Board. We are off the lowest levels of the day. The dow is at 25,290 there is the nasdaq. Concerns about the virus and new hot spots around the country are part of the conversation as i look at moves, i see a lot of buys that suggest youre optimistic about the reopening of this country. Yeah, thanks scott. When i look at my portfolio as a whole, i have a heavy bias to the nasdaq 100 the qqqs which have done so well i think that as we are reopening that if you look at technically, a lofts tt of stocks like south six flags, they all look similar. They are starting to make higher lows and higher highs. I think as the reopening happens, this is where theres still risk but we think its compensated risk longer term to own some of these epicenter names that we think as the summer happen, as the reopening is happening, i dont feel comfortable just owning the nasdaq 100 and sitting in apple and microsoft and amazon i want to diversify that this is buying low feels like. Theres a million reasons the daily case counts are up this is what you do as an investor is buy when stocks are cheap. I think some of these specific names can do well over the next six months to one year this is the belief of the reopen the epi secenter stocks. Southwest, citi. Almost every stock i read off will fall into this category southwest, raytheon, six flags, starbucks, Las Vegas Sands thats a pretty opportunistic view of where, joe, that bryn thinks we could go i share the same optimism that bryn does and its probably for a different reason i think the dips will be shallow. Your expectation if youre buying this dip, youre probably over the next month or so not going to get much more than 2 i think the market will spin in a lot of different places over the next 30 days and end up right where we are or maybe a bit higher i think longer term because of the liquidity, you will be rewarded for buying in here. Lets understand, you had a significant appreciation from may 15th to june 8ths high. Were seeing a moderation from that advance and i think thats warranted in bull markets. I think thats obviously what were experiencing right now i would say consolidation is the foundation of how i look at the market now courtney, its great to have you back congratulations on the baby. I hope everybody is well its nice to have you. Thank you lets talk about the prevailing view as i said off the very top today its this bullish or buy the dip narrati narrative. Its nearly pervasive. Mike wilson says buy the dip he laraises his s p 500 price target correction was over due. Could have 5 to 7 more down side tom lee not waivering one bit. Piper stan her buy the dip uvs, still room for equities to move higher. Is everybody on the same side of the boat i dont think everybody is on the same side of the boat. Some can buy the dip time horizon is key as we think about buying the dip and what your risk tolerance actually is. Theres some names, some trading in and out where i like the names, where i think they are and theres others that i bought and know im going to close my eyes, hold my breath and know ill be in those names for a while. We are better to buy probably three to one with that he has downturns but a lot of our client vs to stay fully invested or can only have 1 or 2 in cash that prohibits their abilities to raise 10, 20 into cash the way some other i vesters can do. You know, its very interesting market that were watching today its going to be quite the tell, steve if stocks can fight their way back, the way they did overnight, right from some of the lower levels of the futures and now youve got nasdaq positive s p you saw from that intraday is were having this conversation trending towards the flat line or even towards positive, dow is well off of its lows i thought one of the interesting, if not most interesting things ive heard thus far today, steve, was you know, almost an aside from kramer this morning in a conversation he was having with meg. I want to play a clip that i heard on the way in today of jim talking with meg about the market overall and whether if its a good move to join people who are selli ining stocks let o lets listen you and i do a lot in this segment off record and off camera meg, i am getting a level of encouragement about antibody vaccine that three months ago would have been ridiculous i think science is coming together faster. Stooefr, i use that as something i didnt want to fall by the wayside today we all know the kinds of people that jim talks to on a regular basis. I thought that was a pretty profound thought of thinking the big picture about where we could be going on vaccines and therapeutics and why you got to be really careful not to get too ne negative thats the bottom line of ha he was saying dont get too negative because there are advancementscoming down the line a lot faster than maybe people are thinking. I dont think thats a surprise i think its consensus thats not new news. Its part of the reason why we are where we are whether or not people will line up to take a vaccine that the fastest vaccine that ever came to the market was four years and were looking to do it with five months, i know im not going to be one of the first to take the preventative vaccine thats for sure. Lets be reasonable here sure united did another financing. We dont know the rate its going to be. These companies were insolvent to believe they are going to be equity holders in these companies for the foreseeable futures is pure folly in my view steve, are you negative of the market you use the word reasonable right now. Are the views of mike wilson and tom lee and piper sandler, are those reasonable fews that you should buy the dip because things are moving in the right direction and well be higher down the road. Is that reasonable or unreasonableable it depends on the investment horizon. I think that, we have massive liquidity but its not going to driver the economy the future is very briegts im not going to play the game of who can have the highest buy target on the street to me thats Just Marketing for these guys if you take it i think tom lee if you take them all together, it was hard pressed to find anything negative the most negative note i found today, jim, was theres going to be more volatility from mkm. I didnt find one note that suggested people get out to have market, the view is way too optimistic it was win after another buy the dip, buy the dip this guy bumped it up. This one put it, its the same whatever you know the point im making. Yeah. I can get behind the buy the dip idea i can get behind it easily but the problem is i think the dip bottoms out around 2900 or maybe less im just at my firm we have a se narp owe based probability analysis that tells us well reach 2900 some time soon. Dwro to your point about all these notes, theres news thats bad you can read about it 24 hour fitness, one of the gym chains is looking like its going to go under. Theres word out there, rumors that some of the Clothing Stores for high end men will go under, which makes sense. Everybody is working from home they dont need to buy business suits and ties you think about commercial real real estate. We have talked about that a lot. The point im driving at is i dont think we have to be overly negative because the economy is coming back. You cant miss the warts that are on the economy and which are likely to be permanent now, what you do with that is you pick stocks. You know last week, i sold some winneb winnebago because it has done great. Pick your stocks and have a bit of cash. I have 12 cash. Im happy with that. Lets welcome in our special guest today. The billionaire investor leon cooperman. Hes back with us and on the phone. I hope youre well its been a little while since we have spoken with you. I feel fine it was not that long ago i think it was april 23rd. I had a test and the good news is i dont have the virus. The bad news, i have no antibesiant antibodies im healthy and feeling fine i understand your point of view you were with us midapril boy have we come a long way since then in the stock market i think were around 2800. We worked our way north of 3100 in the s p if you said then that we were fully and fairly valued, where are we now i say fully valued but i think its a little more complex. I was listening to the background were debating and discussing and a lot of intel jenintel intelligent things were said cnbc had a e gentleman on, he said the s p was a bubble and heading to 1600. Thats about half of where it is now. A little bit more than half of where it is now. Do you agree with him lets do this. Forgive me for interrupting you. Since you mentioned it and some may not be familiar with what he said let me play a short clip of scott saying what youre talking about and then we can talk on the oh side just to bring everybody on the same page i honestly think we probably go back and retest the lows and history shows us that its very likely that well undercut the lows and get to levels ive talked about before which are maybe as low as 1600 on the s p. Lee hes a thoughtful fellow. You have to make asusumptions. I think we made a mistake shutting the country down. Were not going to do that again. We should give them income subsidy. Let them stay home and kept the economy open were not going to make that mistake again. Its an older o. You liegs. They tend to live together a couple of generations and the vie ris was spreading very rapidly. Im going to go against the advice he was asked for some advice been graduation opinion he told them two things. Im going to go against his advice and tell you six things number one, i dont think well break the lows of march which were 2190. The lows for the year. We will not exceed the february high of 3393 any time this year. High quality fixed Income Securities are unattractive and should be avoided. I refer to them as offering return free risk its high quality stuff. Its yields about 6. 2 a high yields market equates to about 15, 16 multiple compared to the 20 multiple s p i would say that the s p are roughly 20 times normalized earnings i would not normally allow for 20 multiple. The s p keeps changing the index and more and more technology is creeping in. I say 20 times normalized earnings is fully valued i think normalize earnings is 150. It will probably take a couple of years to get back there i think the s p is fully valued. My advice to your aud audience is its not an viermts environmb on margin. What do you make of the way the stocks have traded the airlines and things like that let me explain that we really have three markets currently this is where i think the dialogue is missing something important. What is this three markets number one we have the fang market of dominant rapidly growing Free Cash Flow but they are benefitted from the changes taking place the major threat to them is the government theyre not cheap but theyre not ridiculously expensive google 21 times earnings amazon 42 times earnings i was around in the nifty 50 when a lot of kpaecompanies were trading to 70 times earnings these stocks are richly priced they are viewed as better than gold and the major risk is the Government Intervention threatening the break ups. Thats the price of success in todays economy. You get threatened to be broken up the Second Market is what i call the robin hoods market i was laughing with my wife the other day. Im a contributor for robinhoods for 35 years and given the conditions of the economy, i took a couple of dividend checks and i sent two checks to west more at robinhood because they do such great work i think they said they had 13 million clients and the average age was 31 they are just doing stupid things and will end in tears carl icon liquid dates his position at 72 cents a share in hertz. Excuse me i think the robinhood market is a Second Market where a lot of crazy things are being done. Its almost understandable the government is giving you more money to stay at home than go to work the gambling ka seep kncaseinos. The fed is promising you free money for two years. Let them speculate i think from my experience this kind of thing will end in tears. The third market is the market i traffic in thats basically the value thats Everything Else you can find lots of value in the market even if the s p is fully valued wung of our favorites, mr. Cooper will be sitting on a billion dollars in cash by the end of the Third Quarter stock yields 15. 4 i can mention number stocks. I think the way to look at the market is three markets out there. Theres the fang, the high Growth Market and thats priced like its gold which of those three markets is having the most impact at the present time on why stocks have been able to take that, before the pull back of the last few days, obviously. The robin hood market is skewing it for everybody else . Its very day by day. The robinhood guys got kre macrd when the market corrected 7 in a day. Youre looking for position when the position didnt exist. Ive been on this kick for three or four years. I have zero influence. Its the Trading Systems are killing the market we have to live with this until they discredit it as a nifty fifty. In 1972 and 71, the dominant organization is jpmorgan and u. S. Trust they said we dont care what we pay for what we buy as long as its dom nants world class Growth Company they were paying 70 to 80 times ibm. Along came opec. They increased the price of oil ten fold we had a very vicious recession. It took more than a decade for these companies to recover if you go and look today and think in terms of xerox and ibm and selling at 70 times earnings, youd say who was smoking what then you had in 1987, you had this portfolio insurance notion where you could buy insurance to ins late your portfolio. Then we had a 22 drop in one day and portfolio insurance performed a role and that was out the window in 2000 you had these hightechnology companies. You had sysco and people had no problem with that. Basically its yieldsing 3 . You are looking for precision that doesnt exist i cannot for the life of me understand why the they became very popular. I believe it to be wrong with ups and downs these guys will get chopped up and will be discredited and the money will leave the ctas when i read from these quantitative shops its 50 billion to sell. It has nothinged to with fundamental analysis i scratch my head and laugh. I thankfully left the arena. I managed my own money and only do what im comfortable doing. The positive, the negative is i tell people im like hyman ross in godfather ii. Im retired manager. All my income is dividend interest the good news is i have no pressure and i dont have to worry about performing against the s p. I got to do what im comfortable doing. Thats fine you do have to perform against your own High Expectations which i know regardless of the change of the way you do your business these days is as high as ever. Let me ask you this. I read off the top of the show, today, a list of very well strategists on wall street who are now all suggesting to buy the dip in stocks. Do you agree with what analysis by virtue of the reopening of the country and as you said an unwillingness to shut it down again. The unprecedented liquidity from the fed. Do you think that these kind of pull backs that we saw which maybe shook out some of the froth of the other day are opportunities the buy stocks certain stock, yes. Its a market of stocks and not a stock market i started by buying low and selling high try to have the staying power to hold on. I would say its not a romantic answer its not an exciting answer to you. Im buying and selling every day. I tend to be more long term oriented i want to emphasis theres three markets and not one market the big s p market is fully valued if i had to guess, get to be over valued before this was over rather than undervalued which the consequence of fed policy. Im focused on as an individual, i love if you give me the time, im focused on who pays for the party when the party is over this nation which founded in1 17717 17 1776, we had no debt were running a trillion tlar deficit in the full employed economy in january we been setting out 4 trillion deficits this is a growth rate in debt far in excess of the growth rate of the economy, basically. More and more of our income will have to be dedicated to debt service. Maybe you buy into mmt i think we have to worry about the events after the party is over i gave you in my last experience of the program and i love to get the commentary for your folks who are smart as i am. Maybe probably smarter, in all honesty. I gave you ten things that bothered me. Number one was capitalism, we know it will be changed forever. When the government is called upon to protect the downside, they have every right to regulate the upside. Since i made that comment, it was a congressman who came out and said to the airline, we dont want you to fly with more than a 67 load factor and we bailed you out so we have the right to tell you what to do i dont think in todays environment that any airline could make money to 67 load factor second, taxes will have to go up quickly if biden win, slowly in trump wins theyll have to go up. Things like carry interest, abilities to carry gains all that will have to be eliminated and dealt with. The tax rate on wealthy people are going up when tax rates go up, its not a good thing for the stock market. Before you continue, since that is your sort of your number two concern. Ive had people suggest to me over the last week or so that part of the weakness in the market is to do with the market now starting to look at november and thinking there maybe could be a change in the white house and the very thing youre talking about, a different tax policy because the biden Corporate Tax policy is not going to be the trump Corporate Tax policy i would say biden would take 15 off s p earnings do you think the weakness in the market is related to that . I think part of it was, yeah. I dont think anybody can handicap this election. My only comment i would make and i shouldnt even make it but ill make it its a shame this in nation of 330 Million People were left with these two choices. Well have to wats and see republicans are more capital friendly democrats probably would look to be hostile to the wealthy. Im true and tried capitalist. Ive said this on your program from the past. The main vice the main vice of capitalism is uneven distribution of prosperity we all have to prosper together. I believe in a higher marginal tax rate i believe rich people should pay more in taxes. Lets agree what the maximum tax rate should be on wealthy people i got to get to kate rogers one of our reporters has some breaking news for us what do you have for us . The house of representatives subcommittee on the Coronavirus Crisis is sending letters to the ceos of the nations bigge