Tom up mount marcy, down mount marcy, across saranac lake. Unbelievable. Jon ferro still on sabbatical. People say, why are you here . To be honest, its because i was moving. Theres a lot of that going on. While you were gone, we got some housing data. One of the things we got out there is a booming Housing Market with the haves. Lisa people who can buy houses will, although people who can be at work and avoid being tormented for being off for one week may do so. Maybe jon will prolong his vacation in order to not be lambasted for being on a sabbatical. What about you . Arent you going to do some portage . I heard you love that. Tom no, we are going to try to get the kids back to school and move forward. We welcome you back on bloomberg television, bloomberg radio. Everyone hearing about this challenge of virtual learning, back in the classroom. Simply getting people back to the office. The summary is it is not happening, is it . Lisa no. My youngest kid is beginning school today online. They have been asking me, when will real school begin . It is quite clear that teachers are being taught her not say real school because for now, is what it is, and we dont know when it will change. When will it go back to more normal . Tom it is real simple, lisa. It is just about a vaccine area weve heard that from everyone along the way. We got to get to a vaccine to get back to normal. Lisa until then, we are focused on things like asthma treatments. We are also focused on apple and how many iphones and ipads to buy given the fact that all of our schools are doing that, which raises a question about valuation, particularly with the big tech shares. Tom let me do a data check here, up 31 points for the s p futures. Up 288. O 88 vix, 21. 26. On the bonds wont give way. We are supposed to get prices lower, yields higher, risk on, and it aint happening. Lisa thats one of the things that has been backstopping beehive flyers. Joining us now, patrick armstrong, Plurimi Wealth chief investment officer. You made the point that right now, apple is worth the same as the entire ftse 100 in london. Does this make sense to you . And then when you stickback when you step back, it makes a lot of sense. Got 3. 8 allocated to apple, and 3. 6 allocated to the whole of the u. K. It is a function of liking apple and the dynamics, but also the sectors that make up ftse 100. Your Oil Companies are going to be worth significantly less a few years from now. The Banking System are being punished by the Interest Rate policies of Central Banks. I do think it makes sense. Apple is not cheap by any measure you look at, but the fundamentals are going to improve with apple, whereas for the u. K. Market as a whole, theres a lot of headwinds. Tom to me it is a proxy for nothing more than revenue growth. People are starving for some form of relative revenue growth. Is that correct . Patrick people are starving for growth of any kind. Apple, on an earnings basis, is more expensive than its ever been. The s p is more expensive than its ever been as well. Real yields are the driver of our kids. Driver of markets. I put a chart of the msci world versus the 10 year real yield, and they are almost a perfect link over the past four years. They go up and down together, and negative real yields at percent. I think mr. Powell is going to lay out the case why real yields can move significantly more negative if needed. Tom i didnt mention in the 1. 03 . Eck, up when i walked in the door, it 0. 99 . Ative for it to break down even further would be a huge steel this morning. We can get off the bloomberg easy. The running pe on apples 38 times earnings. Lisa it is not cheap i any means. It is those negative real yields pushing people into as a value, as someplace perhaps if you didnt want the triple leverage cash fund that tom keene has. How much is buying apple shares a bet on real yields going even further into negative territory . Patrick it is a bet. Weve got a big i. S. Towards all of the end growth in our long positions, and our short positions are cyclical with a lot of debt. We are in an economy that is suffering a massive output cap. Incrementally, things are Getting Better every month, but they are a long way from getting good. The central bank and the government are going to be big drivers of trying to reduce that output cap over the coming quarters. It is a function that you are going to have huge fiscal stimulus and a central bank that wont let the yield curve steepen, and they are going to keep shortened rates anchored at zero. All of that turns into more negative real yield because eventually, inflation does get into the system. All of the drivers that Central Banks and governments are putting in place are to create even jewel in inflation. If you are investing with a medium to longterm outlook, i think that is the biggest thing for markets right now. Lisa what does that mean for some of the less loved areas of the market . I am seeking of small caps, the majority of stocks that are still 25 in the s p below their alltime highs. Patrick ive heard people characterize it as a k shaped recovery, where winners are just going to move higher, and that is the upper shape of decay. Those that are losing will continue to lose because if you are a company that doesnt have pricing power, it is very difficult to blow profitability when the economy isnt growing to its potential. We are a long way from growing towards potential, so you need to be a company thats got pricing power, dominant market share, and can basically capitalize on the weakness of your competitors. Tom these glory stocks, are they under owned by institutions . Patrick that is interesting you say that. Ive got 5. 3 of my global so it is apple, difficult to take a full meaningful position versus the benchmark now even. On the s p 500, i am well above 5 . But even on the global basis, you could argue they are under owned because people have different diversification policies. Tom i am glad you brought this up because while lisa was away, this is a huge thing. Folks, this is really important. Patrick 30 years ago couldnt have a 5 position in apple. You could get out to 3 at best. Do you feel like that is too big a position . Patrick every month, i end up selling it because i bring it back to four 9 , and it drifts to 5. 3 by month end it seems. So i have not been a buyer of apple. Ive and a holder of apple. But there are a lot of Great Companies that are smaller throughout the world. It is not just the faang and the teslas growing throughout the world. There are Quality Growth Companies outside the big five that everyone talks about. In japan, are buy you buying on a hedged basis . Is there a currency of choice for you . Or do you basically make an investment in the nation and what you are buying stock . Patrick i love to have the yen right now. It is a bit of a hedge. Safe havens a good bet at this point. Tom patrick armstrong, thank you so much with Plurimi Wealth this morning. Some good talk on the equity markets. Sort of giving you the framework , lisa, this is a raging debate about should you rebalance, and if you decide to rebalance, how to rebalance. His formula, said he has a formula to work off of. Lisa the way patrick was saying he has to sell every month, every month he is a seller because by the end of the month, apple once again is above his benchmark rate because of how much it is rallying, indicating that you have to take a position to maintain those thresholds. Tom some people agree with that, and others dont. Edwards once told me the way to rebalance is to let them grow. Of course, in this environment, that leads to some odd outcomes to say the least. Lisa it raises the question of systemic importance because of apple is 15 of everybodys portfolio, they cant fail. It raises the question of some of the u. S. china trade wars and tech wars ongoing. This is a really important point. Tom i really wonder what the card is for the chinese in this battle. A be some of that has been put aside as we go to the Republican Convention this week, but you really wonder how beijingwashington relationship is going to frame up as we go into september as well. I want to look at the oil complex, 22. 48 on west texas. Noland as they say, in the adirondacks. Theres oil where it is. That will be a good briefing point. Amrita sen, Energy Aspects chief oil analyst, we are thrilled she could join us. Dow futures up 282. The vix, 22. 37. This is a simulcast. Lisa abramowicz and tom keene. Also with us, jon ferro. This is bloomberg. Good morning. Ritika with the first word news, im ritika gupta. Republicans are ready to formally nominate President Trump for reelection. A scaleddown convention will kick off in charlotte, north carolina. It is a crucial moment for trump , trailing joe biden in national and battleground state polls, and under intense pressure to turn the race around. President trump is scheduled to speak during each of the four nights of the convention. President trump is losing one of his longest serving advisors. Kellyanne conway will leave the white house at the end of the month to spend more time with her children. She was the first woman to steer a white house bid, and then became a Senior Advisor the president. Backtoback storms will deliver a double blow to the gulf coast of this week. More than half of offshore Oil Production is already shut, and residents from texas to florida are bracing for severe weather. Tropical storm marco is rushing towards landfall in louisiana, and a larger storm laura is due to itscern likelihood to grow over warm gulf waters. Belarus lukashenko is vowing more pushback against protests. Lukashenko was shown on state television flying into his residence in a helicopter, carrying an automatic rifle and wearing a bulletproof vest. He claimed a landslide in the august 9 election, which triggered protests. Global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Third quarter data is going to be better than second coded data, but the fed is still purchasing assets. They are still buying bonds, and that is keeping nominal yields very low. I think the yield to look at is the real yield. Tom that was a really important conversation, walking through that nominal yield minus Inflation Expectations takes you to the residual, the real yield. Is a negative now number heading to a bigger negative number. We try to be clear here on surveillance. This is a raging debate. Ithink ive made clear that would rather look at nominal Inflation Expectations rather than focus on the residual. Where are you on this . Do you believe in the real yield like Jonathan Ferro believes in the real yield . Lisa i do believe in the real yield. It sort of shows the push into riskier assets for any kind of income. This sort of idea of stocks being turned on their head as income plays rather than Capital Appreciation plays. But i think those are important because Inflation Expectations are just that, expectations. What are your expectations for inflation . Tom i am glad you brought this up because i read about it a lot this weekend. I thought j. P. Morgan did a found model job on dividing Inflation Expectations into shortterm, where clearly, you saw what tupper lake bait ells for worms. The inflation at the grocery store, the inflation in lumber, and on and on. But j. P. Morgan making clear that it is a shortterm outcome versus a more mediumterm outcome dampened by this slow economy. Lisa inflation in bug spray is a serious concern in the adirondacks. I will say a mark of 2020 is that the bad hits keep on coming. It is almost comical. Theres an asteroid now heading towards her. But theres also a back to back towards earth. But theres also a back to back pair of storms heading towards the gulf. It sort of shows what 2020 is all about. What more bad things can happen . Tom i am going to bring that right over to the two storms, and i noticed in jamaica today, cloudy through the whole week. One of the storms is south of cuba right now. But the storms, and you fold over into the quiet across america, and i think obscure by the Democratic National convention. Obscured by the Republican National convention is a nation running out of that First Tranche of stimulus, and you can feel the hardship out there. Lisa i was particularly moved by a story in a study by goldman ofhs, showing that about 1 4 all temporary layoffs initially after the pandemic will probably become permanent, and millions will still remain unemployed in the United States well into 2021. How does this get factored in at a time when you are seeing record highs on the s p 500, when you are seeing still some sort of pressure from that stimulus . How do you bake this into your models . Tom thats the point, you dont have it in the models right now. Weve got Economic Data coming up today. Let me look at that right now. Its been so busy, i havent even had time to look at the data coming up. Lisa is a lot better at that than i am. A lot of housing data coming up. Weve got confidence numbers as well, durable goods. August 27, we are going to get that second look at gdp, and we forget this is stunning, folks i forget that the annualized gdp statistic quarter to quarter is 32 . Was. Rget how bad that drop lisa jon isnt here, so i am going to represent jon and say that it is very strange that in the United States, we look at the quarterly on an annualized basis to rather than a quarterly basis. That is the caveat, but yes, it was dramatic. At what point does this go into some of the defaults and delinquencies people have been expect, particularly among the big tanks that have set aside more than 40 billion for loans . Tom we welcome you on simulcast come on radio, on television. We are looking at the 10 year tip healed 10 year tips yield. I will get it out on twitter and just a bit. The highlight for me was in the bond market, how the real yield has broken down this morning with futures up 29, and against it, new lows in the real yield 1. 04 . Of energyrita sen aspects. What is the distinction right now and supply demand dynamics in oil . Amrita right now, even with the , how muchrms coming we are recovering, how far away we are from preno from pre2019 levels, while these storms are supportive for crude, it is not really going to move the needle when it comes to the sheer volume of inventory we need to run down. Lisa so what will move . This 40 to 43 range for a while at the upper end of that range. What would it take to break out, and will it break out to the upside of the downside . Amrita honestly, had it not been for the weaker dollar, crude would have been five dollars lower, so this is very much a Financial Market supporting the price of oil. If you look at the contango, which tells you how weak or strong the market is, the crude curves have moved into more of a contango. The front month is far more depressed than futures prices. We will get there. If we take another year or so to run down this massive inventory over time this massive inventory overhang, we are driving stocks right now. The euro gains the hurricanes will help drive that faster, but it will take a good year given that demand is not recovering. Theres a lot of stops and starts. Parts of the u. S. Are Getting Better, parts or not. The rest of the world is the same. Tom thank you so much for joining us today with Energy Aspects. We will get her on for much longer here in a bit. I really want to get to the highlight of the morning. You saw the surge on friday. We launched into a summer weekend. It continues this monday, with futures up 30 moments ago. Right now, futures up 29. Futures, up 272 points. These numbers, even for the bulls and the people that believe in this market, are almost unimaginable. Lisa you really have to distinguish who is driving this. It is apple. It is amazon. It is facebook. It is not necessarily the corner drugstore that is having to shut down. Just the divergence is widening to that k shape, which we now have to look at. Tom i cant emphasize enough how correct it is what we observe here in new york. The separation of two americas is just extraordinary. We will see if the president addresses that throughout the week at the Republican Convention. Coming up, dr. Bremmer of eurasia group. This is bloomberg. Good morning. Tom bloomberg surveillance. Good morning. Lisa abramowicz and tom keene. Jonathan ferro is off this week. Let me do a market check. A lift in the markets. Dow futures up 269 points. The real story is yields have not lifted. This is a key issue. I have a fractional lift in the 10 year. The 30 year bond 1. 35 . Lisa, comment on the tips. , a negative on the real yield. Expectingstors not any meaningful pickup in inflation. Any inflation leads to this negative real yield that continues to go lower. The question this week ahead of the jackson hole summit will be how low can the real yields go. Thistwo wonderful guests hour. Leon cooperman in a bit and right now dr. Bremmer joins us as well. My book of the summer is richard world. Isterial the ian bremmer knows every word of that. He is doing one of the coolest things in international relations. Ian bremmer escapes every summer to nantucket, and you think he is leading the big life, but what he is doing is leaned over a desk working like crazy on his next book. That next book we are in anticipation of, the crisis we need. What is the crisis we need . Ian you would like to believe it is coronavirus because it is the biggest of our lifetime. As we all know crises give us the opportunity to respond to things deeply broken. In thisrd to see environment that we are taking advantage of the opportunities this crisis affords us. Andbook is all about that other such opportunities on our horizon. As we jump from news item to news item, the secretary of state making convenient trip to israel so he can speak from jerusalem to support his president with his evangelical base. Comment on the appropriateness of the secretary of state speaking at a convention from jerusalem. Ian there is not much this administration is concerned about in terms of symbolic appropriateness i have never seen anyone of the white house say we cannot do that because it would not be appropriate. That is not the way they think. Frankly, it is not the way their base wants them to be. Lets be clear. The u. S. Relationship with best ins one of trumps the world. His Foreign Policy successes are more about israel than just about anywhere else. Remember they move the embassy you would not be surprised if mike pompeo is speaking from the new u. S. Embassy that many administrations have supported but no one had done. You also have a normalization of relationships between the , somethingd uae actually facilitated by the Trump Administration. Itks like mom pompeo looks like mike pompeo is going to sudan after that. My understanding is sudan is also going to normalize. It will not stop with the uae. That is something. Since we usually beat up on trump in terms of Foreign Policy failing and how different leaders do not like him, this is one where they do. Tom forgetting about the way they do it or the discourse or the town, what is the distinction of a biden Foreign Policy and a second term trump Foreign Policy . Ian the biggest difference is probably your. President trump and the entire administration believes the eu is bad for the United States. They want to deal individually with european governments. They strongly supported brexit. President biden would be the antithesis of that. He would support a stronger eu. He would build up the multilateral aspects of that relationship. On china, the Bided Administration and the Trump Administration would be almost identical. Dnc, interesting from the you did not hear anyone talking about china, despite the fact that is probably the single issue that animates President Trump the most internationally. It is because, quietly when you talk to Bidens National security team, they will have problems with the way trump does some of these things, but in terms of taiwan or hong kong, phase one trade deal, all of that. Biden andtrump trump are nearly identical. Lisa lets talk about china. President trump has said he will ban all transaction of u. S. Businesses with the likes of tencent and tiktoks parent company. We have seen him dial back some of those threats. Where are we and how pivotal is that in the relationship between china and the u. S. . Ian it is significant. I would not say it is pivotable. It is pivotal. Huawei is the most Important Technology company for china. They are using it to drive 5g, which is their effort to control the internet of things and all of the data and the monetization of that data and the advances in ai that come from it. We saw tougher efforts against huawei and more Companies Put on watch lists if they are providing semiconductors and other critical pieces of supply to huawei. They have semiconductors thrown out. Within a year they are in serious trouble. I think on every issue that matters between the u. S. And china, whether it is national ,ecurity or the economy or tech the relationship between the u. S. And china is heading in a bad direction. Kushner. King to jared softerbeing considerably then Peter Navarro on issues like the importance of still doing business with china, not breaking Tech Companies ability to engage that i would see from others like lighthizer or pompeo in particular. General, wer, in know where this relationship is heading the matter who wins in november. It is probably the most important geopolitical factor for the markets by a factor of magnitude. Lisa the way you distinguish that is important, the idea that tencent shares rallying with the idea that perhaps President Trump is softening his stance. The direction of travel is what to watch. Niall ferguson writing joe biden could end up in wartime president , talking about the concern some have that the u. S. China tit for tat will lead to a hot war. You think we are getting closer to that . Ian no. I wrote neil after he wrote that piece and said it amused me because he has become a bit of a bomb thrower on that issue. I think we are in a Technology Cold war with the chinese where we want their Tech Companies to fail and will punish not just those companies but those that work with them. The likelihood of a hot war the chinese truly do not want one. Their asymmetric capabilities compared to the United States. They are a Regional Military power. They are nowhere close to american capacity. They still understand there is a lot we work on together. No matter how bad the u. S. China relationship gets, i still think will be selling them crude oil. No matter how bad it gets, i still think when we go to walmart will be buying a lot of goods made in china. I still think a lot of our universities will be working hard to make sure chinese rates, students get because otherwise those colleges will be in a lot of trouble. ,ot only do i not see a hot war i think there are limitations to how about the relationship or gap, and they are considerably how about the relationship will get, and i think there considerably greater than the russians. Tom i want to turn to the future for mr. Erdogan. There have been three or four fromans across the span 2002. Which erdogan is affecting greece, affecting hydrocarbons north of crete, is affecting libya . Ian in libya we have a cease fire that seems to be able to stick. That is a good thing. I would say erdogan recognized overplaying his hand will only lead to military confrontation. Want the same thing he has been through with syria with their claims for a buffer zone but backing through and the russians forced them hard. I think the same thing is true in the east mediterranean. They are saying they will drill, and that is because it is easier to beat up on the greeks by themselves when you have divisions inside the eu unwilling to have a united front against turkey. That is frustrating to the greeks. The problem is turkey is in massive economic trouble. The turkish lira continues to fall. The indebtedness is a serious problem. Medium enterprises are doing very badly. You arere erdogan and thinking throughout you can continue to lead the country and not end up in jail, and a turkish prison is not a fun place to be, you are thinking about what you can do to rally the population behind you. A lot of this is over nationalism and bomb throwing. It is not getting involved in serious military confrontation. Is savvy enough to understand how deeply he does not want to go. Remember the turkeyrussia relationship was totally broken, it was erdogan who ended up apologizing because it was hurting his economy. He understands he can only go so far. Tom ian bremmer, thank you so much. Good writing to you. He is with eurasia group. We are looking forward to their annual report at the first of the year. Turkish lira, 7. 37. That is an almost sixfigure move, not through record weakness, but nevertheless there is a velocity on turkish lira that is quite important. David westin with the Republican National Convention Coverage at 10 00 tonight. It will be a different convention than what we saw last week. Worldwide, a simulcast. This is bloomberg. Ritika democratic president ial nominee joe biden is hitting back on President Trumps comments about his age. Trump has made bidens fitness for office a central line for attack in his reelection campaign, calling the former Vice President confused and diminished. Aded tells abc it is legitimate question but stops at trumps characterization. Be 78cted joe biden would on inauguration day, making him the oldest president ever to serve. And if he is elected to a second term he would surpass that mark. Mike pompeo is hoping other countries will join the uae in normalizing relations with israel. He made the remarks alongside president benjamin netanyahu. Also planning to visit sudan and bahrain. Trade negotiator is fighting to keep his job. For attendinging a golf Society Dinner in ireland during the coronavirus pandemic. There was a statement of support for him last week, but the head of the eus executive arm has asked for a full report of the event, indicating he is not in the clear. New zealand Prime Minister says the lockdown in auckland will last an extra four days as authorities try to stamp out an outbreak of the coronavirus. The Prime Minister says authorities need to be sure they are not seeing too many u. K. Global news global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. Tom good morning. Lisa abramowicz and tom keene. Jonathan ferro is off. Right now our interview of the day on the future of global wall street. He was the first kid in his family to go to college. He ended up landing at xerox and went on to Columbia University with an mba and landed at a small investment shop a million years ago. There he built their Investment Research department. I winner for nine or 10 years in a row. Leon cooperman joins us. It with the gentleman from omega. I want to talk about the future of Goldman Sachs. You have a beloved relationship. You and i have talked about this many times before. I guess theyre trying to be a retail bank. We went from lloyd to david. How is your Goldman Sachs doing . Leon i think they are doing very well. I do not expect this question. I retired from Goldman Sachs at forend of 1991, so im gone more than 20 years, closer to 30 years. Things have changed, but i have an extraordinarily high regard for the firm, they have a great culture, they are terrific people, but in all honesty i am not current. Tom that is diplomatic. Leon i made a big mistake when i got my stock when they went public i gave it all to charity. What is so important is this experiment of trying to do investment banking, trying to do Investment Research and strategy as you did and Goldman Sachs asset management, and also trying to be a bank. Do you think that can be a successful strategy . I am sure if Goldman Sachs pursues it it will be a successful strategy. What can i say . I do not run the shop. When i was there we were private partnership. We used to laugh about the banks. Then what happened during the financial crisis in 2008, they were forced to become a bank to survive. They will go with the flow. When i was there they were very reluctant to get into Money Management. Now they are in Money Management with two feet. They adapt to the environment, they are smart people, they are good people. Tom Jerome Powell will speak at jackson hole this week. Tell me how you perceive the Interest Rate structure the fed has set . What has the fed wrought on global wall street . Leon theyve created a real speculative bubble. I have to admit i am uncomfortable at the present time, not because of the virus, that is a factor, but i am focused on something the market is not focused on. That is the amount of debt that is being created. Who pays for the party when the party is over . We just celebrated our 244th birthday. Fromok us 244 years to go zero National Debt to 21 trillion. That is a growth rate in debt far in excess of what the economy is growing at. I think that will be a problem down the road. They have created a speculative environment. I will give be some statistics. Apple announced a four for one split on july 30. The 20 day average call volume at that time was 721,000 calls. Tradedst friday, apple 2. 1 million calls, three times the average for 20 days. The stock is up 17 since the announcement of the split. Tesla announced their five or one split august 11. Same thing. Big increase in call volume. The stock is up 49 since the split was announced against the s p up 1. 9 . Last time i checked if someone gave me five singles for five dollar bills, it not create any wealth. Lisa that was the old calculation. This is the new calculation when you have a big component of robinhood investors. That is one theory. What is riskier . The highflying stocks or bonds . Bondsno question represent return free rest. That is what works in favor of the stock market. What im not fully appreciating is what a zero Interest Rate environment does for stocks. I was focused on the fact we have had zero Interest Rates in japan and europe and their stock survivor six point below the United States market. I think low Interest Rates look are indicative of a problem economy. We have had artificial support for the economy since 2008. 13 years. I do not look at that as being a positive. I look at that as possibly being a negative. Your steven rattner, close to mike bloomberg, who i have enormous respect for, wrote an article on the times oped page, the economic recovery that is not. Zero Interest Rates is creating a speculative tone to the market, i have said for months that we are dealing with three markets. Not one market. The first market is the faang market, and frankly these are fine companies, these Technology Companies whose demand has been pulled forward by at least five years due to the virus. Cheap, but by the historical standards of the nifty 50 of 1972 and the Technology Bubble of 2000, they are not in any way expensive. People can con drop whatever they want to conjure up your tom i want to go they want to conjure up. Tom i want to go through this. Cooperman ofeon omega. Also mr. Ratner writing an essay on markets. Steve rattner managing some of the assets of mike bloomberg. He has appeared with us many times before. Leon cooperman, to the world of you learned that Columbia Business School ewa 6040 efficient market of a 60 40 efficient market. What is the pooper and theory given the distortions we have . Can you stay with Investment Science or you have to invent something new for the next 10 years . Leon i am 77 years of age. I have no clients. I do what makes me comfortable. Right now i have very few bonds. I think bonds represent return free rest. I was beginning to explain to you there are three markets, there is the faang market, ritually appraised but not ridiculously appraised. Then the robinhood market, which is ridiculous. Totally ridiculous. I said this on tv about a month ago the market would end in tears. The next day some young man committed suicide. Carl icahn is as bright as they,. He liquidates his position in and it is. 72 a Share Trading at five dollars. You look at what is going on the robinhood platform, eastman kodak, robinhood platform, tesla, robinhood platform. That will end in tears. I have no interest in that market. The third market is everything else. I give a shout out to my former partner sam montini who did great work on Something Like mr. Cooper. I own it, i like it, i would add to it right now. He is smarter than the average guy. The economy reported earnings in the second quarter, 500 million in cash earnings, 50 of the market value of the company in one quarter. Everyone was talking about the stock being worth 12 or 13. We just because of time, were talking about the future of global wall street. Can you own the banks, and if mr. Jarman is running sterling if mr. Dimon is running sterling performers, can you acquire shares in jp morgan . Leon i could. I own citibank and im concerned about financial conditions so im not adding to my banks. I think they are cheap group. Do not worry about goldman. Goldman will be fine. They will go with the flow and figure out what they have to do. Lisa perhaps dont worry about goldman, but what about hedge funds. If you are starting your career out now, would you start a hedge fund or would you stay in the private realm, would you stay away from that industry . Leon let me tell you what has happened. Maybe indirectly i will answer your question. 2008 andme to me in said i want to invest in a hedge you do not want to be in a hedge fund, you want to be in a to return vehicle. Hedge funds are hedged, they have a short position. We are now in front of a 10 year bull market in the economy, tenure bull run in the stock market. You do not want to have any hedges. You want to be bullish in investment. You wouldve had me arrested. Now, everybody says the passive index will beat the hedge funds, we do not want to be in the hedge funds. Now is the time you want to be fully invested on the long side and not have a hedge on . I say no. I think hedge funds make sense now. The people who went into hedge funds in 2008 are disenchanted, but the fact is they made that decision. I retired at the top. I went to have a life of my own. Im very focused on philanthropy. I tell the young kids that i meet with, i give them a quote. I have to find it. Tom we are out of time. All i can say is that a phenomenal backdrop in front of three guys on madison avenue, or the island you are on, lisa and i want to visit in february. Lisa yes. Leon i am illiterate technologically. I pressed a button and that background appeared, i cannot get rid of it. [laughter] i am a florida resident. Am you are doing this to get tax dodge from the irs. That is what he is doing. Leon i am in florida. I love it here. Tom leon cooperman is in florida. [laughter] thank you so much with omega. Futures up 29. Can i get a backdrop . Lisa no chance. Tom i just want have a backdrop so i look like i am in florida. Lisa lord. Tom it would be better. It is a simulcast. Taylor from new york city for our viewers worldwide, i am taylor riggs. The countdown to the open starts right now. 30 minutes until the opening bell. Just off four straight weeks of gains on all of the major averages. Record highs on friday. All of this extending into what could be what could be a fit straight week of gains. Leon cooperman just told us do not underestimate the impact of zero rate policy on the buoyancy of the stock market. We will begin with the big issue. Bears are going extinct amid a record rebound in u. S. Equities. The broadbased pickup is there. We have retraced the entire bear market. The economy is doing pretty well. Complete vshaped recovery in u. S. Retail sales. You look at pmi, you look at retail sales, you look at housing activity. Global trade picking up. We have come a long way. Momentum is powerful. It has