Months here but nevertheless that news was a good excuse to start unloading tesla shares. Do not, do not feel bad for elon musk though. He is still comfortably worth in excess of 103 billion even with the falloff today. We are following a tale of two president ial candidates in wilmington. Not the same wilmington. President is heading to wilmington, North Carolina. The former Vice President , wilmington, delaware. Both expected to continue concentration in battleground states. At the same time reminding americans that each has the secret to make them feel better there is sentiment surveys out today that really confirm were bummed out as a country. Were getting to the bottom of that. Why are we bummed. Why are we dim on our own prospects here . Cuts across republicans, democrats, im buying this in pockets, even guys like new age are really morose. Im not morose. Depending if lunch is served. Go to Jackie Deangelis what she is following with the dow up 219 points. Where are we with all of that, jackie . Reporter good afternoon, neal h neil. I cant tell you why some people are morose. There is optimism in the marketplace. You can see the dow is trading higher by 200 points today. A very, very strong august performance. The dow is now positive for 2020. We have the s p 500 notching a new intraday record today as well. So that is something to watch. The nasdaq seems like taking a little bit of a breather. What investors are doing, they are rotating back into equities. They are coming out of safer plays weve been seeing them hoard during the coronavirus pandemic, including bonds, including gold. That is giving you a sense sentiment in the marketplace is on the rise. Having said that the markets are watching very close vaccine developments. Several different vaccines and treatments in the works weve been talking about but it is abbott labs were watching very closely today because it is getting another huge boost from the u. S. Government for its 5dollar rapid covid test. It is ready to ship them to states to start distributing. The rapid tests makes a huge difference there is no lag with the patient. I got tested yesterday. I get the virus in five days. By the time i got the results back does it matter anymore . This is almost instantaneous. Having said that, the adp number was out this morning t was a miss. 420,000 jobs were added. Expectation for a boost was 950,000. The number was still better than in july, 167,000. That is setting up tension as we head into friday, we have the big august unemployment report. All eyes will be on that to get a sense how the recovery is going, neil. Neil all right. Jackie, thank you very, very much. Expectations as jackie said for that employment report all over the map. More of a seminal developments here, if we get the Unemployment Rate under double digits, 10. 2 , jackie hinted at, could be under 9. 8 . The consensus is always wrong. These consensus numbers have been wrong far more often than not. Well be monitoring all those developments. We thought we would check in with a bull and a bear where we stand right now. On the bull side, scott martin, kingsview asset management. We have gary b. Smith. Slightly more bearish, kadena Group President , much, much more. Gary end with you, beginning with you. Youre cautious, right with concern . Neil, im always the villain in these. I want to know why how that is. Neil youre a i, im an evil villain. I suppose. Look, you just look at some of these nut at this valuations. Whats the pe on tesla . It is 1100 . Apple, my gosh, you have to talk about it every day i suppose, more than doubled since the march lows. I mean these kind of gains neil, are just unsustainable. The rhetoric im hearing it sounds like 2000 all over again people saying yeah, i understand the market is up, i understand the valuations are crazy but its different this time. Just, neil, yeah, i mean, at best i am cautious right now. Neil scott, look at tesla, amazon, theyre making money but back in 2000 when we had the sort of implosion going on before everything just hit the fan there were a lot of companies that were riding forward with no earnings, no prospect of ever making money. So they got punished. So you could look at this as a different market in that sense but what do you think . Yeah. I mean, neil, some of those companies, old favorites of mine, pets. Com to bring up bad memories webvan, they didnt have a real business. These are companies, gary points out are expensive but they do have a real business, they do have real sales. The funny part of todays market, neil, yes, there are areas that are very expensive, there are areas to us at kingsview that are very cheap. Things in the energy space for example. Things in financials that have been talking a lot about on fox business in the summer. Look at jpmorgan, citigroup, two names we own. These are Companies Trading in the midteens to use a term that gary used as far as pe ratios, price to earnings. So this market is expensive in areas. It can tell a tale however it wants to be told with respect, yes, there is stuff way overvalued, but in my opinion, energy, financials, especially maybe industrials too, as the Global Economy refires, those are companies were starting to look at picking up here at cheap valuations relatively. Neil you know, gary b. , the other concern that might sort of dissuade the bearish argument is that so many remain bearish or at least concerned. That youre not alone in these concerns. And that is very different than the late 1990s bull market, going into 2000. Does that give you any comfort . Absolutely. The whole kind of wall of worry i suppose, when you know, when no ones concerned everyone is in the market and it can only go down but, yeah, listen, i think that is what is propping up the market right now. Why youre having these day after day of gains but on the flipside of scotts argument he points out value low, i guess maybe cheap companies or cheap industries but there is a reason theyre cheap. Banks ride on top of the economy if you will and there is not an economy in the world right now thats growing. Energy is cheap because for the same reason. Economies are not growing. They dont need energy. Besides, we have a glut of oil and natural gas and stuff like that. So i would tend to avoid the areas that scotts looking at and you know, i think the other areas that are going gangbusters are too expensive. Neil you know, it got no real notice, scott, but australia, decades into avoiding a recession, generations came and went without seeing one. Now it is in one. Does that worry you . Well, it is one of those canaries in the coal mine that tells you to go back to something gary side, this time it may be different because youre right, this is something that different happen to australia for decades. Yes that was covid related. Tell you garys Counter Point to my point i guess you know, those are times you need to buy companies in those industries when things like terrible. It is always darkest before dawn, neil. As you talk about very astutely, the market updated for 2020 has so many haters on it, that is why it will probably keep going up into the election as it becomes more likely trump pulse this thing out, the market gets more excited, goes to higher prices and higher levels. Neil or the light at the end of the tunnel could easily be approaching train. You have no way of knowing, right . Guys, thank both very much. Very reasoned, reasoned discussion on all of this. A couple of developments that could move the markets, a political one in massachusetts no less, but a kennedy lost a massachusetts race, the first time weve seen that in 26 attempts that began congressman joe kennedy iii, failing to do what his, well grandfather had done back in the 1950s, start a kennedy juggernaut that never lost a massachusetts race. That continued not only through joe and Robert Kennedy but later on, their family members, extended nieces and nephews, congressmans father himself but he lost in a primary battle to senator ed markky. What is interesting about the kennedy defeat, he was supported by nancy pelosi, steny hoyer, closest thing you might call to the Democratic Party establishment. Neil while markey was supported by alexandria ocasiocortez, Elizabeth Warren. So was this a sign that the progressives or extremists of the party have taken over the party . I want to raise that right now with douglas holes he holtzeak, former Congressional Budget Office director. It was an interesting footnote a capper on the day that had establishment figures sort of playing to the progressives tune. What do you make of all that . Well, we have certainly seen the progressives push the Democratic Party left. The entire policy of portfolio is well to left where it has been in the past several years. He had markey has been to the left of reality for his entire career. It finally caught up with him. He is quite comfortable with where the progressives are. The only person i can see in all of this who managed to swim against the tide was ways and means chairman rich neil, held off alex morse, a progressive contender. Outside this pressure is real. Its a different Democratic Party right now. Neil you know i was thinking of joe kennedy and i was thinking more about you know, his grandfather and remembering or, more to the point, his greatuncle, what he espoused and in cutting taxes versus some of the language were hearing out of prominent democrats right now. Give this a quick listen t really echoes home the point im talking about. Such a bill will be presented to congress for action next year. It will include an across the board, top to bottom cut in both corporate and personal income taxes. Guess what, if you elect me, your taxes will be raised, not cut. Corporate tax rate must also be cut to increase incentives and availability of investment capital. I would raise the Corporate Tax. I would raise, and raise billions of dollars, raise the Corporate Tax rates from 20 to 28 . For all these reasons, next years tax bill should reduce personal as well as Corporate Income taxes for those in the lower brackets, who are certain to spend their additional takehome pay and for those in the middle, upper brackets, can be encouraged to undertake additional efforts, to be able to invest more capital. That is where i double the Capital Gains rate to 40 . So every single solitary person, Capital Gains will be treated like real income, will pay 40 on capitalgains tax. To achieve these rate of gains, one step above all is essential, the enactment this year after substantial reduction and revision in federal income taxes. Guess what . First thing i do repeal this trump tax cut. [cheering] not a joke. Neil all right. Now i know two different time periods. I know the rates during jfks time were a lot higher than they are now. That the corporate rate that another of 50 , you have someone else looking at changing that to, you know, 289 . Jfk proposal, 40 . Slowly slide through Republican Democratic administrations from there. But the lower levels or not, it is a Different Party espousing a whole different set of vibes here. What do you think . Really is just remarkable demonstration of the shift, neil. You can hear in the 60s rhetoric, most liberal thing you could do, do fiscal finetuning of private sector to peoples routes of prosperity. You hear now all prosperity runs through the government. The idea its a good idea to raise taxes when were in the middle of the biggestdown draft we had since the Great Depression is just mindboggling. It represents the departure of the Democratic Party from any interest or reliance on the private sector, any belief in the power of private markets. Certainly one much the most troubling developments that i see on the landscape. Neil you know, when you talk to the biden folks, even prominent democrats elsewhere today, were nowhere near the levels that even jfk was able to achieve sadly after his death with those lower rates. So these levels are even, with the increases that biden plans much, much lower than back then. So do not say that jfk moderating approach on taxes is dead. What do you say . I say that his approach is dead. What you saw was in that clip was a belief that the quality of tax policy mattered as much as the level of taxes. There were going to be across the board cuts, evenhanded cuts that treated things neutrally. You dont hear anything like that in the discussion among tax policy among democrats now. It is who can we tax, who can we use the tax system to discriminate and punish . No respect for the economic incentives that produces. So theres not going to be a reliance on capital accumulation, productivity growth to get higher wealth, flatout redistribution. That is the agenda at the moment. Neil all right. Thank you very, very much, my friend. So much we look at in perspective when we look at the tax rates but as douglas holtzeakin pointing out, you think you are losing revenue in wash tone, cutting taxes of the richest americans, a reminder, recently as 1980 when Ronald Reagan was about to come into office, and which had a top rate at the time of 70 , the richest in the country were paying about 20 of the taxes. He eventually cut it down to 28 . It now hovers at 37, 38 . Now the rich pay half the taxes in this country. So a cut does not mean for uncle sam. A cut. Stay with us limu emu doug you know limu, after all these years its the ones that got away that haunt me the most. [ squawks ] cause youre not like everybody else. Thats why Liberty Mutual customizes your car insurance, so you only pay for what you need. What . Oh, i said. Uh, this is my floor. Nooo only pay for what you need. Liberty. Liberty. Liberty. Liberty. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Neil you know were not only voting for president obviously in november. You know the entire house, a third of the u. S. Senate, a number of governorships are up for grabs, what really intrigues me, number of state bond proposals, another initiatives are capturing peoples attention. In the case of california, it is not only california, by the way. There are measures right now to raise various taxes through a variety of means including property taxes. The proposition 15, the proposal to hike property taxes would be reverse what was set in stone back in 1978. That was supposed to limit such hikes that was then. Could be a very, very different california now, depending how things go in november. With us right now is kevin falconer, the mayor of san diego. What he makes of this and other initiatives that are out there. Mayor, good to have you back. How would this measure affect san diego . Well it would affect san diego unfortunately very negatively but every other city across the state of california. Think about this, neil. In the midst of one of the worst recessions this is a slowdown, somebody thinks it is good idea to raise taxing on Small Business owners across the state, struggling to stay open to get by, what this will do, it will raise prices, have a negative effect on the economy. This is the worst idea at the worst possible time. Neil how do you raise the money . Now it is different in your case a city, kind of a republican mayor, different priorities, lets say than democrats but its an environment where Everyone Needs money and im wondering how they are going to get it . Well it does, i view this, neil, this was not a partisan issue. This is a common sense issue. This is how do we support struggling businesses, so that we keep the infrastructure going for these businesses that once we get on the other side of the pandemic, employees have jobs to go back to. If were going to say as a state in this, as i said this is the worst possible time, that were going to raise taxes on all of these Small Businesses and Properties Across the state, thats, that is going to affect everyone. That is going to raise prices, again to send money to the black hole of sacramento is the wrong thing to do. Im being very vocal about it. This is not, this will impact us very negatively in san diego, but every city across california who suffered the consequences at a time we should, neil, be doing everything that we can to help Small Businesses that has been really my focus here on Small Business relief, all of the executive orders ive been able to do to help businesses stay open outdoors, et cetera, to come right over the top, to say were going to raise your taxes on all of these Small Businesses that can at least afford it, it is the absolute wrong thing to do. Neil where does school stand in san diego right now, mayor as far as inperson, how many are inperson when they open up versus virtual . Starting this week, neil, we have the ability, School District in san diego, to do inperson learning. Every district in the county will do it a little bit differently. That is a reflection how we have seen numbers reflect the right way in san diego county. Were not out of the woods in any sense. We spent a lot of time, effort to work with everybody to have those numbers trend in the right direction. So to see the ability of some of the schools to start to reopen in person, i think it is incredibly positive. Getting our kids back to inperson learning environment. I think there is no substitute for that. Neil the economic environment right now, there are a number of surveys that people are less optimistic about the future than they were. You know, i can get into the weeds of, you know, talk about how they feel depending on income groups, whether your fine state or others but the mood of the elec