joining us now is alex of dryden -- alex dryden. do you buy the debt in oil?> it's gone up like an escalator and down like an elevator. we are thinking prices will get stability around $60. the stomach for another round of -- super low oil prices is limited here. they have already drained the sovereign wealth funds. i'm not sure they have a lot in the tank to go another round. in the meantime, $60 is $100, so what is the transmission mechanism and the correlation between lower oil prices and other asset classes? what is most moldable? -- vulnerable? >> the energy space. the energy names are probably in a better position to fight low oil. they have undergone the costco to -- cost-cutting, pulling back on spending mechanisms, a leaner, meaner fighting machine. they might be able to hold up in the space better than five years ago. david: those are pretty low correlations. a .5 correlation is nothing to write home about. the main effect is the overall headline inflation effects and the impact it could have. the central banks say there is not a lot of pressure to r

still with us is alex dryden of jpmorgan and mike regan. i want to talk about retailers. joe was talking about the university of michigan sentiment showing things look good and d people feel good. next week of the tail end of earnings season with home depot, norstrom, and others reporting retail sales numbers on thursday. how much weight will be put on these numbers given technology is no longer a driver of growth to the upside and stock price action to the upside. we have been seeing is that investors reward the companies deceit topline revenue growth. if you beat an earnings per share, you get a little bit of a reward, but the company to manage to grow their topline this light seems to be getting rewarded. that is the theme -- late seems to be getting rewarded. that is the theme. investors are getting that nervousness scraping in. it is not to be unexpected. scarlet: so you can't cut costs for wage growth. joe: rights. how much is this the fed's fault? [laughter] slow the want to economy down and maybe the economy is slowing down a little bit. >> i think with the sellof

alex dryden, and jeff klein, top strategist at charles schwab thanks for joining us. alex, i'll start with you. beginning of the year, you called for 3.25% on the ten year yield. have gotten close to it past couple of weeks. >> i think what we are seeing is that impact of high yields knocking onto the equity market. for the course of this economic cycle it has been dominated and supported by there is no alternative trade. everybody piling into equities because you couldn't find anything in bonds. now that the u.s. ten year is up, you're seeing investors going the first time hang on, i am getting a good return in bonds. >> jeff, a lot of thing for investors to watch you have trade tensions, peak earnings concerns, crude oil, bear market, political turmoil potentially in the u.s., what is the big thing you're focusing on right now? >> well, god, that's quite a laundry list the biggest one is slowing global growth. it is behind everything else we have already seen the peak in economic earnings growth earlier for this cycle remember in 2019, all major economies are expecte