had to balance out of that segment, but you got the floor for the last 20 seconds. >> no problem. let's just go with porsche, the momentum's been there. i think it'll continue i was just going to ask jim a question he was saying that the fed's not going to raise rates i doubt he was saying that he's too smart for that. >> good stuff, guys. i appreciate it. stock summit concludes tomorrow. we'll see you then "the exchange" is now. thank you very much, scott hi, everybody. i'm kelly evans. is the tech selloff over already or just taking a rest? the nasdaq has now turned positive, while it's the dow's turn to lag. plus, counting down to the jobs report. the labor market is so strong, it's bringing the fed off the sidelines. will tomorrow's number keep that narrative intact and coming up in "rapid fire," where the street sees value in some hard-hit stocks like bed bath & beyond

but first let's get you the market action today. and dom chu joins us with that >> we're going to call this stabilization, kelly as you can see here, it's a bit more of a mixed picture. we're off the worst and best levels of the day from a decent standpoint the dow industrials still off about 38 points. the s&p taking a peek at positive territory and the nasdaq composite up about one-quarter of 1%, up about 40 points. it was much deeper at one point so we'll see whether or not there's any of that kind of buying stability for some of these beaten up nasdaq and technology and media-type names. speaking of that area is some of the hardest-hit sectors within the overall market in technology specifically cloud computing has been hit especially hard over the course of the last couple of months here from a valuation standpoint and an outright price standpoint take a look at this particular

etf. wcld, this is an intraday chart. you can see more selling weakness here. but there has been a bit more of a bait could be some more value buying. software, cloud computing among those. and a stock we don't often talk about, but it is far and away the best performing stock in the s&p 500 today. and that is lamb weston. they're the biggest supplier of frozen potato products in north america. that stock is up about 10% right now on much better than expected financial results. quarterly results has this potato producer and supplier lamb weston at 10%, not often i can say it's the best performing stock in the s&p on a daily basis. >> the french fry indicator we'll call it. all right, bespoke capital is noting an interesting trend from 2021 repeating itself in the first three trading days of this

year it's actually at its highest level in over a year, exactly a year really. and tech's 3% decline that we've seen in the last three sessions, they say don't fear too much about that other than the grim years of 2000 and 2008, the nasdaq typically recovered to trade higher by 15% by year end any time we started by three trading sessions in the end. here's the nasdaq chart from 2021 you can see we are off to a mixed start. all of a sudden hit this inflexion point here, turned out with some pretty strong gains of about 21% for the year is 2022 going to be much of the same and where should investors lay their bets joining me now is the co-founder of bespoke investment group, and we have a professor of finance it's great to have you guys both here paul, did i get all this data correct? and what does it tell you? >> yeah. so i think, to the point we've been here before, we saw an

interesting headline this morning, pandemic tech bubbles echo those of the dot com era. that headline encapsulates a lot of the sentiment today but it was exactly from a year ago today, three days into 2021, where we saw underperformance of tech relative to financials. and there were a lot of concerns heading into 2021 that tech was finished, and it ended up performing in line with the market so where tech goes from here is debatable. but there's been more than a few premature headlines written about the tech sector premature obituaries written about the tech sector over the last several years. just because it's so expected doesn't mean it always pans out. >> professor, do you think this correction has been necessary, and has it run its course? >> i think we need some perspective here this 3% drop is after a decade of about performance that said, though, i think we're bundling very divergent stocks

into what we call tech now you've got young tech and old tech apple and peloton are both viewed as tech companies i don't know why because manufacturing, t tech a software tech. there are parts of tech that are going to do much better than others i think from that perspective i think we need to be cautious about drawing judgments about the entire sector. >> but would you, professor, still basically look at price to earnings ratios and say big tech, certainly names like meta, looks reasonable is pe still the sort of rock solid indicator you'd use to separate the wheat from the chaff? >> the pe's always been a rough indicator of pricing i've never believed that picking stocks has made any money -- i think pe in conjunction with other variables makes sense. i think you're right, though, in

drawing a distinction between old tech and new tech. the microsofts and the apples are no more overpriced than the rest of the market the young tech companies, and, in fact, it's not just tech companies, young companies in general have benefitted from risk capital flowing in, especially in the last few years and pushing them to levels that i think is unsustainable, at least in collection, in the aggregate i think we've overpriced companies which have very little earnings, have huge growth potential because they can't all succeed in the economy that we have so i think that's going to be the test coming for -- not just for this year but for the years forward is which of these companies are going to be the winners and which are going to fall to the wayside. >> yeah. so you're almost drawing a distinction not so much in high and low pe another way to slice this is momentum growth over value, you could just pick any momentum style

there's etfs for that and all the rest of that what do you best encapsulate the rotation that we've been seeing? >> so, i think to the point earlier what we've seen is that you have the established tech companies and these young tech companies which the market has done a very good job of isolating the areas of excessive valuation and repricing those names. stocks in the russell 1000 with the highest price to sales ratios are down about 8% just in the last three days, whereas more reasonable price to sales ratios are flat to higher. so, and you look at the ark names. they are down 50% since their highs a year ago and in the software sector these sectors don't have a lot of historical earnings or track records to fall back on. and investors here are taking the rational approach and repricing some of these names.

so i think that prior point was, you know, a very good one where you have the old tech, which is established and holding up much better the technology sector's down 3% this year. but some of these newer sectors that focus on newer tech companies are down >> so, professor, what would you tell your students who have positions in ark >> why would you take that position in the first place? you live by momentum, you die by momentum i think there are lots of things you can say that are good about ark, but it's a momentum play. it's a pure momentum play. and from that perspective i am not surprised of the huge run-ups and rundowns you see in it >> but what if people say, no, i believe in the sort of stock selection, in the value creation, and that these are names -- you're already laughing before i can finish the comment. what would you say >> i'd say there's no stock

selection in ark ark's biggest strength is calling macro trends its biggest weakness is actually picking individual stocks. so i think on the macro trend issue, i think ark has done a very good job of calling trends that have occurred, especially over the last five, six, seven years. i mean, on the stock selection, not so much because there doesn't seem to be a whole lot of stock level, company-level analysis of any strength out of ark. >> wow, all right. let me turn to paul and ask about the trading behavior today, where we've seen now this nasdaq jump to the leadership. the dow is underperforming what are you going to be watching what should be on investors' dashboards to figure out whether we're going to see a reversion to the last three trading days or not here? >> so, again, it's three trading days into the year this is the fourth trading day i think when you get to next week and we start to see earnings reports coming in, that'll give us a bigger tell. two key things here, there's very little conviction in the

market any time you have a hawkish comment by powell, whether it was in early december or just the minutes yesterday, investors really head for the exits very quick. so there's very little conviction and position. so i think that tells people that, you know, there's not a whole lot of complacency in the market so, looking forward, all we're talking about this year is what can go wrong with covid, the fed, valuations, and fiscal stimulus, monetary easiness coming back. but all these things are well known and in the headlines right now. if we could all just be successful investors looking at the headlines, we'd all be billionaires and rocket ships right now. it's not that easy by just saying all the concerns out there you have to sell i think investors need to take a balanced approach to sectors that have, you know, attractive valuations, have some exposure to tech. but you also have to have

exposure to more traditional sectors like healthcare, energy, and financials >> and there's ark up half a percent this afternoon guys, thank you very, very much for joining me today it's been a pleasure >> thank you all right. let's drill down on some names that could be attractive amid the selloff that really dates back to last year. joining me now is the chief equity strategist and senior port polo manager. it's great to see you again. i don't usually think of you as the type to want to pick up a lot of newer names to the market that might've formerly had really high pes. are there some attractive to you here >> i sure think so and first of all happy new year. but, secondly, there's a couple of stocks, the tech selloff has been so nondiscrimnant i agree with the professor before saying pe is secondary to

company fundamentals, earnings growth, things like that i love amazon here, it's my favorite f.a.n.g. stock. it did hardly anything year, underperformed the market by 20%. it was a capital rebuilding year last year for amazon, years that follow capital rebuilding years are typically quite good for this stock so i like it a lot. my second name would be roku roku is down a whole bunch in the last six months, although for the last three years it's been a terrific stock in our portfolio. it's lost a lot of confidence so its price to sales now is back down to a three-year low i think it's a great place to pick it up and if you think like we do that streaming's only in the second or third inning, there's no better company really to play that trend >> do you want to offer a comment about the sectors and the rotation that we've seen here do you just look at these environments and go, great, whatever creates the best stock selection opportunities is what i'm focused on or do you have to be mindful of

continued pressure that might be on tech or momentum from higher rates or the fed or so forth >> of course you have to be mindful. but, boy, we sure love when rotations like this happen because, as i mentioned, the indiscriminate selling creates opportunities in really good companies. it's tough to buy a facebook or a google, for example, below a market multiple. but you can do that this week. it's almost like a commercial, it's on sale and you get extra that's kind of why us active managers like the dislocation if you have the stomach to really step in and look for the values. >> where else -- so in financials and energy, which have actually traded much stronger, are those becoming less attractive to you or are there still names that you think you can own for a solid 2022 >> no, no. i think you're exactly right i think those are less attractive and, again, there's three important things in active stock picking, valuation, and valuation and valuation. what we're looking at with the banks is most high-quality banks

are now trading at more than twice book value that's a tough price to pay for a company that's basically in a cyclical business. we have no credit issues right now. so, to us that's a bad thing in the sense that things can't get any better for the banks so, we would look for value elsewhere, companies that can grow their earnings reliably through what's going to end up being i think a very complicated year >> well, i also enjoy you have a list of your ten surprises for 2022 i do like looking through when people send these along. a couple caught my eye in particular you don't think crypto's going to have a great year, do you >> no, i think it's going to be a tougher year for crypto, almost a victim of its own success because i think there will be calls from regulation from all over the place, from china, europe, and here in the united states. although i do think there's going to be a great winnowing as well i think the more established coins like bitcoin and ethereum will do quite well after regulations tend to come into focus, and then once regulations

are in place, institutional investors, i think, will get more comfortable treating bitcoin not like a currency but like gold, which is a hedge against inflation and other things >> oh, so many other good provocative ones you think covid's actually going to sideline china, and that the midwest should prepare for a cyberattack on its energy grid maybe we'll have you back, and we can talk more about them. but, chris, thanks so much for laying out some of your ideas this year. >> thanks, kelly good to be with you. for more ideas on where to put your money, be sure to catch an exclusive interview with bridgewater's founder ray dalio this afternoon steve liesman here with the story. >> thanks very much, kelly st. louis fed president telling a group in st. louis that this hour that the fed is in a good position to take additional steps to control inflation those steps include passive

balance sheet runoff i'll come back to that word in just a second, as well as raising interest rates the fed, he says, could hike rates as soon as march, and it can adjust rates up and down, depending upon do rates faster or slower depending on the economic data. he does not see omicron as a big risk to the economy, believes that cases if it follows the south african model, will fall off in the coming weeks. separately, san francisco fed president saying that the fed needs to hike rates to keep the economy in balance she now supports rate hikes. but she says the fed should only reduce the balance sheet after raising rates, so a more dovish ideas. he was joined by governor chris waller who used to be his research director out in st. louis, now he's a fed governor so that's sort of st. louis team out there in favor of balance sheet runoff but it's interesting that he is

talking about passive rather than active. passive is just when the security matures, they don't buy it back, rather than active which would be actually selling it he's in favor of a passive one at this point. >> passive balance sheet runoff. steve, put this in context as the markets weaken a little bit here would you summarize this as basically more hawkish or more dovish than people have been calculating if we go back to the fed minutes yesterday? >> i think it's incremental. i think it is interesting to see that there is a bit of a hawk/dove split between daly and bollard on the idea of when to trigger it so i think there's a debate on the committee. they haven't decided when to do it or how to do it they're talking about it pretty aggressively though. the fed is talking about it, it's probably a smart idea, thinking about the idea that the fed some time this year, as soon

as the summer, if the hawks have their way, maybe a little bit later in the year, the fed could be passively reducing its balance sheet. >> its almost $9 trillion balance sheet. steve, thank you so much for all the headlines. coming up, the great resignation continues to pick up steam, this as covid continues to change how and where people want to work recruiter.com's evan sohn. plus, buying a home has become the least affordable in 13 years and renting isn't any easier what's going to happen to the housing market this year we'll dive in.

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welcome back to "the exchange." 4.5 million, that's how many workers quit their jobs last month, setting a new record, as the great resignation accelerates. add to this the changing job fulfillment landscape and wage hikes for high earners, think above $800,000 a year. joining me is evan sohn, the chairman and ceo of recruiter.com. evan, it's great to have you here i think it might be on the front page today of a lot of banks who are struggling because their employees want to keep working from home. talking about the higher, you

know, earning positions here, and they were told it's important to come back for firm culture and all the rest of it but now they're tacitly allowed to go home again this is going to be hard to overcome when they want to bring people back, isn't it? >> completely agree. and, by the way, happy new year, kelly. >> you too >> i think what we saw last month or in the december recruiter index is that what we would call a great alignment, remote jobs are up by 30%. and that is now the highest priority for the candidates as well, being 20% only being compensation, and the rest being noncompensation or remote work so if the jobs are remote and the candidates want remote, that's why our recruiter index went from 3.6 last month to 3.7 this month >> so basically it's good for the labor market that these objectives are aligning, but can it last? what if companies get more

serious in six months' time about making everyone come in? >> just this alignment of company culture and the company requirements to the candidates themselves whether if it's a company that only wants to hire people that are going to come to the office, then they're only going to get candidates that want to come into the office. and they need to really align those together what we're seeing last month is just the growth of remote work and maybe it's omicron sort of forcing people to work at home, forcing the jobs to be remote. but we're going to see companies really start to think about how they want to attract people. we saw, again, salaries go up again for another month. we're really seeing lots of those things sort of align together >> one of the questions, and this was in a discussion we were recently having on twitter, people want to know where are those people quitting their jobs, where are they going >> it's a great question someone asked me how are they making money how are they surviving if they're actually leaving their jobs i think there is this whole gig

economy. there was just on cnbc talking about uber there are all these people participating in the gig economy, and the question is whether the folks who were working in factories or even going to other factories or are they actually taking on these remote work-from-home gig assignments? i think we'll have to dig more into it to see where that's actually happening >> do you think this all bodes well for the jobs report tomorrow and for the labor market in the months to come, even with omicron? >> i think what omicron really did was it just forced this issue of we're going to be remote for a little while. and as long as the company sort of acknowledged that we're going to have to be remote for a while and attracting candidates who want to work remote. some people want to have that in-person experience, the culture, the family-like experience of an in-person job so i think that this evaluation of how people want to work and how companies want to work, we're just getting better at it.

if you look at adp's numbers, it shows companies with 500 employees or more that they're getting good at it, they're increasing the recruiters who are actually processing these candidates and hopefully this is a good sign for things to come >> we'll leave it on that hopeful note evan, thanks for your time we always appreciate it. still ahead, fintech's been taking a beating over the last month, but it's a different story for visa, mastercard and amex why one analyst thinks the legacy payment stocks are ispoed legacy payment stocks are ispoed to have a good year.nstant matcy delivers quality candidates matching your job description. visit indeed.com/hire when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know

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we had a nice market rebound, but it's evaporating the nasdaq is about to go negative once again. the dow is down 110 points now the s&p's only at 4. and the nasdaq is only up 5. let's get to tyler mathisen in the meantime for a cnbc news update >> here's what's happening at this hour. new yorkers will be able to bet on sports using their phones beginning saturday morning the state gaming commission has approved four platforms to begin taking wagers. they are caesars sportsbook, draft kings, fan dual and rush street interactive the world's number one-ranked tennis player has been confined in an immigration detention hotel. novak djokovic is waiting for a court to decide whether he can compete in the australian open even though he's not vaccinated against covid. his visa was canceled after border officials denied his medical exemption. many of his fans in his home country of serbia are outraged, hundreds gathered outside the

country's parliament to show their support of the tennis star his father told the crowd his son is being held, quote, in jail and urged them to continue protesting until he is free. and on "the news" tonight, we will speak with liz cheney, ranking republican on the january 6th panel, about the probe into the capitol hill riot and her thoughts on the gop response on this first anniversary of the attack that's tonight with shep at 7:00 even kelly, back to you >> all right, tyler, thank you i'll see you soon. a big mistake, a buyback bounce, and flying high. these three retailers getting a nice boost today, but still at least off 50% from their highs should you buy them or stay clear? a special edition of "rad pi a special edition of "rad pi fire," next. hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,

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playback! ♪ woo ♪ the feel great hit of the holidays is still in theaters. yeah... oh. don't worry i got it! ♪ yeah. yeah. yeah. yeah. ♪ yeah. and on friday, you watch at home too. time to show the world what we're made of. activating "piggy power." welcome back let's catch you up on a couple stocks that should be on your radar. it's time for a beaten-down buys edition of "rapid fire." four stocks 50% or more off their 52-week high here to help me break down the moves and the headlines, we have chief market strategist at miller

he's joined by our own lauren thomas, and dominic chu. $100 million, that's what bed bath & beyond said supply chain issues cost the company and lost sales for the third quarter. it isn't just the lack of inventory either the ceo said on the earnings call he regrets scaling back bed bath's ubiquitous coupon program. it was a big mistake that impacted on our business both in q2 and has permeated through q3 and beyond their shares are still up 9% today. >> my thoughts, first of all, i agree with it because i used to actually go and buy stuff at bed bath & beyond because i would bring that ubiquitous 20% off or $5 off coupon. it was a call to action. even if i knew i didn't really need something, i would go and do it just because i had that coupon in my hand. so i guess of lot of people do

feel the same way i do it's interesting because of the disappointing results, yet why is the stock up higher well, this is still one of those meme stocks. this is still a stock that has a 21% short interest on shares that's roughly in line with what amc entertainment is right now if you take a look at the overall picture for why the shares are trading the way that they are, they are still beat up very, very badly when you see a move higher like this, it could be because short covering becomes an increasingly bigger part of that story. >> i know anecdotally in our neighborhood whatsapp group, it was becoming common towards the end of last year if people found a coupon they had gotten scarcer. >> yeah, absolutely. and i'm glad you mentioned bye bye baby that was honestly one of the few bright spots in this earnings report was that particular business so while overall same

store-store sales were down, bed bath & beyond posted a guideline, that division but the bye bye baby business was actually up mid-single digits so we saw some impressive growth from that side of bed bath & beyond, and the ceo said on the earnings call that essentially during the pandemic we've seen a shift away from homes. so some of those categories that just performed really well last year as americans were stocking up on kitchen items, bath items for their homes and whatnot, those categories have experience someday softness of late, whereas baby, we're seeing millennial-driven baby boom into 2022 and something to watch for a number of retail stocks, but bed bath & beyond as a result with its bye bye baby division is poised to be a beneficiary of that trend >> i know siegel over at bmo was a fan. matt, what would you do with it? >> the stock acts pretty well here one of the things i like the

fact that has been trending lower the last couple of weeks, it was able to hold its october lows but i also like the fact that they set their margins were holding up very nicely this is a key, key issue for next year -- for this year now that we're into 2022 everybody's worried about inflation, are they going to be able to hold their margins now, the one thing i do worry about is that the margins holding up over last quarter we had pent-up demand last year, but we've had a new wave of pent-up demand during christmas because christmas 2020 was so bad. what are people going to do this year going forward were they able to keep margins because people were -- they wanted to just have one last blowout here before 2022, before inflation really hit or is it something that's going to be able to be maintained? we're going to be watching this not only for bed bath & beyond

but i think as we get especially a lot of these retailers are late, that's going to be very important. >> by the way, the ceo is going to be on "mad money" tonight at 6:00 p.m. eastern, always look forward to getting more color from that. let's talk about stitchfix it's rallying more than 11% today after announcing a share buyback program up to $150 million the shares peaked at $113 early last year and they are below 20 right now. that's an 80% decline. is a buy back enough to get investors on board lauren, what do you think? >> first i just think we have to point out stixfix is one of those stocks, it is incredibly volatile each time they report earnings i think you can almost anticipate a wild upswing or some downside there after those earnings reports. so last quarter, most recent results that stixfix posted, they did lower their outlook for the year i think under ceo elizabeth

spaulding who hasn't been at the helm for that long, stixfix is really undergoing a transformation so they're increasingly moving away from this subscription-based model they've now opened up their website to where you can log in just like macy's.com where you can buy a single piece of clothing or a single pair of shoes. and the ceo has said that's going to take time to really raise awareness to consumers that you can now go to stixfix to, again, just buy one piece of clothing, you don't need to be a member and i think that's why we've seen a selloff here of late. there's a little bit of doubt that that will ultimately play out for them success play when this is only a very competitive space. apparel has struggled over the years. but shares are rallying today because they have been beaten down so much of late >> so, matt, maybe you're a little interested in poking around with bed bath what about stitchfix

>> when they came out with their earnings back in december and the stock got absolutely annihilated. a lot of times when they come with up excuses in this transition, it sounds like it's just a cheap excuse, and the stock's going to go lower. well, it hasn't. it's held in there very well whenever i see a stock come out with bad news, do we get a downside following we haven't seen that i really like fact that they've seen a lot of insider buying in this stock 2021 was a record year for insider selling. and that's been one of the things that the bears have reallyattached to about the broad market but when you look -- people sell insiders sell for a lot of different reasons. they only buy for one reason they obviously have a lot of confidence in the company. not only are they buying back shares, but they're buying back for their own pocketbooks. >> one more retailer getting a

boost today. they are up 8% today their esg approach is authentic and important to consumers the products are differentiated and innovative but with shares more than 50% off the highs from its ipo in november, is the story really all that, dom i know tyler likes the sneakers. >> my wife wears those sneakers. a lot of friends of mine wear those sneakers i think wilfred frost wears them i've seen them in his studio every once in a while. yes, they are a big deal because they are one of those brands that's really trying to chip in at the establishment at nike and all the other big makers out there. they've got that esg component which makes the brand a lot more appealing to a very certain set of people out there, and that's going to be something you're going to have to watch because if this is a situation where there's a value trade to be had, this is one of those scenarios where maybe the market's giving you that opportunity. i would say that with allbirds, there is a compelling case if they can give you that kind of feel-good approach to buying

sneakers, i like shoes that fit, i've been told these things are very comfortable i would have to try it out personally before i'd say this is the stock i want to buy >> i just like the idea of being able to pop them in the wash but my amazon knock-offs also do that, just maybe don't last as long coinbase, this one slightly lower. the move beyond crypto to diversify could help the stock do better. i give them more than just crypto retail trading revenues in 2022. they upgraded it to a buy, maintained a 340 price objective. coinbase is still 50% below its all-time high from that ipo back in april matt, what would you do with the coin >> i like the stock. they're already more diversified than people realize.

i also believe that -- let's face it, bitcoin and all of cryptocurrency has been wildly volatile the fact that they've come down on it and may even break below 40% doesn't mean that can't go to 100,000 at some point in this year or tat some point in the first half of this year. they didn't get into these by the spring or summer by the end of the year they were flat or down those institutions like to push up the stocks that are doing well and get rid of the ones that aren't doing well they were also very a small portion of their portfolios. i think they're going to be getting back in here i think there is going to be a big change here this year with an institutional player. it may not come until we fall a little bit further but i think they're going to have no choice to get back in, in this new year

i'm going to use coinbase to run with that. >> matt in a bullish mood on a lot of these stocks. still ahead, 2021 was one for the record books ipos, dealmaking, crypto thefts? st have more on that last one in ju a moment. don't go anywhere.

welcome back 2021 was a big year for crypto as a lot of the cryptos really hit the mainstream but it was also a big year for crypto thefts. eamon javers joins us now with that story >> a whopping $3.2 billion worth of crypto was stolen last year according to a new report from the firm chainalysis 72% of the stolen funds were taken from so-called de-fi

platforms. those are those decentralized finance services with no central exchange authority governing the whole thing. that's because de-fi is such a fast-growing segment of the cryptocurrency environment, and many developers out there just haven't put in place enough security and many investors are piling in without doing enough of their own homework on the services themselves. overall, a stunning $14 billion from all sources including everything from ransomware to terra financing to darknet, went to illicit addresses they were also able to calculate the total crypto war chest currently held by these illicit addresses associated with criminal activity, that figure is $10 billion worth of crypto it's fueled by the crime itself but also the increasing value of the criminals' crypto assets one other piece of good news here, kelly. even as the total crypto thefts are increasing and in a big way, the percentage of overall crypto

activity associated with crime, that's actually coming down, and that's because of this enormous increase that we've seen in legitimate crypto transactions so, as a percentage, crime much less than it was in previous years, kelly >> that is an interesting point. can law enforcement do anything to get the funds back? >> what we saw in 2021 is, yes, they are starting to be able to figure out how to get to the crypto exchanges and claw back some of that money when they can get an exchange operating in a jurisdiction that's in an amenable legal situation, vis-a-vis the united states. so they're not always successful but the crypto folks tell you that what's interesting here is that they can see the addresses, they can see the wallets, they can see where the stolen crypto is, and if it hits an exchange, they can start to make efforts to claw that back. >> wow, eamon, thank you very much up next, american express the only payment stock to outperform the s&p last year, while fintech really took a

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welcome back fintech taking a hefty fall over the past month look at these kleins for block, formerly square, down. toast down 22% affirm down 26%. allof them down 20% or more. a different story for the legacy payment stocks look at visa, mastercard, and a amex that's no surprise to lisa i am a skeptic on these, visa and mastercard specifically. they were disappointing last year why are they getting their mojo back >> because, believe it or not, they are still waiting for their benefits from the recovery from the pandemic they are very tied to travel-related spending, all three networks are travel and entertainment-related spending as we have kind of come through

this last variant where you have seen the latest wave, omicron, but not triggering necessarily a huge amount of shift in border closures, et cetera, there is a lot of increased investor optimism that travel, entertainment, and other luxury goods -- likely sewer spend willing come back in force in 2022 that's what we are really raitt waiting for with those names as reminder, prior to the pandemic, about a quarter of voesa, mastercard, and american express's revenues were linked directly to travel and entertainment spending that is still down over 40% or so from what it was in 2019. >> wow. >> a big piece of these businesses still to come back. >> a big catalyst. basically it is don't worry about the competition, the pressure from the likes of amazon and some of these margins, just look at the revenue growth story we are likely to experience why do you think even a name like global payments which was a tough stack last year, fas, fiserv, why do

you think they could still have a strong year as well? >> with those guys, all three of which are more of these kind of plumbing companies in the payments systems, they also are kind of still riding, you know, that remaining wave of the pandemic coming back but the other aspect there is simply markets-related factor. they have derated substantially. they are now value names essentially. they are trading at over a 20% discount to the market and we are seeing as you saw in the other slide, this sharp rotation out as interest rates are rising, inflation, et cetera, a rotation out into value names. they are squarely within that trend. of the group, fiserv is your favorite all three are moving in tandem it is exciting because their earnings growth should be quite good sort of in the high teens and 20% level.

and we have always got potential for rerating in valuation because they have sold off so much. >> what do you do with fintech w the likes of block, affirm, with the pressure you just described? >> there, you really have to pick -- one, you might want to sit it out a little bit here and see where we bought them when it comes to all the rate-related activity but you really just want to pick the longer term winners and ideally pick stocks you are comfortable holding on a multi-year time horizon. we love block for that reason. they have the big after pay acquisition coming in this year. that will be a catalyst for them their seller business, the p.o.s. business is growing nicely high 20s, and expanding outside the u.s. we just would say, you know, kind of pick your spots in there and ideally have a multi-year time horizon because they grow into their valuations quickly w.

a company like block they are growing ebitda at 30, 40%, if you are okay holding for a couple of years they will grow right into the valuation. >> she's saying don't jump in to this and think your going make your money in a week but they are always good to hold long term. thank you lisa up next, an answer to the age-old real estate qutieson should you buy or rent it is murky right now. it is murky right now. we will dig into it next on . that's decision tech. only from fidelity. - look, this isn't my first rodeo, and let me tell you something. i wouldn't be here, if i thought reverse mortgages took advantage of any american senior or worse, that it was some way to take your home. it's just a loan designed for older homeowners and it's

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home prices are still at record highs, but rents are also climbing big time. so what's the best tack? renting or buying. diana olick digging into that question for us. >> kelly, home affordability has really taken a hit during the pandemic as home prices positively spike and rents are way up, too. especially for single-family homes, which are in much higher demand renters just want more space out

in the suburbs it is more affordable to own or rent the answer is owning but the gap is shrinking fast. so, home ownership expenses consume less of the average salary than monthly rent much of this, of course, is because mortgage rates are so low right now. but they are rising fast and that's why this scenario may change soon. of course, all real estate is local. so home ownership is more affordable than renting in suburban and rural areas, but it is cheaper to rent in big cities like los angeles, chicago, phoenix, and san diego owning a home is more affordable in houston, san antonio, detroit, philadelphia and tampa. now, this report is about a afford affordability, not about which is the better investment home ownership historically builds wealth but others would like to take that down payment

on a home and put it in the stock market or another investment that calculation generally fends on how long you intend to own the home five to seven years is the best bet. >> for the break each. i should mention the home builders are under pressure. they are down about as much as the nasdaq so far this year. that does it for "the exchange," everybody. thanks for your time stick around as tyler mathisen and "power lunch" pick thing up right now. >> cally, thank you very much. we will see you in a couple of minutes. welcome to "power lunch. i am tyler mathisen. here is what's ahead on a busy hour gems amid the wreckage tech slides as interest rates rise but there is opportunity in the washout. we will highlight names in i go from mega cap to the cloud to electric vehicles. and hedge fnds funds unload high growth shares. it's being called a, quote, violent rotation we have the details on the names influential investors are dumping a of the a rapid pace.