Questions, i think, heading into this new month is can big tech stage a big rebound because september was fairly dismal. Apple was down more than 10 alphabet down 10 microsoft down almost 7. Amazon down almost 9 facebook down 10 y do you see all those pull backs represent consolidation. That up trend remains thoroughly undisturbed. I really dont think profit taking and consolidation the month of september end up being meaningful i could be wrong thats the way i would think about it 42 of stocks in the s p five hundred are above their 50 day more than half of the market is not. The consumer stock, Consumer Discretionary looks incredible equal weight retail looks great. Anything that has to do with the consumer looks pretty darn good. The big trends are all in place. Target, new highs. Walmart looks like it wants to break out again. This morning i heard 11 of americans are now already paying for walmart plus they rolled this thing two weeks ago. They have 11 of the country as m paying members 160 Million People a week visit a physical Walmart Store or walmart. Com. Bank of america put it on their conviction buy list. This stock will go higher. The Home Builders, forget about it this is a theme ive been pounding the table on all week 24 these numbers are extraordinary. All these stocks are at new highs. Were talk about the consumer and have the conflicting headlines regarding stimulus what happens to the stock market to begin this new quarter if you get nothing out of washington . If you get nothing, scott, that is going to be a real negative i think its more negative than koe ved at this point as far as a risk to the markets. Obviously, if dinoesnt happen this week, Congress Goes back to their various districts and states and campaigns either for their race or for the president ial race. That means that were not getting anything until after the new president is sworn in, whoever that is, which means that earliest were looking at a february bill which doesnt get out to people until march, scott. This would be, not doomsday but really bad for the ppp as well as enhanced Unemployment Benefits for those however many there are. 18 million americans that are relying on that and not had it in most states since july 31st i think that is necessary. If we dont ghaet, thats the biggest risk in the short term i hope ms. Pelosi as well as Mitch Mcconnell are really paying attention to that its a point thats well taken. Its already too late. They need to get the money to people every day that goes by, another business dies. Its probably not one business its probably a hundred businesses every single day they need to pass that fast. Especially as were talking about thousands of layoffs in Different Industries by the day and in some cases, sadly by the hour liz young, risks no stimulus . The path of the virus is not good right now uncertainty around the election and potential chaos on and around election day. How do we size that up heading into this final stretch of the year we can always outline risks were really good at listen listing off the things that can go wrong here is thing about this recovery, i wouldnt bet against it i wouldnt bet against it for the next 9 to 12 months. I realize that fall will be tough. I think the root of a lot of disappointment is having our expectations set too high. Id urge people to reset their expectations were in a high stakes election season we may not know the outcome of the election the first week that we have election day i would expect volatility to continue i know were having a good week but i think october will be a tough month. Set your expectations that the market can probably not rally through this fall. As we move into the end of the year and as we get into 2021, regardless of who wins in november, i think we get spending it will look different but i think we get an infrastructure package out of either party and thats a boost to the market i wouldnt bet against this. I agree with josh. I wouldnt bet against the consumer i wouldnt bet against housing i think we still have legs in this recovery and although there are risks, i would expect the positives outweigh the risks going forward. Whats the Biggest Issue that investors need to have their eyes on . Is it this underperformance in september of big tech, which was a huge driver of the market gains . Is it the path of the virus . Is it the run up to election day and maybe complacency that exists currently within the marketplace . Is it the relationship between growth and value and what wins the day in october and beyond that drives stocks whats most on your mind what should be on the mind of our viewers . Well, the answer is yes to all of the above with the exception of the debate growth value i think youll make more money in growth than in value. We continue to see that except for rare instances the good thing about this generation of investing, what i mean by that is for people that have been doing it for a long time, theres very few things that sneak up on you youre not keeping money in the market or putting money into the market without the realization that youre not going to know the president until after election day i agree with jon short term its stimulus we could be down 5 in a heartbeat. There will be increased volatility weiss youve been putting money back to work in the market including places that maybe you were skeptical of like peleton we mentioned that yesterday in thinking that some of these stocks were just going to continue to go up forever and ever now putting money back to work in some of these areas even though they have run up a lot. They came out with boot camp, with so many other things. When stock traded down 6 that day, i guess it was last week, i bought it back im very glad i did. Its a Phenomenal Growth story its going to keep going you know, i spoke with chamath yesterday. We hit on everything i think it plays into our conversation now from stimulus to spacks. Some refer to him as the king of spacs. Lets listen and we can discuss this on the other side i think the markets are going higher the markets are going higher because i think the presidency and the impact of the presidency is being divorced from the Economic Future and prosperity of america i think it is really important to understand that you have coupled together monetary and fiscal policy. You have a treasury and the Federal Reserve that are acting in lock step and they are printing trillions of dollars and they will have more of an impact on what the next four years looks like and thats just the honest to god truth of whats happening you have rates at zero you have absolutely no growth and so you are going to fuel aset Price Inflation you are one 100,000 percent right. This industry is the same as every other industry there are great hedge funds. There are crappy hedge funds there are great private seequity firms. There are crappy equity firms. Its crucial that people do due diligence, read the disclosures, the s fund, the s4s people go into kpuntcommunitiest are talking about these things you have to fundamentally rank people at the end of the day, what i will tell you is more than anything else that i realize in 44 years of which 20 ive been investing in some way, shape or form, those people that put more of their own money on the line tend to make better decisions than people that are riding other peoples money if you look back on the single greatest investor of our generation, the most important thing you would have done by backing warren buffet, the best thing you would have done by backing jim simons is allowing them to compounds their own money and going along were the ride with them i think thats a really important point. Read the disclosures, the diligence and how much of your own money are you putting on the line yours . Not other peoples, not your funds . How much of your own that will predict the outcome more than anything else. All this money should be focused on those people. We should be improving Unemployment Benefits. We should make sure they dont get forced out of their homes. We need to compensate these folks. Thats what we need focus on you need to put the money into the hands of ordinary americans. Stop putting into these boards and these ceos they are not well run. Josh, lets start at the beginning of what chamath was saying i think its going to be interesting to many people the outcome of the president ial race doesnt mean anything and maybe not what it normally would because of the current environment that youre in with a fed and a treasury that are fully engaged. That are going to remain engaged certainly from a Federal Reserve standpoint and that supercedes Everything Else. I agree that Monetary Policy and fiscal policy are a bigger driver for investment prices and values than whoever happens to occupy the white house the president typically gets a lot more credit or a lot more blame than what they deserve depending on whether the markets are good and bad thats both parties every presidency those headlines about here is what will happen under trump, under biden, i really dont think thats a good basis to make Investment Decisions especially if youre investing for the long term. One of the most influential factors on investors right now is the cost of capit caital ande cost of capital is zero. Spacs are a great way of that. Its an extraordinary time for capital formation. Its never been cheaper to raise money. I dont see that changing tomorrow or the next day when that kind of environment, valuations for stocks remain elevated valuations for real estate goes up go ouall the way down the chain i think what hes saying is right. I think a lot of people have realized that for a long time now. I dont think its a newer or novel insight. Maybe you could say postpandemic its like on steroids or been accelerated liz, spacs, the latest and greatest investment opportunity, i guess you would call it. How should our viewers view these right now relative to all of these well known investors who are now and even as i mentioned to chamath, even Martha Stewart has a spac. Now today you have the very first spac etf that goes out for trading. How should we view these look, i think every five to ten years or so we get a new vehicle to invest in we get a new vehicle thats available to individual investo investors. This is another trend like that. I like the fact its bringing more interest to the market. I want to go back to a point that josh made and really harp on something policy that we have gotten and sochl t some of the activity keeps prices elevated but it doesnt drive a rally from here. We have got support underneath us from the fed. We have support underneath us from the government. That keeps valuations maybe where they are and it prevent a huge draw down and a blow up in Something Like the spac space. It doesnt necessarily drive a huge rally thats fundamental ly based from this point. We need the economy to follow us we need consumers to follow us and we need the strength to come back spacs fall into that same camp in other words, the fed has already done the heavy lifting getting us to where we are now now you need the fundamentals to catch up to jay powell and company. Thats what youre saying. Our viewers should be taking a look either through this new etf or through spacs in general. First, to his first point about the president , ive said they are like managers of baseball teams you know the mets won in 69 but very few can remember that it was Davey Johnson who was the manager of team at that point. Lets put that aside, although i do think if you get the trifecta with the democrats, you stand a much better chance of stimulus i see the republicans divorcing themselves from trump in the second term because they have nothing to gain about pushing him for reelection. They will go somewhere else. In terms of spac, you have to be careful. Keep the Companies Come public they have not acquired anything yet. Youre buying it on faith. You have to go with the jockey i take a look at a company like nikola that should be trading probably close to zero the stock trades up yesterday and headlines that gm will take a bigger stake of course, they are taking a bigger stake you lost me at the mets in 1 1969 you said davey its gill. Dont disrespect my guy. My goodness 1969, Davey Johnson. Okay. 73. Wasnt it . Just stop just stop. Lets go back to spacs. Chamath is right some good, some arent stocks trade up 10 . They were given two billion of stock with the Companies Price at 36. Of course they are going to be given more stock with the stock trading, the stock price half of that stay away from the junk. Stay away from the hype. Wait until they buy a company so you can assess the fundamentals rather than these blind pools. Blind pools are really dangerous for anybody to invest in dr. J i think weiss is Mistaken Point about Davey Johnson aside, it is about the person running that show and whether or not they put the right team on the field. If youre looking at brad or akman or any of these folk, those are spacs if i were betting in that space, scott, id be willing to go and bet on those managers because i think they have already proved themselves some of these spacs have people ive never heard of running them they might crazy out perform but id rather go with somebody who has been in the Public Markets and trading real stocks rather than venture type investinvestm, id rather not bet on those folks. I want to bring up a note that tom lee had out today that i thought was breasti iterestin move a more general conversation about where we are in the market he says equities have struggled against the level of 33. 63 we think if equities can close above that, we could have greater sense the worst is in de indeed behind us thats a key line in the sand. Do we agree . Josh you watch the technicals too. Tom lee is closely followed by an awful lot of people and has remained pretty bullish throughout i keep coming back to this idea that just because the calendar turns over from one month to the other, it doesnt mean we play Musical Chairs and trends start reversing themselves i think what has worked shows no sign of stopping working we talked about housing. Think about large cap tech and recent ipos. These are two of the best places to be in the market and when i go chart by chart and i look at data dog and i look at some of the new stocks that have come out this year, im in crowd strike i was buying it in the 120s. Averaged up in the 130s. Theres no news on the stock it keeps ripping higher and higher these are not stock prices that are divorced from fundamentals the fundamentals are phenomenal for these companies. You cannot do work remote, work from home, whatever you want to call it without things like Cyber Security and collaborative business software. The fundamentals are great are we over paying yes. The great throughout history were never cheap you had to overpay you had to pay 30 times earnings for starbucks in first 15 years of being a Public Company. I dont want to tell you what the multiple was for amazon. It was a multiple for sales. These are the areas of the market that are driving us forward and again, i dont see this idea we go from september to october and all of a sudden the trends are in verse. When you look at technicals as i know tom lee does, you see the intermediate to long term up trends in Huge Companies and they look pretty solid youre helping to make this point to the fed has lifted all boats some that may be are have a big hole in them they were lifted by the fed and to lizs point, now its time to put up or shut up. You have to see some fundamental improvement in some of these businesses to justify the move theyve had. I would say its not been the case over the last ten years that you needed the pie to grow substantially in order for there to be substantial winners. There are corporations that have vastly out grown that and Share Holders have been rewarded there are entire sectors i dont know that all of a sudden were going to have a huge c change in the long term trend of Economic Growth gets a bit better. Gets worse i dont know anyone with a straight face is talking about 4 gdp growth after this recovery period. You had invested in a venture round. Talk to us about the company, what you do now that its pub public lib traded. They own two of these from venture that is now public asana goes in the same bucket with like worse day service now. They have involved in efficiency and collaborative work unity has the potential to be a massive company. Its a 16yearold company they are the engine that allows all the Video Game Developers to do 3d now they are branching out into animation working with disney, hollywood. Some of the biggest video games of the year and of last year were built using Unity Software tools. They were an engine. When you think about whats going to happen this christmas, we have two platforms, two new console upgrades the new xbox and new play station. Unity will be a very important part of that story as people get excited. Im not trading these, im restricted on them im in them. Im in them at much cheaper prices they are exciting. Theres so many of these companies coming to market now they wont all work. They wont all be great. I concede that point but many of them are what is, the hottest space right now within technology, software as you saw from cloud, from snow flake which went public a week or so ago. Well take a quick break coming up, first day of the qua. We give you a strategy ahead of the lek and more as we head out, check out mission produce. Just beginning trading as a Public Company u6 p were back after this. Welcome back, everybody. Here is your cnbc news update. In new york, the latest coronavirus outbreaks are spreading. In 20 hot spot zip codes the rate of positive coronavirus tests a