MONEY GOES INTO TREASURIES, SAFE HAVEN, THE PRICE GOES UP, THE
YIELD COMES DOWN.
THERE YOU HAVE IT.
ANOTHER SAFE HAVEN USIS GOLD.
THAT IS AT A SEVEN-YEAR HIGH, UP
27 BUCKS AT $1676.
>>> OIL, THAT’S NOT A SAFE
HAVEN.
HAVEN. YOU ARE COMING OUT OF OIL
BECAUSE OF THE DECLINE WORLDWIDE
IN TRAVEL.
IN TRAVEL. $51 A BARREL FOR OIL, DOWN TWO
BUCKS.
BUCKS. LOOK WHO’S HERE.
I NEED HELP FROM THOSE WHO HAVE
EXPERIENCE IN HANDLING THIS KIND
OF THING.
OF THING. MARIA BARTIROMO HAS SEEN ALMOST
AS MANY SELLOFFS AS I HAVE.
NOT QUITE.
NOT QUITE. MARIA: SELLOFFS, RALLIES.
STUART: HOW DO YOU HANDLE THIS
ONE?
ONE? MARIA: I THINK YOU WANT TO FIRST
STOP, SEE WHERE YOU ARE
INVESTED, ASSESS WHAT YOUR
INVESTMENTS ARE, AND ACTUALLY
IDENTIFY WHERE THE EXPOSURE IS
IN TERMS OF THE EXPOSURE TO
CHINA.
CHINA. DON’T THINK EVERY COMPANY IS
APPLE.
APPLE. IT’S NOT.
IT’S NOT. APPLE IS AN OUTLIER.
APPLE IS PRODUCING EVERYTHING IN
CHINA AND THEN IT’S COUNTING ON
ALL THE DEMAND COMING OUT OF
CHINA FOR ITS GROWTH STORY.
THAT’S NOT EVERY COMPANY.
YES, 50% OF THE EARNINGS IN THE
S&P 500 ARE COMING FROM
INTERNATIONAL ECONOMIES BUT NOT
TO THE EXTENT THAT APPLE HAS
ENTRENCHED IN CHINA.
SO NOT EVERYTHING IS GOING TO
GET IMPACTED HERE.
STUART: ARE THERE GOING TO BE A
LOT OF PEOPLE, SMALL INVESTORS,
INDIVIDUAL INVESTORS, WHO LOOK
AT THIS MARKET AND SAY YOU KNOW,
IT DOESN’T COST ME ANYTHING TO
BUY A STOCK, THE TRANSACTION
COST IS ZERO, SO IF I BUY
MICROSOFT, SAY, AT $170 A SHARE,
AND TEN MINUTES LATER, I SELL IT
FOR $172, THERE’S GOING TO BE A
LOT OF PEOPLE TEMPTED TO DO
THAT.
THAT. MARIA: SURE.
MARIA: SURE. YOU WILL WANT TO FLIP AND GET IN
AND OUT OF STOCKS.
BUT IN MY VIEW THAT’S NOT THE
WAY TO CREATE WEALTH OVER THE
LONG TERM.
LONG TERM. I THINK YOU DON’T WANT TO LOOK
AT EVERY SELLOFF AS AN
OPPORTUNITY TO GO KNEE-JERKING
REACTION ALL OVER THE PLACE.
LOOK, I THINK YOU HAVE TO ASSESS
YOUR PORTFOLIO AND UNDERSTAND
FULLY --
FULLY -- STUART: YOU ARE THE VOICE OF
CALM.
CALM. MARIA: YES.
MARIA: YES. I’M NOT WORRIED ABOUT THIS
BECAUSE I SAW THIS COMING.
FRANKLY, OF COURSE WE WERE GOING
TO HAVE DISRUPTIONS FROM CHINA.
STUART: YOU SAW AN 800 POINT
SELLOFF COMING?
SELLOFF COMING? MARIA: I SAW THE DISRUPTION
COMING AND I TALKED ABOUT IT ON
THE AIR.
THE AIR. THE REASON IS BECAUSE YOU ARE
GOING TO HAVE DISRUPTIONS OF
PARTS, SHORTAGES IN COMPONENTS,
EVERYTHING IS MADE IN CHINA.
LOOK AT THE MEDICAL SERVICES
INDUSTRY, WHERE YOU’VE GOT
EVERYTHING FROM PLASTIC GLOVES
TO MASKS TO 70% OF DRUGS,
GENERICS ARE COMING FROM CHINA
AND INDIA.
AND INDIA. YES, YOU WILL HAVE DISRUPTIONS.
LET’S UNDERSTAND FULLY WHAT THE
DISRUPTION IS.
DISRUPTION IS. LET’S UNDERSTAND FULLY WHAT
COMPANIES WE OWN AND HOW MUCH
EXPOSURE THEY HAVE.
DO IT CALMLY.
YOU DON’T HAVE TO SELL
EVERYTHING OUT TODAY.
STUART: DO WE HAVE A V-SHAPED
RECOVERY?
RECOVERY? AT SOME POINT THE VIRUS WILL BE
DEALT WITH.
DEALT WITH. I DON’T KNOW WHEN.
BUT WHEN IT IS DEALT WITH, DO WE
HAVE A V-SHAPED RECOVERY?
MARIA: I DON’T KNOW, BECAUSE IT
ALL DEPENDS ON THE DURATION OF
THIS.
THIS. IF THIS GOES ON ANOTHER TWO WEEK
INCUBATION PERIOD, THEN ANOTHER
TWO WEEKS AFTER THAT, THEN IT’S
GOING TO BE LONGER THAN PEOPLE
THOUGHT.
THOUGHT. IT ALSO DEPENDS ON ARE WE GOING
TO GET HONESTY FROM CHINA.
THEY HAVE NOT BEEN HONEST WITH
US.
US. THEY KNEW ABOUT THE CORONAVIRUS
BACK IN 2019.
THEY DIDN’T TELL ANYBODY AND WE
STILL DON’T REALLY KNOW WHERE IT
ORIGINATED FROM BECAUSE THEY
WON’T ALLOW THE CDC IN THERE.
HAVING SAID THAT, I THINK IT’S
IMPORTANT TO JUST STAY CALM,
ASSESS YOUR PORTFOLIO AND LOOK
AT OPPORTUNITIES TO GET IN.
THIS MAY VERY WELL CONTINUE FOR
A LITTLE BIT BUT THERE WILL BE
OPPORTUNITIES TO BUY GREAT
COMPANIES AT GREAT PRICES.
STUART: MARIA, HOLD STILL FOR
ONE SECOND.
ONE SECOND. CONTROL YOUR ENTHUSIASM, YOU
MIGHT SAY.
MIGHT SAY. WE GOT NEWS ON THE VIRUS AND
THIS IS FROM THE WORLD HEALTH
ORGANIZATION.
ORGANIZATION. SUSAN: THEY JUST HELD A PRESS
CONFERENCE IN THE PAST HOUR.
I THINK THAT’S KIND OF WHY THE
STOCK MARKET TRICKLED PAST THE
800 TO 900 POINTS DOWN ONCE
AGAIN.
AGAIN. THE W.H.O. DESPITE THE FACT WE
HAVE SEEN A SEVENTH DEATH IN
ITALY BEING REPORTED IN THE LAST
HOUR OR SO, THEY SAY IT IS NOT A
PANDEMIC STILL.
PANDEMIC STILL. THEY ARE RELUCTANT AND SAY IT’S
TOO EARLY TO DECLARE A PANDEMIC
BUT WE ARE STILL TRYING TO AVOID
THAT REALITY, ACCORDING TO THE
W.H.O. WHEN IT COMES TO THE
CORONAVIRUS.
CORONAVIRUS. RIGHT NOW, WHAT THEY ARE
WITNESSING IS THE UNCONTAINED
GLOBAL SPREAD OF THIS VIRUS AND
WE ARE NOT WITNESSING LARGE
SCALE DEATHS.
SCALE DEATHS. HENCE IT’S NOT A PANDEMIC STILL
IN THEIR VIEW.
BUT A TWELFTH DEATH REPORTED IN
IRAN, AT LEAST 12, SEVEN IN
SOUTH KOREA WITH OVER 800 CASES.
SEVEN DEATHS IN ITALY WITH 219
CASES AND 50,000 BEING
QUARANTINED THERE.
QUARANTINED THERE. GLOBALLY, 79,000 CASES AND CLOSE
TO 3,000 DEATHS.
ASHLEY: I WANTED TO BRING HOME
MARIA’S POINT ABOUT EVERYTHING
IS MADE IN CHINA.
I’M LOOKING AT THIS FINE "VARNEY
& COMPANY" COFFEE MUG.
I TURN IT OVER AND GUESS WHAT?
IT’S MADE IN CHINA.
STUART: THE WORKSHOP OF THE
WORLD.
WORLD. WHEN IT SLOWS DOWN, WE ALL FEEL
THE HEAT ON THAT.
BUT XI JINPING IS DOING, HE’S
MOVING MOUNTAINS TO TRY TO GET
THIS THING BEHIND HIM.
HE’S GOING TO PUMP A TON OF
MONEY INTO THE ECONOMY.
HE’S GOING TO ORDER PEOPLE GET
BACK TO WORK.
MARIA: HE ALREADY DID THAT,
RIGHT.
RIGHT. OVER THE WEEKEND HE TOLD SOME
PEOPLE GO BACK TO THE FACTORIES
EVEN AS THE DEATH TOLL IS
RISING.
RISING. I THINK IT’S VERY HARD TO
BELIEVE ANYTHING COMING OUT OF
CHINA AND BY THE WAY, SUSAN JUST
WENT THROUGH THE DEATHS.
THOSE ARE THE DEATHS WE KNOW OF
IN THE HOSPITALS.
CHINA IS REPORTING THE DEATHS
COMING FROM THE HOSPITALS.
WE DON’T KNOW ABOUT ANY DEATHS
IN APARTMENT HOMES OR IN HOMES
IN CHINA.
IN CHINA. THOSE ARE NOT BEING REPORTED.
I THINK THIS IS PROBABLY WORSE
THAN IT LOOKS, CERTAINLY FOR
CHINA, BECAUSE THEY HAVE BEEN
PLAYING THIS DOWN FROM THE
GET-GO.
GET-GO. WE REALLY NEED THE CENTERS FOR
DISEASE CONTROL TO GET INTO
CHINA AND START DOING AN
INVESTIGATION.
INVESTIGATION. UNFORTUNATELY, THE CHINESE WILL
NOT ALLOW THAT.
BUT LOOK, UNFORTUNATELY, THIS IS
WHAT WE HAVE TO DEAL WITH.
WE DON’T HAVE THE REAL ANSWERS
FROM CHINA, BUT HOPEFULLY, WE --
THE CDC IS IN AMERICA AND
COMPANIES CAN PRODUCE WHAT WE
NEED TO PRODUCE FOR TREATMENT
AND ULTIMATELY A VACCINE EVEN IF
IT’S A YEAR AWAY.
STUART: HEAVEN FORBID THERE’S A
SERIOUS OUTBREAK IN THE UNITED
STATES.
STATES. WE HAVE 35 CASES SO FAR.
VERY VERY RESTRICTED, LIMITED
NUMBER.
NUMBER. HEAVEN FORBID THAT REALLY
EXPANDS.
EXPANDS. MARIA: THAT’S THE REASON THE
PRESIDENT LIMITED AIR TRAVEL.
ISN’T IT INTERESTING THAT THE
CHINESE ARE CRITICIZING US FROM
STOPPING FLIGHTS IN AND OUT OF
CHINA WHEN IN FACT, THEY’VE GOT
PEOPLE LOCKED UP IN THEIR HOMES.
STUART: EXACTLY.
STUART: EXACTLY. MARIA: WE SHOULD BE CRITICIZED
FOR STOPPING TRAVEL.
STUART: LET’S TALK POLITICS.
HERE WE GO.
MARIA: BRING IT ON.
STUART: THE LATEST GALLUP POLL
SHOWS PRESIDENT TRUMP’S APPROVAL
RATING IS HOLDING STEADY, 49%,
AND WE HAVE INDEPENDENTS,
THEY’VE GOT 43% APPROVAL OF THE
PRESIDENT.
PRESIDENT. APPARENTLY THAT’S A HIGH FOR THE
GROUP.
GROUP. DOESN’T SOUND VERY HIGH TO ME.
OKAY.
OKAY. I WILL TAKE 43%.
I THINK THE PRESIDENT’S GOT
MOMENTUM AND I THINK HE WILL
RIDE IT THROUGH TO NOVEMBER.
THAT’S MY OPINION.
WHAT’S YOURS?
WHAT’S YOURS? MARIA: I THINK YOU’RE RIGHT.
LOOK, WHEN YOU START COMPARING
PRESIDENT TRUMP AND HIS POLICIES
TO WHAT WE HAVE GOT ON THAT
STAGE THE OTHER NIGHT FOR THE
DEBATE, IT’S A CLEAR CHOICE.
SOCIALISM IS NOT GOING TO FLY IN
THE FACE OF THESE PROGRAMS THAT
THE PRESIDENT HAS INSTITUTED
THAT HAVE ACTUALLY REALLY MOVED
THE NEEDLE ON JOBS AND
OPPORTUNITIES FOR MOST PEOPLE.
LOOK AT THE BLACK VOTE.
THIS WEEKEND ON SUNDAY MORNING
FUTURES I HAD CANDICE OWEN.
SHE SAYS MINORITY COMMUNITIES
ARE INCREASINGLY SUPPORTING THE
PRESIDENT NOT BECAUSE OF WHAT HE
SAYS, BECAUSE OF WHAT HE’S DONE.
STUART: PRECISELY.
STUART: PRECISELY. LLOYD BLANKFEIN, FORMER GOLDMAN
CEO, SAYS HE’S NO FAN OF BERNIE
SANDERS.
SANDERS. THERE’S A LONG QUOTE.
I WILL READ SOME OF IT.
I MIGHT FIND IT HARDER TO VOTE
FOR BERNIE THAN FOR TRUMP.
LET’S LEAVE IT AT THAT.
MIGHT FIND IT HARDER TO VOTE FOR
BERNIE THAN FOR TRUMP.
INTERESTING.
INTERESTING. HE’S A DEMOCRAT.
MARIA: I HAD DINNER WITH LLOYD
BLANKFEIN WITH A COUPLE OTHER
PEOPLE RIGHT BEFORE THE ELECTION
IN 2016, AND I SAID TO HIM
LLOYD, HOW MANY PEOPLE AT
GOLDMAN DO YOU THINK ARE
SUPPORTING TRUMP.
SUPPORTING TRUMP. HE SAID VERY LITTLE, NOT AT ALL.
MEANWHILE, I HAD HAD DINNER WITH
A COUPLE PORTFOLIO MANAGERS AT
GOLDMAN AND THEY SAID WE LOVE
TRUMP.
TRUMP. HE UNDERESTIMATES THE SUPPORT
FOR TRUMP WITHIN GOLDMAN SACHS
AND THROUGHOUT WALL STREET.
THEY UNDERSTAND WHAT THE TRUMP
ADMINISTRATION POLICIES HAVE
DONE NIERFOR THEIR BUSINESSES AN
LIVES.
LIVES. STUART: DEMOCRATS ARE TOTALLY
SPLIT.
SPLIT. MARIA: ME CAN’TTHEY JUST CAN’T S
AND THEY DON’T WANT HIM TO
EFFECT A GRIP ON POWER.
HE COMES IN, YOU ARE IN THE
SWAMP, WE WILL DRAIN THE SWAMP,
TRYING TO EXPOSE EVERYBODY WHO
WASN’T DOING WHAT THEY SAID THEY
WERE DOING.
WERE DOING. THEY DON’T WANT TO LOSE THEIR
POWER.
POWER. HIS VERY PRESENCE IS THREATENING
THEIR EXISTENCE.
THEIR EXISTENCE. STUART: I THINK YOU’RE RIGHT.