Doc, we go to november weve got two months where do you want to play ball for the last two months . I think you stick with the one that bring you, judge. In this case its technology thats where i want to be right now. Its where i am. Do i like a certain amount of material stocks right here as well, but i really like technology, and when this tax bill ultimately does pass, as i believe it will, and they are even talking about a bipartisan passing in the senate, if indeed that occurs, i think you get a significant boost from here. Okay. So on that note, why dont we take a check of where we are, right . We know that technology has had a great run to date. The tech sector is up 36 year to date. Bank of america with a note wondering if its too crowded. Its super crowded, they say is this still the place, steve, to be . I think it is. Dance with who brung you, as doc says. I think it is, and, you know, crowded is always a term i question because there are those many shares outstanding that each company has and iss got to own them. Right but you know the point. I know what it is everybody is chasing tech. Everybody is chase the hot money. Look, sometimes the hot money is right, and im not so sure its hot money the companies have performed they have reported earnings for the most part, and making a generalization here that are mindblowing the growth we saw in amazon, the growth we saw in google. Hopefully the growth well see in facebook, so there is some discretion in the in the sector rather. Some of the stocks havent participated amd the other day. They got whacked, so i think that as long as youre judicious in the stocks that you play, it will go, and statistics show and josh is the stagstition, you can back me up, if the market is up to this point, it will be up in the last two months. Lets go to josh in fact. Do you think people are underinvested in areas outside of the United States if you look at the performance of the eem, up 33. 5 and europe has also outpaced the s p 500. The vgk is up 22. 5 . Yes, were no slouch here. Up better than 15. Right. Who is to say that the best money is not going to be made elsewhere for the remainder of the year, even if the getting is good here at home. Vanguard says that the average investor the average investors spfl about 70 u. S. Stocks in the equity component of their portfolio, not overall, and thats versus the Global Benchmark which would have you be 50 u. S. , 50 overseas. Now theres a reason for why thats worked over the last few years and it didnt matter this year quite frankly, if you missed out on overseas, you still did pretty well in a capweighted s p fund so it didnt matter that much either but if that starts to shift and there are valuationbased arguments why it should, and then all of a sudden you get this period of time where International Stocks do better, substantially better than u. S. Stocks, which obviously feasible, historically, weve seen it before thats something i agree with you, scott i dont think most investors are truly prepared for or tilted towards. Thats a huge gap in home country bias, and i think its notable, just getting back to the tech sector discussion we talk about super crowded trades the note is basically saying the market cap weight of the s p is 24 tech, but active managers are 30 , so if you think that what weve seen over the last two or three years continues, then active has a shot to be passive, but if these trends reverse themselves hard, youre going to see huge disruptions in these otherwise beautiful charts in facebook, amazon, google why would they get disrupted . Why would it be more prudent to look at other sectors . What could possibly happen between now and the end of the year that would cause this to get turned upside down let me answer your question with a question. Are we investing based on the past or the future if were investing based on the past, Technology Companies have demonstrated investing kind of in both this is what got us here tech is the hottest place to be. Any reason to think that it wont continue to be that way . I dont know. Does facebook at 40 times earnings price in anything other than facebook being perfect in 2018 yeah, but thats thats always been a reason to to to sell. I own these stocks. Im thinking out loud. I think its a good question. The answer to your question, scott, is that as long option the fundamentals continue and the company is guided for good fundamentals, then the stocks continue to perform in lock step with the market. Institutional investor survey, hit 63. 5 today Peter Boockvar notes this is a 30year high in that particular survey the high alltime high is 65 in 1987. So everyone agrees tech should continue to run. Tech has the best growth tech has dominated in the economy. Everyone also agrees that markets in motion, tend to remain in motion unless Something Weird that no one anticipates happening. Seasonality, so we all agree so why shouldnt we have a consolidation. It can be more overbought. Why shouldnt all of a sudden something happen where we get a consolidation or worse, a drawdown we should all expect it will happen. To joshs point, in 1999 when technology was 20 of the s p, in 2000, they all corrected. Do i know if its going to happen in the next six months. Probably not you have to rook for other opportunities in the s p that can give you that value maybe in the financials that we see the opportunities or industrials where theres opportunity but this is the time where you take some money off the table and reallocate it across. And we continue to see them using the leverage that they get from derivatives that i talk about all the time take a look at eem today, judge. As you said, top of the show, 33. 5 year to date its roughly a 47 price right now. Look at what they are buying they are out there buying. Its 46, im sorry 46. 78. They are buying the 47 calls in december they are selling the 48. 50 calls in december. 100,000 times. This is a 10 million share block, and they are selling downside puts to help pay for that, so its not asking for an awful lot. I mean, they are saying 47 to 48. 5 thats not a huge move, but on 10 million shares, it limb pact even, you know, the big portfolios. The best days in technology i think, everybody would think, are behind you, not in front of you, but it doesnt mean you cant still generate return. In fact, alpha over the market by being there. A function of your time frame. Right, exactly. Boy, i dont know the earnings we got last week would maybe fly in the face of that it would suggest that the runway is a little bit longer than people had even been thinking. No. I just think they are past earnings already. To surats point, hes saying theres other places to look i think the Technology Stocks will continue to run through the end of the year, but you mentioned financials, you know, as a relatively more valuable place to be. I would also point out a sector which we havent talked much about which is energy. Crude oil has broke out of the range that its been in, the sort of 45 to 50 a barrel range. Its now well up to 55 a barrel you can take a look at the xle as a very simple way to play that, or you can find a stalwart like exxon mobil or look at something with a hiccup like texaco chevron these are due for a consol dhags. In the meantime though, you can find value elsewhere and make money. One comment about that. If you actually look at value and what sectors are comprising the cheapest stocks in the market and had you done that back to january. Youll be in retail and its going to be terrible. Oil thats your 52week low list cheap stocks, not saying value doesnt work over longer periods of time. Of course it does. Its how but entering argument i understand what youre saying and weve had this discussion. No signal on a oneyear time frame. My entering argument is youve seen crude oil break out of this range. Thats the reason. Not just because you can have the stocks right now and you have no competition. No one else wants them you want cheap buy macys for eight times last years earnings. Dont ask me what next years earnings are nobody wants t. Buy all you want. I go back to where we started the conversation if you think the momentum of the market carries itself higher into the end of the year if half the trades are machines, why wouldnt you expect that to happen . Why wouldnt you want to be overweight overseas which is much easier to do for the average investor today given the vehicles that you can do it with if you look at all of the different etfs that are available to you and the performance of them, which outpace the s p 500. I think you should but you have to be careful because the etf complex has gotten very good at marketing products that are not nine basis points on the average. They are selling currencyhedged vehicles they are selling different ways to weight, different baskets, and not all of them are going to benefit from these trends that were talking about. Were being very specific the ones we put on the wall just a moment ago and throw those back up there as we continue to have the list. Ewz has had a tremendous year effectively its banks and Oil Companies in brazil, you know. You look at china fxi, not even chinese stocks Chinese Companies that are listed in london i mean, i can go through each one of these. What joshs point is some of these etfs are so highly market weighted look at india, for example india is up in spied of what modi did with demonetization which didnt help anything in the Banking Sector so youve got a lot of quick money in there as well that could easily pull out. I dont question the opportunity overseas can you do that as well with international companies. You can go into honeywells and microsofts of the world and partake in it and be careful when you buy the etfs. You have to know what youre doing. Spend more than five minutes and not just chase a Ticker Symbol ewj is a great example thats heavy yen exposure and heavy export exposure. Its practically i would say i would say its knowing what you are doing. There has to be a fundamental reason, and if you look at europe, youre seeing fundamental changes, particularly in france with macrons initiatives to reform taxes and labor laws that are very much illustrative of why europe is doing a heck of a lot bert and will continue to do so. I agree with you, by the way you dont go across the board and take everything. Youre sort of making the point that cramer was make last night. In fact, lets listen to what jim said last night. I think its apropos to the kind of conversation were having we can discuss more of it on the other side its not just about the u. S its the whole darn world. Europe, which had been a constant worry flipped and became a source of growth this year eurozone has finally gotten its house in order, that by the way when the euro went up which helped all our earnings. China stayed steady. The rest of the world continued to accelerate, and now you have a term that many people dont understand, but what this whole top of my show is about tonight, synchronized worldwide growth. Synchronized word are wor wore growth everything seems to have come together. Hes right. People have been saying this for a long time. Synchronized global growth, weve talked about it for a year. Its a gamechanger. It is a gamechanger. Nobody has seen it in their lifetimes, not jim, not you. Nope. This is the point you made, steve, the other day with meb faber about the synchronized Global Economy which is a gamechanger. Exactly its just starting because while weve started on a tightening cycle, draghi came out last thursday and said hes not even close to that. May cut back on buying a little bit so you still have in some countries below zero rates in others youre just at zero. Look at bunds. Right, exactly, but let me get to one point the point is that i think the etfs that are put up there are perhaps even more crowded in Technology Without people understanding the fundamentals, and theres so much that can go wrong and as josh astutely points out, some of them are just weighted to a few stocks in just one or two sectors, but youve got to know what youre doing. All right we good . I feel like you want us to say more. Have Something Else to say, say it. You should have a portfolio that reflects the global opportunity set. If you think youre diversified because you own intel and nvidia, thats not real look, they have been great stocks. They may not be for the next five years, especially at the levels where that sector is now, so im glad that scott wanted to do this segment and Everyone Needs to understand there is a Global Equity opportunity set. You dont have to be an expert in every company you just have to understand what kind of exposure you want. And you mentioned this about negative Interest Rates. When that switches thats going to be really interesting globally because youre going to have rates here move and youre going to have currencies move all over the world you might get a temper tantrum that nobody expects. True, but others do i didnt mean to cut you off what i was just saying, be aware of that, that that could happen weve seen it happen here and it could happen overseas. But were so far away that even what historically has been a neutral Monetary Policy in any part of the world, including here. Including here. Were not neutral at all. Were at 1. 25 . Can investors afford for anything on taxes to happen . I was going to ask jon. Outside of 17. Yes, yes. You know, they are supposed to have the plan out today. Right. Now its been pushed until tomorrow. Delayed thats why we saw the indices roll over. Ive seen some whispers on twitter that some sources from the gop are telling people that it could be delayed until next week. Well, we expect it from the senate, what, the 8th next week, at least thus far. Weve expected to hear something from the senate on the 8th the house, we thought wed get something today judge. The point is there is no plan until you come up with the plan. True, true. Were shooting blind. It is tax week. Its early. Of course, they would like to get it out for veterans day, jim. Not done. The expectations are not met, of course the market is going down thats not the question. The question is how far does it go down and for how long and, frankly, i think in both of those cases the answer is very short, and, you know, you have plenty of evidence to look at this just this week on monday, right, we had the Mueller Investigation actually take a pretty big shot here the market went down and didnt stay down for very long and it didnt go very far either. And and that is easily explainable. Wait, wait. We can do this were only an hour show. We can do half a dozen other examples like that, you know north korean missiles being fired out, the threat of trade wars the point being is that for this end of the year, nothing is upsetting this market. What if i told you, okay hes going to be intolerable on the intrepid i want to say. Ill tell you what will disrupt the market when he fires mueller, and if this if this investigation goes from from influence on the election to financial dealings that predate the election, hes going to do it. That absolutely will impact the market. And then you buy it. If youre shooting missiles over japan oh, whats the thing youre shooting missiles over japan, the market trades down for what, a millisecond and the next time they shot it the goes down again. I didnt have time to really analyze your whole comment. You want to know whats going whats going to cause people to stop buying every day. What would happen in and of itself if they came out today and tomorrow and said the tax plan is not going to happen this week not doing anything on taxes in calendar year 2017. The market goes down 1 i mean, i dont want to make a call exactly like that goes down big in the morning and money floods in and it doesnt matter whether its the a lg os or professional Money Managers who have too much cash on the sidelines and are trying to play catchup this year. We know, because the weve had a lot of managers on this show since the middle of the summer who have been very cautious. They have taken money out of the market they have hedged and now they have to play catchup can. Look, they are taking money out of the market because they are being redeemed at a rate weve never seen in a bull market in u. S. History, and the cash on the sideline thing, thats great they buy a stock guess what somebody sells it to them so theres no such thing. Thats not true. Hold on, hold on, hold on. Wait a second somebody somebody sells it to come to the market with your cash and somebody gives you stocks and takes your cash, and then they have cash on the sidelines. I cant believe were having this discussion. I cant either so lets move on hold on, hold on, hold on all right. No one gets anywhere if theres 40 voices talking over each other. Jim lebenth ha l. You show up at the market with a bucket of cash. If someone doesnt want to sell to you, you have to pay a higher price to get that stock. If you buy my securities, i take your cash and i have cash on the sidelines why is this difficult for you, i know youre smart. Where are you on the cash on the sidelines myth i dont know if he bought anything else. Well, thats the point. The person i bought it out then has cash. Josh, the answer. This is why bounces occur on the dip because the stock price goes higher. Doesnt matter if somebody else has cash it matters who wants to buy. Can i go to the effect is what were talking about. Youre not even in the cavalry. Oh, stop it. Cavalry. Whatever it is. If the if they come out and say taxes are in 2018. General custer, its your turn to talk. Market trades down, are you a buyer . Yes. Are you a buyer yes. Are you a buyer. Sizeola. Are you a buyer yes. We have consensus, its not a good thing. Mike drop. Im never buying again. Im 40 years old im on the sidelines forever of course im a buyer. Its not indiscriminate. It doesnt matter its all good. Heres what else is coming up on the Halftime Report. Fly the halftime skies. Up next, one analysts call on the sector calling for investors to buy one big player and drop another. The call of the day is straight ahead. Plus, one outspoken member of the Silicon Valley elite as twitter, facebook and alphabet go before the House Intelligence Committee on their role involving russia and the 2016 election. You can not trust facebook. They did all of this bad behavior while they were under a 20year audit. Jason kalikanis has called rk zuckerberg and facebook untrustworthy. Hear what hes saying now. Scott wapner and the Halftime Report is back in two minutes [vo] progress is an unstoppable force. The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. Were back on Halftime Report. Airline stocks have had a turbulent 2017 but today Jpmorgan Upgrades American Airlines to overweight, and it downgrades united to underweight. It is our call of the day. All right. Surat, you get the first word here. I think its a little late to the party. United had a horrible Earnings Call management could not get out of their own way. We know that thats a fact thats already built in you own united not for this quarter but next year. Its down 20 year to date. Why are you downgrading the stock when its down already maybe hes trying to save you more pain. His target is 60 so if you look at what his reasoning is and you look at what united has done, they have a new Management Team in there. Had some blunders. Really couldnt focus on the call as to what the costs were going to be, but this is a company with great roots, has great you know, talk about the passengers that fly united internationally, right you want National Exposure fly united great overseas exposure. Okay. Customer service is not good across any of these u. S. Airlines but theres an oligopoly. Sara, be i own jetblue. Its up a little bit and never goes anywhere. This is the only airline that upgrade to buy why cant that airline go up who do i need to talk to weiss, hes got more cash on the sidelines. What is the problem with this stock versus the whole space, do you think . I think the thing with united, americans, delta, they have premium economy and Business Class which is where they make a lot of money jetblue has a harder time because they cant charge with that premium. Even with mint. A small part of their business. L. A. To new york. Overall they are restricted in terms of the gates they have nationally. I might get out of the stock. Heres what i would say about american. Love american, but, you know, in terms of the report, look, im going to give them the benefit of the doubt and say it got stuck in editorial at jpmorgans Research Department for six months because its that late nothing that he says about united that people dont know. I like when analysts divide up their ratings because it shows they are thinking about it this is time you buy united. Not the time you sell united. I agree with steve. Its a kitchen sink order they couldnt have said anything positive. Answer the call on any want me to see if jamie baker has a report whats your number . He can catch me outside. Okay. Go ahead i didnt mean to interrupt. Hes a good analyst, by the way. Well. But he when american announced their earnings, and as you note one of the airlines i fly all the time, american the when they announced their earnings, they were one of the companies that beat, talked along with southwest about rising ticket prices, but thats in 2018, thats why they see, and since they have cut capacity at all these airlines thats likely what we will get. One of the fears we get is they are talking about increased capacity. They are talking about increasing it, but they have cut it. They have cut it, and by the way, if you have geosynchronous growth you need capacity to meet demand to jims point, they will at some point raise prices. Wait until they raise prices and then all the analysts look ahead to 2018 and tell me when in 20 is do they start raising prices. And i think brad gershon on the show from altitude, tremendous track record, put it up there with a best hes a large shareholder of united, okay im sure hes got ideas in the manage president s ear helping them get through this. All right coming up, were going to give you the trades on veris, wynn, Electronic Software and health take a look at dow, another recordbreaking day, it was a tripledigit gain and now only 50 points. Were above 23,500 for the first time, now were below it a mostly green day led by intel. Halftime report back after this is the monolithic view of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Take a look at dow, another what we do every night is like something out of a strange dream. Except that the next morning it all makes sense. To power global ecommerce Fedex Networks are massive, farreaching and, yes. A little magical. Fedex. Com slash dream were back take a look at european markets quickly. Its a flat day for the ftse 100. Germany and france in the green. Lets do our electronic blitz. Electronic arts drops on weak holiday forecast. Whats going on i think this is a little bit title specific which is why you dont see the stock off as much as any other company that misses because i think the market is saying, okay, they didnt have a specific title hit in this quarter. Next quarter its back to normal, so i would be more apt to buy the dip than want to get shorter or get out of the name. Doc, youre always talking about when it comes to casinos, macau, particularly wynn, up 2. 5 today. Even that horrible incident in las vegas was not enough to derail these guys. Obviously macau is the driver here today because those numbers were up 22 year to date the street expected like 14. 5 huge unusual activity in wynn as well as melco. Both those stocks breaking out, alltime high for wynn today. All right jim, when you give weak guidance in the kind of market were in now, you get punished like you see there, down 11 for checkpoint. Yes, you do, but ive got to tell you the guidance doesnt fall that far below where the analysts expected earnings to come in. The answer to whats going on here is very similar to whats going on with electronic arts. Theres profittaking going on this stock has been a horse. A lot of stocks have been horses out there. I think people are just saying, okay, this is good enough for me im taking money out this is probably a buy the dip opportunity. A very attractivelily priced stock in a great sector, ie, Internet Security and technology security. Scott, if i could, im just correcting myself. Alltime high for wynn, 52week, not an alltime high. Guidance is one thing, earnings is another. If you lay an egg your stock gets whacked. If you walk to an emergency room, even them or team health they say they will explore a sale team health was just acquired courtesy of blackstone earlier this year. I think its going to be very, very tough, particularly with trump cutting back on social programs and, of course, the hurricane did have an impact but i dont think its all that. Sarat, verisk, alltime high. We do own. Up 7 . 7 organic growth, highest in two quarter. This is a Data Analytics company in the insurance base. Firing on all cylinders. Made a couple of acquisitions. This stock is doing really well. Now to sue herera with the haid latest headlines. Hi, scott, hello, everyone. Heres whats happening at this hour british are Prime Minister theresa may says the uk stands united with the people of new york in the wake of that deadly attack that left eight people dead mr. Speaker, i know that members across the house would have been appalled by last nights cowardly terrorist attack in new york our thoughts are with all those affected, and we stand united with the people of new york. The New York Stock Exchange observed a minute of silence in honor of the victims of that terrorist attack new york Police Officials say the attacker had been planning that attack for weeks, and he did it in the name of isis the sentencing hearing for Army SergeantBowe Bergdahl continuing this morning. His lawyers are planning to call three more witnesses to testify on his behalf. Following, that the judge will begin deliberating his sentence. He faces a possible life sentence that is the cnbc news update at this hour. Scott, ill send it back to you. Objection sue thank you very much. Twitter, facebook, alphabet, they are on the hot seat in washington today one of Silicon Valleys most outspoken stars is calling for a massive shakeup in that industry hes with us next on Halftime Report. First though Brian Sullivan with a look at whats coming up on power at the top of the hour. Will the Federal Reserve shock the world and raise Interest Rates again, and if not, could they sharpen their inflation talons and get even more hawkish, potentially marketmoving news coming up on power lunch. Plus, high end and low end goods, the middle bad. Were digging into why so many Family Restaurant chains like chilies and applebees is getting burned and check this out a preview of tonights game seven at dodger stadium, winner take all world series. One. Urdger coowners is on o federal panel today. Lots more on power but more halftime after this. Another day of work. Why do you do it . Its not just a pay check, you actually like what you do. Even love it. And today, you can do things you never could before. Youre developing ai applications on the cloud. Finding insights hidden in decades of medical documents. And securing millions of iot sensors. So get back to it. And do the best work of your life. Ahead of big earnings from facebook and amazon the tech index is up before the report and sold a month later according to our data partner kensho the s p is up just a quarter of a percent in comparison in the same time period now, back to scott wapner and the Halftime Report traders. The senate Intelligence Committee finishing a hearing with twitter, facebook and alphabet executives minutes ago regarding russian involvement in the 2016 president ial campaign our Kayla Tausche is on capitol hill for us. Hi, kayla. Reporter hi, scott the meeting ended with the republican chair imploring these companies to follow the money on their own platforms, and overall it was an incisive and largely bipartisan grilling over how exactly these companies could let their defense down frequent calls about a lack of oversight and two senators in particular questioning why it wasnt the ceos of these companies appearing in person in washington to defend the technologies they founded. Heres West Virginia senator joe manchin. I would hope that your ceos, and i agree with senator king. I wish your ceos would be here they need to answer for this will it cant be a business model. Its got to be a security issue. Reporter facebook, twitter and google all detailing the effort they are taking to combat foreign and especially russian influence on their platform, though acknowledging they had only done so in response to research and prodding from this very committee facebooks general counsel in his answers today, he upped the estimate to 150,000 for the number of people who were exposed to russian content during the election, and senator mark warner, who youll be talking to as well, asked these companies to commit their resources after getting them to acknowledge that this activity was still happening on their platform. Will you commit to continue to work with this committee, to provide Additional Information and additional documents as needed, as we continue to explore this challenge and threat on a Going Forward basis . Well go right down the line. Mr. Stretch yes. Yes, absolutely. Mr. Walker . Absolutely. Reporter there is one more hearing today, but, of course, this work is not over. Because there were votes happening during this hearing, the chair asked for seven additional days for any member of the committee to follow up with questions and several senators, scott, had specific followups and assignments for these companies. Kayla, thank you very much. Kayla tausche following that story for us on the hill our next guest has been very outspoken about these very issues Jason Calacanis is an Angel Investor jason, welcome back. Its been a while. Thanks for having me. Senator manchin called out these companies saying the ceos should have been there was that a mistake yeah. That was a huge strategic mistake on the part of zuckerberg and, of course, google and twitter it shows a complete lack of respect for the democracy that allowed them to receive tens of billions of dollars in wealth. In fact, zuckerberg is on a 50state tour so he has time to visit 50 states and meet with farmers and cops and firefighters, but he doesnt have the time to go before the senate and protect the democracy that has allowed him to succeed more than probably, you know, any other person in history in accumulating wealth from our democratic system, and, in fact, adding to the insult is that hes in china right now trying to get facebook and meeting with their president trying to get facebook in china, so obviously the growth of facebook and making money is more important to zuckerberg than to protecting the american democracy. Im curious i mean, youve been very critical of facebook and mr. Zuckerberg himself. Yeah. These are your people the why are you yeah. Why do you have this position well, im an american more than im a technologist. First and foremost, we have to protect our democracy, and i think zuckerberg has been very cavalier about it. In fact, he said he thought it was impossible and ridiculous to think that fake news would impact an election then, they said that it would that it was only 100,000 people impacted by russian ads being placed on facebook then at this hearing, we hear that 120 million were exposed to fake news and now they upped it again today to 150 million, and during this testimony i believe that the facebook general counsel actually lied or is completely uninformed about how their platform works, so its very trouble to me as an american and all americans should be very troubled by facebooks cavalier response to what is a very serious issue, and this transcends, you know, anybodys holdings in Technology Companies or share price this has to do with our democracy and facebook allowed the 5 million advertisers to do essentially whatever they please hon their platform while doing things like not letting xelttors participate, so theres a grand lie thats occurring, that facebook is the best platform you could ever have for reach people to sell products or to influence them, and the sales team is going out there with packets and marketing materials saying let us help you win an election, and then zuckerberg is lying to the American People and going on this phony 50state tower and wants to run for office if he wants to run for office, this is a perfect opportunity for him to take ownership of what his platform is capable of, and its just an absolute disgrace that he didnt show up for this. Do you think that these Companies Need to be more regulated or frankly regulated at all from here forward, and do you think that thats ultimately whats going to happen here . I do believe that they need to be regulated, specifically facebook, because they are taking no action to really to work on this issue, an they have a reach now that is colossal were talking about 2 billion people on planet, and what americans need to understand is not only can American Companies buy american users on a very microtargeted basis, other countries can buy american users on a microtargeted basis, so yesterday when the facebook general counsel said to kennedy, hey, listen, you cant microtarget me or any individuals, that was a boldfaced lie facebook allows you to target very small audiences with something called custom audiences, and they also allow retargeting. These are two key word that the senators should focus on with facebook specifically. What retargeting means is if you click a link and visit my web page, i can then readvertise to you over and over again. If you bought something on amazon and have seen that advertisement over and over again across the web, thats retargeting. You can upload lists of emails and target people by, that so facebook is being completely dishonest i think during these, and also google had a dishonest moment when they said they werent a media company, that was a boldfaced lie if you look at Youtube Youtube has studios where they record contempt. They underwrite the creation of content. They Police Revenue with content providers, and as we all know they have set editorial contempt putie pie, the number one youtuber was sanctioned because he was doing some offensive material so if you do all of those things youre a content company, so to lie to the senators is just it gives of the American People and the political process and politicians the impression that technologists believe they are above the law and thats why this is all coming crashing down its bad for the industry. I get your patriotic stance on a lot of this, but what about from the investor perspective. Chamath palihapitaya, i dont know if you know him well. Very well. Raised the issue of facebook and google being regulatory and those issues being the single most issues surrounding those two companies. How should investors be thinking about these stocks given all of the noise around it . Can you separate being an investor from being a patriot . Yeah, well, i i think that these companies are going to have to take it more seriously as we talked about, but they are the greatest investment you could ever make because they are marauding capitalists who dont care where the chips fall up until this point and what weve seen from our government, from obama hand n obama and now to trump that these Companies Wont be sanctioned by the u. S. Government they will run among without any sanctions, and its up to the eu, and the eu obviously gave a 2. 4 billion fine to google and the eu will become the finer regulatory organization, but here in the United States i doubt that were going to regulate these companies, but this hearing does seem to be a tipping point. Right. This could be the point where they tip i think it could be an extension crisis for them. We may not allow facebook to buy the next wha tsa pp or insta gram would i say if those two acquisitions were being put up right now they would be under serious scrutiny. I dont disagree that there will be more scrutiny. Are you a shareholder in any of the companies that youve criticized i have a balanced robo portfolio in well front. I dont know exactly whats in it i assume these names are in it, but i dont trade them actively. The only thing i trade actively are private companies in Silicon Valley where i have a huge advantage. Jason calacanis joining us today. Hes an uber investor i would have said this to his face, no respecoffense, but tha like not caring about the laws that they deal with. Two things that make this not a extension crisis. Glad youre back. Two reasons why you say crashing down. Facebook is making a new alltime high right this minute and google is not far away so im not sure how anything is crashing down on them i agree with all of your points. The big issue is these people dont think of themselves as American Companies, and a lot of the workforce. Which is disgraceful. Okay. We agree on that the other issue, youve got a problem, want to do a boycott, got a problem with a company that you think is hiring with discrimination, already, im not going to buy their chocolate bars anymore ill buy someone elses. Nobody is dropping their Instagram Account or facebook obsession and nobody is stopping using google and going to byng. I dont see the downtrend. It has to be the regulators who do this, it has to be a huge outcry youre 100 correct that no consumer is going to give up google they have a monopoly position. No consumer is giving up facebook, instagram, is wha tsa pp. Youre not switching your email address because you dont like what happened with russian ads. Im not. And thats why this is such an important issue that the government, you know, take into consideration which is consumers are now locked into these platforms. Its essentially like the monopolies we used to have in phone companies or the monopolies, you know, we see in transportation that come up from time to time, and thats why Government Intervention is going to happen here, but i think thats the arrogance of the ceos of these companies that could wind up being their downfall do i think its a 90 chance do i think the stocks are not worth earning . Of course not. Its a 5 or 10 chance that our government stands up to these companies, and i think its a 100 chance that the companies are a great investment for the next ten years i dont think they will come crashing down, but they do have to take a deep look in the mirror and ask themselves are they americans and do they appreciate the opportunity they had here in america to build tremendous wealth, or are they proud of the fact that russians can buy ads in rubles . Al franken destroyed them yesterday. The fact that the general counsel of facebook could not say i will not take north korean yuan was the biggest embarrassment ive ever seen from a technology executive. Weve got to go. And to your point about uber, i think uber has made a lot of changes, right, so they are working ton. I agree, and i hope things get better there. And they are getting better. And were back right after this i was playing golf days ago. Love golf. I used to love golf. Wait, what, what happened . I was having a good round, and then my friend, sheila, right as i was stepping into the tee box mentioned a tip a pro gave her. No. Yep. Did it help . It completely ruined my game. Well, the truth is, that advice was never meant for you. I like you. You want to show me your swing . Its too soon. Get advice thats right for you. Investment Management Services from td ameritrade. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. 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Our pal ben white, aka Morning Money ben on twitter says the announcement cis comin tomorr tomorrow were told the announcement will be in the rose garden or east room. They expect the format will be the president will talk and the nominee will talk. He or she will have a few words to say theyre holding out the option of janet yellen at the white house. They got earnings coming up big upside call. Expedia stock took a big beating. I think ceo will make improvements you buying more i am buying more. S twitter held the gains and they are back up acisco systems hit another high ual im buying that in the downgrades power lunch starts now. Thanks very much heres whats on the power lunch menu for this wednesday. Investors kicking off a new month on a mostly positive note. Stocks booming around the globe as well. A trip inside those numbers straight ahead no tax plan, no problem for the markets. One day for the delay for the gops big overhaul what are the hot potatoes holding the upper big release of that big bill