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Coronavirus spreads across the u. S. , but is the virus the only factor. Falling stock prices have lifted dividend yield, some companies are often more than 5 , weve got the nays, and which companies are more attractive after the selloff. On the barrons roundtable tonight been levinson, jack how, we opened last week with three forces moving the market coronavirus, fed, politics. By midday friday look like coronavirus was the only thing standing, then a new force into the picture. So lets get this out of the way, politics is a sideshow here. What we have is a heavyweight battle between two forces. Have a coronavirus which is threatening to make the u. S. Economy grind to a halt. And you have the fed which is trying to make sure people can still get access to money. That they are not going to run other cash they need to keep their business going so the market was out riding with biden when the started customer. And jack how is being played by Sylvester Stallone because midday monday he was on the ropes. So in the market is responding first, to the possibility that the fed would cut rates. Which it did. Then cause the market the selloff because market sells good news. And it looked like it was going to get slaughtered the rest of the week. Then friday comes along, and the last hour, one hour before the end of the day, they come out and say maybe the feds should be buying securities. And you get a 500point rally in the dow pretty every Single Market and major index finished up for the week. Jack who said that . In a fed member. Jack when he talks people listen. It was a wild week you had to, 4 updates which doesnt happen very often. You had some big down days, and the dow ended up on the week a little over 1 . So when you back wayward 6 a year . Its kind of about where we should be. So 8 . So with Earnings Growth this year now were not getting any. Its about what you would think the market should have done. Its not so crazy at the yeartodate. So a lot of people been calling for repricing anyway. Entering the coronavirus kind of ignited it. Jack smita historic move, since 1851 when the modern bond market was established of never seen this before. So the bond yields dropped below 0. 8 on the air. If you put 3 million in ten year treasuries right now, lets say your retiree at your life savings, youre going to get income of 23000 a year. I went to the labor departments website looked at who makes 23000 year its dishwashers. Its not a bad job i used to do it and is a darn good one. I made those plates shine part you would think with 3 million bucks, youre still welltodo 3 million but you could generate more income. It has gotten very expensive to seek safety. So carlton youve been looking at the stock market to the income led 20 fighting and dividend land customer. Absolutely with stocks going off dividend to going up. That can be a value trap. Where things arent just cheap, but they are cheap. Jack s a really high dividends are red flags that way if that company question work so exactly but there are some places and or barry has a story coming out of the bunch of nays of the opt to be underlying financials of the company. Have these deals in excess of 5 , the underlying financials of the companies do look stronger, relatively stronger. Yet there are some energy nays in here so youre looking at expert on mobile, bolero energy are also look at Prudential Financial inc. In america. Jack to the other side of followings stock prices as bargains. Jackie been a bargain business. So you got to embrace some risk it cant be all safe. If you look at what suman the stock market, soup and bleach. Camels and clorox. Thats a people excited about right now. Jack and clorox to selling at 28 times earnings . If you look at Companies Like disney and the beginning of the year disney traded and 40 premium relative to earnings. You think the worlds most valuable entertainment estimates will be better than cream of mushroom over the longterm. So you dont think thats a future customer. Now the same price. I think thats a Good Opportunity for investors. I pointed out some nays that at least come from ubs Stanley Black decker, and jetblue. I get it, we are not ready for the airlines yet, but if you are adventurous and you want to buy very cheap stock,. At least not recommending a cruise line. So i am not going for that yet. They load the Home Improvement chain and young brands, knock and given a commentary on kfcs new chicken sandwich that has the two glazed donuts for buns, thats yummy brand. As a double digit earnings grower. Jack edson mays in one of that size is double earning. Dont forget they have the tacos. Jack before we go, bennett went to ask, crazy week, big surge into the close, what you think happens monday, tuesday, wednesday next week . Smack another 4 . So i dont thing the volatilities over yet. Think were going to see testing finally happen on the coronavirus here in the united states. We are going to see a spike of cases, the headlines are going to scare people. Jack though put the test that will find it how many people actually have coronavirus thats going to be scary. That is going to freak people out there gonna sell. I also think we have to watch carefully, the Economic Data this coming out. Things like the jobless claims data to see if the coronavirus is starting to have an impact on Small Businesses for it are they laying people off course work we have to very careful to pose number start to rise. If they do its a problem. Jack coming up our exclusive interview with New York Stock Exchange president stacey cunningham. 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Do you have any lollipops in there . laughing no, sorry. Were helping all kinds of businesses go beyond customer expectations. How can we help you . Colon Cancer Screening for people 45 plus at average risk. Some things are harder than you thought. And others are easier. Like screening for colon cancer with me, cologuard. Im noninvasive and you use me at home. Im also effective. I find 92 of colon cancers using dna in your stool. So why wait . Cologuard is not for those at high risk for colon cancer. False positive and negative results may occur. Ask your Healthcare Provider if cologuard is right for you. Most insured patients pay 0. Jack this week barrons launches inaugural lists of the 100 most influential women and finance. One of those honorees is in the thick of the wild action on wall street, stacey cunningham, president of the next Stock Exchange. As businesses across the country plan coronavirus contingency plan. I asked if traders should stay home . Jack with the floor of the nearest exchange ever shut down for the coronavirus customer. One of the things we have to focus on is being prepared for any condition. So we have scenarios that we are ready to roll out and implement at any point time. So is it a possible scenario the floor could close . Yes, we are prepared for that we test every quarter. Coincidentally, we actually have a test on saturday to prepare for any of our Market Participants to interact remotely if needed. Jack during these volatile weeks i have not heard of any glitches on the floor the near Stock Exchange. In past decades that is happened in moments of high volatility. What you doing right . So it is so important for us to make sure technology can scale with market conditions. I think a lot of people dont realize how much messaging we process here at the exchange. Its more than any other exchange in the world. Volatility is a time when investors tend to get a little jittery. We want to make sure we can maintain that confidence. Markets arent always going to go but they need to work. So we have stateoftheart platform that make sure our customers are getting exactly the same type of experience, every time they sent in order to assist same amount of time it takes us back to them so they know the markets are operating the way theyre supposed to. Jack let me ask you another change over time over the next Stock Exchange free when you were on the floor is a specialist, there were not very many women in that world. And still its very much a debt male dominated industry. What you tell young women who want to get into finance customer. I think is very important when youre part of a male dominated industry to be yourself. What makes you different is what makes you even more unique and special for the organization. Diversity is so important in business, not just because its an important buzzword in the industry, but it actually makes the business stronger to have diversity. So dont try to fit in, play your game. Jack you have a very interesting perch appear you speak of ceos and investors. But from your perch appear, you see tick by tick trades. You know what it is because all the action is traded here. So what you think what is a Market Selling in our quest mark. I think the market is digesting a lot of news and theres been a combination of both what people are consuming about the virus as well as the election cycle. At any time theres uncertainty in the market, thats typically when the market really reacts. We are an unprecedented Uncertain Times for it i will say, i have lived through uncertain environments and then it market. I worked out a trade on the floor for many years prayed we get through to the other side. You learn, you build that resiliency and you have to stay calm, thats the most important part of navigating and uncertain waters. Jack causation changes but this im not different. No its not, over time the market starts in the lower corner of the chart, and moves to the upper right. And its just not a straight line. Jack some companies these days are not going for the liquid market as early as they used to. Were seeing this trend where they are saying private so much longer, amassing these massive valuations. Sometimes of the come to the Public Market, things work out for them. What you thought a megatrend customer. Jack, i think thats a very important issue and i dont think we can overstate how important it is. My company saying private longer, they are limiting access to investors have opportunities in the Fastest Growing companies. They are leading to evaluations that arent based on buyers and sellers coming together in a real liquid environment. So they are not actually representative of the value of the company. And they are also allowing theres a lack of discipline and governments and private companies of the Public Market just demands. So i think those three things are really contributing to what we are seeing in a bifurcation of wealth in the nation. I dont think we should take that too lightly, we need to make sure we are opening up all of our Investment Opportunities all investors. Jack what time you mention it is capitals needing attunement. So absolutely i am a capitalist and this is been the engine that has really powered the growth of this nation for 228 years. And yet, we want to make sure we maintain some of its core principles. Its a story of shared success. We need to make sure we are sharing that success with everyone. And not letting the private markets become too much of that story. Jack one newish way of going public as a direct listing. One of the great things about that is open to the everyone the same time for this artificial constraint with that prices paid. Jack the insiders on getting it. Juergen the ipo the night before when that initial Public Offering is happening prayed is only a subset of investors that are part of that process. They are actually not even able to buy as much as they want to. They might only receive a reduced allocation. And the next day, there are restrictions on who can sell it there locked up. So direct listing really takes away all the artificial constraints and allows buyers and sellers to set the price. And that is price discovery at spinous. Jack you sound very optimistic is there anything that keeps you up and i customer. I have been in this business for long time, you know how to power through periods of stress. I certainly am very sympathetic to markets going up and down, and recognizing theres a lot of risk there. My job as a think about what is around the corner and how do we prepare for that . Thats certainly what i do. Jack good luck with that. See megabucks thank you jack. Jack to see the other 99 women are list go to barrons. Com. Coming apple the feds emergency rate cut alleviate market concerns over market concerns over coronavirus i cant believe it. That chad really was raised by wolves . Which one is your mother . Thats her right there. Oh, gosh. No, i cant believe how easy it was to save hundreds of dollars on my Car Insurance with geico. Its really great. Well, im just so glad to have met your beautiful family. And we better be sitting down now. Believe it geico could save you fifteen percent or more on Car Insurance. narrator he loves monday through friday but lives for the weekend. Hes put some miles on his truck, and now its time for something new, so he came here and saw what other people paid for the same truck he wants. Now he can recognize a great price. 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Jack the fed cut its benchmark Interest Rate by a halfpoint to combat coronavirus rocking the market. As monetary or fiscal policy be the answer . Joining me now and Wharton School finance professor jeremy siegel. Thank you very much for joining us professor. Lets start with the big picture of your economic outlook. Im here you said a shallow recession might be on the horizon . Absolutely. When you are growing in only 2 , it doesnt take much to wipe out that 2 increase. With the Entertainment Industry is a huge portion of the u. S. And world economy. Obviously thats going to slow down. So i could see a couple quarters, potentially of negative gdp growth, later this year. So the stock market is forwardlooking so is this pricing . Are you a buyer seller this point . For longterm investors, i am a buyer. Even if earnings get ravaged, this year, one has to remember that over 90 of the value of stocks, is due to its profits of more than 12 months into the future. If you do the math on valuation and everyone agrees on that, we could have a 20 decline im not forecasting it, how much can be wiped out if we bounce back in 2021, i think thats what everyone expects. These viruses come and go, we will have a Strong Economy in 2021. And that should not lead to a bear market. That said, we know history. Fear can drive us into a bear market 20 . That would not surprise me. But i do not believe that is economically or financially justified. Recently made a call we can see the Dow Jones Industrial hit 40000 and the next four to five years. How do you feel about the call now . Oh yeah, i still think that is true. Again, should we change our 2021 . 2020 absolutely. But should be changed 2021 . Forecast as a result. Look at todays labor report. Look how strong our economy is going into this crisis. And i think that is really important as the doctors will tell you. A strong patient is going to be able to withstand any disease far better than a week patient. Jack thats a good analogy. Lets talk about medicine. So the feds 50 basis point surprise cut the market is pricing in another 50 basis point cut. Is that the right medicine right now . You dont cure a virus with a rate cut you dont fix and supply chain with a rate cut. This is partly supply chain, but this is mostly still a demand shock, its cancellations of travel. Cancellations of going out of concerts of so many activities. That is demand. Even more important than that, remember there are hundreds of billions of dollars of loans to Small Businesses that are based on that fed rates, on the prime rate, on the live rate. If we can give relief there, its not going to be a cureall to say the least. If we can give relief there, lets give relief there. Is a just bringing down the cost said that death inquest mark im trying to imagine a person out there think you are doing a piece of business thinking im an out hold out for quarterpoint lower on my finance rate i dont know thats can happen anywhere in the world right now do you get any added benefit is the rates move lower from here . You are right. I dont think thats going to be a decision a while go ahead with this project. Small businesses have loans outstanding to finance their business. Thats always a cost. And interest costs. Lowering that rates it is not going to do more projects is just going to relieve some of their expense during a time when the revenues are challenged. I think that is positive. How about an infrastructure bonanza. I heard all these ideas about spending, i dont know whether theyll get stimulus or not. Thing about infrastructures whether i get stimulus to get the stuff after you spent the money. Wouldnt a multitrillion dollar infrastructure package be a good idea . I think it has been a good idea for for five years it supposedly been agreed upon by the republicans and the democrats. Weve got nothing over this time. Very honestly, for this coronavirus i would advocate if it gets to that and not sing were there yet a temporary payroll tax, holiday we would say attacks cut will be much faster to get congress to agree out what kind of infrastructure, when to start it, by then we could be coming out of the coronavirus a targeted payroll cuts. If we need it. I think would be the best fiscal action that we would be able to take. Speed nine that would certainly work a lot faster and those infrastructure plays can be a longterm policy. Thanks so much. Up next roundtable members give their investment ideas for the coming week, stay for the coming week, stay right there. Wherever we want to go, autosave your way there with chase. Chase. Make more of whats yours. To feel exhilaration. It all starts with an invitation. The invitation to lexus sales event now through march 31st. Get 0. 9 apr for 60 months on all 2020 models. Experience amazing at your lexus dealer. 100 online car buying. Carvanas had a lot of firsts. Car vending machines. And now, putting you in control of your financing. At carvana, get personalized terms, browse for cars that fit your budget, then customize your down payment and monthly payment. And these arent madeup numbers. Its what youll really pay, right down to the penny. Whether youre shopping or just looking. It only takes a few seconds, and it wont affect your credit score. Finally a totally different way to finance your ride. Only from carvana. The new way to buy a car. Kennedy jack, like a lot of companies, dow jones is up this week to see if we worked at home you did pretty well but there is a little glitch my home office. You have to be careful in these times when you are doing the telecommuting from home. Part of my job is talking with top Company Chiefs on the phone. I do it all the time. I had a situation im not getting so every last detail but my son who is five, barges into the room and a head to toe star wars Storm Trooper uniform. Never mind that its 120 something days past halloween hes hollering that my daughter had changed his netflix that something i cant repeat on the show. My dog starts barking in the background. You gotta stay focused yet be careful out there. Jack i wish we had a picture of your son, at least give your dog my dog is marianne. That is ginger too, she is taking up distance from me there. Thats not a professional shot. Jack people are saying on stocking up one of the places are stock it was walmart. s or action item for this week, number of these stayathome stocks are people either buying goods to stock up, or whatever. A number of them have had a huge run. Walmart, compared to costco hasnt had that run. We think a cells room to go. Jack ben, youre right its a big one. Do nothing. Get your Asset Allocation right, make sure you have the right mix of stocks and bonds so that the market drops him or you can stomach it. But dont do anything. When the market is dropping 4 one day going up 4 the next day, you dont want to be a hero. Just let the volatility died out. To make it a level little so thanks everybody great ideas. For more check out this weeks edition of barrons roundtable and dont forget to follow us on wonderful weekend. Maria bartiromo wall street is next. Welcome to the program that analyze the week that was and that helps position you for the week ahead. Happy weekend everybody. I am Maria Bartiromo thank you for joining us. Coming up in a few moments the founder of Value Capital jeff oven is Trevor Milton they are going to talk about the electric market and this electric truck makers merger news thatll take the Company Public later this year. We will also talk investing with jeff oven has been a tremendous investor after whats been a wild week on wall street verso b

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