companies that will look at title insurance as another opportunity to play that >> good stuff. doc j. >> docusign. >> i sold my trades and put it into mcdonald's. they have a great drive-thru business and i like the management team. >> good stuff, everybody "the exchange" starts right now. thank you, scott, and welcome to "the exchange," everybody. we are monitoring another big selloff today. in fact, the nasdaq is down nearly 10% right now from its recent highs to hit that level we would need to trade down to 10,850. that should be a squiggly line because we're not there yet. we're at 11,832 right now, but look at the action where we got pretty close to there. we opened up substantially lower than we are right now, just above the 10,850 level we climbed back, we're kind of

holding the gains we moved throughout the afternoon, and it's not just the nasdaq, by the way. obviously the major averages are all affected by the tech selloff we're seeing it's energy today as well. take a look at the dow this is the chart. these losses just the past two sessions of last week were as much as the dow lost in the previous month going into this trade. so you can see in august overall, it was a pretty constant, steady climb we barely had anything what a different picture we've already seen here to kick off the month of september let's get to dom chu he's seeing more of the numbers driving the action dom? >> as we talk about the forces you were just mentioning regarding large cap technology, these are the four biggest companies in the s&p 500 we're of course referring to apple, amazon, microsoft and alphabet, the parent company of google you can see we're off the lows big losses here. 3% for apple, amazon down near 3.5%, microsoft, 3% and alphabet

almost 3% there. alphabet down from 1to 10% from 15% last week. wti crude down almost 8%, ice brent crude down 5%. tech is driving the entire conversation look at exxonmobil shares, down 1.59%. just to put those in perspective with regard to those energy type names and everything else that's happening, look what else is going on in the entire sector. that's one to watch, kelly that energy and oil price is certainly not looking good i'll send it back to you >> i'm surprised to almost see you. >> i can see you at a social distance maybe it's 10 or 15 paces?

just how damaging has this three-day selloff been for most of wall street's most loved stocks, it's been pretty painful. apple, amazon, microsoft and alphabet down 10%. is there still a lot more to go, or does the third down day clean out the sellers? gina sanchez and michael for wells fargo security >> gina, this makes it interesting. we have energy underperforming tesla is down there. wynn resorts didn't look so great. it has kind of a china feel to it where the growth names haven't been hit as bad as last week what did that tell you >> we had very stretched motivations where people were

transitioning into this remote working, remote learning, et cetera they priced it accordingly, so some of that was always going to be sort of vulnerable to any kind of pullback what you see in the energy sector is telling us we're sort of doubting the recovery, that we're going to have a strong kind of surge in demand as the recovery trade, and that's also going to hit some other consumer names as well. so that recovery trade, it may not be the kind of recovery that we've priced in. we've priced in a really, really aggressive recovery. it's probably going to be a very slow and drawn-out recovery. that's just not what's in the markets right now, so the markets have to reprice. >> this will be a pretty somber conversation, then, because michael, we know you're sort of bearish in the treasury market no, no, i'm misreading this, i'm sorry. you do mean you think yields are rising i forget how low we've come. 1% on the 10-year, maybe that's a brighter look than i thought

>> it is, kelly. i think it's good to take a look back and see the s&p is almost 50% up from its low. that's remarkable, since march from that time, the treasury yields have fallen to say yields go up 35% by year end is really not a crazy call we think the markets have gotten ahead of the economy, frankly. >> expand on that a second from what gina was just saying. do you sense the markets are, largely speaking, reconsidering whether the v that we've seen in the recovery so far is flattening out >> i would put it a little bit differently and say the bottom market has really been pushed a lot by the fed, so the fed is still buying a tremendous amount of bonds it's keeping the fed rate at essentially zero, and listening to jay powell the last few weeks, it seems that's the intent over the next few years the fed is sending easy signals to the bond market and the equity market has latched onto that, too. the equity market said a green

line for risks, the fed is buying all the bonds, so therefore the yields are low we think that balance starts to tip and treasury supply is very heavy and that pushes yields up in time. >> right although it's not like you're saying we're going to hit 1% and keep going this is different than those kinds of calls which think there are major inflation coming and bond selloff gina, let me come back to you and kind of what we're talking about for the recovery it makes a big difference to the stocks you want to own if you're right that we'll give way to a slower and more drawn-out phase, would that make growth more productive because investors would want that rate of growth. >> actually, i think it goes the other way, kelly i think it makes these value stocks finally more attractive we've seen value trying to surge. we've seen value stocks in this pandemic, or even just cyclical names, try to make a comeback. much of that, i think, still latches onto whether or not not just we have a recovery, but we need additional stimulus at this

point. while the fed have made their stand, and they say we're here for you, we're going to buy everything we can, that is clear. but what we really need to see is a real surgein cyclical stocks and in some of these valued names is continued stimulus without that stimulus, we probably actually could threaten the recovery, so instead of having a slow recovery, we end up double dipping, and that would be very negative >> explain to me, because i don't fully follow why a slower growth kind of trajectory from here would make the value stocks more attractive. >> because the growth names are already priced for a very, very aggressive growth at this point. growth names are well priced value stocks, on the other hand, are a good price right now, and so if you think that the growth is going to disappoint, well, you're paying too much for most of those names and you're going to have to think about how to rotate out of that into sort of some cheaper names. >> interesting so finally, then, michael, before we go, what would your advice be to investors maybe in

the stock market of all different kinds of stripes, but they say, wait a minute, okay, you're talking about bond yields moving back up, but is this the kind of event i need to be worried about? >> frankly, kelly, we think yields go up a little bit but nothing terrible whether it's 1% of the 10-year late this year or next year, this is really nothing to be too concerned about. it was a 1% yield, and that's still a pretty low yield, to be sure for most of your viewers, i would say if yields go up even somewhat, you're going to wind up with negative returns i would tell viewers not to buy the low returns for the next five years stay pretty short in the bond market >> very well said. thank you both appreciate it today. michael schumacher and gina sanchez speaking about all of these markets. tesla is the worst performing stock in the nasdaq today but not in the s&p 500, because it's not in the s&p 500. that exclusion is one factor leading to a sharp selloff

today. mark san totelli is here with m on the story what does that tell you? >> it tells us maybe we got a sticker shock with how big tesla has become with more than three-quarters worth of power. people thought it was a shoo-in for the index, but it seems as if it was going to be a $50 billion valuation at the peak, and in order to initiate that kind of, you know, move that would unsettle index funds and maybe make a big bet for your index, maybe wait and see whether, in fact, you can count on this earnings trend and have more of a fundamental basis. let's keep in mind, the stock was at 275 on august 11th, and it went up to 500 in a couple weeks after it announced the stocks, but it didn't seem it was moving on fundamentals >> mike, let me switch gears a little bit because tesla is down

nearly 18% right now when you look at this market, do you get the sense that people are fleeing growth tod iflingine not flinging as much as we saw last week, because tesla's move today is more unique than last week which took out all the momentum names as well >> it's kind of a whip on both directions with the rally it had a much more exaggerated move to the upside it's moving to the downside, not just the lack of inclusion from the s&p but this move with gm that maybe calls into question the value of tesla's head start. that's, i think, just a little bit of a headline that's pushing it further in the direction of people taking profits. this stock, though, is not even back to its 50-day average if you talk about an equal and opposite reaction up side to down side, that's why i think it's more exaggerated.

in general, i think you're right, it looks like more of a routine pushback in growth of tech >> and was it 5 for 1? >> it was 5 for 1 because it made it one better than apple, which was 4 to 1 someone pointed out to me that the 1-5 ratio is 420 >> i did take note of that as well if you multiply 5 by 75 -- we're talking about several hundred dollars in the market of declines in the stock price, just a market cap moving around today. >> if anything, it makes things less scary after the split, given the magnitude of the dollar decline >> absolutely, mike santoli, we appreciate it. coming up, we'll speak with the fund manager whose five-star fund is beating 95% of his peers and up 68% year to date.

we'll look at the names he's buying that might not be on your radar. also, what you do with money may not be the key, but how you behave how the psychology of money can help you during times of panic the semiconductors seeing declines the semi etf down 8% today we're back in two. ot all my favs right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

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welcome back it's been a wild ride for investors this year from the steady climb back to new highs and following the best august in decades. september is already bringing back the volatility. so what are the right and wrong things to do with your money at times like this? morgan housel is a partner at the housing fund and wrote a book what kind of log post would you right on a day like this what would you be thinking about tesla the whole way up here? we've seen these charts before i just would love your take on the current environment first. >> something like tesla, when you're asking what's happening today or what happened last week, i think the better question is how did they get here in the first place.

i joked with a friend that i think i see more fords on the road than teslas i think the most important thing any investor can do is understand the long history of market volatility and realize when something like this happens, whether we're dealing with today or friday, how normal that is over time. the stock market on average of the last hundred years declines at least 10% every other year, so then when you deal with something like that, it doesn't feel like anything is necessarily wrong with the economy, but this is the price of admission we have to pay to get returns. >> now you're feeding the bull on tesla, because i totally take your point you look at amazon there is a stock on average drops about 20% a year, has had an incredibly volatile history look at the way it peaked in '99, look at the way it's come back from that ever since. who is to say?

maybe if you're taking a super long view on tesla, then today's declines, whatever is going to happen with stock this year, that's no big deal in the grand scheme of things >> there were people who really thought tesla was overvalued six or seven years ago and they were making coherent arguments. the first time alan greenspan used the phrase market exuberance was 1996. he was right, but it kept going for four years it was in a bubble by 2003 but it kept going for another four or five years after that even if you can see something is overvalued, ridiculously overvalued, and i'm not saying tesla is, because whoknows whe it's going to change rather than financial metrix moving markets, it's stories and narratives of where people think the future might go. when the interest is zero, there is nothing moving the power of narratives if you believe the federal

reserve, that just makes the power of narratives so much more powerful than they've ever been at any point in our lives. >> that's fascinating. people can say whatever they want when nothing is leaning against them, right? everything can grow to the moon at a time like that. so there is so much more that i want to get into here, but one of the things i want to talk to you about which is a rar opportunity to do so is your actual day job the collaborative fund tell me about the companies you guys are invested in, what evaluations look like, what do you kind of think will happen with the economy and covid from here are you in the permanent work from home camp, or we're going to be back to normal how is that affecting the way you invest >> we are a venture capital private investment firm. we deal with companies who want to do good for the world and use their economic component at their advantage. that their business is not a hindrance but able to bring in

the most quality employees, et cetera that's what we do from the investing perspective. in terms of where we are and where the economy is going, i think there is one thing that i think is overlooked or underappreciated today and those are the odds this is not my baseline forecast, but the odds that 2021 could actually be one of the best years for the economy in history, which sounds ridiculous given what we're dealing with right now. but if you think of the amount of pent-up demand of people who are so eager to get out of their homes and go on vacation, get back to a restaurant, combined with the incredible amount of government stimulus from both the federal reserve and from congress and you put those two things together, and if we were to get a vaccine in the coming weeks, the coming months going into early 2021, put all those factors together, and what 2021 could look like is analogous to the end of world war ii where you have a pent-up demand for goods because everything was shut down, which set the stage of the economic boom of the '50s and '60s that's not my baseline scenario,

but there is so much pessimism of what's going on, justified pessimism, i think we underestimate how good 2021 could be going forward >> and the forced demand destruction. no one wanted the pandemic, as well as the housing boom you couldn't get it back to a level that was sustainable let me ask you a broader, more timeless question, then, about "the psychology of money." one of the things you emphasize is the way to make time work in your favor, and i think this is an issue that people more and more are understanding, just how valuable that time is. we all hear it's helpful to have a long-term horizon, but how should people think about time as it relates to their money >> what it comes down to for me in investing is just asking, what are you getting paid for? the market can make you very rich, can make you wealthy over time, but why? what do you have to give back? what is the cost of those returns? the cost for admission for returns is patience and dealing with uncertainty

it's those two things. if any of us want to do well in the market, it is putting up with one of those two things the more patience we can give it, the more time we can give t the more price of admission we're paying and the more we hope to get out of it over time. i think it's one of the fundamental parts of investing that is easy to overlook people don't want to hear that you need to be patient and it's so simple and so boring. it's how investing works over time and it's something you can't control. you can't control what the economy does next. since it's in your control, it gains a new sense of importance in investing terms >> i love that, and it tells you the more uncertain things are, the more active it is to invest against that morgan, thanks so much really glad you could join me.

>> thanks so much, kelly >> have a great one. morgan housel was the author of the new book, "the psychology of money. coming up, take a look at oil. it's also collapsing and it's now at the lowest level in june and on pace for its fifth down day. we're going to look at what's driving these moves. while almost all of wall street was yelling buy, buy, buy on apple, global was saying sell, sell, sell we'll tell you how low they think you should go, after this.

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♪ (music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. welcome back to "the exchange." i'm feeling all positive after that chat with morgan about 2021 here the dow was down 347 points at the lows we're down almost 650, so we're quite a bit of ways off of that, but we started out the week and struggled to climb back into the green today. it's a 1% to 2% drop

the nasdaq down 2.5%, so its selling pressure has been pretty relentless nary a one in the green today. industrials up there as well flip side of the story, and this is what makes citi different from last week financials are down 1.8% morgan and goldman down today. let's look at some of the individual moovrz, though, and we'll begin with shares of nikola which are now up 48% after a partnership with gm. gm will get $2 billion worth of nikola stock meanwhile, shares of gm also higher on the news by nearly 10%. they're at 32.84 and this is also being fingered as one reason behind tesla's sharp selloff today. meanwhile shares of camping world are higher

camping world up nearly 15%. goldman seeking covid-safe travel options, including rv sales which have included momentum finally, have to end with peloton. shares higher on news of a new bike and treadmill the company now discloses it has 2.6 million members. they're back up above $90 a share, $91.23, to be exact, and they have more than tripled, 221% rally this year let's get to sue herera for an update sue? >> here's what's happening at this hour, everyone. disney is facing backlash after the final credits of its film "mulan" thanked governments where people have faced civil rights abuses. the census bureau is refraining from laying off some of its workers and trying to

better retrieve answers to the 2020 census. this comes a few days after the fed warned the bureau to stop winding down 2020 operations and andrew cuomo blasting president trump today for his handling of the coronavirus and what cuomo calls his bias against new york city. >> not only did he tell new york city to drop dead, trump is actively trying to kill new york city it is personal, i think it's psychological. he is trying to kill new york city >> specifically the governor was also referring to the lack of funding coming from the federal government kelly, back to you >> sue, thank you very much. sue herera let's talk about oil plummeting on demand with crude oil down 8% of demands look at wti back around $36.50 a barrel

saudi arabia did cut prices for october crude deliveries and bank of america recently said it would take three years for oil demand to recover from covid-19, assuming there is a vaccine or cure let's talk more about these declines joining me now, our very own brian sullivan along with dan pickering, the chief investment officer at pickering energy partners brian, i'll start with you last week we went below 40, so it's not like this is just today, even despite all we've learned about chinese demand and that sort of thing oil has been sliding now, i think, for about five straight sessions, right? >> there's nothing new i got to get a new beat because i'm starting to get depressed. i'm sure dan can tell you the same thing because energy is at its worst. tesla and amazon are down below apple today. here's kind of the headlines of the traders i've surveyed about what's going on. don't look at oil as falling, which sounds weird look at oil as maybe having never should have gone up to mid-40s because it was based on

dollar weakness. now that the dollar has firmed up a bit, that trade may be reversing. maybe it didn't deserve to be at 45, maybe this is its natural home jet fuel demand is still terrible i know 950,000 people flew on friday, the most since the pandemic began, but it's still terrible you've also got phillips 66 and citgo, two big refineries in louisiana. they're still largely off line because of hurricane laura there are articles that may take them weeks to get back on line oil, they don't need to buy that oil so inventories may spike up, and the saudis cutting selling prices to china and other parts of asia. there are probably more that dan can hit to, but those are the four majors. >> it's like this big monster sitting on the energy sector even though the price of airlines are up today. dan, what would you add to that? brian is right, these are difficult times to be an energy investor >> kelly, we're stuck in a trading range, probably 35 to 45

until demand is demonstrably better in the meantime we're going to slo slop back and forth. we're at the end of driving season so demand is plateauing a little bit opec bringing barrels back, the u.s. has brought barrels back. you've got demand loosening a bit, and on the financial side folks are scared and they're selling everything, including oil. i think we're in the bottom of that trading range assuming the world doesn't crater, we've got to keep an eye out for covid. >> it's interesting, dan, you could tell me we're in a trading range but it's in between 40 to 55 obviously it feels kind of ranging until the big factors change, but this does feel like the slide came out of nowhere, right? >> well, i mean, when you're down five days in a row, it does feel a bit like a sledgehammer, but the reality is we know what the oil markets are going to be for the next year.

we're going to watch demand gradually come back, we're going to watch opec gradually come back, and until we get bussed through the excess inventory and this sort of push/pull of supply back, demand back, this is kind of the market we're in so even though it sounds trite, 35, 45, it is a range and it's going to tail a yeoy a year t t of it. >> and if it's, hey, oil is down because chinese demand is fa faltering, i could imagine a lot of people would be interested in, but maybe there's these 12 other things that investors don't need to worry about. >> it is, and if you look at mobility trends in europe, they're close to back to normal in many areas. in fact, maybe above normal pre-pandemic in some areas as well i'm not sure there is any political will in many countries for a renewed lockdown whatever happens with covid, but that's not my call. i will say this, and maybe dan

will know, there is some renewed optimism that apple was down three times more than exxon right now, and i'm not sure i've ever said that, that the big cap oil stocks are not getting bludgeoned today like other parts of the market. there is that. but maybe dan can talk to this idea that two times a year, some of these companies have to revalue their assets under the ground, and that's coming up in the fall, dan, and i could imagine that could set off another round of bankruptcies. >> you have about 20 seconds, dan, but i'm sure that's going to be plenty of time >> we have bank redeterminations they look at how much reserves you got and what the loan against -- it's a function of price and value. prices down, values down the sector is in distress. there's no question, we're in distress whether oil is 35 or 45, it's not a great price and the sector has got to work its way through that that's going to happen again, it's going to take a little time. look at the back half of '21, early '22. that's when the wti will get

back about 50, then maybe investors will care again. >> wonderful brian, i was just giving you a hard time because' miss i've mid your smile we'll get you somewhere that will cover better news >> this is a frown that's upside down it's not actually a smile. >> brian sullivan, dan pickering, thank you both for your time today, appreciate it coming up, despite the recent downturn, one financial manager is up 60%. we're going to speak with him about their recent buys and sells, and get this, their very large stake in tesla orders lower for boeing. we'll have details from boeing, the worst, down 4% you can always watch us live and on the go on our cnbc app. we're back in a couple

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welcome back selloff continuing into today. this one has many moving parts and we have team coverage with the very latest on all of them meg tirrell is here following the race for a covid vaccine we have the dow and josh lipton with the market. ms. tirrell has the details for us meg? >> these are nine of the leading companies in the race for a covid-19 vaccine, issuing what they're calling a historic pledge to put safety first in their vaccine development, as well as only to submit for approval or emergency use authorization for their vaccines after they've demonstrated

safety and efficacy through a phase 3 clinical trial now, you kind of expect that companies would always put safety first when talking about any kind of drug or vaccine, so it implies there's more going on behind the scenes here, and there is there has been a lot of discussion about potential political pressure on the fda to approve a vaccine potentially by election day, really put out there by the president in a late august tweet that was directed directly at the fda commissioner, where he suggested that the fda was hoping to delay an answer about a vaccine until after the election and, of course, a lot of important events around the covid vaccine are stacked toward the end of october the 22nd the fda scheduled an advisory committee meeting on covid-19 vaccines. pfizer is targeting the end of next month for its potential data, and the cdc has asked governors to be ready to potentially distribute a vaccine all by november 1st, all ahead of that november 3rd election date, kelly. all of this is swirling to make the drug makers feel they needed

to clarify that they won't be politically motivated in submitting their vaccines for approval but i should note that dr. fauci just told judy woodruff in a panel just now that he does not expect to have answers on these vaccines before november 3rd >> moderna shares, i saw, were down by about 12%. obviously people signing this pledge, but what's going on there today? >> they are, but they got a downgrade from lyrink who said their shares are priced to perfection, but it's down 11% right now. moderna, though it was the first to get into trials, has lost its lead in clinical development it's really neck and neck with pfizer and maybe even slightly behind pfizer. there are also demand risks around the skepticism for vaccines' rush to market, as well as vaccine contracts which

could pressure revenue we should point out, moderna says their vaccine could bring in $2 billion a year through 2030 they said their consensus is $5 billion a year some thinkthis number is way too high for moderna's vaccine still, that is a huge proukduct >> those are huge dollar values as well so i understand why there is some skepticism let's move on to boeing. it's been a tough 24 hours for the embattled company. the shares are down 4% right now. they're estimating their 747 dreamliner production is lapsing. phil, what's the latest? >> it's been a rough couple days for boeing in terms of the investigation. in morning they issued the august orders number

august orders, negative 932 orders in terms of the max alone, this year negative 955 orders then there's the news regarding the dreamliner boeing said today they are slowing down deliveries of dreamliners as they predict previouslily built 787s. they are looking at production of the 787 specifically they're looking at the issue that caused eight dreamliners to be grounded they're looking at where the fuselage joins together at the back of the plane. there are two separate manufacturing flaws. boeing believes they are targeting what the problem is and they can fix the problem the faa, they're looking into this whether or not this leads to a broader airworthiness directive, that remains to be seen. but the bottom line is this. if you take a look at boeing, the shares are under pressure. in terms of deliveries, we said they're slowing down max deliveries they delivered just 13 planes, only four of them being

dreamliners last month they're slowing down dreamliners deliveries, i should say the backlog at boeing stands at 3,087 planes just for a point of reference, kelly, go back a year and a half, two years ago, that backlog is at 150 planes >> with all the hits boeing has taken, there's not a lot of great news the return of the max keeps getting delayed, the timeline keeps getting pushed back and so on why do you think the shares are taking all of these developments so poorly? >> well, it raises more questions about quality control. remember, the dreamliner was gradually increasing -- they were gradually increasing production of the dreamliner over the last several years. you look at the issue involving these eight planes that are grounded you look at it and say, okay, is that an isolated incident or does this call into question boeing over the last seven or eight years, have they sacrificed quality to do that?

that's at the heart of the problem surrounding the 737 max. >> phil, appreciate it thank you, sir phil lebeau with the boeing for us apple is still at 50% over the past 12 months they announced a product event wasn't enough to lift shares, though while all the world was bullish, goldman sachs went against the firm's analyst reaffirming its sell on apple today. josh, that could be behind the selling pressure here, but what's the analyst case? >> that's right, kelly, one well-known app is bearing down here on skepticism goldman's rod hall publishing a resell note. by his own admission, rod says he missed a 70% move in the stock, but he reiterates that sell now with a target price of $80, saying the iphone is a very tough act to follow. service and wearables are not

likely to be big enough, rod argues, to return this company to growth, and he says apple's missed beat track record is missed with the company failing to meet failed expectations in 2016, 2018 and 2019. how does a bull respond to all that i checked in with cowens he says apple is still a buy here the iphone cycle could be very strong, and apple should benefit from that trend. second, sfervices momentum shoul continue given the app store and apple pay. >> we know berkshire is one of the biggest apple shareholders, becoming a huge share of their portfolio on the runup i imagine it doesn't hurt that much, but apple has probably hurt them lately >> kelly, you're right apple has certainly come under some pressure. you'll see that stock is now

down about 15% from that all-time high it hit last wednesday. so you're now down 10% so far in september, coming off a five-month winning streak, and that has translated into some significant losses for some big name shareholders. warren buffett has seen apple plunge about $21 billion in value since the stock's high ceo tim cook, coo jeff williams and chairman of the board arthur lever levinson they have seen their stocks take a hit, too these losses are a fraction of the gains these stockholders have seen. apple stocks still up about 60% this year and up about 40% in the past three months alone. kelly, back to you >> josh, thank you very much we appreciate it, sir. josh lipton with our apple roundup. the stock has been under pressure of late, so has the whole tech sector, so has the whole market, in fact. coming up, we'll tell you about

j.p. morgp morgan out with its k for september. some of the names they mentioned may surprise you and there are a slew of retail names outperforming today. capri, american eagle, rh and foot locker all seeing gains of 6% foot locker up 7% in the past week now capri up almost 15% now in the same time. we'll keep an eye on it. we're back after the short break. stay with us i'm a verizon engineer. and i'm part of the team building... ...a powerful 5g experience for america. it's 5g ultra wideband, and it's already available in parts of select cities. like los angeles. and in new york city. and it's rolling out in cities around the country. with massive capacity. it's like an eight-lane highway compared to a two-lane dirt road. 25x faster than today's 4g networks. in fact, it's the fastest 5g in the world. from the network more people rely on.

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welcome back to "the exchange." the dow is down 328 points today. jp morgan out with their new top picks for september. seven new names added, some we thought we might highlight brighter horizons takes on care services for children and adults the stock is up 112% from its yearly low also eaton vance especially if joe biden wins in

september as they could benefit from higher taxes. up 54% from its two-week low finally, thermo fisher scientific it is up 61% off its 52-week low. you can find more on jp morgan's picks for september at cnbc.com/pro coming up, the global growth fund is up 115% in three years, 7% this year alone, outperforming the s&p 500. we're going to speak to the man in moments ahead jon fortt and russ forth can take a look at ideas and potential solutions from ceos, potential solutions from ceos, investor be named after the...

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welcome back we showed you before the break the long term global growth fund at bailey gifgifford is up this year it's still a longer term believer in the electric car kpa company. i'm joined by tom slater he's head of the u.s. equities team and a decision maker on their long term global growth portfolios it's such a pleasure to have you here this is the most surprising top holding i could have manged for a fund like yours. why tesla and when >> thank you for much for having me on the show

we bought tesla in 2013. that's sort of common for our strategy our average holding period is more than ten years. it's the combination of addressing a very large opportunity seeming to have really impressive competitive edge and driven leadership with significant skin in the game going of that opportunity. >> now you're in an awkward position because the stock has done too well. you've been forced the pair it but would you want to given these prices >> we're driven by the diversification rules. it's a sensible idea to have adequate diversification in the portfol portfolio. i think tesla addressing just such a large opportunity and it's really getting started in addressing that. it is a reaction to those rules rather than an investment decision >> i imagine you guys do

investment analysis the came way it's always been done which is to figure out whatare the earnings looking like. are you doing this bottoms up or is it top done this is the last question on tesla but a lot of the bulls on tesla say the battery opportunity and the energy systems, it's very macro it's very top level driven can you say the earnings will justify holding the stock at these levels >> for us it's a bt the long terms earning power of the business so much of the market is focused on what the company will end in the next quarter, the next two quarters but so little of the value lies in ta time period it's about thinking whether that's in automotive or deploying that into the energy markets. it's thinking through what's it

is a business. it's become apparent over the seven past years the traditions are matching to struggle what tesla is able to do. >> interesting we know that's true. we know there's raft of new entrants coming. leapt me go down the rest of your list. tesla is your top holding. at oo time when people are becoming it's going to be this decoupling between the u.s. and china. would they get hurt if this decoupling does take place and continues the take place >> what really stands out is the

quality of the entrepreneurs and their ability to build it. we just haven't found anywhere else in the world outside of the west coast can you think of large business that's been felt in the uk in past 20 years. creating site on the future of u.s. relations the level of our mission long term growth investors. >> let me ask you more of thought question which is here you are, you've got to long term global growth fund at a time when global growth stocks have out performed dramatically.

>> we still own 17 of the top 20 holdings we believer there's this deliver over the long term i'm hugely optimistic. partly due to covid. also just due to the application of technology the parts of the economy that's not seen that progress before. it's just a wealth of opportunities out there for the growth investor. we're optimistic about the opportunity for all kind of capital over the next five, ten years. >> that's a wonderful place to

leave it >> before we go, we want the take a look at shares of disney. stock is the best performer. up about 3%. it's on path to becoming a global streaming entertainment leader upcoming analyst will be a positive catalyst. disney is still down for this year that does it for us on the exchange don't go anywhere. a bullish call the onlyist behind the call will join us live billionaire tilman is starting the see bright spots in the economic turn around we have not heard this yet he's going to tell us what's changed and where. ♪

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good afternoon welcome to "power lunch. we begin with market sell off on wall street again. glad to have you with us here on this day after labor day it's day three of what has been a tech led sell off. the dow down about 350points but it's the nasdaq that is leading the declines it's down better than 2% earlier today down three it's been a sharp and steep drop for nasdaq now down about 9% from its record high set just about a week or so ago plus, one of the hardest hit stocks, tesla down another 18% general motors addin