air force and the national research council of italy. initial tickets were these fights were sold a decade ago for $200,000. now they're going for $450,000. 800 tickets have been sold so far with excitement building the company stock is soaring and will follow all of this with "mornings with maria" next week six -9 am eastern, join us every weekday on fox business with "mornings with maria". i'll see you on the fox news channel 10:00 a.m. eastern live on the fox news channel, have exquisite interviews with house foreign affairs committee chairman michael mccaul, congressman byron donalds and nancy mace and peter schweizer. we will get into a sunday live on fox news channel. that will do it for us on fox business. thank you for joining me i hope you have a great rest of the weekend and i'll see you next time. >> "barron's roundtable" spoke on transponder by global xv tx ♪

♪ >> welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. i'm jack otter. the bulls are in control of this market but how long will it last? top equity strategist gives us her take. and where investors should be putting their money. then how the recent loss of the titanic sub could hurt companies looking to capitalize on extreme tourism. hot off the press barron's out with top ceos and you may be surprised to is not on it, who made the cut and how they changed the world with their companies. we begin with three things investors ought to be think about right now. the stocks slipping as investors come to terms with the prospect of more interest rate hikes with the federal reserve, virgin galactic stocks soared and sputtered as they launch the inaugural commercial

spaceflight. in the end of the student loan forbearance will be bad news for some graduates wallets but could be good news for the economy. on the "barron's roundtable", ben levisohn, carleton english in. we knew what it these days, the winning streak had to come to an end and it did come to an end this week. >> the s&p 5 500 hit a five week and the nasdaq had eight weeks gone. fantastic winning streaks through the market needed to take a break at this point. they have come pretty far but they always need an excuse to do that in this week central banks around the world. the federal reserve we heard powell talk before congress and he made comments about more rate hike coming and oversee central banks raising interest rates in england won a full half point. that was enough to knocked the markets down. let's jump to something that we don't talk about too often. bitcoin had a big surge what was behind that. >> this is a risk week and

bitcoin did great because blackrock said it aims to open a bitcoin etf. people are getting behind bitcoin as a mainstream financial asset. and bitcoin why not/. a 50 week high is the highest since last june. they didn't come near to that. it'll be interesting to watch if they keep outperforming against the other crypto's. >> a lot of companies had to create is not allowed by regulators. i think the feeling if larry thinks as he is connected to washington. what are you working for in the coming week. >> is slow next week but a couple of the earnings coming out between earning seasons between nike and that'll give a read on what's happening in china and the u.s. consumer. we get a get micron technology's, not one of the superhot chip stocks and omega memory and will see how that's holding up as well.

>> not too slow of a beaker getting news from the banking sector like goldman sachs and j.p. morgan and we get bank stress test coming next week on wednesday and a sense of how the banking sector and the capital returns at the banking sector can do as well. >> the banks running on treadmills. >> were getting it the fed's favorite inflation measure or so they say the pce price index supposed to rise 0.1% that would be dumb with 0.4% on a month over month basis if it comes into hot maybe we get the rate heights and if it comes in cool maybe the pause can last a little bit longer. a couple weeks ago we were talking about how airbus was outpacing boeing and we sell real proof this last week in the paris air show in the open their wallets and gain more share. >> absolutely paris air show for the companies just wrapped up. it was a record show, things are

pretty good for the entire commercial airspace industry but 1100 jets ordered in paris that is the best show ever with a 2018 mark of a thousand planes in farnborough. airbus took about 800, but we took in 300 so with big win for airbus, one show does not make the overall picture complete. however, there is no denying the a320 one family of jets is selling better than the max family of jets. investors know that. it's something that boeing will be having to deal with and thinking about for years and years to come. >> i would ask about virgin galactic with commercial spaceflight happening this week, that was pretty cool and the sad news out of the north atlantic as a whole extreme tourism thing and i would like to see a damper on it.

>> it's unspeakably tragic situation. i do think when investors are thinking about some of the new business opportunities like virgin galactic you need to think about what safety can mean for demand. virgin galactic and do 10 million in sales this year they're knocking to generate free cash flow wall street does not project free cashel until 5 - 700 a year. the question is is that going to happen with some of the things that are going on. >> and of the positive student loan paths, bad for people paying them, potentially good for inflation. >> you can argue whether it was right or wrong had a stimulus effect which add more demand push inflation up. i had 26 million people whose lungs are going to be out of forbearance. roughly $300 a month at their spending on loans that's coming out of things like retail spending, shopping, travel.

that could bring inflation down but this is happening when households are feeling more squeezed. even before the extra 300 that the households will be paying by credit card delinquency starting to go up. has the effects of the rate hikes are gradually being felt through the economy and begin to continue to use exceed that play out. >> it could be a long-term th thing. my next guest making a bull case for stocks or certain stocks and letting us in on her top marketplace, bank of america savita subramanian joins us. ♪

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am i? ya! the queen sleep number 360 c2 smart bed is now only $899. plus, 48-month financing on all smart beds. shop now only at sleep number we went stocks down for the week by writing high with the nasdaq up 30% this year so far. u.s. equity and quantitative strategy of bank of america securities savita subramanian. so great to see you again. >> great to be here.

jack: a lot of discussion about how very few tech stocks have been behind most of the markets gain but not as much of the implication for evaluation you been pointing out that the difference between the cheapest and the most expensive stocks is unusually high right now. what do investors do about that? >> it is an interesting environment with the very narrow market and i think it's been frustrating for investors that haven't been in the seven stocks that deliver the strongest gains. what's interesting if you look within sectors and across the broader market the cheap stuff is very cheap and expensive stuff is very expensive. what we found in the past when you reach the levels of dispersion across evaluation. it's actually been a great signal that value investing is likely to generate some of the strongest returns. and we seen this a few times in

the past and we saw coming out of the tech bubble in the financial crisis. the idea there is a lot of returns to be made with the most inexpensive but high quality companies and selling the expansive overblown evaluation stories and to figure out which cheap stocks aren't traps and likely to recover than continue to get cheaper. we have our ideas and i would love to share them with you. jack: please do. you're saying don't just buy the index don't buy the cheapest stocks on the russell? >> exactly i think there's something really interesting going on with the index itself and s&p 500 is trading at a multiple unpriced earning is trading 20 times on earnings. if you take out the biggest

stocks in the nifty 50 or the biggest 50 stocks, the rest of the index is trading at a relatively low 15 times earnings. our view, if you stocks that are really driving the valuation up. right now is a much better time to look at older cyclical companies that can actually benefit from a lot of the text that we are hearing about. i have to say about i think a.i. is obviously a big driver of t tac. i think a.i. is more about old economy companies becoming more efficient they on technology company. i feel really bullish right now on the idea that we are finally in for productivity gains in the market which is something we have not seen for a very long time. >> that's another interesting chart you published recently showing how bad we've been on productivity since so five or so. what does that mean for inflation? if we bust out of this is a

positive? he pointed out wage inflation can be good for the overall economy. >> it is interesting. you basically saw a stall and productivity and efficiency in 2010 and that was with 0 interest rate policy started. companies have easy ways to make money they did not have to worry about getting efficient because it was relatively inexpensive and they can do buybacks in that was an easy way to manufacture financially engineered returns, a lot of cost-cutting, 0 cost of financing. it was easy money for corporate. but what we found when companies are actually focused on productivity the multiple there paying for the stocks is higher. investors don't like to see easy cost earnings growth, they like to see efficiency driven permanent improvements in the business model. for the economy overall, our

view, this is the next argument when margins can be the main relatively healthy and that's one thing were worried about coming into the hyper inflationary . . . the idea nobody secured at low cost and low interest rates, how are they going to navigate an environment of higher cost and what they've done they have been doing all the right things. what were seen from corporate america shows companies are adapting to higher cost. we saw this with tech companies and they did a round of layoffs or to in their removing a lot of the cost structure and really focusing on how to get efficiency with the labor that they have. i think that is potentially the big positive going forward. >> we have to run out one number answer do you think we will get to 2% inflation by the end of 2023, 24 as a result. >> no i think the structural reasons for why inflation remains higher i would say three

or four is a likelier outcome. jack: thank you very much for coming on the show, we appreciate it. thank you. jack: behrens is out with its list of ceos who made the cut and to dinner. we will tell you why next. i'm saving with liberty mutual, mom. they customize your car insurance so you only pay for what you need. you could save $700 dollars just by switching. ooooh, let me put a reminder on my phone. on the top of the pile! oh. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ (vo) this is sadie, she's on verizon. and she's got the new myplan, so she gets exactly what she wants and only pays for what she needs. she picks her perks and saves on every one. make your move to myplan. act now and get it for $25 when you bring your phones. it's your verizon.

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jack: the best in the business, i would the annual list of top ceos. who stood out as leaders in the past year end who are best prepared for the challenges ahead. more precarious than ever to take over the corner office. andy editor at large, you are a leader to help pull this together. tell us how the list shaped up. >> 25 ceos that make the cut could we use objective measures like total return to shareholders, growth of the company and also subjective measures as well. how well they navigated the year

in terms of responding to market conditions and inflation and a.i. and the revolution going on. we had some evergreen names like warren buffett and jamie dimon and tim cook. other tech names, new names like marvin ellison from lows and tricia griffith from progressive. >> one big name in the headlines that does not make the list. elon musk, what's up with that. >> elon is polarizing. and i think that is something that people hold against him that you love him or hate him. it's fair to say that this is not necessarily the best year for tesla. a great company and remarkable inventor at the very least. but he has some downsides. >> he has some great things that tesla cannot deny but i cannot put ceo on this list that buys another company and sells tesla stock to go ahead and fund it.

and does not worry about his shareholders, that's what your jobs is a ceo. >> the stock got hit very hard in the last month it added more than toyota and the u.s. automakers put together but not with twitter. on the other hand al some ceos that were dealt a bad hand but seem to make the best of it. >> in terms of qualitative and quantitative factors. from uber, if you look at that stock over his entire tenure, it has done nothing. given the pandemic people don't want to get in cars, given how the stock has performed versus his competition lift. the environment when he took over, he has done an excellent job. the other one that was dealt a difficult hand larry culp. of general electric he offered very fast, i don't think it's unreasonable to say been chrisley was on the table of the balance sheet was going into

covid. i think both of those guys deserve credit even though sometimes depending on how you measure it the stocks don't necessarily lineup with the pics. >> to fascinating companies, and old legacy and brand-new. looking at the bank some financial companies made and tell us who did. >> you have to look at morgan stanley, james foreman he announced he tends to retire by may of next year. this is a guy going out on top. basically reinvigorated the bank half of the revenue comes from the wealth management business. other ceo, no surprises, america ceo jamie dimon has been on and off the list. if you look at j.p. morgan during his tenure and especially during the banking turmoil that we saw this past spring, j.p. morgan first republic and a leader in reinvigorating in the banking system in the u.s. at large. >> is so important to the sector and almost the economy.

who takes over for jamie as the guy the fed calls or the guy the government calls when crisis arrives. he seems to be the factor leader of the un. >> i don't know if you have somebody with lack of a better word the charisma of biden but in the banking sector reluctantly brian moynahan. bank of america did step up on the onset of the pandemic when jamie dimon was recovering from a medical emergency. he is really able to work with congress and work with other bank leaders to play that role. >> and does not drop the f bomb quite as often. >> you do not know that. >> in his own way a strong leader. >> one interesting thing about the report. some ceos have lasted a really long time for the tenure sure it seems to beginning shorter. last patient. >> the ceo landscape is really bifurcated.

on the short end ceos are washing out earlier and earlier and on the long and the forever ceos. the people to last a long time. if you are bored forget about turning over every seven or ten years this person working as jamie dimon, let's keep them forever. obviously what is making it so difficult are things like shareholder activist like pe, like radical transparency on social media and of course the social issues. very, very difficult to be a ceo right now. >> almost out of time obviously anybody who invested in j.p. morgan when jamie dimon took over or berkshire hathaway, who are the next forever ceos? who's doctor you want to buy now? >> we look at people who are executing the short end of the tenure we hope. we have to look freedman from the nasdaq and five years, they

very beaten the market. and they seem to be in charge. >> we gotta read the entire list. the stock picks coming up, carlton on who will win a cagepg match, elon musk or mark zuckerberg. stay rightwi there. so you can get back to your monster to-do list. really? get a quote at progressivecommercial.com. (psst psst) ahhhh... with flonase, allergies don't have to be scary. spray flonase sensimist daily for non-drowsy, long lasting relief in a scent-free, gentle mist. (psst psst) flonase. all good. i got into debt in college and, no matter how much i paid, it followed me... everywhere. so i consolidated it into a low-rate personal loan from sofi. ditch credit card fees and high interest. borrow up to $100k. sofi. get your money right.

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jack: please say yes, is there any chance that mark zuckerberg and elon musk will face-off in the octagon. >> i am with you i wanted to happen but if you look at the vegas odds not a chance is what they're saying. just the backup we have meta planning to launch a twitter competitor that led elon musk to challenge mark zuckerberg to a fight on instagram remark zuckerberg said send me the location. it evolved from there.

yet elon musk threatening to use the move that he calls the wall risk which is basically getting on top of his opponent, lying on top of him and doing nothing. i mentioned the vegas odds don't see despite happening. but if it did it's probably going to mark zuckerberg. no one is too impressed with elon musk laying on top and doing nothing. i can't imagine anybody who would be you have to figure mark zuckerberg trained in jiu-jitsu and about ten years younger than elon musk. elon musk might have the height and weight advantage. i'm putting my money on mark zuckerberg if this happens. i wish it does. jack: i put my money on mark zuckerberg as well to the criticism of meta facebook copy other people's best ideas is not without justification. >> absolutely, they copy or acquire, they bought instagram and they copied snapchat stories, they're going into tech

tiktok as well. there are reasons for elon musk to be upset. >> let's go into action ideas, neither tesla nor meta is on the list. >> this week we talk about industrial stocks in the trader column. one of my favorites is always eaten at benefits from the government spending, electrification, ev's, 20 times a year earnings. >> fortune brands innovation they make security products for houses they are on a list of stocks of goldman sachs with companies of low evaluation and strong balance sheet do for ketchup you look at the chart and it looks like it's due for ketchup treat is pretty interesting they make the master locks. >> thank you so much, to read more check out this week's edition of barron's.com don't forget to follow us on twitter at barron's online, that is all for us. we will see you on "barron's roundtable". -♪ whatcha gonna do -get out, now! -get out of the car, get out of the car.