will stall out, but decent today through friday see what happens with bank earnings. and a lot of fed speak. >> still to come and we'll be here to cover that. mike r, thanks. sleep well. see you early tomorrow. that's it for closing bell. >> "fast money" begins right now. cnbc's breaking coverage of the market hitting new highs continues. traders on the desk are -- tonight on "fast money," the man sent to buy the brexit bottom is back. he'll tell us where he sees value now. plus, forget stock, bank of america says gold is going to 1500 bucks ahead of commodity research will be here to explain and later, is twitter's only hope donald trump? a surprising take, but first, breaking news. s&p 500 closing at a record high and it could be the most improbable and surprising rallies of all time. throughout it all, it's been

so-called safe sectors like utilities and staples that have led the way. the question now is do you stick with defense or start playing offense and position your portfolio for growth. >> it's surprising for some. been surprising for me. timmy and pete would say otherwise. i don't think it surprised them that much. i don't think you have to change your game plan. some of the things we've been talking about for a while. gold still works. had a te sent day today ch should have been down. tlt still works. sold off today. i know people say maybe this is a turn in the bond market. but i think you want to stay long the bond market and defense stocks, not defensive stocks. names like lockheed martin, who made comments today about the sort of global environment we currently find ourselves in. i think all these defense stocks work as well. in terms of the broader market, you've heard a lot of people talking about the potential for an outside year to the upside in the s&p. b i don't want to get too wonky, we're still in july. there's a lot of real estate

left in the year. >> i think we asked those questions because a lot of people are wondering if they should pay up. ek get industrials, trading at a current pe that is cheaper than the s&p 500. >> of course you should and that's not going to change anytime soon. i don't think today is a day you can do anything different, but if you look and listen to the street, interesting morgan stanley, city, downgraded bonds today. indicateded we've seen a trough for good that this is a pause in the road. so there are some folks out there saying look, there was an overreaction to brexit. there was certainly this run for yield and in this sense, i think you could fade a couple. in fact, i took profits in altria and reynolds america. i trimmed these back to positions that were probably more in line with where i put them on. i think what has changed in the last 24, 72 hours, the payroll number without the fed and a

world where the boj is is more in the game now that we had this big election for abe. those are reasons why i think the market behaves differently now. so it's fot as it was yesterday. >> listen, i'm playing offense but in a different way. by taking profits on these thins. we're at one of the longest bull markets in history. we know valuations are stretched. maybe not on the industrials. the economic picture isn't that much better than it has been all year. we had one possibly outlayer in the employment report. to me, the risk to buying stocks at all time highs is just not there. >> we've had all time high moments since 2009. >> again, we focus on the s&p 500. there's plenty of places to buy. you can buy gold. i would stick with bonds. i bought dxj. that's down 20%. >> this has been the most unloved rally and the second longest of all time. >> 6% this year. >> this market though for the last two, three year, six years -- >> we're trading today.

>> trading day-to-day and overtrading has been a big problem. >> in an environment where volatility has been showing these bouts of real breakout. in fact if anything, volatility is cheap. that's one thing you should be doing today. >> that's how you stay in the market. >> the fact that volatility at 13, that's when you want to be p buying. i think on the sell off, the opportunities were created for all of us. where volatility got just about to 27. here we are at 13, but as the market was down 300, 400 points, volatility was come doung with that. that was a great sign. gave you the idea that people were finally willing to put their money in front of the market at that point in time. we're talk about the monday following the brexit. so, really interesting to see the way volatility has traded there. it buys protection. allows you to be places. i think the places youth wand to pile in your money, i don't

necessarily agree you can still be buying some of those leerds that we've had. utility, that feels like it's getting awfully rich along can telecoms, but why not be this the tech games. intel, cisco, oracle, microsoft. >> didn't have a potential for a strong dollar and no international dprout. >> you could have slow international growth, but you see these companies that are reshipting what they're doing and you look at the valuation so they're not overly stretched. along the way with incredible balance sheets that gives them the capability to do what they want. >> did you buy anything in. >> not today. today is a day that's a little scary, but but a payday when you look and to me, there's coup of charts that are the most important ones out there. the 100 daily overlawing the 200. that's a move to the upside, small cap stock, we saw what they did on friday.

the fed out of the way and a lot of these risks out of the way then emerging markets. you have these head and shoulder bottom, this is for people watching this show for the first time. set ups on charts for things sold off, had bottomed a couple of times and are now springing to the upside, there's very interesting charts around the world and again as brian said, you don't have to invest here if you don't like it. in fact, i also think that japan is positioned for at least outperformance in the next few weeks. >> to me, that's the single best trade. either to be short big japanese yen what you can do e trtf, ycs be long japanese stocks an short the yen through an etf called dxj. to me, it's down on the year. we have massive stimulus coming there. you're going to get the currency tail wind. so that's i'd rather put cash than trying to buy a market at all time highs after a record long run. >> so huge paper in the -- last friday, hundreds of thousands.

of single strike option in the spiders were being bought, so you can see how the ormss market, people love leverage and they're getting these moves that happen so fast, they're able to take off trades. not in two weeks but in a week or two days. >> cisco rell quick, pete is right. 12.5 times, 3.5% dividend. the last time we talked about cisco was in june u. 29.5 billion a level that failed last year. if you look about a month, month and a half ago, it did stop there. traded down to 27 and change. you ask yourself the question, will it fail now the fourth time in typically, that's not the case. typically, it blows through, so cisco through 30 bucks which has been a resistance level for a while could get interesting. >> and a lot of huge buyers looking for the breakout and

stocks like ge just to add another name. >> would you rather here -- >> it's a game we play. >> great game. >> cisco or clorox. embed nd this question, do you stick what's work wg the markets up record highs or rotate into something that hasn't been working, but would. >> for the reasons these guys are talking about, some of these name, intel, cisco look interesting. clorox is largely a one trick pony. those names are dpoipg to continue to trade expensive. brian says i don't want to bottom the market at all time highs. i think this is a case where you can't just say hey, the market's at all time highs. you have a case where you can make the claim the s&p is now technically caught up and it's a very powerful place where there's a lot of cash on the sidelines that needs to get back into this market. >> clorox trades twice the valuation of cisco, so if we're

playing the game -- >> yes, we are. zpl cisco. >> 2.27. >> no. that's fine. stick with stocks here. when the world was coming undone post brexit, one of wall street's biggest bulls join eeds with a clear message. keep buying stocks. >> we're definitely leaning cyclicly and we want to pick up these stocks certainly on the sell off and it hasn't been that huge yet. i think we're probably going to have an opportunity to buy them. >> now, following that call, the s&p has climbed over 5% since the lows. joining us to discuss where he sees values, scott brand, wells fargo investment institute. what do you do now with markets at record highs? >> we're thinking our target range for the end of the year is 2190 to 2290 and the s&p 500. we're up here, traded at new highs today. wubt a lot of fl low through or volume today.

there could be a little back and forth here, but we definitely want our clients in here putting excess funds to work, which if you know, our retail clients are like every other retail client, they're underinvested in stocks and have too much cash. >> do you stick with what's working within the markets, within the sectors, those defensive sort of names that have the high yield, but may have the higher valuation compared to the s&p 500 more broadly or go to some of the other sectors that haven't done as well this year. trade at lower valuation, but have a dividend eilidh yooeld like the tech sector or industrials. >> we do not want to be yoef weight from here. telecom, staples or eutilities. i think on a relative basis going forward, those things are going to fade. what our work shows, the pattern last week was what we think it's going to be over the course of the year. the best four performers were technology, industrials, health care and a consumer

discretionary sector. those are the four that were overweight. that we think on a relative basis are going to outperform the rest of the market. really over the balance of the year and probably into 2017. >> i probably agree with you on all that, but where do you get the call on industrials in a world where again, these guys are reporting largely numbers in business. there isn't that global output to take a lot of these stocks higher. >> they're not terribly cheap, but at least based on the work we're doing, here in the states, you're going to see some better orders. if you look at some of underlying orders data, it's gotten better and i think that you're going to see some stability and the international end of things. and that's really why industrials have been outperforming since july of 2015, so, it's all about anticipation. you know, i know you guys are going to be talking a lot about earnings season, but i would argue really the markets hasn't been thinking about first and second quarter earnings for

months and months. they're focused on the second half of this year, 2017, they're focused on in all likelihood and we agree, you're going to see better gdp growth and better earnings growth. the market's looking far, far ahead here and i think that's the right thing to do. >> great to speak with you. thank you. >> thanks. >> you know, what's interesting, there have been a few calls here for 2400 even at these record highs. we had kate stockton saying 2400 according to our technical analysis. craig johnson saying 2350 or so. according to his analysis and then bank of america merrill lynch saying at all time highs, usually 250 days after, 15% increase, which would be about 2400. what do you make of this? does this make your nervous? people moving to the bull side here. >> the one thing, what i will say about scott is he had the

guts to sit there in the mid of that sell off and say buy. so people today saying know we feel comfortable saying buy. sure. >> i think this earnings quarter, scott made a reference to the people i've been looking to, people have an incredible tail wind going into this earnings season where the comps are interesting and low. i think the dollar could be a tail wind. >> pete. >> you know, it's just really difficult to see how the market gets there. i mean, i look at this thing and i was one of the guys out there as well because i saw the paper coming in and the way volatility was moving around, that there were opportunities. i think there were stocks being sold off because of brexit and the talk about that. but to sit here today and talk about 2400 is is difficult for me because i understand all the head winds of what's going on in europe and everywhere else. i find it very, very difficult to grasp on to. i think wee going to see pullbacks along the way. not all the way back, but some pullbacks for sure. >> coming up, stocks are at record highs, but a top

technician says it's the worst investment you could have made this year. what's he talking about? he'll be here to explain, plus, tesla's ceo hinting at a secret master plan. and get this, we know what it is. actually, that's not true, wu we have some good guesses and bank of america says we are just lurnlging from one prices to another and you won't believe how thigh they think gold is going to go. the man behind a bold call is here. more "fast money" straight ahead. ♪

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don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. welcome back. tesla kicking off top trades. tesla -- not notifying shareholder of the fatal crash. of course, this follows elon musk's cryptic tweet yesterday. whe wrote quote working on top secret tesla master plan part two. hoping to pubbish later this week. we have to assume u this is not an sec investigation. we should note that the stock tesla shares are down just about 1% in the afterhours, so not a huge reaction considering the 4% increase. >> so we talked about this in the commercial. what we were talking about is that the if you look at the other auto companies that use that as kind of a template for what could happen and i'm

talking the sec investigation here, it appears that what tesla did may not be necessarily a violation. they handled it just like everybody else did, so it might be hard, at least investors are thinking it might be hard to single them out. now, when it comes to the master plan, this was my lottery ticket, whatever we did on friday. because that's what tesla is in my view. what elon musk has talked about is that they are trying to revolutionize the electric grid. using less coal and oil in providing electric for the u.s. and that's what tesla's going to be. they're going to try to revolutionize is. to me, that's the master plan. i would tell elon, it's not so much top secret anymore now that it's out dl. >> just unknown. not top secret. >> i guess that's a fair point. >> i keep trying to come up with a bearish, other than the obvious valuation and why the stock could go down and it continues to hold in there. you have to ask yourself, why is that the case. one of the reasons, the hair holders of this stock are so

sticky. >> they're believers. >> very much so. so who is the incremental seller that's going to knock it down through the that 180 level? >> like bezos and amazon. >> i understand every fair argument you can make except that nobody seems to want to sell the stock at these levels. >> you had actual negative catalysts. the solar city deal. two autopilot crashes. a delivery miss. sec investigation and we're still not erasing the gains we saw today. >> when you look at the stock, it's holding above, crossed around 217 and that's something we've always talked about. i think the desk has said look, these averaging seem to hold up well until they don't, but they've been holding up nicely. you look at the 50 and 200 day moving average. we talk about the vix all the time. it's the s&p 500, the spider.

when you look at tesla, across the board in every single month, that volatility is explodinging to the upside relative to where it's been over the last 30 day, so there is concern in terms of what people think of this stock and where it could go. so, the movement expected right now in a tesla is massive. >> i just think there's still so much to be questioned about the world going to the vehicle. the internal combustion is not dead. the fact these guys have a master plan which is probably as simple as we know, which is why they're buying solar city. and i get it. that's you know, that's well in the price. at least at these levels, so to me, it's not that it's no a great technology. i do get a little worried about the capital structure and i think they're not hitting their deliveries. i think the stock is a very expensive awe toy company. >> coming up, check out shares of alcoa. the ceo on what drove the quarter's earning season gets underway m you're watching "fast money" on cnbc, first in

business worldwide. here's what else coming up. >> fellow americans, this man could be your next president. >> i'm going to bomb the -- out of them. the it's true. i don't care. >> but whatever you think of the donald, he very well could be twitter's savior. we'll explain. plus, believe it or not. even at record highs, stocks were the worst investment you could have made this year. we're talking about how equities have trailed every major asset class this year and what could that mean for your money when "fast money" returns.

twitter shares 2% today

after bob peck downgraded the stock between neutral and a buy. here's what he had to say about it today. >> we actually looked at the street estimates. i think a lot of people feel the numbers are sandbagged for the year. when we tore them apart, a rebound in 3q, olympic, the political side of things. if the street has it right -- >> peck mentioning twitter's live streaming. just this morning, the company announced a partnership with cbs news to stream the republican and democratic convention, raising the questions will trump be able to save twitter. pete? >> trump would be somebody who could be a cat llist, but bob p he's been for a long time, facebook and everything else, but twitter has been difficult for bob. >> upgraded in september. zpl the stock is down significa significantly. i mised on this several times because i felt like they were going to be able to get something that would be able to reignite everything that bob was

talking about. hasn't been able to produce anything. all those logged off users, they haven't been able to get that back either, so, this is a company that just has not been able to execute properly so far and inn that's been the huge problem here. will the nfl be a boost for them? will trump be a boost? maybe. there are all kind of ifs right now. we're not getting any answers and they have not been able to change anything materially for any of us to say this company's ready to go. >> i think where bob has been leaning for at least a couple of months has been this whole element of the competition, they've lost maybe a window that they're not going to get back, so snap chat and some co competitors are really stealing their lunch. this whole area of cure rating news, so now, we're talking about a political vertical. finance vertical. sports vertical. this makes sense to me. how they're going to monotize it, i don't know, but these are the new products. less technology and more getting at their core media presence. >> you know what the number one catalyst could have been? a takeover. which bob peck says the probably

going to happen eventually, but not likely to happen in 2016. right and -- new boards, so there's no willingness with all these new people there so say let's sell the company. >> i think pete hit the nail on the head. we love bob peck. >> of course. >> sometimes, you get really off sized with certain stock. just can't get it right for whatever reason. it feel as though that's what's going on with twitter. might be dead right. might go back down to 13.5, 14. >> going neutral, guys. >> i agree. but i think start to, i'm thinking they're starting to do the right things in order to get them, get back on the rails and i think it's still worth being plain in the long side. >> dwold is up near hi 30% and bank of america thinks it has another 10% to go. the man behind the call joins us and what is wrong with this rally? a shocking look at why buy k stocks could have been the worst decision you made this year. that's later. your insurance company

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welcome back. a big day on wall street. s&p 500 closing at a record high. the dow hit iting a 12 movie moh high. crossed above 5,000 for the first time since december 31st. bank of america is doubling down on gold. we're sitting down with the man who's calling for a 10% rally. plus, could earnings derail the rally? we've got the three names that traders say could shake up the market, but first, we start with the markets because now that the s&p 500 has officially set a new all time high, we thought we should take a look at where major asset classes were trading last time stocks were at these levels. breaking it down is a man who is always high and never low. dominic chu. >> nice, melissa. i'm never off, always on, until the break of dawn, so took over a year, yes, to get back here.

still, today's record high looks different than the last time we reached this air. so take a look at some of the big differences of markets then and now. macro. remember when everyone thought interest rates were headed higher? me, too. back then, ten-year treasury yields were closer to 2.25%. fast forward, down to 1.4% or there abouts. what about gold? then just over 120 o bucks an ounce. today, around 1360. how about those oil prices? we're way up from the lows in crude, but it was $59 for west texas intermediate then and now, closer to $45 a barrel. apple in particular. apple had just hit record highs. weeks before the last s&p 500 record intraday. on may 20th last year, apple shares closer to around $130. meaning a $750 billion market

cap company and today, it's around $97 worth closer to 533 billion. still, the biggest, but a far cry away. a little bit of the same and different. back to you guys. >> thank you. >> so, is the recent rally the ultimate breakout or fakeout? carter broxton worth is at the smart board breaking it down. >> hi, there. i have a bunch of chart, but i think the issue here is that we know on an absolute basis, one has nothing to show for having been in the market now since may of a year ago. but on a risk adjusted basis, one has a lot to show. almost a near crisis in terms of the drawdowns endured for no return, so you can imply things like a training ratio, reward for volatility measure, but equities are no bt better just because thai up today. key assets. so, it's sort of a then and now, before and after. you've got the tlt up 20%. since may 20.

you've got utilities with half the beat of the market up 17. gold. you could have picked any of these things. you've got real estate. and then you've got the market. now, if you adjust for risk, this is almost the worst performing asset. even perspectively below crude. or apple, because crude has a high beta, so, the issue is just because you make a new high has something changed. people get bullish. but nothing's happened now for one, two, and in fact, a very long time on a risk adjusted basis. watch these next few charts. this is total return of bonds versus stocks. you get the dividend reinvested. boing back to the high of may 15th, which we eclipsed today and this versus that, but again, that's just b absolute. if you adjust for the risk, the drawdowns endured by the orange line, it's a multiple higher in

terms of having been in bonds. now, let's pull it back. just because yields have gone lower. this goes back ten years, so the total return of just being in the bond market versus the stock market, no results and yet again, all the volatility if you adjust for the risk, it's not parody at all. the blue line is killing the orange line. back further. this goes back for 20 years. and this really tells the tale. this is fixed income. which has in principle, no risk. if you will. risk free rate of return and this is equities and asset class. another way to look at this, the s&p adjusted for inflation has still not taken out his 2000 high. people are bullish. i'm sure they are. probably bearish months ago. you have to have a view and stick with it and know what your risk reward is. by my work, this is not ideal. so, yes, we stuck our head up there. did anything change? we would have to go meaningfully

higher to compensate for the risk that's been associated with owning equities. and there's always the risk that do that or it's that. or and this is what the bulls are hoping, that somehow, we're going ton a new bull faze that's meaningful. maybe so, but i doit. >> for people that no one's expecting to not have any risk in the equity market. what are you supposed to do? get out of cash or go through a market that's going to go through a volatile period. >> you're supposed to pick stocks. what you do on the show and what clients are trying to do through adviser advisers, the asset class, notice this is a bullish moment. is just mathematically not right. what's one supposed to do is find the right stocks. isn't that the idea? is getting underway at&t because maybe it stretched. >> the point is that the market

has created an enormous opportunity for investors. not just traders. where the market has traded and comparing it to the fixed income market, we're in a five-decade rally. not just you know, as a function of central banks. this has been a period where bonds have outperformed for a long time. i look at the way that market has traded over the last six months, especially. and say that if investors tried to be saying hey, you know what, this is too crazy of a market, let me get out of the way, they've lost more money than being in the market. >> not at all. they've had no results, yet endured three draw downs. if one is a passive investor, which many are, have you been rewarded for the risk you've embraced? >> no. >> i think the point, i think you guys agreed on this in that being invested in the overall market has not had results. carter's point is that you invest in individual stocks and

you can have better results than that even though you're taking on the risk. >> i get what he's saying 100%. i understand what tim's saying. this comes down to one of bk's points. i've incorrectly thought yields going down means stocks have to go down. clearly, that's not the case. if the bond market rolls over and yields start going dramatically higher, does that mean then stocks follow to the downside? i don't know the answer to that. >> my answer would be yes to that. if we look at what carter just put up there, if stocks can't go anywhere with yields at all time low and the reason why people are buying stocks in general, is because there is no alternative and for the yield, what happens when it reverses? i think the stock market's going to reverse, so that, to me again goes to the risk reward of owning stocks at this level is just not there. >> that's whoo i love reducing the risk. in other words, in my world, the it's the options market. you can do that through leverage of using that to buy calls or

buying stock and then buying points to protection yours at times like this. it gives you that opportunity to be able to go through some of those butches, these 10% dips and mooumts that you can cut some of that out and breathe and then actually maybe even go in and start to buy more. accumulate more if you're not putting yourself into a position where you're just panicked and you can't breathe. >> cart er was saying this. it's about picking stocks. if you look at airlines, they're trading as if we are in a recession. people have been calling for a recession, it hasn't happened. that's why i don't think you can overtrade this market. >> coming up, alcoa officially kicking off earnings season. that stock up 3%. we'll hear from the ceo and what drove the quarter. plus, gold, to 1500? we're sitting down with the man and that bullish call when we return.

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welcome back. let's get o susan. >> earnings and revenue dropping from a year ago. that was expected, but not as bad and alum numb prices a big drag. revenue was lifted on the other end by acquisitions and organic

growth. alcoa is split is on track in the back half of this year. >> predict for the second half, a growth of 6% and we see in 2017, a double digit growth and when you look at the fundamentals, they are very, very strong. >> that was the sound that i wanted to play on the high e margin value. when that split happens in the back half of this year because analysts i spoke to say aerospace is the key driver for alcoa. especially as we head both boeing and airbus lifting targets for next year, so cost line as you heard there, he's reaffirming the demand for the business going forward and looking for duouble digit gains in 2017. let's lipsen in to the split because everybody wants to know when that's going to happen. >> our focus is really on all those things that we can contour ourselves. axtivity, cash.

innovation. contracts. we opened our medals plant which is geared to cater toward the 3rks-d printing market and we're on target to separate the company as well as future alcoa corporation. by the end of the year. >> so that's the money quote right there. it's going the happen in the back of 2016. i also want to bring up autos because it's helping to drive alcoa's business. cline field was pretty upbeat on china because they're selling a lot of big cars like suvs. he says sales up there were up 37% in the quarter, believe it or not. melissa, back to you. >> thank you, susan lee. tim, you stick with this trade. >> it's a stock that has catalyst. if you think about the spin off, you don't spin off unless you think there's more value and should be trading higher. there's m&a on the upside that could be happening in the mining

space. i think you're neutral on valuations. nothing sexy here. >> we are going to, if you want to get into the industrials on the idea you're going to have a global, fiscal stimulus, then alcoa might be yur play. it's not at all time highs, so bk likes that type of thing. >> do you go into terribles? >> i'm no alcoa bull. this interview, you could add the same interview to the last six years. >> i knew you were going to say that. >> bullish. always, always. >> looks happy. >> tacking about an auto tri over the last five years on record pace. aerospace defense, through the roof. stock market, doubling, tripling. alcoa, can't get out of its own way. got to ask yourself what's the problem with alcoa. with that said, i think you can trade up to 12 bucks. >> 20% upside. >> there you go. >> see the stock trade up to 12.

earnings beat, revenue beat. >> he was quite a prelude to the call. >> could lead up to that whole thing. >> medals here. >> popcorn and soda. all right, gold. safe haven for investors post brexit, but one of wall street's largest firms believes the bull run is just getting started. the head of commodities for bank of america merrill lynch is here with us. thanks for joining us. you say gold at $1500 an ounce. what drives it? what are the catalysts? >> so, gold's basically driven by three asset ts. one is commodities, two is is fx and three, interest rates. that's generally with most gold. what's been happening is in the last few months, rates have become the key catalyst. it's no longer looking at commodities that much. it's looking less and less to

fx bxy and fully focused on rates and rates have been coming down pretty hard and that's leading more and more people into gold. that's the story. >> so, in terms of getting gold to where it is now to 1500, what sort of further drop in rates do we fwheed knead to see? >> remember, that outside the u.s., if you look ag-10, rates are pretty low. we've seen rates coming down in japan, too. across europe. in the uk. brexit created a big moving rate there is as well. and eventually, i think it's going to get to a u.s. as well. and that's going to help gold push higher. there's a number of reasons related to the risk framework earlier. that also suggest that gold will become more and more interesting. there's a lot of players out there. what do you do? what do you buy? and how do you reduce ris income your portfolio? people are going to mind more

and more that gold's the right answer. >> i've never thought it was a commodity. japan went negative yield. however many months ago. they're going to throw more gasoline on this fire. is that the reason gold is in play? >> that's the reason. the reason is remember, as a rates grow more negative on near dated -- investors will buy longer and longer, so that basically forces the entire yield curve down and the risk is that you're capturing too much convexity. as that bond yield curve flattens, so remember, now here in europe, for example, you have negative yields all the way ten years. what is the expected return of that bond? you think it's going to go up? how, right? the bond's yield negative. your expected payout is negative and volatility's going to pick up because you're moving farther out as you're yield goes more

negative in the short-term with the curve, so that's whether gold comes in. it acts as a hedge. does it make sense? >> little bit. >> in a world in which gold goes to 1500, you're calling for silver to go to $30 or maybe even overshoot to that, where did the other sort of more cyclicly oriented commodities go? what does copper do in that sort of environment? >> here's the story. i think it depends a little bit on how much money they send to emerging markets. we saw it back in february that a move to negative rates in japan was helpful for an emerging world. we've had a phenomenal rally that people don't talk much about. russian bonds, brazilian bonds and local currency. so if money keeps on flowing to emerging markets and i think this is the key, following brexit, there's no indication that money isn't flow there. we actually are still bullish on oil for next year.

we were talking about that a couple of weeks ago and i think we'll see higher industrial metals prices. what we need to see is emerging markets continuing to get money and again, that negative rate outlook in japan and europe is key to that trade. >> okay. thanks for come by. what do you think of these forecast sns. >> i'm long gold and silver, so i agree 100%. swhomewhat of a confirmation. i think there's something else, we talked about commodities going higher. right now, interest rates are driving it. if you're in switzerland, they take money out of your account. that's what negative rates are. but people are going to start loo buying those commodities and that could create this feedback with gold as inflation expeck tases increase with commodities, people are going to flock to gold. >> commodity, you're going higher. if you look at the crb again, talked about em. 35 on em. a break that's been trading up there. it's going through there this time. i would get long.

>> real quick, francisco was talking about oil, gold and all these various things. how about something like a free port -- that was left for dead by me and other people. by me and other people. pretty spresing

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the mixeded martial arts league has become a global phenomenon. also in part because of this. ♪ yep. he's the best around or at least in his mind. in a former life, he was a former ufc champion fighter. just crushing the competition as you see here in this clip. >> look at that six pack. >> why you smiling so much? >> all right. >> very flattering and more than i deseve. >> is is it? >> take it. >> we were talking about met dahls, don't leave out some other ones. mt. huge paper for the last week and a half or so. this stock's moved, but i think it's going hire. >> the yields and emerging market, look at brazil. tsu. one of the big teleco operators.

just beating the tar out of that guy. >> beakers. >> listen, i would go to japan, right? you've got a currency tail wind and stimulus. >> steve. >> thanlgs for watching. see you back here tomorrow at 5 a:00. "mad money" starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to mad money. welcome to cray america. other people want to make friends. i just want want you to make money. call me at 1-800-743-cnbc or tweet me@jimcramer. new highs, new all-time