and says i'm going to let freedom ring and people say what they want it's like no, you can't do that. >> i agree with democrat >> "barron's roundtable" spon. jack: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. coming up, white house economic advisor jared bernstein with the job market, and when we will get relief from high inflation. a strong dollar has pro-plaps and cons.

should you adjust your portfolio? we begin with three things investors should be thinking about. stocks fell after a stronger-than-expected jobs report. what it signals for upcoming fed hikes. cars are still selling at and above their sticker price despite rising rates on financing. how long could it last? president biden pardoning thousands of convicted marijuana possessors. what it means for legalization, part stocks and investors. on "barron's roundtable," ben levisohn, kristin bell strum and jack hough. the market was up huge monday and tuesday and investors got nervous into comes down to that. ben: one of the most depressing gains i've seen in a long time in the stock market, massive rally since december of 2,020 at the market tried to get it back and didn't quite succeed. it was all about what the fed is going to do, we had weak economic data at the beginning

of the year, australia's central bank and a lot more than that. the fed is going to pivot but fed governors are not going to pivot and then we got this jobs report. jack: they are not going to change until they slow the economy down. could not have been clearer on this point. next week we will see earnings. will that affect the economy? ben: the market drop has been become of the p/e ratio, people want to pay less for their stocks, higher interest rates, more from the bonds and cause pes, if earnings start to come down we might have another leg down in the market because when the earnings are lower the pe is higher and you bring it down again. then you have another leg lower.

jack: geta cpi number next week. i bet you tell me not to expect anything for that. ben: numbers are still scary hi, looking at 8%, 6.5% would be up from the previous month which excludes food and energy. i don't think the cpi number does anything for the market. jack: i want to change the subject. when i bought a car this past summer i said at the time no question this is going to mark high end used car prices which i got. jack: the chrysler pt cruiser convertible, they don't make that anymore. jack: did my daughter spoke glitter on it and prices came down. jack: i want to get one of the pickup trucks with the big giant grills, the prices, as

one data group put it, the sticker price is the price, the incentives actually declined last month and that is not what we are expecting. inventories were up. we are waiting for this moment when it has gotten so high, loan rates, financing shortages and waiting for buyers to pull back but it is not happening. there's pent-up demand out there and as one analyst said, they got comfortable being shorthanded during the pandemic. they are not in as big a rush to fix every bottleneck. they might have stumbled on the actual business plan of being profitable. jack: like oil companies. i looked back at the ford stock price, $12, $10, $12. 1994, $12 the same price.

jack: the carmakers are cheap, they are doing well but as you say they haven't been the most exciting shares. one analyst said an interesting way to go is to look at the suppliers, the manufacturers are doing great. they are squeezed in between, they can't go, volumes are still at recession levels, 13 million vehicles a year. before the pandemic we were at 17 billion. carmakers were happy with that, suppliers can't go to carmakers and say the volume is down, we want 20% price increases so they are being hurt right now but if and when these volumes do come around to more normal levels those suppliers like magnet international are more levered to the upside. jack: in 2,000 there are 17 million cars, now we are down to 15 million. let's talk about pot.

go ahead and announce that -- president biden is pardoning people convicted of federal, simple possession which means a small amount. is this legalization? kristin: the answer is no. one thing to consider is the number of people affected by that is 6500 so this is not a lot of people and another factor is biden made a second announcement, i'm going to ask my administration to look at how we are thinking about marijuana. a drug like heroin and is there something we can do? however, if he did make a move that would be in favor legalization but he needs congress to do that and congress has shown no interest of making any progress on legalization and with the midterm election around the corner to see that changing anytime soon. jack: part stocks rallied strongly on this news. they were up 30% but if you

look they are down 50%. kristin: that is worth noting. one of the big marijuana etfs, that is down 50% for the year so 30% is the question. jack: the september jobs repor the day you get your clearchoice dental implants makes every day... a "let's dig in" day... mm. ...a "chow down" day... a "take a big bite" day...

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jack: there's lots to digest on the economy. longer than expected jobs report, increased focus on the fed. senior white house economic advisor jared bernstein, thanks for coming on the show. appreciate it. another strong jobs report on friday morning but good economic news is often bad news

for the market. investors see as a sign of bid rate hikes will continue and rate hikes take a long time to work through the system and slow the economy. is it possible we will look back and decide the fed was too aggressive? >> we are careful not to get intergranular critiques of the federal reserve, we expect there independence and the president has gone further than that and endorsed their hiking campaign as they are the first and foremost inflation fighters out there not just here but across the globe and inflation is very much a global phenomenon. when it comes to the job market you have to recognize 263,000 jobs in september, that is a good solid number but it is way behind the half-million job gains posted a year ago and that is the down shifting toward a steady stable pace of job gains president biden

talked about a few months ago. if you look at the cooling of the housing market, slower job gains, we had adult -- a jewel that showed significant decline in vacancies. i think this is a useful and important indicator in the pace of job gains. >> as an economist give your best projection. where do you see inflation a year from now? >> everybody's crystal ball is a little cracked around that corner. i will say every forecast i've seen has inflation considerably lower. what i can tell you with great confidence is if that is available part of that will be from supply-side improvements, and snarling supply chains that if you get under the hood have been quite dramatic, the new york federal reserve has global

supply-chain pressure index. it is down off of its peak. this will increase the throughput, ship to shelve, the same rate they were pre-pandemic. we've seen a sharp decline in the cost of shipping, a buildup of inventories and we see some of those maritime parking lots come down. jack: the most obvious manifestation is gas prices. opec has announced a production cut, are there any other levers the them can pull with saudi arabia? >> the decision is shortsighted, particularly in a world where we have real pressures on, not are these, the war in ukraine, our job is to keep our head down and do everything we can to bump up

the global supply of oil to get back on the trend where we saw gas prices falling for 100 days in a row. the president has talked about a release of 10 million barrels from the strategic reserve, part of the 180 million release he announced in march and that was instrumental in helping get prices coming down. jack: one of the proposals on the table is an export ban on oil, the dallas fed has come out and said that's not a good idea. what is the administration's position? >> i will not lean into any policies like that before their time. what i can tell you is the president has consistently talked about the importance of an ample supply of this global, daddy and one of the pieces that is pressing is domestic production. we are about to hit a domestic

record for oil production in this country and we have a wide spread between wholesale and retail gas prices. another thing you will hear this president talking about, he is spot on in this regard, to make sure any kind of gains, those profits are shared with the american consumer by using this pressure at the pump. people need breathing room when it comes to gas, with $5 a gallon in june, we need to press that point. jack: are we are record all-time high for us oil production? >> we will hit that record. jack: pivoting to college loan forgiveness, president biden's move, a lot of economists say people are struggling with their debt but what you are doing is subsidizing colleges

and in many cases the for profit ones that were the worst at getting students into jobs. >> i don't think that's an accurate claim. the inaccuracy of that claim is not the debt forgiveness program we just announced, but ever since we got here to cancel the debt and take tough action against the type of colleges you are talking about especially the for profits that don't come anywhere near meeting the promises, the department of education is well aware that that is an unacceptable play if you are using federal government loans and $20 billion in loans for those colleges have been canceled and that is before we get to the debt forgiveness the president announced a few weeks ago. jack: we appreciate it. the strength of th

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jack: the strength of dollar is putting pressure on overseas economies but could be opportunities for us investors, this week's cover story in "barron's roundtable" and jack hough is the author of that cover story. all-american apple pie, strong dollar. jack: the dollar was briefly getting clobbered on tuesday, i was almost cheering it on. the problem is it sounds great but makes things more expensive for us multinational exports. a great season coming up, earnings, 2.9% in the third quarter, the worst since the lockdown days of the pandemic two years ago.

the other thing, for stock investors, it might way on stock returns going forward. research out of gmo the asset manager, first of all currencies, over and undervalued ones, more expensive ones, all the cheap ones rise, that is what stockmarkets do you can buy shares, you tend to do better than average and when it is expensive you do poorer than average. it is 17%. the euro is 17% underpriced and japan has 20% underpriced to. jack: not as simple as backing up the trucks and loading them. jack: it is complicated. in the currency world people argue over how much the dollars up. the dollar index or 6 currencies, using the trade data from the fed and imagine how they argue what is

overvalued, i would regale all of you with the shortcomings of the purchasing power, we will talk about it later. the point is 17% over price with the dollar, one analyst said it is only 12% and that is not superhi because it was 5 percentage points more overpriced 20 years ago. some banks think of it that way. jack: as other countries rate their hikes, will the other dollar peak? >> i don't know but i know we are an expensive but. you get a double discount if you're putting money overseas. not only do you get the cheap currency but in europe and japan they are lower than they are in the us, dividend yields are higher, the time is right to shift money overseas, don't put all of little timmy's college fund in the end.

the us is 60% of the world's stock market right now. if you are over that figure consider coming down to and giving money overseas. kristen: we've all felt the pain at the pump this year but you talked to an analyst who said high energy prices have been better for the us economy than worse. jack: the us is a net exporter since 2019. that's not the case in europe or japan, europe is getting killed on energy and concerns about heating homes, the us economically speaking may have been in that beneficiary with money falling into energy, one of the things if you are out there ahead the dollar is not as expensive as everyone says one of the main things you point to right now in this position. jack: say i buy what you're selling, what's the best way to invest?

>> i will give you some cheap pdfs, if you want to buy japan, ew j, vanguard, if you want to buy into emerging markets i don't have great answers. there's a cheap index, half the portfolio was in china, hong kong or taiwan, that creates geopolitical, 5% is saudi arabia, the bastian of free-market capitalism because a lot of these countries have one big company so you go small and active management. emerging markets, these are high but past performances are better approach. >> we may get something good for them.

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beyond ordinary etfs. jack: are you among the 14%? jack: i'm too cheap to be among them. they finance, paying over $1000 a month in their payments. these people are paying too much. that is where winnebagos -- these are the percentages are even higher for electric vehicles, and you should have the money to pay cash and

another financial plan called honda. if you have a small business i get it. i see people all around town who have not worked with their hands since the bush administration and people are paying too much for fancy cars. i know financing rates are up but that was easy. jack: you can watch hockey and basketball at a low price and you have a stock idea. kristen: madison square garden, the company that owns the rangers and knicks, what is interesting is there's a market cap of 3.6 billion but the valuation of those is more like $7.8 billion. they don't say they are going to sell the teams but they consider it.

that is interesting. ben: i'm looking at insight, the maker of lymphoma and biotech cancer drugs. the stock has done nothing for more than four years, just dead money but looks like it is starting to make progress. jack: check out barron.com and follow u a bad job, attorney general or homeland security secretary, the case will decide the best course of action. elizabeth: high crimes and misdemeanors. the size of kansas trying to cross and ag garland accusations under his d.o.j. targeting parents speak out school board meetings as domestic terrorists and doing nothing about pro-