LACKLUSTER RESULTS.
BACK TO YOU, NEAL.
NEIL: THANK YOU VERY MUCH.
I WANT TO GET A READ OF THESE
MARKETS FROM JONATHAN HOENIG WHO
IS HERE.
HE HAS A BOOK OUT, ON
AMERICANISM.
WE ARE QUESTIONING AMERICAN
STOCKS THESE DAYS.
I WANT TO TOUCH ON THAT FOR A
BIT.
WHAT THE HECK IS GOING ON?
WHEN YOU LOOK AT EVERYTHING
GOING ON?
THAT IS JAMES FREEMAN'S BOOK, A
WONDERFUL BOOK, BUY IT.
BUT IT IS NOT HIS BOOK.
ANYWAY, WHAT DO YOU MAKE OF WHAT
IS GOING ON HERE?
>> IT IS AN UGLY TAPE.
PUT ASIDE POLITICS AND OPINING
ON ADMINISTRATION, THIS IS UGLY
TAPE.
LOOKING AT NUMBER OF NEW HIGHS
VERSUS NEW LOWS.
THIS TELLS YOU WHAT IS GOING ON
BENEATH THE SURFACE.
YOU POINTED OUT AMAZON, EXCUSE
MY, APPLE, ESSENTIALLY ON
DISCUSS UP OF A BEAR MARKET.
THERE ARE EVEN MORE STOCKS.
WHAT IS IT, ALMOST 200 STOCKS,
NOW AT NEW 52 LOWS.
NEW LONG-TERM TRENDS.
ONLY 30 OR 40 AT NEW 52-WEEK
HIGHS.
ESSENTIALLY JUST A WEAK TAPE.
MAKES IT DIFFICULT FOR STOCKS TO
DO WELL EVEN WITH GOOD NEWS OUT.
NEIL: THERE IS A WEAK TAPE.
WHEN YOU DEFER TO THAT, TALKING
ABOUT AN ENVIRONMENT, IN THE
PAST, SEEMS WE HAD WEAK TEMPER
TANTRUMS.
WHATEVER YOU WANT TO CALL THEM,
THEY ARE SHORT-LIVED.
UNDERNEATH THE SURFACE FAR
UGLIER THAN IT APPEARS ON THE
SURFACE.
>> I'M NOT A CASANDRA, NOT
ROOTING -- OLD SAYING A RISING
TIDE LIFTS ALL BOATS, THAT IS
TRUE IN A BULL MARKET.
MANY STOCKS TEND TO IMPORTANT.
IN A BEAR MARKET, LED BY APPLE,
THESE FANGS, WASN'T ALCOA AND
FORD DRIVING US ON THE WAY UP.
IT WAS THESE "FANG" STOCKS.
SO I SEE IT --
NEIL: YOU THINK THEIR SELLOFF IS
OVERDONE?
>> NO, NEIL, I DON'T.
FACEBOOK WAS JUST AT A 52-WEEK
LOW.
AMAZON AS YOU SAID IS AT A BEAR
MARKET.
THESE ARE STILL ESSENTIALLY
FALLING KNIVES.
I SEE IT ALMOST LIKE A SITUATION
IN THE LATE 1990s, BY THEIR
OWN SUCCESS THEY BECOME A
DOMINANT PART OF THE INDICES
MUCH LESS THE ECONOMY.
AMAZON OR APPLE IS 12% OF THE
NASDAQ.
IT IS FOUR OR 5% OF THE DOW.
WEAKNESS IN THESE STOCKS JUST
WILL BE DIFFICULT, WHAT DOES IT
MEAN FOR EVERYDAY INVESTORS?
YOU HAVE TO SIT TIGHT AND BE
LOATHE TO PUT A LOT MORE MONEY
TO WORK IN THIS MARKET RIGHT
NOW.
NEIL: I CAN ALWAYS TRY TO CATCH
A FALLING KNIFE, SEE A BARGAIN.
YOU DON'T SEE US AT ANY THESE
LEVELS FOR ANY OF THESE STOCKS?
>> I'M NOT AT THE WORST-CASE
SCENARIO.
I THINK ABOUT THE PERIOD AFTER
2000.
A LOT OF PEOPLE BOUGHT
MICROSOFT, THEY SAID, MICROSOFT
IS NOT GOING OUT OF BUSINESS,
CISCO IS NOT GOING OUT OF
BUSINESS.
ORACLE -- INTEL IS NOT GOING OUT
OF BUSINESS.
TEASE ARE BIG NAMES IN THE
90s, BUT NONE OF THEM WENT OUT
OF BUSINESS BUT THEY BASICALLY
TRADED SIDEWAYS FOR 10 YEARS.
NEIL: THEY SURVIVED THE.
>> THEY SURVIVED BUT WE'RE IN IT
TO MAKE MONEY.
A LOT OF PEOPLE ARE IN IT FOR
THE LONG HAUL, AMAZON, FIVE OR
SIX, SEVEN YEARS ON THEY HAVEN'T
MADE MONEY, THEY SAY UNCLE, GET
ME OUT, YOU MENTIONED AMAZON,
CITY IN LONG ISLAND, NEW YORK,
AND NORTHERN VIRGINIA, THEY'RE
GUARANTYING 50,000 JOBS, AMAZON
FOR BOTH LOCATIONS, 25,000 EACH
BUT BILLIONS IN TAX INCENTIVES.
NOW A LOT OF LIBERALS ARE CRYING
FOUL.
WHAT DO WE REALLY GET FOR THAT.
WHAT DO YOU SAY?
>> IF IT WAS SOLYNDRA, THEY
WOULD LOVE IT.
FOR SOMETHING GREEN THEY WOULD
LOVE IT.
THEY SHOULD BE AGAINST IT AND
CONSERVATIVES SHOULD BE AGAINST
IT.
TAKE THE PARTY OUT.
THIS IS CRONYISM.
WE SHOULD BE AGAINST CRONYISM.
WE SHOULD BE AGAINST GOVERNMENT
PICKING WINNERS AND LOSERS.
THIS IS 2 1/2, WHAT, BILLION
DOLLARS OF OTHER PEOPLE'S MONEY
GOING TO AMAZON TO, YOU KNOW,
WHETHER IT CREATES JOBS OR NOT
IS IRRELEVANT.
THAT'S WRONG.
NEIL: YOU BELIEVE AMAZON WHEN IT
SAYS 50,000 JOBS?
>> NEIL, HOW MANY TIMES HAVE WE
HEARD THIS?
ETHANOL, A GREAT EXAMPLE,
REPUBLICANS ESSENTIALLY SCAM TO
BOOST UP THAT INDUSTRY IT, WOULD
CREATE SOME JOBS.
OBAMA STIMULUS, OH, IT WILL
CREATE SOME JOBS.
IF THE JOBS ARE CREATED, LET
THEM CREATE THEM AS AMAZON
ALWAYS CREATED JOBS IN THE
PRIVATE SECTOR.
NEIL: IS THIS WELL SPENT IN THE
PRIVATE SECTOR IF YOU INVEST
GETTING THOSE JOBS IN YOUR NECK
OF THE WOODS?
>> I THINK IT IS UNDERESTIMATED.
THEY SAY 45,000-DOLLAR PER COST
FOR THE TAXPAYER.
I THINK IT IS COMPOUNDED AT
HIGHER RATE.
LOOK AT LOST PRODUCTION, LOGICAL
RESULT WOULD BE SIMPLY CUT
SPENDING, HAVE THE STATE CUT
SPENDING, CUT EVERYONE'S TAXES.
LET THEM DECIDE WHO TO
SUBSIDIZE, NOT TO SUBSIDIZE.
NEIL: VERY GOOD POINT.
>> WORST THING, IT CREATES MORAL
PRECEDENT, IF YOU HAVE TO
COMPETE GO TO CUOMO'S OFFICE,
DE BLASIO, ANY POLITICIAN'S
OFFICE.
NEIL: ALL THE BUSINESSES ALREADY
HERE SAYING WHAT ABOUT ME?
>> IT IS AN AFFRONT TO HONEST
TAX PAYING BUSINESS PERSON.
BUSINESS PEOPLE ARE THE WORST
DEFENDERS OF CAPITALISM
SOMETIMES.
NEIL: THIS MAKES YOU A RIDDLE
WRAPPED IN A CONUNDRUM.
YOU TICK OFF BOTH.
THIS TEXTBOOK ON AMERICAN SYSTEM
THIS WHAT YOU'RE EXPLORING.
>> THANK YOU, NEIL.
HAPPY TO SHARE IT WITH YOU.
THIS IS REAL RADICAL STUFF.
I, PUBLISHED THIS BECAUSE I
BELIEVE THAT AMERICANS LEFT AND
RIGHT REALLY FORGOTTEN THE BASIC
NATURE OF WHAT AMERICA IS ABOUT.
IT IS NOT ABOUT SACRIFICE TO GOD
OR THE GREATER GOOD OR THE
STEELWORKERS, ENVIRONMENT OR
AMAZON OR ANYONE ELSE.
IT IS ABOUT INDIVIDUALISM, NEIL.
IT IS ABOUT YOUR OWN RIGHT TO
LIVE YOUR OWN LIFE UNENCUMBERED,
UNMOLESTED BY ANYONE INCLUDING
GOVERNMENT, TO PURSUIT YOUR OWN
HAPPINESS.
WE SAY, LIFE, LIBERTY, PURSUIT
OF HAPPINESS, THAT IS A
STATEMENT.
NEIL: YOU KNOW WHAT HAPPENS IF
WE DON'T GET OUR ACT TOGETHER?
>> WE KNOW WHAT HAPPENS.
THIS BOOK WAS ACTUALLY INSPIRED
BY A PUBLIC BY AYN RAND.
SHE SAW THIS COMING IN THE
1940s, WHICH IS ESSENTIALLY
COLLECTIVISM'S RISE IN AMERICA.
THIS COUNTRY ISN'T ABOUT
SACRIFICE TO GOD OR THE THE FOUR
FUHRER OR POPE OR ANYBODY ELSE.
NEIL: WHAT DO YOU THINK ABOUT
PRESIDENT TRUMP?
>> MY FRUSTRATION WITH PRESIDENT
TRUMP WAS ALWAYS HIS REFLECTION
ON CAPITALISM.
IFING IS, THAT IS WHAT
DIFFENTIATES AMERICA FROM ANY
OTHER SOCIETY IN HISTORY,
CAPITALIST SOCIETY BASED ON
INDIVIDUAL RIGHTS, YOUR RIGHT TO
YOUR OWN LIFE, YOUR OWN LIBERTY,
YOUR OWN HAPPINESS.
WHAT FRUSTRATES ME A LOT OF
TRUMP'S NATIONALIST RHETORIC
THERE, IS BAIT AND SWITCH
BETWEEN PATRIOTISM AND
NATIONALISM.
SO, FOR ME NATIONALIST IS
SOMEONE WHO SAYS, MY COUNTRY
RIGHT OR WRONG.
MY COUNTRY RIGHT OR WRONG.
THAT IS WHAT I SEE A LOT OF NOW.
A REAL PATRIOT SAYS NO, AMERICA
FOR THE RIGHT IDEAS, FOR THE
INDIVIDUAL IDEAS THAT SAYS YOUR
LIFE IS YOUR OWN.
YOU'RE NOT SACRIFICING TO THE
GREATER GOOD.
NEIL: YOU'RE TAKING EMANNUEL
MACRON'S VIEW, FRENCH?
>> BY NO MEANS.
EUROPE IS A GREAT EXAMPLE OF
WHAT HAPPENS TO A COLLECTIVIST
SOCIETY OVER TIME.
IT DOESN'T NECESSARILY
DISINTEGRATE BUT BECOME AS
TERRIBLE PLACE YOU WANT TO
LEAVE.
KEEP AMERICA EXCEPTIONAL, KEEP
IT INDIVIDUALIST, KEEP IT FREE.
NEIL: I LOOK FORWARD TO READING
THE BOOK.
I HAVE NOT A PLEASURE.
A NEW TEXTBOOK ON AMERICANISM.
EMPHASIZES ME.
>> EXACTLY.
NEIL: VERY GOOD, VERY CLEVER.
THERE ARE WORDS INSIDE OF IT?