they want to see real voter suppression and action. the chief executives hope by giving and they will be spared and it will move on, history suggest caving to bullies only encourages them. that is it for us this week i'll be back with in-depth interviews on the wall street journal at large, thank you for joining us and have a happy easter. ♪ >> "barron's roundtable" sponsored by invesco queue queue queue. ♪. jack: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. the fund manager behind the most successful public pension funds in the country jay bowen explains how we turn $12 million into more than 2 billion. later will take an in-depth look at facebook and the hidden value inside the controversial company. we begin as always with what we think are the three most important things investors ought

to think about right now. the s&p 500 picked up the second quarter closing 4000 for the first time tech stocks also gain given a first boost of the year the market is cooling as investors become more discerning of what to expect the weeks ahead. some of the loss with investors a bitcoin and bonnie is on the rise, the decline in gold may have crated opportunities, then love is, curled the louche and jack how, carlton, s&p 4000, into it with a 666, that is quite a run, what keeps moving the market higher. >> right now were seen the unloved stocks from 2020 gaining share, we sell energy, financial, industrial gaining in the first quarter of the year and were getting good economic data if you looked at the manufacturing. that we got on thursday highest

that we seen in 40 years if we continue to see those numbers we can see the market continue to grow. jack: firing on all cylinders you mentioned the cyclical names, those are doing well but the nasdaq's been doing very well it's not the high flying stocks. >> this is something that's been interesting, not for the rally that we sold the last few days of the quarter the nasdaq would've been flat on the quarter what were seeing is the tried-and-true like microsoft, salesforce, those of the companies that are really gaining speed and it's not the highflying names that we saw last year and were just hoping to see earnings come way down the line with the yield and is the tried and true doing well on the tech base, there still reasons to be there you detect to be more selective. >> it wasn't a big surprise we had a little more news on the infrastructure plan in the idea of higher corporate taxes, the market sure got off.

>> i think because it's been so well telegraphed by the biden administration when he was campaigning he was campaigning there would be infrastructure push coming and also talking about the effect on corporate tax rates, not going where we were before 2017 but meeting in the middle it's going to be sometime if we see that the plan goes forward and what it looks like if it does so we might see the market react or headline down the line but what was laid out was pretty widely expected by the market. jack: real quick, 4000 is above what a lot of analyst have predicted for year-end, how would become too far too fast? >> it depends adult depend on the economic data if we need to see manufacture like we saw earlier in the week or if the job. that we got friday in the market was closed on friday so we did not see the reaction then so if we see strong economic data and

the earnings come out strong we can go higher if the economic data weakens a little bit were flat on the rest of the year we made trend sideways and hover around 4000 for the rest of the year. jack: thank you, were not seen a lot of speculative friendly of the ipo market it was a downer week for ipos. >> it does look cooler, you had companies go public this last week, as a platform for real estate, the price was 12% the first day but that was after they raise half the money and wanted, yet frontier group at the airline that when traded the lowest offering price and you can contrast that another low-cost carrier a couple of weeks ago, something seems to have changed in our barron's reporter alisa beltran writes that there was signs of cooling, you can see some strong signs,

that is online education, that when did jump on the first day but you could point to companies that have delayed their offerings in intermedia cloud communication and both of them are involved in the online video. jack: do you think this is of a case of investors changing or they are that excited, there obviously online education is a thing but i heard one analyst talk about is not a tech company is a realtor with an ipad. >> it's always a question is it the field or the market, the ipo market has been so hot for so long it's a little bit like 2:0d the most attractive candidates left in your looking around, i do not know but let me make another case, the leadership of the market has changed investors are no longer as excited about the tech high flyers that they

were in now things will participate in a reopening economy and everyone's excited about gravel, maybe the ip market is queued up with the kinds of deals that are not what investors are looking for right now i'm definitely a married man i'm just going but i heard about those places at 2:00 a.m. jack: i don't think anybody is going to single bars recently, then other interesting market dynamic is a concern about inflation, is that too much concern but your hearing whispers that it could happen, when that happens often gold prices go higher but gold so far is not reacting. >> gold has a terrible year so far, down 9%, we have to remember it is not just inflation that gets gold, inflation but inflation is a return to growth, you also have deals rise and there is less mood for a hedge against that inflation even when the government is spending a lot of

money and the fed is buying tons and right now that's a situation we are in where there might be too much optimism about growth in their slowing down in the rise and is looking like gold, is stabilizing about 1700 announced and is looking like a better position is. jack: real quick, he says it might be a better way to play gold and the gts. >> that's right it's cheap and well-run company, if the price of gold goes up it will benefit fantastic stuff. jack: thank you very much, at a time when so many tension plans are underfunded, the tampa firefighters fund is thriving the investor strategist behind the investor strategist behind its success j bowens is

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jack: the tampa firefighters and police officers tension fund is one of the best performing tensions, it is been the sole manager for the last 47 years and increase its value from $12 million to over 2 billion. ceo j bowens joined me now. i want to start by expanding to viewers how unusual your approaches, by the time the pension fund reaches the size of the one that you manage it would be overseen by consultants of farm out the investments in different managers to hire different ones, fire different ones over the years but your company has been running solo for half a century and over that time you outperform just about every other pension fund out there. >> right were over 2.6 billion and were in the midst of our 47th year end it's exceedingly

unusual as you say, lessening public funds particular funds of any size are controlled by the investment consultant who has a stable manager in the various disciplines, small-cap, large-cap and over the 47 years we call ourselves unconventionally conventional it is a high-quality long-term approach top-down fund moderate and we actually take a 20 year investment approach and what we've been able to show on common stocks in equities and what we've been able to show every fiscal year we presented another set of 20 year rolling data and we've been able to show the fast into vast superiority of equities versus fixed income or cash. jack: you said your top-down fanatic manager, can you give us your top-down view, right now the market or the economy.

>> right, were looking at three things right now that i think are important, one is a monetary/physical theme and that involves what were calling the de facto merger of the federal reserve board and the treasury department and that is not without risks, the second thing that we are looking at which is becoming more and more important to her 21st century economy is the fourth industrial revolution and that touches a variety of industries and companies in areas like industrial automation and 5g in artificial intelligence and robotics and like scientists obtainable technology in a top-down standpoint were looking for the industries that have the most growth potential and what he get down to the individual security analysis from the bottom-up standpoint, it is a much more traditional evaluation metrics like the balance sheet in the free cash will and return on

equity in dividends and earnings growth and that kind of thing. in some respect were growth oriented is. jack: one of the stocks that fit the theme is corning, tell us why you like that stock. >> corning, barron has done great work on corning, it is a very innovative company with a robust r&d budget and they touch like you say a variety of the industrial revolution themes including the 5g with the fiber-optic backbone of the 5g they also touched life science with the baller glass which is a great innovation that i believe all through the vaccine companies are using it for the vaccine because of its strength and resistance to the cold, they also had a very lucrative and important collaborative

relationship with apple because back over a decade where they make and innovate with various glass products for apple which coming soon which is already here is the latest generation of guerrilla glass. jack: we have to leave it there unfortunately but thank you very much for the insights and congrats on your performance. >> thank you so much, i appreciate it. jack: facebook seems to be surrounded by controversy but there's hidden value inside the there's hidden value inside the stock, the p ♪ ♪ we made usaa insurance for veterans like martin. when a hailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa

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jack: despite schedule, regulatory pressure and activist campaigns, facebook has

increased sales and profit at an amazing pace, the cover story barron's writer makes a case of the stock is selling far below intrinsic value, the editor of the story joined the roundtable now, thank you for coming on, you and i are among 3 billion people around the globe who use one or more facebook apps but barons argue it doesn't reflect the gargantuan market power. >> we make the case in the cover story that facebook is as cheap as it's ever been, the easiest place to start is the fact that it's traditionally traded at 40% premium to the s&p 500, right now that premium is like 10% even if you just got a reversion to the mean you're saying 20% of upside for the stock that is a simple case right there. jack: that is simple when you get more compelling when you look at the various parts of the company and some of the parts looks a lot greater than the

whole. >> this is where it gets interesting facebook is not just facebook anymore and we sometimes forget this is a collection of the large and partly that's because the company does not disclose all that much but instagram, whatsapp, virtual reality, growing e-commerce businesses in max who wrote the cover story on instagram value, wall street estimates about 30% of facebook sales that comes to $25 billion if you take the 25 billion and multiplied by the multiple that snap gets and it's probably instagram's one big rival snap is valued at 30 times sales, 25 billion times 30 deck is due to $760 billion, that is a big number and from there we looked at the e-commerce opportunity and for that we looked at what shopify is worth, that is worth

$140 billion, let's say facebook should be worth and 100 billion, the bottom line deck into the $850 billion, that happens to be the market value of facebook stock right now, basically investors are getting everything else for free, that includes core facebook, whatsapp and any virtual reality efforts from facebook. >> what about the all the tech giants have a second or third act when they're killing in india masson has e-commerce and cloud computing, for facebook, is that going to be e-commerce, how are they doing their and what about virtual reality, the last time i checked on that it looked like people were strapping toilet seats to their heads and calling it the future has that business got any more interesting for investors? >> let's start with e-commerce i think it's a big opportunity for facebook, shopify has soared

because basically during the pandemic all the brick-and-mortar realize that they need to pick it online and shopify to help them to do that with software tools, facebook realize it has a platform to do something similar although small businesses are advertising on facebook so why not help them sell their product and with a huge opportunity for them there working with shopify but there's no reason to think that facebook almost with a switch to get this going and that seems to be what they're doing mark zuckerberg is personally involved in the effort and they think this is really big, as for virtual reality you are right i been long skeptical of virtual reality they have not been easy to use products that were finally seeing better hardware, facebook has oculus quest to the company says they mainstreamed argument you don't need a lot of cords and a bigger thing strapped to your head and you

don't need a powerful pc to run it, this can be a turn for virtual reality if people start to use it, the mainstream consumer and if anyone's going to benefit, it would be facebook is. jack: real quick i know facebook it's a lot of slack because basically they monetize outrage and they allow people to algorithm essentially sat, that is a big issue, right? >> you have to take that zuckerberg is one of the most hated ceos in facebook might be one of the most hated products, how she investors think about that. >> we spent a lot of time thinking about this it's hard to know exactly what that sentiment does to the stock i think it's fair to say it does discount to some degree and is partly why it's cheap but it's also important to think about the history of facebook this is a company dealing with controversy as well before the ipo almost a decade ago and did add a delete

facebook movement and last year you had a prominent advertising boycott and it got a lot of attention but ultimately no impact on facebook's bottom line is we went inc.'s a lot, we could spend an hour on facebook but there's a lot more detail on the cover story as well as this week's reback podcast. will be back with the panel's investment ideas. ♪ all right that's a fifth-floor problem... ok. not in my house! ha ha ha! ha ha ha! no no no! not today! ha ha ha! ha ha ha! jimmy how happy are folks who save hundreds of dollars switching to geico? happier than dikembe mutumbo blocking a shot. get happy. get geico. fifteen minutes could save you fifteen percent or more.

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my wife says i want to go anywhere be around other people at any restaurant, i don't care, what do you think about that is we would have been thinking about pent-up demand all the sudden i have a vaccine appointment and where i live it only has to be over 30 i'm over 30 but enough years to make another adult if you want to so i got an appointment right away, where's the pent-up demand i booked the trip was summer time for my family, we always do that, i'm gonna go to drinks with you and get up real close like this when i'm talking with you, we will do that good experiences there but what about stuff there's nothing that i feel like buying i now and i spoke with her over it bma she said there's not a lot of pent-up demand among consumers not as much as you think there's very high pent-up demand among companies for capital expenditures, their analyst ran a screen for companies whose sales have been highly coordinated with an increase of x-uppercase-letter is not a buy list but companies are correlated and some of the names are caterpillar, thermo fisher

scientific and martin marietta material they make the gravel that i told you about earlier that is attracted to investors. jack: with that we end with two ideas, starting with u.s. service, not stuff. >> it definitely is a service for people who may feel like they have too much stuff on them is ww international the former weight watchers the reopening player people working out as much as the economy reopens they may feel they they put on covid pounds and they're working for wellness, we can see these companies accelerating with the digital offering during the pandemic but also in person meeting to resume fully at the economy reopens. jack: take us home with your idea. >> sure they make chips for cell phones, the stock is been consolidating for a bit and looks like it's ready to breakout cheaper than the market at 187 times but it's tech titan

improving economy, looking interesting. jack: jack, thank you as always, to read more check out this edition of barron's.com and don't forget to follow us on twitter at barron's online, that twitter at barron's online, that is it for us, be healthy, where ... dr. michael youssef: hello, friends. blessed resurrection sunday. oh, what a day of rejoicing that is, to rejoice in his resurrection because by his resurrection we're assured of our own. and today's message is gonna bless you because i'll be talking about, "the resurrection and you." you personally, individually, because you are known by god by name. stay tuned. female announcer: have you downloaded leading the way's free smartphone app? with the ltw app you can watch episodes