dan niles from alpha one capital joins us on the phone.e've been through some challenging times together, you and this network, as we try to address global issues. this is one there's not an easy edge what does the playbook look like from your standpoint right now >> i think the way i look at this is simple what's your risk/reward at any point in time. there are certain things we know for certain. one, we know for certain the markets are at record value. my favorite measure is i take the valuation of the entire stock market and i divide it by gdp. if you look at that, you're about 1.5 times, exactly where the market was in the late 90s when you had the tech bubble the second thing you know is etf is coming down and global growth is slowing put those things together and for me, that's why we tweeted out on monday, february 10th, that we were starting to short apple and their suppliers and on february 17th we put out that we had those shorts at 50% of our o'al assets. with regard valuations and earnings coming down, there's no -- that's very

joining me right now is a founding pound or dan niles who has been spot on and apple all these years.d to see you. thanks much for joining us for it i want to get your take on apple and i know you have been investing around apple. i think it's really important point that our viewers are gonna want to see. what is your reaction to the quarter? you look at the surface on the numbers and they put up 9% revenue growth. they put up 19% earning growth year-over-year. so on the surface you say wow that's fantastic. but when you look a little deeper, the problem i have with apple is really the same problem i have with the market at this level. you look at the overall stock market the s&p was up 29% but earnings were up 1%. if you look at capital the stock was up 86% last year but the earnings barely grew. so when you look at the price to earnings ratio on apple it's trading at about 24 times the next 12 months earnings. usually it trades at a discount of the s&p. the s&p is trading at 19 times. it's not necessarily a bad thing but you're saying their services business which apple has been foc

dan niles on apple who has been on the company in the ups and the downs throughout the several years,apple and the virus number one headline today, they warned they are going to take a hit, slowing demand in china and supply chain worries, the stock premarket down 7 bucks, 2 and a half percent. another virus worry, it is more deadly than first reported. apple took off about 80 off the dow. nasdaq taking a hit, that's at the opening bell. next politics, do we have news for you, item 1,

dan niles on apple who has been on the company in the ups and the downs throughout the several years, that will do it for us, have a great day, everybody, varney & company is next, stuart varney. stuart: apple and the virus number one headline today, they warned they are going to take a hit, slowing demand in china and supply chain worries, the stock premarket down 7 bucks, 2 and a half percent. another virus worry, it is more deadly than first reported. apple took off about 80 off the dow. nasdaq taking a hit, that's at the opening bell. next politics, do we have news for you, item 1, bloomberg will be in tomorrow's debate, 19% in poll, he's on the vegas stage, he bought his way in over $400 million of campaign spending so far, item two that poll pulls bernie sanders way out front, 31%, he's now the clear leader. item 3, more taper -- tape emerges and black and latino males don't know how to behave in the workplace, ouch, what a day, what a week to come, 3 trump rallies, by the way. varney & company is about to begin ♪ ♪ >> enormous cohort of black and latino males age let's says 6 t