 Go to David McDowell John Layfield and Melissa Armell on all of this most anything with you begin with you What do you look for? Late Sunday night when you're looking at Asia or you're looking at how our futures are trading Well, what do you pick apart and want to discern for maybe signs of stability or norm returning? Whatever that is I actually only focus on where the market's gapping So that's pre-market or post-market activity So Sunday night really just have the futures in the morning when you get up in the morning Monday It'll be really interesting to see where we gap. I know we rallied into the close on Friday But I think we were weak we were weak all last week and that's what made people panic was the first bearish week You could really say we've had in 14 and a half months since Trump was elected. I think we could still be lower I think we have to gap up huge on Monday morning in order to recover from this immediately Which we might but I don't think that we will we'll have to say so I look at the gap The poll how the gap between what the gap between the close of four o'clock We'll be closed and the open on Monday morning. Where are we gonna open? Where's our institution's gonna come in in the pre-market and buy or they're gonna dump more shares That's interesting, you know taking that's the one thing you always look for every time. There's a downdraft Who's buying we're told about Mark Cuban buying, you know an index We told you about some of the big names though has not yet come forward They might in the days ahead like they did in 87 Peter Lynch buying stocks in a downdraft IBM then GE buying their own shares back in the middle of that in that slide We've seen precious little of that so far it could be going on but they would usually announce it But what do you make of that? I think that Tracy mentioned this. Where is the money going when it goes out of stocks? Well money gets destroyed It doesn't have to go anywhere Excellent point. So it but what I am most concerned about is We are facing you mentioned interest rates We had an unprecedented era of cheap and easy money not just in the United States from the Federal Reserve But around the globe and we don't really know how this ends We don't really know how high interest rates can go in the short run So I think that yours this you know who didn't benefit from all that cheap and easy money actually regular folks They're finally seeing their wages grow at almost three percent tax reform a big part of that I'm not worried about them as much as I'm worried about a collapse in the stock market Maybe 20% a collapse in junk bonds Bitcoin Obviously a bubble there So I think that you're beginning to see just in the start of an unwind and all of this free money And you know what it's never free repercussions. No, you're quite right about that John late So one of the things that has been said of this market is it doesn't know what it doesn't know and it doesn't know How far interest rates could back up nor does it appreciate that you don't have to back up to levels like maybe you and I can Remember and the late 80s or 90s to get people scared that when you don't have sort of like a sense of how high is high People sell first and ask questions later. I understand that but are they overdoing it? Is it your sense now because it's been a volatile six trading days. We've it's the fastest correction on record But are we overdoing it? My opinion is yes, and what you don't know, I think it's the most important thing out there You did have an exotic instrument that was on margin at your previous guest said this these instruments should not be on margin It blew up a bunch of margin calls But it calls what you don't know out there to really come to the forefront and you had a lot of programs selling that was going on People were just taking off risk because they didn't know what was going to happen next and simply this week You had more sailors than buyers. It was a very simple market dynamic that was going on Nothing fundamentally has changed in the global economy They have global synchronized growth for the first time in many years. You still have a low unemployment in the United States You have a low unemployment the eurozone to a 10-year low going on over there and global growth We do have some inflation coming up It doesn't look like it's gonna be 6 to 18 months out before it manifests itself if it does but that's nothing new Nothing has changed. We just have right now I think selling going on because people don't know what they don't know it's not the inflation Inflation as John said isn't that much of a worry? But it's a mistake and fears of inflation where you have policy makers at central banks like the Federal Reserve new chief Jay Jay Powell just taken the job last week. You have Investors overreacting and starting to dump longer term treasuries. That's your real fear It's not the actual inflation, but somebody who makes a mistake in the face You know what revolving credit is at a record high that is credit card debt in this country is north of a trillion dollars I call people about adding additional credit if you think rates are gonna go significantly higher by the way the 10-year yield in 81 it was about 15 percent. Remember that Paul Volcker trying to kill inflation. I do and after 87 I know it got as high as 10 percent the last time so Melissa very very quickly What are you telling clients to do right now? I would say wait and hold if you're a long-term investor all signs are still green for the market We're still very very bullish tax reform has just started I think that corporate earnings this year are gonna really turn out to be great and as far as interest rates go I mean I used to do two mortgages 10 years ago. We were giving rates at 6% people were loving 6% That's the point the higher rates go cheaper the home prices need to be to make that's make sense for people Alright guys. Thank you very very much. Meanwhile adding to this angst this is additional 400 billion dollars in spending as part of that two-year Budget Accord that Republicans and Democrats agreed on