ARE MOVING THIS MORNING WE'RE
JOINED BY ACT. AND SEE THE CEO
OF.
ARE WE SEEING A SHIFT IN WHAT
INVESTORS CONSIDER THE MAINSTAY
STOCKS ON WALL STREET.
>> WELL IT WAS CERTAINLY SEEING
A SHIFT IN THE SENSE THAT
STOCKS LIKE TESLA STOCKS BECOME
MORE MUCH MORE SO THAT
THE MAINSTAY. BUT I THINK WE'RE
STILL SEEING TECH DRIVEN BY THE
VERY LAST NAME SO THERE'S NOT
MUCH OF THE SHIFT THAT I THINK
THE BIGGER
QUESTION IS THESE VALUATIONS
BASED TECH STOCKS REALLY
JUSTIFIED IN THE IMMEDIATE SORT
OF NOSEBLEED LEVELS
RIGHT NOW THE BEEN ON ITS HEAD
TESLA CERTAINLY APPLE AS WELL
BUT THE WHOLE BUNCH OF THEM
HAVE SEEN THEIR STOCK PRICES GO
UP SO MUCH OF THE COURSE THE
PAST YEAR AND SO MUCH SINCE
BEFORE THE LOWS AT THE END OF
MARCH. THE WE HAVE TO STOP THE
QUESTION WHETHER THAT'S
SUSTAINABLE WITH THE STOCK
PRICES CAN MAINTAIN REMAIN AT
THOSE LEVELS.
>> LET'S TALK TESLA ILAN NOW
THE 3RD RICHEST PERSON IN THE
PARTICULARLY BECAUSE OF WHAT'S
BEEN HAPPENING WITH WITH TESLA
SHARES RECENTLY THEY JUST HAD
THIS 5 FOR ONE STOCK SPLIT.
>> WELL I I THINK THAT MUCH IS
CERTAIN, I MEAN IT DOES LOOK
VERY OVERVALUED DOW QUESTIONS
HAVEN'T COULD SUSTAIN THAT KIND
OF THING GO. I MEAN WE
SAW BOTH APPLE AND TESLA STOCK
PICK UP QUITE SUBSTANTIALLY
WITH THIS
STOCK SPLITS BUT BEAR IN MIND A
STOCK SPLIT DOES NOT CHANGE
ANYTHING AT ALL FOR THE
UNDERLYING FUNDAMENTALS OF
THE COMPANY THEY'RE NOT GOING
TO SELL MORE CARS AND MORE
IPHONES ALL THAT EXPENSE IS NOT
GOING TO GO UP DOWN US LAST
AUGUST AS A RESULT OF THE
STOCKS BUT SAID THE STOKE THE
CHANGES NOTHING FUNDAMENTALLY
SO IT WAS KIND
OF THAT SLIGHTLY AMUSING TO SO
THAT TAKEN IT'S BEING VERY
CLOSE TO USE IT REALLY ISN'T.
TESLA BAD MINDED MOST RECENT
QUARTER ACTUALLY SAW ITS
REVENUES DECLINE OF IT SO THAT
REVENUES WERE DOWN ABOUT 5%.
NOW THAT WAS MASSIVELY BEST
SAID THE BOARD A COMMON
INFECTION SECTOR, MANY MEN
AFFECT US A LITTLE BIT OF NEWS
4 BY 50% OR MORE SO TESTED
FANTASTICALLY WELL RELATIVE TO
OTHER COMMON INFECTIONS.
THE STILL THEIR REVENUES ARE
THE PROFIT MARGIN IS
A WAR WAFER-THIN IT DOESN'T
REALLY DO SEEM HOW THAT'S GOING
TO CHANGE OVER THE COURSE OF
THE YEAR THE NEXT FEW YEARS, I
MEAN THEY MIGHT BE ABLE TO PULL
A RABBIT OUT THE HAT AND MAKE
THAT A LOOK NOT MUCH BETTER
THAN IT IS CURRENTLY BUT
LOOKING AT THOSE FUNDAMENTALS
OF THE COMPANY. IT'S
VERY VERY HARD TO SEE HOW YOU
CAN JUSTIFY THAT KIND OF
VALUATION BUT I DON'T THINK
IT'S THE ECONOMIC FUNDAMENTALS
DRIVING THAT STILL PRICE
HIGHER. WELL INDEED FOR ANY OF
THE OTHER TECH STOCKS WILL GO
DOWN.
>> THE RETAIL SPACE AND SOME OF
THESE RETAIL OF THE ACTIONS
THAT WORKS ACTING OUT TO REALLY
PICK UP AS THE MORATORIUM
ON EVICTIONS SET TO EXPIRE IN
MANY STATES. HOW CLOSELY WALL
STREET BE WATCHING THIS.
>> WELL I THINK THE THE
EVICTIONS IS SOMETHING THE
REASON THAT COMES OFF TO THE
FACT THAT THE
STAGE WHEN THE COMPANY HAS
KNOWN TO DONE VERY BADLY AND
YOU CAN SEE HOW THE RETAIL
SECTOR HAS DONE AN INDIVIDUAL
RETAILERS HAVE
DONE FORMED. SO IT ACTUALLY
DICTION SHOULD BE NO SURPRISE
THAT SOMETHING THAT COMES AT
THE VERY END OF
THE PROCESS. SO AT THAT STAGE
THAT THE VISION OF A SUDDEN
SIDE OF THE COMP PAY THE RENT
AND THEY'RE PRETTY CALM PAY
CENTERS IN THE PARTY HAVE
REOPENED AT THAT STAGE EVEN.
SO I THINK THE
EVICTIONS ITSELF IS NOT REALLY
LEADING INDICATION OF WHEN
THINGS ARE GOING BUT I LIKE THE
ONE OF THE RULE I THINK IF YOU
LOOK AT THAT
SO DIFFERENT PARTS OF THE
RETAIL AND ENTERTAINMENT
BUSINESS THAT SOME OF THE MOST
HIT MOST AFFECTED BY THIS.
I THINK BOTH THESE MOVIE
THEATER IS THE ONE TO
THINK ABOUT THEY'VE BEEN
ABSOLUTELY CROSSED I THINK THAT
DONE WORSE THAN ANY OTHER
SECTOR YOU CAST LOOK AT THEM IF
YOU SLOW DOWN OR CLOSE TO A
100% FOR MONTHS TO THE LOCKDOWN
AND WE HAVE NOT RECOVERED SO IT
DOESN'T LOOK LIKE PEOPLE GOING
BACK TO THE MOVIES ANYTIME SOON
IN RETELLING BROADLY
WE'VE SEEN IT'S AN EQUAL BASED
RECOVERY IN TERMS OF RETAILER
WITH THE EXCEPTION OF SOME
CERTAIN SECTORS LIKE APPAREL
AND THINGS OF THAT SORT BUT
DEPARTMENT STORES HAVE BOUNCED
BACK QUITE NICELY MOST OF NOT
ALL THAT MANY OF THEM HAVE
LUXURY AND PERHAPS A BIT BUT
THE SECOND IS REALLY BEING
CRUST A MOVIE THEATER IS
THE QUESTION BECOMES HOW DO
WE CONDITION OF SPACE WHAT TO
DO WITH IT YOU HAVE NEW TENANTS
FOR CAN YOU DO SOMETHING USEFUL
WITH IT IN THE SHORT TERM.
>> COMING ON FRIDAY
AT 8.
>> WE HEAR IN THE MEDIA WE MAKE
A VERY BIG.
>> STILL THE JOBS REPORT AND
IT'S A HUGE INDICATOR OF COURSE
I MEAN WHETHER THE ECONOMY IS
HEADED IN THE RIGHT DOES WALL
STREET DOES IT MATTER.
IT JUST SEEMS LIKE THAT THE
STOCK MARKET AND THE U ECONOMY
ARE JUST SO DISCONNECTED AT
THIS POINT.
JUST WONDERING YOUR INSIGHT
ON THAT IT DOES IT MATTER WHAT
EVEN HAPPENS WITH THE
UNEMPLOYMENT RATE OR HOW MANY
JOBS ARE CREATED IN TERMS OF
ANYTHING.
>> I IT DOESN'T SEEM TO SAY IT
SEEMS THAT THAT WALL STREET HAS
BECOME TOTALLY DISCONNECTED
FROM FROM THE NATIONAL ECONOMY
ITSELF AND I THINK WHAT YOU'RE
SEEING IS THE FED HAS LOWERED
INTEREST RATES SO LOW IS
PUMPING SO MUCH PASSION TO
THE MARKET THAT ANY SORT OF
ECONOMIC FUNDAMENTALS THAT
REALLY MATTER ANYMORE. SO
THIS IS AN ENORMOUS SURPRISE IN
TERMS OF THE
JOBS NOW. COMING OUT LATER THIS
WEEK I DIDN'T THINK IT WILL
IMPACT THE MARKET OF ALL I
THINK PEOPLE JUST SHRUG THAT
OFF OF ITS A MILLION MORE
UNEMPLOYED THAT SOUNDS ABOUT
NORMAL THAT THE STAGE AND THE
RUN RATE SO I DON'T
THINK THAT WE HAVE A BIG IMPACT
IT SEEMS TO BE THE ONLY THING
THAT'S REALLY DRIVING THESE
MARKETS IS MONETARY POLICY AND
THE FED POURING MONEY INTO THE
MARKETS AND THAT'S WHAT'S LEFT
OF THESE TECH STOCKS AS LONG AS
THAT CONTINUES. I THINK THE
MARKET WILL DEFINE THESE TECH
STOCKS TO FIND AS WELL
AND WE'LL CONTINUE TO
OUTPERFORM THE QUESTION BECOMES
WILL STAGE THE FED PUT THE
BRAKES ON AND SAY OK WE PUT
PUMP TOO MUCH MONEY AND NOW WE
HAVE TO START TO TO ACTUALLY
PULL IT OUT AND STILL STOCKED
IS QUANTITATIVE EASING THAT
WOULD PUSHING SO HARD
SO THAT'S THE REAL QUESTIONS
HANG OVER THE MARKET AND
THERE'S A REAL RISK THAT
EVERYONE IS WATCHING FOR THAT
SIGNAL AND AS SOON AS THAT
BECAUSE EVERYONE RUNS FOR THE
DOORS AND TAKES THE X'S AND
THEN WE SEE A SEVERE MARKET
CORRECTION.
>> ALL SO THAT'S WHAT YOU THINK
IS GOING TO DO WHAT YOU THINK
THE MARKET CORRECTION WILL
COMMON.
POINTS INDICATED THAT THEY'RE
GOING TO KEEP THIS TIME THE
MONETARY POLICY FOR YEARS
PERHAPS.
>> INDIA AND THE I
SUSPECT THEY THE ANYTHING THAT
MIGHT STOP THEM FROM DOING THAT
IS IF IF INFLATION PRICE
INFLATION STARTS TO GET OUT OF
HAND AND THEN AND THEN GET
SCHOOLS TO THAMES DOING
SOMETHING SO THAT'S SOMETHING
WE'VE SEEN WAY IN THE POS IN
THE 1980'S AND THINGS LIKE THAT
AND THE POLK AWAY. THEY JUST
RATCHET INTEREST RATES THROUGH
THE ROOF BECAUSE INFLATION
STARTING BECOME A POLITICAL
LIABILITY FOR SO I THINK THAT'S
PROBABLY THE ONLY THING THAT
WILL REALLY STILL FED AND STILL
KEEP IN TOUCH IN HIS TRACKS IS
THE
SENSE THAT THE LOSING CONTROL
OF THE BATTLE AGAINST INFLATION
AND THEY SAID THAT THEY WANT TO
SEE LOTS OF HIGH LEVELS OF
INFLATION IS ALWAYS AN
INTERESTING ECONOMIC ARGUMENT I
THINK BEHIND THAT BUT
ONCE THE AVERAGE CONSUMER
STARTS TO FEEL THAT PURCHASING
POWER IS BEING ERODED THAT
BECOMES THE RELEASE OF A
POLITICAL LIABILITY, AND
THEY'LL HAVE TO PUT THE BRAKES
ON THAT STAGE BUT EUROPE'S THE
RIGHT THAT COULD TAKE YEARS IT
COULD TAKE AT LEAST I WAS AT
LEAST ONE OFF 2 YEARS SOMETHING
ABOUT SO BEFORE THAT REALLY IS
THE IS THE CASE AND THEY START