the strategy and we don't have any strategy of her own right now that is worth discussing. gerry: thank you for those sobering assessments. that is it for us, i'll be back next week with more commentary and interviews on the wall street journal at large, 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'm jack otter. coming up on the 20th anniversary of 9/11, show reflects on losing more than a third of his new york colleagues in the attack and how wall street was changed forever.

later a look at the pandemic housing boom, how much longer cannot last. we begin with what we think the three most important things and investors to be thinking about right now. the dow and s&p 500 ended the week with their fifth straight daily decline what factors are hurting the market and a much anticipating ruling a judge orders apple to loosen app store restrictions this ahead of the iphone release and president biden announced businesses with more than 100 employees must require workers to be vaccinated or tested weekly. my colleagues ben levisohn, a carleton english and jack cal. i am surprised the market reminded us that stocks can fall in value, what were the forces behind him. >> it was a bad week for the market but without much bad news, the dow fell 2.2 percent and the s&p 500 dropped 1.7% even though jobless claims are fine and inflation was basically in line the worst news came from wall street investment, deutsche bank predicting a correction and goldman sachs cutting third-quarter gp country gdp

forecast. the economy market to market other real-time forecasts were suggesting the third quarter can disappoint. >> the markets can corrected in the moment but for now it seems like the kind of trading you would expect from a labor day shorted week. spin want when we expect a correction it's witness was likely to happen. some other bad news the delta variant still looks ugly the beach book did not paint a great picture. other forces alter the concern you? >> open doesn't really at this point, the cases look like they have peaked and if the market was really worried, healthcare and utilities should have done well the boats rocked and since november. i think you have to worry a little bit about the economy slowing a little bit about other factors out there but what we have to worry about are the things that we don't know usually when you have a correction because something hits the market that were not

expecting. jack: that is true, what are you looking for next week? >> there is a saying on wall street you sell rosh hashanah and we have the selling going on. and you keep or is next thursday. what i would be watching the beginning of september is an awesome week and i wouldn't see how it is next week and to see if things start to pick up the week after. >> let's go to apple and investor favorite we had an interesting court ruling on friday or judge ruled that third-party apps have to be allowed to have external payment system, everything doesn't have to be routed through apple, why is that a big deal. >> there's a battle between apple and epic which is fortnite shoot them up videogame and you recall that input his own payment system inside the app store to get around paying apple

a cut of the money that it makes an apple said no way and it kicked fortnite off the app store and they went to battle in court. the judge has said it can't put its own payment system inside the apple store and i have to pay apple cut on the prior revenues. but what it can do a direct players to go outside of the app store somewhere else into play epic directly, that the way to get around paying apple apple full-time% on the news and zingo was up big and electronic rose the more mobile game makers might be able to get around paying apple for the revenue but apple continues to have the most attractive place on the planet to sell apps and it's app store. jack: is one of the most important stores in the market and the story will get an upgrade next week we expect a

new apple iphone to be released maybe they'll call it the iphone 13. what are you looking for and what's exciting about this. >> if you like speculation about new features, i'm nothing for you if you looking for bubble come thank you might get that there is a notch in the display that nobody cares about, it'll have 5g, better camera but it might not matter because there are hundreds of millions of iphones out there more than three years old ready for upgrade carrier subsidies have been getting more aggressive, j.p. morgan apple set a record this year on iphone volume and another record next year. jack: thank you for that, the big story thursday and friday president biden announcing that employers with more than 100 workers would have to require vaccines or weekly testing that is with more than 1000 people a day dying of covid, if we get

more vaccinations, were probably going to boost the economy that would be a positive but barron's noted a more interesting thing, the little nugget that the media was really picking up on. >> part of this is the testing aspect certainly were going to see an uptick in vaccines as the mandate goes through but there will be people that will not get vaccinated they'll do the weekly tested not just those people but as the economy reopens, myself included ipad covid test because of large groups occasionally. you want to look at the test makers the biden administration said it would use the defense production act to boost manufacturing you want to take a look at becton dickinson, and labcorp some of these to have at-home test but also the rapid on-site test that will see a lot more of. jack: we are running out of time but big news from a moderna about a combo shot.

>> were talking about this before is probably going to be where will have covid boosters from now on in the moderna said it's working on the shot of seasonal flu shot with a covid shot as well that would be something to look for in the years. jack: think of that good news for parents is sounds as we may have a vaccine for cages age 5 - above them. tom michaud lost one third of his new york coworkers in the 9/11 attack, 67 people they will tell us why he spared that day and using the tragedy for a force for good. ♪ ♪ ♪

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jack: 20 years ago tom michaud would've been in work as they flew planes into the world trade center killing nearly 3000 people. an important milestone with his 4-year-old son saved him from perishing along with 67 coworkers he spearheaded efforts to rebuild the company in honor of his colleagues who died in the attack the c.b.o. of kbw joins me now. tom we were markina sober anniversary was 20 years ago but i suspect not that many days ago by your memory. i imagine you think about it all the time can you tell us about that morning? >> sure that morning i was coming into work a little bit late i had been slowed down by my 4-year-old son and i did not make a train that would put me on my desk. i was on the corner of the world trade center i looked up and saw

american airlines jet moving slowly down manhattan and watched it fly into the building and i think the stories been told of the chain of events from their the second plane hit when i was there and i moved away from the building and during that time i found a phone and was able to call and after the first plane hit and they listen to the message along with the ceo of the company at his desk at the moment and we listen to the message that said the other building had an emergency they were evacuating into stay put. so i listen to the message of the world trade center said do not leave and as we all know that was before the second plane hit the building where my colleagues were. jack: since then you been working hard to keep the memory alive and turn it around can you tell us about this effort to create a day of service? >> sure there are two things,

number one to turn around the company we met those who survived shortly after 9/11 we were going to do two things, we were going to do everything to support the families of the victims. number two we said were going to rebuild the firm, in many ways it was therapeutic we felt like we could do more to help the families of we rebuilt and we put our shoulder down and we went about doing that. and that was energy and rebuilding the firm. you mention about service and what comes next. flash forward 20 years later one of the things that i think about with the 20th anniversary were added important pivot point because over a quarter of the country was too young to remember the events of 9/11 and what i'm nervous about overtime 9/11 can fade into two or three paragraph in the history book

and if that happens, that means the terrorist defined what 9/11 is. kbw not too long after 9/11 helped establish a nonprofit call 9/11 day which is a group that worked with president bush and ultimately present obama who signed the bill which may 9/11 a national day of service and remembrance and the idea that kbw and other firms were able to rebuild because of the goodwill unity and resilience that existed in this country and that's the next chapter that needs to be fully developed and that's upright for under proper way to honor those who died and that's something we've been working hard at. 9/11 day has a specific charity is supports and on saturday of this week and were gonna be packing to in a half million meals across ten cities was 6000

volunteers as our chosen charitable date of service but really 9/11 day is all about any service of any length and time and never encourage people to go to 9/11 day.org if they would like to learn more about it but that's a brief history of how that rebuild happened and what we think about now to memorialize those who passed away. jack: that would be great if that unity could spread, when you think back 20 years ago americans rallied together, the whole world rallied the french newspaper headline we are all americans and on wall street all the cooperation as various firms help themselves rebuild, does that still exist you see that on wall street? >> i will tell you the spirit after 9/11 was remarkable we had competitors calling in and offering to help and our clients were amazing. you never hope that you have to go back to the reservoir a

goodwill and our firm needed the reservoir and booster morale and get us jumpstarted and thankfully it was full. i don't really believe that that degree of goodwill and unity exist today wall street is a competitive place but it doesn't mean there's not friendly competitors but after 9/11 for the firms that were impacted the most the amount of support from competitors and industrywide was remarkable. >> thank you very much. >> think you. >> we'll be right back ♪

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jack: housing prices have risen dramatically, how long can the boom last and is by no home a good investment choice barron's cover story. as housing prices around the country have risen partly because the lockdowns fleeing from city apartments to spacious houses and what are the consequences of the price to rent ratio has jumped to housing bubble levels can you explain the ratio and the implications. >> it's a little bit higher actually think of the price to rent ratio as the price-to-earnings ratio for stock houses don't have earnings but they can produce income in the form of rent and if you don't rent out your house there still an implied rent and we can measure what landlords around you are getting so if you know prices and can engage rent you can and divide one to get a rent

ratio and that allows you to track overtime to compare relative values and if you do that houses are actually a little more overpriced than they were during the peak of the housing bubble. jack: normally our advice would be this is not the time to buy a house, rent for now wait until the prices come down and might be a little different this time around. >> that's a way to look back at 2006 but it's a totally different story based on the other choices that are available. stock valuations look sloppy, bond valuation look disgusting, you buy a house and you get a hedge against inflation your buying a moderately overpriced house and at a time when people are third tier crypto's, might not be such a bad deal, keep in mind houses are not stocked with the sense that people tend to

buy one in a basket of them and it might be in the area of where you live deals are better or on a particular street you can find a good deal, real estate is hyper local. jack: one interesting dynamic in the housing bubble we were simply building more houses than we needed builders were selling them for nothing, banks are giving people money who had no business buying a house then but now there is fewer houses than we need there is not the overproduction, does that mean there's less likelihood prices will fly? >> i think so we had the massive runoff and prices it hasn't been quite as bad as the housing bubble but it's pretty fast this is not the same stories of people flipping houses trying to get rich off of them in the house prices, it's about people deciding they wanted to live in a different way. what i see happening prices

obviously will not keep rising like this but i suspect that they will simply slow down as life returns to normal and the market returns to normal and people look at houses not because everyone is try to make a life change but you have individuals need to urge changing. >> that makes a lot of sense. as part of the cover story barron's look to homebuilder stocks this is a wonderful tailwind at least up until now what is outlook going forward. >> her colleague identified three stocks that are offered greater, dr horton looking price-to-earnings it's also restricting the selling homes in the building process which is boosted earnings and nbc holdings is another one that looks good this is expanded into height areas of boise and nashville to popular areas, this one has been growing in its revenue in entry-level if you look at the millennial buyer

they have to think about the jonesy that the place that homebuilder would want to be right now. >> for stock geeks, there was an interesting dynamic if you look at the price-to-book ratio of the homebuilders it is stayaway their way overpriced then you look at the price-to-earnings it's mid single digits they look really cheap, why that split. >> there's something really interesting going on on the price-to-book valuation they were treating two times that would be the time to stayaway but they have been shifting away from buying land outright to options so that's not as meaningful as it once was. but when you look at price-to-earnings a lot are trading 25% the five-year average. jack: thank you, really interesting. up next our roundtable members will give their investment ideas for the coming week as someone who resembles someone else... i appreciate that liberty mutual knows everyone's unique.

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jack: i just drop my oldest child off at college which involves inviting a very large check maybe i should work amazon that would pay tuition up to 750,000 employees. this addresses a problem with the corporate world is facing. >> it does a lot of employers offer partial reimbursement this is a big move paying 100% upfront for those workers were not talking about amazon prime university that will apply to hundreds and it's another sign of the labor market it brings to my mind a conversation i had a couple weeks ago the ceo of a company called shaggy which is an online tutoring company dan rosen wine he has a lot of

criticism of college and he thinks it should be like netflix and less like movie theaters, always available were they can binge the court material, on free college he calls it false baked he says someone always pays in the party that should pay its employers because her getting the benefit amazon seems to agree. jack: let's move on to actionable ideas, interesting investment ideas i'm in the start with you because i like yours. >> taking a look at silicon valley has a future in this week's magazine basically the best of both worlds almost by definition exposed to the tech sector which is doing well but they are very much a bank so they will do well in a rising rate environment. jack: didn't need to snub you just on my drinking taste, tell a sure idea. >> the maker of sam adams has done very well hard seltzer they thought it would grow and grow and grow but growth is slowing

and they finally threw in the towel and through their guidance, the shares are down 60% from their all-time high in april and looks like a good time to take a sip. jack: great ideas as always, to check out more read this week's edition at barron's.com don't forget to follow us at barron'ss >> it's every parent's worst nightmare. your child is born with a deformity -- a face no one wants to see. in poor countries, over 200,000 children a year are condemned to a life of pain and rejection, hoping for the miracle that will change their lives forever.