can we expect more of the same in 2019 in joining us tonight, paul meeks, the lead portfolio manager for the wire fund. paul good to see you thanks for joining us tonight. >> good evening, bill. >> fst of all, why do you think we have seen such weakness for technology lately? and do you see it happening more in the new year again? >> so i'll do the second part first. >> okay. >> i think technology stocks may trough. i don't know exactly when, bill. but somewhere in the beginning of 2019. i would expect onc get to a year from now, december 27t sof 2019, th will be having a pretty solid year. and tech if it's not the top sector among the 11 performers tfl be close do it. so i am expecting maybe it gets a little bit worse before it gets better. but i'm expecting some better tidings for tech as we lookut in next year with particularly the second half. >> but are we looking at a slowdown in demand. that seems to be the problem foa apple,ot of the chip makers out there, that there is a slowdown overall in demand for those products. that what you see here? >> there clearly is aner ventory si

weighing in now jason drahoe and paul meeks good to see you both jason, from a broader asset allocation, it was all tech going into the summer valuation premiums have come down but is it a place where you feel like it merits a big bet right now? >> if you just look at tech versus the yoeoverall market, it got up to 15% and now it's at 5% you can say tech is cheap relative to the market and increasing recession is almost a base case in tech even the secular growth stories aren't immune in that scenario so right now for tech to outperform, the cycle is not ending and you need better data on that front. right now it's going to take a couple of months before investors get comfortable. valuation alone is not a reason for people to buy. >> and just to be clear, do you think right now the market is priced as if recession is a base case because it adds 20% in three month but we'd have to live through a lot of bad. >> say it's a 30% or 40% chance that in 12 months you get a recession. most economic models are saying the probability of recession is like 15% in the next year so there's this discon

between 2015 and 2018 >> joining us to discuss more on what it could mean for twitter and facebook is paul meeksold your social media stocks is this the sort of reason why or is it just noise? >> one we do think social media use has peaked secondly, these were by the russians it's clear there's liability here they clearly were blind and i think as they get deerp and deeper we'll see pretty ugly think things come out of facebook and instagram as well as twitter it will only get worse and worse. it will keep getting worse >> you think some of this is overblown and take opportunities to see where it goes >> you see it is particularly good buys now. it is twitter, facebook and google i think google with a tight of a thousand per share it is a combination of relative value and growth and particularly long-term if they do score like vehicles in the meantime twitter i haven't been a fan of. it is talking about a peaking permanently in usage >> i'm worried about the added expenses facebook and others will have to spend to essentially be more on top of these prooifr si issues. >> this did not exist as a

ron, thank you, paul meeks, thanks to you as well. >> thank you. >>> shares of johnson & johnson are their worst day since october, 2008, following a damaging reporters report. the reporter who broke that story speaking with us moments ago. leslie picker joins us with the latest at this hour. leslie >> shares of j&j continuing their descent, down by more than 9% such pressure on the stock comes on the heels of a blockbuster investigation by reuters the report showing the company knew for decades that its raw talc and finished powders sometimes tested positive for small amounts of asbestos. reuters says it obtained confidential documents to facilitate its reporting and those documents reveal j&j failed to alert regulators or the public about the potential asbestos risks and reuters says j&j sought to influence the fda's plans to limit asbestos in their products as well as scientific research on talc. j&j issued a long statement saying in part that the article is, quote, one sided, false and inflammatory and that it's an absurd conspiracy theory j&j says it will continue to defend the

meeks. talking about tech at large. paulis story is an outlier, hard for analysts to predict this ramp up in escalation in trade tensions what does it mean for tech companies, for executives trying to do business in china, and obviously today, share prices. >> i think this is unprecedented and incredibly stupid. i'm embarrassed about trade relations when we pull something like this. of course, in technology, the more cyclical industries in the tech sector, semiconductor and capital equipment, even though their stocks have come down to attractive valuations, i still can't step in when this stuff is going on in the background. >> until what, until what happens, paul? >> i would like to see some of the names fall even further to valuations, whether they be priced to book, price to sales, to earnings akin to what we got in the depths of the financial crisis for some stocks, it is a way to go of course on the geopolitical pro front, we need to see some stabilization. some sort of move by both sides to come to some sort of a peace