Bounce back in the worth session in more than a month pete, i began with you he said the top of the market was on september 2nd, that the bubble has already popped. Were now in the midst of an enormous tech bubble ipo mania, extraordinary valuations and new metrics for valuation, the more fanciful an distant, it seeps the better the stocks performs. Is he right . Are we in the midst of an enormous text bubble, pete i think we are in the midst of certain sections of text that are definitely in a bubble right now, scott theres no doubt about that. We look at some of these names that have absolutely soared to the up side. We all know those names. Zoom would be the poster child you go across the board and say theyre in the right place at the right time but are they fairly priced or are they a little bit in that bubble area i think many of them are but right now, scott, its about growth and there has been growth and cash and last week we heard wre rick riether last friday and youre looking
Alltime high of 70plus thousand on a sevenday average. Steve weiss, turn to you dow down 10 from its high no, we dont have control of the virus. We dont have stimulus were not rounding the corner. We are, as dr. Scott gottlieb said on squawk entering the most difficult phase of the pandemic we have yields lower s ps down for three Straight Days what do we do with this today, steve . Well, ive taken off a number of positions ive added some shorts, added some puts to protect stocks for earnings theyve done a little bit, but ineffective when you look at the carnage thats out there in stocks like u. P. S. And microsoft, which both had good quarters im very cautious on the markets. Were through earnings earnings hasnt been a lift. Even though its a good earnings quarter, put it in perspective its still down 16 year over year so, markets are way overvalued corona is a big issue. I dont see returning to march lows because i checked the number of cases in china and south korea and the philippi
Things that you did in the market today you bought walmart and mic microsoft. Why are you putting money to work in those stocks now why am i putting money to work and then ill get to those stocks we had had a 10 correction. You know ive held cash for a little while im not the onlywaiting for a correction i still have some cash but, look, for this to get worse than a correction, maybe it goes down 12, 13 . I dont know if it to get worse you have to think the fed is ineffective and the cash on the sidelines which we know is there for mutual fund and etf flows isnt going to come flooding in i think it will start coming in. Otherwise, youre predicting the end of the world in 42 years of investing i have yet to see the world ends walmart has a good mixture of brick and mortar with Online Presence has a peg ratio of 2. 0 microsoft has many pistons in the engine whether its azure, the operating system or gaming you see it in the peg ratio which is 2. 2 a 30 times multiple is absolutely reason
Something positive, right, with that rising case count hitting new records, it seems virtually every day, and deaths also starting to move up in knows hardhit states as well with hospitalizations thats certainly been a focus for Market Participants as you guys well know Scott Gottlieb who we follow closely tweeting about the remdesivir news, very encouraged but needs to be confirmed in a prospective trial, appears to be a receipt peck testify analysis of the face three data suggesting a survival benefit in severe Covid Patients. We have made the point many times it is only good news on remdesivir, but lets remember its an infused therapy in the hospital typically for people who are severely ill what we are hoping for and waiting for are significant antivirals that will have an affect on the virus far earlier in its course so that people will feel much more comfortable in resuming behavior because if they were to get it and these were to be available they could immediately take an oral
Tenyear 91 basis points one more way in which the economy in this case has confounded some and the markets had it right yeah. There wasnt a day that we came in and we heard from very big people, rich people, Hedge Fund Managers saying this is ridiculous its fanciful, that the rally itself was uninformed. I admit, look, there were parts of me that said are you kidding me, every morning the airlines will be up big when very few people are flying . It turns out that the hiring took place in the areas that we felt were most devastated. Retail, travel, leisure. And its remarkable because when youre looking for 20 and you have all your scripts all set to talk about the beginning of the next great depression, and then you get the actual numbers, it kind of knocks your socks off. You struggle to think why did we hear so much woe is me the other side says we heard it because 13 is still unfathomable, but its certainly more fathomable than 20 so, i dont know its good. It is good. The president r