brian wesbury, chief economist at first trust advisors. he says concerns about china's economic downturn and potential ehe effect on global economy are overdone. jonas max pharis is with me as well. he says china's is concerning. you disagree with our guest yesterday, jim rickards, he said the worst is yet to come. so everyone is on the same page, everyone can follow, here is my conversation with the economist and author of currency wars, which by the way the clip is going viral. >> this could be, as i call the -- i said in 2014 that the fed would not be able to raise rates anytime in 2015. wall street said mars, they said june, now they're saying september. now we're hearing december. forget it. 2016 or maybe 2017. we're in bad shape anyway. this is the nail in the coffin. the fed can't raise rates. deirdre: brian, why is jim rickards is wrong. >> jim forgot to tell you he said last year when the dollar was weak it was going to crash around create a depression in the united states. so if we're going to tout our records, let's go both ways

want to go to economist brian wesbury. you are a rose-colored glasses kind of guy, ice water in your veins, the glasses a little foggy? >> whenever i see the market doing things like this and there's no real fundamental reason for it. in other words, the federal reserve did not raise interest rates to 10% yesterday. they haven't raised interest rates yet. and what i assume is it's more emotion, and we haven't had a correction in a long time. that's what i think this is, and i still think the stock market is cheap. a year from now we'll look back and look at it as a buying opportunity. charles: i don't disagree with you, brian, you brought up the fed and the fact they haven't raised rates yet. once they do, we could see more turmoil or pressure to the downside? >> actually, i think this is it, charles. it's like we say sell the rumor, buy the fact. and it doesn't work out to the second, right? but just the fear. there are so many people that believe the only reason this stock market is up is because the fed did quantitative

there are optimists, brian wesbury and the network saying we could gain 15-20% by the end of the year. definitely two sides to this, where do you stand? >> i wouldn't be that bullish about the overall market. we're fairly valued at p-multiple at 15 times. margins on the s&p 500 are elevated and coming down. earnings growth on the s&p 500 is somewhat muted as well, and future forecasted returns that we have basically for 5% total return on an annual basis. we're advising investors to move up the quality spectrum. be pragmatic about asset allocation that you have, and to basically watch out because there's going to be a tremendous amount of volatility over the next several months. >> fairly valued at best is not as dramatic as we heard a moment ago, ridiculously overvalued. where do you sit on the expensive-nonexpensive overvaluation of the market? >> 16 times on a forward basis which is in line with the average. i think you'll see a lot of volatility here and the market has really struggled when it's gotten over 17 times, a fair value for the market is anywhere between 15-17 times unti

gary earlier on we had brian wesbury. he was a great guy. every time he speaks before audience, how many people have apple product. some kind of an apple product of 820 to 90% of the people raised their hand. with that kind of market share isn't it pop proof, the stock? >> look the problem is, what you just said, 80 to 90% are all owned. other thing for me is, i'm seeing nothing but big institutional selling right now. never get in front after freight train or they run you over. next support level is 105. i will reevaluate there. david: wow, 105. what about analysts. frankly i'm not that impressed by analysts most of the time. they usually follow the trend. is there any chance there may be downgrading of some apple stock? >> analysts are very good doing downgrade after something is down big. this is not really down big. it is a correction at this point in time. my biggest issue is one-fold. it is the most overloved and overowned stock in the history of time and if things do head south, and if they come out with a phone that doesn't sell so w