They are warning the us economy could shrink a 14 in the Second Quarter. Thats coming as the Federal Reserve and global Central Banks across the world announce measures to offset the injured Economic Impact of coronavirus. Join me right now to talk about all of that hank smith. Hanks thanks much for weighing in today we appreciate you joining us, what are you doing in your portfolio in the face of all this . Well, first of all, we are not panicking. We constantly communicate with our clients regarding their asset allocation, we also, for a number of years have always recommend to have enough cash to meet spending needs one year even up to two years out. So, in an environment where you own both stocks and bonds, now is the time to start looking to your adding to your equity positions because that allocation has come down due to the obviously to this bear market. It is a pain trade for sure, but over the past six years, the opposite was equally true where we were trimming equities because they had done so well to go into fixed income that was yielding next to nothing. So this is what disciplined investors do in this environment. And i cannot stress enough that we have to remind ourselves that every recession is followed by an expansion. And by the way, the economy expands seven to eight years for every recession and every bear market is followed by a bull market. And i think that is important to constantly communicate with our clients. Maria this is really good point youre making but lets face it hank you may have great evaluations but they make it even greater they may get even better priced in the selloff continues because you are not looking at any sustained expectation for business to reopen youth got businesses closing you got expectations of zero profits in the real contraction of the Second Quarter. Thats true, and our base case is that we are going to have a very inferior downturn in the Second Quarter that goes into the Third Quarter. But as we self quarantine, and as warmer months approach of this virus like every other virus, will peak and then begin to fade. And once that happens, all consumers feel safe going outside again and spending again, i think you are going to see quite a recovery in the economy and the market will be ahead of that. So hank smith is great to see this morning, thank us. Good to be with you. Joining me right now with more on the phone insight on this chaotic week is alpha1 capital Founding Partner dan niall. Dan thanks for calling in today, well, what a week. Can you assess the week for us and tells over stand in terms this correction . Sure, i would like to say there years when nothing happens and then there are days when years happen. Thats really what youve seen. The last eight trading days, through yesterday, the market had an average move of 7. 4 . The market typically gained 7 . Year. So you have really had these moves incredibly compressed. And rightfully so in the sense that people were just ignoring all of the risk from the coronavirus really through mid february. And then you also had the oil shock at kick. So the speed of this drop is obviously faster than anything we have seen in history. But to some degree is justified because valuations were at some of highest levels in history as well. So im glad you mention the oil story because thats a completely different story has nothing to do with corona virus and more to do with the fight between russia and saudi arabia and the fact that russia would not agree to any production cuts. How significant do you expect the shock to be for the oil players . Do you think we will see a lot of bankruptcy from the shale industry . Absolutely thats why rush is doing this into some extent saudi arabia to its one way of making sure they are put out of business to some degree. It is very rational on their parts with their ability to withstand pain, the cost of production is much lower than the shale producers are so from a long term Strategic Point of view they are taking shortterm pain for longterm gain and it makes a lot of sense for them. Maria dan, this market has lost more than 7 trillion in value since the highs. Are there places to hide in your view . What do you want to do as an investor today question mike should you just be getting out of the way so we have more clarity in terms of healthcare and where we are for vaccine . I think there are two timeframe spray theres a long term and then theres the very shortterm. If you look at the s p, it is down 29 from its peak. It has gone down about 30 , two weeks faster than any prior time in history, including 1987, including the great depression. That tells you how fast it comes down. In the short term, i think it has create interesting opportunities that you brought up. There are three sectors we like quite well and we have been buying into those sectors as the market has been going down. We like the Gaming Sector a lot people talk about super cycles et cetera but if you look at the gaming industry, the last new consuls coming out were in 2013 and on top of it obviously yet people suck at home. Kids are now, not in college anymore theyre learning from home. So these Gaming Companies are going to do quite well. We like 10 cents, we like netties in china, we liked activision and zynga here in the u. S. In addition amazon doing great, and his people have to work from home we think nays like ring central, which we bought recently the stock is down 30 of its type. People know about zoom but ring does a lot of the same thing. You can voice his. We like these nays. Maria dan its great to get your insight thanks much. So my pleasure. So dont go anywhere my interview with treasury secretary Steven Mnuchin is next. I like liberty mutual. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. We do things differently and aother money managers, dont understand why. Because our way works great for us but not for your clients. Thats why were a fiduciary, obligated to put clients first. So, what do you provide . Cookie cutter portfolios . Nope. We tailor portfolios to our clients needs. But you do sell investments that earn you high commissions, right . We dont have those. So, whats in it for you . Our fees are structured so we do better when our clients do better. At Fisher Investments were clearly different. Maria welcome back, the white house stepping up its effort to combat coronavirus and its impact on business, employees, the broader economy. Treasury secretary Steven Mnuchin says that government is taken unprecedented move to shore up the American Economy during this crisis. I cant predict where the markets are today or tomorrow, we are really focused on is providing liquidity to american business, to american workers. I think as you know, this is an unprecedented situation, where for good reason, the government has instructed major parts of the economy to close down so we can win this fight against this virus. This is not going to go on forever. We are going to beat this. And while we are doing that, we understand their impacts on hardworking americans. The president is determined that we are going to support them. So we have announced a trillion dollar plan. The first part of this is 300 billion to go to Small Businesses. That money needs to be used to hire people, keeping people on the payroll, and if they do there will be loan forgiveness. A mess after words for the second component, thats really important, maria, thats 40 that the private workforce of a want to keep this people employed. The second component, i referred to this checks in the mail, but its really money direct deposited for most people we have all of their information. In the plan is 500 billion into crunchers parade the first one would be 1000. Person, 500. Child. The family of four thats a 3000dollar payment. As soon as Congress Passes this, we will get it out in three weeks. I then six weeks later if the president still has a national emergency, we will deliver another 3000, thats a lot of money to hardworking americans who are home because of no fault of their own. In the third component is 200 trillion from more facilities and work with the fed like we have been doing for securing the airlines and other critical industries. Maria you just said moments ago you could have this out within three weeks once Congress Passes it. All morning long, steve forbes been on this program saying we need something now. We need the treasury secretary to call the Federal Reserve and open up the window for Small Business now. So any company that has been solvents before this crisis can get alone now. What about making sure you give the authority to the Federal Reserve to do something along those lines . Welt maria, i think the treasury and the fed up and working literally around the clock this week. They put out and we support with equity theres three facilities last night the press release came out at 1130 and thats because we were working super late last night to get this out. These are very important facilities. They support the money markets, we were very worried that hardworking americans were going to find they could not get their money out of money markets. I can assure you the fed understands theyre under authority. We are working together on them. And where we dont have authority, we are going back to congress. If already asked that. We are focused on being able to provide liquidity to companies that is our objective. In certain cases, i think as you know certain powers were taken away from the fed after the financial crisis, powers that we need will get back. The president is determined to go big and support the American Economy. Maria yes, and yet even in this crisis situation you have some, even republicans pushing back voting no yesterday on this. Because of debt, because they dont think the package is realistic for business. So what are you going to do in terms of politics getting involved in the two sides cant come together and vote on this. Thats why forbes is saying do this now, make sure the window is there at the feds. So welt maria, the things that the fed and we can do we will do. I dont want to go into all the comments on what steve wants us to do, some things we can do some of the things we cannot. Theres a lot of bipartisan support is about protecting the American Economy. You had an overwhelming vote, bipartisan vote innocent in the house. The senate is here working, they are working on this next package. We were on the phone round the clock yesterday. With Mitch Mcconnell and his team, i spoke to Chuck Schumer several times i spoke to the speaker of the she is not here. Think everybody realizes theres going to be massive support for this economy from both sides of the aisle. Maria more with my interview maria more with my interview tto examine investmentgo opportunities firsthand, like innovations in agricultural research. Because your investments deserve the full story. T. Rowe price invest with confidence. In the Transportation Industry without knowing firsthandness the unique challenges in that sector . Coming out here, seeing the infrastructure firsthand, we can make better informed investment decisions. Thats why i go beyond the numbers. Oh no, here comes gthe neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. When jenna ron has a way to give the antibiotics they might make from a vaccine by giving them antibiotics that we have been able to develop in these magical mice that are chief scientific officer discovered and developed, which made these human antibiotics. What we were able to do, our team, as soon as we saw this new virus popping up, they went into the Rapid Response mode, and now we already have hundreds of neutralizing antibiotics which we know can neutralize this virus as we test them in test tubes. We are scaling up as fast as we can. We hope to be in clinical testing sometime soon and manufacturing hundreds of thousands of preventative doses by the end of the summer. Maria welcome back that was the founder, president of general on glenn talking about the breakthroughs in coronavirus for the Company Announcing new advances in treatment and antibiotic programs that could be ready by the summertime. One of the reason secretary mnuchin is off jen optimistic about a bounce back from this crisis. Watch. Maria what about those industries that really need help in terms of what people are calling a bailout here. Larry kudlow, teasing the idea of the government taking equity stakes as part of that plan, you considering that . Welt maria, i would say this is not a bailout. So let me just say for Small Businesses, we are providing liquidity. If people have shut down their restaurants because theyve been told to, thats a not a bailout. Redoing things to encourage them to keep their workers. As it relates to the big company like the airline, we are looking at making secured loans on market terms. We will see if that includes equity or does not include equity. Again we are not going to force things on people. But people who need liquidity, we are going to make sure the taxpayers are compensated fairly. I can assure you, the fed, we, the president are all one 100 focused on providing liquidity to this economy. So, we have told the house and the senate, we need to get legislation done, quickly. But this seems to be done by the beginning of next week. And i think, once you see more and more money coming into the economy, americans are going to feel a lot better and they are going to understand that this is a virus, we are going to get through this. This is not a financial crisis that will go on for years. We are going to destroy this virus in our economy will become roaring back betterthanaverage. Maria where the measures in order to release the money to various industries. Because yes, i understand the Airline Industry is seeing zero business. I understand the crews ships and even the banks. But boeing wants money, specific Companies May want money paid what are the specific measures you are using as an allowance to release money to various industries if is not a bailout . Welt maria, its not a bailout because we have Good Companies that have shut down businesses for 30 days or 60 days or 90 days that are going to open those businesses. So there is going to be a lot of demand. This is not about bailing out bad businesses its not about banks that made bad loans. These are about very, very Good Companies have been instructed to shut down. They need liquidity, thats what they need edit most cases my expectation was they will be able to pay back those lands. On the case of Small Businesses that they cannot afford to pay back those loans it will forgive them. I dont consider that to be a bailout i consider that to help keeping employers and employees hired. Maria i know we are in a very sensitive and fragile moment in time especially going into these next couple of weeks where were going to see the number of cases spike. Should we be ignoring economic dated this point . We just got 281,000 jobless applications, you warned lawmakers we can see unemployment spiking to 20 if action is not taken. Do you stand by the number still . So on to clarify, i was not predicting that. What it said was 40 of our workforces and Small Businesses. I said half of them were left off, or let go, mathematically would be at 20 unemployment. So again, what ive said to the lawmakers in the understand is we want to keep those people employed. That is what is important to do. But the statistics in this short run of economics are obviously not relevant. This is an unprecedented situation where the government , the governments direction we shut down parts of the economy. Now is a timely provide government support. That is the role of the government. Maria s of bank of america on china and america signed by three to half million jobs lost in the quarter. Wondering how significant it will be in Second Quarter. Were talking 8 construction 14 contraction if you listen to j. P. Morgan. Is it fair to say that if what we know from today its the Second Quarter this going to be the sharp contraction or you expecting the second and Third Quarter to be the bulk of it . Whats your timing on this is the bottom line mr. Secretary . I think youre going to see the Second Quarter down. I think people are speculating nobody has a good view of what exactly is. I think youre going to see the thirdquarter pickup and i think youre going to see a gigantic fourthquarter. Maria a gigantic fourthquarter, why . Because you think the coronavirus will be behind . The clarification of the Drug Companies . Why fourthquarter would have a rebound . So i have a lot of confidence in the medical professionals for the best medical system in the world. There are a lot of viral Treatment Center in trial now that are proving very effective. I think theres more being developed. I think there will be work on vaccines. So i think we are going to kill this virus. And we are doing all the right things now to make sure it does not spread. I think youre going to see a lot of pentup demand. Maria my thanks to sec. Treasury Steven Mnuchin. Dunkel anywhere, theres more wall street right after this. You wouldnt accept an incomplete job from anyone else. So why accept it from your allergy pills . Flonase relieves your worst symptoms which most pills dont. Get allinone allergy relief for 24 hours, with flonase. Its a masterstroke of heartache and redemption. You didnt read it, did you . I didnt but i will. The lexus nx. Modern utility for modern obstacles. 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. Maria coming up next began on the program right here done for you to join us for a big show next week black rocks rick reeder my special guest to talk about these rockbottom Interest Rates and how to invest in such an environment. Join us next weekend right here. Plus the kind of on Fox News Channel join for sunday morning futures. We have a big show when i speak with senator marco rubio as well as steve bannon is this crisis affecting the election . And what is marco rubio proposing to do about relations with china. Start smart every weekday tuning right here on foxbusiness weekdays from 69 and eastern with mornings with maria. We have a choice every weekday on foxbusiness. In meantime, have a great rest of the weekend everythanks muchi will see you next time. Gerry hello, welcome to the well entering wall street journal large. The world is a radically different place when this show aired just a week ago. Back then, we here in america, or basically feeling only the first real effects of the coronavirus outbreak. Both are my health and economic standpoint. The number of confirmed cases was storing, the stock market was reeling, and the response the president declared a national emergency. Today, because the virus, our lives in a virtual standstill. Closures are