jack: welcome to barron's roundtable of the sharpest minds on wall street make to get behind the headlines and prepare you for the week ahead. i am jack otter. we begin with what we think of the three most important things investors should be

thinking about right now. big tech companies hit by coronavirus, how supply chains are hurting apple, amazon facebook and more. a morgan stanley with a 13 billion-dollar bill of what it means for investors and soaring ahead of their flight playing the new space race barron's table tonight we will start with reshma. the market hit a new high this week and started falling down to 400 points, one half percent. coronavirus clearly one of the concerns. >> the scope is unknown at this time. we have more cases in japan and singapore the last couple of days, the numbers out of china keep skipping around. their economy is not up and running yet. the chinese economy, some millions of people were quarantined, many render travel restrictions. goldman has an estimate of all the days that have been missed it's like two months of unpaid holidays. it's crazy so factories and

production lines have been stopped and investors are really waiting to see what happens with manufacturing and transportation. as of right now the estimate is we are only at 3050% of normal levels. >> i wish stock markets would let me know if i should panic yet they posted 1.9% is now below 1.5%. that's a dire warning. that tells mashpee laying on this table right now. pounding my fist and wailing about the coming recession. but the stock market is still up for a couple% is has had nothing to worry about. jack: i think the only time it's been below this level is brexit. it's always been higher than that. it's really, really low. so what countries are we supposed to worry about? >> overnight businesses start by the tenth of march that's a change in production.

apple warned already they have been seeing production we have had a saying they don't have parts and of close their plants we have dell and hp very vulnerable they lab a lot of key components from china. the big shipping companies volumes were down. i think we're going to see a lot more of this. jack: even in the air quality over time he conceived vast improvement because factories are shuttered, they are going. the coronavirus is not the only worry. >> no, i think people are expecting a quick rebound, sort of a q1 hit and then bounce back so they been complacent. but these things or get a linger for a while evil and production gets up and going, companies have to expedite orders, margins are to take a hit. there's talking about electronic companies usually the first quarters when they prototype a new product. jack: he just heard the service numbers have not been good in the u.s. housing starts were down and all of this is probably why the rates are so low. low rates big problem if you

are a discount broker making money off of the carry. >> absolutely, what you sow this week with morgan stanley's matching of e*trade were trading companies have gone toward zero we are seeing more consolidation in the industry. that's was affecting the brokerage firms. but when you look at the big banks, the dynamics of change they are, since the financial crisis. these guys are making a killing on trading before the crisis, now because of regulations, because of a number of reasons, increase technology, they are not making their money there. so you're looking at retail consumers you see morgan stanley going by e*trade. >> they are not trying to secure the rights to that commercial with the baby that talks like the grown man and trades from his crib or the one with a chimpanzee riding a horse, i don't think you can do that think peta probably would get that. >> is a different era. jack: i sent a note to the communications director to ask about the baby and the monkey said we hear you. so they are kind of noncommittal.

>> is a different look for them and i think that's what's so interesting about the way these banks have changed because we used to say okay they are bank. but before the financial crisis they really weren't banks in the traditional savings and loan. now, since the crisis, and under regulation they have to become that and they are getting more of their revenue from these kind of traditional functions. >> morgan stanley is done a great job of moving into the wealth of space and they are really leading it's that hard. with e*trade they see a chance to get younger, not as wealthy investors bring them into the chain. >> the henry's the high earners, not rich at. so it e*trade because they have a compensation people are getting employee stocks, e*trade owns that business paired morgan stanley has that too it's a great way to get affluent clients right away. >> real quick, jack, space race? >> think the race right now is is a who can pay a stupider price for virgin galactic? >> $250,000 you delegate shot up into the air and get a few

minutes of weightlessness customer. >> is not a scalable business how may people can they do that to. >> idol of a tongass hypersonic flight you want to pay the stock this too expensive it's too risky. if you like suborbital flight, i've got a little operation out of atlanta for its called delta air lines, trades at eight times earnings but 300 bucks on sale. they will take you to disney world and back there and some peanuts and what have you. they will show you a movie. speeds nine coming up with growing competition and the move to free stock trade, it's going to be hard to choose among these online brokers paired we are going to bring you barron's varied topics, e*trade is one, but first while the corona virus moves the market there sang d d d d d

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jack: earlier i spoke to jan van eck we talked about china, coronavirus, bitcoin and more. let's listen. >> jan van eck lester you adopted that for china don't fight the pdc does the coronavirus change up your? >> and brief it doesn't. my theory for this years don't worry be happy. and the reason is if you oversimplify the world into two countries the u.s. and china, both cases you are having policies in the central-bank and the government. the u.s. has been auto street, china is kind of overcoming a hangover. they tried to crack down on their credit in 2018. and so since then, they took their foot off the brake, but it still gentle. we call it drip stimulus. but it's solid growth. and i think they will recover

from this. jack: i want to get to those we talk about u.s. stocks near being near all-time highs. this is been a heckuva ride. so they are pretty pricey now. big multiple expansion last year without much earnings growth. where do you see u.s. stocks? what should be investors be doing right now? they still look like the best house in a mediocre neighborhood. >> when your central bank is stimulating, you want to own equity you want to own financial assets. but now we are not the shop that likes to do just index market cap indexes. born distortions or exposures in the market that we like. we are concerned about things, the value of microsoft is greater than the value of all energy stocks combined. so from an outlook perspective, why not own some energy stocks. that's more tactical. and then in general, if you can get a methodology that buys equities that aren't overvalued because now some are getting kind of

profiting. we have a wide note approach. i think that something to look at two if you can embed that into your equity exposure. see nine and your etf is beat the market over time and i think three and five years. what is the approach used but the stocks together? >> think the main track, we are only talk about quality companies but the main hidden trick is to get them at cheaper evaluations. the more you start equity research looks at the earnings potential the profit potential which is the heart of any company. and then says okay, am i paying too much given our view of earnings? and so it they will do, they will sell stock on a rotational basis. and that's what is an important discipline. jack: 's with a value approach but not in the old school way of thinking about value. it's when price and growth become out of line? >> it's an evaluation done. jack: let's talk briefly about the energy past year pretty bullish on that based on lousy

performance? >> it's a contrarian view. and they also think if you look at what our investors are demanding more from from a sector that might not have a growth outlook. and that's want my money, i want my money through dividends or i want my money through stock buybacks. and energy companies had not been providing that. only the majors have been doing that. so investors are saying i'm sorry, across the board i don't care how much acreage you have, you've got to show me the money. and so i think that change in mentality and the sector will take a year or two, but that's the thing, the catalysts we need. jack: so there's a lot more capital discipline in that area. >> we have a precedent for gold buying companies. gold buying companies hit bottom in 2015, all of the gold-mining ceos were fired. they stocked outlandish spending, and again their market didn't believe them for a while, but now show me the

money and gold shares are picking up. jack: but the commodity itself is doing well itself what forces are pushing gold higher? >> the air of essential bands were talking before about central banks with capes flying around solving every problem including the coronavirus, that environment with low interest rates, that's great for gold. there's an additional elements of a little bit of concern that may be central banks can't solve every problem, especially in europe. and i think that dynamic has what's been to all diversify her's. speed nine optimist think crypto currency might be the new gold. so you recently dipped your toe in the bitcoin waters. what's your case there? >> it used to be the main boy to get the diversified exposure with gold-mining companies or shares. now with golds etf's, that's a relatively new phenomenon so that's taken with some of the

demand for gold shares. an absolute for the younger generation we are believers that bitcoin is another sort of component parities for gold and silver, now called golden bitcoin. jack: i want to ask about walmart product at your sports etf. that barron's we warn people away from some etf's to warn people about a um. they say under 100 million might be a dangerous play. you check to both of those negative boxes but once again crafted i think dabbled the return. what is your case for an east sport etf? >> fundamentally a lot of people are consuming virtual sports. more people watch online sports games than they watch the nfl or any established sport. what hasn't happened yet is the monetization of that audience. but the audience is growing and the way people play the games, watch people playing the games and televising there's all of that dimension. for the tenure view, it's hard not to think of a world that's

more virtual. now it will have her smart phones, more step is going to happen online. and it might merge with are realized with entertainment and all kinds of ways we can't imagine. so long answer, sorry, it's a trend, not just a fad. it's not a two-year thing we see it as a longer-term trend for tactical allocation and by the weights 98 million or something. so were getting there. jack: jan van eck thank you so much. what you can do first thing monday morning to improve your portfolio. ♪ ♪ you work hard for your money. stretched days for it. ♪ ♪ juggled life for it. ♪ ♪ took charge for it. ♪ ♪

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jack: this is the 25th year of barron's online broker

survey. back and we started there was something called ee schwab then bragged about 205,000 consecutive logons they called them and today you can tell alexa to buy you a stock. so reshma we have a good list you are the big winners. usually have a tie between fidelity and e*trade was number three. i think one of the trends was that they become good at both long-term investment in each raiders. jack: was interesting is fidelity in recent years have been tops in terms of people like us, regular folks at interactive trade appeared now fidelity is getting better with a traitor but interactive offers a new thing where they are looking at the regular retail investor who doesn't trade that often. i think we can go to the three of them and you can hear the top points are let's start with fidelity. >> very easy to use, fast research and you would expect that from fidelity. i think they're also kinda teetering towards the younger investor with factional shares you don't need $20500 to buy

amazon you can buy a bit of amazon. you can afford a single share brookshire for people so we split it but now you don't need that. you can do it on your own. what about interactive brokers customer. >> they're great for trading in international investing. they have many more currencies and exchanges available. you also have the ai power identification. jack: so they have lots they see what russia once and he only sent to those. [laughter] so i caught up with the chairman and founder back when we're in palm beach and i asked him about an interesting phenomenon. he offers free trade, but he says that's not the best deal and most of his high-powered day traders are actually willing to pay a commission because they think they get better execution that way let's listen to what he had to say. >> when you have broker charge commissions, they sell trades the high-frequency traders because they themselves and make a profit on it.

so in order to internalize those they have the brokers for you. the end result is the end customer is better off paying a small commission then zero commission and have his trade sold his order sold to a high-frequency trader. jack: not a big surprise and not everybody agrees with him. fidelity says they don't sell these things. also interesting as he told market watch this week that he is in negotiations with e*trade for a possible merger. before morgan stanley jumped in they couldn't quite come to terms. let's talk about e*trade, what did barron's like about e*trade? >> they're good mobile and visuals for the also have options you can practice without paper money. >> a thing it so interesting when you look at this list we have e*trade at number three about to be snatched up by morgan stanley but four and five give charles schwab and they announced the type at the end of the year.

so the amount in this industry is just really setting. jack: i think that's what happens when ed two big engines of making money. you could charge commission and then when you put money end, they sweep into these accounts that were charging or paying you nothing, but meanwhile they could make interest. now that margin is pretty much gone. >> if you're not an active trader you at the easiest possible thing. i think ten years ago i estimate is real smart about him pewter should i get an apple or the one that runs microsoft. he said apple is too dumb to buy computers i bow in the next day what is the one for people you don't learn a thing new, the easiest one fidelity? >> that's we found the survey. it's easy for all of us. jack: so in the magazine we actually lay out exactly how we did the survey and all the different criteria. and it says, everybody has a different opinion of what's is a pretty website. what is actually easy. for you and apple might be easy for others it's a pc. but i want to point out there were six categories trading,

usability, mobile, research education, news, international and then retirement and dividends which more and more people are starting to realize it's not just putting away it's actually taking it out can be tricky. >> and things on the lists that are in books the deal between schwab in each tray is going to morgan stanley, so there's going to be some serious change here in this list of capabilities brokers. jack: changes and is static or something like that. up next roundtable gives us the investment ♪ ♪wild thing, you make my heart sing.♪ ♪you make everything... groovy...♪ done yet? yeah, yeah, sorry, sorry. you sure? hmm.mmm. ♪come on, come on, wild thing. if you ride, you get it. geico motorcycle. fifteen minutes could save you fifteen percent or more.

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jack: jack warren buffett hasn't called me recently but if he did, his very first question i know would be does jack hough approved of my purchase of kroger?

>> good news i do, because if i use the word buy online you pick up in-store, being night i want to go to the store why don't you just buy it. >> it's a very big and groceries right now. so big i think there should be a separate term for getting your groceries. notice taken me about it. walmart is an early leader and they will be delighted this year end amazon to prove those -- kroger is the only pure play grocery that makes the digital investment. i think buffett has discovered a way to buy this at a reasonable price. spieth nine and kroger is a tough market business but it's going out there. these regional grocers run into trouble and some of them are closing stores. some of these customers are good and epic kroger, so there's an opportunity there for them to benefit. jack: thanks jack, we want our viewers to leave with actionable ideas what are yours? >> we are looking at caterpillar earnings dip this

year but if you look under the hood they are improving their profit margins and you're getting a 3% yield on this. the nine they always think it's a micro trade but it is really a company that can improve itself over time. it has done that. jack: so the trade ideas you have to have big building to go on. >> but margins are improving the matter what. >> i'm into something boring, rebalanced take money idea growth stock and add some to value. like iwc to do that earnings are normal, and there's no room for mistakes. jack: think that's really important point. people think that the fangs are the only way to go and that's a great trade, it might continue to be. but when one thing goes the same traction for a long time is good to make sure you're covered the other way. jack: you're not saying it's got good and you're just making sure you're covered if it does is other ways to do this as well. see meckler's equal weighted

out there. >> ryt it owns every one in the state to check out more check out this week's edition of barron's roundtable see the rest of winners in the survey. they cannot win. have a terrific weekend, i will see you next week. >> from the fox studios in new york city this is maria barter nomos wall street. maria: happy we can welcome to the program that analyzes the week was an helps position you for the week ahead. i maria barton omo coming up the cl mitchell modell is here about the steps he is taking to keep this wondering 30-year-old chain and business as well as a state of retail today. later on the adelman greenspan talks about the record one on wall street the backed up for the economy prayed first talking to me about markets is the wall street journal's editorial page editor, james freeman, james coetzee. thanks much for joining us. what is your take