and taylor morrison, you know, two ways to win with that one.ousing cycle which is looking very favorable. they also made a significant acquisition, william lyons, and it was a $2.5 billion acquisition. the market cap of taylor only about $3.2 billion, so big potential there. the entire sector trades at about ten times earning, not very expensive. and then the last thing, you know, toll and taylor have a little bit more financial leverage than peers. that's a good thing in an up market. so that's why we like those two. jack: do you think people think maybe the strength in the housing market might not last? what do you think the concern among investors? >> the group is very cyclical, right? it's very boom/bust. i i think that's played out over time, so in industries like that where the growth might be, you know, gdp or like the overall economy, you don't get great multiples. but it's always good to buy these sorts of stocks on the upswing. jack: okay, thanks, al. >>> and up next, round table members give their investment ideas for the coming week

will all the good news is priced in there we like taylor morrison. a smaller builder. growing.y did an accusation last year that increased exposure to the first time buyer today you have 70% exposure first time or first move up buyer. that's not reflected in the valuation today. and we think as that acquisition is digested, margins and growth will accelerate both on the mortgage insurance side, think about who the customers are. first time buyers. and so they're in a unique position to win to the demographic shift as well. the market is concerned about credit they're concerned about forebearance we think it will be manageable we've seen the numbers come down significantly month to month since may. and, you know, these companies are significantly, you know, well capitalized and can handle the default rates four to five times what they are. i think as we get through the next quarter or so, there will be some relief on the credit side and those are, i think, one of the best places to look at housing today. >> darrell, let's talk about areas where sellers in such control that there

we'll ask the ceo of home builder taylor morrison if the housing strength can continue into the fall. >>> as we head to break, here's a check on bonds ♪ ♪ i got it all from you ♪ i'm always pushing through ♪ i know we'll make it to the finish line ♪ ♪ i know you're waiting on the other side ♪ ♪ i'm like you on-demand glucose monitoring. because they're always on. another life-changing technology from abbott. so you don't wait for life. you live it. >>> the dow is up 200 points 0.7% taking it just flat for the week the s&p 500 suffering another record close and the nasdaq, too. both of those indices up around 0 ps 0.4% jot black tells usheerhe wth t market is still too expensive and two stock picks he likes at these levels is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance. i opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. i just discovered sofi, and i'm an investor with a

we spoke to sheryl palmer, taylor morrison ceo, for her take on the housing industry. >> supply is very limited today, and it is limited both on the resale in the new home market. isittle bit of the challenge making sure we have the demand. alix: with us now is ivan kaufman, arbor realty trust ceo. i wanted to start a little broader here because you get frequency reads like today, with the pmi and ism in the u.s., and yet you still have 17 million, 30 million people on unemployment. how do these two things play out in your world? ivan: we are mostly only multifamily side and single-family build to rent. with the extension of the c.a.r.e.s. act, people have enough money to pay rent. we are watching very closely. but as you are aware, people have been paying their rent on the multifamily side. despite this dislocation, it has been an extremely great performing asset. alix: which surprised everybody. i wonder, if we don't get $600 extension of the unemployment benefits, when do you think we see the rent deferrals trickle down to you? ivan: i think it could be fairly immediate. come the fal

>> reporter: the builders say they're not any more standard in homes at mi and taylor morrison. into a home depot, they are really not that expensive we're talking between $30 and $100. >> i didn't catch the whole thing you said are they already being used in things like gymnasiums and hotels and places -- public gathering places as well >> yeah. that's where they really started was in commercial real estate, hotels, gyms, colleges where they have their sports equipment and things like that now for the first time they are really moving into residential homes. where there wasn't much demand before the pandemic, now there definitely is. that's what's so interesting they are taking them from commercial real estate and marketing them in homes. builders were so fast to jump on these. within weeks they were putting them in new helms. >> 20 years ago smart home technology, now it's clean home technology that we're after. diana olick, great stuff thank you. >>> california posing a major threat to uber and lyft. could they really leave that state? we'll have that story next don't forget

we thought let's bring in sheryl palmer, the ceo of taylor morrison homes, a market cap of $3 billion have an analyst out there from auction.com basically saying that the housing market is feeding off a sugar high. you've got very low interest rates. you have extraordinarily low inventory and almost a panic where people want to get out of very hot and cramped cities and into more space where their kids can do online school, et cetera. what do you think? what's your reaction to this sugar high accusation? >> i don't think i would call it a sugar high, liz. first, thank you for having me today. i think to properly answer that, you almost have to look back pre-covid. when we came into 2020, what was the macro market looking like. we came into the year with a very very strong pulse and for a number of the reasons you mentioned, we had very low inventory. arguably you would say's the even lower today. we had low interest rates, much lower today. we are at historic lows. the demographics that were really feeding the activity are still very much in our favor. if you think about the 80 millio