Government bond is attractive compared to risk in stocks right now. 283 on the tenure. Three, another problem is the internal workings of the market exotic product, robot trading up a pushing stocks to rapgd sell ising . As of now the dow is down 6. 5 so poor this week. With will open higher. Do not know how we will close or where well close. But back drop this morning is another chaotic night in congress. But we now do have a budget for the next two years. Thats not necessarily great news for investors. But bottom line on this republican budget Government Spending goes way up and so does the deficit. Again, were hearing the words, debt bomb. Varney company is about to begin. It changes so rapgdly that were going to show you futures all over again. All right we were up 100 now were up 60 youve got to watch this. Literally moment to moment. Wall street is on course for its worst week in six years. It has been a really qield ride for stocks just this week. These are the swings in the dow. We could go friday 600 look at that screen thousand point swings monday and thursday. Tuesday 500 last friday 600 you get the story. Thats a qield ride indeed. Now, there are 17 stocks in the dow 30. Which have reached correction territory that means down 10 prct that their highs and run through them this is how theyre trading right now. May have been down 10 . But gemerk chevron rocketer and gamble are up in premarket trading today. Same story with exxon. Johnson johnson intel and corrected 10 up premarket today. Fisa home depot all of them up better than 1 . Now look a these four. Disney United HealthAmerican Express dow dupont show is gains for year 2018. Oh im sorry, they, im sorry misunked there. These four disney United HealthAmerican Express they are in correction territory. Theyll all be up this morning premarket. Now heres the forward dow stocks which which are still showing ingas for 2018 boeing, cyst can an wall with mart off those are up some more. A very interesting open to the market. For those big name stock. Bob dahl joins us with new investments is on the phone. When does the volatility end . I think it will lessen from here. I think this was the high volatility week and will go down from here but were not going back to low volatility days that we enjoy most of last year into early part of this year that came and that went. Investors need to get used to a little more normal volatility remember volatility has two sides not just down we can go up too. I want you to put yourself in my position speak to our viewers give them some advice what should they do now . First they need to recognize what caused this. You said it well at the front of your show. The beginning of Interest Rate increases thats what the trigger was. But this week wasnt about Interest Rates going up. This week is about the forced leveraging among exotic products. Thats what took the market down. Thats creating opportunity. Because number one, the economy is good. Number two, earnings estimates are still going up. Number try, Banking System is healthy. Number four valuation levels have come down to where they were in early 2016. And number five companies are buying back their stocks. So look, being a hero and trying to claw bottom is hard but i think yesterday was a good day despite being down a thousand point we saw all of the positive technical die fewer new low. Less downside volume so i think the voltity is lowly lessens dollar cost averaging. How unusual thank you. Thank you for being with us. Exactly what we want on a day like this. Youll be back. Thanks, bob. Good stuff. Now, i have to deal with this budget deal. The bottom line is that spending goes straight up. Now, listen to what President Trump just tweeted about the the budget. Ill read it for you. Without more republican it is in congress, we will force to increase spending on things we do not look or what in order to finally after year of dmeetion take ire ka of our military sadly we needed dem votes for passage but elect more republicans in 2018. With us rousers checks university of maryland im widely disappointed with are Republican Party and what theyre doing to us. What say you . Well budget is terrible but just engrass and wholly unnecessary. Certainly we need to do something about defense. We need to spend more money in places but you know there are places where the Defense Budget needs to be reformed. And there are lots of places where it is entitlements need to be reformed to make room for what we need. Instead qee going to go to one trillion deficit you know what will do to interest on rates to american debt. Absolutely but look we always hear it be this debt bomb. It is expression ive been using for proablg 20 years. Debt bomb welcome debt bomb but it never happens. Nothing ever happens. When will it happen . Well going into this mess we were already getting very, very close to the level you know over the next decade where we would be in same boat as spain likely sooner 60 of the federal budget now goes to entitlements within ten years, entitlements will take every single dollar that federal government takes in. That was before the tax cuts. So the government will have to borrow just to keep the lights on. Foreign investors are starting to see this. The premium that the u. S. Bonds used to get that they used to be able to sell them at lower Interest Rates than say other government bonds is gone. Foreign investors realized if they boy a 20 or 30year treasury theyre risking a major capital loss so we are starting to see it ease in. But because we print a reserve currency there isnt going to be some moment where they evacuate and abandon us. But rather were going to pay more and more to threat our debt which is going to create more and more pressure on deficit more and measure pressure on budget answer sooner or later americans have to pay higher taxes and attack a big cut in starngd of living or o finally do something about all of the debt beats getting, you know, fraudulent Social Security claims. 40yearold guys are sit home and watch games and basicliest phenomenon and collect food stamps. Something has to be done this. I dont think we will ever treads on the third rail of american politics which is the radical reform of medicare and Social Security. We will never do it. Disability may be but not Social Security. But Social Security disability one out of 20 americans are on disability now. Thats a beeted thing and do something about it been butout flow of money and medicare and Social Security that has to be stopped if you want a handle on Government Spending on the debt youve got to do that. And you cant do it is the nature of american plucks. Just my opinion. Last word to you. I think youre absolute right one of the things to remember about mr. Oconnell is hes interested many making a good deal rather than doing the right thing hes a legislator not a conservative and he doesnt have 51 conservative votes. As long as youve got collins and who really come from welfare states. Thats where these guys are. There you got leak one out of ten collected welfare you really cant get anything done. We saw that with with the health care debate. They simply werent willing to vote for a bill that makes a reasonable reform on medicaid. Its perfectly fine for Senate Collins in maine to give out welfare to guys who are 5 years old and refuse to work. And until the senators purge people on their republican side who buy votes as if they were you know nancy pelosi, were simply not going to get progress on this thing. Its a political problem. Dream on. [laughter] it is just the way it is. Peter thank you so much for being with us. Back to the wild markets. I want to bring in jeff sikher as you can see it is a wild week. I want to know how much of this wildness was the result of internal market movement. You know the robot trades ets unwinding that kind of thing. How much of that . You have to on monday o the market is moved 1400 point down since monday and reality of this market is a lot of the volatility has created this Incredible Opportunity for professional traders and theyre exploiting volatility to make money. And investors need to realize that theyre being lured into some of this volatility only so that professional trader could wash them out and stream roll them. So what i said and what i said on your show not only do you have that. But you have a lot of investors that have been completely statived out of the bond market. And theyre renting stocks and in order to get dividends. Now, all of a sudden they are waking up to the fact that the opposite of complacency is always and has always been panic, and when we see this volatility, that panic is what results. Dges jeff were going to stick arranged please because we have a lot of big market to cover today. Hold on a second because i really got into it. Get into a big deal. Amazon here question go. Theyre preparing to launch a Delivery Service oivelg going to compete request fedex and ups. Direct competition is called shipping with amazon but if yowpght to go with acronym swa is what it is called what it does is amazon picks pup packages from businesses and ships them on to consumers. Those Third Party Businesses that sell goods on amazon platform. It is not going to come out for a couple of weeks but start in l. A. It will undercut prices of both ups and fedex this is a big deal. Dont forget they actually tested and rolled this out in london last year to Great Success they already have a network of their own drivers. They already have leased up to 40 aircraft. They have an air cargo hub. Fedex on ups knew this was coming but this is huge direct competition from amazon. Whole foods effect. The health care is effect. The Delivery Service effect. Amazon is involved. Got it. Senator rand paul spoke for hours on the senate floor last night and he held up budge vote one of the reason ares why government did shut down very briefly early this morning. Well rands father comes up later this morning on this program. Look at future again you have to check them all of the time because it is moving rapgdly now were going to be up about 90, 100 points to the opening bell this is how were going to open after a truly wild week. More varney after this. I keep checking those futures because all right now were up 100 pointses thats how we like it to open on the upside, of course, weve got 14 minutes to go, that could change. Apples home pod well it huts had the shelves today. Tell me it be. It is expensive two and a half times other devices people are loving expansionive lush sound coming out of the home pod review coming in better than the cardin amazon echo two in terms of the sound and also talking to it pick up your voice and property from further distance and other home devices. So except for you you can still get the Weather Sports alarms but preem driven to distraction with their devices like your google mess. So [laughter] i do know. Nothing drives people more to the brink of insanity than technology this device automatic sweeps up on your phone and puts it in the home pod you dont have to deal request it. Something im in the a fan of apples you know what, what first of all what took them so long to introduce this . And second of all this is completely hostile to any link to any other device. So it really, it really enslaves people to apple which is what theyre trying to do. But apple picking up. This two, three years ago. This is apples tendency but wait until they wheel out an inferior product but a win. Well see. I doubt it. Dont mock it too much. Im staying on the majorities greg from is with us ive not heard from uhuh you in a long, long time. Now greg watches washington and he watches wall street at the same time. So i have the following question we have a selloff and a half on wall street, does that upset President Trumps agenda Going Forward . Way too early to say in my opinion i think by labor day we have gdp growing at 3 which i think is likely if we have unemployment well below 4 i think is likely youll actually be a beneficiary of this tax bill. Maybe the big threat is that the economy could actually overheat. Smg thats interesting so you think he could still the republican could still, win in november . democrats have high motivators as we know but i think vote with their pocketbooks and this economy to me has surplus everywhere. Tax surplus spending stimulus Global Growth labor tied market. I think bit enend of the summer it will be hot and help the republican. I have to tell you that the Republican Party is now vastly expanding Government Spending. And will vastly expand the deficit, the debt call it what you like. I dont like that. I think that Republican Party is abandoned its financial responsibility. What say you . It is an extraordinary story one of the biggest shifts on fiscal policy. I think for the next two or three year were looking at one trillion dollar deficits with a goods economy. If you have a bads economy one trillion dollar deficits may be you could excuse. But the magnitude of these deficits have to choir at the bond market. I think thats why we have had such a volatile woke and getting nervous about deficits and economy that could overheat. Greg do you remember i know you do. That bond vigilantes they were the people who jumped in there and corrected movements in the economy because we were borrowing too much. Do you think theyre vigilantes will come back . Shea sure could. Could be crowding out stuart. I think one of the problems in this town theres no one really who wants to take on any kind of spending whether it is a trim on Social Security and medicare. You look at the mag tutted of the spending increases weve gotten in the last couple of days and you shake your head im not sure the economy needs it right now. No, look were already growing at 3 . Weve already got tax cuts. Weve got bonuses other goodies that are passed through and now comes 320 billion dollars of extra Government Spending in the next two years piling on the surplus here. Also add a important element which is where to we get workers is when i travel arranged country see ceos they tell me their biggest problem is lack of skilled labor. Yet we see the president running to cut illegal immigration. So i think a tight labor market is going to contribute to possibly an overheating in the economy. J i guess we shouldnt complain too much. I mean a very, very Strong Economy is good for every american but im worried about this debt bomb and deficit and the debt and Government Spending. A trillion dollar deficit scarce the hell out of me when economy is growing 3 . And youve got a trillion dollar deficit i think you have a fundamental problem. Last word to you. You cannot grow your way out of this. A good economy will bring revenues up a bit. But at the same time theres got to be some fundamental changes and Neither Party has the political courage to do it. Leave it at that. Greg welcome back good to see you again, sir. Thank you. Thank you. Got to check futures all a of the time now were up about 80 points from the dow. 13 on the s p. 60 on the nasdaq look like Nasdaq Technology going to do well. More varney after this. Achoo snap achoo snap achoo achoo snap snap achoo achoo feel a cold coming on . Zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45 . Shorten your cold with a snap, with zicam. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Well he was a strong performer before the panic then it took a dip but look at this. In video just came in with strong profits and looking to the future saying it is looking pretty rosy in video is now up 9 thats a 19 dollar gain. 239 a share is on in video star performer. Back to the markets overall, were heading into the last trading day of a wild, wild week to get us through this were joined by david deet and jeff sikh or staying with us. First to you, dade a wild week give these poem some advice what are they supposed to do . Those were at home. Fng its all about your Asset Allocation and risk tolerance. Asset that means since 1987 weve seen u draw down between 56 and each time great but feds start tightening. If you cant withstand a bare market 20 or more then you need to start fulling back. But if you got a decent Asset Allocation theres tremendous out there and were buying them today for our clients. I dont understand that at all. [laughter] now look tell me straight, for our viewers youre saying they should get out of some stocks . Sell now and go into others . If you are too far over your squeeze in too much risk to get one or 2 more income if youve betting on continued very low volatility you have to pull back but if you have a careful allocation between cash, stock and fixed income now youre down 10 in stocks because recent movement. Get back in there get back on your horse and buy some good stocks with strong fundamentals. Okay now i understand. So if you have some cash on the sidelines, look for bargain and buy them. Absolutely. Why didnt you say that . [laughter] okay. Advice for our viewers. First thing is a that this market which has been which has been characterized by high level of complacency, i agree with david on the Asset Allocation but the fact is, most people have between 80 and a 90 in stock because theyve been completely starved out of the bond market. And too heavily allocated