joining me now is malcolm ethridge. malcolm, good morning.see you. >> frank, great to see you. >> malcolm, how do you see today shaping up? what is your "wex" word of the day? >> my word is opportunity. i understand in hindsight we can look at the decline that started last week, friday nointo this monday, created a buying opportunity for investors willing to put money to work. for those who didn't, i don't think all is lost. we will have more similar opportunities between now and the first rate cut to capitalize again. >> you are seeing opportunity. i want to ask where you see opportunity. we chat about the markets here and there. you like mega-cap tech and the magnificent seven, without nvidia. it is not just because of the declines, but how much cash they're holding. explain that thesis to me. >> if you think of what it takes to weather a storm in the recession is having the ability to continue to pay your workers without laying anybodiy off and continuing operations, but it is able to invest in growth. if you look at the companies with mos

joe teaaranova, malcolm ethridg and mark, i'm going to hit the market first. bear with me for a second. we're in the midst, joe, of what is a pretty sizeable selloff. dramatic reversal from it seems how we felt not 24 hours ago. >> a very dramatic reversal that was led by the russell 2000 index. i was there, watching it, trading it. i saw the reversal after chairman powell spoke. the mean reversion trade for small caps relative to midcaps and large caps and megacaps, it's over. it's over. the remainder of the year. i've been skeptical about the ability for small caps to outperform their equity cap size brother and sister for the remainder of the year. everyone is going to come on the network in the next couple of days and say, this is normal, this is ordinary, everything is fine. i'm going to echo this. what the viewers have to understand, this is the month of august. the month of august and the month of september are the two worst months in a calendar year over the last 15 years. the real message is elevated volatility is going to be present during these two

we have lindsey bell and malcolm ethridge with us. great to have you both here., you're in studio. let's start with you. >> good morning. >> you are hear to talk about walmart. walmart has benefitted from the trade down. wealthy people going there as well as grocery. is that a trend you see continuing? a compelling reason to buy the stock? >> well, i do think walmart has a compelling story right now. what we did learn from the earnings report is they are seeing a trade down not only from the upper income consumer, but lower and middle income consumer. they didn't mention them in the first quarter earnings report, but they did this time. across income classes, everybody is going to walmart to shop. i think grocery prices have a lot to do with it from my own personal experience. is it a better stock than target? it has run more. it priced 29 times versus 23 times historical average. when i look at target, it is up 11%, mostly from yesterday and from the valuation, it is trading 16 times versus 18 times. >> it is like you are reading my mind. you can see my notes. m