♪♪ hey there, mad money fans. i'm leslie picker, jim's off tonight, but you are in luck we have a special edition of "fast money" coming your way just ahead we're serving up summer stock sizzlers. what you should be doing with your money as we head into the second half of the training year including three big names you might want to bet on plus, is this the new target of the reddit revolution? this name rising the ranks on the reddit boards, what is it and how you can play it, and later, we want to hear from you. tweet us your stock questions at cnbcfastmoney. we'll answer some of them live

on air, but we kick things off with a record week on wall street the dow, s&p and nasdaq hitting all-time highs as we head into the holiday weekend. so where are we headed from here let's break it all down with cnbc contributor head of investment strategy at wilmington trust and larry mcdonald from hercules investments. james, i want to start you, there is a stat from bank of america that the first half annual inflows of stocks of $1.2 trillion is more than the cumulative inflows of the last 20 years so as we look ahead to the second half of the year, is there still capital left on the sidelines to put to work in stocks >> well, there's certainly an expectation for the momentum to continue the consensus estimates for q3 and q4 earnings growth is 61.9% which is the highest number since 2009 and so there's an

extraordinary expectation that the momentum from re-opening will translate interest consumer demand and earnings in the s&p 500 and based on that expectation and the consistent and persistent record highs that we're seeing in the indices all indications point to that momentum flowing through now that money being put to work is somewhat of a distorted number we know that many americans had additional funds put in their pockets through stimulus programs, and at the same time increased their savings rates last summer and last spring, and there was a lot of concern and so by combining those two factors we have this momentum and enthusiasm and encouragement going back to work as well as a bolstered pocketbook that, coupled with the increase in jobs and increase in demand for services from those job areas and hospitality and travel

and others, so they can move this combination of factors that drives that capital and drives the stocks >> meghan, james brings up a good point which is that earnings season is actually going to start in just a few weeks' time. i can't believe it's already that time again, but what do you think are certain sectors that are poised to prosper from this earnings season? >> well, looking out over the next earnings season and beyond to the next 6 to 12 months which is our typical time horizon, we are expecting a cyclical trade and the value trade to resume leadership a lot of it depends on interest rates and the trajectory of interest rates our view is the ten-year yield has no business being at 1.4% or even anywhere below 1.5% so we're expecting that to move higher i do think in conjunction with the excess consumer savings that james mentioned that would be really key for some cyclical

areas of the economy for boosting earnings which, when you're talking about these types of earnings figures, the surprise to the upside or to the down side, but i would guess more to the upside could be fairly significant so that could be another catalyst for equities heading forward and we're bullish on the equity market. >> james, what do you think are the best sectors over the next six months >> it's a great question what we look for is combinations of factors that drive growth and momentum and i think we're entering the summer season in any normal summertime you're going to see areas such as travel, hospitality and leisure benefit from the demand in those areas rising we have that coupled with the fact that we're just getting out of this covid-19 businesses are opening again, theme parks are opening again and movie theaters are opening again and there's going to be an

extraordinary move in hiring in that space and that drives energy backup and you saw catastrophic losses and you have a big recovery there and the common sense is that we'll be getting out on the roads and demanding and needing more energy and finally, we saw the spectacular rise in crypto crypto had such a cult following and had such an extraordinary run-up that demise was predicted all over the place i think it's somewhat stabilized and i think that the enthusiasm and the broad investor space that goes beyond traditional stock investment is persistent i think a lot of people were waiting for crypt onto come down and crypto could get a second life for going to the moon i think that's the expression. a lot of crypto followers following, so i would be interested in the second half of the recovery >> i think stabilization for crypto is a little different when you're talking about crypto

versus equities or even bond, but megan, the one sector that you both agree on is energy for the second half of the year, but what other sectors do you think are going to benefit here? >> we like materials which are a similar story to energy. we really see the global economic recovery driving demand for commodities, energy products and other companies in the material sector benefitting from that energy materials have also had a great run, but if you look at valuations on a historical basis, they're still relatively attractive based on the rest of the index. financials and specifically banks are another area that we really like. we see loan growth picking up. we expect this to continue we've had banks pass with flying colors, the stress test and basically get the go ahead for capital deployment and we expected things to move higher and buybacks and then back to my comments earlier on interest rates and the yield curve.

we do see the 10-year moving higher and the yield curve steepening or at least staying as steep as it is and that would be a very favorable environment for banks. >> james, as we kind of look at the existing market environment right now, there is this backdrop of inflation concerns and you mentioned crypto as a stabilization and there are pockets of the market that are experiencing volatility and have kind of spooked certain investors about pockets of excess and so forth. there, of course, is covid which hasn't completely gone away yet, and of course, the delta variant which is a significant risk out there. do you believe that any of those headwinds will be significant in the face of the current market environment or do you think that investors will brush those off and focus on other areas >> it's a great question, and we have to look at the behavior post-covid of the stock market in ways that we've never looked

at it before this is not your grandfather's s&p 500. we've had extraordinary innovation drive and huge valuations in businesses, and the s&p 500 is dominated by the tech story and then investors have become more savvy we've seen more rotation between sectors and between pockets of opportunity in the stock market than we ever have seen before and i think the rotation in the bull market continues and the momentum that we've seen has catapulted indices to new record levels we have not seen a 10% correction in the s&p 500 since covid hit. this is different than in any other period of time where we had that much disruption in a short period of time if you're in the camp that there was a recession the recovery was faster than any recession in history and that momentum continues to play out in a way that gives us an expectation that brushing off rising

consumer prices and rising inflation and rising of valuation levels the market brushed these areas off and so i consider today's investment or the persist eps ence of the buln the market, and i look for particularly risk for the second half and obviously, we want to see inflation comes back up and the fed is under the impression that inflation is in check and i think we might get a surprise rate hike or at least indication of a potential rate hike than we expected and there's geopolitical risk and we have new leadership in the middle east and we have new leadership in the u.s. and there's risk surrounding cybersecurity. the new cold war is an electronic war and we don't know at any point when we are susceptible to attack and then we have the seasonal pullback in august, if you're old school and look at stock markets and we think that in august there is a preponderance of opportunity for a slowdown

if we get employment continuing in that sixth -- the six consecutive months of record gains and recovery of employment, if employment comes down before 5% is projection and it is over 5% then they'll come out and say we don't need to continue to keep pressure off of interest rates and we may get, you know, a change in monetary policy stance. all of these things will probably be in the arbiter for how the stock market behaves in the second half. >> so this time may be different, but the one constant across history is there are risks and thanks for laying those out for us, james mcdonald and megan shue we are getting started on on the special edition of "fast money." didi falling 5% and what had investors falling out of this name and amc tumbling and get this, it's no longer the most talked about stock on reddit we'll tell you who just took that crown itthof that and more wh e

special edition of "fast" returns.

welcome back to the special edition of "fast." i'm leslie picker. didi pumping the brakes.

the ridesharing giant taking a tumble after a crackdown let's go to christina for those details. hey, kristina. >> talk about timing this crackdown comes two days after didi's successful u.s. ipo and the communist party 100th anniversary celebration. regulators are saying the review is in order to prevent national data security risk, maintain national security and of course, protect the public interest, but this time it's the cyberspace administration of china that's cracking the whip where in the past it's been the state administration for market regulation didi was also ordered to stop registering new user, but keep in mind didi holds 90% of the ridesharing market in china, and the ride hailing app isn't the first to come under this watchful eye of chinese internet regulators beijing is proactive in restraining the growing influence of china's largest internet corporation so you wonder why in because

these internet giants gather up information daily on hundreds of millions of users and china wants to tighten the ownership in control of that data. so didi is now one of at least 34 companies that have been ordered to rectify their anti-cometive practices over the past year or so. companies on the list for too much market dominance, tiktok, bitedance and baidu and those are just a few they could put on the screen and let's want forget the record-setting fine over alibaba over alleged anti-competitive behavior. they ordered a thintech titan and it was to curb the power of the internet leaders and only after they grew into tech behemoths. leslie >> thanks, kristina. it is unclear what prompted the crept crackdown, right the chinese government didn't

say anything in particular or why now? >> that was the very important thing, too, is that they've been completely vague about the entire process those two points that i listed off the top, the fact that they protected national security and those are the details that they got and this was the first time the cyber crime group is putting forth such a strong stance against a company. there's a lot of unanswered questions in regard to this which is why it is so vague at the moment >> yeah. unanswered questions and hopefully we can pose them to our next guest and thank you so much, kristina for the comprehensive breakdown there. so for more on china's crackdown on didi and other aspects of the chinese internet tech economy, we are joined by cnbc contributor duardick mcneil from longview global and he served on china security relations with the u.s. thank you so much for being here and especially with the case of didi, what is the signal that

you think the chinese government is trying to send? >> thanks for having me, leslie. look, i think there are still a lot of unknowns and there are certainly a lot of layers behind this announcement, but let's take them at their word that they are concerned about how didi collects stores and secures data didi has been deemed a critical information, infrastructure operator and by that, china means they are very concerned about the amount of chinese citizens' personal and consumer data being housed with didi, and to be clear, i think didi has come under scrutiny before about data you'll recall that two of its drivers murdered after a sexual molestation case riders and so there have been a lot of complaints about how this data is used and whether or not data is secured and didi has come under scrutiny for pricing schemes and ride hailers and

whether or not they have an apple or android phones and this is not for those who have been watching and this is not a surprise that they would come under scrutiny and didi listed some of these concerns in their prospectus so they were very clear that they expected to be visited by the regulators, but probably not the cyberspace administration, but it makes sense that this would be the case that would go to the cyberspace administration >> i actually looked that up because the timing is interesting as kristina mentioned and they looked public two days ago and all of a sudden they saw this news come out and they did note in april 2021 that chinese regulators including the cyberspace administration convened and asking them to evaluate their businesses and to see if it might violate anti-competitive policies and they were one of the 30 companies and they said that their self-inspection discovered that they may have problems and may have issues that would run afoul of regulators so do you

think that there is a chance that they knew that this was coming before it came out. i'm just curious giving the timing of their ipo. >> hard to say, but i would imagine that they had some idea, leslie, but you raise an interesting point. the difference between how this was handled versus how ant was handled and i suspect, again, the chinese government could have shut this down at any point in time. they wanted to, but unlike ant and jack ma, it seems that didi has been playing ball, saying all of the right things and doing all of the right things and had it not become a political pain on the back side of the communist party and they let the ipo move forward the government has learned something from the ipo and despite all of the toxicity in the united states-china relationship, u.s. investors still had an appetite for this didi ipo and that will communicate a lot to beijing >> interesting point and they

just saw a graphic on the screen reminding our viewers that 90% market share didi has in ride hailing and not too surprising that that's drawing attention from chinese regulators. thank you very much for your perspective. we appreciate it >> thanks for having me, leslie. >> still ahead, is this the next big target for the reddit trade? this stock getting a lot of pickup on the wall street bets board. you can see it's actually traded lower over the last few days or so, but we will bring you that name ahead, and later, stranger things for netflix the stock basically flat on the year, but is that about to change we're streaming about that trade. stick around we're back after this.

welcome back to this special e edition of qwes"fast money. i'm leslie picker. let's get to kate rooney for more >> hey, leslie one big risk here. more of what happened back in january for robinhood. he talked about customer dissatisfaction, litigation as well as congressional investigations around gamestop they also highlighted the need to raise capital pretty much overnight in order to meet deposit requirements bottom line, robinhood says, quote, we cannot assure similar events will not occur in the future at the time robinhood was able to call up its venture capital investors to secure more than $3 billion. that deal was in convertible debt at a 30% discount to the upcoming ipo price and as a result, robinhood reported a $1.4 billion loss for the first

quarter. that had to did with the dead deal as for the public company a similar event could hit shareholders when available cash is not sufficient for our liquidity and growth deeds, the start-up might need to engage in equity in debt financing to secure more funds they cannot be sure that would be on attractive terms, as they put it and if additional funds are raised through debt, robinhood stockholders could see dilution back to you. >> you bring up an interesting point because normally in these prospectuses, if santa claus were to hack into our systems we could see a materiel adverse effect to our price. with these, these actually happened the risk factors are not hypothetical they happen and they happened in recent memories. does that change the risk profile of robinhood relative to other companies that may be out there? >> this was a big event for

robinhood. like we mentioned they raised a massive amount of money within a couple of days in order to keep the company afloat and at the time the ceo called it a fooi sigma event which meant it is a one in 3.5 million chances of something like this happening. the idea that it would be in the prospectus as a potential risk of happening again caught a lot of investors or potential investors by surprise. excuse me, dog barking caught people by surprise. >> it caught your dog by surprise, too. but a lot of risks >> she read the prospectus and has thoughts on it >> we are open to her thoughts >> exactly all right, kate. we appreciate it take care and have a great fourth of july weekend >> thanks, leslie. >> let's talk about robinhood's big plans to go public joining us is justin, co-founder of alternative data and great to

chat with you again. i'm curious, what the sentiment is right now on robinhood with regard to on reddit with regard to robinhood's ipo i ask because they say they're allocating anywhere from 25 to 30%, so do retail investors actually like the idea of this deal hi, leslie thanks for having me robinhood is not public yet, but the chatter on wall street bets has been tremendous. more than any other stock on there that currently exists. most of the sentiment is relatively positive but there's still a large number of the community that remembers the gamestop fiasco and it is quite negative, so i think it's going to be really interesting when the retail audience gets to participate in such a way which is quite rare.

>> so did i hear that right that the chatter about robinhood is actually more than any other stock on the platform right now? >> right now, it is. yes. i think you bring up a good point and as someone who followed that gamestop saga very closely and found some late evenings on the reddit boards, i did notice that there was a lot of commentary even back then about robinhood, its prospective ipo and what that might mean just broadly speaking, do you think investors will be bigger participants in ipos if they have more access to it is ipos something people are even talking about in being interested in getting allocation to or do you think this is kind of a more of a robinhood-specific aspect to their deal because of the nature of their business? >> yeah. i think more retail investors will have more access to ipos. i think robinhood is being a pioneer, in a way, but i think

retail investors have to do their own due diligence just because something that wasn't previously available is available doesn't mean it is a good opportunity tech ipos have done very well, but there are many that have not, as well so i definitely encourage all investors to do their homework. >> we've been teedzing this all show in addition to robinhood which seems like it's gotten a lot of attention on reddit this week what other company and what other new name is rising through the ranks in terms of trending topics >> yeah. so one name that's cracked the top 20 recently is alibaba alibaba got hit hard in the tech sell-off two months ago and it's in the top 20. if you look at alternative data. they've been expanding very heavily in the last few months

the number of jobless things they have is up over 40% so the company is in pure expansion mode and -- yeah i think reddit or wall street bets are taking notice >> it appears to not have moved the stock price yet, but a pretty big float for alibaba at this point in time so definitely one to keep an eye on justin, we appreciate it >> thanks for having me. still ahead, bezos takes a bow. the amazon founder stepping aside as a new ceo takes the helm we'll break down what the change at the top means for the future of this trillion dollar tech titan and don't forget to send us your quesonantwtis d eet us @cnbcfast money and we just might answer you on the air. we'll be back right after this ♪

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welcome back it's the end of an era in amazon and jeff bezos wrapping up his last trading day as ceo of the company founded two decades ago. let's go to deidre bossa for what's next for amazon >> while it is almost day one for amazon, monday kicks off a new era, andrew jassy and fresh

challenges jeff bezos has created share value over the past decades and a start-up mentality that persisted even as it became one of the biggest companies in the world. jassy begins his reign with a somewhat softer approach empathy and a goal of becoming earth's best employer and those were added to amazon's leadership principles yesterday as the company has more than just customers it obsess over, there's a growing workforce, activists and lawmakers all scrutinizing its size and influence and there are still investors at a time when amazon is facing more competition in the crowd and the commerce sales that are said to slow post pandemic bezos' is the executive chair and he will still be involved in major decisions and it may fall to andy jassy and jassy, not bezos, is likely the one to face congress and antitrust pressure

much like that fell on pachai. he has been there from the very beginning and he has pioneered its cloud business and while bezos hinted just before he left that that could be media and entertainment through amazon studios and that task will fall to andy jassy. back over to you >> interesting a large tack sk ahead of him. the date with significance amazon was incorporated on this day 27 years ago so what can we expect from the jassy era? gene munster joins us now. hi, gene >> hi, leslie. so deidre laid that out quite well for us and as "the wall street journal" describes it andy jassy will be filling one of the biggest shoes in business coming off the heels of jeff bezos in that role

given how the tech industry is so often characterized by this idea of the cult of the founder and the ability to move fast and break things is this such a mature company at this point, that as long as they can succeed in succession it will be okay >> it does change really the pressure point of the whole conversation which is around culture and this is what happens with apple, steve cook and jobs and that transition and it was important for apple to maintain its culture of excellence and they created apple university and it is a program where employees can learn about the things that steve jobs was passionate about and so tim was there not from the start, but was there from the mid-90s and it was a good transition i think that andy sets up that culture transition better than anyone else and he has been there almost from the start.

he is considered by insiders amazonian which is, i think, the highest cultural oifidentificatn that jeff bezos could give someone and ultimately, i think that is his biggest challenge and so then the question is what is the culture of amazon there is the change that deidre mentioned that there was the addition of empathy and that's consistent with jassy. he's more soft-spoken. i think that he is a better listener than bezos and so i think that plays into it, but that's really the center of the culture. the culture, as you talked about fast and break things and we can talk about the areas that they can continue to innovate in and i suspect that that road map is in place and my bet is that he's going to be successful in extending the company's winning over the last decade, two decades. >> what are those areas of innovation that they need to work on? >> so i think it starts with

fulfillment because it might surprise people because it doesn't seem very glamorous, but when you talk about what's propelled amazon and the speed with which they get to products to people and the fulfillment question over the next decade is going to be beyond fulfillment centers which they've done a good job of building over the last five to ten years, and it will be about replacing machines, humans with machines and not just in full fillment centers and in final delivery, they have a project going home fulfillment is another big area and jassy, 20% and that number in a decade is 30+%. i'm not as opportunity mistec that that's going to be a game changer for amazon and the last area that will be a changer is what's going to happen to brick

and mortar obviously, we've taken a step away from brick & mortar, and i think people will slowly engage rate -- the most compelling consumer experience which has been the result of the past year, but amazon on on the way things are inventoried in stores so i see fulfillment, aws and what i see as juicy opportunities for jassy and the next decade. >> as you look at succession and tech in this timing in particular do you think that bezos is bequeathing a ceo role for a company that's great to fulfill, no pun intended, the pillars that you laid out or is it more of an uphill battle

given the face of regulation and given the face of competition to really get where it needs to be without add in investors' piece. another important piece leigh the groundwork and how to treat them when they go into it mode, and i think they can go interest multi-year investment phases and not necessarily hurt retention with the stock going down, so i think that that is very important. we talked about the competitive piece. i don't want to largely dismiss the competition, and i would say if you and i were going start a business today and we were given $25 billion to compete with amazon i would probably return the money to the investors so i'm not as concerned about the competition, but i think that around legislation -- excuse me, regulation, i think

that obviously is an unknown, and i think it is a small impact about their fair dealings with their third-party sellers and that's kind of the center bull's-eye of regulators and something that we'll hear to come, your pocket to compete to am, that i think reg laters will be you aring why about the anticompetition involved and we really appreciate your commentary, gene thank you very much for joining us and have a nice weekend >> up next, we're tackling your questions and one investor wondering if it's time to take a bite of apple and we'll get to that when the special edition of fast returns

welcome back we're coming up to the top of the hour let's get to rahel solomon for what's going on on the news. >> coming up on "the news," the desperate search after the condo building came crashing down. now there are new concerns about a hurricane headed toward the coast and we are live from surfside for the latest. help happeneded to stop hackers

inside the boom to defend company assets all that plus a major u.s. track and field star suspended ahead of the olympics. now what this means for team usa's chances at gold and all of that when the news begins at the top of the hour on cnbc. >> i won't be missing it i hope you don't, as well. thank you so much, rahel all show long we've been asking you to send us your questions and you delivered. so let's tackle some of them here to break it all down, victoria hernandez thank you, victoria. we've got a lot to get to here let's dive into our first question this one's on apple. hey, fast money. travis here from new york. my question is on apple. we've seen a rotation out of big tech however recently we've seen the turnaround and most of the losses abating and do you expect apple's recent run to continue thank you very much. >> all right, victoria, what do you say? is there room to run with apple?

>> so the short answer to travis' question is yes. there is room to run, but saying that, leslie, doesn't mean that i necessarily think it's a cheap stock, and we have earnings coming up at the end of this month. apple tends to run up 1.5%, close to 2% for earnings and if you're looking to do a shorter term trade i would be cautious if we get ready for earnings first quarter are some of the best earnings reported ever for apple and i'm not sure we'll see that again in the second quarter and i would assume they'll still be strong so if you're looking for a longer term holding in your portfolio, i think apple is a great name because the trend higher will continue over time just be careful in the short term because of earnings. >> is that the solution to tech companies that may have run-up and may have a significant premium a tafrped to them from a multiple standpoint to buy now with the plan to hold for the long term and if so, how long term are we talking about here >> so we are longer term

holders. and that's the way we tend to look at all of the stocks that we are buying to put into the portfolio. so we want something that has longer tomorrow growth potential over 12 months, over 24 months and then you can hold that in your portfolio you don't have to worry about some of the volatility eaven though the vix right now is telling us that we'rat low volatility and put it in your portfolio and take advantage of gains and hold it for the longer term period and with the growth stocks with the rotation that we've seen with growth and value that's probably the best way to play it. next up, a question on netflix >> hey, fast money zahir from arlington, and i have a question on netflix. the stock has been moving sideways for the last 18 months or so and all of these companies are being bought out so there could be a potential content issue down the line and there are only so many subscribers in

the world so where do you see netflix five years from now? is it a buy or a sell? >> good question on the growth strategy and potential penetration for netflix. is there room for this company to grow in five years? so out of the original faang stocks, netflix is our least favorite out of the group and it's for some of the reasons that zahir mentioned in his question there is a ton of competition in this space and we've seen it continue to grow over the last 12 months during the pandemic. so whether you're looking at disney, whether you're looking at paramount, peacock, hbo, there are a ton of them and half of them are automatically billed on my credit card, i can't even tell you anymore how many of these things i've signed up for and i think people will start to clear that out a little bit and when you look at netflix, they told you that they'll have a whole new content slate coming up which means this is going to be really capital intensive and you know every year they're trying to spend a ton of money in order to get the best content

and that's going to hurt them i think going forward as competition increases and it will hurt their margins and as zahir said in his question, it comes down to subscribers. they missed that number tremendously last quarter. the guidance for earnings coming up in two and a half weeks or so is only a million new subscribers so we'll see if they're able to reach that or not and it comes down to the capital intensity in paying for content or subscribers we're not a huge fan of netflix going forward. there are too many headwinds for them. >> content is king, but content does not come cheap. next up, a question from a fellow kansan of minot re-opening >> hey, fast money this is kitt from kansas and today i'll ask about marriott. marriott has rocketed back from its 2020 lows along with similar stocks like hilton and now trading at or above the pre-pandemic levels. some of this may be due to accelerated summer demand and people are going out and traveling and hotels are full across the country and there's

an argument that business travel is never coming back to its pre-pandemic levels. so as we progress through the end of the summer through q3 and q4, how should we look at marriott and similar travel stocks >> that's interesting, victoria. business travel and the impact on hotel chains like marriott who do tend to serve much more of that business clientele >> we're seeing the same question come up with airlines, as well as when is business travel going to come back, but looking at marriott it's very similar to a lot of the other re-opening trades that people have talked about over the last six months or so and all of the growth to get them back to pre-pandemic levels was automatically priced in as soon as the economy started to open so you look at the risk reward profile on a name like marriott, and i think it gives you a little bit of pause. yes, you're seeing summer travel in back, but business travel will take a while to get there and also, i think you've got an

additional obstacle here as we have the delta variant of covid-19 starting to gain some traction here and there were states i heard this morning and putting the mask back because of the covid variant. hotels are one of the places where the stocks get hit first as people start to pull back out of nervousness, so again, i would be very cautious with any of these re-opening trades and there are still obstacles in front of them. >> if that was the headline of the segment i think you nailed it right on the head there, cautiousness surrounding -- cautiousness, is that even a word being cautious surrounding these re-opening trades. we appreciate your insight today. thank you very much, victoria fernando. coming up, as the economy re-opens financial planning is front and center we'll talk about the major change the income generation of financial advisers are bringing to the industry.

we're back right after this.

welcome back as we round out the hour, let's to the future of financial advisers women and minority still represent a small share of the financial advice industry and

several companies are ramping up initiatives to change that senior personal finance correspondent, my former deskmate when we were in the office together, sharon epperson joins us now with more hi, sharon >> i miss you, leslie. yeah thank you. the number of certified financial planners reached an all-time high at the end of last year with more than 88,000 cfp professionals industry wide. yet only 23% were female and 2.5% were latino and under 2% were black carla harris says the first step in attracting a broader set of talent is to start early >> if youec pose people early on during college as a summer intern, as a spring break intern and get them exposed to this business you will heighten the appetite for more people of color to go into this space and you can start to build a pipeline that way. >> her company, like many

others, are recruiting interns and early career professionals from historically black colleges and universities tim jaron at northwestern mutual says his firm is encouraging younger employees to take on leadership roles to make an impact in their communities. >> leadership development is a big part of it mentoring, development is an apprentice-oriented business and weave started to see more traction >> another thing it is doing to attract advisers is to have advisers start out as part of a team rather than working on their own so they have a built-in mentor to show them the ropes and you can find out more insights about the next generation of financial advisers online go to cnbc.com/fa >> thank you, sharon such an important story and i hope to see you back in the office some time soon. joining us now, two top voices in the realm of financial

advice, and lauren williams a four-time olympian and both area a part of cnbc's financial counsel. margarita, what do you make of what sharon was saying with regard of the lack of diversity among financial advisers how important is it for there to be more diversity and what does it mean for the ability to provide good advice for your clients? >> well, sure. i think diversity equity inclusion in the financial advice profession is very important and the reason why is we want our profession to reflect and represent those we serve. personal finances, after all, are quite personals and really important to have someone across the table that understands you or, as i say, in air quote, gets you. >> gets you. speaking of people who get you,

lauren, you advise a lot of young professionals and i read in the producer's notes that you say that these young professionals should be focused on estate planning right now why is that? why start planning for your estate right now when you're young and working and focused on other things >> after covid, we've seen so many unexpected things play out over the last year and so estate planning is very important because we don't know what's coming around the corner, but as it pertains to investing, one of the things we've seen a lot of young professionals do is start investing in brokerage accounts and they picked an app, a plat form and those don't come with a beneficiary. as we start having conversations about generational wealth and closing the wealth divide it is very important that you be able to pass those earnings down to the next jen raegsz.

h >> the newapps don't tend to have a beneficiary that comes with them. why do you think that's the case and do you think that needs to change and of course, with crypto, as well, that same dynamic applies. >> yeah. it's one of those things where it would make it really easy to click a button and say who would you like to inherit this should something happen to you. it's standard for other iras and other brokerage accounts and so it is important that people be thinking about that. crypto currency is so hard to estate, so you know where your key should go so you can access those funds should you pass away >> for the people having babies out there in the pandemic with birthrates declining and so forg they should start focusing on saving for college super quickly because we're running up against time. >> absolutely. to open a 529 account you need your baby's name, date of birth

and social security number and the reason why 529s can be so powerful is because some states offer benefits, but then you can take advantage of dollar cost averaging and time valued money and tax-free growth. >> lauren, are you advising the same thing for your young professionals out there who may be in that stage of life >> definitely. it's a great way to be able to take advantage of education funding and really be able to plan for the future. >> yeah. i know that when i had my little guy in the pandemic that was one of the first things that we talked about doing was this whole 529 plan and how important it was who knows how expensive college will be by the time those little ones who are being born now ultimately get there given the way things are going especially as it pertains to inflation. just very quickly, one last comment, margarita on the weight building trifecta. >> sure. so the wealth building trifecta, you can do that with roth iras,

and the trifecta is taking advantage of dollar cost averaging so that's just a fancy way of committing a certain amount, time values money and tax-y from growth. that's how you can build wealth. >> thank you so both so much, margarita and as a hurricane takes aim at surfside, florida, more victims are found in the rubble. i'm rahel solomon in for shepard smith and this is the news on cnbc. a young girl's body pulled from the rubble. >> a 7-year-old daughter of a city of miami firefighter. >> a tragic discovery as the first hurricane of the season threatens rescue efforts historic handover, u.s. troops return control of air base to local forces on the heels of a growing threat from the taliban. >> the security situation is not good right