i was in the audience when david einhorn unveiled his first bubble basket. it was in 2014, in april of that year we're talking about six and a half years ago and amazon was in his bubble basket, he was shorting the stock. let's look at what happened since. first of all, the whole xlk is up 250%, blowing the doors off any other sector in the market by far second, amazon is up about 850% and i know that he didn't remain shorted the whole time, thank god, but am sfwlonazonmazon's ee up 6,000%. earnings on a trailing 12-month basis have grown substantially since then everything that you're siaying generally speaking about the, quote, second tier technology companies he could have said six years ago and did. >> he does in this letter admit they were wrong in 2016 when they identified what they thought was the bubble you cite 2014. he does admit they were wrong and looks at the environment that it exists today and says not on is it a bubble, but it's an enormous tech bubble. i bring you the rise in stocks of some of the ones that we mentioned as to why perhaps he'

einhorn is building a basket of shorts.n the is second-tier tech companies, i should point out, david einhorn has not had a good run. from his main fund in september. manus: he is short netflix and he is short amazon. these are very big, brave trades. we have a viewer that was very -- they are. warning.a what is miller saying? thisl full of doom morning. i wish i had optimistic calls. saying lowerer equities from here on out. if there is a democrat sweep there is going to be more inflation, higher taxes, and that is -- that means were equities can go is going to be capped. he says we have borrowed so much i'm skeptical equities will give us any kind of return. he does say in the short term, should we get a vaccine, should there be stimulus, that will , but otherwise he says the employment rate could be 7% and four years out we could have inflation topping 4%. maybe that goes back to black rock 24 hours ago. great to see you. we will do it again tomorrow morning. dani burger on the markets and the notes this morning. eli lil

einhorn, we could be in for a prolonged correction, but nothing like we had in 2002. we just think that is very unlikely. you have to be very careful if you are over your skis in terms of tech exposure. the next two or three months could be really painful. jonathan: i think the point einhorn is making also, the 1990's shouldn't be the benchmark for whether we are in a bubble or not because it was so crazy. the question he is asking is whether or not we are moving in terms of sentiment from greed toward complacency. you are looking across fixed income right now. can you identify the shift from greed to complacency? what would that look like? troy: in terms of fixed income, you are starting to see prices adjust on worst probability of stimulus, and that is why you're seeing the curve flattening with dependent. hadst was a month where you very frothy behavior in markets. you had parabolic behavior not only in broader indices, but also some of the larger cap tech names in particular, many of them tied to the pandemic. that was arguably the peak for off -- the peak froth.

sophie, david einhorn warning of this tech bubble. what exactly is he saying? his latest letter to there is saying yes, an enormous bubble, pointing signs to mania in the ipo space, market concentration, lost evaluations, ramp-up in -- intech trading and participation of retail investors. he has added short bets of mostly second-tier companies and recent ipos trading at what he calls remarkable valuations. we did have einhorn calling a tech bubble in 2016, which he said was premature, but this time, he says this is the real mccoy. flipping the page, he thinks the bubble has already popped with september 2 marking the top for tech. a hypothesis he conceives may be disproven but he expects a shift in psychology from greed to complacency, from worry to panic. panic, thereg of is a distinct lack of the market ahead of the u.s. election. perhaps investors getting complacent. sophie: yes, for all the talk about this being a contentious u.s. vote, we have seen the jp morgan gauge of global volatility set by the biggest multi-drop since may. that is compared to the equ

week for big tech and this tech has been one of the best performers amid the pandemic investor david einhorn he's calling the current situation a huge tech bubble that actually popped on september 2nd 2020 in early september but is it really the top or sentiment just really shifting from greed to complacency with tech. well 1st of all let's just take a look at it from a technical perspective monday there was a huge range expansion in all of the indices and the nasdaq and give to kill are close underneath a key moving average which a lot of traders look at the 50 day moving average so to answer the question whether or not we topped what makes it even more interesting is that today the price action was inside the range of yesterday so that generally spells indecision which makes a lot of sense so as far as just looking at it from a technical perspective if we break down to monday's lows let's say on wednesday we will see follow through how much follow through remains to be seen now in terms of the whole tech sector right now considering netflix reported last week and was disappointed in terms

this goes back to einhorn's comment that tech is overdue and the bubble has already burst.hen you look at the price action in tech yesterday, did that concern you? seema: no. it was obviously surprising to see tech react that way. i would not consider it to be a bubble that burst. we still have significant space in the tech sector even before the latest news of the virus. the virus news increases the reason to have that confidence in tech. we will be working from home longer than we were originally anticipating just a few weeks ago. that reliance on text continues. -- tech continues. such high expectations for big tech. there was inevitablely a wobble. i have faith that there will be a recovery in big tech. it is probably the place to park through lot of this volatility going forward. manus: we will get another roll call tonight, aren't we, on some of those big tech names. alphabet, facebook, google. we have a lot of things we can worry about. when you see mark zuckerberg in front of congress yesterday in a very defensive mode in regards to the guardian of what we see, what

some like david einhorn suggest tech is in an enormous boubl and september 2nd was the top and it's already popped and we're witnessing the way they're trading and apple is in a bear market and some think it has further to go to the down side what do you think? >> with the benefit of hindsight they were expensive and now they're less expensive but i think we're still looking at zero interest rates for the foreseeable future no matter what happens in washington on november 3rd, j jerome powell will still be fed chair and interest rates will be near zero. i think the fed will come in and peg the bond yield so i think it's going to be pretty hard for anybody to really be out of the market for very long or least not jump at opportunities. i view this more as an opportunity than a reason to panic. i don't agree this is a bubble technology has a great future over the rest of the decade. >> kate moore, that's interesting what ed said, to look past everything and don't forget what got you here don't leave your dance partner, kate moore, on the sidelines it's the fed the music's not stopping any tim

einhorn says there is an enormous bubble in tech stocks.,ts to the ipo volumes and more speculative instruments and high valuations. in terms of where we are in the bubble, he says he thinks september 2 2020 was the top and the bubble has popped. he says if so, investor sentiment is in the process of shifting from greed to complacency. what is he going to do about this? he's going to add more shorts to his tech call. he is short big names like netflix and amazon, but he's adding more second-tier names. jonathan: it makes you wonder, if we go through a rough patch in this economy, a second dip in europe and elsewhere, whether vulnerabilities in the secondary market, is it in growth or more cyclical parts of the market? dani: when you look at the overvalued names, this is the easiest where the sentiment hit comes in. there is so much froth in tech names with a lot of the more retail robinhood type crowd chasing after these names, but the death of value has been talked about for a long time. there are investors waiting on the sideline to get a

today we have david einhorn talking about a tech bubble, he calls it enormous bubble.eel about that? if virus cases continue to rise, why should the playbook be different? isaac: it is a fair comment. tech has been reading this rally, and there is a reason for that, not least the business model has benefited more than others during the pandemic. the other is low interest rates naturally push up the valuation of stocks. that does not mean it is a bubble. we think valuations look reasonable, not too stretched. it also does not necessarily follow that tech will be the leader of a rally for the medium term or near term. what is really critical to look out for is that value premium which has disappeared, and value stocks and cyclical stocks in financials underperformed badly over the recent period. that could change. when value performs, when that valuation premium comes back, it tends to come back rapidly and powerfully, and the driving force behind that historically is a steepening of the yield curve. that has always happened after a recession and during the recovery. we

such a big impact on the private markets that you live in, i do want to read you a quote from david einhorndst of an enormous tech bubble, working hypothesis which may be disproven that september 2nd was the top of the bubble, and it is already popped what do you think of that? >> you know, the tech valuations have gotten to be quite high in the public markets that's why everyone is trying to do this now, the public markets, first time in a while, seem to be ahead of privates i tend to think this tech is like venture, some tech, it is vastly undervalued it is going to change industries and you see a lot of public companies about standard value and similar to other times, like venture, not like these things go down 80% it is a risky thing. you better know your companies well >> real quick though, what is overvalued in the public markets in your mind and what is undervalued? >> you know, there is a lot of stuff tied to e-commerce brands in that people think because this year is going so well, they're going to keep doing that forever. i would be very careful to really only own platforms there,