of the wars that are unfolding. it is difficult but it is understandable but talks about who we are as individuals i think. gerry: they're doing this precisely to whitewash it. it's propaganda that's it for this week my thanks to tammy bruce and josh will back next week with more commentary on the >> "barron's roundtable" sponsored by jpmorgan asset management. jack: welcome to "barron's roundtable" where we got behind the headlines and prepare you for the week ahead. i am hough, coming up, inflation, our stock market recovery, we will ask our bank of america strategist about your money now. there is no miracle obesity cure, or is there?

two drugmakers could see wild sales growth. we begin with three things investors should be thinking about right now. inflation is surging again and investors are tandraing don't look to them. barron shows who is squeezing drivers. apple getting into buy now pay later. what it could mean for big tech investors on "barron's roundtable". my colleagues been levisohn, carleton english and alex, why the stock market has been so sleepy and then the dow slipped on a banana peel. inflation is the culprit. what can you tell me? ben: inflation was the culprit. it went up to 8.6 in may from 8.2%. in april, inflation peaked, not quite and there isn't anyone

thing, it was oil, food, shelter, you name it but the fed has to be more aggressive when it meets next week. a half point rate hike was expected but now could be as high 3 quarters of a point. the market has a sense where the fed needs to go to claim inflation it is a rocky ride. jack: based on what we learned is there anything investors should be doing different the besides complaining? ben: not really. this is a different market than we are used to. we can't count on a rescue from the fed. those days are gone. the fed was trying to make sure growth didn't get too slow. it needs to slow growth to tame inflation. you want to own stocks the could benefit from inflation like craft hines, oil services company halliburton, fertilizer company mosaic. for long-term investors this will turn out to be an opportunity. stocks are on sale, the market

is down 20% and it could follow more but if you have 10 or 20 years the odds favor you making money by sticking with investments through the turmoil. jack: our cover story is about who to blame for high gasoline prices, blaming people is one of my favorite things. what did we find out? al: we shouldn't be blaming the gas stations. our investigation shows they are not gouging, not even close. for gas stations profit margins are down over the last 6 months, $5 a gallon, inflation only getting a profit of $0.19 right now and that speaks to the fact that gas stations in control of their destiny when it comes to price. jack: gas stations off the hook, what about refiners? what about drillers? >> that is where things get more interesting. refiners are the middle man who turned to raw oil and gasoline making up 18% of a cost of gas

up from long-term average of 14% because refining capacity is down. that's one issue. producers are getting a bigger part of the cost and the profit. they are on 60% of the total cost at the pump. put them together and you are at 80% of the cost of gas so if you want someone to blame we should start with the refiners and the producers. jack: you think producers have room to increase even though they say we were not making money a short while ago and have to keep it flat you think there's room to increase production? al: they are in a tough spot because that some point they are saying everything will go to electric cars and we don't want to be caught in a place we are overproducing but you would hope they would produce a little more to take the cost down a little bit. ben: jack: give me two stock picks. al: i would call out phillips 66, the refiner, and she'll, which is an energy conglomerate.

philip 66 has a lot more exposure in the northeast where refining capacity is tight and she'll becoming increasingly diversified, it stock looks cheap, 7 times next year's earnings and has room to increase its dividend. jack: we've heard a lot from apple this past week including about something called buy now pay later which seems to have killed the thin tech stocks. what can you tell me about that? carleton: might start looking like a bank. it announced a new product called apple pay later, rival to foreign companies like a firm which allows people to spend larger ticket items, short-term 0 interest loans for them. for companies like a firm which were under pressure, how can you do 0% interest in a rising rate environment as the economy goes that way people pay back, those have already been under pressure, shares down 80% over the last year but a big player like apple coming in looks a little more challenging.

jack: a little voice over here saying the voice of cash, cantor member which is the good side and bad side and the other voice says what about ge? these other companies that got into financing and it didn't go so well? what will happen with apple? carleton: apple has a strong cash position, could be a good opportunity to earn something but the difference between ge and gm is apple's ubiquitous. we have our iphones all the time. that type of platform makes more sense. don't know how much it will contribute to their business but not necessarily bad. jack: is there any part of you tempted to buy block or affirm after the selloff? carleton: at this point i would look at companies that have a stronger history of profits since we are going into an up business cycle. i would look at paypal, mastercard or visa. jack: thank you. how do you protect and grow your money in a volatile market?

bank of america's avita subramanian has advice you u

jack: it was another whipsaw week on wall street and the market reacted to inflation news, recession fears, impending rate hikes, where should investors put their money? joining be the head of us equity and quantitative strategy at bank of america securities, sevita subramanian. let's start with the selloff this past week. is this the beginning of a leg down for stocks are should investors be buying here? >> in terms of finding a market bottom it is a tough question. i don't think we should be

buying stocks wholesale right now. there could be more volatility as we digest the positive surprises to the inflation data, the idea that all these supply chain risks are not over yet or the fed might be more aggressive than the aggressive fed we are penciling in today. the idea is to be selective. a precipitous amount and great buying opportunities. sift through the rubble with visible earnings streams, low coverage and leverage ratios. some gearing towards inflation, and bond yields grow with inflation in many sectors, grade inflation play.

but consumer stocks are typically hurt rather than helped by inflation. jack: inflation, the factors you would look for are the ones you just mentioned. >> the way we think of this is instead of picking sectors which are arbitrarily defined as consumer stocks but are those or retailers which all behave differently. factors are looking for attributes like free cash flow yield or duration. if you pay today how long does it take to recover your investment. those are areas we find they are more well behaved in periods of rising interest rates or rising cash yields. if you think about what is happening the fed is basically moving cash from 0, 23% or 4%

over a short time. one of my favorite factors always to screen for stocks is looking for high free cash flow to low enterprise value or low firm value and that is the way to think about finding good stock ideas in an environment where there's a lot of derating and stiletto point where inflation is going to be a risk and we are moving off the grid in terms of an environment of super low cost of capital, easy monetary policy, globalization, everything we could have dreamed for for a tougher slog. jack: the big cap growth stocks were the winners years before the fed started hiking and you say it is time to prefer small caps. why is that? >> them are an interesting cohort and the opposite of what has done well over the past ten years.

we had a disruptive disinflationary environment where these themes, disruptors, technology, mega tech, led the market. today when you look at small area, some of these companies that were more cyclical and haven't had a strong economic recovery and benefit from higher us gdp growth. when companies tell us what they are going to do a lot of big global companies are changing their supply chains back to the us, what does that mean? we are in for a real cycle after many years of corporate under investing and us gdp growth will be better than rest of world gdp growth. in that environment we think smaller companies could benefit like they typically do from these big cycles. furthermore when you look at

the valuation, they are trading dirt cheap, trading at record discount to large-cap where they trade at a premium so our view is they are pricing in more recession and downturn risk than larger companies. jack: is a good idea to buy energy stocks or is there a better way to get energy exposure like industrials? >> nobody owns energy out right. the question we get from clients is how can we own energy without earning energy? energy is 30% underweight in the average mutual fund, the pain trade is up. jack: nice speaking with you. thank you. you won't believe how much you won't believe how much weight some papa you'll always remember buying your first car. and buying your starter home.

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jack: welcome back. i weighed 252 pounds this morning. not to cause an eighth of a ton but in the healthy range for panda but -- looks pretty healthy. 6-foot 4-inch man not so much. the good news is i'm down 11 pounds. if i lose 7 more i will win a status upgrade from obese to overweight. 42% of americans are obese and two begin sold in makers, no phone orders and eli lilly developed self injected diabetes medicines that have a happy side effect of appetite control and profound weight loss. in one recent lily trial patients lost an average of 22.5% of their weight or more than 50 pounds. it is telling us drug under the

name we go, they could gain approval next year. both companies are working on follow-ups including in pill form, jpmorgan predicts the worldwide market for obesity medicines will explode to $35 billion a year by 2,030 one, could be transformative for these two companies. let's bring our panel. you must be looking at the stocks. how do you choose between them? ben: you don't necessarily have to. there are some investment banks that said she was lily but city says it doesn't matter. a lot of people focus on market share but they say the market will be so huge that both companies can benefit. this drug is not only good for diabetes and obesity but heart and kidney disease as well. right now neither stock is cheap and got a big boost but when it comes to these drugs they both stand to benefit. jack: if you have to pick a favorite which would it be?

>> i would choose lily for its diversification. the drug trial results, it announced diabetes and heart failure drugs as well. they all looked good. if you want that diversification in the pipeline look at lily. jack: the new obesity drug sells for one thousand dollars a month. insurers have historically treated weight loss drugs like botox. they say it is cosmetic, the patients pay for it. what will happen with these new drugs? >> there's a possibility they get lumped in but you have to factor in the cost benefit analysis insurers might be doing with weight loss, the risk of heart disease, hybrid pressure, diabetes and a number of ailments the goes down. is possibly insurers may be willing to pay for that drug so that they are not at risk of paying for other medications or treatments over a long time period.

jack: would such a huge patient population around the world and the costs so high as their chance these drugs could send up insurance rates for everyone? carleton: there's the risk of that but you have to keep in mind as sticker price we see is not always the same price insurers negotiate with drugmakers. there is the risk but it might not happen. jack: i have no plans to take these drugs anytime soon. i will focus on eating less and keeping my chin up because when my chin goes down i get something weird going on in my neck on television. you say are skeptical about these medicines. why is that? >> ben: i hope these drugs work but i'm skeptical because we've seen decades of disappointment when it comes to medication and devices for weight loss and then there's the issue of access. a lot of lower income people struggle with obesity. we need to figure out how they will afford these drugs and

then the more costly, healthy, fresh foods needed to be paired with that. jack: people who might need them most might not get their hands on them. al: that has to be the concern. we have issues with access to healthcare for sure and certainly needs to be addressed. jack: the history, betting on weight loss medication or fitness in general has not been great. when you look at that obesity rate 42% of americans any chance of making a dent on the fat? down to 40%, 35%, don't think it will move the needle? jack: al: there has been some positive outcomes in these trials. that is a huge big drop. 52% would be a powerful thing for our healthcare system and the health of our population. let's hope so. jack: thank you, doctor.

may i call you doctor? let's get to what is most important here. meet. i would describe you as almost annoyingly fit. give me your top three tips for what is going to get me from panda weight 2-person weight? 10 seconds each. ben: my peloton is gathering dust in the corner. get on that bike. jack: alex? al: the only thing that works for me is deciding after dinner i am no longer going to take snacks, turn off the lights in the kitchen. jack: carleton? carleton: make it easy to eat healthy foods. i keep sliced vegetables and fruits in the fridge that are easy to get to. jack: i have heard of both of those. thank you all. roundtable members give their investment ideas for the coming investment ideas for the coming weeks.

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jack: we talked about apple earlier. they had some car announcements. will i or won't ib drawling are driving a mac anytime soon? >> i think the overall chances of an apple car are small but after this week they may be a little higher and here is why i think that. during the keynote address this past week apple showed an ambitious demo in which its software took control of the dashboard, going beyond the rado, in includes the gps, that could be great for an iphone user assuming the software doesn't crash but what carmaker

will turnover that -- i don't think automakers will do that. they have it hard enough. if apple is really serious about taking over the carpet of the car like they should in that video they will take over the engine, the chassis and everything else as well and that would be an apple car. chances are little higher based on that. jack: i am picturing going to apple for my next oil change. carleton, how about one last investment idea? carleton: this is what i talked about in january. if i like them then i love them now. inflation is killing us all. these bonds, you can earn more than 9% on them. a limit of $10,000 a person, they are sold in nominations as low as $25. jack: what have you got? ben: steel dynamics dropped 10%

in the last 5 days, it trades 4. 6 times earnings, less than abbott's 5-year average and free cash flow machine. stock as cheap as it is, a lot of that downside. jack: great stuff, thank you. jack: great stuff, thank you. to read more check (announcer) the following is a paid presentation furnished by rare collectibles tv llc. (announcer) the morgan silver dollar is without a doubt the most iconic coin in united states numismatics history. designed by united states mint assistant engraver george t. morgan, this silver dollar series was minted from 1878 to 1904 and then again for one year in 1921. the morgan dollar is nearly an ounce in weight and has a 90% silver content thereby containing over three quarters of an ounce of pure silver.