Started, last friday we had the talk of inflationary pressures in the jobs report had people worried including the sky. The market was down 666 and you started to think about a new environment that might include inflation Rising Interest Rates and we got the week ending up back to monday. Thats when we saw the word volatility really spike to the top of your word search and people not only had volatility but they were betting against it. Those bets became unwound in these comp located Financial Products that neil has talked about so much that were created after the crisis and i got ugly as those anti volatility bats were unwound. Wednesday the volatility, the upanddown was still there but the market was down by only 19 points on the dow at the of today. Yesterday was interesting. People on wall street said a lot of people lost money in the portfolio because none of their trades were wor working. We were down a 18 in 2008. We ended where we are will probably have our worst we can the dow since then but thats basically where the comparison stands. There were todays weather dow is down 7 and thats about what were down for the week. We could end up a little lower or slightly higher to be the worst week since 2016. All end with this, we are all in this together. This has gone global. Europe is down and this was asia overnight. China had their worst and a market in about a year. Talks of the valuation of their stock even people talking of cashing out before the Lunar New Year next week. Asia is down, europe is down, we are all down trying to figure out this new environment with rising Interest Rate. Many people who trade this market on a daytoday trading deck dont have a lot of expense with this and havent lived through it but their living through now. Down 7 for the week. Stuart thank you very much. The average bull market, remember this, the correction of almost 11 , with the average bull Market Correction about 13 and goes on for about four months. It can last 22 months. If it gets to 25 the world will end. No, im just point that out. Theres different ways of looking at the stats. Theres different ways of looking at the budget acquired with a temporary shutdown and reopen but if youre looking at that being a panic for the market, it was not. The idea that we had a twoyear extension to keep the government lights on only reinforced that the only way was done to increase spending by 300 billion. That just adds the deficit, blake is in the white house with how all of this is turning out. You have to give it too congress, they talked about needing more bipartisanship and thats exactly what happened in the Early Morning hours as republicans and democrats had to get this spending package across the finish line. There are also a lot of republicans in democrats who absolutely hate the thing. 82 democrats and 83 democrats who ended up voting against it. You can break down into three different buckets predict that the president and republic of leadership think this is great for military spending that they want and need and now they get it. On the other hand you got conservative saying there is a lot of runaway spending and thats why they didnt supported them and the democrats on the left side this had nothing to do to solve the daca situation so they were no votes as well. President trump summed it up in his latest week. Talks on nonmilitary lines will never come down when do not like more republican than 2018 and beyond. This bill is a victory for military but much waste in order to get democrat votes. Fortunately daca not included in the bill, negotiations will start now. You heard him say there was some waste. He said in a statement, at some Point Washington has to get serious about stopping this before its too late. Im very disappointed in the results but i maintain my commitment to fighting for the kind of fiscal responsibility that can sustain our country to come in and fighting for the day we will do better. On the dac apron nancy posey on the house floor earlier this morning. Let the chips fall where they may but let us have a chance to relay the fear in the hearts of these dreamers and their families. The government is funded through march 23 in the spending caps are raised in the debt ceiling is pushed off another for 13 months. A lot of spending issues off the table but over the next three and half weeks, march 5 is the deadline for daca to get an immigration deal. This will consume washington. You heard trump say that there is nothing to do with securing the southern border he would be for another government shutdown. Incredible. Thank you very much fred couple other trends we are following, the role of the individual indexer. You open that your she and the first one to get clobbered. 36billion in net outflow from equity flood funds on the part of individuals. Two weeks ago they were pit pouring a hundred billion dollars into the market. Also gold is still separate second straight flat or declining week. Mortgage rates are at a 14 month high. There are a lot of crosscurrents and you dont want to over read any one of those developments. They are just trendsetters. Ive got michael here then jillian. Michael when you step back and advise clients, what you tell them . Some get frantic, some say dont care about how this will affect my taxes, i want out now. You tell them to take a deep breath. You see the swings in a market where we see hundred. Movements by the minute, nobody can make money unless your professional trader sitting at home youre not going to make money trading this market. Stick with your plan. However if the last week has caused you anxiety and youre not sleeping, you have to much exposure. You probably need to reallocate your assets. Stuart but youd be reallocating out lower prices so youd be taking a hit. The market will go up but it will also go down. Stuart so were not done in that part of it. Its tough to call where the bottom comes in. The point were making as you might have too much risk in your portfolio if you cant handle this. When i look at the source i was advising you i would say neil we have a longerterm time rise in the market will sell off and rally and we will try to jump in front of it. As you saw the inflows comment and record outflows. That is exactly what not to do. Stay the course. Stuart it is hard not to get too wonky when you see people want to cash out, they take a big cash it because msa brutally been beaten down the pay taxes on those gains which i imagine in a lot of cases will still equips whatever they are saving getting out of a falling stock. Sometimes panic isnt the answer. Its so funny. For the past year we had fear of missing out. When you get in because the market keeps getting higher and then that became ono. People are saying now what would happen. We are in a correction right now, alas for four months and will come down 13 . Can we survived that, yes. Arguably stocks are still overbought. Youre also turning about Mortgage Rates and Interest Rates and every time ago to 2. 9 or three we get worried but Mortgage Rates have picked up and we havent seen applications fall to the difference between now and the financial crisis, we are more regulated. Its not that craziness anymore. You know jillian, i was thinking about your generation because youre always whining. [laughter] im kidding. Just when it looks like some your colleagues were getting into the market and getting excited about it, a whammy like this happens and now a lot of you dont remember when rates were a lot higher but weve all been in the sort of weird world word 0 overnight and federal fundraising to present rates were the norm and now that has changed. How does that affect your psyche. Sure. Im not that phase. I think weve grown up in a quantitative of easy money and not have to and at some point. This is unwinding. We are seeing a return to normal volatility and risk. Does your generation, do they understand that. I think we are mistrustful, for sure. There is mistrust in wall street and enormous mistrust of government. I think thats one of the things driving attentive people to be interested in stuff like that claim. The biggest question is there pretty good. We are seeing gdp growth but i would just say to my generation, the last ten years havent been a supernormal financial situation. Stuart its interesting, from our perspective that you could look at it and say well i can remember our first target was 13 and we thought we were financial geniuses, but again, a much different environment. Im wondering, now that that we necessarily get back to that but any uptick since we dont know what its going is scaring investors. For sure. Everyone who is complaining that things. [inaudible] need to go back to normal. [inaudible] i think you are seeing both and i think thats the dichotomy going on. Will the market do it ahead of the federal role the fed get behind and have to jump 50 basis points and spook the market. In the bigger picture, everyone realizes we need rates to be a more normal level. Stuart what is normal. Going back over history, its run the four or five range. It spikes up to seven and eight and higher. So kind of triple where we are now. Stages. Zero Interest Rate was scary and that was in a weight on the difference between now and oh eight, you didnt know if the Financial System and trading threat or if the banks would be around the next day. This is very different. I think this is a normal correction. We are not a fair market hit yet. Yet. I dont have a crystal ball. At the end of this month, he testified before congress and we can get into his brain a little bit and the february job report, its going so fast. Stuart i think the news will continue to be good but i dont know if the market is embracing it that way. Anytime the feds push riskier assets, there will be a couple assets left naked on the beach. [laughter] i like that analogy. Of course we dont know if its just a beached well but it will be on the beach. Thank you very much. The dow is down 341 points. What is bothering a lot of folks is the fact that even as high as the ten year note goes, people are diving into it as the market falls. Where are they going . After this. You are against us, why . Because it spends too much money and borrows too much money. We will bring back obama era deficits. This is reckless spending that is out of control. The thing is we think when democrats are in charge that the republicans are conservative party. The problem is theres no conservative party. Someone needs to stand up and say you should spend what comes in. That used to be what it meant to be conservative, but a lot of socalled conservatives lose their mine once it becomes a partisan thing. They must govern and they government given massive new debt and i dont think thats good for the country. It threatens our security and the internal foundation of the country is threatened by so large a debt. He put his performance where his mouth wasnt tried to stop this from happening. Others came to the floor the budget and it was passed in the house now with this guy. This Committee Member was that a gas instead and with karen abou concerned about all the spending to make it possible. Now we have it and for two years we will be spending a lot more. Republicans are kind of lost identity on this, havent they. Youre absolutely right. There are many good republicans who voted for this bill that i just wasnt one of them because i think its offensive to the military to lash their safety in their fate to Government Spending that should not be justified given our current deposition. Im really worried about is that were robbing the country of the economic value of tax cuts when we dont cut spending. When you cut taxes and you dramatically increase spending , you are just sending the bill to the next generation. Government has to go out and spend a trillion dollars in treasury bonds. Thats a trillion dollars we are taking out of the game. Will instead be used to feed the beast of government and thats why i voted no. Why did republicans lead the way. Why didnt they say we will touch, when i can go out. Was it the memory of that ordeal that we were remember correctly. If youre worried enough about the majority they just didnt want to add to them. Republicans wanted to fund our troops, democrats wanted to fund the wasteful domestic spending so we compromised. Thats ridiculous but im one of the youngest members of congress and i think its shameful that we would engage in generational theft and all of Human History because we dont have the guts to make decisions and cut spending. Do think they lost it which means ill go dark in november . That remains to be seen we have a compelling message regarding Economic Growth and i hope the spending doesnt want. Seizing tax cuts will overcome the apparent hypocrisy of parties who talk big on containing spending but is now spent on this issue. We better hope so. I didnt vote for that spending but i think at the end of the day, people will vote based on whether they believe their personal Economic Conditions are better or worse. If you judge us today people are doing better than the obama economy. Thank you very much. You hear a lot of discussion back and forth and we look at these markets and volatility has returned. A lot of you email and say what does it mean, the technical definition with market swings of 2 or more. Weve had very few of them throughout the entire bull market. For example, if you were to look at whats going on right now, this represents only the fourth time weve seen a 10 correction of any magnitude. Only the fourth time. This used to be commonplace. Thats one definition of volatility. The others the more common one where people just freak out. Thats the emotional definition of volatility. You forget. Know that chevy silverados are the most dependable, longest lasting fullsize pickups on the road. Which means that ford f150s are not. giggles which truck would you pick . The chevy. There you go. Boom. That was obvious. Plus it looks cooler. No doubt about it. Now they know what to get me. sighs i hate missing out missing out after hours. Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. Can you control the volatility in the market . This is a look at the market volatility in the fear index. People trade off of it but there have been creations to arbitrage against it. Its called shortterm futures , another velocity share said shortterm exchanges traded and does the same thing to trade both ways. They can be part of an algorithm mix that can speed up events in the markets. In other words, put them on steroids and hyper speed. These emotionless trigger point kick in and all is an you get Something Like a flash crash which has been happening of late or this whole process. Remember weve gone from a healthy strong bull market to this 10 plus correction in a little more than six trading days. Its very unusual. Is this the case of letting them do their own thing and not pleasing them appropriate enough . The next guest is concerned about that and theyre very much concerned to get rid of some regulations. Commissioner, very good to have you. We dont know what role some of these trading tools, whatever you want to call them played, we do know they were so crazy their credit disbanded them on a number of institutions. As high as 90 a share and plummeted and they failed that their key mission to address the key volatility. Is that the kind of stuff that concerns you. Absolutely. When you think about it, when youre at a casino and youve made some money on the day and youre walking out of the casino and you see that big last slot machine that is going to pay you a Million Dollars but across a 20dollar bill, its a bizarre bad but ill tell you, wall street has developed more bizarre thats than that and its the things youre talking about, not only can they be based upon the fear index, but they can be two or three times the payout. Its compounded every day. Its not like its an index on a regular Exchange Traded fund that youre just trying to mimic the s p or mimic oil prices or something. These can be really dangerous so i do think there needs to be some regulation of them more than they have now, more than just the adequate disclosure that is for the rest of the security equities so i hope they move forward on that. I think they get hair on their back when they hear regulation but i would even go for prove that this vehicle does what it says, have you done a computer test that when theres a selloff in the market that this mechanism which will contain thats a lot for those who buy it is going to do the job because in most meltdowns ive seen in the past whether its the 87 expands where folio and insurance was supposed to shield you or even after the meltdown in 2008, 2009 when mortgage relatives you could package all of those together and it would be a safeway to shield yourself from the crab that they were, im just wondering, whether we ever learn that you cant do that. It just doesnt work. I think youre right. Your analogies are really apropos. Forgive my language. Thats what it was. If you go back and look at credit default swaps that you are mentioning prior to the recession, they are actually a really good product and to make the analogy just like Exchange Traded funds are good for investors but then they take the swaps to make sliced and diced that and they made him toxic and no one knew what the valuation was and it was a leading cause of the recession. Way to package stuff in an unappealing way like you are stepping into a perfume bottle. Think its a very apt analogy for whats happening now in this family of Exchange Traded products and the ets i dont have a problem with, its these two and three times the leverage and also Exchange Traded notes and then these notes were taken the opposite side of something. Its crazy. Every place, i get pushback a lot of times, they are sophisticated investors and we know their gambling and everything, but even at disney world for crying out loud you have to be so tall to ride. Theres so many regulations that people are grounding in them. You just want to add another and its really good point because regulators shouldnt be so stuck in the mud on thinking everything theyve done in the past or the predecessor is golden. It needs to be updated from markets and this is a really good time for the sec, even in this environment to try to pull back on some of the. [inaudible] is not a left or right thing for me. Im a free market guy as much as the next guy, but if you cant explain the benefit of an Investment Strategy and even the brokerage houses selling it, they are pretty good at what they do. They are very good. There are two key points. One there should be more disclosures for investors, put it in big bold skull and cross bones may be an meant to, like youre suggesting, what is the Market Impact . Is there contagion . Back in 2014, larry said look, this could blow up the industry and nothings really been done on it. I think it should be a learning experience the last six days should be a learning experience and i though hope they look at it and not to leave you with this but i think theres been some shenanigans and some of these products and i wouldnt be surprised neil of the fcc is looking at this from an enforcement perspective on a couple product. Well they should be because of something dropped from 90 to four dollars, thats weird. We will watch it closely. Im so glad you came to step back on this perspective. To paraphrase is that its an ageold world. If it sounds too good to be crude true, it is. It definitely is. Take a look. More after this. Shes nationally recognized for her compassion and care. He spent decades fighting to give families a second chance. But to help others, they first had to protect themselves. I have afib. Even for a nurse, its complicated. And it puts me at higher risk of stroke. That would be devastating. I had to learn all i could to help protect myself. Once i got the facts, my doctor and i chose xarelto®. Xarelto®. To help keep me protected. Oncedaily xarelto®, a latestgeneration blood thinner. Significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. It has similar effectiveness to warfarin. Xarelto® works differently. Warfarin interferes with at least 6 bloodclotting factors. Xarelto® is selective, targeting just one critical factor interacting with less of your bodys natural bloodclotting function. For afib patients wellmanaged on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. Dont stop taking xarelto® without talking to your doctor, as this may increase risk of stroke. While taking, you may bruise more easily, or take longer for bleeding to stop. It may increase your risk of bleeding if you take certain medicines. Xarelto® can cause serious, and in rare cases, fatal bleeding. Get help right away for unexpected bleeding, unusual bruising, or tingling. If youve had spinal anesthesia, watch for back pain or any nerve or musclerelated signs or symptoms. Do not take xarelto® if you have an artificial heart valve or abnormal bleeding. Tell your doctor before all planned medical or dental procedures. And before starting xarelto®about any conditions, such as kidney, liver, or bleeding problems. Its important to learn all you can. To help protect yourself from a stroke. Talk to your doctor about xarelto®. Theres more to know™. Hi, im the internet you knoarmless bowling. Lt . Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Each day our planet awakens but with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Who is going to absorb the 1. 8 chilean of new debt that will be flooding into the bond market. The Interest Rate is heading toward 3 or more. That will totally undermine that from the fantastic stock market bubble we have. Trump is walking into a miserable trap that he is going to pay for delivery and the republicans. Tonight at this date of the union, the president did do a little bit of crowing about everything that happened on his watch including the soaring market spread the foreman budget director and trump author with us now. Everything you said would enfold has begun to in rapid time. Are you surprised by the rapid time part of it. Yes, its unfortunate that it happened. Its occurring rapidly but its getting worse. Yesterday will go down as the night of fiscal infamy. You mean this to your budget deal. Yes, they have open the floodgates to a fiscal calamity that cant be stopped. There were three Things Holding back the tide. Number one the sikh sequester caps, gone at 150 billion overnight to defense and nondefense that we dont need that we can afford. Will never get those back. Two, the debt ceiling. Gone until march 2019, they can borrow whatever they want. It will be 22 trillion National Debt before they even begin to pick up the pieces. Number three, the Freedom Caucus in the house with holding back their tide, they took them out, they shot them. This is the battle of little big horn. The Freedom Caucus wasnt a fan of this, but they were just outgunned and outmanned. Now what. They were betrayed by speaker ryan who will go down as a coward, a hypocrite and a dilettante. When that bill came over from the senate, the typical swamp deal from mcconnell whos been there for 54 years. Schumer. The president supported us as well. Schumer who has been there 43 years, when it came over he shouldve said no dice, we are not going to blow another 400 billion on top of the trillion dollar National Debt we already have because of the tax cut. Instead he said im taking it to the floor which meant the Freedom Caucus was obliterated, the government is now being run by pelosi, by schumer, by trump, by the industrial complex. So youre not believing this avoids constant continuing resolutions and limping around, you would rather that in the. Of course. Its a horrible rationalization. When you take away everything thats holding back the tide, they put fiscal policy on holiday. Nothing will happen till next march. They wont even bother with the budget resolution. Heres what will happen. They will borrow one point to trillion in fiscal 2019 which starts in october. This is the tenth year of recovery and weve never been out of our. You know, the markets were tanking prior to this sham of a budget deal or whatever you want to call it so whos leading home, whats leading what . In the short run its hard to tell the push and pull but what we are coming out is that the fed has resolutely shut down the printing press, it will be selling its debt. So whats the surprising any of that. What set it off. The market is basically run by speculators and rubble machine to trade our tower. And thats making this were. It makes it worse and it takes a large size to buy for between the eyes before the mules of this market wake up. The 10 drop that weve seen historically is one of the fastest on record because of these boutique exotic investments, whatever you call these algorithms. Do you worry that gets ahead of itself and actually accelerates all the stuff to the point where we are in a bear market within a matter of days. You just heard the beginning of this thing that blew up, it went back down 90 . Thats just the tip of the iceberg when you have nine years running. When you have a bernanke, you unleash the speculative juices like you can imagine. To think it will be back in that business be back now. Thats the reality we havent appreciated yet. Last time in 208 they were at a 6 Interest Rate. Back in 2000 they went down to one. Right now they are stuck on this zero bound practically, they have the surrenders massive Balance Sheet that theyre trying to shrink and when we hit the wall and we will because Interest Rates will soar. What does sewer mean to you. It will go to three or 4 on the tenure which i know you dont think its that much because its relative to where the market has been for several years. The money that goes to that the with the expense of people leaving stock. Who knows where well go. Part of it will disappear. There is a huge amount of leverage and margin speculation on the economy. When asset prices start to go down, margin gets liquidated. It doesnt go into some other. What you think that is contributing to purchase when you think were done were up 200 points. Our down 400 points. Was still, the residual impulse to buy the dip is still there. If you look at the stock chart, its going up from 670 in march and waited 2680. Or 2850. Thats where finally ended up. You think its just a matter of time before we get down 20 . Easily. A mental what. Then what you see happening with this particular market. When the market really starts to fold, it will ricochet into the real economy, confidence will be lost and those guys just got the gift of a corporate rate of 21 ml start unloading inventory and excess labor, doing anything that they can. Even though their earnings look good, their forecast and guide them for good, you think its shortlived. Yes, everyone in early 208 said the stock market will end the year 1700 and it ended at 900 and they all said earnings will keep growing. The market never. Your right, every time the argument is that the fundamentals are sound. Youre arguing they are not sound. The rotten. When you are borrowing 6 of gdp in attempt your recovery, not the bottom, not the first or second year but the tenth year for the second year, when you have a demographic timebomb heading the 20s, 30 Million People are going to retire. When you have. Is that the hitting coin or the continuation. And saying with that coming, the idea that he would run a deficit this big at the 1h hour in this cycle is a really crazy. Irresponsible beyond belief and will sink us. Do we blame the president on down. Absolutely. He has no clue. He has no clue whatsoever but i would blame, in the end, paul ryan for betraying what was left of the fiscal conservative opposition. They are gone. Right now control has switched to the swamp creatures. To mcconnells and the democrats. You and i talked in the past, backup spending, they can agree to cut but at least these were automatic and they were never instituted. But neil, they did. They actually help things down to some substantial degree. They wiggled around them. Six out of seven congresses they wiggled around. But not much. Now they are going up 150 billion in one fell swoop. Year. I want to tell you, you are heading for a guaranteed 2 trillion. Year deficit by 2027 if we dont have a recession. If you think were going to go 219 months without a recession , its never happened in Human History. You lay a recession on that, you lay a political crisis on that, you lay down grades of our credit substantially which have already been announced and youve got a foot fiscal calamity. Its not going to stop and last night was kind of the falcon point. It was a night of fiscal infamy. On that happy note, david stockman, you can accept or reject what he is saying, we always like to have that view out, you can chew on it. If you buy what the polls are saying just sort of ride through it, if you buy what david is saying you might as will just kill yourself now. Not really, but it does make life seem a little questionable. We will have more after the spread were downr 384 points. And 6 is greater than 1. Flonase sensimist. All right. If youre still with me after hearing the reports, they said this is just the t up for far worse to come, lets get to charlie. What you think. I want to agree with him, but im starting to think this is going to be longer and more protracted and actually do think Corporate Tax cuts will work eventually, theres a debate on whether they do, but they dont work, again this is what david was saying, they dont work, well get much of a bounce of gdp, we can pay for the deficit, ever, treasury will be raising, basically will be selling more paper, more debt, rates will rise and thats not good for stocks or the economy. I just want to show since were trying to dissect what happened here, we could talk about etfs and program trading, put up a chart of Td Ameritrade. This is key. Aside from now, the discount broker did very well this year. Look how well it did. Okay. This is the past year. This is basically a gauge on how average people are getting into the stock market. Theyre all combining index funds through this and theyre buying stocks, what was happening over the last year. If you look at the last year really went up the last six months or so. Who was out there pumping this market the last six months . I mean maybe you can blame jim cramer, but who was touting this market, the president of the United States im telling you that is one of the untold stories. President trump went out there and just about every day, we would listen to him and he would say the market is great, stockmarkets great, that speaks directly to the Retail Investor. The Retail Investor believed in the president. And now the Retail Investor is getting a dose of how the president really doesnt understand how markets work because even if you believe the best thing about his tax cuts, which you and i like a lot of, im there about 65, 70 , markets, theres always a leg between when the Economic Growth from tax cuts occur and the tax cuts go into play. So again, if you look at gdp when it started to spike, it was like a year end half. And it cost them seats in the midterm. Right so, what im saying is first off, politically it was foolish of him to tell the market, but he did a disservice to a lot of investors by constantly saying , but that chart shows people were getting in, and by the way, thats only one chart. I can get you a lot of other charts. Companies were really getting in the bars and they were following it themselves. But companies were standing by, listen, you didnt have to, who was the biggest stock market cheerleader over the last year or a man. See your crediting the president with a lot of the activity on the way out but now its happening on the way down. Im saying the president did not. I say good things too, but do you think as david said this will be a promise that will reverse all those gains and then some or the tax cuts went out. I like tax cuts, david doesnt, we differ philosophically, but some of this tax plan is ridiculous, but im telling you the president deserves not credit but blame for this. On that happy note okay, its all out there. You can weigh it and debate it. The dow is down so we actually. The loss, you go. Betes . Yes i do. True or false. Type 2 diabetes more than doubles your chance of dying from a cardiovascular event, like a heart attack or a stroke. That cant be true, can it . Actually, it is true. in fact, cardiovascular disease is the 1 cause of death for adults with type 2 diabetes and Heart Disease. But there is good news. Jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. Jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and Heart Disease and lower your a1c. Thats good to know. Jardiance can cause serious side effects including dehydration. This may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. Ketoacidosis is a serious side effect that may be fatal. Symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. Stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. Symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. Do not take jardiance if you are on dialysis or have severe kidney problems. Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. Isnt it time to talk to your doctor about jardiance . Absolutely. Ask your doctor about jardiance. And get to the heart of what matters. . Neil all right, we are going to close out a wild week wildly because we have already had, what is it, ralph . Better than 600point swing. Maybe 700. Anyway, jeff flock at the cme with the latest on that volatility. Man, oh, man. I tell you. Reporter you know, im in front of the european Interest Rate futures, the euro dollar futures options, actually. A lot of volatility in the pit, a lot of volume in the pit. And speaking of volatility, you said, it its been a crazy week but look at the vix now over the course of the week. That is, as you pointed out, what did you call it . The freakout gauge . I think thats what you call the emotional definition of volatility, and a lot of freaking out. Im just looking at it right now in realtime and the vix is up again, thats not a great sign. You know, its funny, your discussion earlier about the importance of the funds that trade around the vix, you cant trade the vix itself, traders have been talking about that very thing and pointing me to a quote to one of the guys that invented the vix many years ago and heres his quote. I dont know who these products exist, except somebody who wants to gamble . There you go. Oil, not a good gamble, weve got a huge move. Again, 2 down on the session. Below 60 for the first time in this year. We were below 5 for just a short time about five or six minutes ago, this is like six straight sessions for oil down. Gold, which youd think people would be piling into gold, they havent. As we discussed a couple of reasons may be people are not as freaked out about all of this as we sometimes are here. Also maybe some people selling gold to cover shorts in the stock market to cover losses there and leave you with the bonds and, of course, thats the big fear about this whole thing, and by the way, you know over there, thats the bond pits, the treasuries overall from the direction they pointed you. Bond yields are rising. I dont know, im about ready to retire, neil, and i would rather have my money in something i can go to sleep at night if i had a good Interest Rate on something i could make some money on and sleep, why would you jump into the stock market if that money goes away at my age. I may not get it back. Neil but you hit on something very profound and see it in downdraft, the emergence or discovery of the exotic vehicles, whether its all the vix derivatives and alternatives that can undo whatever effect youre feeling or leverage against the vix. Its no different than portfolio insurance in 87 or buying mortgagebacked derivatives and thinking you are investing in a pile of crap. We always do this and you cant shield yourself from Market Forces. Reporter i got to be honest with you, neil. I read extensively about the vix, i think im a business reporter. Im not 100 sure i understand the etfs around the vix, im not sure how its computed, if you dont understand something, Warren Buffett you want to talk to, you should not be scareed. What is the line, if you cant explain it, dont buy it at all. Jeff flock, very, very wise man, common sense kind of a guy. We are going to the white house very shortly. Comments on the president in the oval office, i do not believe he will be addressing whats happening in the markets. More to the point, the controversy over rob porter and who knew what about allegations of abuse of former exwives. But that will no doubt be coming up here at a time when the dow is now accelerating on the downside in and out of 300point drops, that will be one of the worst weeks in the market since october 2008. Now to the white house and President Trump. Thank you all very much. I appreciate it. Thank you, everybody. Thank you so much. Thanks, everyone. We wish him well. He worked very hard. I found out about it recently and i was surprised by it. But we certainly wish him well, its obviously a tough time for him. He did a very good job when he was in the white house, and we hope he has a wonderful career and hopefully he will have a great career ahead of him, but it was very sad when we heard about it, is certainly hes also very sad. Now he also, as you probably know, he says hes innocent, and i think you have to remember that. He said very strongly yesterday that hes innocent. So youll have to talk to him about that, but we absolutely wish him well. Did a very good job while he was at the white house. Thank you very much, everybody. Thank you. Thanks, everybody. Thank you very much. Neil all right, in case you were expecting anything else on the president. Youre not going to hear it. Talking about rob porter and when the allegations came to light. To chief of staff john kelly who knew about it some time ago, were getting reports the chief of staff isnt going anywhere but rob porter has already left. Back to the crazy market right now, and sometimes its actually very instructive. Thats why i love it when liz claman goes to the floor of the New York Stock Exchange because that location has changed mightily over the year, certainly nothing like the crowds we can remember, liz, in prior years, for example, after the 87 crash or going back to 1929, you know, the meltdown in 2008. But with each successive event, fewer and fewer people, you know . Well, look behind me. You could cut behind me. There are very few people compared to when you and i used to come down here, even back in 2005. I was talking to a trader who said when he first started in 2005. There were 5,000 clerks and traders and brokers who were streaming around. They had the garage over here, the other room back here, this is all closed off, and theyve kind of pushed them in here, and youve seen this diminishing of numbers and as that has happened, its almost superimposed over increase lately of the days, not all the time, because weve had a year of the market moving up, correct . Since election day, 99 dow record closes. But looking as you stretch it out through 2008 and back to 1987, the fewer the people, when those days happen, neil. They get more dramatic and get more volatile. Look at these pictures on the screen of how many people used to be here, and all you have to do is see the original movie wall street, and what do you see . You see the seams. They dont look like that. Neil wall to wall, from 1987 and show a couple of other here. Much more crowded in 1929. That system where prices were determined, now all of this is so computerized, its not that you dont need the individuals, but you certainly dont need as many, right . You need the individual humans, and go back to the flash crash the socalled fat finger trade or whatever they figured out about what caused it. If youre Procter Gamble where, that stock fell precipitously for, you know, 38 seconds and then bounced back up, youre the ceo, youre going to want to come here and grab one of these guys and say i need you to make sure, as a human, a thinking, breathing human that you can press buttons and fix the situation knowing it was a sheer technological blip. These specialists and traders matter, and they are needed because computers, they dont have brains, and they dont have emotion, they also dont have the ability to see different shades of gray. Neil you are right about that. All right, liz, thank you very, very much. Interesting walk down history. She is exactly right. Weve been able to get rid of downdrafts in the market whether its a populated floor of the nyse or not, but it is interesting that fewer and fewer individuals populate that floor right now, and its been left in the hands of very advanced computers, talking about open the pod bay door, 2001 space odyssey computers, when it gets crazy, thats when i get worried. Smart trade profounder d. R. Martin. And joe durand and foxnews. Com columnist liz peek. Market downdrafts happen when there are fancy schmancy computers or not. Im wondering with the computers and incredible algorithms, explained by mathematicians who are so scary smart, i dont understand how we start the conversation, but you can trade and base whatever youre going to execute in a matter of seconds, emotionless, and i dont know whether that has created this, but i certainly believe it is compounded this, what do you think . I think thats absolutely true. In fact, one of the big banks sent around a memo monday night saying basically the selloff was driven by funds programs kickin. My theory is after a year of almost no volatility and extended period of low volatility and rising markets, the algorithms that basically control that trading were influenced by that. In other words, theyve become used to that low volatility. So when something sparks out of the predicted range, then have you this massive selloff. That is not to dismiss the fact weve had a real change in sentiment. We had low Interest Rates. Low growth moving to higher Interest Rates, high growth. Thats like a tectonic plate shift how the markets look valuations and where people want to put money. I think there is a fundamental change taking place but exacerbated by the programs. Neil in other words, seeing this, joe, in sort of hypertime, and that this might be more the rule of thumb for markets going down or up in the future. What do you think . Well, the way we look tat is really three participants that make the markets do what they do. At the core of the fundamental longterm investors, and they typically are buy and hold, and unless something changes on the fundamentals, they stay invested. Right outside of them are the tactical momentumbased investors, and then on the outer ring are the people who provide liquidity, the quants, they run on trading in and out and close the books every day. They provide liquidity and overwhelming the market. What i see thats very insightful here is the s. P. Y. Had hundreds of millions of dollars move out but almost no trades out of Vanguard Index or the broader indexes that the Retail Investor owns. Neil thats interesting. And theyre both essentially the same thing. And yet what you notice is the upflows from the spy used by institutions and that tells me thats a lot of noise, but the fundamentals, while there is concern about Interest Rates, were frustrated when growing the deficit even more. That hasnt changed. The fundamentals are very good. Neil i didnt realize a very important distinction there. D. R. , do you buy that . That the fundamentals are sound ultimately and i dont want to misquote but that will win the day . I believe that joes spoton, and you know, connell and you did such an amazing job at the top of the show explaining this volatility change. These funds that had grown over the past year, the socalled inverse volatility trade essentially saying the markets going to be quiet trade. It unwound in an amazing and explosives fashion. There wasnt that much money in the big markets but enough money to trigger the selloffs early in the week. I think that were just dealing with the aftermath of that, and the derisking, people taking risk out of portfolio in this, neil, and its the problem everyone is so scared because weve been walking across the plains of kansas and see the tiniest little hill, and it looks huge like were going down into the abyss, were going down a little bit compared to whats going on. I think joe is spoton. Fundamentals have not changed so were looking for a bottom here. Looking for a place to put more money to work. Neil guys iapologize for all the breaking news. Thank you very, very much. To all of their point. The dow down about 366 points right now. Unless there is a dramatic turnaround, the worst week in the markets since october 2008. The week of the famous meltdown, the meltdown that had john mccain grimacing that his president ial quest was over. Turns out that was a big contributor for it. That was then, big question now is it now . After this. Successful people have one thing in common. They read more. How do they find the time . With audible. Audible has the Worlds Largest selection of audiobooks. For just 14. 95 a month. You get a credit good for any audiobook. And you can roll your credits to the next month if you dont use them. Audible members get free no hassle exchanges. And use the mobile app to listen anytime, anywhere. Start a 30day trial and your first audiobook is free. Listening, is the new reading. Text audio22 to five hundred five hundred to start listening today. Going to be really soon. Thank you very much. Going to release a letter soon. Thank you. Thank you. Thank you very much, everybody. Neil all right, that was from this white house a few minutes ago, i think they were referring to the democratic memo that will be released soon, the president says. Now that was a bit of a political grenade for republicans because it might have to require some things being redacted. Republicans are saying it was a setup that that would be required that democrats knew Something Like that would happen. No mention of that just that it will be released soon, it could be today, tomorrow, it could be monday. I have no idea. Anyway, im happy to have this next guy with us. Wall street Journal Editorial Board member dan heninger. The letter and all that notwithstanding, do you think this president is handling this market selloff correctly . The read from the white house has been fundamentals are sound, we hear that from white houses every time there is Something Like, and by and large the fundamentals are sound but other factors take over. What do you think . I dont think hes handled it particularly well. Thinks the stock market should go up all the time, and remember, neil, as you know, donald trump is a low Interest Rate guy, and the fact is that because of the Federal Reserves quantitative easing, Central Banks around the world, suppressed Interest Rates for eight straight years, the greatest Monetary Policy experiment in the history of world, and to his credit, trump becomes president , all the deregulation, they pass the tax cut and the real economy seems to just explode as it has been. Weve had two events, the suppression of Interest Rates and real economy for eight years and now the real economy responding, and the market and that economy are starting to get trying to get themselves into alignment, and its obviously a very rocky road. I think the president would be better off if he said, look, you went through eight years of low growth under barack obama. I released the economy, its going to be rocky going forward. The markets eventually will settle but not complain about markets going down. Neil my big concern was that he could have taken cues from either Ronald Reagan or bill clinton, president s who would focus on job growth or the pickup on economic activity, companies expanding, et cetera, which has been happening to this president recently. That is something he could seize on and the markets be ancillary benefit if theyre dwelling your way, ultimately theyre not. The fundamentals as people have been seeing on fox the last two days, the fundamentals are sound, the economy is going undoubtedly continue to grow. Neil hes saying they arent. The stock outlier. I think the fundamentals are sound right now, and that, you know, the markets going to look for a bottom but not heading to a bottomless abyss. Neil you know what i wonder, dan, and help me with this, this market turbulence could affect the pay it forward aspect of the Corporate Tax cuts. Companies that were predisposed to follow others and beef up employees, you know, retirement contributions, et cetera, might be less disposed to doing so because they dont know where things are going, this in a way could affect that. I think that the margin might affect it. Pretty clearly whats going on here the fear because of the growth in the real economy like last friday we had the jobs report that showed wage growth. Neil it started it all. Started it all. Started it all. And theyre looking back over the eight years of low Interest Rates, below 1 . The possibility now that Interest Rates could rise, the fed announced three rate increases this year, wondering whether they will be higher than what the fed is predicting and how is that going to affect Investment Decisions right now. And if the margins, sure, some corporations say lets wait and see what the Interest Rate environment is before we make those commitments, but i think fundamentally youre going to see the growth path continue to go up. Neil you know a lot of people are going back and forth on wall streets fear of the unknown. Its one thing to say, all right, we could rationalize Interest Rates, but have to start rising, in an environment like this or any environment, kept artificially flat for years, as you said, but when it starts happening, we have a different disposition, do you think, and reporting youve done and talked, to is there a sense were overdoing this . Is there a sense that, yes, well have an uptick in rates, yes, the Federal Reserve might increase more than three times. Acre the europeans might do the same but not going to be double digit rates, not going to be jimmy carter or any of that, or is that not such a sure thing . I think what youre looking at now, talking about wall street, bankers, corporations, making these decisions, the markets have become extremely sophisticated, obviously. And i think the people running Corporate Finance offices are also sophisticated. Theyre able to handle this. Ive been struck, neil, the last week, youve had all of this volatility, all of this trading, it is by and large gone very smoothly. Sec chairman clayton said do you think there is anything here that you should intervene . No, there is no reason for the sec to get involved. Markets are absorbing this. Its good. Markets drive on information and theres a lot of information coming into them and to the private sect sxoir think theyre going to process it here over the next month or so, and once we get past this extraordinary volatility, it will settle down into kind of a normal process forward. Neil all right, from your mouth. Lets hope. Neil dan heninger, thank you very, very much. The dow down 384 points here. Trying to find out where the money is going, wasnt going into platinum and copper, certainly not in gold, certainly not in oil. Where the heck is it going . After this. Today, innovation in the finger lakes is helping build the new new york. Once home to the worlds image center, new york state is now a leader in optics, photonics and imaging. Fueled by strong university partnerships, providing the worlds best talent. And supported with Workforce Development to create even more opportunities. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, snap achoo snap achoo achoo snap snap achoo achoo feel a cold coming on . Zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45 . Shorten your cold with a snap, with zicam. Reporter welcome back to cavuto coasttocoast. Amazon moving into the shipping business. But right now were learning more about the Pilot Program that were working on. The stock is down 4. 9 , and talk of the shipping business, shipping with amazon, where theyre going to be working with Third Party Companies is weighing on the other delivery services. You can see fedex down 4. 9 . Ups down 4. 5 , and United States postal service, not publicly traded may be under pressure as well. Citigroup taking the other side of the note here, saying amazon never could compete with these big guys such as fedex and ups, in order for the Ecommerce Company to compete, they would need enough trucks and hire way more drivers in order to be a stiff competitor in this business, neil . Neil thank you very much, nicole. Lets take a look here. We are at session lows or close to it, all 30 dow stocks, save nike because people are trying to run away from the market. But bottom line, it is about the only stock up right now, and half the dow 30 stocks are past the 10 correction. There are few others that are at 20 or more from highs, a bear market. Sue you are telling me fedex is in that grouping . Okay, that would not ups i apologize. I mentioned fedex because it and ups are facing competition now from amazon that plans to assault their Business Delivery arena. In other words, to compete with them on their turf and ups taking it on the chin as a result of that. Apple is also down right now, bouncing in and out of better than 10 correction territory. The Smart Speaker came out today but greeted largely on wall street with a collective yawn. Deirdre bolton is live outside an apple store in manhattan with that. Deirdre . Reporter i remember is am, neil, on the upper westside. You remember when the iphone x came out, lines around the block. People camped out overnight, tourists using the new york city time to wait in line for the iphones, this is completely opposite, very quiet. I have met not one Single Person here to even pick up an apple homepod. As weve been talking about, apple homepod is about three years late to the party. Amazon, echo about three years, in a second generation, google home out for two years, and apples product is the most expensive. 350. It is double plus competitors, and really this is about sound quality. So it even does less. So, of course, as far as apple is concerned, i reached out to the company and asked them what sales expectations were, i didnt hear back from the company. But neil, this is all about sound quality. Theres one line, back to you. Neil thank you, deirdre, very, very much. Focusing on the dow coming down to session lose right now. Market watch is reporting that the more present concern seems to be this gauge moving below 200day moving average, it is not there yet. That average would be about 22,792, and were obviously 700 points north of that at this time. But then its a freefall after that. Another 1,000point decline if it were to pierce that level. Were not at that level, and i stress that but followed things like 50day moving averages, 100day moving averages, lot of Technical Analysis goes into that, sometimes for the folks, Reading Chicken in trails to me. It is among the latest worries were going to knife through that as the dow slides close to 12 from highs well, into typical correction territory, 8 Percentage Points from a bear Market Correction. After that, its anyones guess where it goes. To adam lushinski on the escape hatches for this. Technology is proving it, Health Care Stocks arent doing it, copper isnt doing, it bonds certainly are not drawing, you know, significant amount of funds, so where is this money going . You know, when you ask that a little earlier, neil, i thought gee, thats a good question, i have no idea where its going, we could talk about the fact that some tech stocks have done well in certain instances which i find very interesting. True, amazon, no matter how much it belted around, continued to be belted around from the first hit on friday. I believe its still up. But most,s are feeling the pinch here, half the dow stocks, of course, into 10 correction, could be more, because that was as of this morning, and a few in bear market territory, but in is happening at an unusual speed. I mean bear markets happen, this would be the fourth, 10 correction weve seen in this nine year long bull market and thats precious few if you think about it. What do you think of just that aspect . Im sorry, neil, say the last part of the question one more time. Neil so few of the corrections and that is what is making this latest one so hard to swallow. Well, thats true for investors, both professional investors and Retail Investors. Any time you dont do anything for quite some time, think about exercising and you go into the gym, your muscles hurt. Neil i heard that. People dont have the muscle memory. Im sorry i couldnt hear you, neil. Neil im kidding, im kidding. Okay. Neil heres what worries me about all this. Maybe its the algorithm driven, im sounding like old fogy telling the kids to get off my lawn. I believe the exotic investments, the boutique investments, the counters to the vix trade and all that, i think theyre the latest example how we get ourselves locked into vehicles that would shield them from Market Forces and only end up getting burned. Jury is still out on this and wont know until were dotting the is and crossing the ts on the historic hit. It is confounding a lot of investors and speeding up the process that is anything but orderly. Well, i agree, and i think the way i think about this, you and i have both watched multiple cycles of the stock market, and so far in our lifetimes, every down cycle followed by an up cycle and Good Companies eventually did extremely well and Bad Companies went out of business, and didnt really matter what happens with the improvements in trading technologies. If youre a professional trader, this stuff is very important, and if youre an investor for the long haul and dont need money in the next 12 months, its relatively unimportant, that doesnt make it less painful or interesting or less confusing on a day like today. Neil people use this as opportunity to get out. They want to get out now, ask questions later. Forgetting the fact when they do get out, they have to pay taxes on gains, i assume they still have, maybe not as big as gains but tax implication to that, and im wondering if people dont sort of ponder that when they get so fed up . Yeah, the experts tell us over and over again that selling when the market is plunging is the wrong decision, its a decision that you didnt really understand why you were in for the first place. And these people almost certainly have gains unless they just started investing in december. Neil well put, well put. Thank you, adam, very, very much. Thank you. Neil if youre going to sell an asset that you still made money on, its going to be 30 to 35 depending on tax bracket. The stock or investment would have had to fall by that amount for you to justify selling even at a gain at this point, and is it worth it . Others argue if i lose my shirt on the investment, i might as well get out now, and you deal with the math on all of that, apparently people have concluded its better to do that than to stick in the dow. So theyre sticking it to the dow. Now down 422 points. Well have more after this. Misconduct; oh, why you look so sad, the tears are in your eyes, mvo how hard is it just to take some time out of your day to give him a ride to school and show him you support him. And dont be ashamed to cry, let me see you through, cause ive seen the dark side too. When the night falls on you, you dont know what to do, mvo when disaster strikes to one, we all get together and support each other. Thats the nature of humanity. Ill stand by you, wont let nobody hurt you. Ill stand by you, so if youre mad, get mad, dont hold it all inside, come on and talk to me now. Hey, what you got to hide . Mvo its a calling to the nation of how great we are and how great we can be. Im alive like you. When youre standing at the cross roads, and dont know which path to choose, let me come along, cause even if youre wrong ill stand by you. Ill stand by you. Wont let nobody hurt you. Ill stand by you. Even in your darkest hour, and i will never desert you. Ill stand by you. Neil so youre not bought on the view that at least this avoids constant continuing resolutions and limping along six weeks at a time. Rather that than this . Of course, its a horrible rationalization, when you take away everything holding back the tide they put fiscal policy on holiday. Nothing will happen until next march, they wont bother with the budget resolution. Neil that was david stockman. My next guest agrees, former federal budget president there, your argument is like David Stockmans we put on a twoyear hold anything approaching budget austerity, huh . Yeah, theres no austerity to be found anywhere on any side of the budget. This is honestly quite possibly the worst budget deal i can recall that it is two sides saying i want everything i can possibly think of and i dont want to pay for it, and the other side says ill give you that if can i have everything i want and not pay for it. That is children negotiating and that is where we are in this budget deal. I cant say enough bad things about it unfortunately. Neil so what happened . We were already running deficits, big one this year, likely big one next year, the cynic in me could say add it to the other red, you say . Yeah, if youre goal is to hit rock bottom as hard and viciously as possible, were moving towards that. Neil what does it mean to hit rock bottom . What are you saying . Two ways well fix the fiscal untenable situation, either from Political Leadership or some other crisis. The leadership weve been waiting for clearly is nowhere to be found. There are very, very few lawmakers putting up any barriers towards the unstoppable spending and borrowing spree that were on. That means that were going to have a structurally unsound economy. If you borrow and put trillion dollar deficits into the economy when the economy is doing well, what happens when the economy turns down . What happens when there is ripples of other countries willing to lend to us . We are so vulnerable, and intent on finding out what the fiscal reckoning will feel like when we had plenty of time to get out ahead of the problem and fix it. Neil i always worry about weird things like the exotic investments that can supposedly shield you from markets, they never do. The other thing what i dont like to call a debt trade on the 10year note that hasnt been factored in yet. People are focusing on 2. 8, 2. 9, i think its going to go higher than that. Not only improving economic fundamentals, which is good news, but to your point, financing this. Well have to print a lot more treasury notes and bonds to do that. Its a little simplistic but all the supply with questionable demand is going to back up rates beyond what would normally be the case. I dont know how far theyre going to back up. What about you . I have no idea how far theyre going to back up. I know what i dont want them to be, that is structurally dependent on the borrowing. When rates go up, whether its a small amount or large amount in terms of the debt burden, our interest cost will go up massively. Right now Interest Payments on the debt are the Fastest Growing part of the budget, whether you want Smaller Government or bigger government, when your money is going on Interest Payments, that does nothing for dividing resources that we have. The issue is we have no form of fiscal constraint left. Neil none. The spending gaps were put in place to urge lawmakers to deal with the fiscal drivers, the programs are on automatic pilot. Instead of pushing them to make choices on social security, medicare, medicaid, they said make the caps go away. Not only does it mean were going to have trillion dollar deficits next year, its likely well have 2 trillion deficits before the decade is out. That means the budget President Trump put out is completely at odds with what were going to see. Hes going to put out a new budget monday. I cant imagine whats in there. Theyre throwing up their hands saying were done governing, were done with fiscal issues, that is going to have a strong price on the economy in the longer term. I worry both parties decided in keeping government doors open for a couple of years, theyve invited a bunch of messes in the process. Its a huge price to pay just to keep the government open. Its going to cost us hundreds of billions of dollars just not to shut the government down . Thats not functioning. If thats your goal, you might rethink it. Maya, thank you very much. The dow down 415 points. Whether you buy the idea of a debt trade on the long bond or the 10year note or whatever you want to say. Its one thing to factor in the prospect of improving economy, which would be good, but if we have not factored in the possibility of trillion dollar deficits potentially as far as the eye could see for a while, that could be worse, and that is the conundrum the credit market is dealing with, and stock trader as well. Well have more after this. The dow is down 409 at 23,455. How do you win at business . Stay at laquinta. Where were changing with contemporary makeovers. Then, use the ultimate power handshake, the upper hander with a double palm grab. Who has the upper hand now . Start winning today. Book now at lq. Com. Hi, im the internet you knoarmless bowling. Lt . You got this, jimmy you know whats easy . Building your website with godaddy. Pick a domain name. Choose a design. You can build a website in under an hour. Now thats a strike get your domain today and get a free trial of gocentral. Build a better website in under an hour. I love you. I have a little bone to pick with the guys that were on after me last time. I know it was stephen leeb and charles gasparino, you referred to my interview, and asked them is there anything to what he says about the bear market . And theyre saying no, no, well never have a bear market, well never have a market top unless there are fundamentals that the point to it. Absolutely wrong, neil. There is no top in history that the fundamentals have pointed to. Hes a market legend going right after you and charlie gasparino. What did i say . Neil i think its time for our boomers, you calm down, i havent introduced you yet. Charlie gasparino, charlie brady, stephen leeb and our own wicked lizzie mcdonald. I think you laughed at him and his bearish forecast. I want you to defend your pathetic self, go . Im neither bullish or bearish, im worried about markets. Neil you said you were dismissing the market. Dismissing his insanity, the old mans crazy insanity. He doesnt like that comment. That guy is a less insane harry deck, he was calling for the thing to blow up. Neil how do we know it hasnt . I think he said. Neil what do you think . He hates me. And maybe with reason, but since that, if i recall correctly, weve had a massive tax cut, and weve had this spending bill that was passed last night. Neil he was saying its going to do squat and the proof is whats going on in the market . What hes saying is a fundamental reason right now that there wasnt before. In other words, this massive debt that we have. Neil catching up, catching up with him . The point peter was trying to makers just because youre seeing a mark selloff doesnt mean there is a fundamental reason. Neil i wish i had asked that, i let that go by. The dow fell 20 in a single session yet the economy grew almost 4 that year and 98 was 4. 2 growth. Charlie, just, in 1987, yes, you are absolutely right. The economy was fine and the market was up for the year, but going into that crash, you had this massive increase in commodity prices. You had the dollar in free fall. And something had to happen, and you had this massive portfolio insurance. This genius idea of protecting yourself. Neil we have a variation of that today, lizzie, with the exotic investment. The counters to the vix, i dont know. Its weird, its a normal trend and puts it on steroids. Its crazy. This is odd trading in the market, lets be frank. All of a sudden were down 10 . Neil how far do you think it goes . I dont know if peter is going to be right. Were going to see 13,000. No. Thats pretty bearish. Ive got to Say Something in the spending deal woofed through congress. I love the headline. This is bipartisanship at its worst. I thought this big Government Spending meant bigger government and the republicans were against that . Im astonished, im astonished how trump wants Infrastructure Spending and the fed is selling bonds off the Balance Sheet and the bonds are sell narring. Im sure hes a nice guy. What i was rejecting from him is that doom and gloom generally doesnt work out. We never get as low as people like he and neil hes looking for upside after all this ends, you know . Probably will be. I never predict, i never give you a rosecolored glasses with markets, because they go up and down. Heres the fundamental thing they think is weird about this, if you look at the retail inflows, the stock funds in january, they were like at record level. Neil 100 billion. Whos touting that market . At these valuations . One guy. Its the president of the United States. The latest money going out and brady can you help me with this, but thats a pretty quick exit, if its 20 billion retail money leaving, whats going on . Thats a quick exit and volatility happens fast. We had record low volatility. Neil really fast. Its always faster on the downside. We had record low numbers. Neil a little more than 10 in five trading days . Isnt that unusual . Yes, it came after the vix index at key measure of volatility. Unsustainably low. Charlie is absolutely right. This is abnormally complacent market. In the first time in history the s p never went down 3 . Neil there is a 10 correction, a nine year bull market. Neil. The late Roy Neuberger had a rule of thumb, if he followed ridley, he would have done a lot better than he did. Neil what was the rule of thumb . 10 out, and you wait and see. Neil out that you sell everything . Yes, out. You got to be right when you get out and when you get back in, right . Thats a tough call. Make a judgment. Then you have to make a judgment. But the point is neil you have to pay taxes when you get out. He had a lot of money. Neil i understand, i think that trade is not always at that expense. Right, but it was a sense when things get serious, and when you have to pay attention. 8, 9 . Neil you think were going down 20 . Whats that . Neil you think well go down 20 . I have no idea. Neil now and. George soros wrote a pretty good book about the mind of the markets and talks about herd mentality. Glass half full market is now a glass half empty. This is where people Start Talking about deficits. Neil so you think the worst could or could not be over . I think we got more to go. No, i think there could be more selling, but the the end of the day its earnings that drive stocks. Neil what do you see . I dont like what i see. I think it indicates a change neil just want a yes or no, yes or no. No all right more after this. Baby boomers, heres something you should know. Theres a serious virus out there that 1 in 30 boomers has, yet most dont even know it. A virus thats been almost forgotten. Its hepatitis c. Hep c can hide in the body for years without symptoms. Left untreated it can lead to liver damage, even liver cancer. The only way to know if you have hep c is to ask your Healthcare Provider for the simple blood test. If you have hep c, it can be cured. For us, its time to get tested. Its the only way to know for sure. Neil this craze at thisness started when we went live with our show at 10 00 a. M. Eastern time on fox news. Were going to look at all of this, with dave brat, the Freedom Caucus member. A democrat from kentucky, so many others when this trend will end. They dont like the trend. Hey, trish. Neil, wow, what a crazy day it is. Stocks continuing in selloff mode. Were off the lows of the session pretty significantly. It has definitely been one of the worst weeks in recent memory for markets. Do we have intraday chart . There you go. You see it right there on your screen. You see how were in positive territory and were dipped way negative. Then we came back. And we have two hours to go until the end of trading, as weve seen all week long anything can happen between now and the closing bell. Buckle up. Im trish regan from the Financial Capital of the world. Welcome to the intelligence report
comparemela.com © 2020. All Rights Reserved.