Is a classic stealth rally. It happened very slowly. We saw material Stocks Energy stocks moving up. 41, advancing to the declining stocks throughout the day its gotten better. Slowly to the close. Its just not the kind of year that has felt like a record high year yet. If things change and we should mention the dow itself is only 100 points off. It helps that cisco is having a great day. Semiconductors have had a great month as well. Meanwhile, tesla is running out of juice. They hit hard the founder says his Company Still will be worth as much as apple, remember apples worth 700 billion right now. He says thats what tesla will be worth in ten years time. Were going to look at tesla and apple and figure out which youd be better off owning for the next decade. The government seizing the personal Bank Accounts of Small Business owners without justification or accountability. This didnt happen in venezuela or cuba or russia but right here in the United States. The irs is now facing increased outrage and scrutiny in washington and across america. We will speak with a Business Owner who nearly lost it all when the irs took it all without any good reason. Youll want to stick around and hear his story. Joining us now, healther jones, jim lull and of course our own rick santelli. Rob morgan let me start with you, we have a stealth rally, materials, Energy Stocks now, industrials joining the party. What do you think is moving the markets right now . Well bob, i just think the fact that weve really consolidated in stocks over the last six weeks, and people are realizing, this is still a pretty good time to buy stocks. They arent expensive. The economy is improving, even though we had all that volatility and retail verss were shaken out we have that fear back in the market and we have the wall of words. I think this even though were near record highers, the earnings are there, and i think people should continue to buy here. Heather. Yeah. I think as robin eluded to its only been a quick six weeks this year, so far, very sharp swings and Energy Markets and Interest Rates. And the dollar also and we also have increased in height and volatility although markets are about flat on the year from the great elections and fighting and intensifying in ukraine. I think when you look at Fourth Quarter earnings right now, they look okay but the jury is still out as far as the retail sales data that we got this morning as well as the help for the u. S. Economy. You like europe one of the factors helping the market has been a little bit more calm there. Certainly europe has outperformed so far this year. What is it that you like about europe given the turmoil around greece and the ukraine is still there . Exactly the turmoil i like more than the relative calm. I think well see the current attempt with the ceasefire between russia and ukraine go away past tense and increase certainly up to 228 where their bailout expires, theyll have to negotiate art for some sort of trim on their obligations. Ultimately theyll return to their senses or go their own way which will will the likely route for countries like germany. So i think its the volatility there, the uncertainty. Especially in the hands of good active manager like ted white, Fidelity International growth. Really has focussed on europe as a good place to turnover the stones, look for the rubies and the rubble. We did this starting last year. So far this year, among our diversified fund it is the number one performing fund this year. Is that rick what you think this is all coming down to . Germany thinking as jim said there its for the best to let greece go . Nothing would surprise me the point of his comments interesting, if we look at markets, most affected by ceasefire. I dont think its all fixed with putin. It was an extension of greece and the issues. Im not sure its going to be fixed in a way that we all are aware of today, so the markets are moving the things that are definitely not fundamental in nature, i like the reason teslas stock moved. The momentum comes from a different place. Also, i know as we saw down nine tenths down 8 10 this month. Worst back to back performance since 2008 the crisis. Question explain some of it away, the gs were selling is at a lower price, i get that but it was a weak number. I think the fundamentals are catching up to Interest Rates and maybe this very small change in direction we had for three weeks up might have run its course. Well monitor of course which side of 2 the ten years close out for the week tomorrow. And we have monitor as well with crude. Everybody can see, up 4 on your screens. I want to talk more about oil. Stay right where you are everybody, with the new report out highlighting the winners and losers from oil prices joining us now is one of the authors, welcome. Thank you for having me here. Thanks for being here. Lets remind people what were talking about. So much of the debate has been due by america or due by europe. Youre looking at markets and seeing winners and losers from low oil prices what do you see . A few observations we highlight in the Investment Institute report Lower Oil Prices in general are good for the world, good for the World Economy in the sense that oilimporting countries have lower Savings Rates than oil exporter. Because of that, Economic Activities so they spend more. Lower oil prices. And because of that the world is better and emerging markets in general are looking better over the median. Thats why we call it a widespread. They are beneficiary, in india for example or japan, theyre really going to see an economic upturn. Absolutely. So when you have the specific winners, theres a few of them in emerging markets, energy and food have a higher percentage of the cpi indexes. So inflation, which had been somewhat of a problem in certain countries is calming down and thats giving room for monetary policing authorities to either lower rates like weve seen already in the case of india, in the case of turkey for example, or to increase rates to a much lesser extent that would have been otherwise been the case. Look at the case of mexico for example, look at the case of brazil, so when the, certainly inflation points like were seeing right now create this over the past couple months, but when it dust settles, the world is going to look much better. But you have some countries, a few countries that are really suffering, really distraught. And you should stay away from in a quick nutshell which ones . You have to think about whether markets are doing a good job or not, and the shaping in those countries. Theres a high correlation among those countries that happen to be Important Oil exporters and the institution of weaknesses. What we see in the report in the Investment Institute report is that for those countries that stand to suffer the most you can look at groups the south areas of the world, another group of countries in the middle, malaysia mexicos, and then the weakest country, venezuela and russia as well . Russia brazil and mexico are a bit of a different category just because the timing has been very unfortunate to that. We have to go in a minute but what should we do with Energy Stocks . So Energy Stocks have been struggling in a very important, in a very important way. Same thing with credit. Oil, intensive. Weve seen already significant amount of auction for 2015. Notwithstanding that its likely that Oil Production will increase this year and next year we will see more important stuff. And theres a line between the old account and promotion that is being processed through the system. Let me just quickly put this our panel before we let people go. Rob, jim, heather, are you investing in emerging markets, if so, which ones . Im not investing in emerging markets. As bob noted, asia is a net importer, wind at its back there, so does india. We definitely would be shy, anything to do with russia middle east, north africa and pretty much the whole of south america giving that they are net exporters. Its not just the price, its the destablization and the weakening economies suffer most. Rob morgan do you want to overweight stocks over bonds and small caps. Whats the rational behind that . I think the dollar will keep going up here bob, and thats typically bad for big cap multinational. Thats why id say, overweight small caps and back to the oil comment, you know if you look at the u. S. Stock market over the last 40 years, the stock market has performed twice as well in a dollar bull market which implies Falling Oil Prices than in the bear market. You have to look at history there, oil prices are good. Quick last word quick. Sure kelly, whats important to the u. S. Here and investors is that the two positives, both a strong dollar and Lower Oil Prices have actually in the short run be two tahoe negative given the multinational Earnings Results and terms of oil with capitol expenditures and potentially job losses. That has to turn around to work out. Thank you everybody for being here. Appreciate it. Deeper look at some of the emerging markets as we keep an eye on oil. Rebound again today of 4 . Might be helping out the market here. Major index is not all that far off. Alltime highs and thats certainly helping the s p with almost 50 . Tesla elan as the market cap could match apples 700 billion market cap within ten years. Is it tesla or apple . Which should you own over the next decade. The pros are going to battle it out. And onslaught of earnings after the bell today. Aig, cbs, and kraft and break them down with a team of experts. And the Internal Revenue service back in the cross hairs, for seizing assets of Small Businesses without charging them with a crime. We speak with one person whose life will never be the same because of what happened. Stay tuned for that. You just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions and a thousand other things. So you call pwc. The right people to get the extraordinary done. You total your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had a Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. And for drivers with accident forgivness,rates wont go up due to your first accident. Learn more by calling switch to Liberty Mutual and you can save up to 423. For a free quote today,call Liberty Mutual insurance at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back lets take a quick market check. S p 500 is the little bit of drama here. 2090 would be a closing high 2090 and change. Three points away from that. Dow lagging a little bit, still only up 1. 06 . Declining stock, midcap index, new high im sticking with my idea here of a stealth rally. Kelly. Meanwhile, tesla shares are big after the automaker posting last quarter. Phil was on the call last night with elan musk was more optimistic than the numbers warranted. He was unusually forwardlooking, phil. Very forwardlooking, bob. And very optimistic despite the numbers we saw in the Fourth Quarter from tesla. Its what he said about ten years down the road thats getting attention and comparing with where apple is right now. If you look at where tesla is right now and where they want to be in 2025 their a long ways from building a few million vehicles. Thats property jex for 2025 according to elan. The market cap he is targeting. 00 million, thats right, the same we see for apple right now. Here he is on the Conference Call explaining how tesla gets there. If you take this years revenue around 6 billion, or thereabouts, and if were able to maintain the growth rate for ten years, and have the probability number and have a 20 pe our cap would be the same as apples is today. A lot of people weighing in on those comments today. Stifel out with it late this afternoon reiterating shares of 400 saying simply put, we do not believe there is a demand problem, thats jamie albertson, reiterating a price target of 400 a share. Look at where tesla is right now. It would basically have to double to justify his price target. And by the way, guys what i find interesting about his comment is when he says if youre assuming a 20 pe ratio, tell that to somebody like sergio who is lamenting, he would love a 20 pe ratio. Ten times, phil a lot of these automakers these days. Where are we on the evaluations . I havent checked lately but yeah, youre looking fwar lower than that. I thought it was closer to 20 13 somewhere like that. And that might be optimistic. All right, phil thank you so much, really appreciate it. Should you share musks outlook, which will be the better bet, apple or tesla . With us now is gene and destination Wealth Management and michael, you heard that comment from elon musk there, theres a lot of ifs there, 50 growth rate for ten years, achieved 10 profitability and still noted, 20 pe is this at all in the realm of possibility, michael . Its a stretch, i think. And i was really frankly shocked when listening to the Conference Call that he actually went into these type of metrics. But whether or not apple or tesla is the better buy for ten years, i think really comes down to is apple in a space thats going to multiple in terms of its addressable, sellable opportunity as fasts a teslas opportunity is going to . And i dont think thats going to be the case in ten years. In two or three years, apple wins, dont get me wrong, love apple. But i think in the longterm, if tesla stays on the same track, whether theyre making their own cars or licensing to other automakers, i think tesla has the nug over a ten year period. Wow, gene, make the case for apple here then over tesla. I think the markets are instilling huge room for growth. And they have about 20 market share and smart phones right now. That could be 50 market share. The tv i still believe in that if you put all together it equals about 45 upside to the current numbers for the street and theres huge room and theres the wild card. Every investor wants some big wild card that they can shoot for. Remember this term augmented reality, and this is light field is the technical term but think of google glass on steroids you would want to wear and thats the stuff, when we do our research around apple that theyre working on. If you think whats the product thats going to follow the iphone. Its this augmented reality, you blare all this stuff together they have some good stuff for the next decade. And yet michael, is tesla is tech company or car company . People think in assistance of car company, but they have the battery gigafactory opening in nevada, storage could be used for solar power, potential huge other business that elon musk seems to be developing with these gigabyte factory, is this really a tech company . I think there is a case to be made. I think that the car is really essentially the deliverable on the technology that theyre developing. They also announced a system that will go in homes as well. I think where tesla really has a huge opportunity in is in terms of licensing, and in terms of what gene just said about apple, i agree with all of that its just a matter of where they are on the life cycle of a company. No matter how much everyone loves elon musk theyre a Startup Company is what they are. This is essentially apple, excuse me ipads if you will when they were recreating their new brand after steve jobs came back. I still think apple has a huge huge opportunity, we like the stock, but i just think the Addressable Market cars around the world, Energy Efficient cars around the world is just going to be a bigger market than apples market over the ten year period. Gene, let me ask you because people are making comparisons back to microsofts peak evaluation, 690 million before the dotcom collapse. Is it the ability to convince itself, and could they get into the car space in the future . The latter first, i think they could. I think sometimes the argument is going to be for not because apple probably ends up buying tesla eventually as far as what can really i think thats entirely possible. Theres still a lot of room. Theres still a lot of room to go in the core markets, and i would just continue to point out that there is there is stuff that apples working on again thats augmented reality, this is a huge deal. This is going to change our lives and right now, investors arent even thinking about that. Gentlemen, were leaving it there. Gene from piper, and cnc contributor, michael. Theyre converging, one used to be a maker of ipods, the other didnt exist. Very kbikly all this technology is coming together. Yep. We have about 40 minutes to go until the close here. Dow keeps edging higher about 110 points. That puts it closer to the record high. You can see the s p even closer. Its only about two points away in fact about 2. 5 call it right now on a nice day up almost 1 . With 40 minutes to go well see if it comes within closer striking distance. Rand paul fundraising, very successful on his push to audit the fed. Yep,