We got a bit of her take on the markets. Take a listen. This is a source of some concern that asset valuations are so high. What we look at is if stock prices and asset prices were more generally were to fall, what would that mean for the economy as a whole and the Financial System is much better capitalized the Banking System is more resill yen resilient. I think our overall judgement is if there that there were to be a decline in asset valuations, it would not damage the core of our Financial System with more on all this lets bring in the professor of finance at the warden Business School still celebrating the eagles World Championship last night. Congratulations. What a game. Jeremy i was there got back to philly at 4 00 a. M im the happiest man wow. What can i say its actually my first super bowl i didnt get to the previous one. But ill never forget it im sure not. Something to treasure forever. That is absolutely true for any fan of philly. As far as market go, i know its short term we try to be careful how significant of an offset to the gloom of friday is today oh, yeah. I mean its important. You had an earlier guest and she had it right we describe the pullback as 5 that is the minimum drop in the market and we havent even had 5 drop. We normally have two or three a year we just had too many momentum players, climbers on i mean that rally just got a little overexcited and, you know, you need a little wrinkle, higher Interest Rates and batteries from exxon and apple disappointment you have the jumping off the train. And thats really what happened. Now nevertheless, you know, i said last december that this year was this year was going to be much more challenging for the markets. Higher Interest Rates are going to be a factor i said its 0 to 10 return much less than 2017. So i dont think there is a bear market here. But there could be a correction. Thats a 10 decline and, you know, even that, you know, we were up 40 since the president ial election even 10 , you know, is not something that is a disaster for investors. Workers have been looking forward to this. There should have been tightness in the labor market showing up as rising wages earlier and now what appears to be happening, is that a positive long term for invefi investors or is there a certain point you say not so much. If wages rise because of productivity, its great it couldnt be better. Unfortunately, the productivity news, you know, in the last quarter wasnt that great. So if wages rise and there isnt productivity, that is an increase in labor unit costs which does put cost pressures on firm i wouldnt get so excited. We had that you have a year over year 2. 9 that is still nothing out of control. We see a the love firmness in Commodity Prices and that Unemployment Rate would tick down to 4. 0. Its well below as everyone knows. But the feds measure for when were going to get inflationary pressures. So those are the challenges for this year. You know, discounting the earnings are rising Interest Rates. I tell my classes at warden, its a struggle between the num rater and denominator. The denominator on discounting the earnings going up and it just depends on which one is going to win about what happens in the stock market. We heard from chair yellen, outgoing chair yellen over the weekend. We played a little bit of that sound bite from the interview, her talk about the markets being potentially overheated we have that pull back friday beginning another pullback again today. We have bounced back but can you be bullish and also still want more of a pullback than what weve seen so far . Do we need a little bit more selling . If you want to know the truth, friday keeps investors honest i mean the worst thing is to think that market is a one way street either on the up side or down side oh, i can make easy money. That seemed like to be the philosophy of bitcoin in december those things are bad for the market markets fluctuate. You know, you have to realize that its not easy money if we get the speculators out, i think that is ultimately healthy for the market i certainly dont think its damaging all right Jeremy Draghi is on the take this morning he says while we can be more confident about the path of inflation, patience and persistence still warranted. Do you see him moving off the stance with the last couple of appearances . And is that why were seeing some action in europe as we have the past couple of weeks yeah. Absolutely you know, europe is about two years behind the United States you know, they had that dip in 2011 because of the debt crisis, you know, we had ours in 2009. I think oohes ending quantitate easing i think theyre going to raise rates. Growth is better in europe this year so, yeah, i think hes following the bernankeyellen cycle just two years lagged and were going to see the rates going up in europe and probably even japan commensurate to what we see in the u. S. Although i think that decline in the collar is a little overdone. We do see that bounce back since friday because people say hey, you know, the ten year might get above three. I like that we got some buying back on the dollar thats also a little factor that has pressured the International Stocks that were benefitting from the declining dollar. Jeremy, curious your take on earnings thus far, especially tech earnings. Disappointment in google perhaps and even in apple. There were spots of good news there too. The 1,000 phone that some people were afraid wouldnt spark the kind of demand that apple was looking for turned out to be the best seller. Yeah. And, hey, you know, we shouldnt forget amazon which on the worst day we had friday managed to still do a great rise. Tech is still, you know, an area that i think is attractive you know, you look at apple, what is it selling for 20 times earnings hot stocks like that as we all remember in 98 99 would sell for 200 times earnings everyone that tells me were just like 98 and 99 going into 2000, i say, no. Were far more reasonable across the board. And even with Interest Rates rising, were still much lower on the Interest Rate sector. So i say markets are fully valued i like a little correction to keep people honest and we might and we might see a little bit more sometime later this year. Its going to be more challenging with those higher Interest Rates but no bear market in my opinion for 2018 jeremy, final most important question would you trade foles and if you didnt, would you start him . No, i think we got to give carson a chance. I think hes going to be hungrier than ever i think he thought he was going to bring the first super bowl to philly and we got to give him that chance and now with foles mvp, i dont know if we can afford to keep him. But thank god we had him this year truly a remarkable fairytale type of ending for the eagles and n. 2018. Just an embarrassment of riches well deserved jeremy, thanks for the time. Congratulations again. Jeremy siegel talking markets and football once again, the dow basically erasing most of the 350 plus point deficit. Lets bring in john rogers, chairman and ceo at aerial investments. John, always great to check in with you thank you for joining us youre welcome. You think were going to have opportunities here in the next few weeks . I do. I continue to be very, very bullish. Im not surprised to see this recovery be as strong as it is i continue to believe that there are opportunities in the market to take advantage of weakness because over the long run and even over the intermediate term, i think markets will go higher how about overseas . Europe is substantially weaker than where we are sit right now going into the close do you see opportunities in the european markets well, im optimistic there. We own a lot of stock in lazard and lazard is a great Investment Banking franchise but they have a great franchise for international and global investing. We were talking with the Management Team last week and they were optimistic what is going on in europe and our International Team believes theres going to be opportunities there too. John, taking a look deeper into emerging markets, whats your expectation on whats going to particularly move there this year is that some place where investors who have a lot of gains perhaps in the u. S. Should be looking to move money if so, is there a particular area that youre looking at whether its Southeast Asia or maybe brazil i think for us its really not in our circle of competence. I spent 35 years here in chicago focusing on small and mid sized domestic equities. We have an International Global team in new york that focuses on that i know weve been, you know, somewhat cone servetive wh somewhat conservative. But they got a nice recovery we think over time its going to be a great place to be but we are cautious in the most recent period. But thats our team in new york that sort of leads that analysis john, in terms of we know some of the minefields in midterm years following a new administration especially, have intrayear declines, i think the average is 16 or so, today blackstones c. O. O. Was on our air and said every historic norm stocks are very, very fully valued says the market could decline between 10 and 20 this year. Do you think thats likely if you do, how are you preparing for it now well, we raised a modest amount of cash just in case there is the inevitable correction that happens. I wouldnt expect anything near 20 . I think because of the earnings season is so strong as jeremy just talked about, tax reform is a big, big deal for domestic equities again, we focus. And i give an example. One of our favorite stocks is Madison Square garden network. Not only do they report great earnings last week, they talked about how much the tax reform is going to help them and the analyst went from a low 2 estimate to close to 3 estimate change. Its extraordinarily cheap i think thats going to happen time and time again. Well see very, very cheap stocks getting cheaper because of tax reform. Yeah, we sometimes lose sight of the names even in the s p that are off the 52 week high. John, always appreciate the time thanks so much john rogers over the aaerial good to be here still ahead, continued coverage of this selloff and bounce back from every angle among those bouncing back, apple after hitting correction territory. Well discuss what is next for the widely held dow component. The dow currently sitting at just below break even. The nasdaq is in the green s p 500 down fractionally. Two,that was awful. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom thats lesson one. Education to take your trading to the next level. Only with td ameritrade. At the time i was in that white house officials wing, the dow bounced back significantly since then that is the context in which that official gave that comment. And, of course, there are Economic Trends going on that the white house likes beyond just the dow although this is an administration that talked about the dow more really than any other. Theyre also very excited about wage gains and job growth. So those are two other statistics that i think youll hear the white house talking about in the days to come if this selloff does continue for now theyre saying theyre concerned any time the dow loses value. They think the fundamentals of the economy are strong speaking the dow, apple, one of the components bouncing back from last weeks selloff briefly trading inside correction territory. Worries do remain surrounding e demand for the iphone x and guidance for the current quarter. Lets bring in a Research Analyst will power and mike olson, good morning good morning to both of you. Good morning. Good morning. Will, lets start with you. Whats the take away from this apple quarter . Clearly not, i would argue, a super cycle upon us. But the x, i mean, people are buying it. And people are, you know, eager perhaps for a x plus at the end of this year is this a positive quarter sfwl where expectations were for iphone shipments there is a disappointment theyre focusing on the trees and not the broader forest when you step back, all the geographies grew double digits year over year theyre going to generate Free Cash Flow, 60 billion in our numbers this year. And we think the overall ecosystem remains healthy and vibrant, you know, as ever how many Consumer Tech companies are going to grow asp 100 or close to 100 year over year i think some disappointment again relative to expectations might have been. I think all in all, looks like, you know, pretty Strong Quarter when you step back mike, that was a pretty impressive trick i think the average selling price of iphones was 796. But is the measure now average revenue per phone bundling in not just the asps but also that Service Revenue which is pretty clearly tied to the device sales . Yeah. I mean, thats hugely important. Were going to hear more and more about Services Growth and services is going to become a bigger part of the story today its only 15 or so revenue. But as we look out over the next several years, we can see it getting to 20 and beyond. When that happens, i think investors start to build it in when theyre doing kind of some of the parts analysis and things like that. And theyll assign a higher multiple to that Services Business so that is an important component. And its a nice annuity stream for the Company Going forward. Mike, talking about components we now have the home pod of course, a little later to the game whether you talk about home assistance you have amazons alexa, of course, and google home. What would it take for that really to be a new pillar for apple . It would take a lot you think about the iphone and Services Given most services are coming from iphone users, thats essentially 80 to 85 of the companys revenue. So if you think about it, this really is a one Product Company for the most part. And if there is another pillar to come, its going to have to be a huge one. Will, tim cook and before him Steve Jobs Used to sort of brag about being able to fit all of apples products on one Conference Room table. You cant do that anymore. Not only cant do you that, but theres one product as mike was just mentioning that is the lions share of revenue and profit should we think of the watch, should we think of the home pod as in a way just moons orbiting around the iphone adding to that average revenue per iphone not as potential breakouts on their own . I think there is fairness to that this is about the apple ecosystem. One of the numbers that tim cook dievillethed is t1. 3 billion active device count. The capitalize on those active devices with new services and opportunities. So all these new devices with the home pod takes off or not, we look at apple watch, air pods, et cetera, those all help solidify the ecosystem, strengthen the brand and overall financial profile. I think thats how we think about it and the reality is there is upside at some point from some of the other new areas and well see if those can develop over time so, mike, if its really all about the phone, how important is it that apple introduce maybe a lower price version of that the iphone x in the fall thats exactly what were expecting. When youlook at where we saw the cycle this year, we were never really talking about the super cycle. Weve been talking about a super long cycle we spread this upgrade to the next gen form factor over a couple of years. It starts with iphone x with this past years launch. And then over the next few months as we look into the fall, investors will begin to anticipate the next layer of that we expect a wider array of nexgen versions of the iphone x and iphone xs as they called it and then the xs plus for a less price conscience consumer who wants the larger real estate screen size. Will, should we expect them to fill the channel as quickly as they did this past quarter at least on new phones . That kind of ebbs and flows i think there were unique circumstances this quarter i think generally with iphone they try to keep it within five to seven weeks of channel inventory. I think thats tough to call from, you know, from quarter to quarter. But, you know, the next big event coming up which, of course, we havent touched on is the cash thats going to come into the could havieghiers and l hear more about that on the next quarterly conference call. Right really quickly on that are we 163 billi 163 billion net and they want to get to zero how much of that do you anticipate will be spending, return to shareholders are you starting to work on that well, i think the bulk of that will be return to shareholders reality is it hasnt been in the companys dna to do a major acquisition. They continue to not to rule that out i guess its ossible but our expectations is that the bulk of that gets, you know, used for a buyback over probably a period of years and probably, you know, speed limit to the current dividend as well mike, given that so much of what apples doing seems to be an ecosystem play. I wonder how much investors should worry about some of these late deliveries. Im not talking about rumors that show dont show wlup people expect. Im talking about air pods which apple couldnt get in stock for several quarters after last Holiday Season now the home pod which didnt arrive on time and is now arriving with software that they talked about at wwdc, thats still not going to work. And then these content deals which frankly seem to be small ball compared to what netflix, hulu, amazon are doing is there an execution issue not