A number of Hedge Fund Titans betting on it. Should you . Power lunch starts right now. Welcome to power lunch. Stocks are holding steady. The nasdaq and s p 500 setting new record highs. The dow swinging between gains and losses right now but in the green at this moment. Tech and Consumer Staples holding up. Check out some of the movers now. We have chinese telco actually its sina, a web company, trading at levels not seen in more than five years. Staples and Dicks Sporting Goods down big after their results. Home depot a real bright spot in retail on the back of better than expected earnings. Twitter spiking higher on news out just minutes ago that cofounder biz stone is returning to the company in an unspecified role. Brian . Mel, thank you very much. We begin all of this at the white house. President trump and turkish president erdogan about to deliver a joint statement. Eamon javers is there as well. Eamon . Reporter yeah, brian, theres a lot to watch for here in this joint statement. So many points of tension between the United States and turkey. We saw the motorcade roll in, the president meeting with this president of turkey after a week in which his meeting with the russian leaders caused so much controversy in washington. Theyre still dealing with the fallout. Now another meeting with another foreign leader. How will this one go particularly on issues of funding by the United States for the kurds, letting the kurds buy u. S. Weapons systems and have access to ammunition and other fighting equipment. Thats something that the country of turkey doesnt like. They view the kurds as a possible threat on their border or inside the borders of turkey. Theres also the question here of the role of russia in turkey and whether the turks are going to tilt more towards russia in terms of global alliances or the United States. Of course turkey a member of nato. So a lot to talk about here particularly in the fight against isis as we watch and wait for the president. There you see the greeting as we watch and wait for the two president s to go to the roosevelt room to give us this joint statement, brian. All right, eamon, well see you in just a minute. Now back to the markets and your money. With all the focus on President Trump and the d. C. Drama, do not lose sight of the fact what may be the most important thing for stocks and your money right now and that is the lack of market action, aka, volatility. You know volatility has been very low. But did you know that we are on pace for perhaps the tightest market since 1960. Lets bring in the chief market technician who does great work. He highlighted this incredible trend for us. Jonathan, when i read your note, i literally did a double take. We know the market is slow and weak and theres no volatility. Put it into some kind of Historical Context for us. Thanks, brian. Most people look at volatility, use some measure such as the vix. We can look at the drawdown from a 52week high and thats really what gravitates investors attention when theyre managing money. So year to date the draw down from the 52week high is 2. 8 . Now were only five months into the year. Its not really comparing apples to apples but should that perfe persist through year end that would be the narrowest drawdown since at least 1960. If you go back the median drawdown at the some point from a 52week high is around 14 and the average is 16 . So that puts it in perspective how not only how narrow of a range weve been in but how little pullback. Do you mean a decline in the s p from the peak . What are you talking about . Youre looking at from the most recent 52week high to the most recent to the current low. The most recent 52week high yesterday for the s p . Right. So youre looking at the drawdown from that. That would reset the new 52week high. We were talking about this at the end of last week so the high was in march. So, jonathan, what does it mean, though . Im guessing im going to take a wild stab and say our viewers like to make money rather than lose money. Is lack of a pullback of any size unhealthy . Is it wrong to feel nervous, in other words . The other thing weve noticed is the interday trading range or the average range on a 20day basis is less than half of 1 . Thats the lowest since 1993. And a lot of people view that and say volatility has to expand. Therefore, it must be bearish. What you tend to find prior to significant market tops is that those interday trading ranges will expand first as the market is still going up. So very narrow trading ranges and little drawdown is not characteristic of a major top. Its characteristic of strong, healthy uptrends. As you got into the late 90s and the end of the bull market, the range started to expand. The same thing in 2004, 2005, and then they didnt start to expand until 2007. So, jonathan, youre saying that right now because most people when they think about low volatility theyll say when was the last time the vix was this low and they referenced two points in time you mentioned, 93 to 94 followed by a 10 drawdown and then 2007 just before the crisis, and we all know how that turned out. Youre saying the difference here we would see much greater trading ranges just ahead of an actual real drawdown . Yeah, i think so. Clearly with the max drawdown weve seen this year less than 3 i think it would be perfectly reasonable to expect even a 5 and 6 pullback that would retest the 200day moving day average. We havent seen that all year. If youre talking about Something Real significant, something that would warrant changing your portfolio or making any major market moves, i think you would start to anticipate bigger trading ranges, and theres a narrow trading range, as much as people want to look at that and say, well, the market must be near the top, history tells us thats just not usually the case. Jonathan krinsky, really interesting stuff. Thank you. Thank you. All right. So were told were within a twominute window of when the president as well as turks erdogan will speak. Straight to the white house to listen in. A lot of press. Im shocked. Its a great pleasure to welcome president erdogan for his first visit to the white house in years. The american and turkish peoples have been friends and allies for many, many decades. Turkey was a pillar in the cold war against communism. It was a bastion against soviet expansion, and turkish courage in war is legendary. That is so true. Turkish soldiers fought bravely along with american soldiers in the korean war. We havent forgotten what they did. When we look at their bravery in the fight of korea and in korea it was just something that our soldiers and our great generals still remember. Supreme commander general Douglas Macarthur singled out and praised the exemplary valor of the turkish soldier. Said some of the great soldiers of the world. Today we face a new enemy in the fight against terrorism and, again, we seek to face this threat together. The turkish people have faced horrible terrorist attacks in recent years and even recently. We offer our compassion to the victims, and we offer our support to the turkish nation. We support turkey in the first fight against terror and terror groups like isis and the pkk and ensure they have no safe quarter to terror groups. We also appreciate turkeys leadership in seeking an end to the horrific killing in syria, the Syrian Civil War shocks the conscience of the whole world. And all you have to do is look on the front page of the papers today and youll see exactly with a were talking about. We support any effort that could be used to reduce the violence in syria and create the conditions for a peaceful resolution. President erdogan and i are discussing the need to reinvigorate our trade and commercial ties. These are areas we can build our relationship that will benefit both of our countries. Military equipment was ordered by turkey and the president , and weve made sure that it gets there quickly. I look forward to working together with president erdogan on achieving peace and security in the middle east, on confronting the shared threats, and on working toward a future of dignity and safety for all of our people. Mr. President , thank you for visiting our country and joining us today at the white house. It is a great honor to have you with us. Thank you. Thank you. [ speak iing in foreign languag] translator mr. President , my dear friend, distinguished members of the press, at the outset i would like to wholeheartedly salute you all. Translator and i would like to take in august opportunity to thank President Trump and his team for the generous hospitality they have shown us upon arrival not only to my personal self but to the entire members of my delegation, on behalf of the entire turkish nation, thank you, mr. Presid t president. And once again in your presence i would like to congratulate President Trump for the legendary triumph he has garnered in the aftermath of the elections. Quite recently weve had bilateral discussions with President Trump. Translator and weve had the opportunity to focus on the outstanding relations between turkey and the United States that date back a long time, which are very well rooted and are quite happily reached a level of strategic partnership. The relations have been on Democratic Values and common interests. Keeping our outstanding relations stronger than ever will be important not only for our common interests but also stability of the globe and peace around the world. The close cooperation that both countries shall demonstrate in the region currently in turmoil will be very important for the rest of the world. And primarily we are alongside by each other as turkey and the United States under the roof of the United Nations, nato, and the g20. We have been enjoying a close cooperation in all of these platforms, in all of these around the world, and in the future to come we are going to focus on making sure well expend our close cooperation. We are determined to expend our relations and i believe my current official visit to the United States will mark a historical turn of tide. Whether it be throughout our bilateral discussions, whether it be the discussions that we shall have between the delegations, i think we are going to enjoy further gains in terms of the future of our relations. We seem to agree on expending further expending our relations in the field of economy, trade, reciprocal investments, energy, and defense industry. It is going to be very important for us to forge a close solidarity and cooperation in the field of fighting terrorism primarily and all the other terrorist organizations in the region. And we are committed to fighting all forms of terrorism without indiscrimination that impose a clear and a present threat upon our future. Theres no place for the terrorist organizations in the future of our region. Taki taking them into concentration the region will never be accepted and it is going to be against a global agreement that we have reached. And we should never allow those groups to manipulate the religious struck it tour and the ethic structure making terrorism as a pretext or an excuse. Those who are willing to turn the chaos in syria, iraq, yemen and libya are bound to lose eventually. They will never be able to turn that chaos in that part of the world into an opportunity, and the terrorist organizations with blood on their hands are bound to fail. And as i have previously done so i have been very frankly communicating our expectations with regard to the federalized terrorist organization which we have notified our friends of their involvement in the failed coup of july 15th in turkey. And we have taken into account the joint steps for syria and iraq. Of course President Trumps recent election victory has led to the awakening of a new set of aspirations and expectations and hopes in our region. And we know that by the help of the new u. S. Administration these hopes will not be lost in vain. And we find that it was the most necessary answer to be given to the Syrian Regime especially in the aftermath of the recent Chemical Attacks that took pl e place. And we know that in terms of keeping up with the principle and committed fight against the terrorist organizations all around the world we will not rethe mistakes of the past and we will continue down this path together. In the restoration and the establishment of stability and security in question the alliance and the partnership and cooperation between the United States and turkey is of vital importance. I hope and pray both of us will be committed to expending further our cooperation in the future along with consulting each other more frequently. We are laying the foundation of a new era between the two countries in terms of our relations. I hope and pray that this new administration will bring forth auspicious results from the new nations. And i would like to thank President Trump for his very kind and cordial invitation and i look forward to hosting him in turkey along with his entire family. Thank you all very much. I appreciate it. Were going to go to meetings now. Mr. President , did you share classified intelligence with the russians . We had a very, very successful meeting with the foreign minister of russia. Our fight is against isis. As general mcmaster said, i thought he said, and i know he feels we had a great meeting with the foreign minister so were going to have a lot of Great Success over the next coming years. We want to get as many to help fight terrorism as possible and thats one of the beautiful things thats happening with turkey. The relationship that we have together will be unbeatable. Thank you all very much. I appreciate it. Were going to go to meetings. The president taking and answering briefly one quick question about his meeting with russias foreign mince it ter lavrov and saying mr. Mcmaster characterized the meeting accurately as one focused on the fight against terrorism. That was a formal statement by turkish pred erdogan who was granted very substantial powers in that country in the wake of a coup roughly ten weeks ago that nearly toppled him. Eamon javers is at the white house covering it all. Reporter tyler, thats right. A bit of a surprise there that the president took that question. He said he had a great meeting with the foreign minister of russia and quoted h. R. Mcmaster, his National Security adviser, who spoke to reporters here at the white house and said that anything that the president revealed to the russians was wholly appropriate to reveal. Interesting biplay between the two leaders. On the one hand you had the president of the United States with a very short statement. Offering something in his comments you might think he would appreciate, a negative mention of the pkk. Thats something that might be appreciated by his turkish audience and the president of turkey with a much more lengthy statement, although there were pauses for translation, and he offered something, complimented his legendary triumph in the election in the fall, a topic the president likes to return to with visitors who come to talk here it at the white house. Each leader trying to offer something to the other in order to set off this series of meetings today with a bit of good feeling between the two men. Well see what happens throughout the rest of the day, tyler. Obviously, eamon, a lot of differences between mr. Erdogan and President Trump but one thing they do have in common is a very testy relationship with the press. Reporter interesting to see erdogan opened his comments with a gracious nod to the press in the room. Erdogan got to see the American Press in full action shouting questions at the president of the United States on a day in which the president of the United States might rather not take them. In fact, he did take a question. Eamon, thank you very much. Reporter you bet. Lets get back to the markets. Is the market due for a big pullback . He doesnt think theres a big short in the market. Here is what i was told on fast money yesterday. There arent any, in my view, systemic issues. Citi group is levered 101. Thats like the distance from mercury to pluto. You could have a problem in subprime auto. Its not going to be a systemic problem. Theres not enough leverage in the system. Benjamin siegel, portfolio manager, and brian levitz, Senior Investment strategist at oppenheim oppenheimer. Is mr. Eisman right in the sense because of the elimination in large part of massive amounts of leverage in the system we arent set up for any sort of a shock along the lines of what we saw in the financial crisis, thats just off the table from now on. Yeah, i think thats right. People are so prepared to believe that what happened most recently will happen in the future. Just because that happened in 2008, that was a once in nine decade experience. Theres not that leverage in the system. People worry about Market Corrections. Market corrections happen all the time. We had a 16 Market Correction from the end the middle of 2015 into 2016. So you might see some volatility pick up in markets, but to think were going to have a systemic collapse and a financial crisis like in 2008 is the height of hyperbole in my opinion. Benjamin, in terms of valuations, you are actual ly still saying that things look better overseas in terms of allocations. Yeah, hi. I actually agree with that. I dont think theres a real concern around leverage. Im not sure were looking at a financial crisis, a repeat of what we had last time. The key is valuations and Profit Growth and if you see a continuation of Profit Margins squeezed here in the u. S. I think theyre vulnerable. If you contrast that to the european Banking System and an economic recovery there, i think the operating leverage drives