i don't hear that with jeff gundlach.u believe in a buoyant economy that can drive all assets higher? >> i think the economy is picking up but there is not a whole lot of optimism from that survey on the housing market. investors and homebuyers have been scarred financially and emotionally. i think it will take some time for us to return back to the homeowner nation we were. >> how do you position assets within a retirement plan with what you just said? you cannot do 60/40 anymore? i think that's the first step, to identify the strategic allocation. what has changed is we have to be more regular in our approach to equities and fixed income. >> it's a matter of owning which bonds. ownershipay the home trend rate is declining but what about the multifamily construction and what about the apartment reits that can benefit from the extra rental demand? when it comes to bonds, what do you own globally? i wrote a piece that said redrawing the boards is something we have to do. the vast majority of opportunities or outside the u.

what do you make of gundlach's comments? >> i completely agree. i don't think we'll challenge the july 2012 lows, basically 1.40. but i think there is a significant chance we could tackle the lows from may of last year, around 1.60, and then average that out with 2%, a big psychological area. and i believe that was joe that started out this segment saying warren buffett and him agree whether it's 2.5% or 3%, it won't change your strategy. that is completely, in my opinion, misrepresenting the issue and the message in the whisper of the credit market. that isn't what it's about. what it's about is, why? why are they here? well, i'll give you the biggest reason, in my opinion. beyond the fact that i think the long end is looking at a lot of new normal with the two-handle on growth, maybe eventually a three, but how many years past the crisis? look to spain, look to italy, look to the boone. the boone versus 10-year is the widest spread it's been in 9 1/2 years. listen, on a relative value trade, treasuries in terms of price, are cheap. and all that

i wouldn't look for much or 600, though. >> jeffrey gundlach, thank you. ceo and cio of double line. don't forget larry robbins and then bill ackman later. guys? >> looking forward to it very much. >>> bob nardelli, one of the most successful american executives of you are our time. general electric, home depot, chrysler among the companies. we have a lot on the agenda, including american companies leaving the u.s. to avoid paying taxes, solving gm's problems, and who should be leading america's retailers? bob nardelli is with es, he's in the house and will join us after a very quick break. lots to talk about. we're back in a moment on "power lunch." how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. cozy

i'll ask all of you to stay tuned for jeff gundlach. going, very outspoken to where the ten-year is heading. you'll hear from him. we also want to tell you about another big event next week. that of course is the skybridge alternatives conference, also known as s.a.l.t. it's a four-day event features some of the most powerful names in investing. anthony, real quick. >> we're very excited. this is valerie jarrett coming from the white house as well, and president frank underwood. >> that's all for us. again jeff gundlach in a matter of moments. "power lunch" starts right now. >>> halftime is over. "power lunch" anded second half of the trading days start right now. >> scott, thank you very much. we'll check in with you in just a minute a lot of volatility. the dow down triple digits. a lot of stocks at all-time highs do you beware of them?

today's investor, jeff gundlach, he talks about the no normal and why he is so down on housing still.hrysler and fiat says let's finish this damn thing. by the way, that is a direct quote. janet yellen testifies as david einhorn gives his report card on the fed chair.

we heard mike talk about brazil, jeffrey gundlach about the housing market. and laffont, talking about liberty global is his best trade idea. right now larry robbins is taking the stage. he will present his idea. we are not going to have this live here, but what you want to go is go to cnbc.com. we will carry the entirety of this speech from larry robbins and his trade ideas. so go to cnbc.com to catch this presentation in its entirety. we're, of course, looking for those stocks, those trade ideas. we'll bring you those as they become available. back over to you. >> thank you, dominic. >>> in the meantime, let's get back to our original debate. you have things that could potentially be capping gains in stocks like eye crane and the other. good economic data finally coming out of the u.s. economy. what is more important to your money? joining us is andre gassi, a global market strategist and cnbc contributor and chief global strat gist dan green which way will those scales tip? >> i think medium term and long term, what's happening in russia is not going to af

we know that jeffrey gundlach will stay there a while longer or go lower, we disagree with that. that's impacting the banks and financials -- >> do you disagree more with it will stay there for a while part, or it would go lower? i bet you disagree with the go lower part. >> i disagree with significantly lower. i don't think we're going to 2%. could we go to 2.5? yes. i think we'll float around here, 15, 20 basis points. for the financials, we need that to go back up. we need that steepening curve so the net margin increases and the other things going on with the banks combined with the improvement in net interest margin, financials will start to perform. >> i think it's also where you look for the banks. large cap banks, i agree with you, even though i own citi, i'm not so sure it will be a barn burner. but the regional banks, local banks, they are seeing loan growth. they are lessening demands of potential borrowers to some extent. it's still purely cash flow. and i do believe you'll see m&a in there. >> i know we have to run. you like high yield. a lot of people i hearsay bubb

and i'll tell you what, i'm warming up to jeffrey gundlach's short xb because of that. >> it's a perfect day to have a small cap equity strategist. we have lori with us, with credit suisse. welcome. >> thanks for having me. >> what do you make of the conversation? >> i think people are saying things we've been talking about. the valuations in this space are absolutely insane. we have fallen 9%, but you barely made a dent in the valuation. price to sell, 1.6 times to start the year. at our lows this month, we're at 1.54 times. i mean, that's barely a move. it feels so much worse than it's been. a lot of stocks have gotten crushed, but in aggregate, there's a ton of space. >> you're arguing there's a lot further to go for the russ snl. >> i could easily see the russell 2000, trading around 1,100, i could see it hitting 1,000 before it's done. >> pete, you can't tell me if that happens the overall stock market -- >> okay, the big question i've got, then. lori, as people start dumping some of the stocks, and that's the pressure on the small caps, where will they put it? in bonds, no percenta

yesterday, i had a conversation with someone you know, jeffrey gundlach.utious on housing. today inlen speaks washington on bond yields. >> we are expecting a more dovish janet yellen. >> i think you put it nicely. maybe she is more dovish. she has been back and forth recently. she has had a very subtle dialogue with investors about where the fed is going. i would look for some real ambiguity this morning. >> thank you so much. tom keene with "surveillance" in 24 minutes. >> the conversation surrounding alibaba. they have filed to go public in the united states. what am i buying if i buy this? >> you are buying access to a shell company that is in the cayman islands. obviously, most of it is market and usage is in china, with an internet population of over one billion people. they have about 500 million active users on various products. it is a combination of what we are used to when we look at amazon, ebay, and even google. it is all of those wrapped up into one. it even has the payments business which are rolled off. it is owned in small part by u.s. pla

jeff gundlach talking about the housing market and the era of homeownership in america may be comingoser turning a corner in which it is not as affordable for people to buy their first home. hb,recommends shorting the x the homebuilder's etf. we heard about buying liberty global. he thinks that vodafone will make a bid for the company. >> pretty market moving? >> pretty market moving. i was looking at the record of some of the people from last year. it has been a mixed record. one of the better performers, jonathan jacobson recommended a short of realty trust and the shares are down 20%. another said sure aaa and that stock is up 30%. you take the good with the bad here. much, julie very hyman. i want to go to market makers anchors stephanie ruhle. hey. horn playing extraordinaire, jim grant. i had to start with that. jim, you made news, you made waves on gazprom at a time when national resources in russia, many people are shying away. why are you in? >> it is the beginning, middle, and end -- good things happen to cheap stocks. by acclamation the world's worst company managed by the

i would transpose that with what jeffrey gundlach said earlier this week where he is concerned about housing. >> that was your interview with him that was outstanding. housing sales are for cash which tells you that it is investors who are able to pay cash and are buying houses and not the end-user. >> are you sizing up this? are you going to five bedrooms? >> four is plenty. >> i think you're always looking. >> i am always on the market. >> those are the front page stories. >> it is insane on the island of manhattan looking at real estate. our guest house this hour is kate morris, chief investment strategist at j.p. morgan. there is a green line going up for blue chip stocks and a red line going down for the momentum stock. have you ever seen that divergence in the market? >> it feels like a different environment we have had particularly over the last five years. we were looking at some of these surveys are missed additional investors and everyone was saying this is the hardest start of the year they can remember. intoone has gotten lulled a sense of complacency that the market will

jeff gundlach, ceo of doubleline capital railed against the housing bulls in a presentation packed withicators of single-family home sales often lie. they provided a long list of counter examples. young people in general, some still living with their parents, had been shocked and scarred by the housing collapse and were highly unlikely to enter the home buying market any time soon. and some have lost touch with reality because of unexpected reactions to economic news or because of overswraelous evaluations that were no connection to standard price modelling. and toured jones says he sometimes dreams of being a contestant on "dancing with the stars" because his job is so frustrating. the treasury market finished up. suggesting despite the apparent recover, they were looking for recession-proof bets. david eye horn, probably the stand-out presentation at the very end of the day. made a case that growth stocks are in a bubble by zeroing in on a three ta health. this is the i.t. skwro coating jonathan bush, ceo of amazon. thanks to overly optimistic assumption, eye horn, athena would fall 8