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Netflix and amazon. if they fall more, ill probably buy more. im a long-term holder. >> when you say spx -- >> no, no. spx. >> the s&p 500. >> neil: so thats representative of the 500 best companies in the united states. as a reflection of that, you want to buy that entire average? >> yeah. so i didnt make a big position. but its there. look, the market could go down a lot more. i dont know. over the long haul, i think well be okay. >> neil: let me ask about okay, a lot of people look at today a...

>> neil: are you calling this a bear market? is this the start of a bear market? >> no. what im saying, its difficult to lock at the data and say everything is great. so what im saying is attitudes and behavior have a lot to do with this. behavior and attitudes have been strong, positive, a lot of optimism and pick up in investment growth which takes confidence. were seeing a pickup in expected growth in the global economy. the list in equity values, the closure of the spread between corporate v...

As beneficial as the tax cuts have been for the short term, the risk that people will spend that money which in a lot of respect is good but that will increase the trade deficit. who knows how the administration will respond to a bigger trade deficit. could -- >> neil: or might increase the gdp. >> im not saying it wont. depends on how the money is spent. the key is we dont nope what will happen. >> neil: and the mood of investors has been the bull market and they kept buying, been rewarded rich...

I remember in the middle of the session and leaving the session and going to the nearest bar. we went on a decade long run after that. it was tough to go through it. this is what you have to do. you have to explain to folks, the late comers, theres a lot of people that missed a lot of this rally, just got in, feel like theyre snake bit and they lost again and they were sellers. you had a lot:0 programs selling. you joked about the times lapse thing. at one point it was real time. >> neil: im tel...

Sures but overtime they do better? >> i love that idea. if you can take it a step further, buy according to the fundamentals. were halfway through earnings season. 50% of companies have recorded. guess what? if you have a company that two weeks ago stock went up 10%, that news is still valid. if its pulled back with this wide pull back, you have a gift. so people can do work, theyre going to find a lot of great names that we know theyre great because a week or two ago we saw what happened when t...

Kevin, to that point and what happened, i notice midday a lot of money found its home in bonds and treasury notes, particularly the ten year because that had gotten its high around 2.79%. so obviously a flight to quality there. whats going on? >> yeah, a market that has gone very strongly up for a long time now and then got really super charged as we came into the year. weve had a really big improvement in the level of values for the u.s. stock market. we got up to something like $33 trillion gi...

Be in the market. as interest rates go up, maybe you consider buying inflation protected securities or buying something else that is basically safe. part of the problem today and why we had the biggest sell off ever is when markets go straight up like they have the past 14 or so months, people get over confident and theres a saying, everybody is a genius in a bull market. when they get over confident, they buy on margins. that works until it doesnt. so youve had people -- i think i saw something...

You hear about a couple of buys a couple days later that come in and say this is where market valuations are appropriate. i will tell you, if you look in january, a great january, we wiped out those gains, the market valuation if i was to rate it on a 1 to 10, its ant even. its not that much over valued. its not undervalued. so its about where the market should be. you guys talked about in the previous panel, the great commit data, the health of the banks, the strength of the balance sheets, the...

Greed turns to fear quickly. i dont think you get this type of move down and everything is a-ok. i think we are going to see lower. how much is anybodys guess. speak. >> neil: a lot of people want to see a 10% correction, as though there is something magical about it. normally goes beyond that. what do you think? >> im going to guess we are going to give half back what we got out of the election, may be another couple thousand points. last monday i said i thought were going to see a 2500. drop. ...

Run up that made me look like a genius. is that still a white strategy here? really depends on your perspective. i repeat the of course. the younger you are, the less urgent you need the money right away. the better you are sticking with markets. if youre really young, 20 years. all kidding aside, i want to raise this with charles payne who picked apart whats going on here. what are you telling your investors right now, charles? >> i rallied the troops. i had everyone come in early. with tried t...