good afternoon, everyone welcome to "power lunch. a big selloff on wall street bearing the brunt of it all.

courtney reagan with us. stocks are down across the board. it looks like maybe the tech reckoning is really here this time nasdaq is down nearly 2%, as you see there. 1 2/3 there. technology one of the worst performing sectors bitcoin now, get this, back below $50,000. tesla falling along with it. losing its year-to-date gains. hear from a top analyst how tied to the crypto currency tesla's stock is there you see it down almost 4%. back after the earnings reports. crocs ceo with an exclusive interview. courtney, it's all yours. >> thanks, tyler great to be with you here on "power lunch." i'm courtney reagan and we begin with breaking news federal reserve chair jerome powell steve liesman joining us now

with more. hi, steve. >> jake directly addressing two main market concerns on inflation and higher yields in his testimony on the hill. he made clear he does not see either as a reason to change the fed's easy monetary policy until the economy recovers more strongly from the pandemic >> it's amazing that we can continue to support the economy, give it the support it needs we're still 10 million jobs below the level of payroll jobs before the crisis. there's still a long way to go >> powell said the fed expects inflation to rise but believes the increase will be temporary in any event, repeated that the fed's explicit policies to aim for higher inflation above 2% and on the related issue of higher bond yields, powell linking them with an improving

economy. >> it's very important to ask why are rates moving up. so if you look at why they're moving up, it's to do with expectations of a return to more normal levels, more mandate consistent levels of inflation or higher growth and opening economy. and stating confidence on the part of markets that we will have a robust and ultimately complete recovery. those are the reasons that are behind it. >> the fed chair wouldn't be drawn into the debate over the $1.9 trillion relief plan pushed by the president he said it was the job of congress, not the fed. finally, powell reiterate. continues to study digital currency courtney >> steve, obviously went through a lot of topics from things like bitcoin to a fiscal relief package but what do you think the biggest risk is that powell is concerned about here?

>> you know, clearly when you put all of the issues that are in front of the fed chair when it comes to the u.s. and the global economy, it's not inflation. it's not higher bond yields. it's the pandemic solving the pandemic he did say he had seen some better numbers recently and was glad to see what he saw relative to vaccinations but it's clear the pandemic in the first order and the second order, it's the residual impact or the, what's left over the payments left over, even after we recover. in fact, there were many questions where they tried to say, hey, is the policy too loose but every time, powell came back with one number. we're 10 million jobs short. that's the biggest risk to the economy. >> speaking of jobs, i know that he was asked about women that have been left out of the workforce. many of them leaving because of child care issues with children out of school but he didn't really weigh into that debate so much even though that's such a big part of the unemployment

picture right now. >> that's right, courtney but what he did say several times to the answer, the answer to that problem is solving the pandemic and getting people to use the various health measures that are out there and the vaccinations, getting the virus under control. not just the issue of women's unemployment, this is a recession that hit women the hardest but minorities and low income people. this is an issue the fed itself keeps bringing up, even though it's controversial what the fed can do about it but certainly the impression we get from the fed is that they will keep rates low and policy easy until some of the big gaps that are normally present are widened, for example, before the fed changes policy >> got it. steve? thanks very much and markets today started to throw a little bit of a tantrum but powell calmed them a little

bit. nasdaq still down but well off the worst levels of the day. let's go to bob pisani for more on today's trading action. mr. p. >> good to see you and you're right we had a little bit of a selling panic, around interest rates and valuations and you're right. things calmed down when powell came on but a lot of damage has already been done. a lot of this is what one trader called the kathy woods selloff runs ark investments and has been a champion of many of these big momentum names, become momentum names because of her sponsorship. like tesla, roku, square, paypal, all of these are heavily owned by funds, particularly the ark invasion funds and big momentum names like teladoc, for example. shopify, spotify all of these well off of their lows but still down, i'd say a lot of the damage has been done already. if you look at the arc from the

aark, they've done 32 million shares today four times as normal, and we're in the middle of trading she's become a super star on some of the bets in the stock i mentioned. the rest, mega cap tech also having a tough time of it. very quietly, apple is now 15% off of its recent highs. nvidia big tech stocks in general down as well. the question here is, the debate is, is the fed, tyler, getting behind the curve on inflation? i think mr. powell very emphatically said he's not, but the valuation question is there. the damage has been done and legitimate, i think healthy questions about the valuation of some of these big tech momentum names. >> bob, thank you. the major averages as we pointed out off the lows of the day but the tech reckoning does

continue nasdaq down about 5% in the past week joanne pfeeny at advisers capita management and lorene gilbert. welcome ladies, both of you. joanne, let me get you to explain how you see this tech selloff which bob just illustrated with some names that are down 4, 6, 8% today or more. >> tyler, good to be with you. you know, it's probably a lot of investors having ended up last year doing quite well on some of these bigger tech names and realizing they're not well diversified. it's less about the indices than individual stocks, i think you can see how overbalanced some of the indices are with bigger tech names. so as investors try to get more diversified, we see some selloffs in some of the names that did particularly well investors still want exposure to growth they're now though realizing they need to be more diversified. so they're moving it into some of the names that will benefit from the reopening in energy,

financials, perhaps materials, but then we're also wanting some of our clients who are retirees who want to go to sleep better at night and make sure they get more exposure to dividend yielding stocks. the drivers, interest of growth at a reasonable price and interest in getting into some of the reopening names, plus looking for more dividend yield, you see this sort of very asymmetric selloff and that's likely to create some unevenness, but also opportunities for us on a day like today because we invest in individual stocks for our client. >> so if i'm hearing you right there, the idea is that this is largely a rebalancing function, right? >> yeah, i think that's fair clearly, interest rates are also going up and that's going to be a concern for those high multiple stocks. and, you know, interest rates reduce value of future earnings, so the higher the multiple, the more vulnerable and again, that just reinforces the need to trim

some of those positions that did so well last year. >> right. >> and get into more growth names that are reasonably priced like nxpi or a zebra in the tech space. >> lorene, let me get your take on this and whether you see it similarly or whether the selloff in tech is so much pointed in tech, or is it more pointed of moving away from high growth, highly valued stocks and into a more value-oriented sector of the market >> well, i would say this rotation is real and it's here to stay and i think what we're seeing is that we had a very concentrated market and now we have a growing out of the market with rising interest rates, valuations coming into question. i think that's where investors are looking for where do they need to be now not saying they need to get rid of all of their technology names. i do think technology will be strong, but just not as strong as some of these other sectors

as they reopen so reopening play of the economy and seeing how our numbers are going down as far as new cases of covid, and now people are looking to the future saying, where do we want to invest our money with the reopening trade of casinos and travel, airline those are the things we're seeing financials as well >> so give me the idea here. investors are focused on where should they have their money now, where should they i know in my notes that you like equities over fixed income i guess that's not a big surprise there, but small cap over large cap that's interesting international over domestic. >> absolutely. so i would say growth value as well more of a balance than people had before large to small, most definitely even small cap value even as we're talking about financials, looking at not always just the big banks but

some of the retail banks with the smaller names and then like you said, international over domestic so those would be gains and eve e. em emerging markets. >> nxp semiconductor >> nxpi because of their auto exposure the chip industry shortage that's a long-term tailwind as they continue to supply evs and more advanced cars the other one, palo alto, delivering very good results we know cyber security is an ongoing challenge and there's going to be more money reported by enterprises than by governments and then finally, a company like zebra which has

evolved in the cold chain security for vaccine delivery, but also, powers the amazon warehouses with their handheld bar code readers and shipments of packages by other companies so good growth opportunities in long-term trends and available at a reasonable price. so good way to get some secular opportunities into the portfolio for clients. >> thank you so much, folks for your perspective and ideas there. lorene and joanne. courtney >> thank you well, coming up, solar winds getting grilled by lawmakers about that massive cyber attack on the federal government. we'll hear from the man who first exposed the hack, the ceo of fireeye plus, bitcoin plunging and taking tesla shares along with it yp crey?tock now tied to the crtournc more "power lunch" after this.

bitcoin is plunging back below $50,000 and not going down alone. the crypto pulling down names that either intentionally or unintentionally have become bound to bitcoin specifically tesla, which made a big bitcoin bet diving as much as 10% it is coming back slightly now down more than 3.5%. out with the new note saying for better or worse, tesla is now tied to bitcoin. joining us now to dive deeper, dan ives, author of "the note" thank you for joining us

walk us through your theory. elon musk, tesla now tied because of the tweets and the investment walk us through it. >> ever since the investment, the 1.5 billion. less than 10% overall cash, it's really something they do at the deep end of the pool the transaction perspective. i think what you're seeing, even though it's still 750 million, that added risk in volatility is definitely sent some investors we talked to to the exits. i think it's a near term issue but ultimately, this is something right now tied at the hip to some extent with bitcoin for good as well as for bad. >> and it's funny. you say some investors thought it was too risky but i would think, so many investors that are looking at tesla are also looking very squarely at elon musk himself it's a bet on him as much as it is the company he's obviously a risk-taker, so

in general, is the bulk of the tesla investor base all in on bitcoin too as an investment for the company? >> yeah, the vast majority and it's my opinion, this was the smart strategic bet at the right time but must continue to be forward thinkers and it's something they'll continue to talk the talk and walk the walk when it comes to bitcoin ultimately, while the stock in march, a trillion, is from e have but bitcoin that speaks the dna of musk. he's had the golden touch the last few years it's hard to bet against him most investors still in the camp despite some of these white knuckle periods we've seen over the last 48 hours. >> i want to get to the e.v.

market but added by one word tweets, changing his bio on twitter. i mean, we know he's gotten in trouble in the past for things he's tweeted is this a slippery slope for elon musk to get involved and make these kind of statements even if one word clearly, he's able to move the price of the crypto currency in a big way >> he moves markets. a slippery slope the broader issue, it's a side show that will overshadow the transformative growth story. that happened in china front and center and i think that's the worry of investors we've seen with musk before, you take the good with the bad but in terms of twitter, that's sort of been some of the downfall that we've seen, no doubt, i think it's contained right here. but i think it just sees what we've seen it's going to continue from a bitcoin perspective. it adds volatility and it's a bit like playing with fire crackers there is some downside and that's what you're seeing, especially over the last few

days >> when you hear figures like janet yellen and jerome powell talk about studying the crypto currency and janet saying it's still inefficient, do you think comments like that would further fire up elon musk and cause him to sort of dig his heels in even more with something like bitcoin? >> yeah, no doubt. i think that contingent with micro strategy and others, almost becomes a ufc battle from a bitcoin perspective. on one side, you have the believers and there are many out there. and we think you'll see more and more from a company perspective, transactions as well as investment over the coming years. but then the other side as we've heard from yellen and others, there's a lot of skeptics and it will create inefficiency it will add to the bear story on tesla and i think a lot of bears will come out of hibernation

mode even though they've been there for about a year >> i'll ask you quickly and then i have to go the e.v. market, you're not an auto analyst but other players are there. why is tesla still the one to beat in this space >> first move advantage. tesla's world, everyone else paying rent. from an e.v. perspective but then that's why but tesla is leading the charge and we've seen that from a brand and delivery perspective >> dan ives, thank you for joining us here today. >> thank you. still ahead, crocs lower today after earnings report but the stock is still thesitting nr all-time highs the ceo will join us later this hour and february is black history month and we honor some of our cnbc contributors here is cnbc james mcdonald discussing the importance of financial literacy and the racial wealth gap.

>> i think financial literacy is the number one thing of importance to close the racial wealth gap in america. for me, reading about finance, reading about stories of financiers, made a huge difference in encouraging me to pursue my own financial career save, finance and planning you'll close the racial gap starting with yourself

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welcome back i'm rahel solomon. governor gavin newsom is signing a covid arerelief bill, $600 payments to 5.7 million people new york state reporting its second known case of the south african variant of the coronavirus. this as the number of detected uk variant cases surpass 150 in the state. now it's a critical moment for the state's reopening as the barclays center and madison square garden will host a limited number of fans tonight for the first time in almost a

year british prime minister boris johnson says he is, quote, very optimistic about a full reopening for england on june 21st that's the date that he laid out in his reopening plan yesterday. johnson also said the government would review the use of vaccine certificates 200,000 doses of russia's sputnik b vaccine arrived in mexico late monday officials say they plan to use the doses to vaccinate older people in mexico city and that starts on wednesday. guys i'll send it back to you. >> thank you very much, rahel. croc shares are lower today even though the company posted record sales 25% up year-to-date. can it keep up in 2021 as we start to leave homes more and wear shoes when we do that. joining us now with a "power lunch" exclusive, andrew, thank you for joining us here today.

what a stellar quarter here. why not raise your guidance for 2021 are you being too conservative you've got e-commerce up 90% the direct retail channel up more than 41%. why not be more optimistic >> we're very optimistic for '21. in fact, we provided guidance about two months ago for '21 but we think our revenues are going to grow between 20% and 25% this year, which will be growth from last year. obviously we had great performance across certain channels in the fourth quarter and really strong growth in the fourth quarter but also some uncertainty, right i think we were very confident in our brand and very confident in our ability to service our consumers but also be aware there are some uncertainties associated with covid and how that's going to roll out of the remainder of the year. >> some fashion publications

called crocs the it shoe of the pandemic good thing now but is that a pull forward for demand when you look at the future or are you worried the demand you've seen is a bit of a fad? i know you grabbed new customers but how do you hang on to them going forward? >> we're not at all worried. covid has been good for us in that it's changed consumer's desires and perceptions. i think orr iented to more comfortable shoe, easy on and off and washable but the aspiration we bring to the brand. the colors, the graphics, and the collaboration we do. i would also highlight and point out that 2019 was great year for us too trending strongly before we came to the pandemic. i think the pandemic has allowed us to grab new customers, reach new customers but consumers are also focused on what we'll offer in the future. so we think this is the

beginning of the long growth trajectory not worried about a relapse if you like. >> the united states is currently your biggest market but aspirations of growing your business around the world. can you tell us how you plan to do that? >> absolutely. so the u.s. is the biggest market but we see very strong growth in what we call amir, so middle east and africa so we're bullish about amir's performance. strong presence in asia. china, japan, south korea and southeast asia some are impacted by a lack of chinese tourists traveling but other consumer products, we see those returning maybe towards the back end of this year into next bullish around asia. so one of the great things about

crocs, we have a shoe that's incredible value to a very broad range of customers. >> so speaking of other countries, canadian justin bieber sporting the crocks, probably doesn't hurt at all when you look at that as sort of an endorsement of your brand what do you make of bieber's affinity for the shoe? >> that really helps if you look at global celebrities like justin bieber or post malone and yang mai, celebrity ambassador in china. many global celebrities have tens if not tons of millions of social media followers so very effective way to be able to reach all of their consumers and endorsement of the product is really compelling for them on the consumer base.

and we continue with that trajectory into '21 and beyond. >> do you anticipate coming out with different styles? maybe you have more styles but seems right now, basically, you have the one form of shoe in many colors, many different kinds of embellishments on it. how could you grow by bringing out different sorts of shoes in the way sort of ugg evolved its brand? >> absolutely. so you're very familiar with what we call our classic clog. it does come in many styles and graphics and colors, et cetera as we look at growing the brand, we're focused on sandals we think that's a large product category about $30 billion globally and manufacturing technology, our value, our comfort everything we do in the classic clog is applicable to sandals.

we see sandals as a very important growth factor. the other thing that's really important is personalization the little charms that you put on the shoes that make them unique and personalized, that's a growing business that doubled last year and we think it's significant this year. those are two important vectors for diversification and we'll look at others beyond that >> thank you for your time today and your insights. we appreciate it andrew ahead on "power lunch," the senate intel committee holding a hearing on the solarwinds hack we'll bring you the latest and the spac craze continues lucid motors the latest to go public but getting slammed. the biden administration taking aim at capital gains but could a 'lansaction tax hit your 401 k wel ask one expert when "power lunch" returns

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a quick check of markets right now. the dow jones industrial average down about 110 points. s&p 500 off about half a percent. the nasdaq still the laggard down 1.5% but boy, is that well off the lows

down almost 4% for the session the russell also lower by more than 4%. it's really tech stocks riding the losses as we mentioned there with the nasdaq. check out the etfs that are hit the hardest. the triple qs with the semiconductor etfs here. down 2% as is the nasdaq next gen 100. tyler? >> courtney, thank you ceo of solar winds, microsoft, fire eye and crowd strike all appearing before the senate intelligence committee today. they will face questions about the massive security breach blamed on russian hackers and their response to it eamon javers joining us now with more hi, eamon. >> take a live look in right now at the senate intelligence committee where they're about to get under way with the hearing as we say, all of the major players in this solar winds hack which the u.s. government attributed to russia being in one room at one time to give the latest of what we know about this devastating hack that's impacted about 100 american companies as well as the entire

u.s. federal government. the key players will be there including microsoft ceo brad smith who will say according to prepared testimony you can't assume this attack has been fully contained at this point, that it might still be ongoing he's going to say that silence can't solve the problem. that is, corporate ceos who have been impacted by this need to come forward and disclose what they know about how badly their companies have been submit and brad smith will say you need more disclosure, mandatory disclosure for the private sector ought to force companies to say what they knowabou about all th. the ceo of fire eye said his company was the one that first discovered this massive breach and revealed it to the public back in december i asked him though if this hack by the russians is the only one where there could be more hacks just like this still out there yet to be discovered here's what he said. >> there could be. and right now, that's the big

question where's the next does it already exist and maybe it's not in use but just sitting there or maybe there's something that we've got to find >> mandia saying there could be more hacks out there still yet to find. that's what cyber security researchers like him are doing and thinks it's possible that the u.s. intelligence community did know something about this hack before he revealed it publicly back in december. he said that when they briefed the u.s. government on this, people on the other side of the briefing did not act entirely surprised by the news of the hack, tyler. >> eamon, why was this hack so much worse, harsher, more widespread than any other? >> the problem here is what you call a supply chain hack you get into the supply chain of a company, in this case, solar winds which makes software that a lot of other companies then buy and use. you put your malware in there. that spreads to all the other companies who are customers of

solarwinds and the russians then have access to all those companies as well and on and on. and because they suspect this is russian intelligence, they think it's going to be really hard to get the russians out of these systems because once they're inside these corporate systems, they can create all sorts of backdoors to let them in even if you close off the one thing where they got in the first way, there could be five other thicngs. it will be a challenge over the coming months and the years. >> eamon javers, thank you courtney >> thanks, ty. check out churchill capital. that spac plummeting after announcing long expected deal with lucid motors. even with today's decline, still up nearly 300% this year but is this strong selling the news reaction a sign we might be nearing peak spac? leslie picker has more on that story. hi, les. >> hi, court there's really a spac selloff across the board today look at shares of the cnbc stock

index down sharply today churchill capital. among the biggest decliner after announcing a long anticipated merger with lucid motors, the tesla competitor but it's not the only spac feeling the heat today northern genesis down sharply as is ark-like clean transition corp both of those announced mergers in the ev industry there's certainly a reckoning going on today but whether this is peak spac, that remains to be seen more than $130 billion in capital has been raised through these vehicles in the last year or so and sources say the pipeline is as full as it's ever been so i'm not quite sure we're at the peak yet, but spacs are starting to show shares up 500% before last night's deal announcement. so it's not that surprising that investors are taking this

opportunity to crystallize some of those gains the way the deal is structured also earning it some skeptics. there's quite a bit of delusion to public investors, many of whom also disappointed by the way the valuation was sfr structured, guys. >> very leslie i want to completely switch gears. hard left turn but robinhood backlash got cooler or did it, i don't know because michael bolton is now involved tell me about this. >> yeah, court, so if you thought the whole gamestop saga was worthy of a 1980s sappy. breaking up with your brokerage. >> t ♪ tell me all about it ♪ ♪ tell me who you sell my trade to ♪ ♪ tell me one thing more before i go ♪ ♪ tell me how am i supposed to

trade without you ♪ >> this song is in my head and be in yours the rest of the day too. singing about market structure an ad for public.com a rival of robinhood, that came under fire in recent weeks after restricting trading in certain names including gamestop in late january due to volatility but only conjunctionally related with a spotlight how robinhood makes money, through order flows. public takes an opportunity now and blog post say they no longer sell order flow. oh, and if you are so inclined, you can actually follow bolton's biggest trades through the app it appears he's pretty bullish right now on amazon and apple. guys >> oh, leslie, i've actually been seeing this ad all day long on twitter so it's already been in my head all day. that song takes me right back to

the '80s >> it's catchy >> makes me want to cry sort of. i just want to weep. >> and sway a little bit >> thanks guys. checking on bitcoin. down more than 10% back below 50,000. you see it at 45,000 10%. down more than 15. square is selling off too. are its fortunes tied to bitcoin? the company reports results after the bell is this dip a chance to buy and be square? we'll be right back.

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instead of you going to it. so when it comes to your business, you know we'll stop at nothing. welcome back to "power lunch. square down sharply heading into

earnings report today. rivaling legacy players with cashless options and todd gordon of trading analysis what do you make of the move in paypal today is this a rotation out of higher multiple tech names or perhaps this expectation that analyst estimates are too high going into tonight's report? >> seema, i think you see a rotation right now like i said earlier, a lot of the high multiple, high momentum stocks are under pressure. boring stocks are suddenly the flavor of the month. interest rates going up. inflation is being talked about. all that stuff is really crushing these high multiple stocks look, i love paypal. love square. they're disrupting they're innovating no doubt, cashless and contactless is the way to go i would prefer visa of all the payment stocks out there i think visa is the best play right now because if this reopening of our economy is real, visa is going to benefit the most so i think they have the biggest catalyst ahead of them.

>> todd, paypal also benefitted from crypto push and stock up 11% over the past one year. >> for sure. you know, they've added the touch list paypal and venmo qr code 72 million users last year totally user based 377. proper margins are really good at 26% you compare that to square, quarterly margins. 1.2. 44 times next year's earnings. that's expensive the selloff looks a little scary but only 17% which is similar to the last year at 16% above 250 and paypal adding crypto currency trading in november and we're supposed to be able to transact with crypto going forward, and before i went on air, actually bought some bitcoin on paypal. it's pretty good and you'll see a pretty good quarterly between bitcoin and paypal on the chart. so the two are definitely related. i hold it and i like it. >> got it. thank you for joining me

head to the web site for their look at the biggest discount buys in retail that's on tradingnation.cnbc.com court, over to you. >> thank you very much, seema. coming up, we look at a financial transaction. hot topic lately tax the rich or hurt the little guy? plus, we continue to watch today's tech selloff tech sectors etfs are heading lower here today "power lunch" is coming right back >> and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> in determining your entry points with rising stocks, look to buy pullbacks at support levels such as uptrend lines, prior lows, fibonacci retracement levels or moving averages i'm lee bohl and schwab is the better place for traders

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according to golf digest, woods's agent says he suffered multiple leg injuries and iisn surgery. that's all we have right now "power lunch" will be back after this we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved. the world around you may seem like an immovable, implacable place. it is not. it can be bright. quiet. and safe.

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welcome back, everybody. following the game stop trading saga, new attention being paid to an old idea, a financial transaction tax. it is now gaining support among democrats. one proposal introduced in 2019 from senator bernie sanders would levy a .5% tax on stocks

transactions and a .1% tax on bond trades. but would the proposal generate enough revenue without cutting into retirement plans? for more, we are joined by greg marsh of fiduciary trading partners glad to have you with us as i saw it, one of the plans out there is a .1 of 1% financial transaction tax. which of these proposals is furthest along, or gaining the most traction? let's start there. >> hi, tyler thank for having me. there have been various proposals out there between .1 and .5%. you know, i think the -- the one that's holding the most -- or getting the most traction right now is the .1% tax but what we are looking at here is -- this is being billed by its proponents as a wall street theft, right high frequency trade asking

those types of bigger traders. but in reality, it is a main street tax and i see that because if you look at the corporate or the retirement savings plans that are out there, there is about 100 million americans that are involved in these savings plans. two thirds of those participants, they make $100,000 or less in income. one third of those folks make $50,000 or less in income. >> let me interrupt you. excuse me just a main. i i think i get your main point here but i want to make the nexus between how the transaction tax leaps over the bridge and contaminates or gets into a 401k, an ira, a 403b is it because every time i put in by biweekly contribution .1

of 1% of this transaction to be taxed because it would be regarded as a transaction as opposed to the trading that would be done in that account? which is relatively rare >> exactly right any trading transaction. that's the gist of this. your biweekly contributions. another big area in retirement plans are look at target date funds as an investment in 2006, the pension protection act allowed for automatic enrollment you could move forward with auto enrollment that's basically letting your participants, your are enrolling them they have an opportunity to opt out. the department of labor said you can go ahead and do this, but it has to be -- those investments have to be within a qualified default investment alternative well, the qdia of choice right now is target date funds

there is about 35% of total retirement plans assets are investigated in a target date fund that's basically a fund of funds that go along with you towards your retirement age. into right. >> -- >> right >> some of those funds rebalance quarterly, some rebalance monthly. every time that participant has their account rebalanced an additional .1 or .5% will be charged. >> bottom line, the effect this .1 of 1% tax on transactions in a retirement account would be what over a typical investor's investment lifetime how much money would i lose? >> you would loose between $45,000 to $70,000 which equates to two or three years of working right? >> that's because you would be compounding on a smaller dollar amount, correct? >> that's correct. >> greg, i'm sorry, we have to

leave it there it is a fascinating topic. we will come back to you to talk about it more in the future. greg marsh, we thank you very much. >> thank you. courtney, it has been great to be with you this hour we are watching bitcoin. i know they are going to watch it for the next how hours as well as the dow, s&p, and nasdaq, which is now way off its lows. >> that's right. and the dow is just now positive here that is it for "power lunch. now over to "closing bell. >> courtney, tyler, thank you both very much welcome to the "closing bell," everyone, i'm wilfred frost along with sara eisen. the ugly turn lower continues on wall street, although we are well above the worst levels of the day. let's look at what's driving the action first off, take a look at the one-week chart of the nasdaq we were off by more than 2% of the lows of the day today, and down over 5% for the week as a whole. let's also have a look at the 50 day moving average we are below that level, too high rates continue to be the