city mayor eric adams cutting city funding for libraries this month among other cuts, they can now afford to be open six days a week. we will be following all of this on "mornings with maria" 6 - 9:00 a.m. eastern on fox business, weekdays, i will see you on the fox news channel on sunday, sunday morning 10:00 a.m. eastern live for "sunday morning futures", exclusive interviews with house oversight committee chairman james comer, texas governor greg abbott in 2024 arizona senate candidate carried like. join us live sunday on fox news. that'll do it for fox business. thank you so much for joining me, have a great res weekend. i will see you again next time. ♪ >> "barron's roundtable" sponsored by global x etf's.

>> welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead, i am jack hough in for jack otter he's been away hosting the barron's advisor women summit coming up he asked top advisor holly newman crossed over outlook and where interest rates are headed. then there is a way to invest in the lucrative world of a.i. without the big price tag, expert panel will tell you how, later the legacy of brookshire charlie munger, the resident andrew bary will tell his most important lesson for investors at the end of the show, we began as always with three things investors to be thinking about right now, stocks indy the week mostly higher in closing out the best month since july of last year, can they pull off the santa claus rally from here. , oil stocks have stumped this year why they could be ready to rally honk if you think it's related to fuel demand, here the

sleigh bells jingling, ring team tingling for retail. we will look at what consumers are spending on including hot gifts, not squish mellows, that was last year's hot toy. on the "barron's roundtable" my colleagues ben levisohn, carleton english and barron senior squish mellows andrew bary, let me start with you, this is a stock market rally we have going on, what you see. >> i see the stock market going up for five straight weeks, five weeks ago the market was falling everyone was terrified, now it won't go down, this is great, this is what you want to see after pullback and has a lot to do with the fed and possible rate cuts and it's fantastic and it looks like this is the best month of the year coming up for december and it can keep going till the end of the year. >> was been running most recently, still big check are weakening any of the value

stocks, the small caps and people watching for. >> we saw a handout from the big seven tech stocks to the dow jones industrial average, salesforce was in there that is a big tech stock also things like nike, american express, boeing and caterpillar and people are starting to feel better about the consumer and industrial business and small caps have a fantastic week that's another sign of the rally broadening out. >> why would you want to brag at the portfolio away from the tech stocks. >> and etf with rsp and equal weighted s&p 500 etf you get all the stocks but you don't have the heavyweight to apple et cetera you can go to a small-cap etf you have one that follows russell 2000 which is a broad stop etf, a lot of junky, if you want something more quality s&p 500, i jr safer companies and it does pretty well too. >> oil stocks have stunk, you say stagnated but i call that

relative stinking, why are they going to do better. >> oil stocks are flat, the problem is oil prices are down to $75 a barrel from 90 during the summer and investors are concerned that the world is producing too much despite the valve to cut production but the long-term outlook looks pretty good, you have growth in the developing world which is driving oil and gas demand in the industry is under invested in the capital spending which is a m&a activity. i point oil stocks, chevron stocks down 20% this year, the yield is 4% ten times earnings, smaller plays include epa of apache dividend and i would point to shell the big european super major, it trades at a discount to chevron and exxon and one catalyst basically the uk in the united states. jack: a big un climate conference in dubai right now, something a hot ticket, is there anything beautiful that will come out of it.

>> a lot of hot air. >> carleton we had black friday, cyber monday and terrific tuesday, weird wednesday what can you tell us about the state of the consumer heading into the christmas season. >> the consumer is looking strong no matter what metric the single black friday sales or the cyber monday, you put it all together to the five-day supersized holiday shopping weekend, you are looking at increases in the mid-to high single digits compared to last year end coming in much higher than expected. one thing that could be a little troubling and huge surge and buy now pay later that is up 43% year-over-year, helps companies their stock was up 30%. does that mean consumers are feeling stretched and using credit or finding another way to make purchases, it will depend on the delinquency ends up being or ends up not being. >> we hope thereby now in pain later. >> which retailers are poised to really stand out this holiday. >> look at t.j. maxx, that is

where the income sensitive consumer abercrombie and finch on the other side of the spectrum and then you have good data from costco earlier in the week seeing strong november sales growth numbers. really is going to be a pick and choose but there's opportunities for retailers on all parts of the income specter. jack: tells about hot gifts and toys, andrew tried to say squish mellow that was last year's top seller but have a good one for you. what are the gifts that shoppers should be looking at. >> i was a child during tickle me elmo. >> that's on the times square, go ahead it's a busy, hologram not as adorable ass one, that is one that parents will be buying a digital hologram toy. jack: that looks dangerous. >> a little threatening. the other one is the stanley cup not the hockey stanley cup but

the big 40-ounce coffee mug is like the old yeti type thing. it is the new hot thing that people want to have further hot or cold beverages. jack: i think that we have some of those in our house, are we over hydrated our children, that is a topic for another time. jack otter learning important investing advice from barron's top advisor holly newman, we will take you to the annual barron's advisor woman summit in palm beach, florida. stay right there.

>> jack otter hosted the woman summit in palm beach, florida this past week with the best minds in the wealth management industry, one-on-one with senior wealth advisor and barron's hall of famer holly newman croft, watch. >> thank you so much for joining us in sunny palm beach, thank you for having us. i want to get your 2024 outlook we should step back slightly a decade of free money in interest rates shot up and clobbered interest rates and bonds, where do we go from here. >> 2022 everyone is worried about what else could go wrong, 2023, the market really surprised on the upside, november snapping a three month negative streak in the market. and borrowing anything unforeseen we will continue the rally for the end of the year, what is really important to remember, this rally is so concentrated 80% of the market

returns are coming from ten stocks. as we look to 2024 there is a lot of value to be found in every asset class and what's really important is fundamental analysis, active management to identify those companies and looked over for the ten magnificent ten i guess if i can coin a new term today. >> i want to ask you how you want to play more pacific investment questions what are the economic forces you see in 2024 that will drive some of these changes. >> we are keeping a really close eye on inflation and a really close eye on an employment. it's great to see inflation come down this year as he could come down much slower than everyone would've anticipated and were quite away from the 2% target and our market has been driven by the consumer, the u.s. is a service-based economy, the consumer has been driving this market but with rates higher for longer were already seeing those impacts on the consumer but as

inflation comes down and employment stays low it increases the likelihood of the soft landing. >> a magical soft landing are we going to hit a recession or soft landing and i don't think it matters, i do think the economy is going to slow, whether we manage a soft landing which we never managed in the tightening cycle before doesn't mean it's impossible, probably unlikely but more likely every month that inflation comes down. the economy will slow and we will feel the impact in the market. >> you probably want to rebalance out of the magnificent ten, they are a little pricey and a lot of momentum what you rebalance into what looks attractive under the scenario. >> two things you want to make for taxable investors that you do it in a tax efficient way so we use the cdi strategy the tax

efficient strategy for managing equity portfolio. >> custom direct indexing. you want to do in a tax efficient way. what if i companies that have strong pricing power that have a have a huge run-up in growth and are highly leveraged and will be punished by the higher interest rates today. we do not believe the sub asset class is specific. we think you can find those companies in u.s. large-cap and small and mid-cap and developed international. we do favor large-cap and developed international over emerging-market and small and mid-cap as we enter 2024. >> on the bond side of the portfolio, really rough year as interest rates shot up in 2022 has been okay for bonds, where are you do you stay short that the long end and rates might come down. >> i do think rates will come down i don't know when they will come down but i think a year from now rates will be lower

than they are today we are starting to extend duration on our portfolios. in the bond portfolio you can get a taxable yield of 6%, when you compare that to the long-term return of the market as 7 - 8% that is a nice place to sit tight, capture the returns and wait for the uncertainty and the volatility that we will for sure experience in 2024, it is not just inflation and unemployment it is geopolitical risks and also entering an election year and election year as you know is a volatile year and the best of circumstances. some people might argue these are not the best of circumstances as we enter this one. jack: it'll be interesting as the chinese say, let's pivot to what you're hearing outside of this room you are in a big ballroom with $800 billion under management, 700 women. >> this is the best conference.

i come to a lot of conferences but this is a room full of highly accomplished women and you set the stage for such a think tank for women to share ideas in your speakers to share best practices, we come away with updates on investments, full-length or pre, best practices and it reinforces what a privilege it is to work in the industry and what an honor to be included in the barron's top conference always a great time to be here. jack: thank you so much for doing this. a.i. sticker shock the top tech stocks come with hefty price tags, our panel j.p. morgan wealth management knows it's easy to get lost in investment research.

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>> nvidia has been the magnificent seven top performer in number one a.i. investment the stock is up over 200% since the start of this year but doesn't have room to run and what alternative ways to invest in a.i. the cover story this week and barron's deputy editor alex ewell joins the panel. >> certain people on the panel are not going to like what i'm about to say but this is not hyped enough. it looks pretty cheap 24 times earnings, that's because you twitter% growth for the stock and more than 20% earnings growth from the stock this year, you look at 70% next year, if you believe the earnings this stock is cheap. >> we are peeking through the as and for a.i. and nvidia trillion dollar company, i worry that any

small could be a big hit to the stock. >> step in and settle the. >> i like letting the market tell me what to do what worries me nvidia the last two quarters have the great earnings, hit $500 and can't get through that makes me think the market is worried about something, could be worried about competition. >> i'm glad you brought up competition, there is something that the market misses when it comes to nvidia this is more than just the maker of chips they created an entire a.i. ecosystem, software developers have been writing on top of their software code for the a.i. chips. i want to tell people i know the name. >> is very impressive they have been doing this for ten years they cannot take the stuff and move to any other competitive a.i. chip there is moved to room to run. >> i might think this is maybe overhyped, what is the other place maybe i want exposure to a.i. >> are reported take him in his package this week and barron's and identifies two other names one is supermicro they make the

custom high-end a.i. servers that nvidia chips go into, the other is an virgo holdings they make cooling systems for a.i., interestingly a.i. servers run five times hotter than traditional computing servers. >> can you tell me a little bit more about what's so special about the supermicro servers it is a crowded sector. >> servers are commoditized you have a lot of players in it, i think the way to think about is supermicro very customized high-end servers is like buying a custom suit versus something off iraq. >> to have super in the name they had to be pretty good. >> the other big a.i. beside nvidia is microsoft near a record high in a record evaluation for the last ten years, what do you think of it now. >> i think there is more reason where analyst and wall street is underestimating the real game changing opportunity that is a.i. i will point to one thing specifically with microsoft selling their copilot software

into their existing products mostly off of 365 the products everyone uses hundreds of millions of users, the copilots will make it easier to write e-mails and on powerpoint and are charging $30 a seat on month for that. the next big move for microsoft will be the next quarterly report where they tell us how many people signed up in any significant number will have the stock screaming. >> with all the genre around openai is microsoft going to eventually buy it. >> is a good question i don't have any secret knowledge. they invested 13 billion and they own 49%. and they're already getting a great relationship with them, they're partnering with them i don't see reason why microsoft would step up and spend 90 - $100 billion to get openai. >> looking at the regulation side there is talk of a.i. regulation coming from new york does that help or hurt the industry. >> europe is considering the first comprehensive a.i.

legislation. it could happen soon. interestingly as is often the case with real regulation to preserve the status quo. i think there is a reason the amazon and google and microsoft are not pushing back hard against the regulation because it could help them in the long run. >> nvidia ceo made a comment that a.i. will make computers competitive with human intelligence in five years, what does that mean in which humans. >> i know exactly what this means he needs to come up with new material. >> i was afraid of that, thank you. the number one secret to charlie munger secre liberty mutual customized my car insurance and i saved hundreds. with the money i saved, i started a dog walking business. oh. [dog barks] no it's just a bunny! only pay for what you need. ♪liberty. liberty. liberty. liberty.♪ sofi is helping me get my money right to achieve my ambitions. with sofi checking and savings, i pay no account fees, and earn a competitive apy.

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>> andrew, warren buffett's right-hand man monger died at 99 and left a wealth of wisdom. >> it's hard to measure his contributions to berkshire hathaway but they were significant, he was a sounding board and advisor to buffett for more than 60 years there among the most successful business partners ever. berkshire hathaway love to start comments at the annual meeting. he also helped turn on buffett to the benefits of quality cavities like apple in american express and coca-cola. he was a sharp critic of bitcoin they thought they had no societal value whatsoever in a big critic of board diversity, he felt merit alone rather than race and gender should be the key qualification. also given his wealthy live pretty modestly he felt the rich and strain he did not have homes in martha's vineyard, palm beach and aspen. >> no basil super yacht. >> no.

>> what does it mean for brookshire shareholders. he is to be missed but warren buffett shows will not expect it highlights the mortality buffett is 93 right now. >> in the spirit of investing wisdom, let's try to find some big pics, what you have. >> in looking at newmont mining, gold hit an all-time high, mining stocks have been terrible and newmont has been worse than most. the thing you should have some catch up, the stocking 9% this because gold went on a run but it's still down 12% in 2023. i think as gold continues to make his way higher, you will see newmont close a lot of the gap. >> i'm taking a lot and just look at rpm international. it's one of the companies that you probably never heard of but you're probably in contact every day to make paint coding sealants and is also a dividend player are they successfully dividend for 50 years in a row if you invested a thousand dollars 50 years ago one point to million dollars today compared to the same thousand

dollars getting to 178,000 and the s&p 500, solid dividend play in a name you might not be familiar with. >> i know they make rest oleum. if you have rest you can just pray that on, i'm not a chemist. great ideas, thank you. to read more check out this week's edition at barron's.com, don't forget to follow us on x at barron's online. that is all for us, see you next week on "barron's roundtable". ♪ >> from the fox studio in new york city, this is "maria bartiromo wall street". >> happy weekend to all, welcome to the program that analyzes the week that was in helps position you for the week ahead. i am maria b