Away from new highs. Joe, i begin with you. The question is how are we going to get to those new highs . Value is outperforming today is this the start of the longawaited rotation . Well, your initiating a great conversation, scott, because as you have identified the s p 500 is basically sitting less than 1 above its all time high whats critical, though, in getting there if you are not going to have a significant outperformance from what has worked, which is clearly hyper growth, is youre going to have to have the participation from the value names. Lets put in context where value really is. Scott, the russell 2,000 is still sitting 9 below its all time high it achieved in august of 2018. When im thinking about value i also have to think about value and get contribution from small cap value, not just Large Cap Value because there has been such a differentiation in the Small Cap Index this year. Small cap growth is up 22 year to date. Small cap value is down 12 . So, yes, i believe it has to come, the contribution, from small cap value, you have to be very tactical in how youre doing it, you have to ask yourself where am i taking the money from if im allocating it to tactical value, but i also want the Technical Support and there are some names that ive gotten into recently where youre seeing Technical Support, youre seeing some 52week highs but i just dont want people going out and looking at these value names that could be value traps and saying, oh, from a price standpoint theyre cheap, lets just buy them. Right. That is a very dangerous strategy into all right. Shannon, i mean, i think this is the biggest question in the market right now, are we going to see this great rotation from growth into value and, in fact, is this the start of it today and in what is really been the trade, value has outperformed growth in terms of the etfs markedly over the last month, the value etfs up 5 , momentum is only up a quarter of a percent. Jonathan krinski today, well known technician talking about the teixeira as well he said while this trade has continued to struggle since its massive run up we think its setting up once again. Is he right . Well, we have had a lot of fits and starts on this trade over the course of the last year, scott, and weve talked a lot about that i think theres two starts to this argument, is this rotation to value sustainable and if it is, what does it need to create what does the economy need to do to create support for it to be sustainable i think thats even more important. In order to have a true rotation to value and rotation to cyclicals which is how we look at it we need to have evidence that the economic recovery is sustainable. So otherwise, you know, you will not continue to see value stocks outperform they need a cyclical tailwind to couple with the monetary and fiscal tailwind weve been enjoying otherwise what youre going to see here is youre going to see perhaps a pull back in mega cap tech, for instance, that offers a buying opportunity for people that are looking at a low growth, low Interest Rate environment ahead of us, unless you expect there to be growth and inflation which the yield curve would start to indicate by steep thing, we are not going to see a sustained rotation to value. So were looking for that economic credibility to create our basis for a sustained rotation to value. Steve wise told us this big rotation is going to happen this week, maybe this is the start of that Morgan Stanleys mike wilson says the better relative opportunity at this point is with cyclical stocks, those stocks most levered to the economy over the next 12 months, with he would look to add exposure to that side of the barbell if the market corrects as we would expect we talked about this a lot, steve, whether this rotation was going to come, whether these tech stocks have simply run too far and you need a catch up trade and maybe this is the beginning of something well, i dont look at the overall market as cheap, but here is what i would suggest, rather than listen to strategists or technicians, listen to vaccine researchers because if you get a vaccine youre going to see those laggards lift. As joe points out in regard to valuation. So price is not valuation. So i would tell you that a lot of these are already expensive, but if a vaccine happens, everything moves up. Does anybody really believe that the Technology Stocks which have also been held back, i would say, in terms of the fundamentals and their earnings by covid and the economic malaise, with the exception of the zooms and so forth, does anybody really think they wont benefit in an economic recovery . No, they will. Like we saw over the last nine years, of course they will. Youre right. Your point is welltaken but isnt this potential for more upside on the ones that have lagged, the cyclical, value, epicenter, reopen, whatever you want to characterize that trade as absolutely. As a trade i agree as an investment if you look at a number of years i dont think things will change and they have for the last ten years or so value will be a laggard. Now, there are some that will definitely have huge moves, those will be the airlines, the cruise ships, but then youve got to go back and say, okay, how much have i been diluted how much of my Balance Sheet has been hampered by this . Yes, i think its a good move, its the obvious move now, the move in front of the vaccine and theres, you know, ive increased my weighting in those stocks with the johnson controls, with the trinet, with an xpo that i increased, with an ups. So i have put that bell you know, that barbell approach in and then what really hurt the Technology Trade is the china relations which continue to hurt it and so thats those two things have combined, conspired more aptly, to push value ahead. Tiff dow is up almost 300 today. Is this the start of something bigger so i think everybody makes really good points, you know, im first of all, im not ready to, you know, throw tech over over the boat or growth. So, you know, we really continue to focus on identifying like other pockets of opportunity i talked about the fact that i favor, you know, investment banks over commercial banks and in particular as were having this conversation about value, you know, i really like their diversified revenue screams but i really like in the financial segment outside of jpmorgan and your goldman sachs, if you will, kind of like the usual suspects, i really like the independent Investment Advisers and so theyve actually they actually tend to and have been outperforming the broader financial sector, the prices are really great as a matter of fact, they outperformed about 14 in the Second Quarter they beat theyre beating revenue expectations they really do have this diversified stream of revenue that is countercyclical so i really do like those plays, i will give you maybe three ideas. Pjt partners, griet price, evercore and houlahan loki were looking at those value plays, the banks have been, i dont know, but a lot of the financials have been value ps tra, right, because they havent gone anywhere. Michael farr, why dont you address where we are, where you see us going and if were going to make new highs is it the value stocks that are going to get us there and beyond . Scott, i think weve been talking for a long time about having sort of an upgrade in quality and portfolios and a lot of the value names are good places to start, but all the val luts stocks arent the same and a lot of them can be value traps, a lot of them are cheap for reasons and are probably going to stay cheap for a long time, but those that are exposed to the economic recovery as we come back from pandemic i think have a really Good Opportunity for investors and probably a decent time to diversify out of some of those that have been just tremendous winners and probably become an overly large part of a lot of peoples portfolios and those faang stocks with the dollar falling a lot of those Multinational Companies are going to benefit from that currency translation at quarter end. Theyre going to benefit from the weaker dollar. A lot of the multinationals will do that with fabulous Balance Sheets they could sort of qualify as value stocks, i think there are very good names there to begin to migrate but not too quickly. A lot of people have called the end of this dance prematurely for months, maybe even years, also a resurgence into value for the weve been waiting for ten years for value to come along. I think dont look to the sector but look to the theme of that undervalued, that have gotten beaten up here, that are going to see a recovery and are also going to have a tailwind, i think, from currency. Maybe this is finally the moment, joe. You just literally got deere, mosaic, adding to csx and eqt. You must think this is the start of something if youre willing to buy those stocks. Yeah, scott i have tried to not be fully exposed to mega cap growth i have tried to find opportunity as it relates to value and doing it in a capacity that i kind of replace the word value with quality. I focus on debt to equity, i focus on return of equity, i focus on whats the Sales Growth Rate over the last three years the names that you mentioned, cnx, eqt, ive been adding to those positions, talking to steven weiss about them. Eqt is at a 52week high but theres other names in my portfolio that i think are qualls fate testify. I think you can look at a best buy. I see the opportunities in the industrial space, i see the opportunities in the energy space. What about deere and mosaic deere and mosaic, why . So deere and mosaic it is as i was beginning to say its about better performance in Business Activity as it relates to industrials, as it relates to energy and the same case can be made for mosaic. Pete najarian owns it, tom lee spoke about it on the network last week, they are also concurrent with a technical breakout, you look at mosaic, it cleanly broke out above its 200day moving average last week so i like that formation talking about cyclicals which clearly have some form of a catalyst here to value, scott, the cyclical trade has been outside of the u. S so i believe now the opportunity is to return some of that global cyclical capital thats been allocated, return it into domestic cyclicals i think thats the right trade i would exclude financials, though, from this conversation because and i agree with a lot of the names that tiffany has mentioned, but i just dont know in terms of the support youre going to get from the yield curve if financials are going to see the same type of recovery that youll get with a return of Business Activity as it relates to industrials and energy. I go back to cramers go list we have debated this the other day but i go back to it today because these are the kinds of stocks that would likely work if you think that value stocks are going to have their day finally, the disneys, mastercard, nike, ppg, dupont, rainfall lauren, Union Pacific. Now, you may not love every one of them but the theme is consistent to the type of conversation were having right now. Yeah, i dont disagree with that i mean, those stocks will move, theyve been laggards, theyve been oppressed pvh, great management, great company. I had to go to the mall to pick something up this weekend, its a ghost town its sad to walk this there. Its depressing. So you really need a vaccine to see those those stores come back, those stories come back, but im going with quality and im not necessarily going with sectors, i just view some of those as lower quality Stock Holdings and there are better plays. We talked lulu which Pete Najarian and i own versus a Ralph Lauren Ralph lauren has been a problem over the last few years, i like joes points. Steve, Everybody Knows about lulu, lulu is up 50 year to date for obvious reasons part of the point here is to try and go beneath the surface and find that next wave of stocks that are maybe in the retail area, for example, that are going to be able to have a good go of it if you think value stocks are going to rise because you think the economy is going to be able to pick up some steam, that there is another side of this, you talk about the vaccine, good vaccine news is good for a lot of different retailers. Why isnt ralph, for example, part of that conversation . Because ralph is going to be a trade. Ralph will move up in a trade. They dont have the fundamentals, havent had them for a long time to be a sustainable mover. What youre really talking about is being a psychologist and saying, okay, what stocks are people going to go to and the junk and ralph is not junk, but its lower quality than i would say than other Companies Like a target which i own. So to me the strong get stronger when the deck clears and the weak will have their day in the sun but it will be a shortterm trade. I want to be longer term than that so i bought a johnson controls, i mean, that is they had a great quarter but what do i do they are in office rel stitt but theyre also in hvac, theyre in making the air in buildings cleaner, they can in security. So youre going to need a lot more of that to bring people in. Is it a place why you want to be commercial real estate right now, no, but the stock is moving because management is performing, theyre early to cut costs. Trinet also trinet actually had a phenomenal quarter trinet is selling at a discount to market multiple, they will be just doing great business, they are the outsource solution for hr including insurance, compliance, payroll. Theyre going to do quite well when the market comes back because theyre doing well, theyre basically flat year over year do you want to be in Something Like that where Companies Going out of business, small and Medium Business segment . No but its a Strong Company that will get stronger. So why dip down the quality line to get q to play your trade when i can buy something thats going to work now and in the future as well. Shannon, in terms of the go list, Union Pacific, i know disney is owned by a lot of people, we have had many disney conversations i dont want to do that now, but Union Pacific is on this list and happens to be in your book right and i actually i dont disagree with what steve just said i just want to be clear. I think you can still maintain quality in your portfolio but take advantage of the fact that some sectors have just been under pressure and so if you look at Union Pacific, martin marietta, there are tail winds for these companies that indicate that they are high quality, wellrun companies that you can look at from a fundamental perspective in your portfolio and be able to sleep at night, but might also benefit from this value rotation tailwind so, you know, if i look at Union Pacific or martin marietta, similar story for me, i see, you know, enhanced economic activity, potential infrastructure spend a move from, you know, from the coast to the heartland, you see the move to from a population perspective into texas so i dont think that you need to, you know, hold your nose and pick lower quality stocks in these sectors, theres High Quality Companies in these sectors that are going to benefit from this rotation so you dont have to necessarily bottom fooed here, and weve always been adamant about that over the last six or nine months. Tiff, mastercard is on the list you own it. Yeah. So were not buying any more mastercard right now, again, within financials, you know, we really do like those independent Investment Advisory companies and we really feel like thats where the value is right now. Well, lets add another voice to the conversation that value is going to have its day, the chief u. S. Equity strategy at jpmorgan joins us on the phone welcome back thank you everybody is coming out of the good work now, its krinski from the technical side, tom lee from the fundamental side, mike wilson over at buildimorgan stay and now you. Weve had already i want to say this is the fourth attempt at [ inaudible ] making at a come back since the end of march lows, market lows and the first three attempts have pretty much gone in reverse and i think the main reason for that has been just simply lets say lingering covid fears, but i do think that youre now basically seeing an increasing number of signals that are coming together and suggesting that Covid Recovery theme has or should have more legs and as a result value broadly speaking, yes, but more specifically, you know, some people call them the epicenter stocks, but more specifically laggards or covid impacted stocks that have a relatively good Balance Sheet, pretty good fundamentals i think could be sort of the next leaders of the market over the course of the next, you know, 6 to 12 months so im not talking here about the big new sort of structural investment, i think that a lot of these secular growth Long Duration names i think remain very well supported but i think that right now sort of the next 6 to 12 months i think we need to be thinking more about some of these laggards that have pretty good pretty good Balance Sheets and could see a much higher degree of upside earnings surprise than the growth names which i think at this point have pretty much most of the goodies priced in and i think less room for surprise on the upside. You think that im sorry, go ahead forgive me finish your thought. I was just going to say and then clearly you could definitely make a flow and a positioning argument in terms of extreme positioning and people are hiding in a lot of these Long Duration secular growth names, Short Interest levels for a lot of these Covid Recovery stocks, pretty good fundamentals do remain elevated i think you could see a little bit of a rotation for sure the difficult part is really timing this. Its very hard to time this by the day, by the week, but i think this is what people need to be thinking about in the coming period. I mean, theres been so much road kill of those talking about value as you mentioned, this is the fourth attempt do you feel like the virus news is taking a turn for the better and thats going to be some of the fuel behind this trade i still see so much unevenness regarding the virus and where the outbreaks are and what the better side of this is going to be a few things i would like to mention quickly. One, yes, the global Covid Recovery we think continues to make progress and fears around the latest surge weve been having in the u. S. I think should be abating while there is continued advancement on the Vaccine Development side with the very strong pipeline in place, we will probably get more results in september and so forth. 2 q earnings are marking an Inflection Point in the profit cycle. I think for these laggards and value names the worst pretty much is over thirdly i would say Global Business cycles across all the regions are definitely showing a Pretty Healthy upturn and another thing i will mention which is really interesting and i think people are not giving it enough attention, everybody is talking about how rates need to move up for value to work, but i am not sure that rates are the best signal right now. I think if you look at Inflation Expectations, inflation breakevens i think they are a better signal because of the Central Bank Intervention keeping rate structure lower Inflation Expectations are moving sustainably higher and historically this has been a strong positive for value. I think thats an interesting signal to look at as well. As long as you have 20 plus Million People unemployed dont you put a cap on what those kinds of stocks can do, discretionary and cyclical names, its going to depress the output of the economy if you have 20 plus Million People who are still unemployed and the jobs number on friday while a step in the right direction and while a touch better than expectations still suggests that hiring is slowing. Yes, i mean, it is. Look, it is and, look, we need to see how exactly how quickly this recovery will play out. There is still a lot of people without jobs, but i think here the question that people are asking is really not so much what will sort of the next few months look like, but really what will 2021 look like on the labor, on the jobs side and i do think that we should continue to see, you know, improvement and so i think that bodes very well for a lot of these laggards. When you look at the gap between i will call it your main covid beneficiary names that are pretty much outperforming the market 25 to 35 on average versus the laggards that are basically behind the market by 25 to 35 youre looking at a 60 , 70 gap between these two and, again, i think a lot of it is really what will earnings revisions trends look like for these two categories, not end of this year but really next year and i think next year we should continue to see a much healthier economy and actual, you know, Even Stronger recovery as far as the job market depose that should support these laggards. Guys, i mean, shannon, you say as tobias left vich is talking about today over at citi what is going to force people out of tech and into some of these value areas . He says its not going to be valuation, there could be a number of Different Things but, shannon, isnt part of the issue you have to give people or force people to make a move out of technology into some of these other areas and that may be a hard sell, if you will its certainly not going to be negative news because mega cap tech has been the best defensive trade over the last six months and so i do think that, scott, you make some great points we are coming on this really important Inflection Point over the next six to eight weeks, a lot of the economic improvement that weve seen just cant continue at the rate that weve seen over the last eight weeks and, therefore, at what point does, you know do investors look at that economic prognostication and say, yeah, im really sure that 2021 is going to be significantly better and so for us thats why, you know, we have trouble thinking that this is going to be a sustained binary rotation to value. You need to have that economic backdrop and you need to feel that there are going to be continued improvements in hiring and consumer activity and consumer confidence, all of which have weakened over the last two to three weeks. I think this is a bit early, but, you know, there still have opportunities in these undervalued in these undervalued sectors. Energy, chemicals, machinery, airlines, durables, restaurants, leisure, financials. You really like all of those groups i mean, its very hard to generalize and i think some of the folks, you know, on the set made a few comments earlier. I think its hard to generalize value because you do have a number of very sort of stressed, you know, companies within the value camp for very valid reasons. So i think you sort of need to look at, you know, theme by theme, subindustry by subindustry, stock by stock. What i said, yes, broadly speaking value cyclicals is where i would be tilting but more specifically the Covid Recovery themes which does incorporate names from the consumer side, industrial side, some of the materials, energy as well as financials yeah, broadly speaking those groups but obviously you want to focus on, you know, better businesses and, you know, better run businesses and, you know, better Balance Sheets. Appreciate your time as always thank you for being with us again. Thank you for having me Dubravko Lakos part of the issue, michael farr, if you do have money coming out of tech because its such a big part of the s p the overall market is likely to have an issue, unless all of that money comes out of tech and goes right back into these other areas to prop the market up wall street journal today looks at the issue of market concentration, something weve been speaking about almost daily for the last many weeks, together the ten biggest firms in the s p 500 comprise 29 of the index. Okay thats according to data that theyve looked at. Michael, if you have money coming out of lets just say the biggest ten stocks in the s p and the great majority of those ten are tech which they are, can the market handle that i think the death of tech has been sort of forecast for the past few years and its always been a bit premature i guess as mark twain would have said you know, that concentration that has driven the s p, driven certainly and driven the russell 1,000 has been in place for at least four or five of the last years where its been that narrow concentration that has driven the leadership and the performance. To say that thats going to end, i think, is probably is a very risky call. So i think the thing that makes sense is to sort of pare back and trim i dont think that will affect those in a serious way because there is still the leadership. To pare back is one thing. I cant see the markets abandoning in any way that leadership and those darlings that have made everybody so much money. I gotcha. So i dont see it coming, yeah. Nor do many of the analysts, michael. Apple, target raised today street high 515, apple target raised 480, pinterest jun agreed Morgan Stanley goes to 44, your point is well taken. It still seems silly. Lets take a quick whack nvidia shares surging nearly 90 , one firm thinks the run ll continue. We will gate that straight ahead on the half. This is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Welcome back lets get to Contessa Brewer who has a market flash on the casino stocks hi there, scott session highs for wynn and las vegas sand on news that tourist visas will be issued to macaw and then expanded to the rest of china. Melco is up big on the day as well mgm which has properties normally gets about a quarter of its revenue in macaw, the big news for mgm today, look at those numbers for its stock is the billion dollar 12 stake that barry dillards iac took. Paul salem told me today Sports Betting will be massive. They are run more online Commerce Business than we ever have they may have forgotten more about e commerce than we know. Who could you pick, paul salem told me i would have picked barry diller draftkings and penn are apparently under pressure today, draftkings down more than 8 , perhaps more competition from mgm and iac, but also news that covid might interrupt College Football season as well, scott. I bet i mean, penn is directly related, what do you think, is it the barstool deal that they have and thats why that would be reacting the way it is . Yeah, exactly and theyve pinned all their hopes on this big massive venture with barstool and sports betti betting. Another major player that helps mgm and they were already well positioned to compete so bringing iac on to compete in that online space will add pressure to other companies. Appreciate that thank you. Contessa brewer. Shannon, you own Las Vegas Sands. Yeah, certainly the macaw news is welcome to shareholders of Las Vegas Sands this is a pseudo china play for us, but i think that the point about an expansion of investment in Online Gaming is also important. This is a part of the economy that continues to grow, particularly in that younger male demographic that businesses are looking to capture so even though penn is under pressure today i think were going to continue to see some strength in a tailwind for gaming stocks across the board but were very happy to see that macaw news for lbs. Big day in casinos. Sizable gains across that whole spectrum lets get to Frank Holland he has the other headlines for us this had a you are. Your cnbc news update chicago Officials Say more than 400 Police Officers were called in to control lut iooting mass transit was stopped and bridges raised to restrict access mayor Lori Lightfoot says the city is coming after the perpetrators these individuals engagement can only be described as brazen and extensive criminal looting and destruction and to be clear, this had nothing to do with legitimate protected First Amendment expression in the amazon wildfires are raging and raising concerns about the destruction of the rainforest brazils space agency recorded more than 5,800 fires in the first six days of august, 7 more than last year. If this pace keeps up it will be brazils worst august in nine years for fires in the amazon. Thats our cnbc news update for this hour. Inc. Fra, appreciate that Frank Holland. Nvidia got a new price target today its a street high. Rahel solomon is with us with those details. Always good to see you. Bank of america, yes, raising its price target to 520 and reiterating a buy rating on nvidia while analysts do expect a slower quarter for the companys cloud growth they point to their huge market share in gaming chips versus rivals like amd they expect Strong Performance there to offset any cloud weakness noting that the strong gaming environment right now, plus the launch of sony and microsofts new consoles later this year, thats going to be huge, we also saw new data from the npd group which noted another record quarter for u. S. Spending on video games at more than 11 billion. So thats being driven on the hardware side with new console sales, along with more spending in game and through subscriptions which Companies Like acti vision and take two have noted in their earnings calls. You and i have talked about that on this very show. Nvidia up 90 year to date. Which tiffany knows well because she is the only one today who owns it. Tiff yeah, weve been in nvidia for quite some time, about six years, we bought it around 200, it did take a really small dip this morning but i think its now at about 435 we continue to like the story and were absolutely behind it. Rahel, one of the issues obviously is nvidia has so broadly outperformed most of the other chips and certainly the index as a whole this year. Certainly and broadly is a good way to put it compare nvidia up about 89 year to date to its competitors amd is up 76 , qualcomm up 20 , broadcom up 3 , intel down 18 when you compare it to the etf smh its up 20 . Yes, certainly dominating the chip space. For sure. Rahel, thank you. Weiss taiwan semi, ive given you many drops already, i guess i will have to give it to you again, tiffany owns taiwan semi as well. Actually, no we dont. Im sorry, that was my fault. Weiss, you go first. I didnt want to give you a chance to gloat too much, thats why then i moved on to tiffany, but i guess i owe it to you because i dont think that youve been on talking about it recently since i gave you all those props so you can take your victory lap right here well, i appreciate it this is a heads up and its a historic moment, but here is some selfdeprecating humor, im beginning to regret selling my nvidia at 88 took me a few years to have that regret taiwan semi is a huge company, huge operations in china and with apple theyre basically, you know, the outsource play and as i continue to say youre going to see the biggest launch of any apple product with the 5g phone, but Technology Overall is continuing to do well. So taiwan semi up about 30 or 35 since i bought it. I think it continues to go, i think its a very cheap stock here. Good stuff. We will take another break gold prices are rallying this year we will tackle that trade lieu etfs straight ahead. First lets give you a check of the s p sectors before we go to break, see whats going on today within the s p which is up a little less than two points, energy and industrials, materials, value, value, value, the cyclical trade is working today, outperforming a reminder as well, you can watch or listen to us live on the go on the bcppnymecn a ati were back after this. We love our new home. Theres so much space. We have a guestroom now. But, we have aunts. Youre slouching again, ted. Expired, expired. Expired. Thanks, aunt bonnie. Its a lot of house. I hope you can keep it clean. At least geico makes bundling our home and Car Insurance easy. Which helps us save a lot of money oh, teddy. Did you get my friend request . Uh, ill have to check. doorbell ringing aunt jonis here for bundling made easy, go to geico. Com. Hello . Find a stock basedtech. On your interests for bundling made easy, go to geico. Com. Or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Weve just been finding a way to keep on pushing. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Were back and bob pisani has our etf edge today hey, bob. Hello there, scott. Gold prices are pulling back from their record highs today as the dollar strengthens but the years bull run for gold is undeniable, up more than 30 gold etfs are following suit how much more is there left for gold at this point lets talk about it with bob lighten, yuan vanek. Gdx up 52 so far this year. You did a paper last week arguing gold could go from 1900 to 3,000. You mentioned gold as a deflation hedge. Why have you become so bullish on gold so suddenly . Well, basically i became really bullish last summer where gold broke out of its sixyear sort of sideways market and then the other technical confirmation happened when it went to all time highs a month or so do, went through the 1800 an ounce and then the 1921 level they have the fundamental support, very low Interest Rates from the fed, historically low rates and if you look at prior cycles we are not trying to make it up, we just said look at prior cycles and that in a low inflation environment gets you to 3400 an ounce, actually. You know, tom, the problem i have with the gold bugs is they tried to argue it both ways. They used to argue gold was a hedge against inflation and now theres arguments being made that gold is a hedge against deflation as well. Can you actually make both of those arguments . It seems like heads you win, tails you win with gold on those kinds of arguments well, youre right, bob, however, in this environment the moon and the stars seem to be aligning really well for gold when you talk about potential inflation were starting to see it at the grocery store, part of that is the connection between getting food into the stock market i mean, into the markets. The other thing which is really key and critical youre seeing a lot of real estate starting to up in value outside in suburb areas as people are moving out of the city. Those things are really key and critical as people are anticipating inflation one key thing about gold we dont spend enough time on is supply and demand where emerging Market Countries are buying gold to a great extent and there really isnt that much gold in the ground and its taking more and more money to get gold out of the ground, hence do you buy the metal itself or do you buy the miner . We can spend a lot of time talking about that. There are a lot of different ways you can slice and dice. The sixth largest etf in the united states, we will talk a lot about this catch our live online show at 1 00 p. M. Eastern time etf edge. Cnbc. Com. We will be joined by ben carlson to talk about what could be a record year for the etf business and whether you should get deeper into gold scott, back to you. Bob, appreciate that. Your questions answered straight ahead to reach our experts go to cnbc. Com halftime or tweet us. Back in 30 seconds lets answer some of your answers now. Joe, you get the first one today from charles in maryland marriott is up quite a bit, marylandbased company, whats your outlook so, scott, i purchased this on june 29th, ive got about a 13 gain im holding this stock, i believe it moves much higher and it will be on multiple expansions, trades about 16 times versus ten year average of 21. 5 a strong recovery in the hucks ri brand and specifically outside the u. S. Occupancy rates for china measure at 60 , one year ago they were at 70 this is an example of a quality type value name that i think you should be long. Steve weiss anybody buying the billioners . Looking to buy pulti group. My biggest position when you combine it all are the two home builder indexes, the xhb and the itb. You have two things going on that have never happened before which is a mass exodus from the cities into the suburbs and Interest Rates being historically low for mortgages so you can buy pulti, also the indices, any of them, its a great skrechlt investment. All right. Ibm, when is it going to show us something . Well, the earnings part wasnt all that bad, a lot better than folks existed. Is this the best tech company that you could ever buy, probably not, but it has an undemanding valuation, a 5 dividend yield its not going to take business entirely away from aws and azure but it certainly is going to be competitive and they have an intangible base of competitive knowledge that they can utilize for Larger Enterprises i think if you buy this stock here youre going to get some appreciation in it and while you wait you will get a nice dividend yield. Michael, sam in florida wants to know about rost stores. Sam, i own it, i have a small position in it, its one of my riskier positions, i think that management has done a good job through this pandemic, stores were closed, they cut back, they cut back and i think they made very good decisions, this is the low end consumer of course turning over inventory and new inventory all the time i think its going to make t i think its going to come through fine, they have done a lot of the right things so, yes, but this is not a blue chip. All right tiffany, for you, ken in south carolina, is there still upside with you will at thulta. There are only two options, sephora and ulta ulta tend to carry the more affordable products, i like that they have salons inside some of their stores, the stock is down 16 year to date i think it presents a good buying opportunity. Joe, i noticed you told iemg and youve been talking up the emerging markets why did you sell this . Iemg, scott, thats the emerging market equity, i kept my emerging market debt. If youre going to be allocating towards domestic cyclicals and the value plays where does the money come from . I took some of that money from selling iemg, i also sold donnell knows pizza, two areas that i sold out of i think the emerging market equity storgt might be challenged, longer term there is has been a paradigm shift. You sold dominoes, too. Yes, i did. Again, that is part of took a little bit out of what has been a growth story my choices really were best buy, nike or dominoes as it relates to consumer oriented businesses, i wanted to stay with nike and best buy, unfortunately i had to seldom knows to raise some capital to purchase some other things, doesnt mean it doesnt a quality company. Still dont like the pizza. The dollar has been rebou reboundi rebounding what that means for oil prices down the road. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Were back lets see the futures outlook now. The dollar is fighting off the green after getting hammered this year, growing uncertainty of the economic recovery certainly one of the culprits there. Lets bring in scott nations of nations indexes. The growing economy recovers as the dollar grows. Factory gains in europe are another point we can look at if the world is recovering, then u. S. Rates have likely bottomed, and if u. S. Rates have likely bottomed, then the dollar has likely bottomed. Scott, remember, we got long on the dollar index on thursday, worked out really well for us on friday i want to do that again because it has a long way to go. So in the dollar index futures, part of this september contract, as you can see there, 93. 25 is a little bit of a pullback a stop would be 92. 90. Target to the upside would be 94. 25, and scott, at those prices were risking 350 to make a thousand dollars, but the dollar has got a long way to go to the upside if rates have indeed bottomed here do you think that gold trades topped if the dollar is going to get stronger, then gold is going to have a real top headwind gold has made all sorts of sense because rates are low, the dollar has gotten creamed, but its come a long way, so you have to wonder if its not topped out over the short term if everything happens as you said, its going to happen for the dollar, that would be potentially negative for scott well doily fin final trades net this selenite grey is so pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. 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I love to say that we have survived the great depression. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Welcome back well do final trades in a minute weiss, what do you think about what scott nations and i were talking about . Do you think this is where we see gold top and value take off . I do think you see the dollar bottom, because everybody is so focused on it, and i think gold has just been that stage right trade that everybody has gone into so, yeah, in terms of value, look, i think value still has some legs. I would be so afraid of missing it i agree with all the things scott said hes thinking about it the right way. Transports are soaring today. Cramer is talking a lot about that tiffany, final trades. What do you got for me paypal. Theyre investing in instore Contactless Payments its up 83. 63 for the year. Good stuff. Good having you back with us as well michael farr, final trade. Medtronics, a ter rirific pipeline growing at top speed. Medtronic. Estee lauder, a growing business able to monetize the recovery in the growing consumer lstr, landstar systems into modal Transportation Logistics and increased commerce activity environment. Weiss, quickly, please. Skyworks. Its not a laggard but its about to break out again bill griffeth, its over to you in the exchange. Scott wapner, thank you so much im here for kelly evans at the exchange. Stocks have been mixed as we start the week as the president s tax stimulus action goes into effect here. But questions still remain over the limits and the legality of his actions on saturday. This as treasury secretary mnuchin says the white house does want to deal and is willing to make it this week if its fair plus