Thinking about right now. Big Tech Companies hit by coronavirus, how supply chains are hurting apple, amazon facebook and more. A Morgan Stanley with a 13 billiondollar bill of what it means for investors and soaring ahead of their flight playing the new space race barrons table tonight we will start with reshma. The market hit a new high this week and started falling down to 400 points, one half percent. Coronavirus clearly one of the concerns. The scope is unknown at this time. We have more cases in japan and singapore the last couple of days, the numbers out of china keep skipping around. Their economy is not up and running yet. The chinese economy, some millions of people were quarantined, many render travel restrictions. Goldman has an estimate of all the days that have been missed its like two months of unpaid holidays. Its crazy so factories and production lines have been stopped and investors are really waiting to see what happens with manufacturing and transportation. As of right now the estimate is we are only at 3050 of normal levels. I wish stock markets would let me know if i should panic yet they posted 1. 9 is now below 1. 5 . Thats a dire warning. That tells mashpee laying on this table right now. Pounding my fist and wailing about the coming recession. But the stock market is still up for a couple is has had nothing to worry about. Jack i think the only time its been below this level is brexit. Its always been higher than that. Its really, really low. So what countries are we supposed to worry about . Overnight businesses start by the tenth of march thats a change in production. Apple warned already they have been seeing production we have had a saying they dont have parts and of close their plants we have dell and hp very vulnerable they lab a lot of key components from china. The big shipping companies volumes were down. I think were going to see a lot more of this. Jack even in the air quality over time he conceived vast improvement because factories are shuttered, they are going. The coronavirus is not the only worry. No, i think people are expecting a quick rebound, sort of a q1 hit and then bounce back so they been complacent. But these things or get a linger for a while evil and production gets up and going, companies have to expedite orders, margins are to take a hit. Theres talking about Electronic Companies usually the first quarters when they prototype a new product. Jack he just heard the Service Numbers have not been good in the u. S. Housing starts were down and all of this is probably why the rates are so low. Low rates big problem if you are a discount broker making money off of the carry. Absolutely, what you sow this week with Morgan Stanleys matching of e trade were Trading Companies have gone toward zero we are seeing more consolidation in the industry. Thats was affecting the brokerage firms. But when you look at the big banks, the dynamics of change they are, since the financial crisis. These guys are making a killing on trading before the crisis, now because of regulations, because of a number of reasons, increase technology, they are not making their money there. So youre looking at retail consumers you see Morgan Stanley going by e trade. They are not trying to secure the rights to that commercial with the baby that talks like the grown man and trades from his crib or the one with a chimpanzee riding a horse, i dont think you can do that think peta probably would get that. Is a different era. Jack i sent a note to the Communications Director to ask about the baby and the monkey said we hear you. So they are kind of noncommittal. Is a different look for them and i think thats whats so interesting about the way these banks have changed because we used to say okay they are bank. But before the financial crisis they really werent banks in the traditional savings and loan. Now, since the crisis, and under regulation they have to become that and they are getting more of their revenue from these kind of traditional functions. Morgan stanley is done a great job of moving into the wealth of space and they are really leading its that hard. With e trade they see a chance to get younger, not as wealthy investors bring them into the chain. The henrys the high earners, not rich at. So it e trade because they have a compensation people are getting employee stocks, e trade owns that business paired Morgan Stanley has that too its a great way to get affluent clients right away. Real quick, jack, space race . Think the race right now is is a who can pay a stupider price for Virgin Galactic . 250,000 you delegate shot up into the air and get a few minutes of weightlessness customer. Is not a scalable business how may people can they do that to. Idol of a tongass hypersonic flight you want to pay the stock this too expensive its too risky. If you like suborbital flight, ive got a little operation out of atlanta for its called delta air lines, trades at eight times earnings but 300 bucks on sale. They will take you to disney world and back there and some peanuts and what have you. They will show you a movie. Speeds nine coming up with growing competition and the move to free stock trade, its going to be hard to choose among these Online Brokers paired we are going to bring you barrons varied topics, e trade is one, but first while the corona virus moves the market there sang d d d d d do you recall, not long ago we would walk on the sidewalk all around the wind blows we would only hold on to let go blow a kiss into the sun we need someone to lean on blow a kiss into the sun all we needed somebody to lean on the new xc90 plugin hybrid electric. Xc90. Recharged. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Jack earlier i spoke to jan van eck we talked about china, coronavirus, bitcoin and more. Lets listen. Jan van eck lester you adopted that for china dont fight the pdc does the coronavirus change up your . And brief it doesnt. My theory for this years dont worry be happy. And the reason is if you oversimplify the world into two countries the u. S. And china, both cases you are having policies in the centralbank and the government. The u. S. Has been auto street, china is kind of overcoming a hangover. They tried to crack down on their credit in 2018. And so since then, they took their foot off the brake, but it still gentle. We call it drip stimulus. But its solid growth. And i think they will recover from this. Jack i want to get to those we talk about u. S. Stocks near being near alltime highs. This is been a heckuva ride. So they are pretty pricey now. Big multiple expansion last year without much earnings growth. Where do you see u. S. Stocks . What should be investors be doing right now . They still look like the best house in a mediocre neighborhood. When your central bank is stimulating, you want to own equity you want to own financial assets. But now we are not the shop that likes to do just index market cap indexes. Born distortions or exposures in the market that we like. We are concerned about things, the value of microsoft is greater than the value of all Energy Stocks combined. So from an outlook perspective, why not own some Energy Stocks. Thats more tactical. And then in general, if you can get a methodology that buys equities that arent overvalued because now some are getting kind of profiting. We have a wide note approach. I think that something to look at two if you can embed that into your equity exposure. See nine and your etf is beat the market over time and i think three and five years. What is the approach used but the stocks together . Think the main track, we are only talk about Quality Companies but the main hidden trick is to get them at cheaper evaluations. The more you start Equity Research looks at the earnings potential the profit potential which is the heart of any company. And then says okay, am i paying too much given our view of earnings . And so it they will do, they will sell stock on a rotational basis. And thats what is an important discipline. Jack s with a value approach but not in the Old School Way of thinking about value. Its when price and growth become out of line . Its an evaluation done. Jack lets talk briefly about the energy past year pretty bullish on that based on lousy performance . Its a contrarian view. And they also think if you look at what our investors are demanding more from from a sector that might not have a growth outlook. And thats want my money, i want my money through dividends or i want my money through stock buybacks. And Energy Companies had not been providing that. Only the majors have been doing that. So investors are saying im sorry, across the board i dont care how much acreage you have, youve got to show me the money. And so i think that change in mentality and the sector will take a year or two, but thats the thing, the catalysts we need. Jack so theres a lot more capital discipline in that area. We have a precedent for gold buying companies. Gold buying Companies Hit bottom in 2015, all of the goldmining ceos were fired. They stocked outlandish spending, and again their market didnt believe them for a while, but now show me the money and gold shares are picking up. Jack but the commodity itself is doing well itself what forces are pushing gold higher . The air of essential bands were talking before about Central Banks with capes flying around solving every problem including the coronavirus, that environment with low interest rates, thats great for gold. Theres an additional elements of a little bit of concern that may be Central Banks cant solve every problem, especially in europe. And i think that dynamic has whats been to all diversify hers. Speed nine optimist think crypto currency might be the new gold. So you recently dipped your toe in the bitcoin waters. Whats your case there . It used to be the main boy to get the diversified exposure with goldmining companies or shares. Now with golds etfs, thats a relatively new phenomenon so thats taken with some of the demand for gold shares. An absolute for the Younger Generation we are believers that bitcoin is another sort of component parities for gold and silver, now called golden bitcoin. Jack i want to ask about walmart product at your sports etf. That barrons we warn people away from some etfs to warn people about a um. They say under 100 million might be a dangerous play. You check to both of those negative boxes but once again crafted i think dabbled the return. What is your case for an east sport etf . Fundamentally a lot of people are consuming virtual sports. More people watch Online Sports games than they watch the nfl or any established sport. What hasnt happened yet is the monetization of that audience. But the audience is growing and the way people play the games, watch people playing the games and televising theres all of that dimension. For the tenure view, its hard not to think of a world thats more virtual. Now it will have her smart phones, more step is going to happen online. And it might merge with are realized with entertainment and all kinds of ways we cant imagine. So long answer, sorry, its a trend, not just a fad. Its not a twoyear thing we see it as a longerterm trend for tactical allocation and by the weights 98 million or something. So were getting there. Jack jan van eck thank you so much. What you can do first thing monday morning to improve your portfolio. You work hard for your money. Stretched days for it. Juggled life for it. Took charge for it. So care for it. Look after it. Invest with the expertise of j. P. Morgan, either with an advisor or online, through chase. After all, its yours. Chase. Make more of whats yours. The better question would be where do i not listen to it. While im eating my breakfast. On the edges of cliffs. On a ski lift. Everywhere. Download audible and start listening today. And i recently had a heart attack. It changed my life. But im a survivor. After my heart attack, my doctor prescribed brilinta. Its for people who have been hospitalized for a heart attack. Brilinta is taken with a lowdose aspirin. No more than 100 milligrams as it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a clinical study, brilinta worked better than plavix. Brilinta reduced the chance of having another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor, since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily, or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers, a history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding new or unexpected shortness of breath any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor if brilinta is right for you. My heart is worth brilinta. If you cant afford your medication, astrazeneca may be able to help. Jack this is the 25th year of barrons Online Broker survey. Back and we started there was something called ee schwab then bragged about 205,000 consecutive logons they called them and today you can tell alexa to buy you a stock. So reshma we have a good list you are the big winners. Usually have a tie between fidelity and e trade was number three. I think one of the trends was that they become good at both longterm investment in each raiders. Jack was interesting is fidelity in recent years have been tops in terms of people like us, regular folks at interactive trade appeared now fidelity is Getting Better with a traitor but Interactive Offers a new thing where they are looking at the regular Retail Investor who doesnt trade that often. I think we can go to the three of them and you can hear the top points are lets start with fidelity. Very easy to use, Fast Research and you would expect that from fidelity. I think theyre also kinda teetering towards the younger investor with factional shares you dont need 20500 to buy amazon you can buy a bit of amazon. You can afford a single share brookshire for people so we split it but now you dont need that. You can do it on your own. What about Interactive Brokers customer. Theyre great for trading in international investing. They have many more currencies and exchanges available. You also have the ai power identification. Jack so they have lots they see what russia once and he only sent to those. [laughter] so i caught up with the chairman and founder back when were in palm beach and i asked him about an interesting phenomenon. He offers free trade, but he says thats not the best deal and most of his highpowered day traders are actually willing to pay a commission because they think they get better execution that way lets listen to what he had to say. When you have broker charge commissions, they sell trades the highfrequency traders because they themselves and make a profit on it. So in order to internalize those they have the brokers for you. The end result is the end customer is better off paying a small commission then zero commission and have his trade sold his order sold to a highfrequency trader. Jack not a big surprise and not everybody agrees with him. Fidelity says they dont sell these things. Also interesting as he told market watch this week that he is in negotiations with e trade for a possible merger. Before Morgan Stanley jumped in they couldnt quite come to terms. Lets talk about e trade, what did barrons like about e trade . Theyre good mobile and visuals for the also have options you can practice without paper money. A thing it so interesting when you look at this list we have e trade at number three about to be snatched up by Morgan Stanley but four and five give Charles Schwab and they announced the type at the end of the year. So the amount in this industry is just really setting. Jack i think thats what happens when ed two big engines of making money. You could charge commission and then when you put money end, they sweep into these accounts that were charging or paying you nothing, but meanwhile they could make interest. Now that margin is pretty much gone. If youre not an active trader you at the easiest possible thing. I think ten years ago i estimate is real smart about him pewter should i get an apple or the one that runs microsoft. He said apple is too dumb to buy computers i bow in the next day what is the one for people you dont learn a thing new, the easiest one fidelity . Thats we found the survey. Its easy for all of us. Jack so in the magazine we actually lay out exactly how we did the survey and all the different criteria. And it says, everybody has a different opinion of whats is a pretty website. What is actually easy. For you and apple might be easy for others its a pc. But i want to point out there were six categories trading, usability, mobile, research education, news, international and then retirement and dividends which more and more people are starting to realize its not just putting away its actually taking it out can be tricky. And things on the lists that are in books the deal between schwab in each tray is going to Morgan Stanley, so theres going to be some serious change here in this list of capabilities brokers. Jack changes and is static or Something Like that. Up next roundtable gives us the investment wild thing, you make my heart sing. You make everything. Groovy. Done yet . Yeah, yeah, sorry, sorry. You sure . Hmm. Mmm. Come on, come on, wild thing. If you ride, you get it. Geico motorcycle. Fifteen minutes could save you fifteen percent or more. Its a masterstroke of heartache and redemption. The lexus nx. Modern utility for modern obstacles. Lease the 2020 nx 300 for 359 a month for 36 months. Experience amazing at your lexus dealer. Lease the 2020 nx 300 for 359 a month for 36 months. Doctor bob, what should i take for back pain . Before you take anything, i recommend applying topical relievers first. Salonpas lidocaine patch blocks pain receptors for effective, nonaddictive relief. 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Jack Jack Warren Buffett hasnt called me recently but if he did, his very first question i know would be does jack hough approved of my purchase of kroger . Good news i do, because if i use the word buy online you pick up instore, being night i want to go to the store why dont you just buy it. Its a very big and groceries right now. So big i think there should be a separate term for getting your groceries. Notice taken me about it. Walmart is an early leader and they will be delighted this year end amazon to prove those kroger is the only pure play grocery that makes the digital investment. I think buffett has discovered a way to buy this at a reasonable price. Spieth nine and kroger is a tough market business but its going out there. These regional grocers run into trouble and some of them are closing stores. Some of these customers are good and epic kroger, so theres an opportunity there for them to benefit. Jack thanks jack, we want our viewers to leave with actionable ideas what are yours . We are looking at caterpillar earnings dip this year but if you look under the hood they are improving their Profit Margins and youre getting a 3 yield on this. The nine they always think its a micro trade but it is really a company that can improve itself over time. It has done that. Jack so the trade ideas you have to have big building to go on. But margins are improving the matter what. Im into something boring, rebalanced take money idea growth stock and add some to value. Like iwc to do that earnings are normal, and theres no room for mistakes. Jack think thats really important point. People think that the fangs are the only way to go and thats a great trade, it might continue to be. But when one thing goes the same traction for a long time is good to make sure youre covered the other way. Jack youre not saying its got good and youre just making sure youre covered if it does is other ways to do this as well. See mecklers equal weighted out there. Ryt it owns every one in the state to check out more check out this weeks edition of barrons roundtable see the rest of winners in the survey. They cannot win. Have a terrific weekend, i will see you next week. From the fox studios in new york city this is maria barter nomos wall street. Maria happy we can welcome to the program that analyzes the week was an helps position you for the week ahead. I Maria Barton Omo coming up the cl Mitchell Modell is here about the steps he is taking to keep this wondering 30yearold chain and business as well as a state of retail today. Later on the adelman greenspan talks about the record one on wall street the backed up for the economy prayed First Talking to me about markets is the wall street journals editorial page editor, james freeman, james coetzee. Thanks much for joining us. 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