 All right, you know him as Mr. Wonderful on Shark Tank, but Kevin O'Leary is also a markets pro and he joins me now on set Kevin So great to see you. Welcome back. Great to be here. Thank you So you're also the chairman of Oshare's ETF investments. You have a slew of ETFs Let's start off with your market outlook because we've had a lot of negative events in the markets, right? Hurricanes provocations from North Korea and yet the 10-year yields has been coming down The dollar index has been coming down, but stocks are up. They don't really react to this negative news What's going on here? Explain the resilience behind the stock market right now? I think what you're seeing is you know when we talk about let's stay domestic for a moment the devastations of these hurricanes the series of storms that have come through And loss of life, which is horrific on the other hand the economic activity that happens in a place like Texas as a result of Rebuilding and what's going to happen in Florida when this current storm goes through it is actually a stimulus to those economies as money Pours in to rebuild and so the other attribute that I think the markets fascinated with as of today because you know We've gone through this terrific weekend in Florida Does this mean the Fed holds back in September? Does this meet the Fed when they're thinking this month towards the end of the year rate hike? My guess is there's more than a 50% chance they do nothing because raising rates now just makes it more expensive to rebuild So if they're thinking about that or putting any stress on the economy as a result of a rate I doesn't really make a whole lot of sense and I think the market sense is that that's one attribute for why it's resilient The other more fascinating one is the mid cap small cap space has not participated in the recent rally Even though the dollar has been pummeled, but you got to remember small cap stocks have about a hundred percent of their revenue Domestic so they're not as exposed to currency fluctuations and yet their earnings have been healthy and they haven't had their move My guess is if there's any optimism in Tax reductions for corporations, they're going to be the beneficiaries along with the S&P 500 So I'm sort of betting more on the mid cap small cap story for the back end of the year as a result of setting up these You know these tailwinds for them that we that haven't they haven't benefited yet So I'm anticipating that that arena of the mid cap small cap domestic stock will outperform the S&P now You're you seem optimistic on the prospects of tax reform for the rest of this year, right? I mean were you encouraged by the storm debt ceiling deal that Trump was able to put together me? It seems like it was the storm that was the reason why this came together And we're we're now shaping up for an epic battle in December when we have that next debt ceiling deadline I think Trump has got to the point in his in his mandate where he wants to get things done And you saw some evidence of that in this recent activity I think the the bipartisan nature of tax reform Gives me a lot more optimism than I got on health care the health care battle could go on for another year or so But tax reform pretty well. I don't care what side of the seats you're on People like it for their own constituencies and everybody realizes that the corporate tax domestically is not correct It's just not competitive. So I think if there's any optimism comes in for Q1 Q2 2018 you'll see the benefit of it in the in the P expansion or at least the maintenance of optimism in the equity markets You know with with the with the 10 handle down at 2.0 almost I don't I'm not excited about fixed income right here I'm still excited about equity, but the the falling 10-year yield I mean traditionally that that's sort of a warning sign right because you know the bond market And it shouldn't necessarily move so differently from the stock market But what do you make of the following 10-year yield? I think interest rates are low everywhere and they have been for a long long time that that There's been a decoupling around the flight to safety versus equities now for the last two years I think what you can read into the two, you know the decrease in the 10 years rate is a Lot of people think the Fed is not going to move because of the recent activities You know there's risk globally with geopolitical issues around Korea, but also these these whackings of these storms This is multi-billion dollar cost and the Fed doesn't want the country to pay more than it has to that's my guess And hurricane season is going on for another couple months, so this could be just a tip of the iceberg Yeah, although to get category 3s and 4s hitting twice in a year. You got to go back a long time Sure, and so it's a little rare, but what's happened in Florida even though, you know It's still horrific was not as bad as people anticipated probably at least 50% less in damage costs than anticipated I want to shift now and talk about Apple. It's the largest holding in your OUSA ETF We obviously have a big Apple event on Tuesday and there was a leak over the weekend And we now know the name of the new iPhone the iPhone X How damaging is this for the stock because there's a lot riding on this event. No, it's not damaging at all I mean, I think you've really got three different Models, so this is really going to be the event of the last four years for Apple And it continues the development of the platform my whole premise of investing in Apple and always has been is that You look at the software side of this the services business Yes, incredible margins of that if they were giving phones away It would be supportive of the services business and so they don't have to give them away because people want the brand So that's a wonderful thing But the truth is Apple is way past 10% of its revenue and services and continuing to grow and the growth rate of the Services business is paramount. That's what matters for the stock and it's right on track I'm very optimistic for the rest of the year for Apple I think this is going to be a huge event everybody's waiting to upgrade and it gives them a really good edge with multiple models at different Price points for global market share and yeah, and that's what so every time you get a phone You get an Apple phone you have now an incentive to go into the services business Which excites me more than anything else But still the iPhone is king for Apple and if the new one is reportedly going to cost a thousand dollars a phone I mean does that worry you that it could turn some people off and who's going to pay that much? It's been the argument for seven years about the iPhone that it's too expensive and that all kinds of competitors will come in But you don't get access to the Apple platform without the iPhone Believe it or not I think people are going to go to plans again to pay these things over two to three year periods and they're going to want The features I haven't met anybody that doesn't want the new iPhone now How they pay for it isn't is an issue but the telco operators are going to be very Accommodative because they know that locks them into plans and keeps them as users during for 36 months and more All right. Well, I got my success. I'm going to be upgrading in a couple months. I knew you would Kevin O'Leary. Thank you so much. Thank you