As stocks set records, theres a parade of Tech Companies announcing plans to go public. What does it mean for the markets next move . If you want to invest in electric vehicles but youre nervous about teslas high voltage valuations, there are other stocks to consider. Weve got the names. And forget for a moment about what a trump or biden election will mean for stocks. Im worried about the market response to a disputed election. Should i be . On the barrons round teabl, my colleagues, ben lev son, carlton english and al root. Ben, let me start with you. Give me a rundown of what happened with the stock market this past week and with the ipo announcements. I dont even know where to start. It was that crazy of a week. But the s p 500 and the nasdaq both hit records this week, the dow finally moved into the green for the year. And as you said, were getting ipos. Every company youve ever heard of now has a listing out there of some sort, some sort of filing. Theres a Company Called palin tier which is this secret tech company. They did a confidential filing, now its a public one. We had a chinese ev company, electric vehicle company, go public this week. It soared. Any company you can think of, its probably it probably has an you should po right now. Jack when all these Companies Want to sell, i worry whether we should be buying. Is this a sign of stock market prices looking peaky . Its certainly looking frothy. Everybody wants to get out there. When you see all these companies rushing to do this when they had the chance to do it before covid and didnt want to, its got to make you wonder a little bit. Jack i see say peaky, he says frothy. Tell me about volatility. You mentioned that the vix is rising kind of in tandem with the stock market. What do you think that means . I think it means people are a little bit afraid of some different things, the election might be one of them. Another pickup in covid cases would be another. And theres always these things that come out. And so it makes a little bit of sense that the vix would still be high. But we have to look back at one of the best periods ever for the market was from 19962000, and the vix pretty much remained above 20 almost the entire time as we went into a bubble. Im not saying that were there yet or that were going there, but its something to Pay Attention to. Jack let me go to al and electric cars. You wrote recently that the market value for the electric vehicle universe has also caught up with the market value for the entire traditional vehicle universe, which is shocking when we consider that electric vehicles are still about 2 of the market. Now, if i look at the teslas stock, it makes my knees wobble with fear, but you say there are some ways to get involved that are less scary. You like board warner. What do you like about board warner . Yeah. Tesla can be scary for a lot of people, especially for Value Investors, a Value Investor like me. So board warner, you know, this is the classic picks and shovel approach, right . Its a supplier. It makes components for electric vehicles and traditional vehicles. It actually sells more on an electric car than it does on a gasolinepowered car. Trades about 12 times earnings, its a high quality company. Magna, the canadian with auto parts giant, they also is have complete vehicle assembly. And with all of these new, hot electric ipos like the one ben just mentioned, they are also in talks to build these cars, these, you know, startups that dont have the experience manufacturing cars. So thats two ways to play the unbelievable excitement in ev stocks. Jack borg warner and magna, got it. Thank you, al. And carlton, were at a politic low, right . The conventions are over, the debates wont start for a month, not much to look at unless you recorded the conventions, you want to watch them over and over again. I am nervous about the election. Im worried about a contested or disputed result. Not necessarily who might win. And i have recently taken some money out of the stock market. I want a second opinion. Am i right for doing that . Am i i wrong for doing that . What do you think . Well, or its definitely a very personal decision, but, you know, theres a lot of reasons to realize that we may not know the outcome of the election on election night, you know . Theres going to be a lot of mailin voting, and this election is looking to be very close. And we know that the market doesnt like uncertainty. You know, when you look at the Al Gore George w. Bush from 2000, the s p fell the day after election day. It was down 1. 1 . Usually the day after the election theres some notable exceptions, but a usually thats kind of a nonevent in the market. The s p 500 was down 7. 8 at the end of the year. Jack youve got me thinking about chads. [laughter] dimpled chads, hanging has and swinging chads, if i remember all of the chads correctly. What would you tell an investor out there . Somebody whos nervous about how the elections going to go, just whether well know the winner. There might be a delay because theres so many mailin votes, and, i mean, are politics are so contentious you worry it could turn into a dispute. What kind of investor could ignore that rest is and who might have to take some money off the table if theyre really concerned . Sure. Its definitely a very personal decision. If you have a cash need, you know, looking out 612 months, it might be a little time to take a little bit of risk off the table. And also election aside, the markets at alltime highs, so that in itself is a reason to consider doing rebalancing. If youre a longer Term Investor not ballooning on touching your portfolio planning on touching your portfolio for years, you would stay allocated as you normally would. Maybe rebalance, but you wouldnt necessarily use the election as a catalyst to rebalance. Jack thank you, carlton. Now, our partners at fox business have a special programming note. Please join Charles Payne on wednesday, september 2 end, at 2 p. M. Eastern for a virtual town hall called america invests together. You can send questions about your investments to charles and his special guests include sports Founder David portnoy. Message fox business on facebook or instagram or email questions to invested in you foxbusiness. Com. Coming up, Interest Rates may stay low for even longer than you thought. Than you thought. Richmond fed president tom as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Honey, did you hear about these new geico savings . Mom . Youll get an extra 15 on top of what geico could already save you. Can i call you back . Your fathers been researching our geneology. Were vikings theres never been a better time to save with geico. Switch by october seventh for an extra 15 on car and motorcycle insurance. Hey, we lost the wifi password. Do you remember what that is . Jack on thursday fed chairman Jerome Powell announced a new inflation policy that would keep rates lower for longer. So why is this important now . Joining me is richmond fed president tom barkin. Tom, let me make sure i understand this. We were targeting 2 inflation, and now the fed says its targeting an average of 2 inflation. If ive got the arithmetic right, it means that we can run a little bit above 2 the if weve been running below it for so long. I mean, basically, that we could keep rates lower for longer while we wait to see what happens with inflation. Have i got that right, and why is this important now . Yeah, thanks. I think you are i see this as a codification of over the last two years. The haas time we revised this document was almost a decade ago, and i think its good for us to codify e that we have challenged a lower ground, we have challenges on maintaining Inflation Expectations and making sure you have enough firepower in a downturn. Its good to [audio difficulty] overshoots of inflation as were trying to stabilize Inflation Expectations. Its good toed codify we dont see unemployment as a problem, and its good to codify that financials something that we take account of in our policy. Jack okay. I want to theres a little sign of consumer inflation, i get that. But there are all kinds of signs of asset inflation right now. I know thats not the main thing you look at, but do you worry that keeping rates for this long could lead to bubbly conditions in the stock market and that that could eventually hurt consumers . Well, i hope that wouldnt happen, and to the extent we did suggest that this would hurt financial stability, as i said [audio difficulty] but we try to focus on unemployment inflation. And i just say right now with [audio difficulty] its important for us to push our tools as hard as we can. Jack rates have been so low for so long that its hard for me to even imagine getting back to historical averagings. Lets say, lets call it a 10year treasury yield in the 5 to 6 rage. I mean range. I mean, is that something that you think we will ever make our way back to, and whats the scenario under which we could get back to those averages . Well, you know, you and i grew up in a time with higher treasury yields. Id also remind you we grew up in a time of inflation. And so to the extent that longerterm yields id just make the point that as long as were successful at keeping inflation lower and stable, youre going to see longer term rates lower and stableler. Similarly, when uncertainty about inflation or the risk of inflation is less, weve been able to keep it under less of a risk premium, i think both of those are elements to what youre seeing today. I think it is also true that our economy, because of activity, because of lower debt [audio difficulty] than it did in the past. I thinks part of what weve seen in the last couple cycles. Jack okay. Im always looking for a better read on the economy, and i know you look at tons of different measures, so im wondering if you can share with us one or two that you particularly like and rely on and what those measures are telling you now about the health in the economy and where we are in the recovery and what the recovery might look like. Well, this is a unique situation with the [audio difficulty] everybody else to focus much more on shorter term metrics, things you can monitor even daily. The couple i look at the closest, first of all, Consumer Spending is of the economy. You know, both debit and credit card [audio difficulty] every year. And that dropped sharply in april. It came back up near to yearago levels, and then its been flattish. So recovery which was steep at the beginning has flattened and flattened just short of where you might have otherwise expected it to be. The other thing i look at is initial unemployment numbers. Like i said, unemployment is a critical part of our mandate, and thats a good weekly indicator of how many people are newly unemployed. And that number, which was running in the 200,000s before the crisis, has come down from 6 million at the depths of the downturn, but its still at about a million a week which is at historic levels. Jack okay so what i take, by the way, or from both of those is were seeing a Consumer Recovery slower than you might otherwise want, but its coming. But i think employment is lagging spending. Jack okay. Have to leave it there. Tom barkin, thank you for coming by to talk with us. And coming up, why millennials are playing a major role in the housing recovery, and whos in a better position right now, buyers or sellers . The panel tackles that next. Hey, can i. Hold on one second. Sure. Okay. Okay safe drivers save 40 guys guys check it out. Safe drivers save 40 safe drivers save 40 safe drivers save 40 thats safe drivers save 40 . It is, thats safe drivers save 40 . Hes right there. Its him hes here. Hes right here. Hi hi. Hey thats totally him. Its him thats totally the guy. Safe drivers do save 40 . Click or call for a quote today. Its time for aerotrainer, with your weight and health . Safe drivers do save 40 . A more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form. Aerotrainers unique design allows for over 20 exercises for a total body workout. 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People are looking to move. If youre a buyer, its tough. We have a story this week about the Housing Market. Weve been looking at the data, every number that comes out right now is just incredible. The new home sales, existing home sales, home builder confidence all through the roof, and its made it really a buyers a sellers market. Buyers are in a tough spot. There arent enough existing homes, and people, most people dont want to move, but there are a lot of people who are looking either to buy their first home since theyre millennials and genz and other people who want to move up because they do find theyre working from home, and its just not enough space anymore. We looked at the situation, we think that these trends can continue for a while and keep supporting the Housing Market. Jack you mentioned millennials. Weve got an honest to goodness millennial among us and a city dweller, carlton. I know al told the us because you recently bought your third buick, youre disqualified [laughter] i dont think thats true. Let me ask you, whats this i hear about millennials moving away from the city . Is that just talk . Is that reflected in the data . Do you think that thats a trend thats going to continue . Dont knock buicks, theyre great cars. The trend to millennials moving out of the city, its something that naturally happens. Everyone still talks about millennials like theyre young. Well, theyre not 20somethings, theyre turning 40, getting a little bit older, and when people who have been living in urban areas, they start thinking about moving out of the city. They have young families, schooling is a little bit easier outside of urban areas, so we are seeing some of that urban flight right now for millenials. Jack okay. But urbanizations been, like, a 50year trend or longer, and its been a dominant force in economics. Is this something that just changes that forever . Do we move away from wanting to live together in cities, or do we think things will go back to the way they were . I think were looking at a temporary effect. In new york city youre seeing rents hitting nineyear lows, vacancy rates up, but the school year, you know, the students coming in for college, thats a big part of the apartment spend. Thats not necessarily happening right now. When we come out of this pandemic and when we return to normal, cities are always going to be a dynamic place, its just probably on pause for right now. Jack okay. And, al, talk to me about some stocks. Weve got a couple of housing names that got some favorable mention in barrons. What do we like about Toll Brothers . Toll brothers, yeah, Toll Brothers ian taylor morrison, the other pick. Toll brothers, just like ben was saying, theyre a play on upgrading. And taylor morrison, you know, two ways to win with that one. Theres the housing cycle which is looking very favorable. They also made a significant acquisition, william lyons, and it was a 2. 5 billion acquisition. The market cap of taylor only about 3. 2 billion, so big potential there. The entire sector trades at about ten times earning, not very expensive. And then the last thing, you know, toll and taylor have a little bit more Financial Leverage than peers. Thats a good thing in an up market. So thats why we like those two. Jack do you think people think maybe the strength in the Housing Market might not last . What do you think the concern among investors . The group is very cyclical, right . Its very boom bust. I i think thats played out over time, so in Industries Like that where the growth might be, you know, gdp or like the overall economy, you dont get great multiples. But its always good to buy these sorts of stocks on the upswing. Jack okay, thanks, al. And up next, round table members give their investment ideas for the coming week. Stay right there. 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Choose poligrip cushion and comfort. Can it help with snoring . Ive never heard snoring. Exactly. No problem. And done with adaptagrip cushioning technology. Save 50 on the sleep number 360 limited Edition Smart bed. Plus 0 interest for 60 months. Ends monday. Jack how many stock picks are enough for an episode of barrons round table . Its a trick question, there are never enough. Carlton, you like lululemon. Tell me why. Theyre totally meeting the moment right now. Theyre in the midst of acquiring mirror, an athome fitness device even as gyms reopen, people respect going to be rushing to go back boo them into them. They led e in atlleisure, aye got my yoga path pants on, but its gotten to be a bit more street wear. Even as people are returning to the office or going out america they even have products that meet that need. Jack the office was already starting to look like a pajama party, im not sure i want to know how casual things have gotten. One question, does lululemon make atlleisure wear for the lets say male, late 40s working from home . Absolutely. They have this abc line that has kind of a more tau houred for, you know, someone such as you described. Jack slim fitting. Were going to have to talk about sizing after the show. [laughter] ben, tell me about starbucks. Starbucks had some good earnings at the end of july, but it really didnt do anything. All of a sudden it got an upgrade this week, and the stocks moving. I like it because people are going back to school,ing that means more opportunities to stop at a starbucks. I think it could go much higher from here. Jack and, al, youve got a, is this a new york city read thing that you like . Tell me about that. Thats right. Our colleague, andrew berry, wrote what i thought was a very smart story. Its the benchmark, i like sl green. It has a new building outside grand central, a little bit higher yield. I will invest in new york. Jack how juicy are we talking about . About 7 . Jack thanks, al, carlton, ben. Great ideas, thank you. To read more, check out this weeks edition at barrons. Com, is and dont forget to follow us on Twitter Twitter barrons on. Thats all for us. See you next week on barrons s right now. Take care. Lou good evening, everybody. President trump making a return to the campaign trail today, holding a Campaign Event this evening in new hampshire. The president s event in londonderry, his first inperson rally since tulsa, oklahoma, back in june. And President Trump is sure to be fired up after he formally accepted the republican partys nomination last night. President trump speaking before nearly 2,000 people, the white house providing a magnificent backdrop to the climax of a powerful Republican Convention made all the more complex by the china