. as we kick off the final hour of trade, the answer could start to be a definit