milton berg, the founder and ceo of indian visors.ie hyman for a look at what is moving at the open. you perked up more when i said ani defranco. julie: not much of a rebound. the major averages are up on the strength of consumer earnings reports. a 44% surge in second-quarter profits. that is thanks in a large part to the f1 50 -- f-150 pickup. second-quarter profits are boosted are beating analysts estimates for ups. it is not only about weight, but it is about dimension to deliver packages. also wante to draw attention to comments about the u.s. economy. saying the gdp growth will be -- the ceo is saying that we are cautious about the u.s. economy. we're watching pfizer. only about 9/10 of 1%. the company raised its earnings forecast. they have a new drug to treat breast cancer. it has been doing quite well. in addition some of its legacy drugs like lipitor, accor, and pregnancy are selling better. matt: we'll continue to cover that throughout the morning. speaking of markets, the ecb has approved grace's market reopening according

stephanie: the one and only milton berg. rch firm -- there is no emotion, no trend following when it comes to milton. there is very little practical use for gold as a currency and lets you remove capital gain tax worldwide, what are you really using it for? this is the first time we have seen hedge funds have a negative buyout, an actual short bet against goals and they have been collecting since 2006. it could go as low as 800 or even lower. vonnie: what is giving them the conviction? brendan: this is an ancient academic argument here it is gold a commodity or just a currency? stephanie: if you look at it right now, it is basically fair value against housing, but if you look is stored way, it has traded below housing. he is not just negative on gold this man is 100% short equities. many investors, even if they think their pockets or things that are overvalued, across the board negative on equities? wow. tony: gold is a funny thing because unless you hit somebody over the head with it, if you go into this true armageddon, nob

matt: we just spoke with milton berg who said that, though he is obviously not sure, this looks moreike a market correction compared to 1929. at the time in the states we had a fed fighting against raising rates in the market until we had the crash. in china you have the opposite. the central bank is working with the market and trying to be more accommodative. peter: we are getting this back, and i think it will lead to the chinese government and not having some kind of stimulus. so far they've only thought it on the stock price front. sometime this fall we will see some kind of stimulus based on green energy or pollution cleanup. something to clean up some of their past mistakes. that will see growth to turn it around. whata: my question is, at point does chinese volatility, the asian market selloff, make janet yellen ring twice about raising rates? peter: in the past equity selloff in china meant lower rates in the u.s.. what is happening this time around is that china has been such a domestic buyer treasuries , you combine that with the oil companies that are net sellers, you see

yesterday, we were talking with milton berg who said he thinks you have to get out of stocks and go to concerned about the size in this market. are you concerned about the u.s. market the longest bull market in recent memory continuing here? mark: i am not concerned so much that you need to rush to crash. i agree with jerami grant who tweeted this out. i tweeted this out that the last time jerami grant predicted a negative return for the next seven years was 1999. so now you have that prince song stuck in your head. matt: i have the album on vinyl. mark: need to. -- me, too. i think he is predicting a long-term care. you want to go along here. you want to go short on overvalued company. i think hedge funds are going to outperform over the next three years. they really underperformed the last four or five years. i think it is just like 2000-2002. if you go back to april 2000 to april 2002, you have the slowdown. you have the burst of the tech bubble. you have the recession of one. i think 15, 16, 17 are going to look at that. matt: he set us he set a recession? mark: a slight recession.