Between trump and jack ma have an impact on the business dealings between the u. S. And china . China. Trish what do you think of this move for jack to be in there meeting with donald trump . I think alibaba has big plans for the u. S. And i think its an opportunity for him to start at the top and begin that relationship he has been eyeing for a while. Trish he needs a Good Relationship with the president of the united states. I think it has a lot to do with sending a signal to china. I think jack mas relationship with china is every bit as affected by the dynamic with trump as well. Gary what signal are they trying to send . I think accommodation, relationship, working together. There isnt going to be an adversarial piece. Particularly given trumps relationship with the traditional silicon valley. It showed an indication was looking to be in a different footing. Gary the president elect has talked about china taking advantage of the united states, this election was in many parts about getting back at china. Are you optimistic that china as it affects the Business World that we are on a better course than we would have been . I think a lot of it has to do with where was the rhetoric during the campaign versus the reality. My personal opinion is the reality will be less extreme than the rhetoric. China and the u. S. Have to be friends in terms of trade, they have to be in terms of cooperation and business dealing with jeff ma and alibaba. Both parties need each other and we all want a good deal. It will be a negotiating tactic. Trish in terms of the investment world and valuations of u. S. Companies and assets. There are numerous reasons why we are seeing an upside on the market. But the last 8 years china emerged as a biefer u. S. Assets and was willg to put money into the u. S. If it doesnt work both ways. If u. S. Companies are not as easily able to buy chinese companies, then some of that mergers and acquisitions activity could start to soften, does that affect the premium you see on u. S. Companies . I think it has a much bigger impact in real estate than operating entities. But there is a much bigger piece underlying the story. That is the mutual benefits that are at play here. There isnt a clear leverage from either side. They both need each other. I have much wish i could be in a place to say i think its mostly bark and not bite. Trumps selection of some of the trade personnel he picked, particularly pete navarro in my neck of the woods, california trish beats up on china. Thats not mark. Thats a deeply ideological idea. Gar require many important to remember if the infrastructure perhaps are put into place, they will be financed with debt. And well need comiena to buy a lot of that debt. So the relationship could be a somewhat somewhat nonharmonious relationship. But the banker needs to get paid. They need us to succeed if they want their payments. Gar report he merging markets, do you find that an attractive opportunity . We do. When the commodities cycle started to turn, you have got pro commodity producers and users. India and china benefit from falling oil prices. They have great demographic. Young, growing open layings. Thats where you will create wealth. So we like that. We like the valuations. They are cheap. If you look how cheap chinese and russian equities are. Gary brazil, russia, india and china. We are excited about argentina politically and economically is astounding. You look at whats happening trish liquidity. Especially in a place like argentina. They came back to the bond market after the default in 01. They are 15 times but it has been tough up to this point. I might have a lot of similar conclusions for different reasons. I think that it has to be investable from a bottoms up basis. There are so Many Companies with incredible return on invested capital. High operating earnings growth, and low multiples. Finding managers and finding Companies Trading at those levels, being somewhat agnostic about the country locations. Gary stay right there, wall street week will be right back. Announcer the trump rally take a breather. So what happens when the president elect actually take office . Thats n [vo] quickbooks introduces jeanette. And her new business i do, to go. Jeanette was excellent at marrying people. But had trouble getting paid. Not a good time, jeanette. Even worse. Now im uncomfortable. But heres the good news, jeanette got quickbooks. Send that invoice, jeanette. Looks like they viewed it. And, tada paid twice as fast. Oh, shes an efficient officiant. Way to grow, jeanette. Get paid twice as fast. Visit quickbooksdotcom. Trish the trump rally slowed down a bit, but we continue to flirt with 20,000. The market is in a showme mode. Now the Trump Administration has to deliver on it. We want to welcome back mark yusko and david. Gary one of the markets want to see is obamacare. What about healthcare . What about obamacare . Is this something that has to get done right out of the gate . I think one of the challenges of any piece of legislation. There is the headline, then all the tentacles underneath. And they dont want to repeal that part or that part. I think it will be more of an adjustment as opposed to an immediate well rip off the bandaid. Gary what do you want to tell investors about healthcare stocks . Is there something you think is great longterm investment . We are big buyers of healthcare. It started to rally right after the election, then mr. Trump came in and made a comment that he was mad about drug pricing, too, and they werent down again. They are on sale and we like to buy whats on sale. Pharma and bio tech are making lots of money and will make money in the future selling at cheap prices. Its become a couple different sectors. The hospital managed Care Companies are in a totally different world than bio tech and big pharma. A lot of attention about trumps comment and hillarys tweet. Thats on a different plain . Gary why are they in a different world . The entire revenue model could be upended by repeal of obamacare. I dont think it could be, i think it will be. When you look at the things threatening big pharma, its the notion that they need price fixing. Trump flirted with it. But there is no policy meat on the bones. I dont believe we are going to have a price fixing mechanism in this country. So it depresses valuation and makes guys like us buyers. Trish people are talking about less regulation, the corporate and individual side. There is an expectation the market is going to get it and thats been built into valuations. What happens if we dont see it right away . This happens he time. Four or five republican sweeps in the last 100 years and they are all on the same kind of premise. Well cut taxes and decrease regulations. You get this little rally then boom with bush it was down 33, with reagan it was down 27. Then hoofer, it was down a with hoover it wasone lot. Gary are you saying you expect a similar correction come february . We are cautious about the markets. We think they are highly valued. It will take a lot longer for all these things to actually happen. And people are start to say, where is it . In terms of overall market valuations. There is a feel to it its a good time to be selective. All i can say is this is the year it may be true. But to the point about tax reform. We ran a study for clients going back to prereagan tax cuts. Prices started here and ended up here when he got it done. But along the way there was a lot of gyration. There will be a process on capitol hill to get it done. But along the way with the Republican Congress or not. Gary you mentioned the asset managers. You said you have to be selective. Tell us i cant say enough how bullish we are on the energy sector. I truly believe President Trump has the chance to be the energy president. The market is starting to price it. I love spectra energy. And oil services has been a leader and General Electric has a big energy play as well. Trish good to have you here. Wall street week. Well be right back. Announcer does this sounds like a republican who will be friendlier to business . We need new bidding procedures for the drug industry because they are getting away with murder. Ann gary drug stocks took a big hit this week and this is why. The drug industry has been disastrous. They supply our drugs but they dont make them here to a large extent. And the other thing wev have to do is create new bidding procedures for the brug industry because they are getting away with murder, pharma has a lot of lobbies and a lot of power and there is very little bidding on drugs. We are the largest buyer of drugs in the world and yet we dont bid properly. We are going to start bidding and save billions of dollars over a period of time. Trish if you were told that words came out of the mouth of bernie sanders, it would seem believable, right . Charles payne and david asman. This is one of the most interesting things about donald trump. You cant put him in a box. Hes not necessarily partisan as some, especially conservatives would like. He seems to have more of a what makes sense, what is common sense approach to all of this. But rhetoric like this has an effect. Charles donald trump tweeted such things, i remember the tweet and if you read the tea leaves this shouldnt surprise you. Where the u. S. Government can save the taxpayer money he has a great point. But on the other side of this we have to be careful trying to cap profits at pharmaceutical companies. We get 86 billion imported into this country. Its about tax policies. In the case of israel a bunch of brilliant people who know how to make drugs. Its about keep in labor a bad tar rifs or bad trade policies. I would like to see five levels and a way of capping companies from buying a product, like mylan buying the epipen and jacking the drug up. They didnt put any money into the discovery of this yet they are screwing the person out there. Thats usery. David i think what donald trump was talking about partly with regard to the bidding process. The bidding process for medicare, the Prescription Drug companies and the ancillary companies are getting away are murder remember it was a republican who came up with this idea. No incentive, no bidding. I brought a box with me. I have an 80yearold friend who gets six of these boxes every year. They include 250 of stuff for his diabetes. He doesnt have bad diabetes. Doesnt use this. The reason its sent to him is because the company that sends them out probably gets double what they pay for for sending it out from taxpayers. It sits in the corner. He never uses it. Thats where billions of our dollars are going. When donald trump is talking about ending an unfair bidding process. This is what hes talking about. Gary thats a good way of explaining whats going on. When i heard the president elect talk about the lobbyists and the power of the drug lobbyists, those lobbyists are going to still want davids friends to get those products. How does it change . Charles thats a great point. Here is the dirty little secret. One of the reasons it hasnt changed is because of republicans. Republicans in congress have been loathe to use it. Tom price has voted against it. Some how they will have to get the republicans, Big Government the same with importexport bank. You have need someone who doesnt have these allegiances who is financially independent fluff to say, okay, enough. David 100 correct. What would have happened if Hillary Clinton would have become president. She would have put price controls on all pharmaceuticals. A ban on raising prices on pharmaceuticals. The pharmaceutical companies lost market cap the day donald trump said this. Thats nothing compare to what they would lose. With price controls we wouldnt have foreigners spending money. Gary we just had two Portfolio Managers on the program and they like healthcare. Do you like healthcare as an investment . I dont. I think they have serious issue ofs. And you have to have a new drug, three phases and still hope you can get through without being sued to death its a terrible setup for these companies. They have been hurting for a long time. I like large bio techs because they will have to be brought out by those drug companies. Trish what do you think . David i agree 100 with my friend charles. They had the runup. I still think there is some opportunity on the plus side we havent seen yet. As the controls are taken off and if he focuses on the carrots and not the sticks with the inversion issue of. I think there will be opportunities that we dont know about that we havent seen. Gary that does it for us on wall street week. Trish tune in next week for fox business special coverage of the inauguration. And tune in for a special edition of the intelligence report. Ill be there live for the inauguration ball. I have got to get a new dress. Well see you then. G new cars. Youre smart. You already knew that. But its also great for finding the perfect used car. Youll see what a fair price is, and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. At the president elect came out swinging against spies and lies. Mr. Trump holding wideranging, fastmoving well organized news conference. If it produced a lot of news and some drama. I think its a disgrace that information that was false and fake and never happened got released to the public. Lou of the president elects secretary is among our guests tonight. The president elect handed control of his Business Empire to his sons to remove any appearance of a conflict of interest. We will have the story. And mr. Trumps choice for secretary of sta
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