youngkin used it is this a big opportunity for republicans? >> as a whole lotta democratic parent to prioritize their kids education above being blind, loyal democrats and i thought for camping for governor last year if you talk to an asian american. to have an advanced academic or merit-based specialty school or opposing critical race theory if their lifelong democrat that transcends everything and they're willing to vote and that's not with all parents and they made it run out of time this week my thanks to lee zeldin and byron york i'll be back with commentary and inte >> "barron's roundtable" sponsored by global x etfs.

jack otter: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. we are setting fresh highs, we will ask the dean of valuation how to value stocks now. a high-tech revolution propping up for american farmers which companies are getting traction. before we begin, three things investors ought to be thinking about, stocks finished the week higher despite rising bond yields. tesla stock fell after elon musk failed to wow on investor day. what went wrong and where the company is headed now. vampire squid or cold fish? goldman sachs investor day crowd came away with more questions than answers. on "barron's roundtable," ben levisohn, carleton english and jack hough. the dow snapped her four week losing streak. did people get tired of selling or is there news i didn't

notice? jack hough: as jack likes to tell us, the stock market goes up 80% of the time. it goes up 80% of the time. this is one of those times the market had been falling. it hit the 200 day moving average and started down despite the fact we had the fed governor tell us we need rates to go higher and yields following, we had the two your hit 5%, the tenure over 4% for the first time since november. everything kept going up. tech stocks kept winning, the only sector that was positive in february and utilities fell 0.8%, the worst performer, they fall because dividends don't look as good when yields are rising. jack otter: the inverted yield curve is an old story. if rates keep on rising, can investors keep on smiling. what do you see?

jack hough: a strategist i keep following predicted we will get a six months rally, going 15% and end in april around 4300 and he put out a note friday that he believes that will happen. i think he's right. you don't have to like the stock market to think it's going to go up. in a secular bear market, it means we get groups of 20% in both directions happening all the time and take advantage of them. that is what we are in. he is worried what comes next, what comes in september but for now -- jack otter: cyclical bear. next two weeks, a lot coming up. the job numbers coming up. anything you see to end the banister rally? jack hough: a strong jobs report in january. it could knock things down

again but we are looking at 200,000 in that level. jack otter: there is a certain thing called investor day. it has a certain purpose, tesla did not get that message. jack hough: you don't have to have one. they did, during the ten years it went through 2,020 one, the stock went up 18,000%, you don't need investor day for stocks going up like that. the stock was wrecked last year. the purpose of investor day, you ensure technology, strategy didn't go well, stock fell 6%. investors won -- they want to hear about a lower cost carbon, $30,000 car, we get details on that. the production costs are down by half, that is a big deal. there were a lot of details on robots. elon musk said i think we might exceed a 1-to-1 ratio of robots to humans. that is how smart people say they will outnumber us at some

point but more questions than answers. one analyst, details were limited, short on specifics. it didn't go -- the last one, this was part of the new master plan 3. last time was in 2,016. they said we would have a future of robo taxes, i wonder of robots will to that, that is where we are. jack otter: tesla goes up 77%. %. is this the end of that rally? jack hough: stocks went up $220, 15% more. it is difficult to tell. there's one prognosticator that said stock price is too high and last october tesla is going to be worth more than apple and

saudi arabia put together multiplying seven times. elon musk is all over the place. jack otter: another investor day didn't go so well, goldman sachs. carleton: a little better than tesla, you have questions about strategy which there are parts of goldman's visit that are strong, investment banking in aspen wealth management, macroeconomic concerns hurting those businesses across the board. what is hurting goldman is the consumer business. those businesses don't belong in goldman sachs. david solomon said we are looking at strategic alternatives for those businesses. a loaded term on the street but in the same breath we want them to breakeven by 2025 bulge -- both options are not that great. you got to get a handle on what you want goldman sachs to be.

jack otter: they could sell it for more. a klain this barron headline, from vampire squid to media hurting. carleton: goldman was both admired and criticized for its ability to make money in any market and right now, they don't look like the big guy on wall street. it is probably going to morgan stanley. jack otter: they are an aspiring squid? carleton: aspiring to calamari. jack otter: goldman falls below book value. we should keep waiting. carleton: keep waiting, the next two quarters, make sure they get a handle on the consumer business. you will have plenty of chances. jack otter: stock valuations above historical averages despite recession fears. does the market know something we don't? the dean

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jack otter: interest rates rising and many analysts predict the recession. we are asking the dean of valuation to explain what is going on. thanks for coming on the show, great to have you back. let's start with the broader market. for years, justifying higher than average stock valuations, bond yields are so low. some say earnings may be going down, not up. 18 times earnings makes it. >> the start of this year, there were 2 forces drive this year, one was inflation and a pathway it takes. they are staying malignant and

what happens to the economy. whether we pay 18 times earnings are 15 times earnings or 12 times earnings largely determined by whether inflation stays at 5% drops 50%. jack otter: a company that is sort of in the middle is tesla, it plummeted nicely over the past few months. how do you go about valuing a company like hazlett? >> it is an honor bail company that has another component. got to give tesla credit, got to get everybody else to play the game that they play and in the process they are creating a new story for an automobile company, automated driving can double the price. i don't see the market for that. jack otter: you think the automation value is high.

>> i overshoot or under shoot. i am willing to purchase chesler at the right price. it is a special company, i don't think it's the greatest company to walk the face of the earth. some of its true believers think it is. evaluation of $400 billion. the way the company is priced, it is priced even higher. markets see something i don't and to get some clarity on what additional stuff is. jack otter: kathy would seems to think innovation will justify any valuation. how do you make sense of what she's buying? >> innovation is not a business. innovation is change. i have seen businesses be innovative in a terrible business march. pcs were the innovation of today. out of every ten pc companies, 8 went out of business. we often mistake innovation and

growth for profits and value and what i find lacking in kathy's story is she has a good sense for trends and the macro. grasp of the micro, and that is connecting the micro to the macro, and i'm willing to go along. and we have an 80% market share on all electric cars sold. you've got to work to establish 80% market share. they are all macro stories, making macro beds without doing the work of connecting the micro, the company, to the macro story. jack otter: it is helpful to break it down that way. talking about growth, the story for a dozen years but value is having its day. valuations of value stocks being more attractive now? >> there is a bigger story, so

much risk, not just slow interest rates but risk capital was easy and accessible. we over capitalized to these younger companies by providing endless sources of capital to young companies with terrible business models which we call them disruptors. that somehow became a magically good word, disruption is going to save us but disruption is a godsend. take good business models, endless amounts of capital, they are going to destroy the status quo, they won't replace it. look at rideshare. ridesharing has disrupted the business. taxicabs are dead as a business. ridesharing as a business hasn't figured out how to make money. it is not just growth, but growth with business models and that is dangerous. jack otter: how do you apply

your metrics to china where there are bunch of unknowns and political risks we don't have here? >> when i value a company i don't think of spreadsheets but a valuation story. i told you my valuation story with tesla and in china, any company you pick, big or small, but as a player in the room or that story, you don't control, which is the government having the government be such a large player as an investor. jack otter: thanks for bringing clarity to, located issues. american farms are going high-tech. why they are growing in value and (fisher investments) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how?

aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our clients' portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different.

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jack otter: you talk to a lot of wall street bigwigs and you spent some time in the american heartland. >> farmers looking to another good year of farm incomes. the department of agriculture says it is not like last year's record year but it is well above the 20 year average. these are good times on the farm. the farmland outperformed the s&p over the last three years. that has been good for farmer net worth and pension funds. bill gates, jeff baize oh's, real estate investment trusts and all the companies that sell products, these are good times on the farm. jack otter: great times for farmers that could translate into tough times for anyone at the grocery store but farming is cyclical so maybe this is payback for tough years.

ben: crop prices have come down. consumers should be getting some relief. when i talk to farmers they say everybody likes cheap food. there's a perception that farmers should have low incomes and they push back pretty hard. that's not the case, they work hard, take a lot of risk and they have a homerun here, after a 10 year slump, they deserve it for the risks they take and they also point out in the us, food costs are well below european averages as a percentage of disposable income. jack otter: we probably think of it as an old-school, old-fashioned kind of thing. it is technologically advanced. ben: people showed me how they

could see row by row on the corn and spot treat them. they were pulling out control modules they put in the planner, they could help make these planters smarter. one farmer talked about getting spacing more even on these seeds and getting the depth more uniform. some of them can read the organic content on the soil in the fly and amount of fertilizer, it saves farmers money on their inputs and get some better views. carleton: you talk autonomous driving at highways, it is a dream that it will apply to any of us in a meaningful way. in the farming world, this could be a reality, if not now then within a few years. is that what you are hearing? jack hough: my dashboard lights up and screams at me to look out and there is nothing going on, just going around the turn. it freaks me out. that is how far we are in cars. on farms it is a different story. legitimate on farms, you could have planters, sprayers, combine harvesters that could drive themselves.

you're out on the farm, you could push the innovation faster. ben: what did you learn about the way farming is done now that is really changing? jack hough: are you questioning my farm chops? are you testing me? ben: everything i know about farming i learned from gardening. jack hough: there is a big movement that if you are on our road and have two identical farms, a little bit of machine, it is later, that might be a no kill farm. the other one is darker, turning the soil. less of your soil blows away from the wind, better for your soil over the long-term. there's trade offs, might take longer to warm up in the spring, you might use more specialized machinery to punch those holes but it is a better

long-term investment. all kinds of trade-offs like that to rotate corn and soybeans because it takes nitrogen out of the soil and nitrogen puts nitrogen in. corn is more profitable. let me grow more corn. it could raise your fertilizer price, but you might keep that rotation. >> dear, and i really like this approach, and it got turned down. that is a company where if you have an old machine, hundreds of thousands of dollars in the new machine, and smarten it up. and a new control system so you can make an investment where a farmer can payback that investment in one to 2 years, that's a good solution. only 5% to 7% of farmers go for

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>> with keep the agricultural theme going, >> don't say i brought anything for you. >>, hormel stock, and the market is up, j.p. morgan downgraded it. spam, bacon bits and planters crops from craft, hines, a

couple years ago. it is a double whammy in them nuts business. consumers are trading down from mixed nuts and higher marginal items, and and it still has moderate debt levels, looking high relative to profits, and if you don't connect with consumers using an answer more orphic goon in a top hat and monocle i am out of ideas. ben: you have an actionable idea. carleton: i have four words for you, purple metallic cowboy boots. i love them. my colleague who likes the stock, not a fan. this is a company that is increasing its profitability,

doing well and they expect same-store sales growth in the low to mid single digits which translates to 20% earnings growth by 2024. ben: they make helicopters, making the fancy new helicopter for the army, they are buying that stock and benefit from what is going on between ukraine and russia. the stock has been going nowhere last few months but is coming up to resistance level, looks great here. jack otter: i think helicopters are kind of fun. thanks, guys. those are great ideas. through read more check out this week's addition of barron.com - [narrator] this program is a paid advertisement from us money reserve, a company not affiliated with the us government or the us mint. philip n. diehl is the president and spokesperson for the company. the markets for coins and bullion are unregulated.