Cases. Can the bulls hold on all winter . Amazon shaking up the Prescription Drug business with the launch of amazon pharmacy e and a lot more investors will be adding tesla to their portfolio when electric Vehicle Company joins the s p 500 in december. Can tesla maintain its dominance . My colleagues, ben levisohn, carlton english and jack howe. So, ben, interesting market this week. The dow and the s p were down ever so slightly, the nasdaq and small caps were up. What are traders looking at . Well, it was interesting, its a week that felt like it should have been a really down pretty hard. We had the treasury ending some programs that the fed has to support the economy, we had bad data the, retail sales disappointing, jobless claims, manufacturing surveys were disappointing and, of course, theres covid which continues to spread a around the country, cuff fews being imposed, new York City Schools going to remote learning. It looks really bad, except the dow finished down 0. 7, the s p down 0. 8, the nasdaq was up 0. 2, and the russell 2000 was up 2 president all because of the 2 all because of the vaccine news. Pfizer and biontech released their full data, which was fantastic, and applied for an emergency use authorization. And whats interesting now is that the market isnt shooting higher when this news comes out, but its becoming a support for the market. Its almost as if theres a vaccine put under the market thats supporting things. Jack interesting. Do you think theres also an element of that bad news is good news situation that sometimes happens . Do traders expect that this bad Economic News and the covid news might increase the odds that well get stimulus from congress . I think thats definitely in play here. We had a little murmur of talks between schumer and mcconnell, and i think that the market whenever with it looks around and sees that, okay, maybe things arent going well, it does get a little bit of hope that, yeah with, stimulus might come, fiscal or even monetary stimulus. Jack lets go to carltonful really interesting news that was about the worst kept secret on wall street which is that amazon was going to go into the pharmacy business. And yet still the competitors, the cvss and the walgreens just got absolutely hammered. Yeah. Its really interesting because this wasnt a total surprise when you consider that amazon was looking to get into this business. But the brick, the traditional brick and mortar pharmacies, they did suffer in the trading because of it. Finish now, the end game is kind of interesting here. You know, how much of a dent it will put this their business because while amazon is able to offer prescriptions online, you have to realize that pharmacies have also been enhancing their offerings, you know, they offer the flu shot, serve as kind of minute clinics for people or even if you just have a common cold and you want to talk to someone about which over the counter medication you want, youre able to do that in a pharmacy whereas yaw wont be able to do that with amazon online. Jack i think this business is almost 18 percent of the u. S. Economy, and its going to be so big, hes got to look for big game to hunt down. Its ripe for innovation, right . How many times do we have to fill out those forms at the doctors office, stand and is wait for the prescription . So my question is, okay, he eats the pharmacies now, maybe all of health care, what does he go after next . He has ecommerce, he has entertainment, i think banking would be the next logical step, but well see. Jack absolutely. Electric cars, possibly not tomorrow. Maybe someday. Jack, tell us about tesla. This company will go into the s p 500 index as the largest freshman ever to enter that class. Yeah. Just in time for christmas. If youve been agonizing over whether to buy tesla, you dont have to worry about it anymore, youre getting it whether you like it or not in your s p 500 if you have one, and everyone has one. Tesla will go in as the seventh largest company. This is what happens when a stock goes up every day and for years you say, ah, that company doesnt deserve to go into the index yet, its a flash in the pan, ignore it, ignore it. By the time you have to add it, its humongous. S p might have to add it in pieces, the stock market values 470 billion at this point. If you ask why all the excitement over tesla if you havent been following it closely, Morgan Stanley had a report out recently that said if you look at gm whos been a player in electric vehicles for decades, they think by 2030 that gm might sell a million electric vehicles per year. And if it does, by that point they think itll be eight years behind tesla in reaching that mark. Everybodys behind tesla and electric vehicles right now. Jack and last time i checked, gm had not launched any rockets which elon musk has. Its a pretty impressive companies. Thats right. Jack coming up, ed yardeni predicts 2020 will be a very good year. Hell tell us why, thats next. harold twelve hundred strings of lights. betsy quarter mile of tinsel. harold and real snow all the way from switzerland. betsy hmmhm. Gonna be tough to top. betsy well played. vo add some thrill to your wish list. At the season of audi sales event. Get exceptional offers now. To syour body needs routine. System, centrum helps your immune defenses every day, with vitamin c, d and zinc. Season, after season. Ace your immune support, with centrum. Now every bath fitter bathbath fis installed quickly, safely, and beautifully, with a lifetime warranty. Go from old to new. From worn to wow. The beautiful bath youve always wanted, done right, installed by one expert technician, all in one day. Weve been creating moments like these for 35 years, and were here to help you get started. Book your free virtual or inhome Design Consultation today. [ engines revving ] its amazing to see them in the wild like th shhh. [ engine revs ] for those who were born to ride, theres progressive. Jack once we are all able to get a covid vaccination, pentup demand could lead to an economic boom. Thats why economic strategist ed yardeni is optimistic. I do want do you about tension between the Federal Reserve and the treasury department. Late this past week secretary mnuchin announced he would not, tend several emergency lending programs that the fed said, quote, were needed to backstop our vulnerable economy. Youre a close watcher of the fed. Should investors be worried about this . Not really. Im going to take the treasury is secretary at his word. He basically indicated that the fed hadnt used some of the funds than provided to the fed for lending out as a result of the cares act, and he wants the money reallocated. And i think it could be reallocated to those who are unemployed and extending some of the benefits. So i think thats really all there is to it. As it is, were going to have a new treasury secretary in january, and everything could change again then. Jack sure. A lot of people are wondererring who thats going to be. But lets take to the markets. Obviously, since the pfizer and moderna announcements, weve seen a nice rally. Not surprisingly, some of the travel and leisure stocks, a lot of the airlines popped, but it was actually an even broader rally. Industrials did well, energy did well, and you think thats an important sign. Its very important because there was a lot of concern that the bull market over the past couple of years has been very narrow, just kind of focused on what i call the magnificent five, the wig five big cap big five big cap names that have basically swallowed up the is s p. Some people call it the s p 5 versus the s p 495. So its really nice to see the 495 participate in the rally, and a broadening s p rally is healthy x its more sustainable than if you just have a handful of stocks leading the way with up. So im very encouraged by that. Jack youve even gone so far as to say you might see parallels between now and the roaring 20s, long before 1929, i should point out. Can you explain that . Well, you know, theres so much possess nhl around pessimism around, if you think things are bad now, imagine what it was like at the beginning of the 1920s. Before that there was a world war, world war i, then 1918 and 1919 there was a terrible pandemic, worse than this one, millions of people died, and they didnt know what to do about it. And then in the United States we had a recession in 1920. So people must have been just suicidal. I mean, talk about a bad streak of bad events. And nobody saw what was coming, which is the roaring 20s with tremendous technological revolutions like automobiles, lighting, appliances, etc. And this time around technology is solving the problem of the virus. We are probably going to have a vaccine sooner rather than later, and i think we can look forward to somewhat back to normal by the second half of next year. And this time around we dont have to guess about what technologies might be out there. We know there are lots of this many that are going to increase productivity and prosperity, in my opinion. Jack i want do you about productivity because people may not know that gdp growth is actually a very simple formula la, work force growth plus product it growth. We know that work force growth is not going to be a big deal, so were counting on productivity. And, you know, in this thing i can do all my christmas shopping, do most of my work, if i wasnt happily married, i could get a new wife. What cant i do on my phone, and yet that hasnt come through in huge productivity numbers. Why isnt thating the economy . Yeah. I guess you could probably launch missiles or manage flights with your cell phone. I think the productivity numbers are going to be better and better. They tend the run in streaks, and for the past five years or more the productivity streak has been depressing. Its actually been on 0. 5 over the past five years at an annual rate, and thats all thats contributed to real gdp. So weve had to grow labor by more than that to get gdp, but all in all, its what 2 in real gdp. Now imagine if all the technology thats out there really boosts productivity and we see productivity growing 2 , which is not a crazy kind of number. And if we have a 0. 5 increase in the labor force, thats 2. 5 , and it could be higher than that if the productivity numbers are better, and they could be better. Jack and if we were to get in that way, then inflation would not be a problem, which is good news. Its, it cant i mean, talk about goldilocks, you cant get a better e scenario than an economy thats driven by productivity, because productivity does, informs in n fact, trickle down to everybody. Theres a lot of controversy about that, but the data series that ive been looking at suggests that productivity is the sure way to prosperity. It always has been in the past and will be in the future. Jack i hope you are right. Dr. Ed yardeni, thank you so much. Thank you. Jack coming up, as the Global Economy recovers from the pandemic, overseas markets are looking more attractive. We asked a panel of International Investors where to look, weve got their picks next. Research shows people remember commercials with nostalgia. So to help you remember that Liberty Mutual customizes your Home Insurance, heres one thatll really take you back. Wow whatd you get, ryan . Its customized Home Insurance from Liberty Mutual what does it do bud . It customizes our Home Insurance so we only pay for what we need and what did you get, mike . I got a bike. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. groans hmph. food grunting menacingly when the food you love doesnt love you back, stay smooth and fight heartburn fast with tums smoothies. Tum tumtum tum tums jack foreign stocks have underperformed u. S. Shares for over decade, but as the Global Economy begins to recover9 from the pandemic, now might be a good time to look for bargains overseas. Barrons asked a panel of International Investors where they see opportunities, chris dire was a member of that panel, and he joins us now. Chris, thanks for staying up late in london to come on the show. Thanks for having me. Jack i want to start with a very basic question which is why invest overseas . A lot of americans are skeptical and keeping their money within these shores over the last ten years has been a winning strategy. Thats right. But we think were at the very beginning of a multiyear of outperformance, and thats going to be driven by economics, politics and valuation all Favor International equity now. From an economic perspective, were at the very beginning of an economic recovery across the globe, and those environments favor value and cyclicallyoriented companies, more of which you find in europe and japan then in the u. S. If you look back at the previous period of International Equity versus the u. S. , that was back in the 2000s. And were seeing some strong parallels between that environment and what we see today coming off of a multiyear period of u. S. Technology outperformance, thats consistent is what we saw in the late 90s. And then throughout the early 2000s we had a period of dollar weakness. But i think thats a real concern for investors Going Forward driven by the hue levels of u. S. Government debt and the twin deficits of trade and fiscal in the u. S. Which will both pressure the u. S. Dollar. And then from a political perspective, were seeing great confusion, and the prospect of normalization with the u. S. And china, thats more important for european and Japanese Companies than their u. S. Counterparts. And finally, the International Equity market is trading at a multidecade low relative to the u. S. In terms of valuations. Jack okay. So if we do that, theres a couple ways you can do it. You can buy individual stocks around the world, own an index with everything, can or we can hear an equity manager like you. You charge more, can you justify those fees for us . I think if youre talented and good at active managing, then you certainly can outweigh the fees with the outperformance youre automobile to get able to get. So we think that now its a very interesting time for act weve managers, particularly in the International Market for two reasons. One, you dont have the concentration of leadership that you have in the u. S. Market. Youve got a lot more breadth in the International Equity market which creates opportunities to outperform the benchmark and, two, volatility. We expect volatility to continue to be elevated in the future, and that creates opportunities for active managers as well. Jack what youre referring to are the facebook, amazon, apple, google alphabet, i should say and thats really what has driven the u. S. Economy. And ive spoken to some professional investors who say why do i want to be overseas . This is the future. I want to buy those companies, therefore, i want to buy american. Thats right. Those are all very, very strong companies, great business models. But i think what i like to point out is look at two of the Worlds Best TechnologyCompanies Found outside of the United States, asml in the netherlands and [inaudible] semi conductor. The technological innovation e that they provide to all their clientses and their customers like apple, facebook, amazon, etc. , empower those companies to come out in the new generation of productions. So without the Technology Advancements that are driven by asml, the taiwan semiconductor, you dont get the next iphone, the great innovations and progress that weve seen with Cloud Computing in recent years. So these Companies Really are the engines of growth but theyre not well known because theyre not consumer brands. A lot of investors in the u. S. Wouldnt be familiar with them, but they really do generate the advances in technology that are so important for all consumers. And then finally, what i would just point out is look at the share Price Performance of those two companies over the last five years, and they compare very, very favorably to the u. S. Fang companies. So, again, diversification is a great technological leadership. Jack i do want to point out your fund not only beats global indexes, but you actually managed to beat the s p 500 over the past two years, which is pretty interesting. Real quick, i want to go to my colleagues for a lightning round of picks from the other panelists in that round table. Ill start with you, jack. Lightning, ill put some extra razzledazzle on it, jack. Trip. Com, that comes from kristin whos manager of the Morgan StanleyInternational Opportunity portfolio. If you remember ctrip. Com, they changed the name, biggest travel booker in china. They have used the pandemic to renegotiate for more favorable terms with their hotel providers and to cut costs, and this is a lot of room for growth in travel in china. Jack carlton . Cuci bank cici bank in india with, its another one of christians pucks. He looks at many private banks in india, pulling off the notion of their economy improving and moving away from stateowned to private e banks. Jack and, ben, a reoping may overseas. Thats right. Im looking at ryan air from bailey gulf order international that fund. Its an airline, and its actually been investing during this period. Its ordered 200 planes, its taking market share. When consumers can fly again, ryan areas going to do fantastic. Jack i believe thats a Discount Airline in ireland. Thank you so much, chris, for joining us. Thanks to the panel. Up next, these guys are going to give their investment ideas for the coming week, so stay right there. Geico makes the claims process so easy. 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