>>> WELCOME BACK. WE ARE STILL SEVEN MONTHS OUT FROM THE ELECTION. IT WILL FEEL LIKE 10 YEARS BUT IT IS ONLY SEVEN MONTHS. OF COURSE, WILD SPECULATION IS ALREADY IN FULL SWING. NOW, THE FORMER GUY, TRUMP, IS STARTING TO CLOSE THE GAP IN SOME OF THE ONLINE PREDICTION MARKETS. THE ODDS-ON POLITICAL BETTING MARKET STILL SHOW PRESIDENT BIDEN WITH A LEAD BUT THAT LEAD IS DOWN A BIT FROM A COUPLE OF WEEKS AGO. SINCE THE ELECTION REALLY DOES ONLY COME DOWN TO ABOUT FIVE OR SIX STATES, WE'VE ALSO GOT TO LOOK THERE. THE LATEST PULLING FROM MORNING CONSUL SHOWING THAT THE FORMER PRESIDENT LEADING IN ALL BUT ONE OF THOSE SO-CALLED BATTLEGROUND STATES. SAMPLES COULD BE DIFFERENT BUT THERE YOU GO. OF COURSE, WE ARE CNBC SO WE ARE NOT DOING THIS FOR POLITICAL REASONS. OTHERS DO THAT . WE MENTIONED IT BECAUSE IT COULD MATTER TO THE MARKETS AND YOUR MONEY. TRUMP HAS SAID HE WANTS LOWER INTEREST RATES. HE IS A REAL ESTATE GUY, AFTER ALL. PRESIDENT BIDEN WANTS TO LET THE ENTIRE 2017 TAX CUTS EXPIRE WHICH WOULD JACK UP TAXES ON EVERYONE IF HE IS UNABLE TO REDO IT AND CARVE OUT A PROVISION FOR PEOPLE MAKING UNDER $400,000. REMEMBER, HE SAID THAT BUT IT IS NOT A SURE THING. THE WHOLE THING EXPIRES AND YOU HAVE TO START FROM SCRATCH. THE STOCK MARKET, DEFENSE STOCKS KEEP MOVING UP AT THE REAL RISK OF WAR RISING IN THE MIDDLE EAST. AGAIN, THIS IS NOT A POLITICAL SEGMENT. WE WILL LEAVE THAT TO OTHERS BUT THE ELECTION COULD CERTAINLY MATTER A LOT TO THE MARKETS, THE ECONOMY, AND YOUR MONEY. JOINING US NOW IS HEAD OF RESEARCH AT FUND GLOBAL ADVISORS, TOM LEE. NOT AN ADVOCATE FOR ONE OR THE OTHER BUT IF WE START TO SEE A SHIFT, WHAT WILL THE SHIFT IN THE MARKET BE? >> AS YOU POINT OUT, INVESTORS HAVE TO THINK ABOUT HOW THINGS COULD CHANGE IN NOVEMBER. TO ME, TWO AREAS THAT ARE OBVIOUS WOULD BE OIL PRICES WOULD BE LOWER AND THERE WOULD BE MORE DRILLING. I THINK ENERGY STOCKS WOULD COME UNDER PRESSURE. I THINK HEALTHCARE WOULD COME UNDER PRESSURE AS WELL. YOU SHOULD SEE A COMMENCEMENT IN GROUPS LIKE INDUSTRIALS. YOU KNOW, AS YOU TALK ABOUT THE MIDDLE EAST WAR RAMPING UP, OIL SHOULD BE GOING UP AND IT IS NOT. IN A WAY, THE FACT THAT ENERGY HAS DONE POORLY DOES TELL US SOMETHING ELSE MIGHT BE AT WORK. >> THAT IS WHAT WE ARE LOOKING AT. IT IS AN EXCELLENT POINT. MAYBE WE SOMEHOW GET TO 15 MILLION BARRELS A DAY IN OIL. YOU ARE LOOKING AT $65 OIL. >> THAT IS RIGHT. LOWER OIL IS GREAT FOR CONSUMERS BUT IT DOES MEAN LOWER PRICES FOR OIL AND IT WOULD NOT BE GREAT NECESSARILY FOR THE ENERGY COMPLEX. >> THE PRESIDENT HAS SAID, HERE IS THE DISCONNECT. THE PRESIDENT'S PEOPLE WILL SAY -- THEY HAVE SAID WE WILL LET THE TAX CUTS EXPIRE FOR THOSE MAKING OVER 400,000 BUT THE PROBLEM IS THAT IS NOT HOW IT WORKS. IT IS AN ACT, A RULE. THE WHOLE THING HAS TO EXPIRE AND THEN YOU HAVE TO START FROM SCRATCH. THE PRESIDENT HAS SAID A NUMBER OF TIMES AND HIS TEAM HAS POSTED TO TWITTER THAT HE WILL ADULTING EXPIRE. IF WE ARE FACING DOWN THE BARREL OF HIGHER TAXES FOR EVERYBODY AT THE END OF NEXT YEAR, MINUS THE SALT DEDUCTION CAP WHICH I WOULD NOT SEE GOING AWAY, PERSONALLY, THEN -- >> YEAH. IT IS NOT ONLY COULD TAX CUTS EXPIRE BUT, I THINK INVESTORS WORRY ABOUT A NEW PLAN THAT MIGHT INCLUDE MUCH HIGHER CAPITAL GAINS TAXES AS WELL. >> THEY TALKED ABOUT THAT. >> I THINK THAT WILL SEND OBVIOUSLY A BIG CHILL TO THE MARKETS AS WELL. >> AND HIGHER CORPORATE TAXES. BUT, CORPORATE TAXES ARE ALWAYS LIKE THE BOGEYMAN. PEOPLE DON'T REALIZE THAT CORPORATE TAXES, WHILE IMPORTANT, ARE A SMALL PART OF FEDERAL TAX REVENUE. THAT SAID, THE MATTER TO THE COMPANIES THEMSELVES. WOULD HIGHER CORPORATE TAXES MEAN LOWER STOCK PRICES? >> YOU KNOW, THERE IS GOING TO BE AN OPTICAL CONFUSION FOR INVESTORS BECAUSE EUROPEAN CORPORATE'S HAVE MUCH LOWER STATUTORY TAX RATES. OVER TIME, INVESTORS ARE GOING TO LOOK AT U.S. AND HAVE EARNINGS AND SAY, SHOULD I ADJUST FOR MULTIPLE BECAUSE TAX RATES ARE HIGHER? ULTIMATELY, IT IS NOT GREAT FOR STOCKS. UNCERTAINTY CREATES DISCOUNTS. >> DO YOU EXPECT THE MARKETS -- I KNOW YOU'RE OPTIMISTIC. IT IS STILL BULLISH. YOU HAVE BEEN RIGHT. LONG AND STRONG AND CORRECT. DO YOU THINK WE WILL SEE WHAT WE SAW IN 2016, THE SUMMER OF NOTHING IN THE STOCK MARKET? SUMMERS A SLOWER TIME ANYWAY. WHEN YOU HAVE THIS ELECTION AND THE TWO ARE WITHIN A PERCENT. SAMPLES ARE UP, SUMMER DOWN. IT IS GOING TO BE CLOSE. WE KNOW THAT. PEOPLE JUST SAY, YOU KNOW WHAT, I DON'T KNOW WHAT WILL HAPPEN IN NOVEMBER. >> IT IS A THREE-PHASE YEAR. WE ARE IN THE UP PHASE. MAY, JUNE, I THINK WE RALLY BUT THERE WILL BE A PERIOD OF
