About 800 points on the dow. Youre still looking at a loss of greater than 5 a huge story today the crude oil crush as the saudis initiate a price war. We should think about it in terms of the speed and velocity of decline the s p the is down about 17 . We hear about the news with are the russians and saudi arabia. The problem i have is you have a very healthy patient being the market now it appears to be in intensive care we dont seem to have any doctors around to treat them in intense iive care negative rates are present in the uk, first time ever. We are battling here in the United States with the potential for negative rates the missing link in all of this which is what we saw in 2008 was a global coordinated effort. There does not seem to be a globally coordinating effort to address that i think thats what the market is riding against. Liz young, what do you see . Lets start with the globally coordinated effort i think theres been an effort from Central Banks thats been reasonably coordinated i think we can stop using the word containment in the u. S. Its uncontained now the oil market is really kicking the horse while its down i do expect this oil thing to slowly figure itself out this is a situation where no matter how helpful it is to the consumer that we have lower oil prices, its exposing vulnerabilities in the credit market that could send the market further and further into tail spin. I lead into you with a tweet of fear can take the market lower but expect quick recovery when Health Threat recedes especially in the u. S. Are markets over doing it . I dont have any special expertise of what mr. Blankfine said i hope he ends up being right. I think that point that things had been on a very favorable trajecto trajectory, we have one quarter, maybe two quarters of quite frankly very, very negative activity with less travel, less meetings people not being hired were all now expecting that but on the other side do things get back to that trajectory the fed is eeasing. Weve not had energy blow ups. Its possible youll see people default on junk bonds. Theres two reasons. Why. Number one is the speed. Joe mentioned velocity its 18 days from an all time record high to a 52week low the other thing is today, weve only had 32 days since 1950s where the s p has fallen more than 5 . This looks like it will be the 33rd depending on where we close. It has happened before its not unpres debcedentunprec. Doesnt happen all time. Theres a reason people are over reacting it scary then you throw in the Health Issues were not worried about a trade war like we were in 2018 people are worrying about their survival they will bring home germs to their family those things are being entangled. The market may well have been down today on more concerns over the virus. Thats obviously fair to suggest. It was just this past friday when virtue financial founder cut his teeth trading in the oil pits told us where he thought oil was going. Oil has to test that 35 area again. Noninflation adjusted youre talking about the 28 to 32 a barrel range youll see a lot of bankrupties and replacement and restructuring of the domestic oil market of course, who knew it was going to get to those levels so quickly. Mark fisher had the first indication that oil was heading for a historic 25 drop. Hes hoping to tell us where crude may go next. Its good to talk to you again you had your finger on this yesterday morning. We spoke so many times about where this was all going how bad will it get from here . In terms of the Energy Market yes how much pain is there left to go i agree with liz. I think this is a short term situation. I think that this is something that the markets can fix this isnt like the virus panic thats going on. Monetary policy cant fix it i think neither russia nor saudi arabia nor the middle east can tolerate prices at these levels. I wouldnt be surprised if two months from now these prices seem ridiculous. You say eventually. Thats an open ended word. How long do you think it can last couple months well be looking at the price of oil, if not lower, for a couple more months i think so. Thats an opportunity. We trade i think nobody wants this russia doesnt want this even clean energy doesnt want this this prices everything too low i think in todays marketplace where psychology being the way it is, people sell first and figure out later on. Late yesterday when the market opened up lower, now were back to only 6. 5 lower natural gas, which i thought would get decemb decimated is uh day. Its a 7 bounce already from the low last night i think 27, i mean, i dont think well take out that low this week. Anything can happen. I think this is an overreaction to marketplace from russia and saudi arabia and what they did i wouldnt be surprised if two months from now were back in the 40s. Im a trader. Does that mean youre buying youre sensing opportunity here . In the last ten minutes, im not sure where we stand. In other wor in order for a market to gain itselves feet, theres got to be liquidity and the spriprice movements have to stop you saw panic last night the other market set in a bit. You can see the ranges its crazy ranges. It doesnt give anybody confidence to get back into a marketplace. Youre seeing just the opposite. Theres no liquidity theres no liquidity when you can get out of a position you never really want to when you cant, its when you should get out of position thats the way it is until the market calms down, thats the first sign of a real bottom what do you tell somebody who is looking at the board today and see these Marquee Energy names all getting crushed and they are looking at the fact youve got big yields that they are paying out that they start to look attractive what would you tell somebody who is thinking about buying these names or some of the others that pay a big dividend buy what you know buy what you need. In terms of energies, bp is still the most widely owned stock in the uk. With the yield the way it is, should you buy a full position today . No if im an investor, am i better off buying big innovative stocks that will survive this of course. Again, trading you can turn on a dime bp, exxon, the big names that can survive prolonged period of if it comes to that of lower energy prices, yes i kind of think if im an investor, im staying away from Energy Futures to begin with i would start to nibble at those big cap names. You mentioned something about natural gas. Its higher on the day if i look at the natural gas drillers whether its eqt or gas, they are up double digits on the day what were witnessing right now, there will be less drilling in the part of u. S. Produces. Do you think the fact there will beless drilling will lead to a work off of over supplied Natural Gas Market some of them believe that some believe that story. I dont really know. You can have less drill ng tingn the United States. Some degree, whats bearish for crude oil is bullish for natural gas. Is there more alpha generation than some of the energy of the oil names . Thats what you guys do for a living, not me thats way outside my level of expertise. I do think in terms of that gas, its not even moving today, which is relatively good crude oil for having a crazy rains is now hasnt really moved dramatically the way it was before in order for markets to stabilize, you need liquidity so people know they can get out when they know they can get out, then they dont. Thats whats missing from the stock market how much pain can russia take how much pain can russia tame im not an Eastern European expert but i cant believe this is like dilemma that this is good for anybody i think i dont think this is good for russia, eastern europe, the middle east. I dont think its good for nobody how long does everybody want to be, inflict pain on themselves and others, i cant see you going more than a couple months. Maybe im wrong. Ive been wrong before a couple of months sound like an eternity to us when were watching gyrations in the market in the magnitude and the speed in which all of this is happening. You wouldnt expect something aftera couple of days when you see the drop that weve seen in kruds oil th crude oil that it puts enormous pressure than that im not really sure i just think that you really got i think really energy has been such i dont want to say the word on tv but i really think that you got product prices i do think for sure that the crack markets which are the difference between heating oil and gasoline versus crude oil, if you can buy that out a year or two, thats going to be a big winner these levels will explode, i think. Maybe its a longer plaids out thing where they are willing to go to the limit to try to inflict as much damage as they can. Again, think about what happens. If thats really their agenda and opec says were willing to do but russia doesnt want the play ball, theres a lot of measures that we can do. In a crazy world, we can do anything we can iran their oil. I think thats anything can happen and i could be dead wrong. I think because of these psychology of the market and everything being so skiddish because everything thats gone on and the coronavirus and the election and croude oil will be above 40. They should have gone broke already. This will exacerbate that situation. You need the markets to stop having the ranges that are crazy and you need to have the perception of depth in the markets. Thats what you need in order to stable ieilize any market you had to get out when you could get out, you didnt want to get out you keep hinting there seems to be a liquidity problem in the overall market itself. Can you kind of expand upon that look at the depth level of whats in the s p market compared to what it was. Theres no volume, theres no depth. You get these crazy ranges that doesnt give a warm and fuzzy feel to buy something. I think youll see that in the emergency marke Energy Markets quickly its 7 off the low in crude oil already. Now youre going to have refiners come in do i think two months from now well be back in the 40s yes. Could i be wrong yes. I know a lot of big money is leaning on you today for your expertise. We appreciate you spending time with us. Well talk to you soon take care thats mark fisher joining us he mentions a goldman note here is the note its getting a lot of talk and play around the street the revenge of the new oil order is the title jeffrey curry is one of its authors. He will be with us tomorrow. Were looking forward very much to that interview and well do it tomorrow because we know the story is not going to go away any time soon. By the way, bob diamond is the Founding Partner of Atlas Merchant Capital he will be with us tomorrow add well on all the things hes thinking about in the markets. I wanted to get you up to date on that. The fall out from the plunge in crude is being felt in the corporate debt market especially energy high yield. It has some worrying about waves of bankruptcy since energy is around 12 of the entire high yield market eric with new Fleet Management ta joins us now good to talk to you. How concerned are you about whats going to take place in high yield and these potential bankruptcies that we could see . I think its important to note that before this weekend happened when oil was at 50 and gas was at 2, a lot of the high yield Energy Market wads strs struggling the High Yield Energy was over 10 . Its not a 20 event. In 2021 you could see significant amounts of bankruptcie bankruptcies its really delaying its more of timing issue of when the companies file. You say that could be pushed out to 2021. You have the likelihood of moodys. Im wonder whing what the thresholds is in the price of oil and how it relates to how they are viewing their downgrades there will be some lag effect. Theyve been cutting this whole time recently we have seen the natural gas all get cut on the lower price deck applied. Less oil wells will help the picture. Their balance stheheets are in c poor shape, it might be too little too late. Thats one positive thing from the weekends events do you have your own sort of target, your own idea in your mind your gut telling you where you think crude will go. We try to view oil in range we dont try to set a price. I try to ere on the conservative side were trying to generate income, avoid losses the volatility of the oil prices makes forecasting financials so difficult that if you add any bit of leverage on, it really isnt that attractive an investment in my perspective that risk reward ratio just isnt terribly attractive for us i try to keep that in mind rather than trying to target oil prices is there something in energy debt that is attractive to you today . Our largest domestic position is in in the sheneer complex in that investment aisle really lending against the contract structure and the counter parties rather than the price of lng to some extent thats still important that would be one area where youre not really trying to bet on maybe oil prices so much. Im trying to think of how this all goes down if you say its a 2021 event and a 2020, can you take me through a quick scenario to how this plays out to the worst way you think it might into next year where you might see a wave of bankruptcies and restructurings. What happens from here oil prices if they stay at these levels, youll have hedges that will benefit you early on banks will tighten up the revolver lines and in 2021, the hedges roll off. The markets are completely dead. Those have performed so poorly that i dont think theres really a market for secured debt to try to prime the unsecured bonds or help refinance any upcoming maturities. Try to focus on balance street preservation stay alive until your peers fall to the wayside and have their production fall off and hopefully that rebalances the market well leave it in as we discuss where all this goes from here we appreciate your time. Thanks so much thank you a lot can happen between now and then a lot can the problem will is the you will not have credit lines that will be extended and you will have credit lines that will be pulled back a little bit hedging, looking forward is going to be a problem because i dont think you can have a real expectation right now that pricing for oil to what mark was saying before will go well north of 40 it leads to a place that we have talked about now for the better part of the last year and the reality of it is here. That will be bankrupt sis and consolidation. What about some of these names were looking at on this list of our screen right now for example, that are down 30 plus percent a name like marked looked at are you starting to get to the point where you think some of these stocks are too good to pass up if youre a longer Term Investor i dont know that id be there yet even with a dif dent thats out of this world. If it happens that quickly, it might scare the credit markets and then you end up with a market induced type recession. You have to have ta global coordination to stabilize the emergen Energy Market and lift it. There was a landmark study that done at the end of 2016 that looked at the Oil Price Plunge that had taken place in 15 and 16 they wanted to get a sense of what does this do to the economy . Were lower prices good or bad. It turns out the whole thing wawa a wash 40 of america spent 25 of their moonnthly budget on energy it was a net benefit for almost half of american households which is very powerful because the money they didnt give to the Utility Company or to exxon mobile at the pump, they spent at applebees or whatever. What about the idea that some of these stocks are attractive here is my bigger point the earnings dont matter to the s p 500 this industry has shrank so much in the last five years, it doesnt matter the multiplier effect. Probably another two times that. People that cater to those employees in the industry. I think it will have a bigger Economic Impact if it stays depressed. As far as impact on the stock market, im not convinced its that important i dont think it matters that much in terms of whether or not the s p makes its personings the services economy, lower gasoline prices are a net positive. Steve has his finger on how the fed may be thinking about this what about the banks their exposure is limited. Were talking about single Percentage Points all across the board. They have been very cautious about energy because of bias on the downside we had half a dozen significant lenders in the ratings portfolio. It didnt happen the question is are we going to see private equity double down again. Recap those credit lines you were talking about before and enable these companies to continue or are they going the go in the default. I would think theyre going to look really hard especially given some of these valuations you can dictate terms now. I dont think the banks have huge exposure. Theres something out there whose made too many energy loans. I think they are so chase sint they would rather be cautious about it whats important is you maybe differ from some of the opinions shared they compete with the banks. Its just a competition for assets today, there are mid size lend erts w ers but they try and stay away from the production side they try to focus on services. The rating agencies havent caught up with this yet. That uncertainty is going to remain in the market if you have the clarity to say no, theres value here, i think you can do a lot of very good buying what about the idea that the ratings agencies who were deemed to be asleep at the wheel in the crisis maybe more apt to do downgrades faster if theres sort of stress its physically impossible for them to react quickly when you have this many obligors who had their fundamentals change in two weeks. What do you do theres 4,000 corporates. Theyve all been downgraded. I need to interrupt you question because i need to tell you what im hearing is the oil problem is not necessarily the most of it theres a need for more liquidity out there in the market especially when it comes to international and the need for dollar funding and Different International markets. Treasury market has not been trading well Federal Reserve stepped in this morning with limited liquidity provision. They provided an additional 50 billion of overnight an additional 25 billion of term which is twoweek money. He said its a baby step with only short term changes. Much more will need to be forthcoming and very soon. He expects extraordinary actions from the Federal Reserve on funding and liquidity side its just theres the quote on the screen right there it is simply impossible to have these kind of movements in asset crisis and not to have dislocations in various places dmoen dont know the extent to which they have hit hedge funds. The key problem at the moment that im hearing is the unwillingness of banks to provide cash lick kquidity to te market and people are calling for the fed to make a variety of changes to the regulatory environment, to free up the banks to provide the cash that is out there whether or not thats forthcoming, i dont know. I havesome calls into the fed right now. How could it be forthcoming the fed could act now theres certain things it could do in terms loafering discount window rates, in terms of providing liquidity in different ways whether or not that causes more concern out there, whether or not its risen to the level they have to do this, i dont want to be alarmist about it theres a feedback into the sell off that comes from the lack of provision of liquidity that could make better and as one person described it, procyclical regulatory policies it pushes the banks in the way the market is moving rather han the opposite which is to have the banks be a break on the system i think it was you and maybe somebody else, the other day we were having this discussion about credit and the notion there were going to be credit events to some degree. You have to manage that carefully if youre the fed its like what point on the siren alarm does it start to go off . I know chris is really smart about this but let me make a distinction between the market getting to where things are priced correctly and having the liquidity to get there the Federal Reserve should not have any influence or try not to have any influence on the former it can be and play a role in latter as in the provision of liquidity to allow the market to price. In the absence of liquidity, price discovery is complicated and can be difficult the real issue here is theres a structural problem the fed faces certain banks. They are called primary dealers. Everybody else is out of the luck what you see is the liquidity is draining out of the repo market, which is the rest of the world and all of liquidity is trapped within the primary dealers the fed have been reluctant to change this. Now the call will be coming back from the st. Louis fed and from others its another thing they could reignite whee ny not just announce a standing rate. This is where money clears at. Its not about price. Its psychological. They have to focus on the volume of liquidity thats available and are certain banks standing back like wells wells is in the penalty box. They are not providing liquidity. Its a postcrisis mandated amount that requires banks to hold onto certain short term treasury and treasury like instruments in the event that it hits the fan the biggest fear is the pipes of the Financial System get clogged up its a fear they already were it sounds to me as through your new reporting there is greater level of concern about that by virtue of some of the vents. Some people in the market have greater level of concern that is perhaps obvious in the places you would normally look europe is place. Apparently the bank of japan discourages its own banks from borrowing from the fed and that is something that has to change and so, i think from the g7 meeting, the one thing we didnt get was a central bank joint statement. Perhaps that is something. I dont know if that what problems people are watching right now that that solves but it does solve problems that people are not talking about and dont see. The feds got to do most of this you know that. Has to leave the world and bring him down corporate issuance has been falling. Mortgage will have a record year this year. The banks are less liquid even with the fed cutting price volume and availability, to me, the propensity to lend is the key thing. The liquidity issue you talked about were very obvious in europe. The response, though, how careful does the Federal Reserve have to be in the response you push the market where you dont want to go is negative rates. Its always a difficult spot for regular larts and officials to preresponds to a problem and not make it appear as if things are worse. The danger is that the officials and the regulators wait until the moment they are forced to do it rather than preemptive. I think what the new york fed did this morning is good it provided liquidity to a market that didnt need it on the surface. There are other things that the fed could do you could think of five or six things right after the bat the fed could announce and reinstate in terms of not needing to reinvent the wheel because its done some of these things opening the discount window. These are things you would think it could do relatively easy. What collateral do they bring to the window. If they have negative yielding southern bonds are a collateral the feds want in exchange for a liquidity. They will take them they will im sure. Bank of england pay for it. Haircuts. By time you get the haircut the yield could be positive. Nobody saw this dislocation of whatever you want to call it in the oil market overnight. Its caused this greater anxiety in all of the markets. Every corporate you can think of thats affected by the panic today has been pulling on bank lines trying to expand them. They are dealing with falling revenues and managing expenses this is a very dangerous situation because there are literally dozens of major names that have been downgraded but we havent gotten the change yet. We appreciate you being here. Thank you. Thanks for your new reporting. Well stay on the case ill show you how europe closed. Significant losses in every major european market. You guys have that you want to show it. Were showing it to you in a second there are the losses im talking about. Whether its london, france, germany. 7, 8 is seemingly the norm across the board in europe lets get the headlines now with c contessa Governor Andrew Cuomo says another 37 people have tested positive for coronavirus it brings the number to 142. He also cautions about over reaction this is not ebola the panic is unwarranted we have dealt with worse viruses. The cdc is telling colleges and universities to consider asking students abroad to return home the cdc says cools should consider postponing or cancelling future International Travel programs. Target is limiting sells of disinfectant wipes that move mirrors similar measures by Supermarket Chain kroger and other retailers to rein in consumers who are stocking up on the products. In new york, the states making its own Hand Sanitizer which the governor says beats the come t competitors. Theres that thank you more sell off coverage is straight ahead well be back in two minutes dow is down 1600 points. 24,240 were back after this. I cowe can do theyour screening at her house. Hi. This is the man thats going to check your eyes grandma. Cognizant ai solutions are helping Healthcare Companies advance diagnostics and prevent blindness in patients with diabetes. Everything looks good. You have beautiful eyes. Were back covering this historic sell off on wall street stocks plunging 7 oil tanking 20 . Yields hitting new lows. Lets bring in some other new members of our investment committee. Its good to have everybody with us rich, what are you telling your client who is are probably calling you asking you a million questions today . This is a transitory event unlike 2008 which was a very systemic event our expectation is the markets will continue to decline as the worst fears of the virus will continue to emerge not until the case load increases and stabilizes will we see any stabilization in the market we havent been adding anything. We think its a great time to be patient because excellent values will emerge. Keep in mind that the virus occurred against the backdrop of strong pmis, excellent employment gain, very strong Banking System we had political uncertainties resolve. We had brexit, nafta, phase one. The backdrop is very favorable we have to get through this event. How much pain do you think is left in the stock market before we can start to build something . You have 165 in earnings in 2018 and 2019. If you assume flat in 2020 and put a 16 multiple on it, which is a worst case scenario, youre looking at 2600 as an extreme downside you can mark from there but our view is that before you had to equity, you have to look at credit spreads and find some stabilization in that widening of credit spread there are companies that will be selling at multiples of Free Cash Flow of 10 times. Its going to get exceptionally cheap. Theres a lot of parameters to monitor but were not there yet. Worst case may start looking Like Base Case you just dont know. Youve seen a lot of these things what do you think about the way were watching all this unfold engi think i mentioned about four weeks ago although its entirely imperfect is the post 9 11 environment that created cocooning it was followed by the corporate crisis that kind of extended the entire process here, this is a global phenomen phenomenon its not a systemic financial crisis but could engender a seizing up of credit markets you have a lot of kcovenant loans. You have energy loans that are going bad and some airline bonds that are strtrading in extraordinary discounts but priced at 70 no bid and was put out earlier this month for the 2025 Maturity Date youre seeing distress in the security markets that will continue to create a negative feedback i wouldnt be so bold as to call a bottom going back to the issue of quality, if you have a fixed income and you dont know whether or not the bond funds have levered loans that normal day takes 30 days to settle in a daily liquidity vehicle. Now theres all kinds of disruptio disruptions. We talked a lot about it but maybe now they are finding out relinquish said he wouldnich buyer here are you buying i think its a great question what we have to think of right now is were digesting a black swan that calls another black swan covid1 covid19, over the next two weeks, will be revealing to see if it gets worse i think weve had a structural shift here when the information changes, we change our mind. Were definitely not buyers of energy here. For clients that were doing dollar cost averaging, last week we started pulling forward the march cost to take advantage we wish we would have waited until this week. From a market stand point, we think the markets will recover in general and thats where i think when it comes to energy, you dont have to make it back the same way you lost it i think going forward, investors need to really understand whats happening and energy is a big deal down here in texas, energy is not wall street. Its main street its definitely going to affect a lot of company, a lot of industry, a lot of of communities. That really hasnt started to reflect itself into the real economy. The individual companies that are not publicly traded energy i shale industry. Knowing you are in houston, thinking of the good people down there in business and otherwise. Ron has a question for you. No. In addition to everything thats been said, we dont have yet may start to happen later in the day, the proper policy responses from anyone. Right . So the fed may come in and as jim bianco suggests, take rates to zero. We dont have, again, fiscal might be the wrong term. Defers tax payments and things like that. That policy mix has to be in place clearly articulated on all fronts whether its the fed, whether its the white house and congress, independent agencies of the government that handle the Health Response policy, you need a great deal more clarity around the responses before the market will start to feel any degree of confidence. If that happens, if we get a coordinated response saving the right places of the economy, we have been talking about positivity until this point because the labor market is strong, we have an Energy Market, we have a demand and supply side effect to affect the consumer and the labor market. If we have a policy response that supports those pieces of it maybe it takes some of the selling pressure off to a point where we are not as worried of accelerated and bankruptcy and financial conditions soften, too. I think its possible but we need it soon. I kept thinking as we have the conversations, joe, i keep thinking about the comment of mark fisher asking how long can this last . I dont know, two days couple hours given whats going on here . Two months two months well have a problem in oil well, i think oil at this level is a problem. May be great for gas prices and all that, but that just dismisses the other issues taking place within the marketplace. Spot on i think its unreasonable to expect this not to be a twomonth problem here domestically you are talking about if coronavirus. You look upon what the chinese economy and their societys experienced, working on the third month of experiencing right now. I think thats fair. Whats so important and i got a lot of questions on this, scott. We talked so much about buybacks and everyone asks me the market is down. Where are the buybacks the policies you talk about, what they do is ingender confidence in the marketplace and looking historically, the odd behavior is that most Companies Buy back the stock when they feel most confident about the environment. You will not have a company saying we have cash at hand. Do we sit here and hoard that cash and try to understand the environment better or go out an buy back the stock thats why what you talk about is so important to create confidence in the Corporate Community diamond bottoms an things like that, jamie bought jpmorgan whatever you think that move meant to the market it did mean something. It did. Listen theres a great chart from schwab that companies have been buying back the stock underperforming the rest of the market over the last year. One thing of energy, going back to 1986 and 2016, collapsed to 10. In 2016 oil at 26. 05. These things dont heal themselves right away. Forcing defaults in energy bonds it is not an overnight experience and not see oil double in a couple of days from now. Rich, so, you know, it sounds to me like youre still looking for a v bounce once were through dealing with a lot of this are you advising your clients that you think stocks are meaningfully higher by the end of the year . You are holding to good earnings numbers. 165 bucks i think you said. Yeah. So basically the market has to get through this cleansing process and we would expect to see values get much greater before well add to equities our clients are have a three dimensional approach with hedged investments so we have a lot of dry powder in that fixed income component and it just reemphasizes the importance of Asset Allocation that every client has to look at in these environments when we do add to the market, we are not adding to emerging markets, nonu. S. Equities, not adding to oil. We are going to focus on high Cash Flow Companies u. S. Centric. Rich, we appreciate you coming to the phone. One of americas toprated fans shl adviser. Thanks a lot. N, aur thanks to bryn, as well rolways a thank you. Final trades is straight ahead. You see . We see a billion more people breathing free. We see access to fresh food being the global norm, not the exception. We see homes staying cooler, without the planet getting warmer. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org sensei can gibeautiful. Etime income but support the leg when i started cobra kai, the lack of control over my business made me a little intense. But now i practice a different philosophy. Quickbooks helps me get paid, manage cash flow, and run payroll. And now im back on top. With koala kai. Hey more mercy. vo save over 40 hours a month with intuit quickbooks. The easy way to a happier business. Our selloff coverage continues tonight. Do not miss the special report markets in turmoil tonight at 7 00 eastern i want to remind you about our show tomorrow, as well Goldman Sachs jeffrey currie, his note a talker today and his perspective and bob diamond, former ceo of barclays and whats going on now. We look forward to that conversation with both of those gentlemen tomorrow leave us with something to think about. What i would think about, resist the urge to react to this today. Because this is a really extreme case i think we need more information. Its hard to imagine that we are going to get that much worse news out of the Energy Sector so i think some of this shakes out. We want to watch the market for the rest of the day and see what happens and resist the urge to overreact. Crude right now down just about 20 or so, joe. Completely mystified by the lack of communication today. You cannot treat this as just another ordinary day policymakers need to communicate and show theyre on top of this and need to be globally coordinated. Theyre tweeting. Is that not good you heard liesman with chris whalen maybe theres a larger effort to deal with the as we say, the pipes of the Financial System. Thats where the concern starts to bubble. Central bankers dont have a lot of room. None of them do. Fed included we need more policy. You have to watch european bond market. It was not trading in healthy condition this morning. Theres the realtime look at crude down just about 20 . Josh, what you will be thinking about. 20 seconds on the rest of the day. As i mentioned friday, more apt today, never pull your goalie the fixed income portion of the portfolio keeping you in a decent portion right now, the bah last, the dry powder that youre able to use to deploy if and when you do a rebalance and never changes. Never go all offense and the lesson is relearned by investors of this generation. Liz, thank you for being here liz young. Dow down 1600, greater than 6 the exchange starts now. Thank you, scott welcome to the exchange, everybody. Im kelly evans. Turmoil on wall street today the major averages down more than 5 and the dow down more than 2,000 points this morning, still on pace for the worst day since 2008 now market wide Circuit Breakers triggered four minutes into the session this morning after the s p fell 7 . Every sector except Consumer Staples down at least 10 from the recent highs the same goes for all but two of the 30 dow stocks. Oil, the big driver of todays