Money. Well go right to the boards today and show you a sea of red. Dow is down 600 points s p 500 down about 3 . Nasdaq, technology has been, as you know, a bright spot of late but thats selling off harder today. Nasdaq down about 300 points all right rob, good to see you, beard and all. Here we are in different place than we were on march 20th when you spoke about the pessimism being palpable in the market that we were in panic mode, as you said almost speaking that things needed to turn in a more positive way nonetheless, josh brown, ill come to you. The point i was going to make is there was a point in time where pessimism was palpable now were at a different place we have come a long way. The second day into this week well have our back to back down days if this holds today how should we be thinking about stocks here . Im glad you cut to me. Robs beard looks like it sold some kids fake id in an alley somewhere. Lets talk about that palpable sense of optimism. People that changed their minds about what to expect based on daytoday market move, its very common. I do that too. The last quote i see on the dow up 500 or down 500, i may say its not so bad. Day like today you feel it will go on longer where ive been in the last couple of weeks, all of the trades ive talked about in individual stocks have been sales. Not because i expect worse calamity i think its going to be really hard im starting to come around to this l shaped idea i hate that i am i continue to look at the banks. Im not in this camp that says well zoom back to new highs look what they are doing to the winners today. They came from big cap tech today. You knew it was a matter of time thats indicative of us being stuck in place i think its okay. People shouldnt get overly excited in one direction or the other based on what they see its an interesting point that you make. Ill go back to rob who i believe can hear me now. Rob, the point we were making off the top are the comments you made just before a few days before we hit the low, in fact pessimism was palpable there was a panic mode those were the words that you used josh just now was talking l shape recovery does that mess with how youre seeing the markets today people are looking to people like you today and in these days for advice what do you tell them today. Back then i think emotion got way too negative and we stepped in now was the time to do some things rebalancing being one. Repositioning into quality being another but maintaining and increasing exposure. I think we have gotten to a point where markets are discounting an awful lot of news its been more on hope than fundamentals Economic Data and profit data while theyre not relevant in the short run, i think that investors are starting to look beyond and in looking beyond, i think we need to see and verify the effectiveness of policy. The impact of the lockdown which is probably the most significant thing. The progression in the diagnostics, therapeutics and vaccine. News has been incrementally positive as much progress as we made, i think markets are ahead of themselves we are still taking a paused approach to see if we can get some verification of that good news that said, its tough to bet against this market. There could be a farm logical breakthrough it could be an extreme policy. I think we need to pivot from this phase of desperation to hope but also being realistic about whats likely to happen. I would say were cautiously optimistic, not negative but positioning clients in way we can participate in some of that up side without exposing ourselves so much to the downside steph, this idea of hope. Everybody is hoping the georgia reopen goes well everybody hopes theres not a situation where you have to reclose things down. Im wondering how much you think the market will be watching what happens in georgia closely and by the way, before we came on the air, citigroup is out with an opt miimistic note and some l say its not rooted in reality i get it but its worth debating citigroup saying we believe 60 of working age u. S. Population could be tested by end of april. 95 95 by the end of may. 90 couldreturn to jobs as earl as midmay i get it that some will say, what the heck are they talk about . That doesnt seem like what reality is there is a counter reality like this steph, what would you say . Were all going to be watching georgia, for sure, day by day lets just address the elephant in the room first on oil that is concerning some of it yesterday was technical. We all know its too much out there with very little demand. What i get nervous about, scott, somewhat are the implications for some of the second and third tier players and do thigh haey o file bankruptcy. If a chevron of this world, which is the best company out there, in my opinion with a great Balance Sheet and diversified assets, if they can only be Free Cash Flow positive at 45 oil, what does it mean if were at 15 to 20 to 25 for some of the other companies chevron will just cut capex. Thats fine. They will be a survivor. Thats something im keeping a close eye on a lot of the Industrial Companies have Energy ExposureEmerson Electric reported a pretty decent number but they are expecting 20 to 30 oil for this year. My eyes are really on oil and the implications in terms of the markets as a whole, yesterday and today i dont feel good but were just giving back a little bit more than what we gained last week. Remember last week we were up 3 as despite the horrific Economic Data we had bad data today too. I think at this point we know may will be bad. If georgia goes well and you can get more openings out there, thats very key. You almost have to throw away Economic Data. You have to throw away earnings for the time being and focus on tests, focus on cure, focus on the virus numbers. Are they increasing or decreasing this will driver volatility in the market as well as the market as a whole you sure, jim, wouldnt want to be overly negative if georgia goes well and its a blue print of sorts for other states in this country that have very large cities within them such as atlanta. If reality trends anywhere close to what the commentary of this note suggests, its awfully difficult to be overly negative. Thats one side of the argument. Thats not my case thats one side of the argument. The other side of the argument is that georgigeorgias opening soon cases are still going up and the citi note is from an alternate univer universe just to pluck the low hanging fruit first. I dont see how you get to 60 testing by tend of this month. Its unfathomable. Ill push that aside to the georgia question, its going to take a couple of weeks to know if its working well i hope it does work well the point of not being too negative is well taken by me ive been raising cash the last couple of weeks. Raised a bit more today. Now i want to stop i still believe that the wait of bad news on fundamentals and profits outweighs for the time being the good news. Youll still have good days like last friday. Youll still have some therapeutic advances and announcements whether its georgia or boeing or Something Else of the economy slowly picking up steam im sticking with my belief that we had a market that came back in a v that v is disconnected from the economic recovery which is more likely to be a u the reason it came back in the v is because those big cap, marquee, in the Lights Technology names are the ones that led us back theres a lot of underlying weakness within the market and joshs point is well taken today that they finally have come for those stocks the amazons which are down 3 and some of the other names. Youll have a much broader issue in the stock market. Thats one of the negatives that start to take you in a downwards draft. Maybe not to the lows. If all of a sudden you lose the stability in some of those jobs where the money has flowed into. Josh, before you jump in, let me Say Something here. Nasdaq 100 is flat on the year thats implying these large cap tech names are as good today as they were in terms of Business Prospects at the beginning of the year that really doesnt make sense with everything thats going on, Capital Expenditures will plumm plummet. If youre microsoft or google, how is google going to take in advertising revenue like they were at the beginning of the year when Small Businesses is closed the answer is they got big marquee tech got ahead of itself it needs to give a little bit back sglo josh jim, im sorry about that if you look at the experience of the median stock in the s p 500, it doesnt look anything like a v. It looks more like a check market and the bounce for most stocks that arent amazon, google and microsoft are pitiful. They look like european stocks than the nasdaq 100. Thats the point i was making im backing you up. We now have the top five stocks in the United States are pretty much as big as the rest of the world stock market take those names out i understand the index is what it is. The median stock still looks terrible they have had some pretty big bounces and thats because they have gone down, 60, 70 . I dont think thats anything like a v shape recovery in the market outside of maybe some xlk names and fang there hasnt been we almost have to stop looking at things in terms of haves and have notes its have more versus have nothing. The amazons and microsofts and apple have more. They dont have everything they have more than the have nothings have. Retailers that are hurt. We have to be careful to say these stocks, the microsofts and facebooks are up the wap thy thy are because they will be good no matter what. They will be okay. Certainly better than the others but not scotfree. Its interesting microsoft is about 5. 7 of the s p. 500 weight versus energy at 2. 7 thats exactly to your point these kinds of stock, the fangs and a lot of the Technology Stocks have held up well, as they should. A lot of them are secular growers. Even though there might be a lull in the action on enterprise this year. Maybe its cloud next year i think on technology you can make case to have an overweight rating on that in your portfolio. I want to have diversification and i want to have tech and growth i want to have some staples too where i can we lie on the d dividends as well. Maybe energy is not where i want to go but some high quality industrial names, some high quality discretionary names. I was buying a couple of weeks ago and it felt horrible am i buying today . No but i would love if i saw a pull back in both groups i would be nibbling, if im given the opportunity. Right here, its hard to be a big aggressive buyer i understand. Lets bring in Morgan Stanleys mike wilson. He joins us over the phone thanks be p. Risk assets now overbought. The chance for a correction has increased. I dont think anybody would be surprised to see that commentary from kmanybody at this point. What does a correction look like in your mind probably less than some are hoping for we put in 26. 50 as a good place to think about where it would stop thats at the s p level. What you all are talking about is probably more important its whats inside the market whats really going on i think the market is trading in line with what happens the stock lets us in i would include tech within that its a defensive gross area of software as you go into the recession it starts to die jegest that. Were seeing that a little bit these names that have been trashed, as stephanie says has bounced. They are not in bull markets by any stretch. Thats what the market is contemplating. We think this pull back, the leaders should under perform and the laggards should gown less. Today is a good example. Thats three days in a row its not a new trend yet i want to see more of that in the next up, some of these out of favor areas should start to participate more. Only if you believe that the economy is perhaps going to get restarted sooner than later. Why would some of these value names or the ones that have gone down a lot, small caps and otherwise, why would they have any sort of meaningful rebound if they are still grave concern about certain areas of the economy. Were trying to reopen in certain places georgia, weve nenmentioned already. You say political pressure from an Election Year could lead to faster reopening of the economy and thats bullish the flip side is what josh brown suggested earlier is you can reopen whatever you want or say youre going to do this, that or the other thing. That nothing is going to get better any time soon be it restaurants, hotel, travel, anything magnitude of that of course it has to start somewhere. It will be less bad in the third quarter, less in the Fourth Quarter and hopefully back to growth next year thats what the market is trying to digest. A restart is looking more likely in the short term thats bullish. This week its back to earnings and its going to be choppy. We put the flag in the ground back in march. Its never smooth you have to look forward the bar market that we have been in for a while ends with a recession. Thats how it works. It must be the beginning of a new bull market which is always messy at the beginning what happen ifs the recession lasts a lot longer than people think and is deeper than people expect isnt is case i presented to you a more realistic one this is not a garden variety recession. All recessions feel terrible. It doesnt mean it wont be deeper or scary. Our view right now is its not going to turn into a depression. Our view is the policy response has been enormous. Well have a 20 fiscal deficit and it will probably be larger than that. That will invoke a recovery next year were confident it will be a recovery next year does that mean it cant have a relapse at some point and cant have a double dip. No, it does not. Right now the base case is the Second Quarter will be the trough 2020 will be the trough year and 2020 will be better. The market is starting to discould want here we had a big rally were digesting that now were saying were buyers of this dip we think lit will be shallower i dont know you tell me. Our view right now says we shouldnt pull back much more than 26. 50 well see how that goes. Thats our call. Fair enough im glad you come here and make the case with conviction thats what its all about josh brown, how do you think about what mike wilson had to say . Ive been reading all your notes. I want to you about that march low being the low. Theres an old school of thought that says that was really the shock where every one agrees all of a sudden. It happened overnight in that case that were in a recession usually that process takes longer we saw extreme levels in the vix which should make it the low but we could be lower in the stock market with a lower vix too. The experience of 08, 09, is what i want to ask you about if you think about the pos postlehman, postaig in the fall, you got up to 70 you got much lower in the s p later on in march of 2009, but with a more muted vix. Another possibility is maybe we dont get another shock because we all though the situation were in but we could have much allow lower prices in the s p. What are your thoughts on that problem . Thanks for the comments i hope youre doing well i think what youre talking about is the classic momentum low. I think the market has changed let me explain what im talking about. We have seen a proliferation of passive strategy, systematic strategies, leveraged strategies and those strategies have become the marginal price center. We tend to make these scary sell offs what ive noticed is you get these momentum lows and they dont get retested what happens is the levered players tend to make the price low and the momentum low at the same time. March was a forced liquidation because it happened so suddenly and everybody was over geared that you had a forced liquid da liquidation and the credit market unravelled. Could i be wrong in of course. The reason i feel more confident is the way ive noticed how markets have traded in the last four, five, six years, the structure have changed and we could have retest. Its unlikely well have another forced liquidation given what the fed has done to the credit markets and supporting that and thats supporting equity risk premiums as well let me bring up this note too. The uso, what we witnessed in the etf as the uso portends bigger issues to come in other passive products, in other etfs. Thats just the first sign of more potential problems within the etf world which could weigh on the markets and maybe heavily down the road. Does anybody want to take a stab at that point of view of that being something we should put in the back of our minds. Maybe mike wilson you want to respond to that. You mentioned the change in Market Structure and how we have shifted to a much more passive environment since 08 and 09. Should we be more cognizant of that thing that happened today and yesterday with the uso and how it could translate into other etfs id like to jump in as well and get the others view. Generally, were talk about passive etfs, not levered structures a lot of etfs are not levered. I dont think etfs are bad per se what i would suggest is that because of the existence of these programs or strategies, once again, we tend to find price we tend to find the value more quickly and then the real money comes in and absorbs those prices quite quickly because there is value that appears. I think what were dealing with is we find the right price more quickly. I dont think it leads to a disorderly market. In fact, i would argue in the last six, seven years markets have handled volatility quite well i think the products help in that regard to some degree jim, you want thought on this the distinction matters the futures market is noot ft f the faint of heart the etfs are really bringing Retail Investors into the constituti institutional world. Theyre going to get picked off. The average retailer will get run over i dont think thats where a problem is going to lie. Its very understanding what the underlying is. I think you need to make that distinction. I dont agree with etfs being in there josh. The product doesnt work. It never has weve been looking at not only uso but a host of other etfs and etns that are worse that have structural flaws related to the way they get their exposure. Every one knows they will role because they write it in the rules so professional traders in chicago and elsewhere can learn a living off of trading the fades the products have to make which is money that directly comes away from the Retail Investor my question is what is the point of it. If youre sophisticated enough to trade oil, trade futures and if youre not, find Something Else to do with your time. I really dont think they should be approved anymore. Rob, i heard you at various times saying you couldnt hear anything can you hear me . I can hear you now. Thooes havihes having a run dialogue with america on the status of your audio and whats coming into your ear good address that this etf issue, is there anything to worry about . Yeah, i think there is. I think everybody is made some pretty good points on it depends on the asset class some assets dont lend themselves well to get exposures. Equities happen too. I think the etf of markets has been broadly a positive fee and tax efficiency standpoint. They are important tools, important arrows we need to pull out. I think the answer is it di pends but i would agree with josh in an asset like uso and how they get their exposure lends itself more to dislocation. I would say in fixed income markets as well when we saw the run on liquidsty in march, i think a lot of these etfs has investors go to sell thought enormous pressure to dump assets onto the markets sochl the ugly some of that shows its face a little more readily in times of dislocation. I think exaggerates a lot of the price movements that were seeing mike wilson, i got to let you go youre sticking your base care year end s p 3000, thats still where youre at. Bus ka bull case is the 22. 50 2500 would be the bear case. You still well and healthy well talk to you again soon thank, scott. Thats mike wilson joining us from morgan stanley. Stephanie, im going to come to you first because representative of what were seeing the market, amazon is down 3 . Youve been trimming some of your amazon. Tell us why. Its up 30 year to date. Its up 27 in a months time. Its no question they are a winner at stay at home they offer retail and cloud. These guys are notorious for spending and investing and when sales are strong, they juice up the investments. What im concerned about, quite frankly, is the risk reward isnt there and maybe the operating leverage isnt going to be what people expect they can turn on and turn off profitability any time they want my concern is having the stock run up this much and having them probably most likely investing very heavily to keep up with demand, i think there could be a disappoint when they report. Now youre 12 cash mr. 12 . I have to keep updating this by the day. I hope to see the numbers going down everybody out there, i hope im wrong. I hope the market rips and im at 88 invested and we rip if im right and we do gown, i heard mike at 26. 50, if we go down to 25. 50, ill put that to work and be very happy no moves, josh . No. I hope this sticks can we call him jimmy, the liquidator i think its taken opinion. As long as next week you call me the acquirer. You already have the pharma were not taking you off the pharma list. He sold the farm. Let me talk about a call id like to get to before we bring in another special guest walmart price target was raised to a new street high 145 bucks oppenheimer. Im trying to stay away from the more obvious calls, for example, an amazon getting its price target raised. We get it. Is it too obvious to say 145 seems reasonable its going to be one of the winners. It kind of checks the boxes but its trading at 26 times forward estimates. When i look at walmart not versus costco because i feel like costco is a different animal i own it but i dont own target. Target is trading at 17 times and has a higher dividend yield. Thats the one i would lean too. Walmart i would hold on. I dont know if ill be in it for the long term. Yeah, i think its reasonable to say that there are going to be many chip winners and some companies have a focus on some mar markets that will heat up. I also think nvidia is not a cheap stock. I get the call here today i just dont think you want to get off of nvidaia not given their exposure to data and gaming i think you want to deal with the volatility not cheap, but thats for a reason lets bring in another special guest. Marc lasry hes back with us for a weekly check in marc, welcome back thank you pleasure to be back. How do you feel about the markets today compared to where you were a week ago . I think i mean i feel the same its a bit of what ive been saying which is that reality is going to set in. I think people were excited about the fact and they should be that the curve had flattened and it looks like the worse had been over. Now the reality is there the reality is you guys have been talking about it which is now what you have a new Company Announcing theyve got to do a restructuring. I think youll find it will take a lot longer than people think and because of that, theres going to be huge opportunity the opportunities that are developing day by day, you hear more reports of big name retailers that are having troubles that are thinking about a restructuring, Neiman Marcus, for example, is one. Does that interest you things like that they all interest us. I think part of it is were doing the work and were trying to figure out where to play in the capital structure. Part of it is that youve got to be a little bit safer so youll stay at the top of the capital structure. You need to wait to see what happens. Are people going to be coming back into Neiman Marcus and how long is it i think they come back i dont know how long this takes. What about what we have witnessed over the last 24 hours with oil and energy. How do you see that unfolding from the stand point of a distressed Credit Investor i think what youre seeing is with the price of oil going down mainly because theres no demand were all staying home youre going into the summer youre just going to be usin oil a lot less because of that, companies, their revenue is getting crushed. Youll have more an more of those Companies Filing for bankruptcy because they cant operate at oil being at 20. Rob, do you have something for marc lasry sure. In traditional high yield are you seeing continued opportunity in that asset class pare you investing along side the fed in most of the assets were investing a little. Were doing the new issues around 12 the high yield market, i think youll find theres going to be 15 default rate were focused on is all the different restructuring that will be coming up. You got a number of others, macys come in all these companies are able to raise capital. I think thats great all theyre doing is just biding their time they got the assets to be able to do that it seems to me until you have testing, its just going to take a lot longer yeah. Let me lastly ask you before i let you go, you were recently on call with adam silver. You are the owner of the milwaukee bucks. Can you, in terms of the path forward, getting to the other side, can you give us latest on the league and how youre thinking about when a possible restart could happen and how sure. I think for all of us, we all would love to restart the season in order to do that, i think it will be definitely fanless in the beginning. The question is, how to do it and the only way youll be able to do it is you need to have the testing. Youve got to beable to test the players. Youve got to be able to test every one who will be around the players and youve got to be able to do that and get the results pretty quickly within an hour or two. You need to do that every two or three days you need to have the capabilities and you need to have the test. I just dont know when we get there. The question is that 30 day, 60 days or 90 days. Clearly were not there yet we dont have testing at all i think hopefully its 60 days from now. That would be the goal hopefully were able to have the tests within the next 60 days. Do you know if the league did restart, what the structure of the rest of the season would be. What kinds of things are you all talking about . No, i think its to try to finish as many of the regular season as you can and to get into the playoffs. I been a big proponent of since we have the best record that the bucks won the championship nobody else has been doing that so far i think im the only one you would try and finish the regular season rather than just take the records as we stand today and go to a playoffs thats sort of the baseline. I think they have got to play a few games just to get people ready for the playoffs i dont know if you finish the whole season the question is do you do three game, five games, seven games but try to do Something Like that to get players back in shape. None of the players on your roster is everybody healthy everybody is healthy. Well check in with you one day next week. Here is whats happening at this hour North Carolina is under a stay at home order that expires next thursday. Government Officials Say more testing is still needed. House republican leader Kevin Mccarthy says a deal is done to extend stimulus funding for Small Businesses he thinks both parties will approve new bill the number two democrat in the house says he thinks the vote could happen as soon as thursday majority leader schumer said the vote could happen today. Britains house of commons showing it can meet while practicing social distancing only a few lawmakers were there in person. Others joined from home via a teleconference the Scripps National spelling bee were cancelled they were scheduled for late may and organizers say they see no way to reschedule the finals this year. You can get more on the coronavirus coverage at cnbc back to you. Lets go to kayla. She has breaking news on the ppp expansion package. Reporter multiple sources are providing the details of the what this final deal has been reached on the plan to expand the Small Business loan Program Looks Like according to a senior gop aide and a second source familiar, it includes 250 billion in a straight expansion of the exi existing program then an additional 60 billion that will go to small banks. 30 billion to banks with between 10 and 50 in sates and 30 billion for banks with less than 10 billion dollar in assets theres 60 billion in Disaster Relief loans theres 75 billion for hospitals and 25 billion dollar is going to go to testing and 11 billion dollar of that piece will go directly to the states the remainder will go toward agencies and other outlets that are working on developing these tests. The other question is when will congress be voting on this i spoke to an aide who said its unclear whether the snaenate wil be able to take this up at its 4 00 p. M. Session. They need time to go through the language to make sure everybody is on board because it would need to pass unanimously well bring any updates as we have them. Thank you the Investment Committee are ready to answer your question, next go to cnpc. Com halftime. You can tweet us or listen to us live on the go on the cnbc app were back right after this. [horns honking] birthdays arent cancelled. Hope isnt quarantined. First words arent delayed. Caring isnt postponed. Courage isnt on hold. And love hasnt stopped. U. S. Bank thanks you for keeping all of our spirits strong. Weve donated millions to those in need and are always here for our customers and employees. Weve donated millions to those in need i know that every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. Yeah, everything is runningis smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Welcome back lets answer socme of your questions. Do you think broadcom is good. Im thinking of long Term Investment in it i like it i own it do you believe that 5 is covered . I do i think they have flexibility in their structure that they can cut if they needed too you have tail winds from cloud, tailco offset by mobile if you really are in it for the long term, those will recover. Youll be glad that you picked it up. What is the impact of slack in this environment today . Will it be able to grow after covid19 i think hes asking what is the impact of this environment on slack and is this the best things will get while were all trapped at home and working remotely i think no one of the things we learn seconddegree that once adoption begins then they can upgrade a will the of people to premium version. These things get sticky. They become part of the lexicon. Slack converts about 15 of its free users over to the paid side i think the stock is here to say. Im long im not going anywhere can i get an opinion on viacom cbs yes you can. Please stick with it. This has gone through an awful price concern such that you might think theres an issue there really isnt it raised debt 2. 5 billion dollar at a 3 yield clearly the bond market is veryo come back online cbs sports is the crown jewel. We know sports will come back. We just dont know when. Rob, to you from sanjay you add vise the individual investor on how to navigate the current markets. Active versus passive and s p 500s versus megacaps we use both in client portfolios but we had a bias toward active cently theres haves and have notes you get both biassing toward quality and dividends is where we been focused. Its kind of new defensives in quality growth communication services, the health care, the technology but have a little optionalty in your portfolio. At this point in the cycle, those would be something i would own at those levels jim is talking about. 2500 where id be a buyer. Id be a seller of those at 3,000 on the s p we use both but right now im more actively minded as it relates to the s p, that is a mega cap index. Okay. Thank you. Steph, back to you should i wait for a significant pull back to buy lam we expect deram to recover in the second half of the year. Maybe next year. I do think its up 33 in a month. Even though its down 14 on a year you can get this on a bupull ba. Sgro josh, are you still positive on on it . I love that in january on a technical basis i dont really know im not an expert on the entirety of the company but i could tell you they have a lot working against them in this environment. It is a small cap. So strike one. Strike two it is in the material sector one of the worst performing in the market an Global Business and its Office Supplies like almost every negative you could think of for the coronavirus reality is stacked up. That being said, high quality company, been around forever pays a dividend yield. This is about what kind of investor you are if you are someone to buy something and make money on in it a week or two, i dont know that this is for you maybe its worth more research on. The boise legend, at the boise legend, what Health Care Stock have we not discussed enough that could benefit from a postcorona world . Yeah. So you know, flying under the radar screen, a big cap pharma is pfizer. Theyre not actively really working on a Coronavirus Vaccine but they do have a lot of vaccine capabilities which mean they can help out but even outside of that postcoronavirus you have still got an aging demographic that needs pharmaceuticals. Pfizer is great play there its got a great dividend yield. Rob from tim in utah, for someone nearing retirement, do preferred shares make sense in this environment any to avoid so preferreds are more credit sensitive. In fixed income. They exhibit strong rebound characteristic we added to preferreds on march 31st when the liquidity crisis at the worst and they were hammered theyre up 26 since but you can own the high quality more liquid often in the high quality banks right now and we continue to own those and i think you can, too. Bonus, stephanie link, one extra from xray l. A. Interested to hear your thoughts on ge today. Its been tough right . Its really because of the macro. Its aerospace, energy its a Balance Sheet thats levered. That is turnaround story i have said it for a long time it is a two to threeyear turnaround story tons of costs that they take out and to improve the business and the culture. Last quarter they beat on Free Cash Flow and i think they continue to do well seeing a recovery and stabilization in the economy but very tied to the economy so it is going to fluctuate. You have to have patience. All right good stuff thanks for all the questions coming up, some stephanie links stocks out with earnings today. Well do all of that straight ahead. Dow down 579 americas oldest lighthouse has weathered many storms. Seeing the break in the clouds before anyone else. Together, well weather this storm. Ur breaking News Coverage continues tonight on cnbc with the special report markets in turmoil. Ill seal you then, 7 00 p. M. Eastern time all right. Stephanie link, before final trades, a couple thoughts if you could on two stocks you own, cocacola and vf corp. What do you think . Coke i was pleasantly surprised of flat volumes. I thought that they would have negative in terms of that number so that was okay Gross Margins better than expected by 80 basis points. So theyre doing the things that they can do in their control theres nothing that they can do about the april volumes being down 25 it is temporary in my view vf corp. , i thought the preannouncement on the ebit number better than expected. Theyre doing what they have to do to survive in this environment. The Balance Sheet is 4 billions in terms of liquidity and holding on to both of these. Good stuff. Lets do final trades. Jim, im going to begin with you first. By the way, the liquidator, do you know who that is joe. Im so embarrassed. I think of him as the suit now i dont think about the past