Stocks are working on backtoback negative sessions on fresh concerns about the virus weighing on sentiment. Josh, i feel like the great debate its the reopen trade versus the reality of the virus trade. You have the country wants to get back to business and normal versus the fact that the virus is spiking in some very big and important states. Yeah. I think thats exactly the right way to explain it, scott i think theres a large group of stocks, things like airlines, retailers, we talk about this all the time they seem to be having the red light green light days and then theres the large market capitalization names that seems to be unfazed i think whats interesting now though its not just f. A. N. G. Stocks theres a wider group of stocks that seem to want to go up, almost no matter whats happening with that resurgent story. I think thats what most traders and what most active Market Participants are focused on. Look at name like spotify, this stock at an alltime high. Up 19 overthe last two days which is an incredible move. Not a tiny market cap. Paypal, new record high. Square looks great too technically. These there is so much online commerce and activity happen right now that theyre actually saying theres a shortage of coins in the economy thats how little physical dollars are changing hands and then you have got the whole segment in the market involved in payments. Its not even taking a breath, it seems to trade higher every day. Im looking at slack clawing its way back up. Zoom is back to reality. So it really feels like theres two different stock markets and just overall, you know, were somewhere between down 4 to down 10 in the s p. I know a lot of people think this is a really abnormal moment but going back to 1950, we took a look what percentage of the time does the s p spend not at a high, but off lessthan 10 and its 56 of the time so more than half of the time over the last half century or more stocks have been kind of in this nomansland where were not making new highs but we dont appear to be inside of a correction i think thats good piece of context to keep in mind. Its really a battle and you have to make a decision on which you think is going to win. Is it going to be the reopen trade or is it going to be the reality trade of the virus that is still spreading in big areas. Look at whats happening today, josh mentioned some of the stocks that are up adobe hitting a new high today apple is higher, microsoft pushing on a high. Amazon pushing on a high, you can call that defensive or you can call it the trade that got you here in the first place, continuing to work in the environment in which reality sets in on where we truly are. It is a debate, a tug of war. But heres how i see it play we have seen recent talk of vshaped and i dont see that. As the lockdowns came off, people went out, they havent felt fresh air for a long time so they went out, they populated restaurants as they opened traffic on the airlines picked up but theres where it will stop look, im throwing out a number, maybe its a 0. 8 correlation between the spike in cases in the 22 states thats expanding and an administration thats falsely claiming that its under control. There is no resurgence which emboldens others to go out and congregate i think ill refer to dr. Scott gottlieb from this morning, on the precipice of this becoming really bad you have to go where theres dependable growth and companies can thrive despite the economy and despite people being locked up and do better i continue to believe its technology, names you mentioned as well as a under wraps, the ones i have been talking about the 5g stocks continue to do well i would take the money that i made in the trades, in the airlines, and the others and put it into those and put some into cash because this market is in a trading range, it wont be resolved any time soon. Right this range, megan, is because of the great debate the tug of war going on im glass steve weis mentioned dr. Gottlieb, that hes outbreaks that we are seeing are on the verge of getting out of control. The market is not stupid, right . The market can push through all of the noise that youre getting from various corners about the virus to push through to the truth of what it sees from whether its models or clear facts on the ground of where the virus is still spreading and what impact that could ultimately have on things like Consumer Spending and behavior. Yeah. Absolutely the virus is still the central risk in our view and as you look back to when we were going through this the first time, with the first wave in february, march, april, you have to ask yourself we do know more now so we expect that the market will and should remain focused on the spread of the virus hospitalizations, mortality rates, things of that nature but the key question now is what is the policy response we do know a lot more about the virus so i dont think i think we can we can its hard to project what policymakers will do, but it is hard for me personally to see the broad scale of shutdowns that we saw in march and april if the response more targeted, more localized then you get to the point where you could see some of this rally at least being justified, but the markets been focused on the Inflection Point rightly so thats what happens when youre in a severe downturn you look for the data to get better or less bad but at some point we have to refocus on how long it will take to get back to that level as i look at what were seeing from realtime data, realtime Consumer Spending data is down from 10 to 15 from precovid. Some of the more impacted areas is the high income spenders and we that means we need to get more comfort with the virus and going out because those people those high income spenders are the ones who are spending on things like restaurant, leisure, travel. I dont see that coming back any time real soon. So michael farr, look, ill leave it to the experts like you guys to figure this all out. You have you know, obvious concerns about the virus spreading. But then on the other side, well, we are making Real Progress and it is undeniable on the socalled tool box that gottlieb talks about therapeutics and vaccine, okay and you have unprecedented levels of fed stimulus and youre going to get more from the government if you need to have more. The fed is not going away any time soon. Even with the numbers continuing to go up, youve got a sizable part of the country that is going to get back to business in some form or fashion theyre not going to sit in their houses anymore and governors may be reticent to shut things down yet again. So this push pull and tug of war that you have described between reopen and reality and as josh describes the battle of the two markets out there, really come down, i think, to what sort of investor you are. How do you react when you hear the hurricane is coming your way . Are you one of those who are going to evacuate when the experts tell you it will be bad and evacuate or are you the guy who is going to hunker down in your house, and say the experts are often wrong and somehow im not going to be vulnerable because somehow i consider myself special or are you the guy who says, look, i am vulnerable, im going to go ahead and listen to the experts. If its wrong its wrong you have to remember too that, you know, just to mix my metaphors. Just because evel knievel landed safely on the other side of snake canyon doesnt mean it was really a good idea for him to jump over the damn thing to start with so im a guy who will evacuate when they tell me that the level 4 hurricane is on its way. If it doesnt really come, you know, i have blown a couple of bucks on a motel room. I have that kind of portfolio too. I have a 70 or so of my portfolio in the core names of my microsofts and pepsico and Johnson Johnson and then i have some other names that will be opportunistic i think you have to invest for both outcomes. I think its a big mistake if you just choose a narrative through a really unknown period and say, gee, i hope mines the one that works out i cant do that if im managing other peoples money. But the problem, michael, to use your metaphor is if you if you left town during the hurricane, you missed out on march 23rd to the greatest rebound that anybody could have imagined in the stock market because you have to look at the big picture and say, well, i have enough insurance, so to speak, to cover the storm no matter what happens and were prepared to deal with it, visavis the fed coming in with their massive insurance policy to protect against the greatest storm that hits in a hundred years. I dont think its a buy sell decision you overweight towards the conservative side. I have stayed relatively fully invested through any market. Thats mandate from our Institutional Investors but to really improve the quality of the trade which i think is going to be a theme later as we talk about the shift of value today, scott, that making more quality decisions, more value decisions, a little bit safer decisions, i dont think this is a period where you can be reckless but that doesnt mean you go to cash either. So serat, im glad michael used the word safe, because i want to know what the safest trades are in the market and whether its just the safest right now to stick with those mega cap tech stocks, the likes of which i mentioned at the top of the show, the ones you havent gotten in trouble with no matter what i get that the stocks have sometimes pulled back for certain but its been an incredible buying opportunity. It wasnt all that long that we talked and we ribbed people about not buying apple at 150 the stock is at 350 microsoft continues to be stable, if not go up as does amazon i mentioned adobe and josh mentioned the other names. So i dont disagree i mean, the way we look at it is to have a diversified portfolio and look, if you put all of your money in f. A. N. G. , you would be a superstar and up double digits, but history tells you over time when stocks start crowding, just like they did in 09 with financials, they did in 99 with tech theres going to be a rotation out of the good companies. It is very safe and to use michaels analogy, its the safest house in a hurricane right now. But once the hurricane dissipates people are going to leave. So our view is do the balanced approach, barbell approach have your growth on one side and, you know, look the microsofts and the amazons of the world, i like them but i dont own them in the size of the index and on the other side i have the value you can look at value and you can laugh at it and make fun of it, but depends on where you are in value. Where are you give me some names sure. On the financial side, companies that are trading at book value or a little bit below, you have got the jpmorgan, the bank of america and i have blackstone in there, prudential and First Republic and u. S. Bank then i have the industrial side and i have high quality in there, honeywell i really Like Companies like lowes and fortune brands so i have the secular shift and cyclical on one side and the growth on the other side money does rotate you want to be there. We have seen that, you know, the breadth has actually widened out. You want to be in some of these other companies. I have a good amount in health care too that has secular growth as soon as we come out of this i think just having your eggs in one basket with work at times like this, and when we get back to normalcy and we dont know when that is, one month, two years, but when the fed is coming out to buy individual bonds a lot of these Value Companies that are Investment Grade now have a put below them. So you have the ability for these companies to go out and issue credit, not dilute their equity and i think over time that will add some value to some of these stocks as well. But, look, what they have done in the fallen angels when it comes to highyield etfs. So josh, ubs said you have to overweight value over growth its a debate were having every day for what feels like the last two or three months. Risk reward given what we talked about at the top of the show favors value over growth does that make sense to you . Yeah, no. I think i think its a question of time frame so if youre saying that right now you want to be overweight value because of the huge disparity in multiples, then what youre doing basically is saying the same thing that supposedly the smartest people in the room have been saying for 12 years i understand that there will be these periodic moments of massive mean reversion we went through one of the periods but the problem is they dont seem to stick. What we have seen happen over the last week as the markets recovered day from last wednesday, the mean gets inverted i dont look, listen to jeremy grantham, hes the most learned person to speak on this topic. He says, yes, of course, saying this time its different or foolish. But whats even more foolish is to even say this time is never different. We just happen to be in a place right now where Technology Companies have built these massive monopolies, its very unclear where someone is going to come along and dislodge apple or dislodge amazon i dont understand from where thats going to happen so until that happens, these Companies Continue to earn record levels of profitability, with growth that so far outpaces the overall market that these stocks continue to work. Right and megan, josh makes a great point. Like it just feels like were falling into the same trap that we have fallen into every single time, right . Value has a resurgence, everybody seemingly gets on the value train. This is the moment, its finally here and it works for a little bit but as josh said you get the reversion right back to the stocks, the growth stocks. Why is this time, megan, different . Well, i think that first you do need to be owning the secular growth stocks. Secular growers in technology in particular because i think those are going to be the areas of the market that lead us through and beyond the current crisis. But its really hard to ignore the typical recessionary playbook which would argue for more exposure to value if you look at pmi Inflection Points, rising yields, economic surprise, the city economic surprise index went from the alltime low to the alltime high in just a few weeks thats the type of environment where historically we have seen value outperform that doesnt mean so the the stocks need to sell off but its an area of your portfolio, but i would be looking for top shelf cyclicals. Not your cruise lines or airlines in this current environment. But definitely have some exposures to cyclicals. Josh . I would say the problem with the value versus growth conversation is that its actually an industry conversation in disguise so its not do you want to buy cheap stocks that are going up thats what Everyone Wants to do, right . Nobody buys a stock and says im vastly overpaying, right so what are we really discussing were discussing those that fall into the value bucket and thats a really, really difficult conversation to have if you think something all of a sudden is about to change the only thing thats happened is that Growth Companies have eat into the Business Models and the market share of a lot of the Value Companies and youre going to see that now in our industry. Going to see that in finance going to see gigantic Growth Companies that five years ago, you never would have said these are financial companies. All of a sudden become financial companies. And look, we can argue about what the drivers are but at the end of the day with Interest Rates low you dont need to be in search of a new playbook. We know what outperforms in low secular growth with unlimited capital for venture. We know its Growth Companies particularly technology Growth Companies. We already know that thats what took place the last time we were at 0 Interest Rates so why do you think all of a sudden something is going to change i understand well reach a point where the stocks become way too expensive. I dont know that were there yet. If you go back and look at real rates of between 0 to 1 , thats where we are now. Look at what the average multiple is from the s p 500 its around where we are today i dont think were in the space where the stocks are so expensive that it makes no sense to own them at all theyre growing 20, 30 . So tell me what going to chang that and then im listening. But i havent heard anyone be able to make the case that its about to stop any time soon. Michael farr, you want to or steve weis first and then michael farr. Yeah. Im sorry steve weis and then michael farr. I dont really like the labels in the discussion you know what is value, what is growth to me, value is in a facebook thats growing at 25 to 30 and selling at slight premium to the market value is not in an Airline Stock thats going to lose money because the stock price is done by threequarters of what it was from the highs theyll always sell at a ten multiple and mow at a much higher multiple because theyre losing money so i dont buy into the whole argument, i think its misplaced and i still think that you have to buy companies that you find sure. And not react to moods that have taken the industry down. Im sorry, you understand the spirit of this conversation, right . This is kind of like no, i do. Why make it so difficult to pick these socalled value stocks look, i get it some people think of google and facebook as value stocks like i get that. But by and large, were talking about a whole other group of stocks whereas josh is speaking specifically and the point were trying to make, the microsofts, the amazons, the adobes, some of the other chip names, nvidias and things like that why make it so difficult on yourself, right . Stay with whats already proven itself right and there are plenty of stocks like that. We just talked about the ones that are in, you know, in everybodys mind and consciousness. But as we said at the beginning of the show, there are plenty of stocks under the radar that we dont talk about that continue to grow, selling at reasonable multiples but not classic value stocks like a caterpillar thats been a value stock, by the way, thats done nothing forever or financials where the arguably the Business Models are impinged at this point because of regulations. I think that makes it difficult getting caught in that value trap and trying to go after those stocks and hoping theres going to be value and hoping youll be bailed out i wanted to get to another group of stocks that, you know, i dont know maybe in the midst certainly have been doing well rahel solomon will join us now jonathan credentialsky who we know as a technician over at bay crest who has been on the Program Numerous times. So he thinks the biotech ibb can be poised to break out its been trading in a relativity tight range so a couple of the names he says to point out to watch, alexia pharmaceuticals, and vertex pharmaceuticals. They have all been up by about 36 and 60 off the march 22nd lows now one is up about 90, and its up in the same time frame. What he thinks a move for the etf overall can look like, 145, maybe even 160 or 20 over the recent levels, off the recent levels so scott he says to watch this space closely. And reasonably for a good reason, right . I mean, josh, you have been looking at these trying to anticipate the breakout when you bought them back in may. Yeah. I try i try to be more disciplined at and not anticipate breakouts but in sectors i feel more comfortable doing that so to rahels point, these are consolidating just below a level where you would see big breakouts. I like xbi because you get representation in the mid cap and the small cap as well. Theyre equal waiting the 30 biggest biotechs thats a good approach historically in sector wide moves for the space. But then ebi is very heavily concentrated in the biggest biotechnology Companies Like the amgens heres the reason, because everyone is saying, okay, we have low rates, we have low growth and even if theres a vshaped recovery, back to what . 2 growth . It wont be a fast growing economy, so what are people looking for . Theyre looking for secular growth stories and i think large cap biotech, mid cap biotech works perfectly. If youre a specialist in the science, you may own the names individually im not good enough to do that, so thats why im in both of the indices and im going to do just fine. Rahel, thank you for the report, by the way steve weis bought the xbi as well its not like the stocks havent been on the radar of the Investment Committee but as you point out in the note, some of the targets that hes looking at, its very much a technical case of a breakout under way as to why he thinks that the stocks can reach this point, right to that point, yeah there wasnt a ton of color in the note but they were associated with the charts it was very technical so he provides the base cases and the sort of ceilings and makes the case that he thinks that, you know, from the last six weeks that well break out from the ceiling level. All right good stuff see you later as well. So weis, tell me about your buy of the xbi as well. So i have been in and out of the xbi. The reason i own it is because i think that youll see the growth trade extend more into biotech this will be the sixth attempt another a breakout in the xbi over last month. So you cant be sure its going to happen. Downside has been limited but i like the xbi and actually not because of the amgens. I like it for the modernas which i own independently and it gives you the mid cap growth in the bio in terms of the new products and the pipelines. Its a good play, a diversified play it gives you the risk of the individual names moderna is a special situation i have owned some of the others like serepta i sold it too soon i didnt know it would be a tenbagger but nonetheless its youre just bragging. You own j j and becton dickinson. Yeah, this is my safe way of having the biotech exposure and it goes back to the notion of value versus growth. I dont just buy the value and i thought scott weis was going to point out in addition, a lot of the value stocks can be value traps which means theyre cheap for a reason and theyll stay cheap for a long time and theres nothing to get them off of that valuation and book value level. If you buy that good, strong Balance Sheet that has reasonable cash flow in this environment, that can actually grow, then youve got something worthwhile the three stocks you mentioned, Johnson Johnson, good Balance Sheets with growth i like them better. Ill take a quick break we have bullish calls out on fedex and tesla. Were back in two. A unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Were stepping up and were drawing attention to the hsbcus. The gift is transformational. We have taken on the responsibility of educating more of our students who are without Financial Resources themselves i got an oriole here. Eh. Common bird. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. All right. Welcome back lets get to headlines now with sue herera. Hello, scott and everyone heres whats happening at the hour new cases of the coronavirus continue to surge in florida that state is reporting more than 3,200 new infections since yesterday and that is a new oneday high florida is nearing the end of its second week under phase two of its reopening plan. New york citys mayor bill de blasio says the city will enter phase two of the reopening on monday. Offices, hair salons will be able to reopen and restaurants can offer outdoor seating. In oxford, massachusetts, town officials have cut off electricity and water to a gym thats refused to close due to coronavirus despite a series of fines and the court order. The owner said he wont back down. A judge has indefinitely extended an injunction preventing virginias governor from removing a statue of robert e. Lee in richmond barriers have been put up around the graffiti covered statue to prevent people from ramming it. Thank you fedex price target raised today to 160 at citi. Michael farr, you own it i have a couple to get through, but lets start there with fedex. You know, scott, i have owned it for quite a while i mean years the stock did struggle over the past couple of years, was really getting their act together through the end of 2019. Good plans in place. Capitalizing on a number of issues with their transportation fleet, their airplanes theyre benefiting from lower fuel costs now i continue to like it and i think it will continue to emerge very strongly. Its really its a core position for me. I would add it with fresh cash today. Yeah. This was a maintaining of the buy rating just the price target got bumped up michael farr had a buy on it for a while now. Josh brown, a stock that you have talked about, Invitation Homes, initiated today by janney scott. Price target goes to 40 im telling you, i own this i own it in an account thats tax deferred so im not paying ordinary income on the distributions. And i had the distributions being reinvested this is one of the names i am most bullish on. Im planning to hold it for five to ten years i think this could be a massive upside opportunity plus a lot of current income along the way Invitation Homes owns 80,000 Single Family homes in the best markets in the country and they have an average of 5,000 homes in each market which gives them a lot of scale as a landlord and they sell all of these Addon Services like Entertainment Services and landscaping, et cetera so if you want to live in a house as opposed to the city, but you dont want to own it because you might have to move or whatever, or you want to scale up over time you pay them rent and live in the Single Family home. Thats a mega trend not only because of the pandemic. Then you look at the typical customer whos making a lot more money than the typical renter in the country. So they have favorable demographics, a great market its california, florida, and i really love the setup here with just the household formation thats happened in this country. So i just think its a great situation. Its been, josh, a pandemic play i know, you know, not just the pandemic as you say, but in the past three months its up 45 . Were talking about urban flight and whats happening to the biggest cities in the wake of the pandemic this is an absolute play off of that i said 45 , its up by 48 in three months. Listen, this look, theres only one publicly traded Comparable Company to Invitation Homes and this company has better fundamentals and better demographics of the people paying them rent to live in their homes. Now, if they go on the acquisition fee with the low rates they can and they buy even more homes than the promising markets. Not only does it benefit in the pandemic environment we are in, but the longer term growth of that think about it, people who own Single Family homes and rent them out, theyre going to roll up the whole industry i think over time. I didnt expect the stock to go right to 44, but i think as a longterm investor, buying more shares, i think im going to do really well here and thats what i would say. Stock is moving higher. In fact its moved into positive territory by just about 1 three other big names are on the move today too because of the calls. Rahel solomon is back once again. What do you know about tesla, shop apie and paypal well its really separating itself from the peers, in terms of the Battery Capacity and shares are up about 1 and the stock is up more than 130 from march lows two different calls on two very different positionsnow on how we all shop. Shopify getting a new street high at rbc, 1,000 and hitting an alltime high today so the analysts see the company as a beneficiary of the increase in ecommerce spending of course due to covid19. Now, josh mentioned this one at the top of the show, paypal. Hitting an alltime high today and seeing a new street high at susquehanna at 190 per share. So paypal has been making investments in physical in store purchases and analysts like that its interesting, no matter how you play this, if you want to bet on in store purchases or the move in the acceleration in the commerce spending theres call for you. Do you like the paypal call at susquehanna its a new street high from 150. Yeah. I missed this. This is one of the stocks that every time i look at it it makes me miserable i should be in it. I knew it was going to work. I just didnt pull the trigger and i have been totally wrong not to be in it. I do think its going higher. Tell him what you missed. You own it. Its one of those we buy when its a pullback. Its the ecommerce part doing really well but the part that is today that doesnt have the full value is venmo. As we go into the cashless society, more and more using venmo, theyre coming out with a credit card, but the stock is definitely not cheap its got a great valuation, but on any type of pullback this is company to own for the next three to five years. Weis, i know your buy of visa plays into this story. Even though its not a paypal specific event yeah. Right, so i visa, the reason i did is that because the cash its accelerated by the pandemic so like josh, i knew id own i didnt own paypal, i regret that not buying here, but visas still well off its high. So the credit risk which makes it more even more attractive to me and continues to sign just talk about the Home Builders for a second the xhb which i own and also added to its up 80 and this gives me home depot and lowes because i think Home Ownership will go through the roof. Rahel, just coming back to you quickly, im looking at some of the wording on this shopify call today we believe the market underappreciates three things about the company. They go through, you know, a few of those things. But the stock hits a new high today and its sort of the kind of market youre in for these ones that are loved and the real winners. The stock has the great appreciations and what do the analysts do, they bump the price target up even higher. They seem to think even though it has quite a bit of market share they seem to think that the total adjustment markets for e commerce is untapped most are happening in physical stores so they think theres quite a runway for the company. That is for sure. Rahel, thank you. I would be yeah, go ahead. I would be just careful, theres a curse on whatever becomes the largest stock in canada, tech darling in canada it began with nortel followed by blackberry, followed by valiant was the largest stock in canada at one point shopify i think is on its way if it hasnt already to unseating rbc. Be careful about owning the largest stock in canada. The recent history has not been kind. A new 52week high. Mortgage rates are at a record low and Home Builders sentiment surging higher well talk about the Housing Investment and a reminder, you can listen to us on the go on the cnbc app back after this. [shouting] [clapping and shouting] [cymbals clanging] [knocking] room for seven. And much, much more. The firstever glb. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. Thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. Welcome back buyers are rushing back into the Housing Market, demand for mortgages spiking to the 11year high as rates hit record lows. Our next guest invests in resident mortgages ken, nice to meet you, welcome to the show. Thank you, thanks for having me. Why this part of the market yeah. You know, its theres a lot theres a lot of things going on in the marketplace right now. A lot of volatility, but one of the stable places seems to be the Housing Market and the reason is that theres a game plan for homeowners as unemployment spikes, we have the homeowners talk to their servicers and to into forbearance. They can miss up to 12 payments without affecting the credit score and then they can make the mortgage payments after the 12 months they can, you know, make it through this economic slowdown 12 months is a long time for the employment world to improve and the economy to improve. I mean, youre talking about a certain amount of risk being taken out of the Residential Market where it still exists in the commercial real estate market, right . Thats right. The commercial market is in a different world. Its a lot of uncertainty going on in the commercial market. Were sitting there in march and we were wondering if borrowers would make their home payments and then we needed to see if the multitenants going to pay their rent, Office Buildings going to make their rent and with the economy shut down, it was a very unknown thing. But as time passed, we actually started to get data points that showed certain parts of the commercial market arent that bad. Industrial, for example, is in high demand. Any retailers that werent online are trying to move to Online Services and so you need the logistical centers multitenant factors in april which is one of the worst times they made 88 of the rent payments 95 in urban areas office is clearly more uncertain as we all sit around working from home and then the landscape gets worse as you go into hospitality with hotels not being used and then lastly, Retail Retail is clearly in a bad spot. But it was bad going into covid. You cant ignore the fact there are millions of people who are out of work which of course makes paying the mortgage more difficult. But a lot of jumbo loans fall into the nonagency side too. If youre at the higher end, maybe youre not as susceptible to the lower ends. Does that factor into why these are more attractive . Absolutely. If you look at the landscape of borrowers in the mortgage universe, on average homeowners have higher paying jobs, higher median income, higher savings. They need the savings to make the down payments and then most of the job losses are in lower paid jobs, hourly workers. People in retail and hospitality and leisure. For now, it seems like homeowners are in a better spot. Now, one of the things that were thinking about though is that theres a lot of jobless benefits and so maybe the landscape for all consumers gets worse after the benefits roll off at the end of july. Josh brown has a question for you, ken. Ken, thank you so much for coming on the show double line historically has done really well with nonagency nbs but as a consequence of the greater financial crisis its a universe of potential securities to invest in thats been shrinking. So its four times the size. How big can your strategy get and how selective can you afford to be or is there plenty of room for everyone look, its still over half a trillion dollar market so theres plenty of opportunities to be had and we can scale appropriately in our strategies but that same supply demand technical is very positive for the price action of the assets theres just not enough bonds for sale and as supply demand improves with the outfunds going the other way, as that demand comes in it bodes very positively for spreads going tighter and prices going higher. Future returns right now look potentially very attractive. Ken, good to have you, see you again soon. All right, thank you so much. To reach us go to cnbc. Com halftime. Tweet us as well joining jim cramer on mad money adam aron n meaertistn me dootiss it you turn 40 and everything goes. Tell me about it. You know, its made me think, im closer to my retirement days than i am my college days. Hm. Im thinking. Will i have enough . Should i change something . Well, youre asking the right questions. I just want to know, am i gonna be okay . I know people who specialize in am i going to be okay. I like that. You may need glasses though. Yeah. Guidance to help you stay on track, no matter what comes next. Iredefined the wordng thschool this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. All right. Lets answer your questions now. Jim from andover, massachusetts, my 13yearold son has 400 he wants to invest in the market. What to you recommend . So for the first 400, this might be poring but i would just say spy. Buy the index and read, start read if youre really interested start reading books about trading. I thought youd say apple. Its the same thing good luck to your 13yearold son. Yeah. I have a position in walmart, target is looking very attractive but i dont want to own both what are your thoughts on thougs im for target. Recently its been the outperformer the growth is better its not as big as wall matt, so its got more room to grow, and they are able to innovate a lot more quickly both stocks have done well, but i thinked market share theyre picking up from the others will do quite well. My preference is target. Sirat, to you from springfield, new jersey. Is jpmorgan a buy . If so, at what price i think in the low 90s its a Great Purchase a great franchise, best Management Team out there. I think when things turns around in the financial sector, this would besh. You buy it here at 99 . I would buy it here, too. I absolutely would i think this is under 120, i would buy this right now. Okay. Just wanted to check megan, to you. I was down 30 in march. After binging cnbc for a couple days, you three my whole account into sec ullr growth tech. Im now up 15 on the year nice job. I think i should start shaving that theme would you just hold cash and jump in on a pullback . Good question i might have to dodge some rotten fruit being thrown at me from the other panelists i know secular growth is popular, but i think you have to diversify. You are being value and cyclical stocks are cheaper we like from aerospace and defense. I would say within consumer discretionary, there are thoughts within large restaurant chains i would also say financials. Theres some opportunities for the being i would say high quality, bigger banks. Good stuff. Michael, to you from rick in charlotte in north carolina. Starbucks has been lived in this range for week is there a catalyst to move it higher, or should i invest my money elsewhere . Rick, im an investment guy, not a trader guy, but i hold starbucks. 80 of their biggs was dont eat it in the restaurant before covid. China is coming back i like starbucks as a longterm hold. A quick break and then copper prices are climbing back 20 in three mthons. The reopen trade well get the trade for you next on the half. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Wherever you make go, lexus will welcome you back with exceptional offers. Get zero percent financing and make no payments for up to 90 days on all 2020 lexus models. Experience amazing at your lexus dealer. Experience amazing there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Time for our futures outlook. Copper is seeing some volatility as investors bet on a demand comeback, one trader says the rally is about to cool off scotty, good to see you. Good to see you, man. So this is track the stock market for all intents and purposes, right . It got ahead of itself last week with a double top so thats a reason i want to be short it i would sell the july contract in copper. Well also trade these with a top. 264, just above todays high my tart to the down side will be 2. 40. International flavor of copper is now at handicap point. Going to fade it, in other odo s. Go tsee you, scott. Good to see you. Quick break and we come back with the final trade, straight ahead. Okay, give it a try. Between wisdom and curiosity, theres a bridge. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Megan, final trade youre up first. We like medical equipment a survey found 40 of americans delayed medical procedures, so i think theres pentup demand. Steve, what do you got for me lulu. I think this is a good place to get reengaged. All right michael farr i continue to like valmont. Its a 2. 4 billion company, and it has a p. E. Ratio as opposed to p. W they have a bit of a different, infrastructure, this company does very well all right. Illumina. This is a secular growth, gene sequencing, we own this for the long term. And the reformed broker, last but not least. The buyers came in for slack after the selloff at 30 30had been resistance, the buyers solidify that level as support. I think its a lowrisk entry here and now headed higher. Great to see everybody thanks for watching. Kelley picks it up right now. Well look at whether the market can break out plus work from home worries, the profound impact this new way of life could have, could it lengthen the recession in the near term. The new kid on the block has doubled this month its a bullish one the analyst behind that call joins us we bin