ton of stock, and they are doing a number of right things and like the story. >> dr. j, you have to be quick. >> dr. kings and i bought it in the show, draft kings. >> okay. scott? >> cleveland-cliffs the show is over. >> and tripadviser. the trip is ready. >> and thanks, scott. and welcome, everybody, i'm brian sullivan the drunk man in the show. no i am not drunk or in the show, but that is how gu againagain h -- guganheimer explains the bond paper, and he is going to be out how to explain what it means and where to go. underweight and how to play the eb craze without spending $80,000 on the electric car. and he is called the cereal spac dealer and financier and he is

going to join us to talk about the new investment cybersecurity, and new segment called "show and tell" and we'd tell you about it, but we'd rather show you and we will a bit later in the show. but first, kicking it off to show you what is happening with the money after the best day of the year, dom chu, and taking a breather today and well deserved after yesterday. >> well, sully, i am going to show and tell you what is going on in the markets right now, becausely i will show glue the ma -- i will show you that the markets are about 118 points and hovering just below the 130 mark on the s&p 500, and 132 is the last trade there, and the dow industrials are taking a peek in the up territory, and stable markets after like you pointed out the best day of the year so far for the stock market again in 2021. one place to keep an eye on is what is happening with the gold

futures. they are up marginally on the day and 74 basis points and 12.80, and 17.35, but at one point we were at the lowest levels going back to june of last year. the gold trade has been interesting, because the down trend that you are seeing signals that perhaps the inflation is not as much of the worry despite the rise in interest rates and lot of folks are keeping track of the gold trade. then the stock of the day is full of action. it is being mentioned on the internet chat boards like on red dit, and the wall street boards are a lot of places for the rocket company, and rkt and that stock is up near the highs of the session, and that move higher in the last three sessions is roughly 65% to the upside, and some say it is a highly shorted names, and a lot of bets against it, and if the bets are against them, and keep an eye on rkt, and the stocks could see some unusual trading

entities, and brian, i will send it back over to you. >> dom, i don't know if i can call an audible or whatever, but have you seen some of the tv networks lately in the fox, f-o-x up another 8% today and up 30% and discovery and i kind of half joked last week that i said that apparently tv is the new tv, an investors are loving some of the tv companies as well, and not like we are talking our book or anything. >> no, the traditional media companies, and traditional tv companies with some streaming components to them, the but for the longest time, it was the netflix of the world but now it is discovery communications, and perhaps a disney or everybody else out there, and fox is on fire with regard to the stock, but looking at some of the names over the last year, and discovery is up 123% and viacom is another one with near term positivity with the trader and analyst mention, and watch the media companies especially if they have a new streaming strategy, and viacom, and

discovery communications and those stocks are doing well, and a lot of these have come out with new strategies and viacom and cbs is up 1.25, and paramount plus is rebranded with the all access which is kick off this month. back to you, bri. >> look at dom throwing in the ad for paramount plus. good media relations, dom chu. >> yes. >> you got it. everybody is watching regular tv. all right. well, despite the slight pullback in the market, overall, hauling in the impressive gains in the money, and simply continuing to pour in, and in february, record amount of cash pulling in the stock etfs from the growth of vaccines and additional stimulus or c, all of the above which is prompting bank of america to warn the level of wall street bullishness is getting close to the sell signal. hmm. joining us now with more is nancy davis founder and chief

investment officer at quadratic and also rich over at the investment industries and i don't know how your business is fitting on a card, but the macro, and maybe not nervous, but do you think that much of the gains in the near term for equities have already been made? >> you know, it is the ek twi market is forward looking and pricing in that we are going to soon have herd immunity, and get back to normal, and a huge amount of pent-up demand, so i would not say it is necessarily priced in, but it is pricing in growth, and obviously any hiccup with the vaccine rolled out being an issue, but i don't think that it is unwarranted necessarily. there is a lot of pent-up demand, and we are having huge fiscal spending. i did see that bank of america report, and the big difference there missing is in 2007

interest rates were well over 5%. so, comparing to it '07 to now, i don't think it is really comparable, because we are talking the about a very, very different yield environment. >> fair enough. rich, do you -- well, i guess that we have to compare something to something, right? so we go back to '99 with the technology and emoney or back to '07 to nancy's point, but to your point, is there any historical comparison to what is going on right now because we have a global pandemic and twhaun is arguably we are coming out of it, but it is still going on in much of the many parts of the country? >> yes, it is tough to look back historically and find a good comparison with the pandemic-induced recession, but what happened yesterday is simply the market recovering from what was essentially a panic attack last week in reaction no inflation fears and the bond market move. but the markets are both bonds and stocks tend to overshoot in

both directions whereas the economy is not as bipolar and moving from freezing cold to burning hot in the blink of an eye, and right now, we are in the reflationary and not inflationary environment. last year we had what is equivalent to the economic flat tire and so we went flat in march, and it is quite a bit of room here to reflat or reinflate the economy. slack in the labor markets and labor forceparticipation rate is down, the output gap is as large as i have ever seen it, and close to historical large in the trillions and the herd immunity, and even tony the fauch doesn't want to bet on the over/under on that one. it is 2022 the earliest to get that. so some room for the healthy economic growth here, so we are on the reflationary trade and not the inflationary trade.

>> global in 2022 and i'd take the deep under on that one by the way for the united states. nancy, huge swathes of the american economy doing well. "the new york times" had a really fascinating piece today that state budgets that were the quote experts said that were going to be destroyed by the lockdowns are actually now flat. in fact, some states are well up in 2020 from 2019, travel and leisure and hospitality is a different story and complete depression in that area, but my point is talk about adding $2 trillion to the american economy, and will that push us over the edge on inflation >> well, the fed, you know, to your point, brian, they want inflation, right the goal is to get the economy and growth to get the unemployment rate down and reflation is definitely the name of the game right now, but the big question is whether, you know, we are going to have

inflationary pressures. i don't necessarily think that it is going to be a negative thing for the equity markets, and quite frankly higher 10-year yields would be a healthy sign for markets, because it would mean more bangs extend capital to main street. so when does the borrowers go short term and stay long term, so i don't think that the market should be worried about the higher 10-year rates but higher front-dated policy rates. >> so, rich, without getting into the science, this is not a financial crisis, and this is not 2007, and 2008, but a financial crisis if you are in transportation or travel or hospitality and leisure, and every other sector of the economy has been adding jobs. the only way to have the fed maximize employment is if they vaccinate everybody tomorrow. this is tongue and cheek, and this is not a traditional financial thing where the monetary or the fiscal policy are going to help.

>> well, yeah, i may disagree or take the other side on that, the and the fiscal stimulus, and monetary stimulus are necessary to get back just to where we were prepandemic, and what were we down? four or 5% real gdp in 2020, and so it is going to be five or ssi percent to get back to even than is going to take some stimulus to get back to what we lacked last year -- >> but that is only one sector of the economy, rich, travel and leisure, and every other sector is doing well. >> in some of the growth sectors have done good. >> it is cheap money to fly, but i can't fly, because if i fly i have to live in my basement like i have been doing every week quarantining in our home. and this is the problem. >> well, how much do you want to

get out of the house and how much do you want to go to someplace different and get out? that is the really the pent-up growth of what you are seeing in the equity market is starting to price in a normalization, because i want to get out of my house, and i'm tired of being able to go travel again and enjoy the hospitality and leisure and the markets are starting to price in normalization, and that is a good thing for us all. >> it is a fair point, and nancy and rich, we will continue to be fair, and normalization is a relative term. i have been to texas, and florida and south carolina and a few places in the last few months and the restaurants are crowded, and the airline flights are full, and the normalization is a very localized and regionalized term which is hard to remember that when you are living in the northeast. i will see you in 2024 at a conference. nancy and rich, appreciate it, and best to everybody. thank you. >> thank you. >> and so we will evolve on that and get some more good news on

the vaccine rollout. historic partnership perhaps and the kind that we have not seen maybe since world war ii. merck is teaming up with johnson & johnson with the vaccine, and meg tirrell is joining us, and meg, when is the last time that two huge competitors decided, we will work together for the good of humanity. it is a feel-good story. >> it is, brian. when you see two unique partnerships and two pharma companies coming in, it is with biotech, but it is with these two companies, and jen psaki is just talking about this at the briefing just now, and this is what she said. >> learned early on, that they were, well, not early on, but recent days and they were behind on the manufacturing capacity, and so we took steps to ensure we could capitalize on the

scientific breakthrough. >> so sake psaki is saying thatn j j&j said they were behind, and they want to deliver 20 million by the end of march, so we don't have details of how much that is going to speed it up, and we should get some details from president biden, but we know that merck is going to dedicate two u.s. facilities to filling the vials and making the vaccine itself, and so it could take several months to get the facilities online, and it could double the j&j vaccine, and the press was pressing jen psaki on this of how it could produce more than a billion and we don't know, but merck says it is steadfast to contribute to the global response to the pandemic,

and address future pandemics, and so we expect to hear more from the players today when later president biden talks about this in more detail, brian. >> to your point, yesterday, meg, we will be fully vaccinated here probably by summer, and have enough doses. this is a global problem to rich weiss's point, and maybe 2022 for the world next year. so important part of getting this out for everybody else not just the united states, and meg tirrell, thank you as always. >> thanks. >> all right. on deck, a big exclusive with one of the biggest names in investing literally. guganheim on the latest bond blowout, and why they are acting like a drunk man in the snow. are you looking to get into the vehicle craze and you don't have 80 grand to sit around to buy a electric car, and you think that tesla is overvalued? well, we have a name outside of the mainstream, and it is

connected. and it is soaring and who is that mystery chart we will let you know. we are back after this.

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under the radar vehicle play, and initial coverage is mp materials with the buy rating and that is the only u.s. minor that is using the materials to use magnets to go under the electric vehicles and the stock is up to 7% in the day, and the run they have had in the last six months up 240%, and this is where you roll the video, guys, me at the mine in mountain pass, california, and remember two years ago we were out there when they were a private company, and this is accounting for most of the rare earth material mined in the united states. queue the video, and in is going to be carlos deal ba joining us by phone to make the case, and this is where i have been to the only asset out there on the nevada state line with jim latinski, and a lot of competition out there like the chinese competition who send lots of parts out there, and what is making you bullish on the mp story

>> yes, brian. very exciting asset they have out there, and the opportunity they are exploiting. what makes us positive on mp materials is the outlook, the great outlook that we see for the demand in the key product which is what is going to the power of the vehicles and the wind turbines, and this is the fu future, and we will see the significant growth for the trends that we are experiencing right now, and that is what is going to drive the demand for the mp products and we think that it is going to boost the demand. >> yeah, and we are going to say words like mendioprasim and what are the markets going to be, carlos >> yes, two key markets for

them, and the ndpr which is the easier way to pronounce the elements that are going to be used. one of them is electric vehicles and the second is the wind turbines. when you are looking at the transition of the information that they were experiencing in the auto sector, it is going to be important for the rare air as they consume 2.8 key low grams wit -- kilograms for the electric vehicle, and for the current combustion engine that we drive today. and look at the wind turbine, and those offshore that is going to drive the demand for the type of the magnets that use the product that people uses, and those consumer are around 650 kilograms of the magnets

kil k kilowatts that we are using today. >> thank you, carlos dealba. >> and now, we will talk about what the potential new utility plans may mean for you new investments. and should you be ready for a new boom on the oil and gas deals? we will have a rare interview with scott minerd. four floods, a fire, a hurricane, and obviously now we're in the pandemic. this is during hurricane harvey. the water was like a river. - when you talk about nasdaq, people don't think about insurance or catastrophe risk

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all right. welcome back. we hope that you are having a great day wherever you might be. this is how the markets and your money are looking. up a little on the dow, but coming off of the best day of the year and the best day for a long time yesterday, and what can you expect we are seeing the dow up 30 points and the nasdaq is giving back a little of what it gave, off 0.3. and from the oil sectors it is oil and gas leading the markets and we are seeing the oil and gas boom this year, and looking at the names, energy up .25. and you can see real estate and

utilities are the laggards and those are interest rate sensitive. so we will talk about those, but they are interest rate sensitive. and now, stock one, trip adviser, and sharply higher on the upgrade to buy from neutral over at city group, and the group is sensitive on a product that is curious at $99 a year. and stock two is square up on news that is beginning the operations for in-house bank called square financial services, and the bank is going to offer business loans for the square services. and stock three is lemonade, and online insurance company, and also a drink. the company posting a slightly smaller than expected loss and better than expected revenue, but disappointing guidance for the current quarter and sending that stock lower, and investors have soured on the stock, and lemonade's ceo will be on today at 3:00 on the closing bell. now, let's step out of the world of money and business and over

the rahel solomon for business update. >> all right. brian, starting in california where 15 people have been killed in a major highway crash that happened 100 miles east of san diego. officials say that most died at the crash site. we believe that there were 27 passengers in this suv that struck a semi truck full of gravel. 14 were dead on the scene. three of them were flown out from the scene. seven patients were transported to the central regional medical center where unfortunately one has died since arrival. >> and getting the latest developments on this accident tonight on the news with shepard smith at 7:00 p.m. eastern. the supreme court appears to uphold the new voting restrictions in arizona and such a decision could make it harder to challenge other voting measures that the republicans have opposed since last year's election.

overseas, russia says that it will respond in kind to the treatment and imprisonment of critic alexi naley navalny. >> what a terrible story on that wreck. and another spac making a debut, and backed by the big time heavy weights in the finance world, and including financier and investor bill foley. and now it is time for "show and tell." we will show the chart and tell you the story. the stock is target. and following comments by management, it is supply management, and stock is down 5%, and presenting a surge of post holiday shoppers.

and here is brian cornell. >> january was a surprising month, and if we do this another 20 years, we will be surprised to see the january comps grow over 30% or saw a surge of traffic in the stes and growth over all of the categories.

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well, this year is quickly becoming the year of the special purpose acquisition company, the spac. with new data from goldman sachs with 75 of these blank check companies raising $56 billion this year alone and it is march 2nd which is average of $1.5 billion per trading day. one of the latest countries to take this route is complex, and the analytics platform which is merging with a blank check company called casper. it is valued at $1.5 billion and the account is bill foley on the past funding as well, and joining us is jason crabtree is the account analytic, and also

ceo bill foley owner of a sports teams and so much more. and both of you are west point guys, and so jason, cybersecurity, and solar wintech, and the more we learn about it, literally bad guys in the systems for months undetected and how much are you learning about cybersecurity right now? >> looking at complex, it is one of the most advanced companies in the world that allowed lateral movement, and that is the centerpiece of the story at solar winds that are not detected by traditional solar winds. so we are doing that with most of the companies and not just in the corporate world, but in the government and national security space. >> and looking at some of the product portfolios, jason, i saw finance, and i am thinking to myself, are you trying to go after a little piece of the bloomberg empire as far as the

computer terminal? >> well, thinking of the future of risk, everyonewants to understand how risk and data are colliding to make better decision, and cyber is one of the most real and challenging risks and we have been building a platform to take vast volumes of information to use that to support risk taking information and especially around cybersecurity, and it is the future of cyber insurance, and the future of the cyber markets. >> bill, i mean this with respect, you are one of the more complex, and you see what i did there, one of the business guys out there, and fidelity holdings, and dunn and brad street, and in so many business holdings, and the black knights hockey team, and are you worried that it is getting overcooked? >> well, this deal is with jason and the team. and we invested in complex about

2 1/2 years ago and and so we did it because we had a breach at one of my companies, a small breach at one of my private company, and jason and his team came in, and they determined how the breach happened and fixed it. we are still working with them, and i was really impressed with the team, and the way they do business, and how sophisticated they are. and you heard it. for a layman what he suck tag about, it is really -- for what he is talking about, and as far as the spac market, i am concerned that we have a lot of spacs formed, and what kind of, and the types of businesses that they are taking public, and really the appropriate business to go public at this time, but with our spacs we are trying to always invest in the real companies with real revenue and real ebita, and so we will continue to do that and spac is a great alternative to the ipo

market. but, i think it is as many as you and many others feel -- >> bill, bill, let me jump in on that, and why is that such an alternative for the ipo. and the ipo market was, and the ipo process has been sort of the same minus a dutch auction here or there and the way that google did it and others for decades, and so is the traditional ipo now dead, or are the investment bankers going to be looking for work >> well -- [ laughter ] -- they seem to have plenty of work to do, but the spac is the alternative to the ipo process. the ipo process is long and drawn out. we took dun and bradstreet public last summer. we worked on that transaction for about 8 1/2 monthss, and thn when you are done by the end of the day, you are subject to the vagaries of the market, and are they going to accept a ipo at the end of it, and then you

raise the money and form a trust and find the transaction that you want to acquire and it is much more abbreviated in the spac and much more bet forea corporation to monetize the investment fully or partially, and in our case in a partial monetization in blackstone, but still our partner going forward. so it is a simple way to execute a public markets transaction. >> but i guess what i am trying to understand, bill, is that these kind of came out of the blue. they have been around, and i get it, but they kind of the pace of them in the last six months has been unprecedented you heard the numbers, and you probably know them by heart anyway, when we were coming in, and i mean, my take is that somebody who has been doing this for 26 years, are there that many good company, and you have found a good company in complex, but that many good companies out

there to buy, because if there were, why wouldn't we have had this before? what changed is it the pandemic or the fed policy >> i think that it is really the pandemic. the pandemic shutdown the public markets for a period of time, and that when we did our first two spacs was last may and last june and then in august. and the pandemic made it possible to do zoom calls, and have zoom calls, contact your investors and take it public and then start to find the companies and do your search. but i do worry that we have a lot of spacs now. a lot of spacs. are they taking the right companies public. that is a concern. >> well, listen, guys, time will tell, and jason and bill, i wanted to show you something because you are both west point grads and my father is ten years navy and i gave a speech, and

they gave me this, and it is like super cool, and i have it in my office studio right here, and shoutout to all of the cadets at west point, and i don't know if you can site, but i don't usually get two cadets on at the same time. >> thank you, brian. >> i love this thing by the way. and so coming up a big name with global markets, and i am going to set this down. and so, now, parts the bond market or acting like a drunk man in the snow. this is coming up exclusively. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq all right. i call it the taper tantrum, the bond blowup or the caper madness and whatever you want to call it last week, but don't call it insignificant. the yield slamming the stocks a few days and got a lot of people nervous about the inflation risks and the markets in general, and with the possibility of nearly $2 trillion in stimulus coming on

what has already been put in, and coming out with what is a sharp economic recovery starting to take place in large parts of the country is inflation and maybe a sinking u.s. dollar and a real possibility. joining us now for "the exchange" exclusive is scott minor who has put out a new paper called "a drunk man in the snow" and it is a great read. thanks for having you on again, and you have said it is a foregone conclusion that the rates are going to bottom out, and you beg to differ and tell us why and what is happening >> well, sure, brian. i have to tell you that, i have heard so many times that we have reached the low and in interest rates since the 1980s that, you know, every down cycle the end of the bull market, but, you know, the work that we have done that is based on the work of

eugene fama for his work this the interest prices and the fall of the random walk which is the drunk in the snow is the reversal of the trend in the 1980s, and so it is a fool's game so far to every time we make a new low in rates to predip predict the end of the bull market, and so until the market tells us something different, we are not in a hurry to join the crowd. brian, a lot of good reasons to believe that we haven't reached the end. one is the prospects that as the u.s. treasury keeps spending all of its cash, it is driving the interest rates lower, and even though it is stimulating the economy, because as the cash is getting into the economy, people are investing in bonds and stocks. the other thing, and i thought

that cnbc did an excellent story yesterday on this is that there is now the discussion about the idea of another operation twist where the federal reserve because interest rates are getting so low in the front end of the curve and could go negative, they will sell their short duration assets like treasury bills and start to buy the longer mature ri assets that would drive the rates down. >> and that is -- that's the part of the story that is what our audience may not get, because they think you are getting a stimulus check and buy gamestop, but no, the surveys are showing that a huge percentage of the stimulus is going to be saved or pay off the debt. but putting something into the ek ching i-- checking or the ss account is a government knock-on effect even as doing something as benign as that with the stimulus checks. >> that is right. that is kind of what i get into

with the paper is that you to get into this arcane world of monetary policy. and how it all works at the federal reserve, but the u.s. treasury keeps the checking account, if you will, with the federal reserve. when they spend money out of that account, it goes into the economy, and in this case, it is going out in the form of largely in the form of checks to individuals. well, our experience is showing us in a lot of the checks that are going to people who don't need the money, and they are saving it. and so that money either gets deposited in the bank which means that the bank has to go buy some sort of short maturity or, you know, a low-risk security like treasury bills or notes or asset-backed securities or clos or whatever, and the market or the person invests the money directly into the market, and that's what we are starting

to see with, you know, the asset valuations is that as the government keeps putting the money into the economy, it is unlike what we went through in the prior que experience, and people put it back into the bank accounts, and this is not what we did in 2009/2010. >> so we are talking about the domino effect that it is the weeds of the monetary policy, and the bottom line is that money which is largely paid out of the treasury, increasing money supply, potentially devaluing the dollar, and we could get into that, but do you believe or you are saying that the 10-year yields will go back below one percent, scott >> yes, the work is showing that as long as the trend is staying in place, which as i said, it has not been violated yet in 35 years, you know, the models are telling us that we are going to

have a 10-year yield that is negative. the mean expectation is for it to be about negative half of one percent. could be lower. but whether it is negative rates or just rates, you know, like which are barely positive, you know, i think that over the course of the next 18 months, we should expect to see a high likelihood that we end up with significantly lower long-term rates than we have today. >> i don't think that many people are saying that, scott. there is a few of you out there on the west coast, and you have your own special water out there, because you been right, but the bond market, that west coast bond thing definitely has its own unique views, and you probably have made a potential home buyers and home refinancers happy, but i want to read something from the paper, and it is very good, and you are around

the margins of the markets and this is meaning the money coming out of the treasury which is causing the m2 money to grow and soar to 25% over the past 12 months more than five times the average annual growth rate going back to 1960. so, there you have 60-plus years of history, and what do you care of that growth in money supply do to things like equities and the dollar >> right. well, i talked about eugene fama and milton freedman who won the nobel prize for his work in monetary economics basically demonstrated that there is a tight link between m2 and economic activity. of course, everybody is familiar with the idea that money growth will create inflation, and freedman said that.

he said that inflation is always and every weary phenomenon, but after that subject to long and variable lags, and so s ultimately this is inflationary, and that is a lot of people are running around now talking about inflation, but, brian, when you are looking at the t.i.p.s market, the inflation protected market, we are seeing the real rates going up, but it is not a rise in the inflationary protection, but it is a rise in real interest rates. a rise in real interest rates would be associated in the near term with appreciation in the u.s. dollar. now you might say, wait a minute, scott, 25% year over year real money growth, and we they economy could grow 8%, and inflation around 2%, but where does the other 15% go? so there is another concept

called the marshellian k, and so if the money doesn't turn into economic growth or inflation immediately, what it is going to do is to drive up the price of ags set assets, and anecdotally, we see the market going up, and the real estate prices and homes going up, so it is playing out exactly the way that the academics would tell us it would. >> well, scott, listen, i would love to talk more about it, and guess what, we will. so what i am going to do is to ask you the sit tight for 12 minutes, because after the tv conversation, scott minerd, thank you, and we will do a second part of this exclusively on cnbc.com/pro to continue this idea of the asset inflation with scott, and talk about the cryptos as well, and go to cnbc.com/pro, but later on, i want to record that interview with scott right after this show is over.

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all right, welcome back. crude oil trying to break a two day losing streak. ayman nassir saying he expects oil to hit pre-pandemic levels by next year as global demand recovers our next guest speaking at the conference tomorrow, virtually, of course, and says the rebound for crude is seeing some green chutes in the m&a market and lead adviser on deals throughout his career great to have you on during this week next year looking forward to seeing everybody certainly in person as i ask going into the break, how's the pipeline for deals, perhaps pipeline deals which is

or was your specialty? >> yeah, it's definitely getting better, brian. part of that is obvious. $60 oil is better for deal-making than $40 oil but part of it is more subtle in that we're seeing the emergence of a few new trends. first among those is the perception that covid is abating, which which would be ay positive catalyst. and then biden's energy policy, particularly as it relates to drilling on federal land which could curtail domestic projection and then very real secular trend towards esg focused investing. if you take all of that together, it should mean that existing infrastructure and existing production is more valuable you're going to have more demand, less supply and a transition to alternative energy that in our view, is going to be

slower than most people think. >> has that been part of the thesis as to why some of these names? that's a special situation, i get it, pete, but it's not just the price of oil going up. it sounds like it's also scarcity of new supply when i say supply, i mean, companies and stocks because to your point, it's going to be a lot easier to buy something nowadays than to try to build something. >> correct massive amount of capital sucked out of this industry and that sends oil and gas, brian, tends to be self-correcting. if you starve the crisis goes higher i think relative to the public energy companies, most of hthem in our view trade below intrinsic value. i think there's a few reasons for that first, whether we want to admit it or not, this industry has destroyed a lot of capital over the last price cycle the second is that, frankly,

with investors making so much money in other sectors like technology and health care, the buy side lost interest in energy and then i think with increasing concern over climate change, we've had the oil and gas that nobody needs to smoke cigarettes but everybody needs to heat their homes. household goods helped with the pet row chemical industry and then with covid to travel. >> we'll wrap it there i was in houston last week, the back of the power loss and everybody is like, we need more natural gas because wind and solar are great but if they're not turning, we need something to do. that wasn't the problem but if things go down, you need everything to back it back up. pete bowden, thank you >> thanks.

speaking of all this, this thursday, we're going to be speaking with the ceo of petroleum, innovative for a more sustainable future maybe net carbon neutral barrel of oil may sound weird, but we'll talk with john kerry, part of cnbc's evolved live stream. 3:00 p.m. eastern. register now no cnbcevents.com on thursday second part of my interview on cnbc.com/pro "perun" arow lchstts up right after this quick break take care. we see homes staying cooler, without the planet getting warmer. at emerson, we drive the adoption of more environmentally friendly refrigerants, for a greener, more sustainable impact on our future. emerson. consider it solved.

welcome to "power lunch" on a frigid tuesday in march. along with contessa brewer, i'm tyler mathisen contessa will join us in a minute or two. here's the 2:00 takeout, everything from electric vehicles to solar stocks they're on fire but is there a green tech bubble? talk to