tv Fast Money Halftime Report CNBC November 17, 2021 12:00pm-1:00pm EST
like octi and it's a mashup of facebook and the snap and bringing new people into in meta world. quick thought, john. a company that doesn't make a lot of, and we'll look forward it that. let's get to the judge carl, thanks welcome to "the halftime report." i'm scott wapner, front and center this hour, a stunner from the street's most bullish firm which says stocks could hit a near-term peak this week that firm none other than fund strap. its chief strategist none other than tom lee weighing in momentarily on the next move joining me brenda vingiello and joe terra nova and anastasia
omarosa. stocks are lower, the s&p is just a smidge positive and the nasdaq's albeit, we do focus on the eyebrow raiser on the chief technical strategist who says this week could be a turning point for stocks at least in the near-term. let's welcome in tom lee i appreciate you joining me on what is an interesting note, tom. thanks for being here. >> great to see you, scott you're the head of technical strategy, and newton believes it might be the head by the end of this week and it can retrace 38 to 50% of the move from october, before markets can push higher into december. so we're about 9% higher since the beginning of october let me ask you first and foremost, do you agree with your chief technical strategist on what he has to say >> mark has been exceptionally good at making tactical observations at turning point. so i would -- i think it
warrants us warning clients and that's why i made it so prominent in our commentary to clients today. i think there are some fundamental factors sort of supporting this. one is there is a macro uncertainty now with regard with share. the markets will test that person so it does create poor visibility and we know covid cases are rising and while we don't want clients to be alarmed, it looks like, you know, we're going to have something under way, and i think it's reflected in why there's been a rotation into defenses and i think a defensive-led rally isn't as healthy especially into the period into thanksgiving so i would agree that i think we could have a speed bump and hopefully it's not 5%, but it could be something that warrants warning clients. the words that you just used, a turning point potentially and hearing you say that is big news
to our viewers, for sure, given how bullish you've been. you guys have been the most bullish on the street and you have been on top in terms of strategist and the last time you were here which was only a couple of weeks ago. 4800 on the s&p is the year-end target and it wouldn't surprise you if we can get to 5,000 by the end of the year. this feels like a real turn, tom. >> it's hard to tell what can happen at a turning point, so i might say that our best case remains whatever happens is a viable pullback. i think we still exit the year strong and it would be a textbook pullback into a december rally and that means we could still be 4800 or 4850, but it won't be from 4700, and it could be a lower level and it ends up to be a viable tip >> i'm sorry we may just have to -- forgive me, tom. we may have to work a little bit
harder to get to your optimistic target of 4800 >> that's right. i think the one thing i'm watching in the next couple of weeks is relative strength because there is there has been weakness developing in some sectors. so that's what i'm watching. for now the market overall is helping and it's good to see the nasdaq rally because that is anchoring a higher s&p is the nasdaq rally >> you write about tech being quote, unquote, exhausted or at least feeling exhaustion is that what we see now and the nasdaq after having an incredible run is going to potentially lead the decline lower at least in that near-term? >> yeah. and that's mark's words and what he's referring to is things like semis which does look like a lift and there are techs that still look strong like system software so there's enough health in tech and there's no
break in trend, but what he's referring to is you'll have a pause that refreshes people treat 2% drawdowns like it's an annihilation so there is a chance for people to overreact >> let me ask you about the fed chair question which you brought up which i was going to ask you about anyway, and how the market would view that. you know, brainard may bring on more regulation. certainly that's one of the issues people are talking about. clearly she is more dovish, i would assume, but it sounds to me like the mere change of the person in the chair would be risky enough at this particular juncture >> yeah. i wouldn't say it's a bull market killer and so close to the end of the year and one year into an expansion. i just don't think from a timing
perspective that's great and as you know, markets, the bond market will test the fed chair and it speaks to the idea that progressives have enough power to force a change at the fed this has very little to do with the fed ask it has more to do with wrangling over the budget process and infrastructure bills. >> i know beginning with farmer jim, my mr. all in who has been in lockstep with you, tom, all of the way up for the most part and what do you make of tomly and his head of strategy mark newman are saying about the potential of topping out this week at least in the near-term >> of course, i pay attention to what tom says because he and his firm have been so right for so long and i'm want trying to tie what you referred to as a speed bump i don't think you're suggesting that i try to time that.
if the market goes down, that's okay w we're long-term investors i'm absolutely all in through year end that is my strong message. when we get to the back half of january, this setup reminds me very much of 2017 to 2018. i'll bet we crescendo in january, but by middle of january i'll start taking some risk off the table the only thing that could move that timeline up for me is if congress really starts messing around with this debt ceiling situation. we're not sure when the ex date is and the treasury runs out of money and hopefully it's january and i don't have to change my tune and that's the only thing that worries me. technicals matter, but i'm not likely to trade on it. i respect tom and his technical analyst and he knows that, but i'll stay all in part of this also comes from the fact that the stocks that i own have recently come out of consolidation. so if you look at the surge in the qualcomms and the general motors and the apples of the
world. i do not see these as overbought at all so i am loathed to try them on right now. >> this is interesting yes, it comes by way of his chief technical strategist, but there are fundamentals as well that are at play here. so it's two sides to the coin as to why we may be at a near-term inflexion point. everyone has been talking about seasonalities on the side that are right in the middle of now and the most bullish of the year for stocks you carry that into next year or is it time that we have that pause and be ready to buy it >> i do tend to agree with tom here, scott, because if you think about the positive seasonality that we've head in q4, we've had it and then some it tends to be 4.5%. we're up 9%, and i do agree with tom in terms of some of the
technical i wanticators being stretched here and being overbought, but there are a few fundamental clouds in the horizon, as well i could point to covid cases not only in the united states, but also in china they've been increasing in germany i was in germany last week and the cases are significantly higher the biggest thing for me is the policy pivots that we can expect in december. the fed was very dovish in november, but i'm not so sure they'll be so dovish in december because maybe we get a new fed chair and that's dovish, but the big thing that we get is the new dot in2022 and we have the payrolls report and strong retail sales and inflation at 6.2% so i'm really watching for the potential hawkish pivot from the fed and that's one of the things that could potentially pull this market back. so my take on this, of course, you stay long this market because the fundamentals are supportive, but there are
pockets of tactical trades that have worked really well and you can take some profits in for example, semiconductors and talk about a sector that has done very well and it's up 18% and as tom said, some of the moves there have been parabolic, so i would not mind take something profits in semis right now and i'll kick it around with the gang any it relates to covid and i ask you this because you have routinely been one of the more positive voices looking at the data and trying to figure out what that will mean from the re-opening standpoint and certainly from the all-in standpoint and where the stock market was going to go is that the biggest risk factor that you see right now this resurgence of cases in europe, there are pockets and states in this country where cases are on the rise. we here in the northeast haven't really had a big push of the delta variant yet.
people are moving inside and it's getting cold and we'll gather for the holidays, et cetera is that the biggest risk that you currently see? scott, that is, and the mechanism is surprising. we studied this week, when you look at the summer wave, covid cases be goon rise in july and the media and the delta variant didn't surge until santa september and that's when the market took it in the gut. so it's at the point where consumers panic and the covid spike that anastasia mentioned there are places higher than germany. vermont had 80 times increasing cases since july, yet no one in vermont is panicking, there's no consumer panic and policymaker panic. so in a way i don't think it warrants people to say consumers will cancel travel and the big data doesn't have to take it in the gut.
in the meantime it's strange and as the cases start to rise, things that are cruise lines are starting to weaken so the message the market to me is they are paying attention and if it does worsen, that's pressure over the cyclical trades >> all right we'll see where it all goes. >> i know you had something on your plate that you made time for us for thank you, tom >> tom lee joining us. >> all right, joe, what do you make of what t.l. had to say >> i put my risk manager hat on and i think about where exactly the pain would be. where is the outsized risk and where has everyone been overtly bullish and those are the assets i look at. i look at energy, crude oil and natural gas and cryptocurrencies and i'm studying what that is doing and i'm looking at the value trade and whether it's the casinos or the airlines because ultimately, it would be more reflective of the type of internal rotation that we've
experienced throughout the year. i don't think it would be a broad-based overall sell-off and it's more specific to where the money has actually been and where there is extreme bullishness. that's what you have to identify and the terms of what your risk might be looking forward >> you know, we thought we were going to have steve weiss, this pullback that the s&p pulled back a couple of months ago at 5% and then we had this resurgence and the bulls grabbed the narrative back and then we had seasonality on their side, too, and now i'm just wondering how you see things in light of what tom lee and his chief technical strategists are saying >> well, there are two audiences for what tom says and he's been dead right on the market the first audience is that shouldn't listen and those are the ones that are staying invested that don't have cash, and the reason they shouldn't
listen is because the market can pull back at any point in time 3% to 5% and that's essentially what they're saying before moving higher. however, where it does have value is if you're sitting in cash saying, wait, i may get an opportunity to buy here, but again, that's if you buy marks i buy stocks most people on the show buy stocks so i'm tending to look at the bottoms up fundamentals. in my view in terms of the overall markets, here's what i'd say. i'd say, look, there is tons of optimism in the market we keep seeing it reset every day. even today tom continued to be optimistic while being kaflt not to disagree with the technical strategist they come at it different ways i think the market can move higher post thanksgiving, however, here's the biggest caution. the biggest caution is on december 10th we get cpi on december 14th, we get ppi those could be very
destabilizing numbers for the market if they continue to do what we saw. >> look what happened last time. you had the hottest cpi in 30 years and the market all, but yawned, right? 0.8% at the worst and the s&p went down 06 and then it rallied right back >> and i'll tell you why that is it rallied because you had a massive short interest in the ten year and even longer into the curve, but primarily the shorter end of the curve and when they didn't get the response that they'd thought they'd get from inflation numbers they covered taking the ten-year yield down to 1.45. now we're seeing it move up. my bet is you won't see that kind of reaction if we get those inflation numbers again and there's no reason to expect that we won't with all of the news we're hearing from ceos. so i would be very cautious going into the market in terms of year end, in terms of the first and second week in december >> brenda, it's not like you highlight tom lee because we highlight him a lot and when
they're bullish and make a call i think they deserve a spotlight and when they change at least in the near-term part of their call and they're not the loudest voice in the room necessarily. goldman says the shorter term remain for equities and not that tom lee or anyone else is going underweight. where do you come down on where we currently stand today and what you think is in store for the next couple of months. >> yeah. i think there are pockets of the market that certainly look overvalued and that's a place that i would suggest people take some profits here, but i think when you look at a longer term perspective here, we can't deny that earnings growth has continued to be exceptionally strong profit margin has been phenomenal even though we might get higher inflationary numbers so far, it isn't impacting corporate profitability or their
consumers' desire to spend although the one thing we're focused on that we won't have clarification on until early next year is the consumer buying earlier than they normally would because they're worried about availability of products heading into the holiday season. we've been told this over and over again and this time i think people truly believe it that they need to get out early and we worry that there might be a pulling forward of demand on the retail side, but from a big picture perspective, we are still constructive on the market, still think that you'll have a higher return that you're likely to see in bonds than the remainder of the year. >> i want to get to this idea whether there's exhaustion, the word they used in the tech space. not two seconds ago, gina francola e-mails that microsoft hits a new all-time high, and then i see nvidia is reporting after the bell today and that's been an incredible stock it's the best-performing stock in the nasdaq 100 this year.
anastasia, i'll come to you in a second, but brenda, i noticed you trimmed nvidia are you thinking there's exhaustion in some of the highest of high-flying tech stocks >> i think with nvidia, as you mentioned, this is one of the best-performing stocks of the year it's up 40% just in the last month and really since we first established a position in march of last year, it's up more than 350% so it's clearly been a phenomenal stock we think the fundamentals of the company are still likely to be incredibly strong, and we have to ask ourselves where the expectations have gone here for a beat and the raising of expectations, so even though we continue to really like this company and really like the positioning within the semiconductor industry with the faster growing, innovative parts business, we believe this is the trim some areas of the market are a little overdone and this is one of them where i would suggest on
trimming >> talk about high bar joe, you bought it in early september at $212. rosenblatt securities and that's 400 bucks. it's looking frothy, maybe and take some money off the table and protect myself going into the number when the bar is growing higher by the moment, it would suggest. what about you >> i expect actually tonight that nvidia is going to be challenged here with earnings, with extremely -- extremely bullish expect eggations and gog to have to come through with the sig give kant market share grab and the revenue will have to grow significantly there it will not be about gaming and it's not going to be about the cloud which it was just one year ago in the quarter that was so incredibly strong. you'll see the revenues will be really strong and scott, i'm going to stay with nvidia and i'll stay with my exposure to
semis and software i suspect that if tom lee and his chief technical strategist is correct and there is going to be a shakeout in the market. it's going to occur in the places i identified before it's going to occur in crypto assets it's going to occur in energy. it's going to occur in a lot of the value-oriented stocks. >> the winners. >> guess where -- the recent winners. the recent winners guess where that capital will flow it will flow right back into the large and mega-cap growth-oriented technology names where you have the reliability of sustained revenue growth and you've got the pristine balance sheet. so nvidia clearly fits those chara characteristics and i'll endure it because i believe over the coming months that that stock will march over $1200. >> anastasia, is tech exhausted?
>> i think it's there near-term. you can't sell because at the end of the day this is where investors will step in and buy pullback i do think whether you look at semiconductors and whether you look at software, they're among the top performing sectors, quarter to date and i think they are exhausted. my hunch is that we saw record breaking chasing in terms of call options by a couple of weeks ago and a lot of that chasing has been happening with semiconductors so i do think we're due for a pullback here. if we get it, we collectively would feel a lot better about investing in technology shares and i do suspect a pullback here this has been the everything rally and now we may be do for an everything breather here that includes tech and i do agree with jill that that includes energy, as well, because there are a few negative catalysts for on the horizon
>> get ready to buy, but not at these levels >> weiss, do we need to look at the smh and the chip stocks as ground zero for what could be a lead of the pullback the smh is up 15% in the month you have exposure through skyworks i come to you thinking that you endured some pain as both of those stocks got absolutely crushed and then you stepped in and said enough is enough. you saw some value creation there by the pullback so you bought more and i'm wondering how you're sitting feeling thinking about that space in general thinking that you've put more money to work >> right also, teradyne -- >> it's up a lot, up 34% in a month. >> yeah. that one i actually trimmed a little because it was up so much in much quicker than i had expected this has been an index market
and lots happening underneath could be subject to some trimming i just don't use terms like, no offense, anastasia because i admire your work i don't use terms like exhaustion and things like that. >> i don't know why you're saying that about her. she's not the one who used it. it was in the tom lee note >> i would agree with it >> she's the most recent one that said it, and -- and i like her more i love tom, he's worked for me and he's a great guy in fact, the semis that are in chips that are in phones seasonally, it begins in january. so i'm looking to buy on dislocations nvidia is just going through to me what's happening with target. they're saying, you know what? lots of expectations to target and that traded down i don't want to be in nvidia and see that trade down because everybody expects them to really explode out of the quarter see i'd like to buy that, if it
got hit. >> what about target since you brought it up. hard quarter and the stock was getting hit hard the last time i looked it was down 5%. there it is. >> it traded up into the quarter and they experienced margin pressure and every time you sold it because of what i call the nuance in the quarter it has been a mistake i think the stock still rallies and i think you'll see a $300 handle on this and it is still at a market discount despite everything they're doing and there are clear winners and losers in retail and target is a winner, above all and they're not going to lose all of the customers they picked up during the pandemic and they're staying there for a long time. >> joe terranova, if anyone knos anything about you they know you don't mind buying high as long as you can sell higher i think of tjx when i think of that headline and that cover
because they beat the stocks up 8% and you bought tjx. >> absolutely. it's what i'm looking for in a technical formation for a company. at the end of uoctober i was alerted to that and have been watching tjx ever since. i waited for earnings today and i waited to hear the fundamental story and what i loved about it is the ceo was saying come shop with us. we have everything you need. the inventory is here. we've heard so much about the concerns about the holiday shopping season and the inability for goods to be provided for customers that actually want to purchase them that's not the case at tjx the margins were fantastic the metrix of the earnings were sensational and off-price apparel has strong, positive momentum without question i have no problem buying it here in the mid-70s because i think this is a stock that belongs easily in the mid-80s. >> want to get through a couple of moves before we take our
first break. >> brenda, you saw more booking. don't talk about boeing. you bought more booking and sold gilead i've written all over my script and i can't even read it >> we did. we sold gilead and we are still believers in the company's oncology business and the fact that that will ultimately be able to bear fruit right here and now. it is all about remdesivir and we don't see that continuing as more new therapies come on the market that are more cost effective and this is a company that reported a good quarter, and things are starting to improve and their customers are coming back and using the service and the stock is down because of what's happening in europe and they do have a strong european business and they did just announce an acquisition to aus-based company that continue exposure in the u.s. and we think travel is coming back and most likely next year and this company is very well positioned
with a very profitable business model. they announced a bigger share buyback, so we think it's very well positioned. >> weiss, you have a move, too i want to bounce for a couple of minutes. anastasia, good to see you thanks for being with us up next, we have trades on some of the biggest analyst calls including one stock brenda vangiello is buying more of. we're back in two minutes. actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit
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welcome back i'm rahel solomon and here is our cnbc news update at this hour the federal department of education has started a civil rights probe in southlake texas. at issue are will gagzs of racial and gender discrimination that goes back years the school district has received national attention for its plans to address racism and update programs on race, gender and sexuality. the battle over what to teach in schools and how discrimination should be addressed tonight at 7:00 eastern >> in louisiana a 75-year-old man convicted of murder when he was a juvenile has been granted parole by a state board. henry montgomery was central to a supreme court case that opened the possibility of freedom for hundreds of juveniles who were sentenced to life in prison without the possibility of parole christmas trees, trees for tight supply higher shipping costs can lead to prices 25% higher than last year experts say that the shortage is
due to both supply chain issues and climate change, but scott, what isn't more expensive this year just add christmas trees to the list >> rahel, thank you. rahel solomon. steve weiss, i teased the fact that you have a new move and you bought more t tech holdings? >> yep i did. so i thought they reported a good quarter with the exception of a nick from a security issue that they quickly rectified. the ceo found 60% of this company just over 4 billion. they are the leader in the digital experience for just about any online company you can name from gm to lulu to amazon you name and that business is growing and it's growing organically through acquisition and highly frag mthed and i just can't imagine the ceo staying here on this cheap stock not getting rewarded in the market and saying, you know what? i can do better as a private company. i don't know if that's in the cards or not, obviously, but the point is very, very cheap
growth, very, very cheap asset, and a market leader. so why wouldn't i add to it here just a month ago it was well over 100 so it's kind of illiquid with him owning 60% and the index owning 60% it doesn't take more than going in one direction or another and i pounced on it. >> i appreciate it let's do some of our calls of the day. boeing leads us off today upgraded to overweight and wells fargo. they see positive risk reward. excuse me, the price target goes from 272 to 224. brenda, you bought more boeing >> we did just add to boeing yesterday and we look at potential catalysts for the company as we head into the end of the year. we think it's highly likely that china will re-certify the 737 max and that would certainly be a positive, but for the longer term, we do see a travel recovery happening especially on the international side and you have to remember that
pre-pandemic and pre-737 max debacle. this company was earning th$12 o $16 a share and we think that's possible again given the backdrop that we see right now so we think there's opportunity here >> okay. farmer jim, you hold your horses, you don't get to talk about boeing because joe t. is and he's been looking at the technicals i have you coming up, don't worry. >> jim, what do you see? >> two people talking about boeing would be enough, thank you. >> i'm not coming to you either. joe? >> scott, there's a very interesting potential, for boeing and i've heard the fundamentals being the catalyst for boeing for the better part of the last year and a half. certainly if you listen to my good friend jimmy. this is about the opportunity that the technicals are providing. go back and look here. over the last few months you
have a series of attempts to break boeing below $hun. it's found support three times on those challenges and it's building a very strong base and the area that i would look now for confirmation of a technical breakout would be above $240 you clear that signal above 240 and this is a stock that would trade toward $300 over the next coming months. >> farmer jim, you do get to comment on cleveland cliffs. the target goes to 30. you've been giving steve weiss a piggyback ride on this one for a while now. what about xlf >> buying everybody drinks on cleveland cliff earnings except for steve, he doesn't deserve it, but cleveland chiefs and i know this is taking a few steps back and just be patient remember the story with qualcomm and remember the story with general motors and the cash flows are what you look for
here this thing has billions of dollars of annual cash flow and a market cap of $10 billion. those are coming back as shareholders and first they're buying down the debt and they're giving us buybacks and dividends and they're staying up there is because auto demand is picking up get through cleveland cliffs >> i didn't want weiss to be left out and i do want you to speak about the downgrade. >> it does make a lot of sense to me, frfrpankly. the stock is down. they've had a rough quarter and we've seen that before with others and they'll recover don't forget, this is the same management team that took gxo to where it is and that just went through a hundred and i like it, and i bought more after the
quarter and i'm very full in it and i'm not selling any, and i think it's a great buy down here and it will go back to the old highs and freight is where you want to be make no mistake and this is right in the heart of it and they're a broker and when you see the freight prices going on, man, that's just more going in the kitty. >> i can't believe it's been one year of the etf known as joe t our own joe teranova we'll talk about the performance over that period, where joe takes it from here we'll do it next the french bank societe generale expects $500 billion will be invested into the hydrogen industry globally by 2030 sotgen notes hydrogen-related etfs have risen from zero to over $600 million since the beginning of this year among the company's firm beliefs are poised to benefit, plug
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>> it's been one year since the launch of teranova u.s. quality momentum etf an etf that returned 34% in the last year and it's outperformed the s&p 500. the quality etf and the momentum etf. joe, congratulations to you. >> thank you very much for that, scott. >> where do you take it from here >> it's been -- first of all, scott, it's really the culmination of 30 years of practicing and observing what successful investing is all about. it's putting together a product that's available for all investors that's rules based and it's really taking an index and modernizing it and putting it into a way as jim cramer said last year where you're calling the losers i don't think people realize how
much capital is invested in quality and momentum collectively you're talking about over $50 billion so the attempt was to improve on those individual factors i'm very happy and the risk mitigation that we have so far displayed over the last year and we really feel that we've got a product here that is going to be utilized for investors as a core equity holding for the long term >> you haven't been afraid to switch things up, too. you've got 45 holdings and 36% only 36% have remained constant since the inception. so your strategy has to be a nimble one based on what you're seeing on both quality and momentum sides of the equation >> absolutely, and it's tactically oriented and it's defining exactly where the opportunities are and it's utilizing and studying the strength of the balance sheet along with respecting what i
believe today, modern-day investors look at and that's where you can define market and that comes in the form of technicals so certainly over the last year we have transition sector weightings accordingly to where markets have moved this time last year when the product was introduced we had a weighting towards technology that was slightly below 33%. now it's 28% in line with the s&p 500, but i think, scott, you know that i've talked a lot about financials over the last year when we initiated joe t., it was 8.5% exposure to financials. now we're up at 19.5%. guess what, scott? it's not really exposure to traditional banks. it's more about assets and i talk on the show all of the time about the gathering, management and pricing of assets and it's about the nasdaq it's about charles schwab. it's about t. rowe price, it's about blackstone and moody's and it's about s&p global. so you're right.
we are nimble. we are tactical and we believe that we have a product here that's always trying to be diligently in the rice places of opportunity in the market. >> momentum, lastly and quickly if you could momentum alone is not enough, right? you have to have both sides working for you, and i say that as i bring up energy you had zero energy at the beginning and even though there's been a ton of momentum around energy it's not like you have a dramatic overweight in energy at all. you have a very slight holding in energy because i would suspect it lacks the quality that you're looking for. >> correct we own pioneer energy resources and shinear energy partners. we need to see improvement in the balance sheet. you need to see debt reduction and more sustainable revenue growth you're correct that's what this is. an attempt to improve momentum
as the single factor and i'm confident we are well on our way to doing that. it's been a big year and a big day. lucent market cap is topping ford, close to gm valuations and the rehot d-ev trade are coming up next right here on "the half." dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones
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>> as you know, it's been a wild week for evs with names like lucid. lucid topping ford's market valuation and you know, what's interesting steve is that you've got morgan stanley's adam jonas. he is right up at the top of the list in terms of most respected analyst in this space. he's skeptical on where lucid's market cap is and where it could end up being and this after rivian is, what? i don't know $108 billion at this point or wherever that one currently sits at, and i know you've been skeptical, too should we be paying closer attention and if people are looking for froth in the market. is this the place where it begins and ends? >> you know, it isdefinitely a lot of froth and i thought about that question quite a bit. is this a warning sign that maybe things were getting too rich and a little too crazy and
this is euphoria where i come out on is that this is rather isolated, number one and number two, i think that we are seeing a smaller segment of buyers than we saw in '99 and 2000 where it's ubiquitous that are doing these kinds of things so i'm not worried about that from the market standpoint great vehicles, no question, but they can never grow into these valuations, at least not any reasonable investment horizon, so i'd be careful and not saying they can't go higher, but just way too rich for my blood. >> brenda, how do you play this, if at all? >> so i would agree with steve's comments on valuation and the potential to grow into that valuation over time. we play it in a completely different way through the exposure that we have where we think this whole transition to renewable energy will require a lot of commodities, so there will be a supply/demand
imbalance there for potentially the foreseeable future. >> up next, it was named the top performing private equity firm and it's raising a $10 billion technology fund. where it sees opportunity to put some of that money to work we will tell you next. at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.
of the few asset classes that has out performed public equities in the bull markets our leslie picker following the money for us >> scott, that's right for latest delivering alpha newsletter we sat down with d.j.debb, his first-ever tv interview. it comes on the heels of his firm notching the top spot in an annual ranking of private equity performance. he was unable to discuss specific return figures but the tech investor attributed his recent success to a buoyant market while noting significant macro risks on the horizon >> we are big believes in long-term tech it doesn't mean you have to be careful. the markets are frothy today so you need to pick and choose, but long term i think the trends are inexorable, only four down years in the last 50 and growing a rate at a double gdp >> i asked where he sees the froth. he said large-scale software
buyouts and late-stage growth equity investing >> many of the unicorns today are actually disrupting the world and deserve their valuations, but probably 70%, 80% of them will have some sort of day of reckoning. they're not all going to duss r disrupt the world. programs we're in the late station of a bull market the growth and quality became conflated. >> despite the broader macro risks, francis copartners is reportedly raising a $10 billion to add to its $25 billion naum he says he sees opportunity to put capital to work in division car outs to watch our interview with hip or and/or describe to our newsletter go to cnbc.com/deliveringalpha newsletter scott. >> thank you we will do final trades on the other side of the break.
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♪ all right. let's do "final trades." joe t. celebrating his anniversary. >> well, scott, i will give you a name that was added to joe t. back on october 29th that's pfizer. we have a 17% exposure to health care it comes in the form of health care equipment names but more recently in the forms of pfizer. still jimmy loves this name. it is nice and cheap it is going higher >> jimmy, i'm going to you then. >> all right i'm operating under the principle of kiss, keep it simple, scott. apple, 2% from an all-time high. it is clearly reaching that. the epic setback is done. >> i was looking at that almost 154 now brenda >> paypal. this company was a huge beneficiary of the covid environment, but it has since had an expectations reset. but i think it is providing an
interesting opportunity to add or establish a position in the company that has industry-leading growth and is very innovative in the space >> i've had a couple of people in the last couple of days jump into the name on the pull back bryn and jason snipe i believe steve weiss. >> dick's sporting goods they don't report until the 23er down a little today on the retail sale, less than ten times earnings, compelling skyworks is on cramer's show today. i advise you to listen >> thank you for that. "the exchange" begins now. thank you, scott hi, everybody. i'm kelly evans. here is what is ahead this hour the return of the mall, the need for homes and the need to drill, all involve one thing and it is land so is it better to bet on the location rather than the land itself with every investor looking into this lately we will explore that plus, chips and candles, the action, story and trade on nvidia, sysco and bath and body works, i'm