i can't see getting long it here. >> it's not a valuation story. it's always been -- >> i was going to say if it is you can never buy it. >> exactly. >> if you are picky about valuation don't look there. >> it had a nice selloff or meaningful give back from 700 to about 550 and this little bit of life, i mean, if i had to pick a high flier to sort of stay with i like this one. >> so let's talk about facebook here. today was a nice rally, the stock was up 3%, it broke down, you know, about 105 earlier in the year here so to me i think we will get a follow through of the market early next week prior to facebook's results. i think you probably see the stock north of 100 before they report, but i think it sets up as a really good opportunity to take advantage of those high implied volatility option prices to either put on protection if you're long or make an outright bearish bet. facebook playing for a take back to probably the mid 80s here. so today i want to use a trade structure called a butterfly and i want to use a put butterfly, look at february

i couldn't see getting long here. >> it is a valuation story. it's always been. >> maybe, if it is, you could never buy it. >> right. >> if you are picky about valuation, don't look there. >> it has a not selloff or a meaningful giveback from 700 to 550. and this little bit of life, if i had to pick a high flyer to sort of stay with, i like this one. >> let's talk about facebook here. today was a really nice rally. the stock was up 3%. it broke down, you know, 105 earlier in the year here. i think we'll get a follow through of the market prior to the facebook results. i think you see the stock north of $100 before they report. but i think it sets up as a really good opportunity to take vavng the high volatility option prices to either put on protection if you're long or make an outright bearish bet, facebook playing for a take-back to probably the mid-80s here. so today i want to use say trade structure called a butterfly. and i want to use a put butterfly and a february expiration. when today the stock was around 98, you could buy the february

the stock, we know the valuation and the balance sheet and the capital return. we have to get through the earnings report on tuesday night. the options market is implying a 6% move. if you are long stock and you are worried you might want to put a collar against your long stock. that is selling an upside call and taking in the premium and buying a put to the downside. and you are callering your stock. so lets look at stocks and then i'll give you the trade. this is how i'm arriving at the call strike. this is a big breakdown level both in august and again in december. the stock found support at the opening of the august 24th low. it bounced from there. the other day. that is the one-year chart. this is the five-year chart. this is important. look at this uptrend. this is just working its way right there at $100. that was also the 2012 high of $100. the stock is at an important intermediate term spot. an this is the dig one. this is the 10-year chart from the lows. you see this nice uptrend. this level, it is finding trouble. if the stock is going to continue to

economy barring -- take the stock market valuations out because part of those valuations, of course,based on pumping them up from the central bank perspective. >> when i look at interest rates moving down and the chatter on the floor is, oh, my gosh, i can't believe rates are going down, i can't help but think there are thrill yonz of dollars in a coral on the fed's balance sheet should they hit the market? i think it might make a difference. and when you look at it another way, i'm not sure if there's going to be more qe, okay, but if there is not more qe, over time just look at what the cbo projections are for deficits? from 2016 to 2025. eventually that coral is going to be less important. we have auctions pretty much every other week. ultimately consider the simple form of what happens. commodities moved up. energy moved up. much of that was fueled by the same thing that fueled stocks. excess liquidity created by central banks. that created leverage, lerchlg moved into the carry trade, and all of that, of course, has been revers reversed. on the way up i was saying i look at the

. >> if i just look at valuations, vladimir -- >> it's the whole valuation deal on that in a moment. want to first stalk to tony, the number one ranked analyst. he has a buy on the stock. was on the call last night and joins us once again. he's with sanford bernstein. >> good to see you scott. >> you asked cook directly about iphone saturation. essentially is and has the iphone peaked. he disagreed with you. do you agree with his answer? >> i don't think that the iphone has peaked. if we take a step back and just think about the hand set market in the world there are over 5 billion hand sets. only a little over 3 billion of those are smartphones. we believe over time essentially every hand set will become a smartphone. so there's lots of room for the marketplace to grow and i know the push back will be well that will be for people that will buy much less expensive phones but there's income growth in emerging countries that's very rapid. particularly in places like china and india. so first and foremost the market is not saturated. secondly, apple had the highest number of android swi

tonight due to the county's annual valuation report not being ready. and that could impact residents' property taxes. he says "system issues" mean he can't get a valuation report he can approve. the computer system has had issues in the past. in 2014, homeowners were supposed to pay their property taxes by september 30th of that year. and typically, the county would have let people know by november if they had missed the payment. but a glitch meant those notices were still not out by february 12th last year. kcrg t-v nine brea love has been checking into this today and joins us now. brea, what does the auditor's office plan to do? the auditor's office has worked hard to get this system to work since they missed the deadline at the end of december. that valuation report is important because it tells different entities like cities, townships, and school districts how to determine their yearly budget. if that number is less than last year's budget, it could raise property taxes. frustrating for linn county auditor joel miller. "the software and or system

but it comes about ak to valuation. and some of the mega-growth stories that looks good going into the ipo and almost cherry picking numbers and saying we're going to impute this across the entire growth path has proven to be faulty. and you can't pay 45 to 50 times on a burrito or burger company and it gets back to value. >> so shake shack is out. >> i've been saying that for a long time. as far as mcdonald's or wendy's. i think mcdonald's is a financially engineered story right now. the guidance is at the far end of the range. i would rather own wendy's. >> i never thought that there was a problem with the red robin name. >> tim had a bb gun growing up. >> and this is a would you rather, you know how i make up the rules, i'm going yum. upside is 90. forget the burgers, go to yum. >> red robin. >> auto sales are up again. could we finally be hitting peak ooxt the ceo of ford says no way. we'll hear from him after the break. much more "fast money" still ahead. checking out the listing on zillow i sent you? yeah, i like

valuation got really cheap.hat's different from then is, you know, we got a significant buyback, significant capital return, which, you know, i hope cook and company are buying every share they can now at current prices. that's a metric i'll pay attention to with the upcoming earnings release. >> they certainly have the firepower too, that's for sure. appreciate your time. >> thanks again. >>> check out the markets. session lows. dow is down 51. pre-market indicated as much as up 200 points on the dow. that's all gone and then some. rick santelli what are you watching today? >> we have to talk a bit about today's jobs report. we'll talk about it maybe in the context of the fed and the context of the stock market. as you pointed out, down 47 in the dow. and we'll revisit chinese issues. all after the break. >>> coming up on the half, investor mark lasry is with us today. we will talk markets and what he calls a once in a lifetime opportunity. and three more apple cuts today. and portfolios with purpose. we'll tel

doug: i look at valuations on the basis of sales.rice tondustrials sales ratio is still about 1.6 or so, even after the carnage of the last couple of weeks. it is still in the top 10% of the entire history, going back to the mid-1950's. what that says is that we are adjusting to the fact that profit margins are still incredible behind this country. adjusting for that fact, the simplest way to do that is to look at the top line, to look at sales. even though it has been painful here in the last eight months, especially outside the s&p 500, valuations are the second-highest you have ever seen. the other thing he noticed is that low volatility means in august.got hit there has been a pretty steady disruption. what does that say to you about the cyclical bear market? doug: it is interesting. people focus on the "fanta" stocks. what a sales, not a lot of lot of sales, but not a lot of earnings. but economically defensive stocks, usual subjects like coke or mcdonald's or kellogg's or campbells, these have all benefited tremendously in the

valuation has become a concern.olds 56.25 which is a bit of a support line. >> all the stores in china, that's where future growth will come from. this company has high single digit comps last year. >> buy the stock here. >> guys have to be in the space. >> why do you have to be in the coffee space? >> you're a quick fast options trader. if you're managing $100 million and the people manage from $1 billion to $100 billion, you have to be in the space and own something. you are not going to own dunkin brands. >> dan thinks it's headed back to $50. i think it holds $56.25. that's where it closed same day august 24th. >>> is today's rally a fakeout? we hear from a wall street insider who says a thunderous market collapse is coming. >>> disney in a steep decline. bob iger swooped in to buy the stock. is he trying to catch a falling knife? details ahead. >>> welcome back to "fast money." executives from some of the biggest banks are sounding bullish at the world economic forum in davos today. listen to morgan stanley ceo

, the lower valuations, makes companies riper for m&a.l we see an uptick because of these? >> i do. i think -- it's my belief that a lot of the larger companies have been looking to do acquisitions, whether they be, you know, kind of small acquisitions or bigger acquisitions. i'm aware of number situations where companies have larger companies just, you know, strategically wants to do a deal with a smaller company, but can't make the valuation work. when you see the stock prices reflect lower valuations, it becomes easy for those deals to build. it's important to remember, though, that the companies where their stock just fell don't kind of immediately recognize that, right? they say, oh, three weeks ago my stock was x and now it's .7 x or whatever. it does take a while for that to kind of sink in. i wouldn't expect some kind of joointd giant jump in m&a. >> speaking of one company in particular, you just were named chairman of ariad. a company you have been involved with for some time. just named the new ceo there. some folks wonder iffe

, do you think these valuations are getting ahead of startups ability to grow?n: we are in a rare time of normalcy. good companies can go public and bad ones can't. in the private market, there are pockets of valuations that are too high, and some too low. emily: no bubble, the sky is not falling. john: this is a boom, not a bubble. it is a long boom. and that is because of the extraordinary effect that these devices have had. we have 2.5 billion people carrying them around. and another billion to come. an entrepreneur, innovator, can create a new product or service and in a week have a billion people using it. that is different. emily: what is also different is the amount of capital that is flowing into silicon valley. private equity firms, hedge funds, people like carl icahn. what do you make of that trend? is it creating more competition for you? beth: it is so incredibly competitive out there that we have to wake up every morning and compete to win and work with the best entrepreneurs. john: there has never been a better time than now to create a new company

a lot of the ideas are looking for higher seed valuations.eneurs who are looking for what we feel like our somewhat rich valuations, they don't realize they could be setting himself up on the wrong trajectory for the rest of their life. we try to balance the fact that sometimes it doesn't, the valuation doesn't matter if you're on something big, whether it's five or 15 you want to be involved but you don't want to set the company up for good because it starts out too expensive. this year seems like a great year for companies who are sort of a couple years ago to have follow on around. we have not been super active issue because we are looking for big ideas at the right valuation. >> agreed. there's just been i say a significant increase in number of funding but the valuations are still relatively constant. they have bumped up but they're not crazy when you look at the series. look from 2012 today, the pre-money valuation to have essentially doubled. that's just not healthy for the overall ecosystem and i think that's where you step back and l

remainder traditional valuation o.p.s. questioning growth. this is what is going to do well over the next 12 to who 18 months. you cannot take the risk on things -- nejra: even if you cannot invest directly -- i spoke to a guest on bloomberg radio last week talking about the luxury saying look mother are a lot of companies investors can't quite access because they might not be listed. those are the ones you want to be looking at more than the older players. >> there are several reasons for that. the first one is competitive. the same way if you have been looking at emerging markets there was a time in the past you can invest in it, but those trends have very big impact on the competitive environment for companies you could buy or choose not to buy, because they were threatened. the other reason and i think you pointed it out very well for the luxury sector, is that the companies may become target acquisitions for some of the stocks listed. if you put your eyes on them early on, you will have a better feel or understanding of what their produc

dfj was an early investor in theranos, now at a $10 billion valuation.u stand behind theranos? would you invest again? steve: we definitely stand behind theranos in the sense of we are an investor and want them to succeed. we do not though, have the , answers to the questions swirling around, which is can i give you an answer to the questions others are asking? i do not have that. here is what i can tell you. i remember meeting her when she was still a stanford student. emily: elizabeth holmes. steve: yes. elizabeth holmes. as a teenager, she started the company with great passion. i remember my partner tim saying in the first meeting, she is like steve jobs. this is long before she was wearing the black turtlenecks. i did not see what he was referring to. i even wrote it down on a piece of paper to remind myself that he said that. but it was fascinating. she had that mesmerizing zeal to revolutionize. she was not calling it phlebotomy at that time, but the entire field of medicine, there were these special kinds of needles. we were the very first check.

it's still a crazy valuation right here. great company, great product. >> i understand these are vi individual stories, but directionally as we enter the depths of earnings season, we're still going to get google and some other big cap tech names, what's your feeling here? >> it doesn't look good. the only thing that seems to be working is the services and facebook. that's it. anything else seems to be pretty bad. i mean, apple, listen, apple had a great quarter in terms of record quarter. but they're saying the future is not going to be so great. amazon, their revenues were not horrible, but it cost them a lot of money to get those revenues. in this environment, it's going to be tough. tech in general, samsung we had last night, they had terrible numbers saying that cell phones have slowed down. in general, the picture we're getting from earnings season is a slowdown, and then looking forward doesn't look so great either. >> are there bellwethers in technology we should look for in order to sort of set the table? out of the

entrepreneurs are looking for somewhat rich valuations. they don't realize they could be setting themselves off on the run trajectory for the rest of their life. we try to balance the fact that sometimes the valuation does not matter if you are in on something big. you want to be involved with the entrepreneurs, but you don't want to set the company up for failure because it started out too expensive. this year seems like a great year for companies that were started a couple years ago. we have not been super active this year because i think we are looking for big ideas at the right valuation. >> agreed. there has just been a significant increase in the number of the deals being funded, but the valuations at those levels are relatively constant. they have bumped up, but are not crazy. you look from 20 12th two today, those pre-money -- when you look those012 to today, notmoney valuations are very different. when you look at average eggs massg back 40 years, the gets tough. blanket. the wet there is sort of the reality factor that plays in.

that correlation between private market valuation and public market valuation, we have been him market, we have been able to look the other way for a few years. you're not like to be able to look the other way. you're going to see the correction. it is already happening. you have seen it with fidelity him him doing the markdowns of him him the late stage private investments. that market shifted dramatically himthat market shifted him in q4.y him the public does not know this himthe public does not know this yet, but i can tell you that him yet, but i can tell you that venture capitalism massively slow down in q4. -- slowed down in q4. him they're lowering the value -- valuations for startups. we invest in early stages, him before companies have profits, and usually before they have large revenue. we are typically investing $2 him million to $59 in the early stages. it has not had a huge impact on the early stages. in the later stages is more him where you see it. emily: ok, thank you for joining us. thank you for being brave enough to take on paul graham. by the way, we did reach out t

>> i don't look at the valuation at all. i'm looking at the momentum. i'm looking at the technicals. >> but the momentum now is, you know, shoddy. >> one day. >> you can't look at that. >> 2 1/2 hour event. >> amazon has had an average pe of 100 times earnings over the last ten years. the stock has returned 1400% since 2005. with these names, the people that are involved in them are not at all fundamental valuation conscious. they're looking at price to earnings growth at best, but most likely, they're saying what's been working over the last two weeks. that's a whole different ball game. >> yeah, and did the story break down? because i don't believe anything that happened in the market here caused people to not renew their subscriptions to netflix. >> cites three things, rising churn, rising contract costs and -- >> all of that was the same as it was last week on thursday. now, you had $100,000 and you bought $100,000 worth of netflix. you made 130,000 last year. obviously, was up 130%. now, take a look at what has transpired today. if you sold last we

its debt load is four times the company market valuation. the company suspended payments on asus bended that on a suspended stock dividend. payments on a suspended stock dividend. look at the fall we have seen in this bond, trading $.52 on the dollar. this is not even its worst one. debt inbuy back this order to give themselves breathing room so they can survive the downturn? energy companies had to become credit traders. what role do the banks play in this? >> that is incredible, especially the market cap versus the debt level, and you question -- without taking drastic measures. morgan stanley has cut james .orman spain by almost 7% he has $4.64 million in stock for the year. that includes cash and deferred compensation. equity is down $21 million. >> much more coming up, we are seeing major flows into the u.s.. andt's snowing in virginia washington, d.c., and the storm makes its way northward. much ofspected across the eastern united states. flights canceled today and tomorrow, could be one of the 10 worst to hit the eastern seaboard. a u

valuations on the shanghai exchanges are the highest in the world. the ratio is above 55.hat's almost exchanges around the world are in this is internet bubble levels. >> if you look at some of the u.s. valuations, that's what it's like. >> they are treating the average company like it was and they are not all future alibaba's. you have a lot of penny stocks. we were a restaurant chain, now we are a tech company. >> they are renaming themselves to sound more tech like them they are. been market manipulation. upfound one ipo that went 4000% in two months. a few months later, they restructured and halted trading. companies have the ability to suspend trading in their own stock if they say there is news pending. >> thanks for laying it out for us. her first feature was debuting at sundance. ♪ >> the theme is the fourth industrial revolution. of activity hopes growth. concerned there could be economic harm. shape the contours of this debate for us. robotsf people think will be making dinner. some say that's not the best thing. >> that's right. it's going to automate a lot of l

and because of valuation. it frads around 70 times -- trades around 70 times of ebidta of 16 or 40 times ebidta for 17 and sitting at $115 target. >> when you hear hastingss and the rest of the team talk about content and the quality of content you are able as analysts to interpret at all or is that way to quantitative for you. you are like i don't have figures to back any of what you are saying up? >> we did proprietary analysis in our previews for this quarter as well and you could see the content and how it resonates between trends within searches. and we is a particularly strong and jessica jones was strong. so so you could get a growth and see how they range. >> when you look at domestic versus international, there is an argument that domestic is getting saturated. the first quarter estimates are down 40% or so. could you impute that on the international growth because i get they just went rest of world and i get there is growth there in early stages. but should i be disappointed that the domestic side is

valuations have fallen significantly. our view is that the discount is not high enough given that fundamental challenges exist across some of the parts of emerging markets. it's not just brazil, it south africa turkey russia and china. even though valuations are becoming more attractive. i think in our view that we do not yet see enough instances where you can combine valuations and a turn in the fundamental picture to make it more instructive. jon: the story for the broader develop,.m., and i have you tried to play that in the last couple of months, you got your stuff into trouble. your line, this is a well advanced global equity bear market -- a lot of people are finding it hard to say those words. >> if we step back and think about the decline that we had, markets are down significantly since april of last year. since the height of optimism around ecb qe. it's happened in stages and even at the end of 2015 markets have clawed back a lot of recent losses. i think that is important to step back, when we are considering t

that valuations are too high?roy: i'm seeing valuations that are way too high, because the company is not worth what that valuation is, at that particular time. when you have a rounds that look like b rounds, and the late -- and be rounds that look like the -- c or d rounds, and the late stage looks bigger than what the ipo would be, i think you have to really be smart in your approach to how you deploy capital. as a founder, i just would be very careful with burn rates right now. and making sure i have a clear path to revenue. just in case the winter comes quickly, you are prepared as a company to survive, and not just surviving off of fundraising. emily: do you think winter is coming? troy: winter always comes. [laughter] it is a matter of when. i definitely feel like there is a correction coming. we see a series of many corrections, by the way. i don't think the bottom will fall out, but i think we will see a series of corrections. hopefully, nothing catastrophic happens. emily: where are the egos bigger, l.a.

that is the difference between a wholesale valuation and a granular valuation. disagreeing with the assessment made by the ssm. there has been a significant amount of confusion. i hope this exchange will help. thank you. >> if inflation is becoming a long-term problem while the ecb is far from achieving its mandate, what is your message for countries like spain? whose internal evaluation is less effective. you said in december that we have to rethink the physical -- fiscal terms of the euro area. the european commission is sending us another message. you are marked on the necessity of infrastructure investment. we need a change in the fiscal policy in the euro sum. -- eurozone. point, i think spain is one of the countries that has a really -- has really achieved most significant reform and its structural reforms especially. the figures that spain has enjoyed in terms of outputs, recovering growth and by and large all sectors are simply remarkable. on its country is now way to continue its structural reforms. , with very lowar inflation rates for long periods of

with this action, the property tax rate would increase approximately 32 dollars of valuation--this is 81 cents lower than originally projected due to the use of the sales tax funds. this would cost the owner of a home with an assessed value of $100,000 $17.50 per year. the last bond referendum, held on april 7, 2015, failed by only 58 votes. back to you nicole. thanks a lot forrest. voters in the waterloo school district will also have the chance to approve or deny a bond referendum. on february 2nd, they'll decide on a new career center and renovations at east and west high school. the school district is holding three town hall meetings starting today to provide a betterer understandin g of what this money will do. voters can go to the waterloo center for the arts tonight at 7 the other meetings are on thursday and saturday. a historic waverly bridge may get a makeover, partially thanks to a petition to save it. the city now has 14 options to either replace or repair the nearly 100- year-old bridge after it closed because of structurara problems. the city of waverly showed off the op

i'm having a little issue with, but, you know, valuation is what valuation is. >> congratulations.i think these are the first tens we have ever seen on products so you have done a great job. >> great way to start the new year. >> we wish you the best of luck with everything, i think you just recruited more customers for your product and thank you for your advice on this. >>> if any of you out there are interested in coming in to pitch your company here in the elevator, send us an e-mail, end is to your business@msnbc.com. our experts will tell us if they think you have a chance of scoring some funding. in your e-mail please include a short description of what your company does, how much money you're looking for and what you plan on doing with that money. we look forward to seeing some of you here in the elevator. >>> time for the top two tips you need to know to help your small business grow. amos and monica are back with us to help us out. all right. we have had our new year resolutions, let's think about how we're going to make our companies grow. monica, let's start with you. >>

>> yes, it may be a valuation issue. you know, when we last heard from apple about the china situation, they were saying, look, things look pretty good for us there. i think that's generally true for many consumer products. selling into china. they sell good news. industrial equipmentmakers saw very bad things in china. that's the tale of two economies in china. the more you're oriented towards the consumer, things look good. if you're focused on business or even infrastructure spending, that's not going to fare as well as it comes to china's growth in 2016. >> jeff, why are we seeing this outsized impact on some of these china stocks? because we know that the evolution of the chinese economy to a consumer-based economy from a manufacturing-based economy is going to take years at this point. it's going to take a lot of trial and error. like what we saw in the circuit breakers overnight. why does this still surprise the market? >> well, that's a great question. i think in part certainly even today's pmi data suggests that

i would note in addition to politics and pricing and valuations and the concern, one of the other mack concerns m&a. people are worried that a softer macro environment will mean less flow. >> or lower multiples for the deals which were at incredible highs. >> right. >> heat on inversions. >> i should point out a lot of the bigger companies are saying the lower valuations are making them more opportunistic. abbott highlighted that. they want to emphasize that they're looking for opportunities. >> medical equipment names still work in the environment. you still see m&a there. striker. they talked about that performing well year to date. all those names in medical equipment will work. >> thanks. >> all right. coming up a bright spot in china as alibaba's earnings beat the street. stock is turning lower though. josh brown earns it. we'll get his take on the numbers. microsoft reports after the bell. we'll set you up ahead of those numbers. you're watching cnbc first in business worldwide. >> the halftime report is the place for market moving interviews. >> as i look to the fourth quarter o

so you get valuations where you look at a valuation and you go, why is that value that way?wer is people are not distinguishing very sharply between which companies benefit from a globalized network age and which companies do not. that is the key issue that breaks between the polls and the bears. emily: our clients are really interested in this topic. is it really subjective whether or not we are in a bubble? 1999, no one would dispute in retrospect. reid: no one disputes bubbles in retrospect. that is not actually the test. clearly, that was artificially inflated and had a re-correction that was serious. the question comes down to, look, it looks like some of these valuations are high especially on the private market side. that one seemed a little crazy. you can see things where private valuations have been much higher than when companies go public. with the public markets not being affected as much. so you get those kinds of things where you say, look, there are clearly some elements of a private bubble. however, the key things comes down to is i think we are going to see

manus: let's get you into valuations.rom one of our bloomberg stories, where things might get worse before there's a buying opportunity. on the white line, you have the stoxx 600 price-earnings metric, and the s&p above that. the value is the stoxx 600, worst week in four years, where we were. valuations of 14.2x earning. is this a rerun of a rerun of last year, with that rally in europe? have is that ii don't think valuations are what we should be looking at. i think that valuations can stay expensive for a long time, and they have been expensive for the last five years. in a way, changes in relative valuations don't tell us much. this stock does show that europe is a little bit cheaper. my view is that once you adjust for quality, stable earnings zigzags.e a lot of's exam anna: thank you so much for joining us. manus: let's get you your day ahead. first, germany publishes a report on economic growth. anna: than the rate decision from the bank of england at noon. then the ecb publishes its accounts from the december meet

we've talked a lot about valuations, when do they become compelling.seen valuations of price to earnings at their lowest since october 2014. this is another way for investors to look at that. have not founde valuations compelling enough to come back in a sustained way into u.s. stocks. scarlet: we are on the cusp of a three day weekend, and weekends of late have been the chinese government has had time to tinker with things are announced policy changes. julie: it's the third friday of the month, expiration. on do get some wonky trading the dates you get options and future expiration because the first friday of the month was january 1, even though it wasn't an open day in the markets. scarlet: that might account for the increase in volume as well. up 60% versus the 100 they average. thank you so much. we will be checking in with julie throughout the day for more insight on this movement here. now we want to bring in bloomberg guest columnists. guys, you have been talking to your various sources. it feels like more of the same, but on a grander scale, do

valuations have come closer to normal. >> you think so.f you look at where volume in the last several years you are toward the low-end. your below 15 times forward. that to us is very attractive which is why at the end of the day you started to see more two-way price activity. people did start to buy. >> even ahead of a long weekend. >> that is right. and given the risk that china poses over the long weekend, that is encouraging. scarlet: in terms of levels, the s&p 500 declined to as much as 1857.83. you to go all the way back to the end of september when we hit the 1880 area, and then back of course to late august when got to as low as 1867. that has proven to be a support level for equities. will that hold? >> we believe it will, but what we would say there is that in the event it does not, the downside is likely limited to perhaps another five or 6% if you look at the history of past corrections within this market. the question really have to ask is the secular bull market that we have seen since 2009 over? the past 25een in years is t

emily: it is now a $10 billion valuation. do you stand behind theranos?mily: what do you think about this bubble talk right now? steve: every time you ask a question like that somewhere a fairy dies. [laughter] i don't know. it is interesting how the private funding world is reaching valuations we have not seen before. we believe in early-stage investing that is way before the unicorn phase. we are fine if people want to invest at those kinds of prices. there are new unicorns being born every week. it doesn't really mean anything. that ipo window may be shutting. emily: i have to ask you about theranos. would you invest again? steve: we don't yet have the answers to the questions that are swirling around now. i remember meeting her when she was still a stanford student. elizabeth holmes. i remember my partner tim saying she is like steve jobs. she had that mesmerizing zeal to revolutionize. the entire field of medicine. these special kinds of needles and things. we wrote a $500,000 check before anyone else. she has been somewhat independent. i do have the