paul: i think we have gone the ahead of ourselves if you look at the p.e., it's over 17. average five years is 15. so i think it would be healthy to have a pullback and a rest. but the point that needs to be made for investors is that the under lying fundamentals of this economy are quite good. you look at earnings, they are quite good, and projected earnings are very, very good. so i think overall this year will be an upward trend in the stock market. but it wouldn't be a bad thing i think to have a pullback and get back, revert to mean. dagen: you don't think the stocks -- >> definitely higher than the long-term average. but if you look at the chart you are either way below it or way above it. there is less risk in large cap u.s. stocks now. we have the threenest balance sheets we have ever had. we are not in that situation now. i would love a correction to be able to buy cheaper but i don't know if we'll get it. gary: paul, when it's actually happening, investors panic and get worried. we get an 8% pullback, what do you want to tell the viewers they should be thinking a

. >> reporter: the p.e. turnpike connector bring -- pennsylvania turnpike bridge is reopened. it will alleviate the congestion on i-95 and route 1. live on the schuylkill expressway, approaching bell month completely dry. as david said, temperatures above freezing, no problems on the roads just yet. the snow is starting to creep boot lehigh valley. we have a little while before it hits the i-95 corridor. the big picture no major issues. blue route, schuylkill expressway, i-95 moving just fine. we go over to 202 at baltimore pike, 202 is looking good, stick to that, instead of baltimore pike southbound you see the cones set up, baltimore pike is shut down southbound. you want to would you want for that as you head out, between passionville road and briton bridge road. >> we sent mobile 6 out looking for snow, it found some. we're at the hampton inn. i don't know if there are any rooms available right now. we've been travel running through the poconos, along 2095 bit further north in the lehigh valley. definitely snow falling right there. as car mentioned, it's starting to reach

it doesn't have a gym so the p.e. teacher applied for a fit america go grant. underarmour is supplying fitness equipment. >>> there are inspiring people all over the place and we found one recently in our area. >> melissa mollet talked with teacher you just have to meet. >> you have to design a purpose to your life after retirement. you need to retire to something, not just from. >> that is ms. jaffe who will be 95 in may. she retired years ago but she couldn't stay away. at a time in her life when most of her friends are enjo relaxing afternoon she wakes up at 5:00 a.m. she exercises and makes her way into the classroom. tonight we'll introduce you to ms. jaffe and tell you why she says she just has to be there every day. we salute you, ms. jaffe. >>> well, after a year long project one of the world's most holy places have been restored. >> the holy site is inside the church of the holy accechurch i jerusalem. >> this is a very important finding because it seems that the tomb of christ as embrac embraced -- >> a bench found is believed to have been where jesus'

. >> market prices in earnings, what is the p.e. ratio of the -- >> 22. >> 15. and what is it trading at now? 29. neil: whoa, whoa, this is an important distinction -- [inaudible conversations] neil: you're saying that the market is trading at 29 -- >> times earnings. >> i thoughting it was 22. neil: identify not herald 29, i think you made that up. >> the average is 15. it's way overvalued -- neil: but there's a difference between forward and -- >> i know, but if you -- neil: we had some knucklehead here with a different suit -- >> right. neil: -- who said, yeah, it's a little rich but not outlandishly rich. >> that's what they said in 2007. neil: that's where i wanted to pick up. i do hear what you're saying. i'm joking with you, but what do you make of that, that if this market were priced for this thing getting done, let'go back to the health care thing and that's delayed a little bit. how does the market deal with that? what are you hearing from folks if it's delayed? and, by the way, you know, handling this health care thing right and not rushing a bad sol

the u.s. in terms of p.e. ratios lower than they are here. also looking at dividend yields, they are 50% higher than they are here. the reason is because people are worried. if the euro ends up crashing, what's going to happen is you have a flight to safety to the u.s. dollar which will slow our exports and all economics are lynched together. if they fall, they will drag us with them. maria: even though valuations are so much better in europe thanhey are in the u.s., there is stillot an appeti certainly stop your part to go in europe right now because it's a fundamental backdrop. bob: these markets are cheap and cheap markets can have a big rally. the problem is the secular decline. undercapitalized banking system in europe. one currency, one monetary policy but a different fiscal policy for every country. most countries are having declining population, and they are falling the way of japan. maria: are you not worried this is going to impact the u.s.? bob: i think it already has. one of the reasons is our exports it's hard to sell to areas of

recently, ian mentioned the low p.e. that's important. more important is the high dividend yields.ng 4% in dividends, and that reflects corporate governance in russia where companies just westernized to a degree that i wouldn't have believed ten years ago, even five years ago. i think in the longer term, you know, it's becoming a more normalized investing environment, and so i think that's another driver that beyond the oil price and looking out, i think will attract more people, an i don't think that's fully priced in yet. i think people still think of russia the way it used to be, but especially in the privately owned, not the state owned companies, i don't think that's priced in yet, and it's -- i think when it is, the market will command a higher multiple than does now. >> all right. there's moscow up a percent today. gentlemen, thank you both. >> thank you. >> thank you, kelly. >>> now, health care reform stalled in washington, but the trump trade agenda is moving forward. coming up, commerce secretary ross joins us in a first on cnbc interview to discuss how the white house c

the u.s. without p.e. >> we have not issued the tax treaty issues, but there are iss issues with the tax flow destination as well. >> we would have to the adopt the response that other countries' vats have adomted is to t-- have adopted which is to collect from the consumer, and so there are many challenges with the vat, and those challenges are going to be trading over the destination tax flow based tax. >> and a large body of work of 160-plus countries to draw on to fig ur out how to make it work, and they are looking agent the drafters to make sure that there is not a shift from amazon uk to amazon u.s. >> and the drafters will have a legal answer to the issue that there will be a tariff inl posed probably on purchase by nontaxable u.s. persons. and i include both governments. >> that san issue, too. >> and the governments and the tax exempt organizations and internet sales, and there has to be some tariff imposed, and now, it is much easier, and i speak as a old legislative drafter to impose the tariff as to collect it. [ laughter ] and if the tariff liability is on the u.s. consumer, bec

over that time frame, the first half of the 20th century you p.e 13.5 times adjusted second half is 17post 2000, above 20. that may mean you got further to fall. there are reasons for it to be rising. transaction cost is one thing. the cost of acquiring, and keeping, equities has plunged. growth rate has been higher than what you see in the 100-year period. cadence of thee time, they're waiting for it to return to a mean that it has rarely done. you are stuck looking at equities. momentum seems to be a more important force in terms of short-term market tactical calls. at the moment, momentum is positive and cyclical momentum says you should be stocks over bonds. we are not concerned necessarily about that and would not see violations as a definitive factor to think about at the moment. guy: interesting considered how fixed income may be talked about in europe. the european union is said to be considering formal negotiations to begin the terms of brexit. according to officials, the 27 members of the block have pinpointed a meeting of government ministers in london. that take place -- th

with the jobs act, the shareholder count change has had a dramatic impact. you have crossover p.e. vate space is a wash if capital. they can't stay private, and they are. >> what about the business that you are in. you own a piece of this business, helping people sell to be. >> yeah, what we do is work directly with companies. when they want to do a secondary offering, what they'll do is use our software to help coordinate that sale. it's much like a real estate transaction. it's a complicated process. we run those transactions, working with the company, where they identify the buyers, set a price, and it's coordinated with hundreds of sellers. 2016, there was a big disconnect between the buy and sell side. those deals took a long time to come together because there was much more buy side drin. this year in the first quarter, we ran some of our biggest ever, and it was much less demand to sell this time around. i think you're seeing that shift to the sell side. >> when you talk about governance and look at snap as an example, are we going to see more and more transactions where comp

the stock is undervalued. we talked about this. it is not about p.e. it is about price to tangible book. when goldman reported, they said it was 170, 260. i'm not it goes back. but it goes to 1.8. do the math. a $310 stock. and holding above previous high of 257. oh, bang! i screwed it up. >> october 31st, 2007. 250.70. we're hoeing above that level now. those three reasons, i say go long. >> do i look at guy or the camera? >> look at me. >> the former price to book in a current contest. you're talking about numbers are meaningless in today's market. >> if you remember the peak, goldman was around 26, 27. what i am suggesting in the world of deregulation. dodd frank goes away. more deals. >> i feel like you picked this stock the pitch because you knew these guys. >> conspiracy. >> let's vote. >> he throws he a lot of pitches out there. i'm going to have to buy this of i think financials are going higher. i'm not sure they live by the same valuations. >> it is a buy. >> that's goofy. >> my happy dance. >> he'll be even happier. buy, buy, buy. >> joker! >> it up next, this -- tech stock. go

i have a great story -- the reason i grew up in miami was my father grew up there and he was not cia. he was a p.e. teacher. he started out as of the lease to top-secret thing in the possible universe. his college roommate, they all stayed in miami after they had graduated, his college roommate said my car broke down, and need a ride to work. they're driving down south and they turn on southwest 52nd street and stop at this building and dad said, i didn't know you were with the cia. it was the worst kept secret in miami. it was the point where everyone knew this is where the cia was operating out of contract to kill castro. they had to change their name again and they take someone -- something even more scary -- more of your sounding. it got to the point where it was a joke about how this secret operation working with castro was being held out of miami. this is a massive enterprise. i'm going to walk over here for a second. these are big buildings. this is a massive amount of space in miami. this building was considered the miami south campus, they rented the space from the university of miami and

the economy but also reduce costs in businesses and in banks. all those things are positive for financial institutions. their p.e. about 30% to 40% less than the market today. it's one of the best bargains out there with pretty high yields. i think it's a very good place to be investing. >> a lot of them selling off today, though. i wonder, scott mather of pimco said just now he doesn't think interest rates are moving that dramatically. could we have a rising stock market. reo covering economy and not much interest? where would that leave the banks. >> the reason i am saying i think interest rates will increase is because the economy will do better. they have to increase if the economy does better because the fed is manipulating interest rates at the -- especially with our lack of reinvestment policy, because they think the economy is only going to be around 1.5% and 2%. so if the economic growth is there, interest rates have to increase. and if they don't, economic growth is good for banks. no matter what happens, other than a slowing economy, it's good for banks. >> what about the fact -- maybe rates are not go

the attempts by state governments to collect their sales tax on other state purchases. >> it's a challenge. >> that's what everybody will do. how is that consistent with income tax treaties, we're taxing amazon u.k. without a p.e. here? >> we haven't mentioned tax treaty issues, but there are with destination tax flow base as well. >> the responses that other countries are adopting they have accommodated those which i assume is trying to collect the tax from the consumer. again, there's many challenges that you face with a vat and those challenges of course are going to carry over to the destinati destination tax base flow. >> and there are countries to draw to, and i'm sure they are looking into it. >> the drafters are looking at it and i assume they will have a legal answer to the issue that there will be a tariff imposed on purchases by non-taxable u.s. persons. and i include both governments -- governments tax exempt exemptions, to impose the tariff than to collect it. and if the tariff liability is on the u.s. consumer because you can't tax the foreign internet seller. they have no nexus here of tax. if it is on the consumer, the likelihood of it's being collected is extremely low. i think you could enfor