jack: welcome to barron's roundtable with the sharpest minds on wall street get behind the headlines and prepare you for the week ahead. i am jack on her. we began we will get three stories that investors should be thinking about right now.

there are coronavirus fears but there are opportunities. thrills and spills and corporate earnings last week it's going up next weekend what to expect with palatine with consumers but is unloved on wall street pride what that tells us about the market. i'm barron's roundtable tonight jack how ben -- the market was down ugly this week it was a convergence of forces that cause that. >> today was an ugly day. for most of the week coronavirus wasn't such a big deal. the usual suspects got hit. airlines like united, cruise lines, casinos all have direct exposure to the coronavirus. something else happened today and realize this might be a bigger issue. at the same time you're starting to get some manufacturing data that is also not looking good. there is a chicago measure of economic in that region and is pretty awful today. >> it was the worst showing in

four years. speemac it was this notion going into 2020 as we left this bad economy behind us in 2019. it's going to be better now. the data isn't showing that and the coronavirus is keeping a lid on things. it's just not looking good. >> there is kind of that second feeling on the coronavirus because the world health organization declared at emergency. but they praised china for the handling so far. stockett been down in markets have been down all day traded up on thursday. then there is that second on friday morning is a sharp reversal. >> wasn't a buying opportunity for corona? the market had not sold off. >> a 3% buying opportunity. >> you look at stars back in 2002 there's a period of five or six months and had a double-digit decline and we haven't seen anything like that. maybe that's why sow weakness at the end. and the yield curve converted again not dramatically but it's the sign saying you should keep an eye on it.

>> is just another sign at their the people are getting worried about the environment in terms of the economy they're worried about the viruses they're worried about a lot. >> and stocks are pretty pricey. there is not a lot of margin for error there. >> jack you're looking at earnings can they save us? >> i'm going to win them back now. most companies we are about halfway through earnings season. they are beating is added and the indexes. [inaudible] 's at the end of last year with that there be a 1% decline. now it's a fraction of a decline. if we keep doing this well, we might summit 0% for fourth quarter. i think were going to have balloons. i am going to tell you some thrills and spills this past week. apple beat and the stock when applicable percent. tesla, defies gravity. amazon to sell amazon. but i want to call out general electric. that stock went up 10% earnings good free cash flow going to have more the same. this stockist men trying to

woo me as a columnist for some time now. more than a 50% gain from last year. but i have been heartbroken by complicated industrials before. i am not ready yet. >> and bank of america fell in love upgrade the stock, some gain for ge let's see if it keeps going. >> for the poor people watching us who have been holding ge for decades, we have to point out, there is $30.10 years ago. it's working his way back. sumac up tight about a couple spills xilinx is a chip company that bad guidance and some layoffs over there. and they weren't sure if this is company specific or industrywide. and facebook, that stock was down 6% market zuckerberg said here is his, his goal for the next decade isn't to be liked, but to be understood. i think he is halfway there on the not like part i'm in a call that conservative. he is well ahead of schedule their periods.

jack: 's amazing numbers in the report of their penetration is 250 million people there's 330 million total and a lot of those are babies. so it's pretty -- walter cronkite might've been 30 million at his peak. so the reach of that company just in this country is incredible. another stock that we will be reporting, is one that i think honest ways above the a um in terms of popularity it's palatine. >> what i think is interesting about palatine is my talk the fund managers about their ipo last year they all love running the palatine bike. but they don't attach the stock. 80% of the shares are cut short they think it's going to drop. when they report next week -- sure todd has been losing money but if they have any sort of positive indication, they could be a major shortcoming because there's not that many shares to

borrow. and what that means the short-sellers will have to buy back the stock sending it higher even that i don't like it. >> if i understand correctly a peloton shorts could get chafed. jack: on that we've got to go. coming up having a better returns in the bond market. ♪ ♪

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jack: facebook stock tank after solid fourth-quarter earnings rather put out this week. an early investor in facebook is now one of its biggest critics. earlier i talked to olivia, elevation partners cofounder

and author of exact, waking up to the facebook catastrophe. jack: roger in case anyone in the audience doesn't know who you are give us the 32nd year history. you started when the biggest tech fund of the time. >> i started my career in the first day of the bull market. in industry were timing was everything i have been the luckiest guy ever. so i was a tech investor before tac was really a factor. and as a consequence i have enjoyed the benefits of the greatest tailwind any investor could have. and i started three forms of my own after i left the road price one integral and silverlake, and then elevation with a bono, the singer from youtube. which is where i got involved with facebook. but i've been blessed to be involved in some of the greatest tech companies in america for the last 37 years. maria: said you were a mentor to market zuckerberg and had a wonderful relationship.

and then you thought things would not face but didn't fit your value. >> i thought this is where you could talk to friends was a great idea. in 2016, the beginning of that year i started seeing things going on inside facebook that just did not fit my rosy view of the company. in october i reached out to mark and sheryl sandberg denied also been an mentor to cheryl. i tried to warn them. saying there is something about the business model, the culture and the algorithms of the company that allows bad actors to harm innocent people. and i begged them to get on top of it. again this is nine days before the election of 2016. after the election, i continued to talk to them for three months. they just were not interested. they were polite, they talk to me, but they really were confident that they had it under control. and i was really afraid that if they kept it up, there would be huge implications for

the economy, for the stock, and for society. that's when i decided to become an activist which for me was a role i never anticipated. jack: can give us a concrete example that you saw that made you think it was different? >> on the beginning of 2016 because i was a huge fan in the bed and i was love the products. and i saw posts from friends of mine that were originating in facebook groups originate with the bernie sanders campaign. they were basically hate speech. i thought that doesn't make any sense. and then about two months later, corporation was expelled from facebook for scraping data, using the add tools to gather identity data on anyone interested in black lives matter. then they were selling that to the police department violation of the civil rights act. and then in june it all came together. that's when i first understood all my god, the same add tools that are so valuable to all these companies in the economy

can be used to undermine democracy. and that's what i really dug in and try to understand what was going on and ultimately reached up to mark and cheryl. jack: to their two issues our personal privacy is being scraped, and what effect that has with the bigger picture. >> as an investor i believe technology is one of those things that can empower the people that use it. if the business model and there are three elements we need to address. one is the use of algorithms to amplify things in order to capture people's attention. they don't just give you a newsfeed of what's happening in your life. they pick stuff they think will emotionally engage and cost you to spend more time. it turns out for most of us, triggering flight or fight is the best way to do that. so outrage and fear. that is hate speech conspiracy theory. the business model thrives on the negative content. the second piece is micro- targeting. then you have so much

information about people, that you are able to create an ability for advertisers to isolate exactly the people they want. and to essentially buy from facebook a prediction of future behavior. and with that they can control the choices available to people and drive them to places. politics that has been disastrous. as you create but his filter bomb drills where they are isolated and hermetically sealed bundles. and the last piece is the industry as a culture where the data is there's not yours. it may come from you, but you have no rights. so they have what's called an opt out model which is they have all the rights unless you force them to take it away. i want to shift all of that to opt in and say i'm sorry if you're going to use my data you need to use my permission every time. jack: what other changes would you make? >> i think those three the starting point and then you want to look at the economy and what you need to do to simulate more entrepreneurship.

facebook, google, amazon, and now microsoft have massive monopoly power. as a consequence start ups are getting choked off. i look at that and i think all of the money is being diverted into delivery service and crypto currencies and things that may be interesting and attractive but aren't as important to the economy are not as valuable as reengineering the internet for the next generation. i want to get back to that. we are not going to be able to do that without some use of the antitrust laws. i want to follow the models with at&t which gave rise to personal computers and gave rise to software and the internet. antitrust laws in tech has been great for investors. i suddenly forgotten because it hasn't been on for so long. every major wave of tech has been driven. if you go in and deal with algorithm implications, micro- targeting comments switch to opt in versus opt out, then you have laid the ground work for antitrust to give us the

photo entrepreneurial economy that any investors going to salivate over. jack: sounds great, roger mcnamee thank you very much. we reset the facebook for a response but they did not respond back. marcus zuckerman said falsehoods could be given to a large on our platform. i don't think most people want to live in a world where you can only post things that tech companies judged to be one 100% true. in an earnings call last week he said facebook had more than 1000 engineers working on privacy related projects. we'll be right back with ideas on how to get better

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years. frequent predictions of his demise keep proven wrong. greg peters of fixed income gives us his view on bond the land. greg you have a wonderful phrase on what he reports re- describe the economic backdrop as exquisitely mediocre. what he mean by that? >> what i mean by that is the seemingly oxymoron is the 2% growth with very little inflation, is very good for bond investing. and so the economy doesn't run too hot, you're not falling into a recession, and that is a really good environment to be in bonds. jack: we got a story, whole package about bond investing. and other interesting points active management in bonds has done much better in the index then active matters in stocks. they are usually down, but you have beaten it. what have you done with that economic backdrop strategically to outpace the index? >> i think being an active manager and bond is essential.

just because the nuances in the idiosyncrasies of the bond market. bubble we have been doing is we have this belief that yields will go low, and move lower until we have a long duration. we have been pretty bullish credit risk as well. so we have been invested in high-yield, emerging markets and corporate's. jack: what would cause you to seo for intake some of risk of the table? >> evaluations would have to move more meaningfully. we aren't there yet. have to be a situation where the economy starts to deteriorate in a meaningful way. i don't think where there yet. so i still think we have some time as this cycle seems like a still has legs. >> so won't you say you are avoiding in the scenario right now? >> the mom part of the market we continue to avoid is a lower echelons of the riskier part of structure products. so the top part of structure products or the aaa's and aa's, we like a lot, but investors have plowed into the

double bees and triple bees of that world because they need yields and they need the leveraged yield. so what happens there is that it really creates an opportunity for us, aaa holders, but the bottom part of the capitalist structure is extended in my mind. jack: one thing i noticed in your folios is a high concentration of foreign bonds even in your core bonds. portugal is an issue, why is that? >> it's a really good and environment to be a dollar investor outside of the u.s. it's a currency heads coming back. at the same time, if you look through europe with a proactive in the. field part of your trading much wider than say germany or france. jack: which are negatives. >> exactly we think that will continue to compress because that's what the ecb is trying to achieve. and i think over time, you will see that continue to narrow. >> how long have you been holding those portuguese bonds? >> for a while. some of our biggest holdings

have been in the periphery. it also adds a lot of diversification to u.s. in high-yield corporate's here in the u.s. but we have been holding them now for several years or so. and so when greece was in the midst of its crisis, that's when we really became quite bullish on greece. we have been holding it ever since. sumac this is the most of bullishness i have heard on bonds. everyone says cautiously optimistic. you are flat out optimistic. >> and bond investors not flat out optimistic because the upside is usually constrained. but i do think there is too much negativity currently. and it's easy to be negative. there's lots of things coming across the headlines. but unless you truly believe there is global, economic recession, then i think it's really hard to get overtly negative on the bond side. p9 i want to go to been briefly with baron's equity over land.

>> we are also looking for income but we looked at stocks overseas. we found in places like vargas, which is a pharmaceutical company like the ones here like eli lilly but has a slightly better dividend yield to it. we also found in china with china mobile. it's a stock that barron's likes a lot it happens and pay dividends of 4%. so for u.s. investors who might get 1.5% off of it ten year treasury and 1.8 off of the s&p 500 on the dividend yield, you can actually get more dividend yield outside the u.s. jack: real quick before we go, greg, what is the fed get it in next, raise or lower? >> i think they're on hold. if you look at the price action of the market this week the market is saying you need to cut again. i think it's too premature and too responsive to current events. so i think they are on hold. but with the market is interpreting is that if the economy does deteriorate they are ready and they will cut.

jack: up next roundtable members give their upcoming investment ideas for the next week. stay right there. ♪ [shouting] [clapping and shouting] [cymbals clanging] [knocking] room for seven. and much, much more. the first-ever glb.

jack: after finishing off the week with some ugly news the market, dow down more than 600 points, coronavirus, jack you are optimistic. >> three bullish points fourth quarter growth for the s&p 500 was pulled lower by a couple big companies exxon and boeing. if you look at the meeting company the typical company was actually 4% growth for the fourth quarter. cyclical is where the big drag last year on earnings they will be a contributor in 2020

to help out growth. and coronavirus, i would point out fully point out them market to what happen with stars in 2002 remember the ten year treasury yield was 4% back then. so only 1.5% now. where you can put your money beside stocks? jack: fen cyclical is what they're talking to your bullish on energy. >> this is been one of the worst at january's and record first energy stocks. so look through spider etf it is gotten killed and could be worth taking a look at. >> t-mobile is a deal goes through you get the cost energies. if it doesn't go through, you have a company who still growing subscribers and may reinstate its buyback. you also remove the ratings are a overhang that may be weighing on the stock. if it doesn't go through there might be a short-term depth, the prospects will be better. jack: t-mobile looks like the winter. >> still growing subscribers

of course. jack: thanks everybody to read more check out this week's i'm barron's.com and don't forget to follow us on twitter at barron's online. that's all for us, see you next week on the barron's roundtable. special live coverage following the president's state of the union. maria's wall street is next. ♪ ♪. maria: happy super bowl weekend everybody. welcome to our program i'm burnt maria coming up in just a few moments my sitdown interview with goldman sachs and david solomon on business in 2020. and then my amateur view with growth in the global market, allocating capital today. first let's talk earnings. apple's record-breaking quarter relisted its highest revenue ever is $8 billion as last week boosted by iphone wi