Dollar stores seem to be weathering the storm. On the barrons roundtable, ben, carlton and jack. Thanks for joining us, guys. Good to see jack howe back in the group. So, ben, every single week i say the same thing to you which is how much longer can tech stocks keep zooming ahead of the market. Finally this week i dont have to say that, they actually lagged this past week. They lagged and they lagged badly, down around a full percent. And the s p was up more than a percent. The gap between the two was actually the widest in any one week since 2016. Most of those, that difference calm on monday when the nasdaq actually rallied to what was looked like a new high only to pull back and finish down more than 2 . Those kind of reversals dont happen very often, and when they do, its often a signal that the nasdaq is going to underperform over the next three months or so. Jack so youve been talking for a while about cyclical rotation that you think thats going to thinks going to come one of these days. Is it finally here . Im not sure its fullblown, i think its more whats been going on during the last three months. Tech stocks have been unstoppable, and now weve entered earnings season. And that, those gains have set the expectations really high for tech stocks. We saw that when netflix reported earnings on thursday. The stock fell over 6 because they just couldnt hit the numbers that had been set for them. We should be watching microsoft and tesla and twitter next week when they report because they may also have set the bar too high, and it could be a theme throughout the rest of earnings season. Jack a saw an interesting chart this week and it points out the dispersion between the most expensive stocks and the cheapest is higher now than it was even during the tech bubble. Theres a long way to go to revert to the mean. Right. Its just theres a lot of room there. Jack well, speaking of froth, jack, we have had more ipos double so far this year than anytime since 2000, and were only halfway through the year. Who doesnt love a nutty ipo market . Come on. Weve had seven ipos, more than double, as you say. Heres the names, lemonade up 139 , that tech the insurance, agora, whichever you like, thats a company thats up 150 , cloud computing. Vroom, up 118 , and encino, the biggest oneday pop for a u. S. Tech Company Since august 2000 and thats financial tech. One thing this means is the Companies Bringing these names public if, theyre leaving a lot of money on the table for their clients. Theyve been underpricing deals. But really what it means is theres just incredible demand out there for growth. At a time when the s p 500 is going to report a 40 earnings this second quarter, everybody wants growth. Theres a scarcity of growth. If you have anything growing and if it has anything to do with tech, bring it public now. I think youre going to see a bunch more. Jack and it sounds like it needs a goofy name too. One interesting point is we saw those companies that had been baking so long in the private equity oven that they got pretty big before they went public. This is nice for the individual investor. Carlton, i want to ask you about how youve been channeling your inner peter lynch recently. Tell us about dollar stores. [laughter] well, its me and my colleague who have the story out this week, and they tend to do well in a variety of economic conditions. But they tend to especially outperform in weaker economic conditions. And thats what were in now, millions unemployed, benefits set to expire at the end of this month. So the dollar stores, they were deemed essential, they were able to stay open. And also an ec e doteally i happen to pass by a dollar tree, and ever since the lockdown started it has always had a line of people to get into the stores. I believe we have a picture just kind of showing for the last four months theres been this line of people to get in even though theres a bunch of other places nearby where people can still get discount essentials and things like that. Jack of the two stocks, is there one you prefer . Yeah. So Dollar General is the one that has done better historically. You know, they tend to have more Food Products and things like that. Dollar tree, though, is the one that were saying has more growth. Theyre remodeling some of their stores, theyre getting their merchandise right. They suffered a little bit because they had more discretionary items, a lot of party favors and things like that. Theyre trying to make that right, you know, having the right products that meet the needs of customers. They had a tricky acquisition a few years ago of family dollar. Theyre working that into the family a little bit more. So dollar tree is a little bit cheaper than Dollar General, and its one that we think has room to grow. Jack thanks so much. Coming up, aarp ceo Joanne Jenkins on how the covid19 has created workplace challenges and opportunities for older americans. Thats next, stay right there. Weve always put safety first. And we always will. For people. For the future. And there has never been a summer when its mattered more. Wherever you go, summer safely. Get zero percent apr financing for up to five years on select models and exclusive lease offers. And still going for my best. Even though i live with a higher risk of stroke due to afib. Not caused by a heart valve problem. So if theres a better treatment than warfarin, i want that too. Eliquis. Eliquis is proven to reduce stroke risk better than warfarin. Plus has significantly less major bleeding than warfarin. Eliquis is fdaapproved and has both. Whats next . Reeling in a nice one. Dont stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. While taking eliquis, you may bruise more easily and it may take longer than usual for any bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Ask your doctor about eliquis. And if your ability to afford. Your medication has changed, we want to help. Jack the covid19 crisis has caused massive changes for companies. While its created challenges, its also created unique opportunities. Joining me now, one of barrons 100 most influential women infy januaries, aarp ceo Joanne Jenkins. Aarp has identified these megatrends in the future of work. I wonder if you could run down some of those for us. Well, i think the first thing is really about the use of technology and automation. Never before has every one of us needed to learn more about the use of technology whether its learning to zoom or use Microsoft Team or be on youtube in order to communicate. I also think its an opportunity that were seeing in the marketplace for employers and people of all ages to learn, to be in a position that theyre ready to continuously learn new techniques, new certifications, a whole host of keeping learning at the forefront of our conversation. And i also see that in, not only at aarp, but with other employers around the world that the idea of having a multigenerational work force is really coming up with Creative Solutions that help businesses address problems that theyve had for years. And so i would say those three trends are so important as Companies Compete for labor in this very competitive marketplace. Jack and you are teaming up with a lot of companies. Your organization and blackrock, bank of america, invesco, to try to drive some changes in the workplace. Can you explain what thats all about . Absolutely. So aarp has for a couple years now sponsored the aarp best places to work and the employer pledge that companies are not going to discriminate against people because of their age. We have over a thousand companies who have signed up to make that pledge that they are looking at, you know, not looking at age as a defining factor in suring somebody or making a judgment in hiring somebody or making a judgment about their talents and what they bring to the workplace. So were is so excited. We hope that well be gaining many more people, companies who are going to sign that pledge. But right now were well over a thousand from all over the world who have signed on. Jack wow. Thats a good number. I want to ask you about something which is you dont see the workplace or the career path as linear anymore. Can you explain what that means . So think about this, that if, in fact, you have Good Health Insurance and in good health and do physical exercises, the likelihood of you living to be 80, 90 or 100 is going to be the norm. And so youre going to have the opportunity and the possibility of working some 30, 40, 50 years during the course of a lifetime. So unlike what we used to think about before which was to educate yourself, to get married, to retire, youre going to have 40 or 50 years and possibly have three or four totally different types of careers. And so people are going to have to continuously educate themselves and be this learning mode over the course of a lifetime if, in fact, theyre going to stay competitive in the workplace. And i think with the jobs shortages in some of the areas in the Health Care Space and the education space and the technology space, its a wonderful opportunity for Older Workers to keep themselves technologysavvy e and ready to join the market at any time. Particularly as we see, as weve seen in this covid19 when so many of us are teleworking. Its a huge opportunity for that older worker to be able to use those skills that theyve learned over the course of a lifetime in a wonderful place to work. Jack and to that point, you guys have a whole bunch of really helpful opportunities to futureproof your career or have your second or third career. Can you give us some of those, some of those bits of advice . Well, the first one i would say is Keep Technology in the continuous learning, at the forefront of what youre doing. Whether thats through gaining a new certification or learning a new language or learning a new technology skill, i think thats always important. I think for all of us, regardless of your age, that linkedin site needs to be kept current. So many employers, thats the first place that theyre going when they start recruiting for new individuals coming in to the workplace. This whole idea of teleworking and people working from home, i think, is an opportunity for Older Workers to stay focused and that they dont have to travel to and from a job, but to be able to conduct that work in their own home. Theres also the idea of continuous to learn and that be open to learning new skill sets and working with different kinds of people from all over the world. You dont have to to be located, you know, in the same building in order to be able to work together. And this whole idea that you need to plan to work longer, that youre going to be working some 30, 40, 50 years. Many because people have to or in the case of myself because i want to work longer. And i think thats so important. And then i always tell people to get focused on how do you ageproof your resume. That, you know, focus on your most recent experience, you know . Eliminate the unnecessary dates in your resume so that you dont age yourself. Probably get rid of that aol email account and get something more current like gmail or verizon or one of the others to make sure that your resume e is not longer than two pages long. I know as im reviewing resumes, im likely not getting to that third or fourth page. And so i think thats one of the things that we tell our members that they ought to be focused on. And then really to optimize the language of today whether its around Data Analytics or Health Care Issues or some of the recent technology and terminology that focus and make sure that your resume is current and on point for the job that youre focused on getting. Jack those are great pieces of advice, Joanne Jenkins. Thank you so much for joining us. Thank you. 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The big events are back and xfinity is your home for the return of live sports. Jack in turbulent times, planning for and managing your retirement can be truckee, but we can help. Tricky. One of the top women Financial Advisers in the country, mary deffert joins the round table. Thanks so much, mary. This week the cover story is on annuities, theres one way to get income in retirement. How are you helping your clients get their income in retirement . Thats a tough question these days. When 10year treasuries yielding. 26 right now and shortterm treasuries less than 0 years are less, there are countries in europe that are paying negative interest rates. Were in a very tough rate environment. It doesnt mean you cant keep short maturities and taxfree subcorporate if you like [inaudible] and development bonds, theres also really dividends that are unlikely to be cut from high quality companies. You can kind of keep an eye out for those too. Hey, mary, texas howe. Let me ask you, i hear people say, well, theres good quality stuff that pays 1 or 2 . I need to buy this junkie stuff over here that pays 6 , and i always wonder why dont you just buy the good stuff with the lower yield and just sell e when you need the money. What about that strategy . Yeah. I think people should hold the paper looking for the highest yield, but thats if you are so spot on, if youve been investing in the stock market over the years, why did you do that . If, for example, last year you were up 15 , what is wrong with taking out 4 . Whats wrong with spending the growth . What are you waiting for . If youre in the stock market, you got there because you wanted to have growth that would protect you for some for tough times. These are the tough times. Jack mary, when youre selling those equities, do you sell mostly tech . And more broadly, how do you look at this big dispersian that ben and i were talking about earlier . Do you just say, okay, the way of the future is technology . Ive got to be heavily weighted there . Or are you buying some of those unloved value issues . It is very tough. I mean, the single biggest risk factor ive seen is overconcentration. You can definitely have too much of a good thing. That doesnt mean that some of those tech stocks arent still moving. I saw this stat that in 2019 of the s p 500, six stocks represented 25 of the entire return. You know what . Lets face i it, if youre an amazon person, your best friend just like mine is, im just happy to see them. So Technology Creates efficiency, creates effective ness. I strongly believe that that will be something that will not be whats happening with economic forces. However, they may be fully valued at this point. To me, im more concerned about the Asset Allocation and making sure that ive got balance so that when large values, for example, come back and say im positioned there. I will never make a big bet. We cant afford to do that. Its too important. Jon i know ben levisohn has a question for you. What are you telling your clients about the disconnect between the economy expect stock market in and the stock market . Its unbelievable, isnt it . I really wonder when you look at the unemployment numbers, the timeline is probably going to be stretched, the resurgence of the virus, an election coming up, i ask my clients, like, you know, when is the last time best case ever happened for you . This market is pricing as if this is a best case environment. A question ill ask clients is, okay, youve told me about the vacations that youve canceled because thats a recurring theme. When will you be ready to take a great trip like that again . And inevitably after hemming and and hawing, people say a year from now. Thats how long this recovery take. And weve got to be ready to be it happens to be a perfect time, i cant emphasize it enough. The market is relatively stable and relatively calm. Thats surprising. But its a great time to take advantage of that. Its not a time of panic. Think about how much risk you can take. Youre never going to beat the market, try to reflect on the risk that youre comfortable with in a time of sanity and make sure your portfolio reflects that. Jack and when those bad times do come, youll be happy that you sold. Thanks so much, mary. Thank you. Jack up next, round table members give their investment ideas for the coming week, so stay right there. [ beeping ] for those who were born to ride, theres progressive. Always have been. And always will be. Never letting anything get in my way. Not the doubts, distractions, or voice in my head. And certainly not arthritis. New voltaren provides powerful arthritis pain relief to help me keep moving. And it can help you too. Feel the joy of movement with voltaren. Im an associate here at amazon. Step onto the blue line, sir. This device is giving us an Accurate Temperature check. Youre good to go. I have to take care of my coworkers. Thats how i am. I have a son, and he said, one day im gonna be like you, im gonna help people. Youre good to go, maam. I hope so. This is my passion. If i can take of everyone who is sick out there, i would do it in a heartbeat. Jack so, jack, in the few years before the pandemic, we heard a lot about something called modern monetary theory. Serious guys like you and me said that was a lot of bologna. So whats going on right now . Well, im not, its not for me to say its bologna, but i explain to people that if youre still debating whether or not we should do it, the debate is over. Im pretty sure were doing it right now. I spoke this past week with stephanie calvin, shes kind of emerged as the spokeswoman for this way of thinking. And, you know, basically she tells me things like deficits, were hooking at potentially a 3. 7 trillion deficit this year. That would be more than double the largest yearly deficit, and i think we maybe closer to 5 trillion by the time were done with all this spending because weve got a dire economic emergency, people need help. I dont think its going to stop after that. She says you dont need to be worried about deficits, the only constraint on spending is inflation, we have plenty the of room to spend. Part of my column this week forget about the debate, you need to look at the implications as an investor. I dont think were going to have inflation right now, i think we will have stockflation, were replacing an awful lot of that spending with Government Spending right now. That might continue to support the stock market. Jack well, and maybe why gold is going so high. Two quick investment ideas, you first, ben. Yeah. Take a look at abbott labs. The stock went sideways the last three months. This week it reported earnings, earnings were great. Looks like it broke out of the top of the range and could go a lot higher. Jack and carlton, something that might benefit from inflation. Yeah, im looking at the spider Home Builders etf. You had the 30year Mortgage Rate dipping below 3 , a lot of people that are thinking about buying a house now that urban centers arent exactly the hot spot nymph going into that anymore. Going into that gives you execs pose your with the Home Builders. Jack great ideas. Jack, fascinating theory. Thank you guys so much is. Hooking forward to next week. To read more, check out this weeks edition at barrons. Com and dont forget to follow us on twitter. That is all for us. Be healthy, wear your mask, and well see you next week on barrons roundtable. Measure measure good luck truck w york city, this is maria bartiromos wall street. Maria and happy weekend, everyone. Welcome to the program that analyzes the week that was and helps position you for the week ahead. Im maria bartiromo. It is great to talk with you this weekend. Coming up, white house economic adviser larry kudlow is here giving me his take on the recovery in the second half of the year and what could phase four stimulus plan look like. Later on, my oneonone with ed bastian on when we can expect travel to return in a big way. But first, lets look back at some of the the big stories of the week on mornings with