facebook, an instagram. i would back next week when i talk with world chess champion , and that's right here on the wall street journal at large. thank you for joining us. this week on barron's roundtable tensions escalating what is it mean for the market and your portfolio. stocks, bonds, real estate, the very best options for income investing. and ceo eric yuan on the highest performing tech. barron's roundtable starts now. ♪ ♪. jack: welcome to barron's roundtable the sharpest minds on wall street me to it get behind the headlines and prepare you for the week ahead. i am jack otters. we'll begin with what we think

through the most important things investor should be thinking about right now. stocks slid after u.s. air killed the top bar general. right sharing and food delivering companies under pressure to raise prices on their low-cost services. wyatt could be rough on consumers, but good for your portfolio. and to major homebuilders set to release earnings, the outlook for housing in 2020. on the barron's roundtable tonight my colleagues been an jack. panel start with you the big story friday were these airstrikes killing general soleimani. oils prices spike the markets little bit. what are you looking for when the markets open on monday. >> i think it's going to be a new week and i think people are good to start looking. but i don't think there's can be another big selloff. this could go many directions and everyone is expecting response. but what the responses gonna

be is anyone's guess. but it seems if there is a full out war, it is not good to be good for iran. you have to think they don't want to go there. so if it doesn't go there, it's probably not going to be terrible for the markets. they can be more focused on other things. they are going to be focused on maybe the trade deal which is going to be signed on generate 15th. you might even be looking to china to stimulate the economy by lowering the reserve ratio. so i think it's going to be interesting to watch. >> i would add ten years of the stock market rally and there have been days where we have seen horrible news items on tv and a rise in the stock market. doesn't this market seems to care about is due to interest rate stay on the floor, making stocks look good by comparison. will they raise interest rates? in this case surely not. >> warm buffet loves to take us back to a century of history with pearl harbor and everything else. he just kept on going. i will say with the middle east, is a 3d chess match. you think about are the u.s.

history there, we didn't like the prime minister, we overthrew him and i ron. and then that besieged ayatollah. and that got rid of emily cause problems would not proceed. so things could happen there for gets ugly. >> it couldn't we have to think about that. we talk about with the market cares about, it's different than what people care about. and in this case i am not sure what the market is in a care about this. we are going to price in some sort of a preemie and into oil. >> oil is knocking to see $30 for while as long as his tensions are out there. maybe a lower for five. it makes it investable. but that might help there. but if it's really going to be something to sink the market, i don't think so. >> especially if you looked in today's close. i mean future markets indicate a much sharper drop in friday's trading that we paired a lot of those losses. we still end up down for the day but not bad is that it looks thursday night friday

morning. the market isn't taking it too seriously, or i should say maybe it's not taking it as it be as worried about it. jack: it would take a and say let's look at jack and what is wall street suddenly coming around to the idea that selling stuff at less than cost may not be a good business model. >> is alarming news if you like free stuff. let's say you put in a lunch order let's say meatball hero, or root beer and cheese doodles in europe the ten bucks. and you get it delivered from one of these third-party delivery services. morgan stanley estimates that's about $5 in cost for the delivery. this service is losing more than three bucks to bring that food to you. that is equivalent of checkfree cheese doodles for you. we've all been getting it and the reason is a hot tech market for a long time men's venture capital would throw money at anything whether there is a path to the possibility or not.

the tipping.was the flop of the we work ipo in 2019. all of a sudden, people want the businesses they invest into have a chance of making money at some. you will probably see prices rise for services like third-party food delivery and it were left. jack: one interesting thing about this, streaming kinda follows the same model. netflix will sell you a month of movies what it cost to the one movie. how long can that last? >> i think longer because fortunately because we all like cheap shows. in this case these companies aren't going into venture capital for their money. there a lot of well-established media companies with deep cash flow from their cable businesses. another thing they can can continue to try to gain market share and streaming for a long time. so i would expect cheap streaming to stay here for a while. some of the other free stuff might be going away. jack: homebuilding sometimes it's a bellwether for the economy. next week will hear from two

homebuilders from the earnings, what you looking for? >> it's a really interesting set of dynamics at play. we have low interest rates, we have low unemployment and we also have those millennial's you know this people he heard were never going to buy homes, they are returning to the market because their heat in their peak earning years. the report out next week we are looking to see is that trend continuing. and it looks like it might be. jack: are you sure of this millennial thing question guy here they are just not selling telling their parents did. >> they don't have to be just like their parents were they really work well with this first buyer homes. we are not looking at the mcmansions looking is relating into the financial crisis. millennial's are looking to small homes that are closer to an urban center. but eventually once people had this peak earning years they don't want to just paying ever increasing rents. they want a sense of ownership and equity in their property. jack: and think there's a sense in homebuilders that

they actually have to go to a customers want. and they do want to these smaller entry-level homes. it's the high-end homes that are not doing great. if you look at where the price gains are in the country, they are not in the high tier homes in new york city. those high-end homes have dropped value of the last year. but the mid tier homes actually gained. >> the best advice ever heard about homes as they are a piggy bank you can live in. they are forced to savings of people that financial discipline that way. jack: coming up the panel has ideas for the best ways to generate income. but now ceo eric yuan is going to talk about his in unlikely immigration

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jack: 2019 was a shaky year for ipos like uber, pinterest, (bears a great year for certain segment of tech ipos as enterprise software. the biggest winner, the video communications companies zoom. earlier i talked to zoom ceo eric yuan about a successful startup. jack: it wont talk to about your eye, last april he came into the market $36 and up popped and it went up to two and a hundred announcer on 68. so that's pretty good in the year that was very disappointing with left uber and the really high-profile ones. it did not even come to market. one thing that zoom has that other companies don't is that you are profitable. anything all she does think you're doing right that makes wall street so happy with your stock? >> i think they all will do very wellin the future. you look at zoom, i think it was really.

[inaudible] we tried to manage our end of the cost as well. maybe because we were profitable before we went public, maybe that's part of the reason why investors really like our story. but we have to work harder to really care about our customers and make sure we do not let our investors down in the future. jack: so what is about zoom that's better about skype, zoo google hangouts and others. >> we do architecture and other solutions from many years ago. data collaboration, all new conferencing architect sure. that is key. jack: i got some neat features that when you're on a video conference you can actually picture around background upcoming beat the beach or whatever you want. one thing i have noticed about videoconferencing software is half the memes i go to the first five or ten minutes everyone's trying to figure out how to set it up, how to

get it on the big screen and so forth. you've done a little bit to address those issues. tran h you are right rather than multiple clicks and you try to figure out how to get into zoom and it works. so from our perspective, it's very easy to have any new users join zoom quickly. it is good quality and background. that's why the customer really likes our service. jack: and it sounds like the jetsons or something there if the person on the other end of the line as drinking coffee you have a way to smell the coffee is there virtually a way to shake their hand? >> absolutely. we are going to have a much better online meeting. there'll be cool features like remote handshaking, your drinking coffee from a

remote's, and i can enjoy the smell as well. but they are not available in the foreseeable future. i will take several years of effort. jack: i want to ask about will more slightly different topic. it's at immigration. you apply for visa eight times, were denied each time and found in the 19 got your visa. obviously this country is in a lot of debate over immigration right now. what is your thoughts. you have over you have a lot of u.s. employees working for you. your billionaire, what can we do to create more people like you? >> you know first of all you look at the high tech industry. you look at google or yahoo, those cofounders all came from the united states from other countries. i'll look. [inaudible] to sell immigration laws i think it would be good to work in part, government is working

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click, call or visit a store today. jack: every year barron's writer offers his best ideas for income producing investments. and every year seems to get harder as rates continue to fall. anders story appears in this weekends barron's and he joins us now to share some of the

highlights. andrew thanks for joining us. an interesting dynamic, the review is to understand is as asset prices are going up, yields tend to come down. so that makes your job tough. you found some unloved energy stocks and other energy producing assets that had decent yield, so let's start with pipeline. >> i think energy globally is one of the best places to look. pipeline right here in the u.s. was in favor of a few years ago and now out-of-favor. it's a vital part of the economy and the utility -like qualities of much higher yields. very they have a 6% yield and tender morgan is around 5%. jack: some of these have an mlp master limited partnership structure was that mean? >> that means the partnership you get a k-1 which many people don't like. there are some of their tax attributes that are favorable but many people don't like the k-1. but i increasing number are converting to a williams company are some of those which they favor over those

because it's a simple structure and they like to get a 1099 tax form. jack: sony look overseas for bargains that have not done as well as you ask you and landed on some other energy stocks. >> i think some of that better globally are called the super majors in europe and dutch shell and bp. your time at 6% yield on these companies and ratios around 11. they are quite well. >> eight so people don't buy single stocks overseas rickman etf? >> there is a global gtf it's ief a, it's an etf, it's around 3% right now. jack: everything but u.s. stocks? >> yes everything outside of the unite states. jack: junk bonds is again some energy there. >> junk-bond's have been in favor this year except the one pocket that is not is because of the energy because the prices. you can get some interesting yields on a number of energy bonds. i would highlight rage resources, dimon auction, talk about eight to 10%.

>> don't you worry about these companies going bus to not be able to pay those yield? see mcafee careful in what you buy at the companies that talk about here strong enough financials and goodenough prospects, so i think these bonds or money good. jack: i also notice the maturities are not too often the future. see your talking three or four years. so they have the same business to pay back. >> so right you are taking a little bit of risk tickler to get an eight to 10% yield in this market you have to take some. >> cilla matthew about telecom. you mentioned verizon and you mentioned at&t a 5.3%, but you get some extra tv assets and streaming with it. you take the safe 4% deer reach for that extra at&t with a high risk? >> i would stay with the horizon it's a simpler story and there is less weak there. i think the 4% on verizon is the better one. the others a lag with at&t in the market this year. >> and there's a lot of

excitement with the horizon with the new 5g and that will help the situation. >> i think the terms are expectations are low on wall street for this. something it could be a positive catalyst in 2024 verizon if things work out. jack: at&t is juggling an awfully lot lines of business there. >> that is concerning there's a lot of debt, you've got directv got the mediator got time warner, there's a lot of debt and there's activists with pressure. it could be helpful but it's a messier story. rethink the horizon one is simpler and i think maybe it's a better risk reward on it. jack: let's talk about a couple areas we see some opportunity for the classic income placement you are a little bit cautious. >> your talk about three and half to 4% dividend real's on reach like residential. when take a little bit more risk there there to new york as celgene and around 4% that

is been out-of-favor. p1 takes and risks you can buy the mall companies, there's a leader there there's about a 6% yields and nine. jack: will more area talk about as municipal bonds. some people love their tax free, there is thought that if someone should come into offices on the left side the democratic party and raise taxes, but is that good? >> i think what's good is the prices. you are trying that one, two, maybe 3% yield, not a lot of yield and a lot of risk in the markets. i know it's popular with individual investors. jack: utilities have also been popular. you are not a huge fan. >> i am not a huge fan of utilities right now it's about a 3% yield from utilities. i think telecoms of the u.s. are better, but overseas telecom companies are kind of interesting. i would highlight china mobile, digit telecom, bc and canada your tongue about 45% yields and they have been out-of-favor, but they offer some nice yields right now.

>> they pulled back all lots, the utilities in the last three months we had this big rally in the s&p 500. no bargain shut up there? >> there's never many bargains in the utilities right now they're up to 25 to 30% in the last year. see your talking to 3% dividend yield. the price of ratios of utilities are above that of the s&p 500 and you have lower growth. so i think utilities are not the greatest bet right now. think they're okay if you want to hold them, but i'm not sure if you should be committing a lot of fresh management right now. jack: andrew thank you so much for digging up these income opportunities and looking forward to how i'm your mother in law. and i like to question your every move. like this left turn. it's the next one. you always drive this slow? how did you make someone i love? that must be why you're always so late. i do not speed. and that's saving me cash with drivewise. my son, he did say that you were the safe option. and that's the nicest thing you ever said to me. so get allstate. stop bossing. where good drivers save 40% for avoiding mayhem, like me.

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jack: jack industry was calm this week you wrote that your kids love applebee's but walmart santos crazy about the stock. >> i know you fancy pants global elites don't do casual dining chains. but i go to an applebee's type of place now and again. the stock is 11 times earn. these kind of chains are deeply out-of-favor right now. there has been a move, actually the economy is great but the restaurant business in general has been slumping for the better part of five years. there's been a move toward independent craft dining, that's what younger consumers seem to want. i think a company like this like applebee's and it's ihop. company right now has a lower market value than what ihop paid for applebee's more than ten years ago. so it's deeply depressed, it's cheap the diner names. i think it's a chance for the company to get a bounce from here. >> way cheaper than mcdonald's.

>> of that is fine dining it's 60% earnings for chipolte. anything with the village's ability towards growth right now. jack: and we want to give you couple action ideas to go on the week. let's start with you paying on? >> yes it is the second largest insurance china we have two dynamics at play right now where you have rises in wages and an aging population. some more of a demand for insurance products. and this is a company that is very tech enabled to their using technology to really drive their credit decisions. lotta growth there. ba been you're looking at retail? >> i am looking at nordstrom. it has been for a long time trading along with macy's, and kohl's, and these others you don't attach. but it's not really doing that anymore. it's actually starting to look okay, but it still cheap just over 11 times earning has a nice dividend years close to 4%. maybe starting to grow its profit margins. if it starts turning a larger profit it could do quite

well. >> to read more check out this week's edition@barron's.com. and don't forget to follows on twitter at barron's online. that is all for us this week,rs. right near maria's wall street begins. >> on the fox studios in new york city this is maria's wall street. maria: welcome to the program that analyzes the week that was an helps position you for the week ahead. happy new year everyone. coming up in just a few moments, we are going to take a look at 2019 and some of maria's biggest interviews. jamie dimon, rodriguez, just two of the big names you won't want to miss. but first, 2019 was a record-breaking year for wall street. the dow, the nasdaq the s&p all reaching new highs. back in 2020 pick up for 2019 left off? and what should inves