so much to talk about, chief investment officer at calsters with $219 billion under management, chris ailman, great to speak with you today, happy holidays. >> happy holidays, morgan, good to talk to you. >> i want to start with the fed later today. what do you expect to happen here and do you think we're going to get a hike, which seems to be priced into the market right now? >> yeah, we're definitely going to get a hike, we should get a hike the market has already priced it in but i think as you said many times and rick santelli said this morning, it's about the language after the hike. and we think they're going to be hike and then hold news break, i think they're going to be data dependent next year and see how consumers do here on the holidays and see how we go into the winter time that's the big key, hike and hold we said this morning at our trade desk it's a dovish hike. so if there's such a thing, it's going to be slow and mild after this but i think that's what the street is expecting, so i think i appreciate the time clock, but i think it's going to be a normal day we're going to h

coming up chris ailman and david rosen berg will join us. take a look.oft and jpm have the biggest gainer a big day for defense stocks mike, let's get your take on what happened tonight. >> you know, it was a pretty impressive comeback but a way to make a flat market seem like good news. it really was flat if you looked inside it two stocks down. not great. you can't really have too many rallies when the banks go down more than 1% as a group. the market, you know, this market brushes to the next test it seems like. we knew that the lows, 2,600 was out there and it wants to just kind of punch through and see if they find sellers down there they didn't. so i think it's another, you know, you take it as it could have been worse. you to have a few of these before you know this is now defined. >> is 2,600, does it get firmer with each attempt? >> i think the ball is now in the feds court to see where we are headed on the next move. the big story was facebook going out there and buying $9 billion we are making that announcement stocks up 25% over the past 52 w

are fairly valued in the marketplace, even at these levels >> chris, thank you for joining us chris ailmanhe enjoys watching melissa and the gang. as do all of us. that does it for sarah and i >> we'll see you tomorrow morning. you've got a fan >> thanks, guys. coming up next, the markets have gone wild, but don't worry, the traders here have you covered. we'll answer your questions. there's still time to tweet, so stay tuned we're drowning in information. where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley. >>> welcome back to cnbc's special coverage of this wild week from wall street. we want to answer any questions you might have about what's going on right now, so we want to take some tweets. vinnie asks, is chip stock nvidia a bad stock to own right now. mark, what do you say? >> no. we love it so we're bullish on gaming and nvidia is one of

coming up we'll talk to john waldron and what he says is behind today's selloff and talk to chris ailman, how he is reacting to this market volatility >> let's look at what's driving the elloff the next level to watch is 2,700. so we are about 18 points away from the crucial level the dow, the dow transports breaking through their 200 day moving averages. what we are seeing is basically an unwind is one way to look at today's price action and within transports ups and fed ex trading respective highs on their concern there with today's losses the nasdaq is back in correction territory. the s&p about 6.5 away it gives you where those averages stand there are some bright spots. you tillties on pace for more than a year. names like proctor and gamble are trading at all time highs. it gives you a sense of how investors are placing their bets right now. >> thank you >> bores comes back into fashion. today's selloff has the nasdaq back let's get up to the nasdaq for more on that >> we are seeing trading off of the lows a broad selloff here one thing that's interesting is that we have the small

stocks are still on pace for the worse december and the volatility continues chris ailman is joinings >> the volatile that we saw in october and november and i went onto say i thought that's going to be expected and that's typical when you have a bull market that's so old and so late in the economic stage. the last few days i think oare abnormal because our machines are picking up more than human beings >> joining us now, our jeff saw, our strategist at ramon james. we have to look at the short term and long-term is that how you see it >> that has been our views we. >> reporter: early in that assessment a week or so ago to be honest. we are looking at multiples on the s&p of 14.5 and trailing multiples a little higher. markets that are over sold can get more over sold we are pricing a bad scenario for 2019, relative to our more sort of bearish 2019 the credit market sort of lost their luster if you will and now we are seeing the corporate loan market start to take some knicks and the corporate bond market. high yield are closing in on 500. they'll pull back a touch the past oum couco

coming up we'll talk to john waldron and what he says is behind today's selloff and talk to chris ailman how he is reacting to this market volatility >> let's look at what's driving the

manager with us tonight and eminent onomist,hris ailman the chief investment officer with the teachers retirement system and the the choef economist at. r chris starting with you. it's turning out to be the worst december f the u.s. stock market since 1931. for you what is this market tell us about the economy, if anything? well,s steve liesman said it's not good at predicting recessions. but i think it's por tending the first half of '19 will be a slower growth economy than we had in the latter half of 2018. an i think the market's a little bit overdone in terms of being very nervous about what the federal reserve said a couple weeks ago. >> all right. joe, do you see slower growth in 2019 relative to what we have seen so far this year? >> i do. 2.2% growth next year as we move to the long-term trend of 1.8%. the financial volatility you have seen the past three months should be considered a proxy for slower cash fls linked to trade tensions around the world out of the white house. that's not going away. and in fact we think it's likely to be intenfied by mid-year. so the market i think is a little bit ahead of the anonomy. you should expect