the tech sector is off the recent high in october for more on where investors should look for value in tech, good to have you back. >> thanks for having me. >> what a crazy december and run up into the middle of january. which better reflects mood >> it is funny, you look at last year, markets were down 6%, nasdaq down 4%, tech down 2% if you look at the full year. you think about heading into this year, you had a strong ipo backlog last year, best record since 2014 you had tremendous m and a, best since 2015 before that, couple years before that, so you had a strong backdrop investors, you turn it to investors, they're looking for that alpha you look at the average tech ipo, they have return over 30% by playing in ipos i think it is a -- >> shutdown notwithstanding, even with filings being blocked? >> biggest questions by boards and executives is around interest rates, what it means for investors, the government shutdown, what it means, trades and tariffs, what it all means on the sec side, it pushes things out a little as it gets settled, we're hopeful for near term resolution on that. i think meantime, what you are seeing happening is companies, executives, boards of companies are pushing forward, assuming we have some resolution i thinkyou see a nice strong backlog coming through in '19. >> what about the netflix effect what if they pull an iphone x, raise prices ahead of tepid growth numbers in subscriber growth could we see reversal in investor reaction to the price hike and how strong does subscriber growth have to be >> it is a great question, as carl hit on, shares up 30% this quarter alone, it has been a nice run into that i think they're looking for 9 million subs to be added the real question is more on elasticity of demand the content netflix provides to the price what you get from a typical cable provider, what they've done a good job talking about, i don't think it is mutually exclusive he talked about having a portfolio of subscription services users have, you won't just have hbo go or netflix, but having a portfolio tonight we'll get good insight what they're thinking about. >> should investors buy ahead of earnings >> i can't comment on a specific stock, but i think you've seen strong demand, strong subscriber growth, and the fact they're making price changes probably shows confidence. >> but if we're at peak cash flow burn, right, and they already bury everybody else in terms of content acquisition cost, what's the value in making that delta largely do they bring something else, bring it to the bottom line, pay a dividend >> what's interesting, you've seen subscription offers announced by media players and others, into the teeth of increasing competition you're raising prices what does that tell you that they're seeing in their own data and what can be done interesting to see how they go through tonight. >> what's the lesson in snap as you look at all of the startups looking to ipo they look from the public perspective to be broken, the product isn't growing in engagement, the business model isn't particularly differentiated, and top execs that don't believe in it because they're leaving. what does a startup coming to market take from that. >> it is all about product designer, ceo of the company, controls the company big near term thing is getting out the android roll out, seeing how it resonates in the market you get subscriber growth based on that again. i think that's critical. as far as executives, there's high profile names in the press and they brought in two high profile names as well, but at the end of the day it is coming down to product redesign that evan is doing, roll out of android, how it resonates with users. but there are great lessons. it took the company public to major changes. thinking about that, how do you roll out product so it coalesces with the timing of ipo >> within tech, do you believe as many do that hardware has the disadvantage because of exposure to china, tariffs, the cycle, what have you, it is still about a software eating world? >> i think there's benefits to both sides on the software side of things, you have to love sass components, visible revenue you can see going forward, and you see that in the multiples. look what investors pay for various companies, it gets reflected in multiples i think it is sticky and helpful. >> not like chips are cheap and deserve to be bought first >> investors decide that based on multiples they're willing to pay. i see value across the aspects or verticals in tech, it is a matter of what multiple you're willing to pay it comes down to growth you think you'll see and margins you think you can sustain. >> the escalating crackdown on wow way, is that having ripple effects? >> we're getting a lot of questions on that, where that escalates to, what doesit mean for trade wars what's a likely resolution it is not just the investors asking questions, it is business executives and their boards. what if it lasts longer, what if you have resin the near term a lot of questions at the board level on that. >> is there a substantial take one way or the other on huawei for the companies you're talking to i know there's political noise around the degree to which its product is reliable. but there hasn't been a ton of specific evidence of the product being compromised, especially in the context of cisco's product was compromised by the u.s. government a few years back. in your conversations, what's the read on that >> i'll take it even a level higher you're seeing a lot of conversation around data privacy, security, ip protection you see tim cook at apple write about this a lotte recently. and you see companies talk about it you can take it back to facebook they talked about putting more resources to data, privacy protection i think there's more focus on this from an investor point of view, what's the incremental cost attached to make sure data is protected and ip is protected. >> let's dig into that more. one of the conversations we had multiple times on this show last week, maybe the risk of regulation here in the u.s. had abated, in light of all of the gridlock in d.c., can't even get a partial government shutdown ended right now. on the flip side, senator marco rubio comes out with a privacy bill yesterday is this still very much on the table? >> i think so, i'll let the politician experts comment specifically on that but i will say it is one of the top topics we talk about to boards and executives, how exactly is that going to play out, and what it means for incremental hiring, cost, data protection all of that, what it means to the business model and what it means to serving and protecting the consumer. >> if you're right about pent up demand for ipos, who is chomping at the bit >> there's a list out there in the public domain, i think you'll see companies ramp up into that. as we talk to investors ahead of this, they're looking for incremental alpha. it was a tough year last year, especially having that differentiation from markets and can they get great deals on some of the companies coming out. now, maybe cheaper than they were six months ago, right so can you give these generational time changing companies that you can ride a long time, not just a quarter but for multiple years. >> sounds like it is a first half phenomenon if the shutdown doesn't go on. >> that's one of the questions, how quickly that's resolved. >> these are big companies, a lot are not profitable >> at the end of the day, investors definitely look at profitability and atomic units below that how are unit economics changing, are they positive, getting incrementally better, how do i think of them as they scale over time it is one thing to lose money from cost and another to investment >> sometimes you wish you had estimates. good having you. bob peck still to come, netflix set to report earnings after the bell with subscriber numbers in focus. we tell you what to expect this afternoon. first, look at the worst performing stocks in the dow in today's session. goldman, sachs, verizon, home depot, the worst, dragging down the index. more "squawk alley" is ahead don't go anywhere. or the one awarded by the people? 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(vo) switch to the network awarded by rootmetrics and j.d. power. buy one of our best phones, get one on us. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. alley. markets are mixed. fractional moves now as trade tensions and corporate earnings continue to worry investors. stocks still on track for the fourth straight positive week, the nasdaq on pace for the best month since last january one of our next guests says current air freight shows patterns in asia that could signal more pain for semi conductors and tech more broadly. this is the chart that shows that drop off. which names in sectors should investors turn to for value? donald broughten and maker of the chart, and keith charten good morning to you both donald, i'll start with you. you follow freight flows, they tend to be rare, early, accurate indicator of broader economic growth what are the charts showing you right now? >> well, they are, you're right. the net result of people making things, shipping things, people buying things. freight flows show us that north america continues to be strong, the u.s. economy, trucking economy, whatever metric you want to use to track that. when you look overseas, you see a different story, you see deceleration in europe and asia, particularly in high value, low density end of the freight flow spectrum >> curt, in terms of data you look at, how that adds to your investment thesis, do you see that global economic slowdown in parts of asia and europe as the biggest risk for markets more broadly? >> well, no question, europe and asia are slowing down, and that is a head wind that's why to me i'm constructive on the united states i don't think the rest of the world can accelerate until the united states stabilizes, but i think near term, safe place to be is to be in the u.s >> so do you think that's the most likely next step here that the u.s. stabilizes and the rest of the world is pulled along, or the fear is the u.s. is pulled down by the rest of the world, especially given head winds like the government shutdown and trade tension. >> it could be, but the u.s. ka thot me is strong. earnings are up 6% with dividend yields up something like 2 to 3. that's a pretty good market. i think machines ran the markets before christmas and the holidays, and i think the market selloff was overdone i think the u.s. economy continues to be pretty strong. obviously you've got to watch exports and watch the dollar >> i spoke to jim foote and he said the freight railroad is not seeing signs of slowdown in u.s. economic growth right now, but you have another chart showing the slowdown in europe which is something another transport, fedex, cited recently. should we be watching that more closely? should investors watch that slowdown more closely than perhaps they have been >> well, as you're well aware, morgan, and you and i have talked about this for several weeks, that's certainly something to pay attention to and watch, but i'm going to steal the line out of "a league of their own." you see the way it works, the train moves, not the station and the way it works is the world's largest economy, i.e., ours, is growing and continuing to grow and i'm really looking forward to, a, our dispute with china being settled because they're getting hurt more than we are, so they're going to come to terms and come to the table and we're going to get something worked out there, and i'm looking forward to brexit eventually getting resolved, as it does, that resolvable controversy goes away, and the world's largest economy, the train moves, not the station, and the rest of the world's economies will be dragged along with us. >> and curt, you mention some stocks you see as safer in an environment like this, amazon, microsoft, google. what are your thoughts on apple, facebook, at&t, disney, comcast going down a little bit in the market cap ranks apple and facebook in particular haven't faired well recently but could be argued to belong in that camp. >> technology stocks, long duration stocks, and don't forget rates came down if rates stay lower, that favors technology stocks. the reason i like the obviously gop lus, they have pricing power and will continue to do well we own these names you look at at&t, verizon and 5g, you want to look for disruppors the names you mention are great companies and have a lot of pricing power. >> gentlemen, thanks for joining us when we come back, the latest on brexit after may survives yet another no confidence vote wednesday. get a live report from london. and later, the life and legacy of jack bogle, following his passing yesterday. why buffett said he did more for the individual investor than anyone he's ever known "squawk alley" is back after a break. - why are drivers 50 and over switching to the aarp auto insurance program from the hartford? 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(vo) switch to the network awarded by rootmetrics and j.d. power. buy one of our best phones, get one on us. european markets are closing. we are watching as brexit deliberations continues. >> reporter: couldn't get any more simple, i am afraid it is not. theresa may turned around, said she would like to engage in conversations with the heads of the various opposition parties and would do so in a constructive manner. the leader of the largest, jeremy corbyn said he will not meet with the prime minister, wouldn't like mps to meet with the prime minister unless she promises him she will take the ability of no deal between the uk and eu off the table. the government under theresa may has repeatedly insisted they shouldn't be doing that because of the lack of leverage it provides them when it comes to negotiations europe. other opposition parties said they will not back labor in a future no confidence vote if he doesn't drop that precondition we have a situation where without jeremy corbyn backing away from that request, there's no chance of a second general election, something people are concerned about, and that in some ways reduces the chance of a second referendum. what the government said today is that they will come forward monday with a new plan for brexit, based on conversations that theresa may will be having over the weekend then at the end of january, the 29th, they'll have a fresh vote on plan b. that will leave two months until the deadline for negotiating with the european union runs out, and what they're saying now is they're not looking for extension up here. the europeans confirm they haven't received a request from london to extend that period, guys >> thank you we continue to watch developments after this unbelievable week. let's get to sue herera for a news update. good morning again, sue. >> good morning, carl. good morning, everyone here is what's happening former cbs chairman and ceo les moonves challenging them denying his severance package. cbs says the action was justified after an investigation concluded moonves violated company policy and failed to fully cooperate into the investigation of sexual assault allegations. russian president vladimir putin receiving lavish welcome arriving in belgrade to meet with serbia's president. they maintained close ties with russia even as it seeks european you know membership. in tunisia, thousands went on strike to demand higher pay in a standoff with a government struggling to reduce unemployment all flights in and out of the country's main airport were cancelled. hundreds of farm animals brought to saint peter's basilica for blessings, to celebrate feast day of saint anthony the abbott, the patron saint of domestic animals. they believe the blessing gives them good health and a happy life and they're pretty cute, too that's the news update this hour back downtown to you guys, jon >> thank you, sue. and we're just a few hours away from netflix earnings after the stock's recent surge subscriber numbers are again in focus as they await the streaming service's results, netflix leading the turnaround for faang stocks of late, is now the time to get in on what some say is wall street's favorite trade. victor anthony joinls s us and henry blodget both here at post 9 this morning good to see you. you have a hold on netflix which is bold. the price target you've got is a bit lower than what it is now. >> right >> what do we need to hear on subscriber numbers for the recent price increase, netflix, to still seem positive in investors' minds >> i think you need to see significant beat, expectations and guidance first quarter i think the price increase was a positive in several aspects. one, i think there will be some churn as with all price increases, but i think subscribers largely absorb it, that's one number two, i think there will be some trade down from pricing consumers to lower priced plans, so it will be less password screaming. that could lead to incremental sub growth at the margin third, it is all profit for the price increase they can use that to invest in more original content or let it drop to the bottom line and plug some of the hole in the free cash flow model. >> i'm going to cut you off. we're going to the paeentagon. the president is making remarks on defense let's listen in. [ applause ] >> thank you wow. that's really nice thank you. you're only doing that because i gave you the greatest and biggest budget in our history. and i've now done it two times [ applause ] and i hate to tell the rest of the world, but i'm about to do it three times so that's the only reason you gave me such a nice welcome. thank you very much. and thank you to vice president pence for that wonderful introduction it is an honor to be at the pentagon with so many distinguished military leaders and i especially want to recognize our acting defense secretary, patrick shanahan. he has been fantastic, wherever you may be, patrick, thank you thank you. we were talking just as i came on, i said pat, i have to go now, we're talking defense and also talking offense, can't forget offense either, can we. we have the finest weapons in the world and we are ordering the finest weapons in the world, that you can be sure of. we're here to present the results of my administration's missile defense review our goal is simple to ensure that we can detect and destroy any missile launched against the united states anywhere, anytime, any place as we all know, the best way to keep america safe is to keep america strong and that's what we're doing, stronger than ever. joining us for today's presentation, great champions of missile defense in congress, senator dan sullivan, my friend, thank you, dan, very much, and representative mike turner thank you, mike. thank you very much. also joining us from the department of defense are acting deputy secretary of defense david norquist, david, thank you. secretary mark esper, secretary heather wilson, thank you. undersecretaries of defense michael griffin, ellen lord, and john root, general paul silva, thank you. general mark milley. thank you, mark, thank you thank you. and congratulations, very importantly, congratulations general joseph lingell and james mcconville thank you. before presenting the results of the missile defense review, i want to take a moment to express my deepest condolences to families of the brave american heroes that laid down their lives yesterday in selfless service to our nation. these are great people great, great people. we will never forget their noble and immortal sacrifice this morning i also would like to briefly address another matter of critical national security, the humanitarian and security crisis at our southern border without a strong border, america is defenseless, vulnerable, unprotected. i also want to thank the military for helping us out during the big caravan period. now you have more caravans forming and they're on the way up thousands and thousands of people we don't know where they're from, who they are, nothing. we need strong borders we need strong barriers and walls. nothing else is going to work. everyone knows it. everybody is saying it now just a question of time. this should have been done many years ago. it should have been done really by other presidents and it wasn't, just like many of the other things we're doing that could have been done many years ago, whether it is our negotiations north korea, moving the embassy to jerusalem, so many things were supposed to have been done many years ago and weren't, but we're doing them a wall has to be built we need security at our southern border drugs flow in, tremendous percentages of drugs coming into our country coming from the southern border. we're not going to allow it to happen that's why our homeland security professionals have asked congress for a steel barrier between the ports of entry, to fund more agents, beds, medical supplies and technology, and to close the ridiculous and dangerous immigration loopholes that no country in the world has but us the federal government remains shutdown because congressional democrats refuse to approve border security. we're going to have border security it is going to be tight, it is going to be strong >> that is president trump speaking at the pentagon right now as he personally unveils the long awaited missile defense review defense stocks are at session highs now, after the president said that he has delivered the greatest and biggest budget in u.s. history two times over and is about to do it for a third time, very notable since investors and the industry alike have been wondering whether the defense budget was actually going to be decreased this year. we're expecting those numbers come february. right now, he's also talking about the wall and the situation on the u.s./mexico border as the government remains partially shut down a 27th day we're going to continue to monitor comments and headlines and bring them to you as we get them meantime, i know we have other news out of corporate america right now, carl. >> supervised auction of sears holdings announced that eddie lamb pert is the winning bidder in bankruptcy court. consummation of this would save 45,000 jobs at sears esl will acquire all company assets, including go forward stores on a going teconcern bas. they have a date of february 1 to approve the sale, that's currently scheduled, but wow edd eddie lampert pulled another rabbit out of his hat. to button up the pentagon news, to fact check it, i believe the budget authority for national defense was actually larger in 2010 and 2011, so want to be sure the president gets the numbers right or at least we do. back to the discussion on netflix, henry, you saw this with the iphone x. price goes up. people say it is great i want to be sure investors don't necessarily get burned again, if in fact subscriber growth has slowed as netflix is raising prices, does that change the story line around what netflix is trying to do? >> i think there's a lot more pricing power to go. talking with victor, he thinks we're reaching a limit i can tell you in our household, there's more pricing power, use it all the time. netflix were to inch it up to $20 over times, seems reasonable relative to cable. they're starting to fragment plans as victor talked about there are many ways to slice it. i think the price increase will quickly be old news. there will be a little churn, but ultimately they can have a lot more of that from here >> victor, what's going on with snap now are we seeing something like 8 executives leave the past year, where do you stand on that stock, and is there a turnaround in sight for it? >> my note yesterday is i think evan should take the check from facebook, from google, alphabet, or from amazon or anyone else that comes knocking. clearly there's a management issue at the company that could be handled or fixed with sale of the company to one of the larger media companies or internet companies >> who has the best use for them >> when i look at what facebook has been able to do with instagram in terms of accelerating growth, user growth and advertising on instagram, i think they get a hold of snap, they can do the same thing >> really? why buy them when you copied everything they do and taken the best >> the thing is they haven't really copied that 13 to 24, that captive user base of teenagers, 13 to 24, and they haven't been able to successfully get at the teenagers. those teenagers are still using snap extensively based on my checks and surveys i think if you want exposure to that user base, which i think a lot of advertisers want to get in front of that user base, probably acquiring snap is one of the best ways, google can do it, facebook, maybe amazon, disney, maybe one of the large media companies as well. >> speaking of advertisers, an interesting dynamic playing out in streaming our parent company nbc universal announced a service advertising based if you have a cable subscription, you get it for free, if not you can pay and watch. as we see that roll out, disney, netflix continuing to expand, what do you think is the key asset that differentiates things is it going back to original content, size of total audience, cable and over the top combined? >> i think great original content is critical. lots of folks have a lot of it though, so whoever it is ultimately the service can be so vastly much larger than we already are today. people look at television networks now, we're still caught in a linear world, there's only 24 hours, that's how much content you can have, and sure there's a library. look at that compared to how netflix is approaching it, it can be ultimately many multiples of the size so anybody can be served anytime there's a great show you want to watch, doesn't have to be 50 million people, 500,000 people addicted to it is all you need ultimately what's going to determine is the size of the library, and it sounds odd to think about it >> have you thought about what the next act is for apple and in general for tech overall, just the way the iphone and smart phone era disrupted everything, spurred new companies, new industries, et cetera. what's the next thing going to be, right? on the heels of ces last week, on the heels of the detroit auto show this week, is it going to be mobility? is it going to be things like self driving connected cars and other types of vehicles? >> i don't cover apple but i have done work on self driving cars and autonomous vehicles >> i know. >> thank you for acknowledging that i think that's the next big wave i think it will take a bit longer than i anticipated originally i thought 2019 would have been the year, but i think it will be pushed back significantly. take a lot of engineering resources need to be applied to that technology to get it to the point where it becomes ubiquitous i think companies like uber, lyft, and the traditional auto companies like gm. >> we're wrestling with consumer push back. some reports of the opposition to those -- >> i think it is much farther away than people think perhaps in very limited applications, a specific route in a specific city where buses are effectively a computer is driving it but it is on its own track, fine. but the idea that we're all going to have oodles of time that we don't have now because in a very short period, we'll be facing each other in a living room of a car as it drives itself, forget it. long, decades away >> don't rip up your bus pass. thanks >> i was going to say, augmented reality, virtual reality is the next major technological trend in the next five to ten years. >> lot of people hoping. shares of morgan stanley falling. shares down 4.5% now more "squawk alley" straight ahead. don't go anywhere. ♪ saved you a seat. this round's on me . hey, can you spot me? come on in! find your place, today, with silver sneakers... included with many medicare plans. call the number on the screen now or visit getsilversneakers.com here is what's coming up on the halftime report top of the hour wall street telling you now is the time to buy. andyou need to steer clear of this one time tech darling what stock are we talking about? you have to join us and find out. and pete najarian seeing unusual activity in two big name stocks and one that they love to trade. all that and more on the halftime report. jon? >> see you then, brian, thanks. after the break, we remember the life and legacy of index fund pioneer jack bogle. stay with us hey, batter, batter, batter, batter. [ crowd cheers ] like everyone, i lead a busy life. but i know the importance of having time to do what you love. at comcast we know our customers' time is valuable. that's why we have 2-hour appointment windows, including nights and weekends. so you can do more of what you love. my name is tito, and i'm a tech-house manager at comcast. we're working to make things simple, easy and awesome. legendary investor jack bogle passed away at the age of 89 bob pisani has a closer look at bogle's life and legacy. >> proud to say i'm a jack bogle disciple, became one in 1993, it was obvious people couldn't outperform the markets easily. jack bogle had many highlights of his career. way back in 1975 at the founding of van guard, he recognized the vast majority of active managers rarely meet benchmarks stock pickers were stars precisely he said because they were so rare he later said less than 3% outperform over long periods it was not just active managers didn't outperform, a large part of the problem was the high expenses, even into the early 1990s, it was not unusual for mutual funds to charge 1.5% a year or more, even 2% fo so-called active management. bogle concluded investors as a group must underperform the markets who are participating in this because the costs of fees constitute a direct deduction from the market's return a very important insight despite his love for indexing, bogle was never active management from the outset, vanguard had many actively managed funds and still does, vanguard health care run by investor ed owens even his actively managed funds were cheaper than the funds of his competitors. it was a double whammy the reason for vanguard's success, it attracted passive investors who wanted to invest with the markets at a lower cost and it attracted active investors seeking alpha but also wanted it at a lower price he got both of them. his legacy is still with us today. morning star today, this morning, publish add analysis of 2018 mutual if you had and etf flows showing $207 billion in inflows into the passive index funds that bogle championed and $174 billion in outflows from active funds and that is jack bogle right there. that influence interestingly, he had a very troubled legacy and discussions about etfs he felt many times they encouraged active investing. he had a dispute with john brennan. bren flan went whole who into etfs and vanguard is a monster in the business. that was a few miss from his storied is career. >> sue herera is, mike san tolly to talk more about this. sue, i'd love to start with you. there's market structure, fee structure, vanguard's own internal culture, so many things he had huge influence on. >> absolutely. i think there are a lot of people around this country that would be a lot poorer if it wasn't for jack bogle because basically, he leveled the playing field for them and he also, one of the things that always struck me about jack was that he was a very humble man for a man that had created so much wealth for so many people and created you know, a huge organization owned by its investors. but he was very humble he didn't take much credit for what he had created. and i think that will be part of his legacy he often said that someone asked him if he wished he had more money. he said the only reason he wished he had more money is so that he could give more away he was a very generous man, as well sometimes i think that gets lost, carl, in discussing vanguard and you know, indexing and the types of instruments that he created. but the man himself was very, very humble. >> and frugal. what was the line, why do i need a private jet? i just need my wife to drive me around no doubt about. >> very self-deprecating part of it was because he viewed all principles that bob mentioned, he was an observation. his signature observation was it's a zero sum game what the market gives you minus fees and taxes he felt his entire life i'm this guy talking about what we all can see here i didn't have a break-through beyond that. it's telling for as much as the market has decided yes, there's great wisdom and brilliance in indexing keeping costs low and trillions of dollars flowed that way, he never stopped having to sell the idea. there are always people who think they can be the ones who outperform and he gets pushed back saying indexing is settling for mediocrity but the entire industry has had to go in his direction. >> it's interesting to see the pushback one moment, that you're getting from active management as etf and passive investing has grown over the years you're getting people quite concerned now they're losing their influence they used to have, and so i think the attacks have picked up in the last few years. sue, you were going to say something? >> basically following up on what you both have said. when jack put out the idea of passive investing and indexing, it was pretty her ret cal. he was roundly criticized as creating an instrument that was pretty much useless and then it worked people kind of had to take a second look at it. but bob, you're right. in the last couple years, there has been pushback but jack accepted that. he had no problem defending the instruments that he helped create he felt deep in his soul that it was the right thing to do, that it would allow people to create wealth for themselves without having to pay high fees to someone else to create ta wealth if they even could so you know, he got a lot of pushback in the beginning. >> yeah, and mike, "the wall street journal" described him as the capitalist for the common man. it's interesting because investing used to be really expensive. you now have newer younger generations of young adults coming you and maybe didn't know that but the ripple effects of this, impact of this, the fact you could have robin hood trading platforms out there or fidelity offering funds for no or little fees, this is all direct or indirect a result of his legacy. >> without a doubt. >> all the advisers and apps that ar basically for millennials to get into investing are built on indexing principles and asset allocation. they're not trying to beat the market for the most part exactly true i do think that -- i don't know any company that has trained its customers better than vanguard if you look at the way vanguard customers believe in long holding patterns they believe it it's not like i'm going to go with vanguard because it's convenient. >> try trading a lot of vanguard you will get a nasty message from them. what are you doing >> have relearned his message? this whole idea of the hero who is worth a huge paycheck he didn't take as big a paycheck as he could. >> absolutely. >> his whole idea was giving that back to the people. people like to gamble on individual stocks. have reinternalized his message? >> no, his net worth was $80 million. compared to everybody else is nothing. other key thing in addition to the doll it will yourself thing, you mentioned that he made that possible is the fact that vanguard is a mutual society and still is owned by the mutual funds which means it's owned by the shareholders that in itself is unusual. >> bob, sue, mike, we're glad you're all here and such a depth of knowledge about the man and his legacy appreciate that very much. back after a quick break obviously, the big story of the afternoon will be netflix after the bell tonight along with american express and hopefully get more clarity around the strategy around the price hike and what they see about competition in the year ahead. >> absolutely. also, watching shares of square up about 4.5% on the heels of that buy serve first data deal. >> yeah, it's amazing. netflix up 30% since the start of the year, only two weeks ago. so big hopes i would imagine this to have a lot of momentum depending on the numbers we get. >> ahead of more big names next week including intel and some others sully and the half. >> carl, thank you very much welcome to the halftime report". i'm brian sullivan today the debate is on is the market showing a green light for you to buy or buy more or should you fear a double bottom >> one firm is telling investors the worst is over with it's safe to get back in the water. are they right plus, show of time for netflix the company reports today. we'll get you ahead of the trade. >> shall we play a game? when it comes to electronic arts, one top analyst says no

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