Take a look at some of the individual nasdaq winners year to date. Align technology, taketwo interactive, vertex, wynn resorts, micron. You stick with whats working. For most of those names, yes. They show growth if they can continue to show that growth absolutely most of these names fundamentally, when you look at, for instance, micron, i dont know whether or not its certainly a buy or not today, this moment, but when you look at this after it broke through 32. 5 it went straight up towards 50 i mean almost every single day yet when you look at the valuation and the Growth Prospects of this company, theyre still very, very compelling so i think there are plenty of opportunities out there, even in some of these names. Now, wynn, i love that name, absolutely love that name. And you love steve wynn. I sure do, you know why, because he led the way he was buying his own stock at 53 all the way up to 100 but can it hold up at these valuations at 170 a share im not so sure. Well talk to the analyst that upgraded wynn at the beginning of the year. Where do you stand on the winners . I would take a little different view id say take some money off the table. These stocks have really run there is still opportunity out there. We Like Companies like oracle that really havent had that rush yet that the microsofts and adobes have but stick with some of the other good Balance Sheet winners that are going to do well given what we have now with the tax policy and if we get rising rates because Companies Like microsoft and intel, the Old School Tech that havent really gone up that much i think will have a good tailwind behind them. Its a challenge when you see a run Like Technology has because a lot of Fund Managers then inherently become overweight their Technology Position just because of the rise weve seen. Are we going to see just trimming of positions just because of Portfolio Management discipline i do think youll see some repositioning here if we let some of these stocks run, theyd be 15 , 20 of the portfolio. Yeah, youll have repositioning. But i do think the winners are on to something. Were very focused on s curves and were seeing a lot of these stocks and Companies Moving into the sweet spot of the s curve which is 10 to 20 share. Whether its mobile advertising, whether its Online Retail, whether its streaming video so i think were seeing scurve territory here thats an area where you shouldnt sell. Can you give us some specific names . Sure. Amazon, Online Retail is hitting 10 of retail in the u. S mobile advertising, facebook and google own that. 20 of total advertising streaming video, again depending on who measures it, 20 . So again, selling in that territory is usually not the best idea unless youre just trimming positions. I think the Investment Community really remembers 2016 january very well, and i think a lot of people are talking about the potential for january 2016 possibly does it happen again in january of 2018, wheres the place that you look at technology is probably one of the first places i dont know and i agree that you can take some names off. I sold out of my crm and my adobe just the other day im going to still hold microsoft and sap. I believe in them. I think the Software Services theme surrounding the cloud environment is going to be something thats going to be with us for much longer than we anticipated, but i do think you get a little bit of a market tremor possibly in technology in january. On the other side of that why technology specifically 24 24 sector weighting thats incredibly high versus the historical probably pms. Thats the first place theyll look to sell something but on the other side of that, i think thats an opportunity. Mr. Wonderful. Im in the camp to sell down a tech at below 20 allocation to portfolio heres my argument its going to be very, very hard to find a tech Company Growing by 20 next year but youre going to finding lots of companies that are 100 domestic revenues that are small, names that we never talk about, vail resorts, interdigital, names that ive been mining, trying to find companies on a screen basis, whos paying 36 tax bring them forward because theyre going to have a 20 bump in Free Cash Flow and i think theyre going to beat why dont you apply the same to technology . Facebooks tax is going to go to 7. 8 from 20 . Netflix will go to 10. 9 from 28 . Apple will go to 12. 3 from these are massive declines in the Corporate Tax rate exactly what you said for that stock youre talking about. Not as massive as youre going to get a california manufacturer thats paying almost 40 tax going down to 21 , their Free Cash Flow increases by 20 and theyre not trading as a crazy p. E. Right now. I believe that the russell 2000 or some subderivative of it are going to beat the major indices. This is the first time in my life ive got an allocation over 20 to midcap stocks it was a lot of work to find these names. Ive never heard of them i never heard have vail resorts. They make a ton of money, they pay a defensiividendividend. They sell lift tickets in july now. They dont care if you dont show up. Its fantastic you can find a ftse russell index that mines for those financials, im going to be on that hard, mel, because i think that space is just going to gear up in the 2018 i think services and some of the basic materials that have had a great run in the last two weeks or the last month, i think they take a pause at least in the first week, maybe the first two weeks of next year so obviously im not saying get out of them, but im saying if you had those, i think they would be prime candidates to be overwritten with calls, and i think banks are not the ones you want to overwrite because i think that scurve, to your point, i think is just in the sweet spot for financials right now. Wheres tesla on that scurve . Youre an owner of tesla and buyer on the dip without a doubt its our largest position with the exception of gbtc. Which i want to ask you about in just a moment but for tesla we think that the market is not pricing tesla efficiently. We consider ourselves if you give us a long enough time horizon, deep value investor, were the closest youll finding to a Venture Capital fund in the Public Markets tesla is an autonomous taxi network company, if you look out long enough. Thats long enough . Five to ten years weve got the modeling weve done extensive modeling on this, four years worth of it we think that it is going to shift from hardware manufacturing to software and Services Much higher multiple how does it fund itself in this five to tenyear time frame . It will keep coming back to the markets. If you have our point of view and think this is a 1 to 3 trillion opportunity globally, not just for tesla but for those who win these natural geographic monopolies, you buy it now. So you dont care about deliveries that theyre going to post over the weekend . It doesnt matter if model 3 comes in at 5,000. Were happy to take those opportunities when the focus is on model 3 and cash burn, we wait for those opportunities we wait for those selloffs. Disruptive innovation gives us opportunities all the time and we use those opportunities to move in. What if its just a car Company Trading at a crazy multiple. Its not. Its not. Its a Software Company, right thats last night we were talking about this exact topic. Its not a Software Company they want to be a Software Company but they absolutely are not. They are hardware all the way and thats why are valuations are different. I just bought a tesla two days ago for my wife, she wanted one. I looked at this and said to myself it looks like a car, it has four wheels. You drive it. You need a license. One day were all going to wake up, including everybody at this table, and say its a car and it should trade as the same so apple just made a phone. Im just throwing it back to you. No, no, my response to that is you are going to be delighted that you bought your wife that car because some fleet operator is going to come to you once these networks launch and offer you 100,000 for it. Then youll know were not talking about cars anymore why arent they all just utility its a cattle car box on a train why isnt all of this industry going to get crushed on marge ens. Four wheels and a box that arrives at your house to take you somewhere. Because these are software and Services Companies theyre a taxi Network Tesla has collected 8 billion miles worth of data. The miles is perhaps the most valuable thing and they have a jump start. Knowledge of the database gives them a proprietary position that they can drive theyll have the road to the best. Autonomous cars only get smarter when they drive miles. The automotive sector is under huge risk of total commodity. We totally agree with that. We totally agree with that so those companies that stay in the hardware space are shorts. I agree with you those who make the transformation, very hard to go from old dna you have to go electric and then you have to go from a hardware to a services and software model. Very hard for traditional auto manufacturers to do that you need to be a tesla or a google or you need to partner with them. And gm bought Cruise Automation, very interesting gm is in troublebut Cruise Automation is hes not convinced, i can tell the look on your face. Ive seen this movie before within 24 months you along with grown men will be weeping owning that. The markets will be the determiner of the winner of this fight. Weve been rejoicing and i believe well continue to rejoice. Where do you stand on tesla, surat . I dont own tesla, but i own gm. How do you feel about every single car company is a short . Weve had this disagreement before there are going to be winners out of this. I think gm will be one of the winners because they have the option value they also have cars on the road being driven right now as we go from where we are to the next 20 years, there are going to be a lot of bumps along the road but i want a company like gm with positive cash flow, yield trades at seven times earnings at the same time i can get a bump and option value to play, kind of a tesla type move. Thats true, but if youre talking about the transformation we see, youre not going to be investing in companies that pay these dividends and dependent on investors who are depending on those. Youve got to be very aggressive, very aggressive. I think what i would do is get some Downside Protection on gm and get the option value its a call option. Gm is a call option. Tesla is the real deal. The valuation that we talked about when you look at the rest of the market, this one is trading with a huge discount with positive tax rates that will help them as well. I want to move on to gbtc, thats your top performer i presume in your fund. Yes. You actually bought this back in 2015. Yes. Youre the first public manager to purchase gbtc. Were still the only etf holder, i believe, to own gbtc we bought it when bitcoin was below 250 today its about 14,000. Have you been trimming along the way, and do you own the actual crypto currencies we are not allowed to own them we are a registered Investment Company so we must own securities the way weve been trimming, and this is more for tax purposes, is weve been taking cash in lieu when weve gotten creates in our etfs and so that has kept the position size below 10 , which is absolutely where we have to stop there are some notable shorts andrew left was outlining his case against gbtc. Among the arguments, the bear case, it trades at an extreme multiple to its underlying asset, which is of course bitcoin. The custodian which holds the physical bitcoin, xapo, they have the bunker storage in the swiss alps, former military bunkers actually hold the physical bitcoin, they cant get insurance so those bitcoins are not insured itself does any of this concern you so weve been obviously studying this. We did incredible Due Diligence with gray scale before we entered the position so the premium, we believe that it will go to zero when there is an instrument that takes the friction out of buying bitcoin like whether its a closed end fund or a bitcoin etf. The bitcoin etf has been pushed back quite a ways since the s. E. C. Forced everyone to retract their filings. But lets say we do get one of these funds. The premium will go to zero, but the demand for bitcoin will come back in strongly now, we cant own anything but gbtc to gain exposure so we dont have a choice here. Arent you afraid that tomorrow or the next day or the next day or sometime soon that will happen and that premium will collapse and your position will decline i think the offset will be the demand for the underlying bitcoin. Weve seen this a few times already. As the futures have come in, as goldman has come in saying they may trade this, youve seen a natural floor. So were in a 10,000 to 20,000 they have tried, the s. E. C. Hasnt approved it yet. If its a security we could. Would you rather own that than this . It depends. Or in addition to maybe in addition to, but ill tell you there are more than 1,400 Crypto Assets out there. You know, there are a lot of governance issues out there so we would have to really do our homework on some of these. Now, the New York Stock Exchange has announced that theyre listing etfs on bitcoin. Theyre filing. They have filed and the cboe has filed for six of them. But it was rejected by th s. E. C. These are the most recent ones these are just a week old. And with Gemini Exchange so theirs is going to be coming. We dont know when, cathie, but my question to you is with six more of them filed for and the two that have been filed for i believe at the nyse, obviously the more of these that there are, the better access everybody ha has, including your fundi, correct . Sure, sure. 250 billion. 250 to 275 billion. You know, i know a lot of people say dont compare this to apple which is nearing a trillion. But this is so much bigger of an idea than even apple, which is a pretty big idea. To that point, i heard you fundamentally explain to kevin and all of us here why you own tesla. Fundamentally, why are you so heavily invested with bitcoin . The reason we moved in in the first place is art laffer, my mentor, we wrote a white paper about bitcoin. Could it serve the role of money. So we went through that and he ended up collaborating with us on that paper. He said, wow, finally its a rule, theyre bringing rulesbased Monetary Policy back and he said i think its the wrong rule, a quantity rule, 21 million units. I dont think thats okay for a store of value, so thats a massive role and if you think its going to take 10 of the gold market then its valued where it should be if you think its 20 , then its not. The right rule would be a price rule according to art and there are other Crypto Assets out there that are starting to think about price rules. Now, maybe bitcoin i think most Core Developers would rail about this but maybe it would have both a store of value role and a means of Exchange Role these are huge roles. You dont think bitcoin cash no. Its subject to the same rule which is a 21 million unit so, no. And its controlled and thats a big problem the fact that bitcoin cash is controlled, controlled by two individuals, that is a huge difference from bitcoin, which by its decentralized nature and the fact that shatoshi is gone or hiding, there is nobody in charge over at bitcoin thats the plus. The consensus versus bitcoin cash with veer and gahon vu, that is a big problem. One of them is an anarchist, maybe both of them. And just watching bitcoin cash trade relative to bitcoin core, its starting to lose share. For a while it had a burst, many people thinking this is chinas this is chinas go at bitcoin, but i dont think thats happened. Are you invested in any of the other gray scale products . Z cash Investment Trust . No, were not if they had if ether, not ether classic, we might consider it but not classic thank you for joining us. Cathie wood, coo of arc investment management. Heres whats coming up on the Halftime Report. South korea makes a big move against bitcoin. The crypto currency falling. Is this something to worry about, and will the attack carry over to other countries . Also ahead, the call of the year this analyst made a call almost one year ago that was dead on. Youll be amazed before the break, how the indices have fared in january since 2010 according to our data partners at kensho the nasdaq is flat the s p down 0. 3 . The dow and russell down about 0. 8 for more go tonbcokeho cc. M ns the Halftime Report is back in two minutes. Digital id cards, they can even pay their bill beep bill has joined the call. Hey bill, were just phone hi guys, bill here. Do we have julia on the line too . k, well well just phone hey sorry. I had you muted. Well yea lets just phone so what i was thinking ok well well phone yeah lets just go ahead phone oh alright the awardwinning geico app. Download it today. It can detect a threat using ai, and respond 60 times faster. It lets you know where your data lives, down to the very server. It keeps your insights from prying eyes, so theyre used by no one else but you. It. Is. The cloud. The ibm cloud. The cloud thats designed for your data. Ai ready. Secure to the core. The ibm cloud is the cloud for business. Yours. Welcome back to the Halftime Report. We are highlighting the best analyst calls of 2017. Today were focusing on wynn rob in farley upgraded the stock to a buy shares of now up 95 this year she joins us on the phone. Robin, first of all, great call, congratulations. The driver of that initial january upgrade was your improved outlook what are you seeing now and is that enough to support the stock from where it is. Sure, yeah. The stock has obviously been a strong performer this year but we continue to have a buy rating on the name going into 2018. I think were still seeing improved performance in mccau so continuing to see Strong Performance there and some catalysts in 2018. Is this primarily, robin, based upon maccow or some of the investments theyre putting into boston it seems like theres a commitment to build here in the united states, almost to try to catch up now to where maccow is. Thats where the new projects are focused right now. The new projects are in vegas theyll break grounding in early 18, theyre working in boston, but really about 85 of the stocks value is still driven by maccow and in 2018 i think that will be the driver because things under construction will add to the outlook in 2018. Robin, its joe in march of 2014 this was a 249 stock, i believe in early 2016 it fell to 49. 95. The stock is 169 right now. Is there enough growth, enough revenue coming here in the next year to take the stock back to that march 2014 high well, that is certainly not what our price target is right now were looking at 174 price target but i do think some of the catalysts that we think will happen in 2018, one of them is mgm opening in maccow in january. The reason thats a catalyst for wynn, theyll benefit from the foot traffic from that and also not having construction on that side of the building, so that opening i think will be a benefit. Theres a bridge thats going to be connecting Hong Kong Open at some point in 2018, also helping to increase visitor volume so we still see upside. And theres also going to be a trolley. That would lead to better traffic for the wynn property. Im wondering because your price target is 174, the stock is 169. It doesnt sound like youre very confident. Well, i mean we you know, the stock, all of these names are fairly volatile, so thats where we are now i think theres probably more upside to Downside Risk to our outlook. The numbers just came out for vegas for the month of november and that market continues to hold up i think better than people have expected as we said, new projects under way in 2018 as well. Robin, great kale call on wyn whats your call for 2018. When i look across at other leisure names we cover, we feel very good about the cruise lines and have a buy on carnival and royal. Last time it was debt oriented and concerned about leverage we dont care about that anymore . Do they have to refinance anything, or does it matter . Youre talking about for wynn yeah. Well, now that their major project is opened, so there will be increased cash flow from that and theres financing for these other projects, you know, in place already so theres not the not the same risk as when a company is in the middle of building a multi billion dollar property now that its open and generating cash flow. You know, steve wynn when i spoke to him probably in the spring was so optimistic about the Trump Administration and what that would mean for his business weve seen part of that materialize. Im wondering also, robin, if you have tax in your model yet what sort of impact that could be, particularly as wynn is spending so much money on expenditures actually with so much of the stocks value and cash flow coming from maccow, these names this name in particular is not as impacted as companies that are much bigger u. S. Income taxpaye taxpayers. Like an mgm yeah. So is that in your numbers at all across your coverage universe we have adjusted for the lodging names and for power sports names, names that are more u. S. Focused where its been meaningfully impacted the outlook. Those that are heavily focused in maccow and have tax shelters in place, not as impacted by those changes. Robin, anything about japan or is this just pie in the sky as it has always seemed to be, or is it real and tangible, something you could actually model . Japan is always out on the horizon but definitely not something that i think people should be including in their estimates or expectations. Every year it seems like this is going to be the year that japan will legalize it its certainly going to be a significant opportunity if that does happen, but it didnt happen in 2017, so of course its the catalyst that is always at the same point on the horizon and hasnt gotten closer yet but certainly something that would be a driver for a company if they were at some point permitted there. Robin, thanks for calling in. We appreciate it. Thank you. Robin farley of ubs with our call of the year first up, j. B. Hunt Transportation Systems lowering its First QuarterEarnings Guidance by a lot, jon. If cathie was here, she could comment on whether or not theyre going to be buying some of those semis, the tesla semis. This was a horrible announcement for them the guides aance was bad stock urngd pressure, not surprising. Range resources moving up today. This stock is still virtually sitting on the lows of the year. Ive seen a lot of people that have got more and more bullish on this stock but theyre bringing down price targets. The move today is not showing me much barclays has it as a buy. Nintendo is delaying its 64gig game card. You know what i learn, people think the demanding is constant so it doesnt matter if you shift hardware a quarter or a year, it will still be there nobody cares its just the platform, its been around forever, its a brand. Just because it moves a bunch of revenue out a couple quarters, so what. The switch has been the hottest you couldnt find it in stock anywhere for christmas. And i assume that demand will be there when they bring out more memory. Diamondback energy. Oil prices have been moving higher and the move to find some value opportunities in the energy space, i am long f. A. N. G. I am going to stay with that pete correctly highlights a lot of these natural gas themes like chesapeake, southwest, theyre up 4 on the Colder Weather but i do not trust the Natural Gas Energy plays just yet. Id stick with more of the shale plays. Such as well, we talked about concho. Synchrony financial hitting a new high today. Youre seeing consumers spending more and more the stock is at 15 times earnings, still cheap and probably has room to go. You like it. I do. Weve pulled a little back but compared to the rest of the financials, this one is cheap. Financials including banks, including big credit card companies, put amex, visa, mastercard you have to watch credit terms, they will be hit first theyre also the top line. They just bought receivables from paypal as well. Lets get the headlines and check in with kayla tausche. Heres whats happening at this hour. The southern part of the u. S. Is not being spared from this nationwide cold snap these pictures are not from new york, theyre from nashville, where the National Weather service is predicting a fourday stretch of below freezing temperatures, starting saturday. A brief but powerful storm with wind gusts of 75 Miles Per Hour hit the gust of belgium last night causing a crane to collapse on an Apartment Building the accident caused widespread damage one woman was killed and her husband injured. The rich really are getting richer the fortunes of the worlds wealthiest rose 23 , according to bloombergs billionaire index. Jeff bezos had the biggest gain adding a cool 34 billion to his wealth while Mark Zuckerberg also had a good year, adding 22 billion. One professor just hit a major milestone teaching for 100 semesters. He has no plans to retire and has been teaching Construction Management at Austin Community college for 33 years and says he still looks forward to going to work every day shouldnt we all be so lucky thats the cnbc news update. Dont you look forward to going to work every day, kayla i do, i do. Me too. Glad we settled that. Next up, jon and pete tracking some unusual activity how theyre using the moves in options to make bets in a mining stock and in an emerging market play halfte po ckn o. Imrertba itw whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley you myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Welcome back to the Halftime Report. Jon and pete are over at the telestrator with some unusual activity in a mining stock and an emerging marketplace. Jon, youre up first. Ewz, i know you guys talk about it a lot because brazil has been getting hotter. Look at this move from june. Look at these stair steps up, mel, just like that. Yeah, stairs as its been climbing up. It peaked a little over 43 right now its at 40. 42 theyre buying the february 42 calls. So its a smart buyer, they bought a lot pretty quickly. Theyre not asking for it to do a lot because thats a buck and a half basically from where it is right now but given what they paid for these 7,000 or 8,000 options, they could double their money on a 40 or 50cent move in the next couple of weeks. Ill be in it about a month. Pete, given copper is at a three and a half year high this has been rocking and rolling. Weve talked about it in the month of december. Weve had 15 different days of unusual activity by the way, they have been right, the stock was 14 and now its actually over 19. This has been moving to the upside huge buying in march, march 21s, march 22s and theyre doing this as spreads the one that were highlighting is 10,000 of the february calls were bought. You can see these right here the 20s. This is part of a spread but they paid about 70 cents for this 10,000 times. There are spreads all over the place. 7500 in march, another 8500 in march. The other day we had 23,000 that were bought. This seems to be on a breakout going towards 20 in the very near future. Im already in this trade because of all the unusual activity weve had so ill be in this quite a while because ill probably keep rolling out enough. Thanks, guys. Coming up next, bitcoins big move lower as south korea says its considering closing some crypto currency exchanges well tell you more next on halftime. Coming up on power lunch i forgot my second job here. Houston rockets owner joins us for two hours. Well talk taxes, sports and the consumer and much, much more and the prepaid debate should you be running to prepay your property taxes before the new tax law kicks in in the big year how boxed is fighting back against amazonnd a costco. In the meantime Halftime Report is back right after this accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. daniel jacob for every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts to about 10 pounds of Carbon Dioxide every week. malo hutson growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. Then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. Who knew asphalt could help save the environment . I cannot believe how tale talented this guy is mr. Wonderful guitar he wants purple rain. Feed us your requests. Well see if we can hook you up. Weve got a tip jar too, its unbelievable. South korean government auns noing plans to implement new rules to regulate Digital Currency trading and shut down some exchanges even with a lot of regulatory uncertainties, a lot of hedge funds are diving into crypto currency don, great to have you with us. Its my pleasure to be here. How much interest is there and are these hedge funds buying the actual cryptocurrency, the futures, how are they doing this i think its all of the above. Right now there are 150 hedge funds focused on Block Chain Technology or cryptocurrency i think the number will increase two or three times in 2018 youve got 3 billion currently invested in hedge funds. Its just a very small percent over the hedge fund industry, which is 3 trillion. But theyre looking at the currency and the Service Providers to the industry and implementing a lot of different strategies to try to focus on inefficiencies and how to take advantage of those. You mentioned that there are 150 crypto hedge funds, but are there other hedge funds, macro hedge funds, for instance, that are looking to invest in crypto or are they afraid by doing that that pensions, for instance, wont be able to invest in them . I think its all of the above. If you look at the hedge fund industry, one of the main indexes just added a block chain hedge fund index, a crypto currency index but you have those that are looking at how to play cryptocurrency ctas represent 15 of the hedge fund industry. They tending to invest in futures markets. Now that thats an active futures market for bitcoin, at some point theyll start trading that currency and i think youll see a lot of future contracts on other currencies develop so i do think it will be part of how hedge funds allocate i do think right now most of the interest has been through retail investing, but the fact that the industry has gone up 1,000 , the overall size of the industry has increased, over time you will have institutions want to invest, especially when you see a decoupling of the correlation in a relative movement of a lot of the different securities and companies within the industry. Don, just a real quick question about atherium. Thats someone like korea could get their arms around because theres one guy in charge until he steps away, anyway. But decentralized markets like bitcoin, theres nobody to tag so how do you stop or who do you deal with if korea wants to shut down or make changes they have to deal with over 400 exchanges to try to make anything happen as far as these anonymous accounts, which is one of the things korea is going after now. Well, listen, these currencies are all being driven not by fundamentals, earnings, interest rates, theyre being driven by supply and demand. The whole concept about why bitcoin is going so high is theres supposedly a limited amount of bitcoin in the marketplace and the demand will just keep going up but you have a thousand cryptocurrencies out there and things like that are going to cause people to be looking at various other cryptocurrencies which could cause bitcoin to decline. A lot of people think its a big bubble. You were talking about the correlations and breakdown in correlations and thats what hedge funds do they look at the various correlations, how things are related or not related where does bitcoin fit into all of this . It doesnt seem to be correlated to anything. Well, listen, over the past year anything that had the word cryptocurrency or block chain in it has gone up even ice d tea has gone up. At some point youre going to see major differences in how various cryptocurrencies perform, Companies Perform after a selloff, the correlation of all these various ways of playing the market is going to break down. Thats why i think hedge funds can add a lot of value right now you dont need over the past year you havent needed a hedge fund, you can just buy the currency and done really well but i think thats all going to change going forward. The crypto hedge funds, are they paying 2 and 20. These would be one of the main ways i would differentiate between hedge funds. Don, thanks a lot for your time. My pleasure he cant stay off that thing. Thats kevin oleary playing his guitar as we head to break frigid temps going to ring in the new year futures now is next as mr. Wonderful plays us out chief vincent what are you, superheroes . Raphael just Four Brothers who hate bullies, and love this city. Leonardo woo michelangelo whoa haha. Leonardo gear up guys welcome back to the Halftime Report. Cold weather across the country sending nat gas prices surging higher by 7 hitting a threeweek high. Anthony, what is your outlook on nat gas especially if temperatures continue to dip seema, i think we can go higher from here were looking as we started the season prices at 320, supplies right in the middle of the fiveyear average and temperatures that were good. As you mentioned, it is cold now. Its going to continue that puts us down to 2. 60. Now were doing tripledigit draws in supply. I expect that to continue and that will lift prices going forward. Jim, what are the levels investors should be watching here well, if you look at the twoyear out chart, over the last year and a half, its obvious that the 2. 5 level is a level of significant support now, it got really cold, yes, but could it be that easy . Well, its a little more complicated thanthat we already consolidated. The cold snap came in, pushed higher, i agree with andrew. And thank you joined by David Stockman revealing his warning on bitcoin, plus why commodities are being picked over stocks in the new year the Halftime Report is back after this short break see thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade hey. Pass please. Im here to fix the elevator. Nothings wrong with the elevator. Right. But you want to fix it. Right. So who sent you . New guy. What new guy . Watson. My analysis of sensor and Maintenance Data indicates elevator 3 will malfunction in 2 days. There you go. You still need a pass. Investors get a gift this shopping season. Surging 13 in two months. Courtney reagan has the outlook for 2018 2017 was a rough year for retail with a number of retail bankruptcy topping 2008 highs, thousands of store closure, and falling sales, the norm for many with the Holiday Season showing signs of life, 2018 may not be worse but it will be different mall m a no one thinking retail will entirely disappear in the age of amazon, only the strongest survive meaning malls may find strength through consolidation. Amazon buys another retailer buying whole foods, stock went up to cover the costs of the deal the full extent of the takeover isnt seen yet, seeing the benefit, it could target one in consumers. And the youngest member of the Kardashian Jenner family, has a following that established cosmetic companies could only dream of cosmetics are the rage watch for es stay lauder or loreal to clamor for kylie before the collaboration gets too high. Retail picks . Top for 2018 a heck of a run back up to 60 inflection point, turn in sales. A lot of people incorrectly identified slowing mall traffic, corollating why this franchise was seeing a lower stock price thats incorrect, i think. 18 sets up nicely and along with ross stores and ulta will be the retail space, tax beneficiaries. Hudsons activist value of real estate more than twice the assets have assets in europe to get rid of i think this one will have rationalization. Stock should move higher. And we didnt discuss ahead of time. 2,800 stores in the u. S. 90 . Tax benefit. Big time, and through the Bath Body Works side with canaboys coming into that. Who likes the mango coconut. I love it i like best buy, because the turnaround is completed and absolutely growth is on the way. Thats what i like about what the ceo has done there look at earnings and Revenue Growth everything working in their direction. And minnesota based. And rockin like all the minnesota say negative things about ge. Sold my last of it on the tax lost this is a 13 stock trading at 17. Make 1 if lucky. Talking retail . I was talking about were all looking what happens when final trades are next. Wcata retail then it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Mary had a little lamb whose fleece was white as snow. But after an electrical fire from faulty wiring, marys vintage clothing and designer shoe collection were ruined. Luckily, the Geico Insurance agency had recently helped mary with renters insurance, and she got a totally fab replacement wardrobe at bloomingdales. Mary was inspired to start her own fashion line, exclusively for little lambs. Visit geico. Com and see how affordable renters insurance can be. Visit geico. Com whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley [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. Welcome back to Halftime Report. Im josh lipton. Breaking news on softbank, that theyve succeeded in its bid to buy a big stake in uber. This is according to dow jones, which says softbank will limit the stake it acquires to 15 , valuing uber at 48 billion. That, of course, a big discount to ubers most recent valuation, which was around 68 billion disnow triggers the softbank investment to move forward weve reached out to softbank and uber for comment and will get you that when we have them. Got it. Kevin oleary . I love it takes advantage of the tax plan. And mike socrosoft, got t. A duncan, above 70. Our thanks to mr. Wonderful insights and guitar playing. Thats it for Halftime Report. Power lunch begins right now and melissa, see you in a couple minutes welcome, everybody im Tyler Mathisen and here is what is on the menu. The tax timeline what exactly happens to your money and big business in 2018 we will break down which tax breaks stay. Which ones go, and what it means to you and your portfolio. We will dig deeper on property taxpalooza as well plus, brewing up profits from the tax bill well find out why president trumps new tax law is a good thing for craft beermakers the ceo of brooklyn brewery is live instudio and hope he brings some of his produce