U. S. And iran is not the last. Irans leader, vowed retaliation tweeting the great nation of iran will take revenge for this heinous crime. The killing of soleimani send shutters through the financial world. Oil shot up stocks under immediate pressure. But that came after the best year since 2013. The dow ended 2019 up 22 with the s p 500 and the nasdaq a doing even better. Of course wall street seems to live in the perpetual state of worry. So despite overall optimism that the stocks in the economy will continue to grow in 2020, there are fears about what could finally put the brakes on the expansion we have seen since the Great Depression more where the binned unknowns of the president ial election. President of trump has gone over Strong Economy. And if it stays strong that will bode well for the incumbent. After all they famously told us when it comes to winning president ial elections its the economy, stupid. But trumps potential rival see things a little differently. They. To income inequality, soaring healthcare costs, soaring student debt, the president s behavior, and many more as bringing about fundamental economic change in america. So what to expect in new york . Build the markets keep their pace, will the economy keep up its growth, and how will the conflict with ironic the president ial race change the equation . Well here to help me answer all these questions today, mark think its mr. Joining us. Its a pleasure. Its. Gerry lets start with the big news for this week and of course it is iran. Of course they have a vowed retaliation for the assassination of soleimani. Markets initial reaction has been negative, but not hysterical at say. How do you see these kind of events playing out over the next few weeks . Its i think you will have volatility. But at the end of the day, its a little bit of what you just said. Its really the economy. So if the economy is doing fine which i think it is, markets will do fine. I dont think the market will be up as much as it is this year, but markets will do fine because the economy is okay. Gerry okay markets will see how it unfolds of the next days or so, but they seem to be taking it really reasonably wellin stride. Are you surprised that people are relatively calm so far . There, because they dont know whats going to happen. I think if there are events that lead to americans dying, and where does it go . Does it stay where it is . Just keep escalating . Then i think the markets will get extremely nervous about that. Gerry those of risk tend to be overstated. In terms of their impact, their actual impacts on the economy and the markets, and some of us are old enough to remember the stock shock. But 911, there is an Immediate Reaction within the market came back. Goal for the market took it in stride. These events although everyone worries about them, they do seem to not to fundamentally change right at the start. Its kind of the trajectory of the economy. I dont think they will and less prices stay high. Then you will have a real impact. Gerry but sometimes that helped. Now they are Net Energy Producer and exporter. They help Oil Producers in the u. S. But does not help the consumers. The economy is earned by the consumer. So i think if you end up having, if the oil when its around 55 to 65 its fine. But if it gets above that, i think it starts having impact on the consumer. Gerry lets talk more broadly to the markets before this all happened. We were basking in the extraordinary markets that many people did not see it happening. I year ago people were saying stocks were going to be really rough last year end they were wrong. Bonds, despite the strength of the uk, the u. S. Economy was how bond yields on the year overall down but stocks were up. Why did the marcus takes my surprise . I think if you look at what happened at the end, or the beginning of this year, the end of lesser beginning of this year, the perception was that rates are going to move up. So rates moving up is not positive for the market. Nobody forecast that in essence the fed would lower the rates. The lowering of rates, and lowering to where it is today, has fueled this expansion and is continuing to fuel this expansion. I think the fed was worried about growth, and saw that growth had slowed down a little bit. And decided to lower rates and because of that the market is taken off. Gerry cannot go on . If they say they are not planning on cutting rates and again, and maybe not 2020 but maybe 2021 . Will that put a cap on what may happen to the markets overall . I think it will, but he think what she will have with the rates as low as they are today, and the economy doing fine, if the economy is growing at 2 them markedly fine. The question is, does economy slowed down to sort of a 1 , right now i dont think anyone is forecasting that. Civil me look at it, we think gdp will be around 2 . So i think thats fine. Its. Gerry where the wrist to that . We talked about the political risks in the middle east. Tech is been a big market issue. Do you see this happening and changing things . I think a lot of it is good to be a little geopolitical. And part of it is sort of what happens here in the united states. Two people start getting nervous. The problem is every year people keep telling us this expansion is not going to continue. So windows somebody did side im not going to go out and spend money when the literally two thirds of the gdp is driven by Consumer Spending. So if there isnt any of that Consumer Spending you can see a slowdown. I think it is going to be hard just because everybodys Interest Payments are getting lower, so people are getting more money to spend. Youve got a low unemployment rates, so it would be hard. Even things slow down a little bit, mama slow down run one half is fine. The markets will be fine. Gerry lets talk about one of your particular areas of specialtys debts. What is going on the debt markets, what is the concern, one of the features weve seen in the last few years is huge explosion of corporate debt. Theyre buying back a lot of stock in particular with taking advantage of low Interest Rates. How much should be can be concerned about the levels of debt and the economy . Its growing. The problem with the debt that its going on out there right now the good news for the company scissors no real governance on it. Its going to be easier on that company. But the amount of debt that is growing, it just keeps getting larger and larger. I dont think its an issue yet, but it will get there the next few years. Gerry you mean the terms of the debt is easy on the company. Yes. Gerry said easy terms you have easy Interest Rates its still pretty, by historical standards very good. Its very positive. Gerry so does that mean we can continue to see the Companies Issuing the debt they had last few years . They will for one civil reason is the problem today if you look at whats going on in europe, and the u. S. , rates are low. So where is somebody going to end up making that coupon, that interest payment. So we can you can go borrow two or three or four percents, youre gonna do that because on the equity side, theoretically if you issue equity or expose to make ten or 15 . So today if i can issue debt and pay four to 5 , thats about half the price. Im going to do that as often as i can. Gerry this expansion is already the longest in u. S. History we arent the 11th year. Normally this stage of expansion you see stress or inflation picking up. Maybe theres Housing Market bubble or maybe a bubble and other asset markets. Were not really seeing any of that, we dont see those that might derail the expansion. I dont think you will. And what youve never seen his rates this low. With rates this low, its easier to have mistakes. So for companies that are borrowing, the borrowing costs are lower. So even if there is a slow down, they can end up meeting the Interest Payments for consumers its easier to borrow, so thats was feeling this. And it will continue to fuel it as long as rates of the slope. Gerry minute take a break quick break but stay with us. We are to look at the markets and economy in 2020. And we will also look at the Political Climate and what we can expect in the president ial election. Stay with us. Ve got the power of 1, 2, 3 medicines with trelegy. The only fdaapproved oncedaily 3in1 copd treatment. Trelegy the power of 1,2,3 trelegy 1,2,3 trelegy man with trelegy and the power of 1, 2, 3, im breathing better. 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Whoof whoof so get allstate where good drivers save 40 for avoiding mayhem, like me. Sorry hes a baby today, john got dressed first date with sarah. John told his stitch fix stylist evan that tonight was a big deal. So his stylist did the hard work for him. Browsing hundreds of styles and sizes to find the perfect fitting shirt and blazer. So that tonight john could feel totally himself. At stitch fix we dont just see your size or your style. We see you. Let us find your perfect fit at stitchfix. Com. Gerry i am with mark lazzaro. I know something this excited shoe into rails expansion on the republican side is President Trumps defeat at the hands of the democrats and the election. Maybe we will have a democrat who doesnt favor pro market policies. What you think on the democratic youve raised money and you have donated to president ial candidates joe biden has lead in the polar just little bit away from the polls in iowa. People like joe they like what he stands for. I think at the end of the day he will be the nominee. So you sorta have seen over the last three to six months, we started out with probably 20 candidates, and that keeps on, i know yesterday another candidate dropped out. So i think you will get to sort of really four or five candidates. I think right now its really biden. Gerry there is a desire for change there wasnt toy 60 when and they elected donald trump. The democratic primary people like Elizabeth Warren and Bernie Sanders are making running. It seems of the going significantly to the left. Do you think biden answers the call for change . He is been in politics as long as you and ive been alive. He was elected to the senate back in the 70s. As he setting aside his age, his does he represent the possibility of renewal . What democrats really looking for . We are going to find out. At the end of the day from is not about change. He can talk about it, but hes been in office, he is running as the incumbent. Gerry he is change things look at immigration, and trade, hes definitely change that. But people want that they will vote for that. I think what biden is representing his look hearers he has a different view of the world. The question is do the majority of americans agree with that . The great thing about this whole thing here is, at the end of the day people are going to vote. And whether its biden nordstrom, or it sanders, earl warren, someone is going to come out on top. And thats can it say where the countrys leading. So my view right now is that biden will end up getting the nomination. Gerry if he doesnt, i talked to somebody the other day and they said bloomberg is kind of a biden the hedge. Its kind of a similar type of politics certainly not the left wing, but biden, falters we know bloomberg is not in the early contest is that what you think . That bloomberg would be kind of an acceptable backup to biden . I think bloomberg has a brokered convention. I think it has to be a convention where biden didnt get enough of the votes, and warren didnt and bernie didnt and everybody didnt get enough. I think that is the only way bloomberg could come out on top. And that is if all the sudden everybody decides to come around. Gerry what about Hillary Clinton youve been close to her and you know her very well. We talked about a brokered convention, what you think . Theres always possibilities, but i think that would be hard. I think you have to be in the race and i think that is why bloomberg and joining the race. So in the very least there is a brokered convention, he could argue that a number of people voted for him. Its hard to end up saying i want to be the nominee. Gerry you are a democrat lets save your candidate joe biden did not when if it were Bernie Sanders or Elizabeth Warren, could you back them the general election . I think i would. At the end of the day but i believe in, i do believe there has to be changed. I do believe we need to try to help others. And there is a cost of that. I do know what the cost is, that cost is i will have higher taxes. And i am willing to do that because i think it helps others. Gerry we have to take one more quick break and then well be back. Well talk more about the president ial election, sports and well see how the mbas going. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Whor here on a wifi hotspot,te Xfinity Mobile has more coverage to keep you connected to what matters most. Moooo. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. Save up to 400 a year when you switch. Plus, unwrap 250 off our best phones. Click, call or visit a store today. Gerry my guest is mark lanser is not only a good investor but coowner of the milwaukee bucks. Lets just go quickly back to the president ial election first. As we sit at the open you got a good Strong Economy unemployment is at the lowest rate in 50 years the market has been strong inflation is low thats usually a recipe for reelection for an incumbent president. How on earth, thus swimming the economy does not tank this year, how to the democrats beat President Trump . Its actually very easy its not complicated. If you sort of think about everybody on the left is going to vote democratic. Everybody on the right is gonna report vote republican. So every prudential election is decided by three or 4 . So its everybody whos in the middle. Are the people in the middle tired of all the noise . If they are, then they are voting for change. If they are not, if theyre happy with the noise and they are happy with whats going on their lives, then they will vote to keep President Trump. Thats whats not really that complicated. Gerry but its complicated in the sense of the democratic message surely has to be we can maintain we are not going to end this expansion we are going to expand growth. Can they do that with the policies are proposing . I think they can do if you want to keep increasing deficit which i think they will end up doing. Gerry will talk about that a little bit but would talk about the box. They had the best record this year. Whats the secret for that success . I know you have an extraordinary guy, the greek free you call him, what is the secret . I think part of the secrets, and we have the best record so far, is before me game i sorta give a pep talk and that seems to be working. [laughter] always have to do guises score. I think what it is is everybody the team knows their roles. There are exceptional players. We have a team that knows exactly what theyre supposed to do. Everybody knows their roles. The coach is phenomenal. There are moments in time when everything comes together. I think we have that this year. Last year we were in the eastern conference finals. This sure what we really want to do is get to the nba finals. Gerry canyon when this whole season . I think were good to do it. Gerry we heard it here first. Thank you very much for joining us. Just ahead why president tromp with that iran is a clear warning to tehran. Stay with us. Most people think of verizon as a reliable phone company. But to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Patients that i see about dry mouth. They feel that they have to drink a lot of water. 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Gerry President Trumps critics are critical to describe the strike as a reckless escalation of the tension between the two countries. And joe biden president