And cream, many of those fell flat like uber and slack and then the trade war with china. All the successes and failures keep investors on their toes, joining me too discuss it is stacy cunningham, the president of the new york stock exchange. Thank you for joining us. How is business, give us your take from an inside view of how things are going capital market. It seems like a long time ago we began 2019 and a lot has happened since then. If you look at the First Quarter of 2019, the government was shut down so the ipo market was nonexistent if you like a really long time ago. The First Quarter was then in the Second Quarter was tremendously busy on pace to be a record year despite the fact we were shut in the First Quarter in the Third Quarter we had investors asking questions about evaluation of companies in the private market and how theyre performing in the Public Market so we see in the Fourth Quarter of slowdown and companies in the pipeline but many are reacting to some of the activities in the Third Quarter and pushing their deals out to 2020. You feel like volume justifies the record highs . What do you think about the dow and the nasdaq and the s p hitting record high day after day. There are some companies that are really performing very well and pushing overall market index up in a broad set of companies that are optimistic in performing pretty well as well. Markets dont like uncertainty so the things is also hard for ceos for uncertainties. Those have any concerns of the market around that and having answer questions are helpful. Trade negotiations unfold, it will be a good thing for the markets, once there is visibility how the market will be in 2020. There is another sentiment about the china u. S. Trade you everyday. I want to get to what you wrote about the pos, but let me get your take on the wall street journal story about bridgewater betting big on a market drop, he is betting a billion dollars that the market tanks, he uses that word by march. I think the market has been on a tremendous upswing for a long. Of time so investors are expressing opinions in different ways and a billion dollars for bridgewater isnt as significant for a Million Dollars of many others. I think its a balance and will see what happens. You write an initial Public Offering should be a milestone in the companys existence representing the moment it fulfills the promise as a young entity yet companies are delaying the moment. With the chairman of the Exchange Commission talking about this. What is going on with ipos . A lot of talk about why companies are delaying and it comes down to accommodation of the regulatory landscape be more challenging as well as axis alternatives. Theres a lot of private capital so companies have options they dont have to go to the Public Market to raise money. So many are delaying the action, where i get concerned is we are not talking about what happened when that continues. And what does it mean to investors and what does it mean to the valuation and what these committees look like. Theyre waiting a very long time to go public and they have bad habits in the private work it, those habits grow alongside the company. And i see very Big Companies with a lack of discipline government because the Public Market instills that in the much Larger Companies that have an outside impact. The founders have an outside impact on how it gets run. Two, you look at the overall evaluation. The private markets are a lot of smart people but nothing values the company the way the Public Markets do. Once you have the transferring to into close closure you see what something is worth. That is fine for a Small Company if things arent as efficient but when you talk about really Large Companies and sometimes not always unintentional that the valuations are inaccurate, you might see a transaction occur toward the end of a companies private lifecycle just to remarket overall position the summit he might have had earlier. It is not transparent process in the Public Markets arc into bidding to that valuation process which is really important and third, the most important issue, companies are growing in the private space very rapidly in the little bit more stable in the public space which means investors are missing on that growth. Let me ask about the year it is already thanksgiving coming up, what to expect in terms of business for 2019 and what your outlook for 2020. A lot of companies with respect to the ipo market, a lot of companies are exploring a listing in 2020. Theres few left in the pipeline in 2019 but we see the vast majority in 2020. I expect they will want to come onto the market in the first half of the year because typically around an election you see the ipo slowdown a little bit given the uncertainty. Markets dont love uncertainty so the first half, one of the interesting things about direct listing under listing you less dependent on Market Conditions because youre not selling shares. If not raising money theres more volatility in the market its something you can weather differently. You think will see a good 2020 . I do. The volume book looks good . Yeah i think there are some Big Questions that investors are asking which are really important because theyre asking these questions the right, what is it evaluation, what are these companies doing and very often investors have given some of these companies the past because they were big and wellknown and Interesting Companies and now they say i want to use my voice and governance issues or use my voice on profitability issues. I think the bar is going to be raised a little bit for these Companies Going public but its a good thing for the market. I think investors would have a much better leg up if they were able to get into an ipo much earlier. And if you look at the charts, the later you get in the lesser of a move you can get. They are growing much faster when theyre younger. Companies are typically twice as old when they come public as they were earlier ten years ago. Thats a big difference for investors. Its great to have you and president of the new york stock exchange. Dont go anywhere alan joins me next. Stay with us. Great presentation, tim. Could you email me the part about geico making it easy to switch and save hundreds . Oh yeah, sure. Um. You dont know my name, do you . laughs nervously of course i know your name. I just get you mixed up with the other guy. Whats his name . Whats your name . Switch to geico®. You could save 15 or more on car insurance. Could you just tell me . I want this to be over. Wow giving one. How did you guys. . Dont ask. The lexus december to rembember sales event get 0 percent apr for 60 months on all 2019 models. Experience amazing at your lexus dealer. Today, john got dressed first date with sarah. John told his stitch fix stylist evan that tonight was a big deal. So his stylist did the hard work for him. Browsing hundreds of styles and sizes to find the perfect fitting shirt and blazer. So that tonight john could feel totally himself. At stitch fix we dont just see your size or your style. We see you. Let us find your perfect fit at stitchfix. Com. Welcome back with all the record highs, 2019 was supposed to be a banner year for ipos but unicorns have fallen flat since ipos, the initial evaluation for companies that is causing companies to reexamine when is the right time to go public and investors get involved. Joining me not to talk about the private market as a godfather of venture capital, alan, great to see a. Let me ask you this the of ipo situation, what do you think happened you look at the uber and they have fallen from their highs but theres also the wework situation. Characterize what you are seeing. I think what is happened there was a big rush of ipos and when i started my second career which is starting in 2006 we said in our Opening Statement we expected no company to go public and they would all exit through an m a transaction and that was true through 2018 and a 2019 the ipo market opened up and a lot of consumer names and companies building for years all of a sudden came out to the market thats we had overcome a lift, slack and wework was on the cups of going public. They were consumer friendly and there was a rush to buy the stocks and the stocks went up and then reality set in, people started looking at the figures and say can the economics actually translate into a bottom line, ultimately companies have to be financed with earnings net free cash flow, not with Shareholder Equity you cannot raise money for the public in winter in the private round you do for in five rounds to get to a certain point, but everyone had gotten where they needed so much capital they had to go public and then we had a decline where people looked at the emperor and said the emperor had no clothes on in the First Quarter earnings came out and the losses are staggering. We thought we knew that going in to this. After 2006 and on top of 1999 when it was buying stocks because of clicks to the website and not fundamentals. Lets talk about wework, and you have to look at softbank, softbank valuing the company up to 47 billion companies until the realization that really happens in the earnings are not here. I both the more not for the value that the place, thats bad investment judge it, i fault them for bad exercise of corporate governance. They let capital structure come in with dual class shares and they had no control over the company and virtually no independent directors in adam neumann and the public filing had the ability to control company not only through his life but for three years after he died, subsequently to their losing a fortune on paper and then wework situation and bailing it out, they now announced publicly they will have no more do under dual class shares which is been more both for the founders and in some cases 20 1 ratio. The average investor doesnt have voting power. To those circumstances, no voting power. It is silly. They will not insist on independent directors and exercising what they shouldve done a long time ago and thats why this got out of hand. I want to talk to you about your investments, direct to consumer, you been investing in syntactic, tell me where you see growth in allocating capital the way you are. Theres an awful lot happening in this intech market, i would never have dreamed you would have new technology in the real estate business. In new technology in the Insurance Business and lease insurance, property insurance with new concepts direct to consumer and cutting down and increasing efficiency savings. Do need a strong backdrop in the Public Market to have confidence to choose the right deals in the private market . In terms of the recordsetting that we have seen this week in the last couple of weeks, is that pushing you to continue allocating in the private market . It is an interesting question, our biggest sale last year was a shift in birmingham, alabama, not in Silicon Valley and not new york city. And we saw target one of the major retailers. They pay cash, and targets ability to have their stock go up enables them to raise capital and gives them capital and indirectly we benefit but all of our sales we have made a lot of m a transactions since 2006 they have all been apartment transactions for cash and one or two cases for stock in the Public Companies have had cash to do transactions. We are in a phase where i think the ipo market has come back in the window is open, you know as well as i do the window for ipo open and closes and opens again. Right now were going to quiet. I want to take a break, i want to ask you about your other big investment in podcast. You are investing in the leading podcast company. Lets take a break and i want to hear more about it. Stay with i am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. introducing the Marilyn Monroe collection of fine jewellery. Exclusively at zales, the diamonds are a girls best friend store. When it comes to using data, which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Im back with alan, you have invested in the podcast company, tell me about that. I now like to say its a leading independent company, there were two Companies One was bought by spotify for a lot of money. And we are the leading company and have everything we bring out seems to be number one. Podcast is a growth story. We had originally made her big thing and dirty john which bravo license and made a tv show and doctor death, i think has been bought by fox i think alec baldwin is going to be in it and that we had a recent one called the strin shrink next door whics written by joe from the near times about a situation nextdoor in ocean road. I love the name and i love all these names. There also realize nonfiction. We have a whole bunch so truth is stranger than fiction. In the subscription for podcast called pod sites which does observations for podcast. This is about stories of media right now. Audio in general, let me blow your mind for a Second Period there are now 50 million air pods out, 50 million and by next year there will be 100 million. He walked down the street and everybody has something in their ears and their listening to music or a book or mostly a podcast. And its taken over and in my office we have an open part and everybody is sitting there with earphones, i dont know what they listen to i assume music as part of it but audio in the car, on the street is becoming a very big trend. Is at the same Business Model the other media is advertising . We have an investment in the subscriptions and has been primarily advertising but there are many subscription podcast where if people wanted enough they will pay a premium for a nonadd base of podcast. What is the plan, is there an exit strategy to take this Company Public . I would say every Media Company is going to want to have something in the podcast area. As i said spotify bought it because they want to catch up with apple but you can go down the list that podcast are very popular area. So you will do asset sales, not necessarily an ipo . What is your take on the streaming situation. Disney is out, netflix, more than 13 billion next year, theres a lot of cost. The race is staggering. Look at disney in 10 million licenses. I sent a note who is running as a friend of mine in disney, i dont know what they predicted but it got 10,000,001 day i dont know what its up to after one week but the competition for content is enormous and disney of all has so much content to start with so i think thats a big advantage. And i was up on amazon prime and you look and i heard of half the names, they have been so promoted. I happen to be someone who likes to go to the movie theaters. College age but i like to see the big screen and youll notice the irishman is starting out at a big screen before they bring it streaming. I think streaming is here to stay and every Media Company is got to be a part of it and its going to be a costly experience. How does the backdrop feel, you look at the record highs on the market, is the market getting it right, you think the economy is doing well . How do you assess . I think the economy is hard to argue with the economy at the moment. Of course is being funded with 0 Interest Rate but i think the stock markets are way up and everybody is feeling good about the economy, its times like this where the trumpets are blurring that one should be cautious and watch out for excesses. I think we saw that correction in the ipo market in the last couple of quarters and more rationality will be in the next few ipos and in general unless you see warning signs, dont commit yourself that when you read something and see flaws, dont commit yourself that is not real. Watch the figures in the quarterly earnings, isaac is a good time to be careful. Would you be selling in to some of these, we had a myth on home depot, a myth on coals, retail was mixed this week. Were in private company and our lifeblood of the business is getting liquidity and where private nonliquid companies. We depend on being able to sell our investment and its been a great environment, we sold a lot of companies in the last year and we had one or two pending right at the moment. Great to see you. Dont go anywhere where wall street right after this. Im a regular in my neighborhood. Im a regular at my local coffee shop and my local barber shop. When you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. When you rent from national. Its kind of like playing your own version of best ball. Because here, you can choose any car in the aisle, even if its a better car class than the one you reserved. So no matter what, youre guaranteed to have a perfect drive. [laughter] vo go national. Go like a pro. 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The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. Will come back coming up next week on the program join us more amazing interview with mavericks owner, the story of how he rose to the top of the sports business world. One you do not want to miss. Well also talk about travel with super yacht industry with burgess ceo, we have a big show next weekend. Plus this weekend on Fox News Channel join me for sunday morning features life on sunday our special guest this weekend to start of the hearing this weekend Ranking Member david nunez and elise to phonic catch the show live tinian eastern on Fox News Channel. Plus on fox business every weekday tuning weekday six to just when we got thanksgiving week might be boring. Have a great sunday. Happy birthday. Maria good morning, everyone i maria bartiromo, listen to sunday morning future, they kick off the 2020 and congress has gone back home for thanksgiving week. We have to defend the last month. While families gather around the table expect to see in advertising which is republicans spend big money on antiimpeachment messaging. We are zeroing in on the 31 district the president one in 2016 have democrat representatives