allies in the media, the same people who tell us democracy is imperiled because elected republicans wanted to tighten voting laws or keep ideology out of our children's education. they are increasingly bold alliance poses a much larger menace to american values. that is it for us, i'll be back next week with in-depth on the wall street journal at, thank you for joining us. >> "barron's roundtable" sponsored by invesco qqq. ♪. jack: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead i am jack otter. coming up the fixer-upper frenzy has been great for investors and home-improvement retailers and tool companies stanley black & decker jim lori will be here, where income investors can find double-digit yields we begin as always for what we think the most important things investors ought to think about right now.

bonds and growth stocks rallied as buying stocks lagged as a rebounded slowly down means stocks encrypted under the microscope what it means for the trading frenzy. the fda controversial approval of biogenic old-timers therapy more drugs and treatments on the way and will insurance companies even cover them, my colleagues ben levisohn, carleton english and back onto jack hough. we saw the ten year bond dipped below 1.5% in yield. >> this is really interesting this is probably the most normal reaction we've seen to the falling bond yield in a while you expect to see tech stocks in the nasdaq do really well and they did and you expect to see stocks that are sensitive to rates of benefit rates are high when banks do poorly and they did as well. amazon had a great week and so did microsoft and apple showing signs of life the weird part

consumer price index at 5%, that is an amazing inflation number so the market seems to be betting this is the peak that we've gone and inflation is going to go as hot as it could go and it could cool off that's a great environment for growth stocks. jack: if you're worried about inflation low happy bond yield suggested inflation is not a big worry but on the other hand does this suggest that the growth is going to be transitory and back to the last decade of slow growth? >> the market is not making that conclusion but i think we have to keep that in the back of our mind slower inflation means lower growth and if growth is to slow people will worry not that the fed is not enacting quickly enough but going too fast, that is taking a little bit of china for value stocks in the dow things like caterpillar the drop 10%, i don't think that is a scenario that's going to play out but it could be a bumpy ride for a while.

jack: what are you looking for the market next week. >> the fed's meeting that's what we have to pay attention too, they will have the same message inflation is transitory, economic growth and are going to sit on their hands for a while, we will be looking for any hiccups in that message, and probably will end up being something as a nonevent. jack: carlton if you want to find excitement, the memes stocks are always there to provide it, this week they took notice of sec chairman jerry chancellor's comments. >> it's always interesting, up or down the stocks always have attention, you have a number of things happen gamestop closed with the sec probe into the trading frenzy but several comments from sec chair very chancellor talking about changes to market structure and the payment for order as robinhood in the game of vacation that was trading when you look at the

free trading apps the old confetti that used to pop up like robinhood or that would induce others to trade more. jack: why do we think, what does the sec think of game application of the payment order flow, does not encourage investors especially inexperienced investors to pour more money into the stocks? >> if you think about anybody who bought a scratch off lottery ticket in the creek enter quick reward get people to act more often has made comments to that effect, some people might be trading more often than they normally would and that is not necessarily good for the market but it's been proven it's not good for individual portfolio returns either. jack: i should point out that he also makes comments about crypto and there's been a sense that the government does not get bitcoin but he taught courses in his mit when he turned his attention maybe we will see action. we can talk about that for hours but i want to get to jack hough

on the biogenic alternatives drug, tell us about that. >> the drug is the first new alzheimer's drug in nearly two decades one of the biggest approval controversies there is a toxic protein that can form plaque and brains and believe to play a role in alzheimer's and dementia as a theory is not proven. biogenic developed a drug that reduces the protein and had a couple of trials and the drug was unlikely to prove effective but produces no evidence to apply for an approval what we know one of the trials shown to reduce that protein that i mentioned by 30% but there was a tiny effect on cognition and function which is the whole point to begin with an independent panel that strongly recommended to the fda it would not approve this drug and fda approved anyhow and members

resigned and one said the worst decision he could recall for an fda approval, where that leads us the drug is going to cost $56000 a year 6 million people with all timers in the u.s., the fda wants biogenic to produce more evidence that it makes patients better off but it could have years of sales between now and then and ubs thinks sales will peak at $30 billion a year that's as much money as biogenic made last year the report on thursday tells you what wall street is thinking, like it or not it is going to get used. jack: we are tight on time we have to go but one interesting thing whether insurance companies are willing to pay the $56000. $56000. >> i've seen them push back on much less controversial cases. jack: coming up noisy leaf blowers and lawnmowers from working from home, the ceo stanley black & decker says electric garden tools is good

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jack: one of the effects of the pandemic a boom and home improvement continues with pressure on prices from plywood to copper pipes but it's been a boom to tool companies and home-improvement retailers joining me stanley black & decker jim lori thank you for coming on the show, we appreciate it. >> my pleasure to be here. >> there is nothing like being cooped up in the house to give people a serious case of fixer-upper fever, tell us about the impact of covid on stanley black & decker sales. >> is a bonanza the biggest

sales growth we have seen with the company 21 years to put perspective to a business up 45% in the first quarter total company over 30% and it looks like the second quarter is going to be similar in terms of growth now we look at the back half up against comps from last year of 10%, 25 in the fourth and it looks like we may launch over those and it's been very incredible not just the u.s. in the north america but europe and the emerging markets, latin america, asia, everywhere, it is incredible. jack: were used to grabbing the hand-held power tool that is cordless but electric cars get the headline there is a bigger revolution going on in your world which is even lawnmowers and leaf rollers are becoming battery-operated and that means suddenly brand loyalty is more important that it used to be because of the interchangeable

batteries, can you explain that the. [speaking in native tongue] >> were trying to form that because we think it's great for society and we think we can make significant money doing it, converting that market, if you think of automotive on one end and the power tools on the other and in between is up power output and were about to exercise an option to acquire one of america's leading outdoor power equipment company accompany called mtd a family company in ohio almost $3 billion in gas power outdoor power equipment which we can convert to electric overtime. jack: i was in a zoom meeting in the screened in porch when i had to run inside with the laptop because the leaf blower next door blew me away. a lot of communities are cracking down probably because the people stayed at home but there is a regulatory tailwind for electric as well. jack: absolutely it is just getting started on a state basis

and locally there is a fair amount but we expect as the awareness grows here is a little example one hour of the outdoor blower is driving a toyota camry 1100 miles in terms of pollution that does not account for the noise, the noisy gas blowers and lawnmowers run at 95 decimals which is the equivalent of a motorcycle, the electric power much closer to 70 which is a washing machine, it is a big deal noise pollution, the safety aspects, no gasoline spills, et cetera it is a fantastic combination of benefits for society and regulation will follow in climate and everything the regulators will look for ways to make this happen faster. jack: i want to pick it to something that you're working on which is reassuring there's a lot of reasons from supply chain

to bringing manufacturing to north america can you talk about your efforts are? jack: we've been added a while were opening up three plants in north america two in mexico wanted the united states this year, the idea is is driven a number of different things, with the geopolitical tensions with china and 13 - 15 weeks supply chain, cycle time that is quite elongated when it comes to being able to respond to volatile market conditions, that is important and then there's the consumers and channel partners they want everything yesterday and the cycle time makes it very difficult and what is happening automation something called industry 4.0 is revolutionizing manufacturing has come to make it possible to make power tools and other tools in the u.s. cost competitively with china so we are in the process of migrating

enormous amount of manufacturing back to places where we sell the product in the developed markets. jack: there's a lot of talk of inflation you have a particular perk where you can view that supply chain as you mentioned are a problem but persistent or transitory, what do you think on inflation. >> i thought it was transitory and i was hoping but the more time goes on i think were in a new era we are preparing and beginning to raise our prices for our products just like all the input costs coming into us going up pretty significantly. jack: thank you so much for your time we appreciate it. time we appreciate it. jack: thank you, my pleasure

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jack: lower interest rate make it tough to find investments with attractive yields this week's barron's explores three surprising areas to look fixed income ceo joins a roundtable to share her insight. i want to start out with this concept with low bond yields, low yields everywhere alexandra skaggs ends up an obscure corners of the market, what did she find. >> you got that paycheck, traditional bonds offering so little of yield you have to go far afield to find anything to generate income alex looked at loan obligations or take a bunch

of loans made to companies and break them down into pieces some are riskier than others the riskiest piece have big chunky yield but not for regular investors to buy they are very risky the straightforward is to use a closed in the fund the offer double-digit yield but have their own risks, picking a skilled and reputable manager is key. jack: and other places bbc or business development corporation. >> that is right and makes direct loans to midsize firms nobody really heard of, to take the interest on the loans that they made in return income to investors 7 - 11% there is a lot of these to choose from is not like the closed ones that do clou's is easier to dial lynn a comfortable level of risk but they're not lending to the big household names so that adds to risk as well. jack: one more mainstream mortgage rates. >> mortgage rates, these

cavities by mortgages and then borrow against the mortgages and buy more mortgages that allows them to pay yield 5 - 10% they are pretty safe except for short-term funding markets ease up during the pandemic and during the financial crisis, those of the big times you have to be worried about. jack: let's bring in from all, thank you for joining us i went to step back and get a birdseye view of the fixed income market. >> was central banks suppressing yield it's not surprising that investors are being forced into going further out on the risk spectrum as alex pointed out we do have to go further on the risk spectrum it's not that there's nowhere you can find yield we do find yield not comfortable to what investors have become used to but you can still get yields in areas such as the high-yield space of floating rates, emerging-market debt opportunity, these are

opportunities to get in the different areas and it's a little bit more risk, i would say despite the compression and yield we should not overstate the risks attached to something like high-yield, for example by looking at index quality wise is better today than it was a year ago because covid flushed out weaker credits and you also added the enormous number you are getting investment great companies that dropped into the high-yield space, overall we are still comfortable with default traits at the stage we think given the backdrop we think we are probably okay in these areas. jack: should i be worried should i panic about the fact that the bond market is not panicked at all right now if we are supposed to be reaching escape velocity on the economy we have low

inflation is. rise bond yields and we have falling, does not mean the economy is be sputter in the back half, should i be worried about the stock market. >> here's the thing i'm going to talk about the economy and leave the stock market to you, i think that the bond market is a big saying way, we have massive inflation but everyone has internalized in the market is fully internalized that this is supposed to be the peak the fed told us we would have base affects everybody talked about base affect ended accounts for 60% of the. that we saw yesterday, having said that i think there is a significant drift that the market is not prepared for inflation running a little longer, essentially base affect might carry you to this month the part of the next month but if they continue to see high inflation as we go into the full

and latter half of this year i think market is not yet priced for that, that is for sure today's bond yields do not reflect that but maybe a combination of a few different factors reduce beneath the infrastructure deal to get done quickly so issuance will not be as high, that is one factor but the other factor for sure is belief that inflation is extremely transit he and that might not be the case. >> it be interesting to see how transitory is transitory is a six month, 12 month, nine months, unfortunately we have to leave it there but i know you will watch this very clearly. jack: thank you for coming out jack: thank you for coming out we are thrilled we finally found our dream home in the mountains. the views are great, the air is fresh. (sfx: branches rustle) it is bear country though.

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jack: the longest day of the year is coming up that has you think about solar energy. >> you guys talked about fancy ways to get yield clou's and bbc's in dvds and tgif, i don't remember them all but put solar on your roof, that's an easy way it's a cash return on investment where i lived in new york solar is 7% a year solar costs have come down by half over the past decade the cost of grid electricity goes up by more than 2% a year right now 26% federal tax credit as an absolute boom on solar, it is not just tree hugging soy latte drinking coastal elites.

i spoke with the ceo son runner the biggest installer this past week and he told me he has more republicans and democrats signing up because they like to bring down their cost and like ditching the power company i'm not suggesting that you drink soy in your latte you're more than an almond milk i. jack: i'm not into suede but one interesting way is an etf with tan that owns a lot of stocks in the sector. moving to investable ideas from carlton. what you got for us. >> taking a look at the owner of the restaurant chain chilis works with the reopening between fast food and sit down they have the kitchen concept just wings franchise, also the new normal that we are in as well. jack: one kitchen, two restaurants, then what is your idea.

>> my worst pick by far, the stock is still down 12% but it is showing signs of life, fda approval, presented asko and biotech starting to act better it could be regeneron's time to make up the lost ground. jack: i like your loyalty, thank you for the great ideas, to read more check out this edition of barron's.com don't forget to barron's.com don't forget to follow us on twitter at ... male announcer: coming up next on "leading the way." dr. michael youssef: your response to god's graciousness with you is of vital importance. jesus tells us that he watches when he gives us small blessings, how faithful you are with that little that he's given you. what you and i need to do is to express grace towards somebody else, to see your blessings as something to be used to bless god, not just for you. announcer: coming up next. ♪♪♪