Past week. By thursday we were down better than 20 from the february highs. That is definition of a bear market. The dow alone, down 10 on thursday that was the worst day since the 1986 crash and black monday. That left traders unsure how to handle the virus impact and questions abound about how slow the economy will become . Are we in a recession right now right now is a boston group chief officer david monson is here, joining us this weekend with 2 billion in Asset Management and eve got the ceo of van ecks, 51 billion in assets under management 80 of funds great to see both. Thank you so much for joining us. What a week, david lets kick it off with you. What did you do, were you caught flatfooted with that 2000point selloff on thursday quest mark. Thereto answers on that, i feel we are caught flatfooted in their sense of theres absolutely no time to react not just this week but over the last weeks. It is the unlike 20,072,008 and surly not like the 2002 bear market. This came so quickly and so violently. I felt we were very prepared in that sense. We were religious asset allocators we have gains in our fixed income we have significant gains in our alternative portfolio that softened the equity loss that is really what an allocation is supposed to do is soften the volatility. So you can look and say markets down 25 a look at the portfolio and say eight, nine, 10 . I dont want to be that 10 and i dont want our equities down 20s but that allocation story really works. Perhaps most positive things i could say. Maria we want to talk about protecting ourselves in this environment, the thing is you could be selling your epfs and youre throwing the baby out with the bathwater. Assign companies that may be are going to continue growing while maybe others are seeing a slowdown in growth. What did you see this week . Tell me in terms of investors out there and whats most important from your standpoint. Panic, panic, etf showed a little bit how healthy wall street is, and the discounts you saw were very, very safe etfs at the end of the week. Thats a sign there are no buyers out there. There are no buyers in fixed income what about equity . Lets talk about both. Equities tend to do better because they are all liquid and they trade every day were fixed income, 90 of the bond funds or etfs dont trade on a given day so there is little less volute engine visibility and most normal in investors arent up to trade bonds. On an active basis. We saw a lot of would say taking a break right there but its a great opportunity. Cement great opportunities now thats for sure. You agree that customer. Certainly thanks i think the dislocation and equities to quantify you look to evaluations in panic, i dont think its time panic is ever been not to viable the question is whats the timeline sometimes panic proves to be viable year later sometimes a week later but buying on panic generally works well. The fixed income is about allocation. Where are we going to go right now to put in equities, were going to get up and fixed income so income managers have to deal the whole lot of selling give though they performed well, yields have collapsed and people are pulling money from there. Its just creates activity in capital market. Maria you so we can sell only you have liquidity. Thats it was all this week. Let me ask you about some of these areas maybe is an overreaction you look at the s p 500, the energy space. This week alone s p energy is down 30 . Of course oil price had a shock with saudi arabia and russia fight. Oil down of the 30s we were just on what 45 or 50. A lot of the Shale Companies have been on 50dollar a barrel oil. We will see some things there is a result. Give us your case on that sector and others. I like to say we are in our. [inaudible] recession right now. Theyve been commodities been falling since and china slowdown started in january. They were worst performing in january and the slightest continued. That is assigned thats were the pain is. The center pain is the Energy Market and thats whats trickling over in the highyield as well. But to me, though or are buying singles this week. I feel like oil is 25 or 30 a barrel thats below shes on 2015. Sure, it may not rally for nine months but those prices really attractive. Spieth 7c would buy energy right here . 2530s a lawyer gnu c. China growth is going to come back you have that support. I didnt sit going to rally immediately. The second area is highyield. Because the highyield debt market, are being hurt because energy bonds got hurt a lot in 2015 and 2016. Also the epicenter came now, but you are seeing high yields a back up to where they were with the financial crisis. If you have some patients and risk tolerance thats rated be buying. On the energy side you have some of the Energy Sector is about 4 of the s p 500 now. Much to my chagrin so that 30 drop did not affect broad markets. I completely agree 30dollar oil is unsustainable. I think russia and saudi are going to blink, and theyre going to blink hard. Maria i want to ask you guys what you think of all of this talk of stimulus. We are going to get a coronavirus package from congress, the white house working on that as well, and i am told in europe if you are here on monday of a coordinated Global Package will take a short break. When we come back we have got it all starts with an invitation. To be our guest. The invitation to lexus sales event now through march 31st. Lease the 2020 rx350 for 409 a month for 36 months and well make your first months payment. Experience amazing at your lexus dealer. Wherever we want to go, autosave your way there with chase. Chase. Make more of whats yours. Obviously its not something any of us expected. But we have to put the safety of our players, our fans, our stakeholders first. And so i think it was the right move. The season is not canceled, i really do think if we can keep her players healthy and the coronavirus if we do start to get resolved over the next month or two, then we have a chance to resume the season and play into the summer. I went back and looked and said we were at the lowes boomer at these last levels, it was december of 2018. So its not like this has been an 18 year bull market and we lost it all in a couple of weeks. Its really only taking us back to december 18. That doesnt help pay the bills, but part two i have a rule i always follow. If i dont know what to do, do nothing. And this is a definition of i dont know what to do market. That was mark cuban owner of the dallas mavericks. He is obviously surprised that the sports world is coming to a halt. Also surprised hes finding opportunities i am back with David Bahnsen and jan van eck. I want to ask of their opportunities and where to hide. You had a fair amount of gold, tell me if thats a place you would recommend investors hide in the middle of this . Or do you want to have a balanced portfolio and some cash and some gold in it at all times . Catches been king during this crisis. I think gold has disappointed those who are looking for it to rally. Gold shares have sold off this week. Our general overview is gold broke out and multi year bear market last summer. And i think if youre ever going to own it, you should own it. I think they muted price action means maybe it has a longer bull market but hasnt performed the way people think. Maria jevon a convert that that comes back on friday and rallies after the 2000point sell off or did to see more selling in terms of you really have to see that flesh out. I did not want to see more selling. I dont know we didnt see a flesh out, but i dont feel comfort and a thousand. Rally its the fourth one in the last two weeks, none of the other three have been sustained. We just dont know. We will hit a bottom, selling us of violence and i dont how to explain that to my clients how different is the past bear markets that slowed drift where we just took our medicine so quickly, its the very different sensation. Its a very different thing to react to. You look ahead and say where we going economically . And the range of outcomes, i have never seen it so wide. I honestly believe you could have a one quarter drop in gdp that would pent up demand coming back and produces a massive q3 Economic Growth quarter. I also think this could last all the way till the end of the year. Both outcomes are on the table, we dont know. Therefore i dont know what an investor should do but be diversified and try to find the spot form on the way. The only point i would make an addition to that is the timeframe. I really think people will be focusing on the Health Outcomes over the next month in the pkks. So there is no way we will know within the next month what the outcome will be. Maybe in a month so you have a month of uncertainty. The market hates uncertainty. So investors need to be prepared for a lot of volatility between now and then. I just dont see us knowing any better. Maria macro put secondquarter gdp on an 8107. Decline for their looking at contraction the second quarter. Question is to be a contraction in thirdquarter . They also expect a rebound in the second half of the year. I dont know if that means third or fourth quarter. They are not saying necessarily for what is the recession, but obviously secondquarters going to be slow. You say take china out . Take china out. You have to look at china. Their Health Results are good now. But what is happening is a very slow back to work. Its not all at once. Im seeing people get back to work, but not huge pentup Economic Activity yet. I dont see that. I think you have to take china into account and if you look at the blend that altogether, i still think we have uncertainty for the next month. But chinas economy is a fraction can supported by consumer relative to our economy. Our consumers dont enjoy this lockdown they want to go back to spending and they wont until theyre ready. Healthcare results are gonna drive everything we are in total agreement there. I think we will have pent up demand to the extent the Health Headlines will allow it. We would will note markets normalize when theres more bad news or stories of breakouts in the markets dont respond. Thats we start to know the mortgage crisis had turned it was kind of ongoing bad news in the foreclosure numbers kept getting worse, but the markets were getting higher. He was just priced in. We were done going down. That number has to come for us as well. Maria jan van eck has a point working to talk to a doctor coming up it is terms of symptoms and a vaccine but we did get monetary and fiscal policy. We did get the Federal Reserve injecting one and a half trillion dollars in the market this week. On thursday, we also had an emergency rate cut from the fed. We know that we had the australia stimulus package the ecb is doing a cms package. The uk cutting interest rates. Your thoughts on what is going on in terms of monetary and fiscal responses. Lamy look at the monetary situs of the dip sets within my country. I think of Monetary Policy is most ineffectual weapon. First of all the 500 billion of repo purchase yesterday lasted about 20 minutes in the market they told to a trolling and happily done a week or two. They came out and announced a full round of qe for which a sustained bond going over six or 12 months, it could be very distorted but the markets are probably on that. We already know theyre going to zero bound, maria. The rates are going to zero. There gonna stay there. So when the economy turns on the healthcare news getting better, you could probably justify 22 the s p again. To go to re rate around that included be low discount rate. Theyre not going to get off the zero bound for a long time. Thats a bigger thing for us to think about 12 month out. Maria thats we have the refinance going because youre borrowing for free. So and businesses a lot better. The most important government officials are actually end your cuomo and bill de blasio were shutting down new york in making this a short a crisis as it can be. With the central bank can do is provide liquidity and thats absolutely crucial. Its not something the person on the street understands, the financial industry, the Balance Sheets are strong, the banks are strong but the money has to flow. Maria would you look to buy some of the pharmaceutical nays that are actually offering the therapeutics him vaccine . Moving doing it way before we heard of this treatment and corona bikers. There are big dividend player and grower which is are metric for public health. A course gilead is ground zero potentially having that therapeutic. We would not go try to speculate on Healthcare Companies and treat them as call options on who may have a miracle drug. Gileads in the game, we arty own it. Merck, amgen, theyre going to play an important part, the private sector doing what it does so wellin our country. Space it all right we will leave you there thank you David Bahnsen and jan van eck. Dont go anywhere mount sinininn limu emu doug [ siren ] give me your hand i can save you. Lots of money with Liberty Mutual we customize your Car Insurance so you only pay for what you need only pay for what you need. Liberty. Liberty. Liberty. Liberty. Can we go get some ice cream . Alright, we gotta stop here first. 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The majority of people are going to get ill with the coronavirus and then improve and they get well and go home. Main thing they need to remember about this is we all should look at our healthcare, how my health is . If im diabetic . Is my sugar under control . A drive part disease and Blood Pressure issues of those under control . Make sure everything is okay in Current Health is very strong determinant of our outcomes. The second important point is getting the flu shot. It does not protect you from coronavirus book, but what we have seen is people who are getting the flu and you dont want to be debilitated by fluid then get another ailment on top of it. Maria steve got to keep your immune system strong. Youve got to keep your body strong, your immune system strong every thing strong. Maria gotta know its coming at us. As rating reports of the day the Hospital Association of america thought 47 of americans will get this. Some people will have it and dont even know they have it. Is that what you believe . That is a reasonable picture to think about. In my job and healthcare, what we try to do is to look at the worstcase scenarios. I dont to frighten everyone but its very possible that it will be widespread. If it is widespread, then i would say that all of us are in it together. We really need to make sure that we protect ourselves and our loved ones. Maria the other day went on the air and i said, because im great sources who we are to augment tens of thousands of cases the United States ultimately hundreds of thousands of the nine states, we are going to see the numbers go up, particularly as we get more test kits in peoples hands. Thats okay its not a death sentence. So it is not a death sentence. The data that we arty have says 122 persons, may be to mortality. Theres a wide variety of mortality data because theyre only testing the very sick. But we did not test everyone. Now we have seen the numbers dramatically improved. Maria what about the readiness of our Healthcare System . If 70 people are going to get sick to have enough hospital beds . I know a lot of our products are coming from china. I dont know how we got into this position were 70 of the active ingredients in our prescription drugs are made in china. And we have to rely on the chinese supply chain to get treatment from a mere sick. That is just a terrible position in the u. S. Is in. Absolutely this is a wakeup call for a lot of people. This is an unprecedented situation that we are finding ourselves in, wheat meeting all of us. Maria i am worried about the elderly and thinking about my own parents in peoples parents, what are we supposed to do about that . If you are diabetic, if you do have preexisting conditions, what is most important in terms of the elderly . Making sure their health is at the top. On the best way possible, we can manage their health. If there diabetic shooters are in control, if they have any other existing condition we can make sure its the best optimize fashion. In making sure that if someone is ill, if i am ill, i should probably silly for my parents. Maria doctor Waleed Javaid thank you very much, coming out more wall street right after this. Its surprising how the bigger a city gets. The smaller it starts to feel. Which makes it even more surprising, how big it feels in here. With sliding rear seats. And more available second row legroom than say. A chevy suburban. This is the completely reimagined 2020 ford escape. Tv sports announcer yeah, thats my man there. Tv sports announcer time out. Lets go to a commercial. Nooooooo not another commercial when you bundle your home, auto and Life Insurance with allstate you could save 25 . In fact, the more you bundle the more you can save. Put the other game on if its important to you allstate can protect it. Home auto and Life Insurance you could save 25 . If its important to you allstate can protect it. What . Bundle and save with allstate. Click or call for a quote today. 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. Maria welcome back coming up on the Program Next Week and founding founder dan niles is my special guest. He is an expert in technology cannot wait did his perspective on the recent activity. Right here. This weekend over the Fox News Channel join us for sunday morning futures of special programming, financier and philanthropist michael milk in special guest. Along with california congressman he did and investigation to china years ago and had terrific expected on that. Plus right here on foxbusiness every weekday tune in from six to 9 00 a. M. Eastern for mornings with maria, on foxbusiness network. I hope youll join me every day as we set the town for the day. That will differ a gent for us for now. Thats it stay safe. Gerry hello, and welcome to the wall street journal at large. What a week it was on wall street and indeed everywhere else. This is the week the coronavirus basically took hold of all of our lives. Every day the News Headlines are virtually nothing more than a playbyplay of the latest on covid19. The disease caused by the pathogen. Efforts by health officials, government leaders, and average citizens to contain it. Massive changes to our daily lives have been made. Large groupings of peoples
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