A lot to get to and discuss, everybody. Right now, though, a quick check on the markets because theyre higher across the board. The bottom right of the screen and come off the highs, the dow above 27,000 for the First Time Since june 10th on an intraday basis. S p 500 less than 5 from its alltime highs up nearly 50 from the march lows. 28 members of that index hitting a new 52week or alltime high and a cramer favorite stock, mccormick. The nasdaq is negative again there is a lot to discuss. Joe, we are off the highs. You can address that but also this the vaccines plural getting all the attention as they should. It only concerns, you know, all of humanity. But did Goldman Sachs numbers have anything to do with the earlier market strength . I think most of the early gains that we witnessed this morning you can credit to the vaccine optimism i do think, brian, that the Strong Performance from financials in the last couple of days, whether it be jpmorgan or a Goldman Sachs this morning, that has lended a little bit of desire to go back into some of the value names that had not been working previously but what we are dealing with today is very clearly the stayathome trade is the dominant trade for today. The rather the back to normal trade is the dominant trade. The stayathome trade is losing some of the momentum clearly in the marketplace and because of the significant market cap weighting in that stayathome trade, whether it be amazon or some of the other nasdaq high fliers, thats kind of pulling down the market here a little bit. Do i think its a dramatic reversal that began the other day . Its going to signal the end of that stayathome trade . No i dont believe that it is but i just think its creating a scenario where because you have got the cruise lines and the leisure stocks and the casinos rising on the optimism of a back to normal you are seeing money reallocate and weighing on the stayathome nasdaq trade. Thats it steven, two things to discuss. The reversal like monday on the headlines about the Los Angeles School districts closed. I havent seen headlines like that maybe the market knows something i dont. We need to come up with i guess a new acronym. Work from home work from office is this that rotation that joe was talking about . We have seen these mini rotations over the past few months where technology or Growth Stocks sort of take a breather, trade down a little bit and socalled value stocks pick up the slack but ill continue to suggest that value is a misnomer for those names. I dont see value in airlines, in hotels, in restaurants, in industrials. The economy is punk. Thats the only way to say it. It wont come back for quite sometime and theres no value in an airline thats completely upside down financially and is not seeing anybody on board. As they travel so their costs are going to kill them now, in terms of the overall market, look we are in a trading range, continue to be in a trading range. We hit the upper end of it and now pulling back i think todays action, the selloff contribute to pompeos comments of china and the increasing dialogue thats really turning antagonistic with china, one of our largest trading partners and will continue and what we saw with the vaccine is that its covered up some of those problems, some of those headlines and thats the reality. I think you still got to be cautious and not advocating taking major exposure off. Im finding opportunity in other names to balance out the portfolio but we are in trade range. Period thats the end of it Technology Growth will come back values not sustainable here at these levels. These are good points, brenda we talked for two years about a trade war precovid. Thats kind of still going on. We have u. S. Military assets moving to the South China Sea because we dont like what theyre doing with oil and gas there, as well there are a lot of underlying problems that may or may not have anything to do with covid. Thats right although i will say i think covid still remains the biggest risk here in the market, especially risk to our overall economy. In terms of slowing some of the momentum we saw in may and june. But i think the one thing that not many people are talking about that is important is that even though the fundamentals might start to deteriorate from here from the economic standpoint there is a lot of cash on the sidelines. Theres a report a few weeks ago showing that more than 50 of the value of the market capitalization of u. S. Stock market is sitting in money market funds both institutional and retail given the severity of the situation here with covid, we have a lot of people that raised cash and are probably sitting on a lot more cash than they are comfortable with and looking for a spot to reinvest that so i think to the extent of volatility here in the market relating to the Disease State and as it relates to Foreign Relations that we could serve to stem some of that volatility as that money finds its way back boo the equity market and given where bond yields are, safe bond yields, it really is one of the only alternatives thats going to earn something more than the rate of inflation. But i also think that earnings estimates as we have seen, it is very early in the season here, you by estimates are pretty low this quarter we were dealing with a situation where there was no guidance from anybody because no one knew how bad things could be and no reason to get really aggressive with estimates and seen them come down ahead of earnings season and i think likely to see an earnings season where things arent as bad as everybody thought. Yeah. It could help support the equity market. I dont know if you got an advanced look at my show tomorrow morning but the rbi is about the cash on the sidelines. You blew the rbi i have to come up with a new one because its a good point. Sorry. Kevin, it is a great point. Ill give it away now. Kevin, i like you. Theres 5 trillion in cash. The market cap of apple, microsoft and google combined sitting on the sidelines right now. Will that ever get back in the game sort to speak are you seeing inflows of those shares it will i am well aware of what that cash is doing. Yes, oshares doubled the aum just last six months as a result of people trying to find that special magic number of 6 i dont care if youre a Financial Institution or a family trying to get by off the investments because you are in retirement thats between 5 and 7 Cash Distribution yields and what has occurred over six months and the whole bond ladder of government bonds has gone away as an option you cant invest in a 30year bond and make less than 200 basis points without taking huge Duration Risk and inflation risk and as a result that cash which continues to build up is going to have to find a way to get a 2. 8 return and then find quality Balance Sheets in think sector you wish to pick that can give you two things protection against inflation when it does come and i think after sprinkling 7 trillion of aid on an economy of a helicopter well see inflation and you want protection and generally the s p can give you that lastly, that 5 to 7 that you are looking for. You get days like today when sectors that are severely impaired like financials have a run, it is an opportunity to reduce exposure to that and if you say to me, well, is the stayathome trade over . I dont call it that anymore i call it america 2. 0 efficiency digitization im betting that the s p will enhance the margins by 4 over 2 years cutting back on the inefficiency that it used to have with too many people working in an office or not selling direct to a customer that is going away with digitization and that trade remains intact and overweight that anything to help me digitize america im long anything of the legacy stuff like the utilities or banks i dont want to own those right now. They have to go through a complete mark to market realization of asets that have been impaired maybe permanently. These are all points. Listen. Theres only 3,600 in the wilshire 5,000 because theres not enough stock to name the 5,000 names. Maybe the biggest bull case of all is boring. It is just that you have a lot of money global, manufactured, printed or whatever to chase fewer assets long term. I think thats a big part of it we have seen how much money is printed, how much stimulus we have and further to get and i think we are at a period at least when you compare it to two months ago that potentially we are going to see a vaccine and we have got multiple players doing it what does that mean to the economy . You have to take it in a diversified place. If this stays the way it is, then, quote the stayathome stocks do well, but theres a combination of that and you have to look and see where the next growth rate will be and whats going to do well and not and a lot of businesses that arent going to represent what they were just six months ago but thats kind of where we have to look at and if you look at where inflation is going to be and purchasing power is going to be, you have a bar bell strategy i believe in the value side. If you look at the industrials and financials theyre valued but you have to be picking and not just buy the xlf, the whole industry its going to be specific. Thats where capital will flow and then investors will do well making sure that theyre allocated to the right stocks. Well get to goldman later. Your point is well proven. Joe, i want to get a final comment before individual names. Goldman sachs out with a note today saying they expect 6 analyzed gain for the s p 500 for the next 10 years. That sounds okay its a little below historical and down from the previous forecast if our viewers or your clients or friends believe that note, is that enough of a hook, of a lure to keep them invested in equities should they look to real estate or Something Else . Theres been much written in the past six months about the death for the 60 40 portfolio. Why . Because of bond yields at historically low levels and the potential that we will not be able to achieve an analyzed expected return around 6 . So david costons note is the outlier in the minority thinking looking forward you will be able to achieve that 6 i think it is going to lead to an environment where active managers will once again become favored. I think passive investing will have to take a step back in that environment. I heard the word used by sarat of diversification and clearlya utilized not only domestically but going to the emerging markets and thinking of equity size class so i think it would be very challenged and i think the expectation is a 6 annual return will be difficult to achieve and thats why i foresee the markets becoming far more active. Okay. Good stuff there we can discuss the note another day and now individual moves in this market. Stephen, start with you. A few months ago we talked about used car markets going nuts. If you can afford a car you will buy one because you dont want to be on mass transit trying to isolate yourself is that part of the reason you bought the automaker stocks . Thats one of the small reasons. I have wanted more exposure away from just my technology and my growth names these seemed, ford and gm, reasonable candidates because of used car prices, because you have tremendous demand constraint in the early days of covid and Car Companies cut back their production schedules inventorys very, very tight they wont have to give as many concessions that they have in the past i dont expect them to explode to the upside but i also see very, very little downside in either ford or gm and thought a risk reward basis theyre attractive and shaved some exposure, not tremendous but took down some exposure in some names where they got ahead of themselves on a near term basis and because i think we are at the upper end of the trading range. Really interesting. Im sur pridesprised you can owr company not tesla. Kevin, what about the digitization of montreal i understand youre adding to the shopify position. Yeah. On shopify turned out to be an extraordinary platform and using again an index of private companies and watching how they maneuver for five and six mot movants. When people look at American Companies servicing american markets, 68 out gdp is Small Business in america. They typically were 50 in retail and 10 on their own websites to consumers. Retail shut down effectively in most locations and so what many of them have done has combined digital platte forms like a facebook with a shopify to connect directly with the customers so if you had a store in nashville, tennessee, and its closed now you go to shopify and the reason instead of putting more demand on amazon distribution, its another retailer if you can sell direct to your customer in a town like nashville, and your sales drop in half, your net cash flows are the same yeah. I have dozens of examples of this you reach out to that customer and sell them directly i was so hoping that facebook bashing would push that stock down and i admire those that need to bash facebook and i beg them to do more of it. Let me buy that stock at a lower price. Hit them again the platform is so efficient. Okay. Quick followup to you can you own both amazon and shopify . Do you have to own them both covering both sides of the spectrum or ultimately sort of take each other out . No, no, no. You can own them both. My point is by the way, let me tell you how much i love amazon as a shareholder and a customer theyre 40 of my sales across the portfolio of over 50 companies. Theyre very important but for every incremental dollar on shopify i get almost 100 gross margin amazon puts the brand tape around the box, stick other peoples product beside mine when i ship a shopify product, its my brand and 100 gross margin the partnerships like walmart with shopify and facebook, this is the new emerging market for Small Business in america and you need to own it thats my opinion as an investor and i live and breathe it every day. I love amazon and love, love, love shopify. Yeah. I mean, hey, i think it is now the maybe has been for a while the single Biggest Company in canada by a long shot brenda, we have been talking about this work from home or stayathome trade you have done the opposite and bought Bookings Holdings recently will we go to gt something o and go somewhere we have exposure to all the big large cap tech names, maintaining that exposure and recognize the importance of being diversified and having exposure to High Quality Companies that are beaten up that certainly whose businesses are being incredibly impacted but that will likely be favored in an economic recovery scenario, especially if we continue to get good news on the vaccine front and the market say maybe by august of next year when a vaccine is available. I think the forwardlooking mechanism instead of discount back and properly value the companies with more exposure to areas like travel and leisure and booking is an asset light model and we think its well positioned in leisure which is the first part of the travel industry we think to come back and business related travel will likely lag so we like it but its really been as said a stock pickers market in the environment and we think there are individual opportunitys that are still really interesting and booking holdings is one of those. All right thank you very much. Lets get to a market flash with deirdre bosa what are you looking at today . Hey, brian. Zoom shares have bounced off session lows but down 4 and this comes as zoom has announced that it will be getting into the hardware game with a 600 device called zoom for home and made by its partner and its very similar to other video chat devices like googles nest hub, amazons echo show those devices, however, are far cheaper. This is a price tag as i mentioned of nearly 600 investors are not really loving the move the stock is down about 3. 3 and it has bounced off session lows. Back over to you. All right thank you very much. Still missed the eagle lets dive deeper into the stock story of the day and one that was driving everything up markets still up off the lows and of course moderna. You got Piper Sandler raising the tar get. Hit 88 earlier today and still a good day on good news not just for the shareholders but maybe for humanity as we noted you on it. Are you selling or buying more no. Ill wait for another inane moment in the market to buy more if you recall, the stock got hit and hit for a few days when pfizer came out and released their results and i bought more then messenger rna is a technology both pfizer and moderna are using. What people lose sight of is the fact that moderna has a pipeline of almost 20 other drugs that if you ratify the technology, which is the same as the ticker, then you have a huge company here, so ill use any weakness to purchase more shares theyll start phase three july 27th they said so maybe the stock bounces up again then and any opportunity you see where pfizer is making strides that means you have to buy moderna, as well. About the vaccine, doesnt matter if they make money on the Covid Vaccine because they make money on the rest of the portfolio. Number two, in a man or woman on the street poll, i dont know anybody taking that vaccine early on takes four to ten years to develop and given the technology you can say its a lot sooner because of the technology, still, i think very few early adopters of the vaccine. That wont matter in terms of the market you will continue to see lifts in the market with good news coming out. Not the only ones the astra zeneca news. A Chinese Company have said that theyre making great strides, as well now move on to the banks as we said earlier, we are learning that not all banks are built the same some have a lot of mortgage exposure wells fargo and the market doesnt like that. But if you have a giant trading desk you pretty much printed last money last quarter. Joe, Goldman Sachs crushed expectations and the stock barely reacting today. What gives what gives is the commentary on the Conference Call where it was suggested by management that there was sot sustainability in the type of Strong Revenue thats being derived from Capital Markets and trading in the prior quarter. So thats one of th