Member at your place of worship. Maybe it saves the lives of one of your childrens teachers. Maybe it saves your lives. So, please, i implore you, wear a mask do it for yourself do it for your neighbor. A mask is not a political statement, but it is a good way to start pulling the country together i want to be very clear. The goal of mask wearing is not to make your life less comfortable or take something away from you. Its to give Something Back to all of us, a normal life the goal is to get back to normal as fast as possible and masks are critical in doing that it wont be orever, but thats how well get our nation back, back up to speed economically so we can go back to celebrating birthdays and holidays again so we can attend sporting events again, so we can get back to the lives and connections we shared before the pandemic. It doesnt matter whether or not we always agree with one another. It doesnt matter who you voted for. We are americans and our country is under threat. And now were now called to do the same thing that many proud americans have done for generations throughout our history, rise above our deferences to defend the strength and vie at that time of our nati vitality of our nation thats the character of patriots, thats the character of americans we have to do this together. Wearing a mask might seem like a small act, maybe you think your individual act wont make any difference but throughout our history weve seen over and over how small acts add up to enormous achievements. Its the weight of small acts to the that bend the arc history. Theres nothing the American People cant accomplish when we Work Together as one people, with one mission we can get this virus under control, i promise you we can rebuild our economy back better than it was before. We can address racebased disparities that damaged our country. Its in our power. So lets wear a mask, lets get to work. Thank you. May god bless you and for all those who have lost somebody, our heart goes out to you we know what its like. Our heart goes out to you. Maybe god protect our heath worker workers, our Health Care Workers and all americans. Thank you. That is the president elect joe biden there giving his first covid19 briefing. Also announcing today his transition advisory board. The president elect saying, quote, the challenge before us is now still immense it is growing. There is need for bold action. The president elect also laying out a series of initiatives, including a core of contact tracers, he says much more testing, the scaling up of therapeutic and ultimately a vaccine. The president elect also discussing the Ground Breaking news from pfizer and the progress that it is making on its own vaccine. We will spare no effort to turn the pandemic around says president elect biden when he is sworn in on january 20th lets get to work, lets wear a mask Kayla Tausche watching it all for us kayla, they are moving forward even though the current president of the United States has still yet to concede that election without that concession, the transition team, scott, will not have access to federal funding and meetings with their official counterparts within these agencies to move forward but even so, the president elect has a roughly hourlong briefing with his newly announced covid19 task force. We are still awaiting an official readout of that meeting from the pool that traveling with the president elect. You heard he was attempting to depoliticize the wearing of masks and areaff reaffirming next months the cases and deaths will rise. They also have on the transition web site underscored what they believe is needed from a finance perspective. He believes they will need emergency funding for schools for ppe and Small Businesses to reopen and a Renewable Fund for state and local governments that are facing budget shortfalls, so they dont have to keep going back to congress for more money, which has become an incredibly partisan process on capitol hill and even as this pandemic has ravaged the country under the watch of President Donald Trump, it is now up to the president elect to oversee the deployment of the vaccine. Even this amazing news from pfizer and biotech today, getting it in the hands of the people who need it most will be another challenge. Appreciate that thats Kayla Tausche for us. A new high today for stocks. A beg day in fact all across the board in the markets the s p 500 hitting a new record high, the first high in the Dow Jones Industrial average the Investment Committee to discussion all of the broad implication, joe terranov, you get the first crack at this today. It may not be the finish line but we can see the light at the end of the tunnel. We certainly can. I think whats interesting about today and, first of all, i think today is a day where youre really stress testing the holdings in your portfolio youre looking at what is the performance of select stocks you dont want to have performance thats worse than the nasdaq overall you dont want to have performance thats better than the small caps you want to have that balance between the two. So you really have to look at specific stocks. I think whats important here, scott, is lets remember positioning as it relates to the fixed income market. Because there was coming into the election a lot of belief that you were going to get fiscal stimulus and you would see yields rise and there was positioning accordingly. Very quickly that got reversed now thats getting reversed again. Weve got a tenyear treasury up to 95 basis points money dgoes into fixed income ad growth and values and financials, jopmorgan, citi, ban of america, theyre up near their highs. Marriott was above 130 its now below 118 so you ve so you pra so you really have to watch how a lot of these stocks are trading. Court, you were with us the other day. You were looking forward to the day when we would have good vaccine information. We got that today. So what are you doing now with your portfolio hey, scott. Good to be back again today. Its kind of interesting my portfolio today, ive really kind of been just watching where i am as you mentioned, i have been loading you on names that i liked during a lot of the dips had a great opportunity to have t the toopt opportunity to do that its clearly working out on my side today we have optimism and have hope again and we have certainty in our market, another critical piece as we think about why were up, peter, today at this point in time. At our desk, i said to one of our traders, were better to buy 21 and all of our clients are institutional clients, better to buy 21. By the same token were seeing buys in nails like uber that one would have said its at its high, should you be buying today . Thats showing a conviction in names that once this reopening happens are going to continue to grow as we move forward. So its an exciting time, i think, across sectors, across names and it is a primetime for stock pickers to do just that and pick stocks. Josh, it seems as though, you know, people are buying some of these things indiscriminately today, whether its the travel and leisure stocks, some names th some of the names that courtney mentioned are we supposed to go all in now on some of these epicenter and reopened names you know my names, you know what im in, uber, starbucks, Simon Properties up 25 today, shake shack up 25 you know how im living. We talked about this vaccine and i told you that last week normally i mock stuff like that and laugh at that one event is going to be so binary its going to completely change the game. This case i really felt that it would. There might be an issue in some of the cruise lines and, whatever, it doesnt even matter joe taerranova made point, 150 billion taking the total dollar value in u. S. Fixed income, which is mostly in treasuries, etf, over a trillion dollars this year. Its ridiculous. Its earning nothing its like lighting money on fire if your time horizon is beyond ten years. So you ask me what do you do now . You buy these stocks now well, what do you think that moneys going to do as the doses get out there into the economy next year and we start reclaiming our lives bit by bit . That money is sit in treasuries earning negative real returns versus inflation no of course its not you know how you know . Because that money is being managed by people like me who have return bogeys to hit to help people retire the best thing can you do is not lock at oh my god, ubers up 9 , its up so much, pull the chart back further its done nothing for two years. Doesnt let todays action make you think youre never going to have a chance to buy again you will calm down. Everythings going to be fine. Keep watching us, stop listening to macro smurfs. Its a good point one of the questions i was going to ask the gang, which is the obvious question as josh relays up stock is up 15 to 20 today can i really keep buying it . Josh says if you look at it in that small box, youre missing the bigger story hes right. And if you have if youre fully allocated today, youre having a great day and if youre not, youre going to get opportunities and there are going to be areas in the market were going to have a bridge now to when the economy reopens and there are a lot of stocks out there to joshs points, even if that are up 10 today, 5 , 15, if you look back to a year ago, there were opportunities all the companies, even consumer staples, some of the beer companies. There are so Many Companies out there that were just taken to be dead and werent going to have any operating leverage, any earnings and it was just a company of how much cash can you burn you pick your spots and you can come back in its quite a day. You know, joe just the other day before we got this pfizer news, investors and i had been speaking with i think the overwhelming view started to be and certainly the market started to go there of a biden presidency plus a split congress being pretty darn good for the stock markets outlook now you want to layer in some really positive vaccine news its hard to imagine a better environment that you could think about moving forward for stocks. Agreed. We called it nirvana last week, but now what youve also introduced is the possibility f for economic growth. And that possibility last week with the form as of potential gridlock, i dont know if we were very optimistic about that, we were really reliant on the Federal Reserve to do the hard work for us. Now that possibility is there for economically sensitive equities to perform well, for an environment where were going to be exktihibiting growth. Its reflect of what going on in the u. S. Treasury and its also reflect in the value of the u. S. Dollar look where the dollar is trading today. Previously its been lower dollar equals higher risk assets now were getting confirmation in not just the cyclical outlet for risk asets but the secular outlets for risk assets. What am i supposed to be doing if im not supposed to be deterred by some of the massive moves were getting in some of the names, what am i doing to the flip side of that if i own a peloton today or zoom today or some of those stayathome stocks today, what am i supposed to do . Thats such a great question. I dont think i have a great answer for you i own a couple of stocks that had been done because theyve been seen as the work from home or work from anywhere winners. And now theres a mindshift that, oh, actually, i might go back to my office before im dead im feeling that way i dont think that the play is now, oh, short them because all of a sudden no ones going to ever get on their peloton again. Maybe these reactions are extreme. The one im thinking about reloading is crowd strike. Im in the stock, its definitely trading down. The zooms, though, like the really, really extreme work from anywheres, those might take a few weeks pain so im in that its not a massive position. I really dont know what to do with it, though. Im not sure if im ready to get out of it just yet because i want to be realistic about what this winter is going to be like and how important zoom has become societally i dont think thats going to away just because we return to the office. Court, how do you view that same question . If someone watching us is owning a bunch of these stocks, are they in danger of feeling a lot of pain on the way down . Is it time to get out of some of these . I think its a multipronged question, scott. I do want to also go back to this liquidity factor. Its so, so critical, right . You have the fed telling you youre going to keep rates so. You have 5 trillion, 2 trillion in pe money behind it. When you think about all the cash thats been sitting on the sideline and is still sitting on the sideline, there as still a lot of money people have to put to work. You have to think about fundamentally is something changing in those companies . Do you really think, like josh said, were not longer going to use zoom when we go back to the office no instead of getting to a plane and flying to shanghai to do business, i can now do a zoom call at 3 a. M. And wake up in the morning and have breakfast with my kids not saying were not going to go into work because i want to see josh and go into the office i want to get on my peloton bike my sisters buying a treadmill and cant get one until december reallocate to the places you like lets bring in a couple of voices, tom lee, fund strike global advisers, brian belski. Good to see you on what is a very big and optimistic days for not on investors and this stock market, before america at large. Tom lee, i go to you first for obvious reasons. I y you have told us all along the way to do our best, to look through the noise, the numbers, cases continuing to go up, to focus on the bigger and longer term picture and here we are today seemingly doing that give us your thoughts. Yeah. I mean, i think today is a really good reminder, and josh and courtney mentioned this, that theres another play book that people have that they stuck in their drawer on investing, which is once we get through covid and we can see the againing of the end through therapeutic, vaccines, there is a strong cyclical recovery that will take root everyones been frozing but everyone figured out solutions so theres tons of operating leverage i think this is only maybe a one quarter, even a tenth of a step in what kind of move we can see once the economy gets moving its a great center for epicenter stocks but i think its only a baby step in front of what could be a much larger move brian, as i laid out, the market was already feeling pretty good about the Political Climate it had found itself in, however unexpected to some no blue wave theres a runoff in january in the senate but certainly no blue wave the market got behind the idea that a biden presidency, a split congress, will be pretty darn good for investors thanks for having us. It harkens back to 1995, 1996 and more recently 2019 i dont think people are talking about the potential of a goldie locks scenario i think weed all like to be really smart and pick the bottom but we have to remind people the stock market is a market of stocks as we said on our march 23rd note, we believe the next ten years of a bull market is going to look much different than the first ten years, scott, meaning more about stock picking, more about themes, more about bott s bottomsup fundamentals. I think today is a wonderful example of how to do that. Today with peloton and netflix getting hit, those are brand name, killer stocks you are want to own pick your spots. You have ross stores and t. J. Max up pick one of them this is a quintessential stock picking moment the interesting thing, tom lee, from the investors that i talked to postElection Night and a few days after until biden was declared the president elect was that it was going to be such a Good Environment for stocks. Okay, youre going to get some spending under a biden but maybe not as much as if you had a democratic sweep rates would go up but not through the roof, the bond market wasnt going to go crazy is the way it was told to me by a big investor you do have rates moving up today, 95 baf 5 basis points what happens if that part of the gold goldilocks scenario continues t rise i think the key word there is level, not change. In any other century, even millennium, a 2 tenure would still be a great environment for risk assets, capital investment, for risk taking. And if we talk about rates going from 50 basis points to 90, its still not its still negative rates as long as rates are below nominal gdp. I think its a great rate environment. To me, i think the level of a tenyear is probably more in that 3 , 4 range. I think for now its a risk on signal to see rates rising i think its an inflationary signal and i think another reason to kind of still add to your cyclical epicenter exposure so you were looking at 3,600, tom, on the s p. Were there. And you think now we can get how much more to the up side as a result of what happens happened politically and now with biologically, if you will . Yeah. You know, we still are pretty early in the fourth quarter. You know, normally its a seasonally strong period. Theres over 4. 5 trillion of cash on the sidelines. I think people have been very pos mystic about the future but now with the vaccine and then potential potentially, i think volatility sensitivity is the wrong sentiment, we could still rally 10 from here. Its possible we could see 3900 before the end of the year that would be a remarkable year bellski, does that sound reasonable i think that stocks are going higher the fed has basically signalled were going to be here for three years. Maybe a year from now well be in a different scenario with tenyear treasuries. But i think hes right, our target is 3850 in terms of the best Case Scenario i any we could go higher than that and then well see in 2022 how the market starts to broaden out. What if i said to you rates are going up, youre going to get a smaller stimulus and the political environment may not be as rosey as everybody thinks what happens if all of it falls into place the great point, one, it will be difficult for us to put out our yearahead forecast for 2021 until we know the construct of the congress were going to have a negative impact on energy, financials, health care, maybe even tech where on a shortterm basis we are going to have the stayathome like tech and communications do very well. So i think the construct of the market will look a lot different if we do see a blue wave i think were going to have as investors plenty of time to position accordingly look at today the way the market is moving. Its yes too soon to call this a split government quite