job but she does have a lot of experience running a domestic company that operated internationally and she grew that international business, so would actually be a pretty qualified candidate. the tradition is the u.s. treasury department picks world bank president, europeans pick the imf. emerging markets are not that cool with that. >> that does it for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. tonight the man who moves markets is here. marko kolanovic says you won't believe how high he thinks stocks will go. uber, lyft, pinterest and airbnb get ready will the government derail this ipo stream goldman sachs surging 10%, bank of america surging 8%,

taking the whole sector higher after better than expected earnings the banking index is up a whopping 11% this year after being one of the worst performing sectors last year, is 2019 turning out to be the year of the banks guy? >> i thought they said my year they were going to play al stewart song, "year of the cat" and they didn't play it. i was so excited no is the answer to your question, melissa. we have to welcome our guest. >> she did in the open. >> this is a formal now. >> a formal welcome. >> kudos to dan nathan, by the way. he said the setup for a lot of these banks was probably positive a lot of them troughed earnings weren't going to be great and maybe we'd see a rally. that's what we've seen in terms of goldman sachs, there was only one that made a difference and that was tangible book went from 186 to 197. to move higher today is just the market recalibrating where that move was and where the stock is now. can they continue to rally yes. but most of these banks, xlf,

goldman sachs, are still in a pretty steep downtrend from the beginning of last year. >> just to be clear, my view -- that was january 2nd, january 3rd, before the banks started to get going. as we got a week into the year, i did not like the strength heading into the earnings. they had literally gone down inspect a straight line, 20, 25%. if you look at all the charts, they're still in pretty significant downtrends i'd highlight the kre, the regional bank index, was down more sharply than the larger banks and it's still in a big, big downtrendin if you're buying here, you're doing it wrong you had to buy them when it looked really ugly. >> goldman sachs, up 9%, 10% action wreaks of positioning to me sell the banks these are low quality beats.

there's nothing to be excited about. >> can i hone in on that point because i'm going to bring up a phrase that we always refer to on the desk. >> i like phrases. >> bad news, good price action isn't that what we saw during bank earnings season so far? as you mentioned, low quality beats. they're misses here and there. >> these are truly positioning issues because the market was so beaten up going into the new year that it's just a reflex trade. >> hold on, guys, we understand british prime minister theresa may is making a statement. let's listen in. >> want us to get on with delivering brexit and also address the other important issues they care about but the deal which i have worked to agree with the european union was rejected by mps and by a large margin i believe it is my duty to deliver on the british people's instruction to leave the european union, and i intend to do so. so now mps have made clear what they don't want.

we must all work constructively together to set out what parliament does want that's why i'm inviting mps from all parties to come together to find a way forward, one that both delivers on the referendum and can command the support of parliament this is now the time to put self-interest aside. i have just held constructive meetings with the leader of the liberal democrats and the westminster leaders of the smp from tomorrow meetings will be taking place between senior government representatives, including myself and groups of mps who represent the widest possible range of views from across parliament, including our confidence and supply partners, the democratic unionist party. i am disappointed that the leader of the labor party has not so far chosen to take part, but our door remains open.

it will not be an easy task, but mps know they have a duty to act in the national interest, reach a consensus, and get this done in a historic vote in 2016, the country decided to leave the eu. in 2017, 80% of people voted for parties that stood on manifestos promising to respect that result now over two and a half years later, it's time for us to come together, put the national interest first, and deliver on the referendum >> we've been listening to prime minister theresa may making a statement in front of 10 downing, this after winning a no-confidence vote earlier in the day by a very, very narrow margin, 325-302, indicating that she will work with all parties to come up with a plan to move forward on what the country

decided two years ago, which was to leave the european union. the longer this drags out, what does this mean for the markets there are a lot more unknowns. this is not just a continued drag on the uk but eu. >> here's the problem. yesterday we got a glimpse of it when you start to hear about draghi getting dovish. powell is getting a little more dovish if that's the case, if there's this global synchronized dovish feel, you would think the markets move higher. but i'm worried that it's going to be the opposite this time the markets are going to be skittish, worried about why everyone is so afraid. >> it seems like both sides are digging their heels in right now. the eu has to be strict about this if they're not strict about it, then all the other countries will start walking all over them so i think you're just going to see more volatility until there finally is a deal and we'll see what happens. >> in terms of central banks, though, could this put the fed more definitively on the

sidelines for 2019 >> i hope not but probably will. i happen to think mr. powell saying -- i think to your point he read from basically a script and said what the market wanted to hear. oo i think in the back of his head he's going to do what he thinks is right that might be bad for markets but good in the long run i don't think it will be make central banks more dovish but that's probably my hope more than my feel. let's bring in the man who moves the markets, marko kolanovic. marko, great to have you back. great to see you, happy new year so the firm stand is 3100 by year ending. >> it's actually 3,000. >> 3,000 by year ending. >> yeah. >> so what brings us there and what do you think has changed? towards the end of last year in the fall, you were bullish going into year endi and it did not pa out. >> what happened in the q4 was a series of shocks that were

delivered to the market. first in october we had the derisking of a system manager. things stabilized in november and we had the g-20 progress and some progress also with the fed, which we thought should be enough actually to push the market higher. what did happen in december was really a retail mutual fund liquidation, unprecedented, so retail pulled the plug in an environment where there was no liquidity so ugly price action in the first three weeks of december. really what saved the funds in december was buying in the last week if you look at december on its own, it was a retail investor first yanking money out of the market and pension funds plowing in which pushed us back to 7%, 8% so december was really about the flows. flows and positioning and complete collapse in liquidity liquidity is still very thin

so we did bounce back now a little bit, but we do point that positioning is still very, very low. so if you look at the equity hedge funds, their beta is less than 10 percentile historically. if you look at some of this volatility, they're the absolute low. so positioning is very low you did have, as i mentioned, some short covering now and even a little bit of a short covering from some of these trend investors, which kind of push us up on a very low volume where we are now at 2600 something, which is a level -- ending of october level and early december level so the way we look at this december was really as a liquidity disruption, and market run by flow, we do acknowledge weakening in some data and derating of earnings, but we think price is incorporating that largely at this point so you could have actually data that is maybe not stellar, but stocks that are drifting higher

on account of levering and opportunistic buying. >> marko, let's take it back one year the consensus was we'd have really good growth in 2018 and that was the thing that was going to get every strategist move back up to their 3200 or whatever the average was a year ago. now we've had this reset i say to myself, okay, so now the consensus is global synchronized slowing i'm hard pressed to think what are the catalysts that get us back to the prior highs and above that >> so our base case is there is no recession we did have a slowdown we had a drastic delevering. as a result basically central banks will turn more dovish and put hiking on pause. so we are starting from a very low position, call it clean slate. earnings did grow last year quite substantially, 20 plus percent and we are down 6% so some gap did open. if you look at the small caps, earnings grow 30%, stocks down 20% so you have like a 50%

margin of error. yes, we do recognize slowdown. the one thing that i do worry is europe seems to be slowing up actually more than perhaps we were expecting for china, we do think there's a round of stimulus coming into that economy, and at some point it will start showing up on a positive side. and then again, we are taking a leap of faith that the u.s. is not going to go into recession we do have a slowdown but don't go from 3.5 to negative. we slow somewhere in the low 2s which can grow you earnings. we are adding jobs so the answer to the question is there is this buffer where earnings went and where the stock went so we think there's some room. now a price target, i was never a huge fan of price target i think there's a probability we go there and probability we go there, and i still have have in the back of my mind some probability we don't go much lower. >> what is that probability in the back of your mindin

>> we have inhouse model that shows about 35%. there's economic base model, a market base model, fed model shows 25 so it's kind of i would say my feeling would be 25%. >> what are you expecting for earnings growth this year? >> so we clearly do want to see a little bit of how the earnings pans out but mid to single high digits. >> and multiple expansion as well >> well, at least we think some stabilization of multiple or not contraction. depends a bit on the fed and the economy. >> the volatility that we saw in the last quarter of the year, will we see that again this year or is that a thing of the past >> we will see more frequently these type off episodes. i have been writing about that the last five years. so i think this type of liquidity seizures will see them but they typically happen from the higher points of leverage. you relever quickly and then

liquidity goes up. then people sell so you have these other events so i think we will see them but we just saw three or four, like october, december, you know, so i think we could be in for a little bit of relevering, reloading phase. so that's why i think basically positioning is something that i think can drive market higher despite the consensus, which is very bad. >> we're running out of time, marko, but in the era of machine trading, i'm not trying to fault anybody or anything for volatility, but in this day and age where you can get in and out of positions much faster than in the past, these bouts of volatility may not be surprising in fact them occurring more frequently seems like that would have to be the norm at this point. you go through cycles much faster, right? >> you do. we used to have one every two or three years and now we have two or three every year. unfortunately, that might be a norm given the sort of structure of liquidity, electronic liquidity that can quickly pull

liquidity back or provide liq d liquidi liquidity. it could be option hedging programs, it could be insurance industry, but a lot of things do go on auto pilot. >> marko, thank you. always good to see you marko kolanovic. >> well, to get to 3,000, and marko does a great job and he doesn't like price targets, so i'll give him that if you give s&p earnings about $160, which i think is probably high given what we're seeing, that's a 19 multiple to get to 3,000. i don't know how you get to a 19 forward multiple in the environment we find ourselves in when you bet against this market, you tend to be wrong, but i have a hard time mathematically getting there. >> we have a year-end target of 2850 we get to that by looking at 2020 earnings being right around $180 the multiple expanding a little bit out to about 15.8. so we're a little shy of the 3,000 mark. >> you know what i'm left off with you have europe, you have japan and china teetering on what

could be a recession you have powell, even if he stops and takes the powell pause, qt still running off. so you have a tightening cycle, global slowdown, recessions rampant all around the world, lower markets. coming p, csx down after hours but the transports are on track for their best january in six years. one top technician says they have run too far too fast. it's going to be a huge yore for ipos but it's just a waiting game as the government shutdown continues. one company just spent $22 billion to take on square, but can it compete with the payment details? we have all the details. much more "fast" after this. sto, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer.

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welcome back to "fast money. shares of csx moving lower the railroad company reporting better than expected quarterly earnings and revenue and authorizing a buyback. the dow transports rallying 5% this month tracking for its best january in six years the stocks like united, avis, fedex hauling higher so will transports keep on trucking although csx is a little wrinkle given this move in the after hours session. >> to talk about the transports, it's a wide swath. if you think about it, we've got bad news out of the cruise lines, out of some of the airlines initially obviously fedex in late december when you think about csx, this is a better read on what's moving around our country, how

the u.s. economy is doing. i don't think that the guidance that they gave was pretty disappointing. >> although there's some that say that railroads aren't indicative of the economy anymore but i think it is a better gauge on what we think the economy is supposed to do. if these guys are really ripping higher, then that's a great sign for the economy. >> so we downgraded railroads on october 30th this is a very capital intensive industry what we see them doing is they are reducing cap ex and taking on a lot of debt what that does is put them in a tough spot in the event that the economy does take a downturn >> what's a better read of the economy in your view, trains or planes >> wow trains or planes >> csx missed on this some metrics. >> i'll play the game with you if our economy is 70% driven by the consumer, then i'd say

planes is a better read-through for the economy. i think i'm taking steve's point on this one, so i'd say planes in terms of csx, the stock has been in a downtrend the last nine months. the bounce you've seen is the bounce we've seen before at 15 times forward earnings i don't think it's all that cheap, i think it rolls over. our next guest says one name is still looking like a buy. j.c. is at the plasma to break it down. what are you looking at? >> transports. what does that mean for the overall market you like to see transports move higher in a bull market and you like to see the relative line of transports to the dow jones industrial confirm that bullish price action unfortunately, we have not seen that if you go back to the beginning of 2018 january, we had the nice rally in the market. however, if you look at the relative line, we actually made a lower high so that is a bearish divergence with price we come back here to the august, september highs, what happened the relative line, again, failed

to make a new high so consequently we rolled over now, what was interesting in november, we actually had a little countertrend move in the market we actually saw some signs of improvement with the relative line however, this january rally is showingzero signs of relative improvement. it actually looks like we're pretty darn close to making a 52-week relative low in the entire transport sector. so that is a giant concern now, if we look at the next chart, u.p.s this was one of those former bellwethers. you want to see u.p.s. doing well let's go back to january we look at january, u.p.s. was making a high and that was positive if you look at the relative performance against the s&p, failed to make a new high so you didn't see that bullish confirmation when the entire market rolled over and started picking up over the months march, april, may, fedex on an absolute basis started to try to participate. but on a relative basis couldn't

get out of the mud we saw it rolled over before the overall market so that gave you a gauge. when the market is down 20% from its highs, we want to be looking at stocks that are rebounding the strongest off the lows the average stock since the december 24th low is up nearly 13%. u.p.s. up 8% so that's 400, 500 basis points of underperformance. u.p.s. is another stock we want to stay away from. melissa, to answer your question, what is better, rails or planes? trains or planes i have one bullish chart here of spirit airlines. i love this longer term base that it's tracing out here we can make the case that this chart is showing you a double bottom here. now, how many stocks actually gapped up 15% during that entire october through december decline? well, this is one of them right here now there's a little resistance here at 65 if we get above 65, i think this

has another $10 upside so keep an eye on it, 65 is a key level. >> j.c., did you say the average stock is up 13% from the december lows? >> from the december 24th lows, the average stock is up 13%, yes. >> that's amazing, that the average stock has made that move j.c., thanks j.c. o'hara. anybody like save? >> steve grasso over there. >> that is a name that -- >> i thought you said the hulk >> that is a name that outperforms and it's kind of a sneaky airlines. everyone forgets about this one. they trade the marquee players this has been flying under radar, has really no effect with the government shutdown for this one. people sort of glide into this one. if you want profitability where if you think the airline will do well, this has higher beta and you get a little more leverage with this one versus the other name. >> do you like any of the

transport names? >> i'm terrified of the airlines in general. >> personally getting on one >> no. actually owning them so tough business to be in fuel costs have come down. you would think that profits could increase but that's not the way it works instead they have to immediately pass all those savings on to the customer because it's such a highly competitive business. so no, not a big fan of the transportation stocks. >> i think the lack of balance in fedex and u.p.s. is troubling. i think we were talking about what does the bank rally mean for the broader markets. i think if you look at the transports and the inability for fedex and u.p.s. to rally, i think that's much more significant than the bounce we've seen in the banks. >> i still cannot wrap my head around the average stock moving 13% from the december lows. >> you're incredulous. >> it's the average move. >> it was so overdone, people were so shocked with it that's there's indiscriminate buying of

all sectors, all space, all names. >> to dan's point, federal express, for example, bottomed at 150 it's 171 now which is percentagewise a decent bounce but fedex topped out at 275 beginning of last year this will be the fourth time you've had a huge move to the downside, bounce, not a new high, downside, bounce, not a new high so the trend is clearly still lower. you have to wonder when fedex starts to roll over again. >> for more on the transports, head over to trading nation@cnbc.com. here's what else is coming up on "fast. >> i imagined that there was such a thing as a unicorn. >> well, michael, there might just be. we'll tell you which of the big ipos this year are ready to take flight plus, the payment stocks are heating up, and there's one player in the space that just made a $20 billion bet it's going to come out on top we will explain.

we have some very sad news to share with you tonight. john vogel, the founder of vanguard has passed away at the age of 89. he was a frequent guest on cnbc. tyler mathisen has a look back at bogle's career. >> indexing always works best, up, down or sideways. >> in 1975, jack bogle started the vanguard group and with it a new way of investing. >> jack was the creator effectively of the index fund. >> index funds, mutual funds whose portfolios match a market barometer like the s&p 500, are

common place today but they were unheard of in the 1970s, much less the early 1950s when bogle wrote his senior thesis at princeton about it. >> i said it should be operated in the most honest, efficient and economical way possible. i had a sentence in my thesis that said mutual funds can make no claim superiority over the market averages. >> his thesis research laid the groundwork for what would become one of the most powerful investing movements of the late 20th century he concluded that active trading mutual fund managers failed as a group to outperform the relevant sg indexes, especially when you subtract fees and expenses. >> anybody can do it for a year. if you can do it for five years and if you can do it for ten years. but over an investment lifetime, there's about a 3% chance that a

money manager can beat the market. >> after princeton he went to work for wellington management for over two decades, eventually becoming ceo he was later terminated for what he called an unwise merger so he started over, putting the indexing concepts from his thesis into practice at vanguard >> investors suddenly found the playing field more level so to a certain extent, in fact to a great extent i would say, he democratize d it. >> that initial fund renamed the vanguard 500 index tracked the s&p 500. skeptics ridiculed it as bogle's folly. by 1990, index investing had taken root the reason bogle turned out to be right in the 15 years ending in january 2017, nine out of ten actively managed large cap mutual funds underperformed

vanguard's 500 index today vanguard has more than 5 trillion under management. >> jack bogle is pretty much like a t-rex in terms of what vanguard is versus a little tiny lizard over here you don't see too many folks anywhere in the world that manage that much money. >> after retiring in 1999, he started a research center on the vanguard campus. there he continued advocating for indexing and buy and hold long-term investing. he called trading stocks a loser's game. >> it comes right out of shakespeare. these moves are like a tale told by an idiot, full of sounding and fury, signifying nothing i think as speculators speculating on what other speculators are speculating on. >> speaking of speculation, few would have bet on vanguard back in 1975, even fewer still would have thought bogle would still be jousting with critics deep into the second decade of the 21st century he had his first heart attack at

age 31 doctors said he wouldn't make it to 40, much less live to 89. he had five more heart attacks before undergoing a heart transplant at the age of 65. >> i may be, i don't want to get carried away here, the luckiest guy in the world >> jack bogle, dead at the age of 89. let's bring in bob pisani from the new york stock exchange. really jack bogle made it possible for americans across the country to participate in the financial markets. >> he did. and he had a huge impact on investing and on me personally, melissa. i remember in 1993 after three years at cnbc, i was astonished at how few active managers were able to outperform their bogey one of bogle's central insights is in fact very few do and why not just go along with big parts of the market. he was the first to create a s&p 500 fund that mimicked the s&p

500 and you could buy into it, into his fund. i remember in 1993 after looking at the underperformance of all these fund managers finally kind of coming over to bogle's attitude about the whole thing it wasn't just that you could get into them and buy into the s&p 500, it was cheaper. remember, you were paying 2%, 2.5% per year for active management at the time most were not outperforming. suddenly you could buy in for a fraction of that into the s&p 500. it was a simple insight, yet really revolutionary. >> and think about how we've built from that concept of the index fund, correct, bob right now we have an industry filled with etfs which would not have been made possible without the thinking that you could create a fund that is simply an index of the s&p 500. >> the great irony here about etfs is jack bogle was not always a big fan of etfs this is etfs independent of mutual funds

he felt in the earlier days that etfs would encourage too much active trading because you could trade them intraday unlike a mutual fundin fortunately vanguard, which has since moved on, went very big into etfs and it turned out to be a fantastic move. vanguard itself quickly surpassed fidelity, its big rival, because fidelity was slower getting into the etf business as a result of vanguard's decision to sort of go against jack's wishes, vanguard is now a giant. it's number two in the etf business after blackrock so the company itself has made some amazing moves even after jack bogle left managing the day-to-day affairs. >> and even after jack left vanguard on a day-to-day basis, bob, what was so amazing about him is he would always come onto cnbc and basically be the face and champion of the individual investor, really advocating that people should be involved in

this market. he wouldn't be shy about giving his opinions on that. >> yeah. he was somewhat astonished -- i remember having a conversation with him one day about our fixation on, for example, what the sectors were doing on a day-to-day basis he kind of thought a lot of this was noise because he was such a long-term nvestor. when i said, jack, there are people who want to try to play the markets on a shorter term basis. we don't always want to hold for 25 years, some people want to move he said i understand that, bob, but you know, you know, bob, how difficult and impossible, he used to say it is, to time market activities. he felt a lot of attempts wouldn't be successful for most people stay long, have a plan and don't deviate from the plan was his primary message to all of us. >> yes bob, thank you thank you for sharing your remembrances of jack bogle, vanguard founder, dead at the age of 89. of course he's had profound impacts on all of us either individually or just on our

industry as we were talking about with bob. >> i think what really hits home is when jack talks about the individual hedge fund manager or fund manager who can't beat the market consistently, and when you look at it to a grassroots event. we have four traders on the desk tonight. sometimes we're going to be wrong, sometimes we're going to be right and that's why you have to get this difference of opinion. but one person to beat the market, it's impossible to do it with any longevity that's why you have to be in the indexes. >> again, vanguard founder, jack bogle, dead at the age of 89

welcome back a $22 billion deal here's deidre live with more. >> one analyst i talked to called the deal a super defensive move in response to the success of square. they sell services and systems to banks and financial institutions first data operates more in the physical payment space so the idea is that together they'll be able to serve both merchants and card issuing interests but, guys, the squares and

paypals of the world are already doing both and adding on more and more financial services. they process payments, have debit cards, their own successful peer-to-peer payment apps and lend to small businesses the company has twice applied for a banking license. they have become a one-stop shop that are encroaching on current banking territory. a threat that was acknowledged in a call this morning to analysts. >> a lot of banks, especially in the community spaces, are worried about companies like square what do you do where square has a growing -- rapidly growing point of sale lending business, and that's going to take money out of the revenue line of the banks. >> fiserv and first data say they'll be investing half a million dollars over the next five years on new tech and

digital services they also want to better leverage first data's clover point of sale system for small businesses in other words, they want to catch up to what square has already been building. they also called clover a great opportunity for community banks to fight back. >> all right, dreeidrdeidre thank you. >> the bulk of their volume growth has been in this midsize category why are you looking at me like so what? >> no, no, it's actually a really important point the banks were so focused -- they weren't focused on square because square was focused on small businesses now that they're moving upstream and had this relative success, they're on everybody's radar i suspect square will not bow an independent company for too much longer. >> so they're going to be bought just because this is happening clover and clover go, point of sale services, deeper pockets, right? presumably >> look at fiserv, for example

it's still an expensive stock. the stock has been deteriorating the last few months. they report earnings in two or three weeks. i would stay away from this. in terms of square, you wonder -- i'll say this, i don't know if it makes any sense and dan will laugh at me i've thought this for a while. apple and square together makes google. >> services, business, this is where -- i've been long this name on and off. i'm consistently long from $12 so i didn't buy it for a payments processor, i bought it for a services company that was what was really attractive you get a services company, you can slap any multiple you want to put on it you get payment processes, you are limited to what you're going to have the stock trade at but i do believe it's a take-out it's crushed on that value versus growth. >> are you long? >> i'm still long. >> mark? >> in this case i actually like visa i'd rather own the credit card processor. visa is an all-woreather stock it's got good global

diversification and a strong debit card presence. if you look back to the last recession, credit was down double digits, deb it was actually positive. so i think visa would be a good play at this stage of the cycle. coming up, a number of huge tech ipos waiting in the wings, but the government shutdown could be throwing a wrench in what wall street was expecting to be a major year for public debuts we'll explain, stay tuned. but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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there is a robust pipeline for 2019 160 companies have filed to go public with the fcc. uber alone may have a valuation of $72 billion and pinterest is interviewing bankers in preparation for an ipo but the government shutdown could be throwing a wrench in the plans. rick heitzmann is an early investor in both airbnb and pinterest. it's always good to see you. >> good to see you again. >> so s.e.c. only has essential employees, they're not dealing with ipos. what's happening at this point >> at this point nothing that's the scary part, nothing is happening we're two weeks into the year, it's not even martin luther king day yet and the tweet is going there might not be any public offerings in 20 taken. it's way premature the s.e.c. still has 28 days to reply to a filing.

assuming the s.e.c. reopens, government shutdown reopens, it won't even impact the ipo windows by a quarter. >> so this is not something that's really a concern of yourself when it comes to your portfolio companies. at what point does it become a concern? is it a month into the shutdown? is it two months >> i think you'll see an accordion back based on how long the shutdown is. if it's a month back, it will be a little less than a month the issue is, i think the mega deals, the ubers, the lyfts are going to get done regardless of market conditions and regardless of what happens in the government because they're big, known companies that people wanting to buy, people might need to buy if they think they're the future of transportation if you're the next tier of companies or two tier companies down, you're not an everyday name, you won't be able to get mind sheriff thereare if there' of ipos. >> are there any companies like that in your portfolio trying to

work through a plan b for 2019 >> not yet we set it up that we're going to be able to finance these companies almost regardless of economic condition the fear of a potential recession has people thinking about establishing a fortress balance sheet. a lot of companies establish what they call a fortress balance sheet in 2018 where they can control their own destiny aside from financing risk. therefore, people aren't worried about anything like this for the next couple weeks. >> rick, that's a really good point. think about the tens of billions of dollars that's been raised n innin equi equity does it give you this runway to delay them if you wanted to if the conditions weren't correct because of volatility, let's say the s.e.c. gets back in order? >> i think most people have already taken that delay they have already said i'm going to do my mega private financing round. i'll take care of early liquidity and take care of providing plan b, plan c now a lot of these companies are

saying it's time to play in the big leagues and we'll wait for the s.e.c. to reopen, which should be shortly. >> rick, great to see you. rick heitzmann earlier we reported the news that jack bogle, the recratcreaf vanguard has passed way at the age of 89. just a couple of months ago i had the opportunity to speakto jack bogle take a listen. >> do you think that the market structure as it is right now could contribute to this sort of liquidity crunch the next time we have a volatility spike >> well, to be honest, there are areas of the exchange traded fund market in particular that could be subject to the same kind of liquidity pressures that you're talking about when you get into the main part of the index fund market, the s&p 500, the total u.s. stock market, it's not really conceivable because they are the market there's a panic there, there will be a panic everywhere by

definition. >> always a straight speaking guy, that jack bogle let's bring in becky quick who just spoke to warren buffett with jack. >> hi, melissa warren buffett really admired jack bogle when he heard the news about jack bogle's passing, he had a lot to say about it. he's known jack for many years he said jack bogle has done more for america's investors as a whole than any individual he's known. he said bogle not only saved investors a lot in the fees, he made them more long term oriented instead he said if you would findthe turnover numbers in the s&p 500 versus the etf are very different and he thinks bogle did a lot to reset the investors' minds and just pointed out again that he brought down fees dramatically for those who followed his words. he made a couple of comments about jack he said that a lot of wall street is really devoted to charging a lot for nothing, but bogle charged nothing to accomplish a huge amount

he said that bogle covered in a 30-year period a lot of people and converted a lot of people to the right religion of investing and he said it's a good religion, it really pays off but he said there's no one that he can think of in the world of investing who has done more for america's investors than jack bogle because of the fees that he brought down. he pointed out if you're looking at index funds out there, maybe it's about $3 trillion right now. but he said even if you're talking about a trillion, if you're talking about management fees of 1% over the course of the year that would cost investors about $10 billion. jack bogle successfully brought that number down to just about zero so really pointing out all the good that jack bogle did for main street investors. >> he really brought investing to the american public at large, becky. you and i know very well people who watch our programming all day long may be investing in individual stocks, but for the most part most people are invested in mutual funds or etfs and all of that would not be possible without jack bogle and

what he wrote about in his princeton thesis, which is just amazing to think that so long ago as a college student he thought of the idea of the index fund. >> that's right. really converted things and managed to convert a huge portion ofamerica over the course of probably three decades. >> all right, becky, thank you so much for tuning in. our own becky quick who spoke to warren buffett moments ago i want to read an excerpt from the statement that was released by vanguard. this is from the vanguard ceo. jack bogle made an impact on not only the entire investment industry but more importantly on the lives of countless individuals saving for their futures or their children's futures. he was a tremendously intelligent driven and talented visionary whose ideas completely change the way we invest we are honored to continue his legacy of giving every investor a fair shake and that's really what it has been about i mean for so long wall street has been maligned as being an insiders club, and all of a sudden with the index fund, that club opened up to a whole audience of investors who never

had the opportunity really to invest in the stock market before. >> think about the words from warren buffett has done more for the american investor than anybody he can think of that's pretty high praise coming from somebody who could probably claim that title himself so it's pretty incredible. to your point, he leveled the playing field for all the citizens of this country it's a pretty remarkable life. >> okay. we'll have more on jack throughout the hour here as we close up, but again, jack bogle, the fournnder of the vanguard group, dead at 89. after months of wearing only a tiger costume, we're finally going on the trip i've been promising. because with expedia, i saved when i added a hotel to our flight. ♪ so even when she outgrows her costume, we'll never outgrow the memory of our adventure together. unlock savings when you add select hotels to your existing trip. only when you book with expedia.

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welcome back take a look at shares of netflix, up 50% from the december lows as it gears up for earnings after the bell tomorrow what is the options market expecting? >> an 8.5% move in either direction. interestingly enough, that employed move has come down with the stock's huge rip this week the stock is up 32% on the year. it's up 53% from its christmas massacre lows here obviously sentiment is running really, really hot into that print last night, especially with that subscriber price increase the other day you know, if you watch o.a. last friday, i was fading it $15, $20 lower. >> for more options action check outht e full show friday, 5:30 p.m. eastern time. next up, final tratsds -- trades. so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true.

so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you?

time for the final trade steve grasso. >> ge up 18% year to date, sneaky it's going to continue to firm in a sneaky fashion. ge. >> netflix, i'm selling it ahead of earnings. i'm concerned about subscriber growth. >> dan. >> xlf overshot to the downside and overshot to the upside i'm a seller. >> guy. >> can't wait for oa tomorrow. tomorrow is not thursday >> it's our anniversary, by the way. >> on friday >> yes. >> ten-year anniversary?

>> yes. >> can i come to the show? >> sure. open invitation. >> i think gold is sneaky as well, abx. >> that does it for us thanks for watching. see you back here tomorrow at 5:00 don't go anywhere, "mad money" with jim cramer 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 cramer america. i'm just trying to make you some money. my job is not just to entertain but to educate you call me at 1-800-743-cnbc. maybe, just maybe this market is going into bob dylan mode, maybe the slow ones now will later be fast, and the orders rapidly fading because the times, they are