THE PRESIDENT AND FOUNDER, MARK

AVELON.

>> GOOD MORNING.

MARIA: DOES IT IMPACT THE WAY

YOU ALLOCATE MONEY FOR THE U.S.

OR EXPECTATIONS FOR THE U.S.?

>> CONTINUATION AND THEY WILL DO

WHATEVER THEY CAN TO KEEP A

STRONG ECONOMY NOT ONLY TO STAY

IN POWER BUT RIGHT NOW THEY WILL

DO IT SO THEY HAVE MORE LEVERAGE

AND STRONGER POSITION AGAINST

PRESIDENT TRUMP AND TRADE TALKS.

I THINK THE CHINA MOVES

SHORT-TERM IN FOCUS, THEY'RE A

NET POSITIVE FOR STOCK, THE

STRONGER THE CHINESE ECONOMY,

THE STRONGER THE TRICKLE IN

MERGING MARKET AND VALUABLE

TRADE PARTNER IT IS FOR US.

SO FOR STOCK INVESTORS IT'S

ALWAYS GOOD SEEING CHINA DOING

THIS, LONG-TERM WE ARE NOT SURE

HOW IT ALL PLAYS OUT.

MARIA: WE ARE SEEING THE MARKETS

REACTION, ANY TALKS OF TRADE

DEAL OR IMPACT ON THE ECONOMY

THERE, DO YOU THINK WE WE WILL G

THERE, DO YOU THINK WE WE WILL T

A TRADE DEAL AND DO YOU THINK

THAT WILL MOVE MARKETS?

>> I THINK WE WILL GET A DEEP,

WE DON'T KNOW HOW DEEP OR

MEANINGFUL IT IS.

PRESIDENT TRUMP AND CHINESE

COUNTERPARTS WANT A DEAL.

THE CHINESE WANT THEIR ECONOMY

TO PICK UP.

PRESIDENT TRUMP WANTS A VICTORY

IN A BIG WAY SO I THINK WE WILL

GET A TRADE DEAL BUT WHAT

HAPPENS WITH THE RUN-UP IN

STOCKS IN JANUARY AND FEBRUARY,

FIRST IT WAS A FEDERALLY WHEN

POWELL BACKED OFF A LITTLE BIT

BUT THIS LAST LEG OF THIS 2019

BURST IN STOCK MARKET HAS BEEN

BECAUSE OF OPTIMISM ON TRADE,

THE RISK NOW TO TRADE IS TO THE

DOWNSIDE, IF THE MARKET DOESN'T

REALLY LIKE WHAT COMES OUT OF

TRADE TALKS, I THINK THE

POSITIVE NEWS IS BAKED INTO THE

NUMBERS AND THE RISK NOW IS A

LITTLE BIT TO THE DOWNSIDE.

MARIA: DOWNSIDE.

LET'S TALK ABOUT A RETAIL FOR A

MOMENT, TARGET, COMPANY EXPECTED

TO POST EARNINGS OF 1.52,

REVENUE OF $22.98 BILLION,

KOHL'S, ALSO OUT TODAY IN AN

ABOUT, RETAIL GIANT EXPECTING

REVENUE $6.58 BILLION, 2.18

CENTS, MARK, CHARACTERIZE WHAT

WE HAVE SEEN FROM RETAIL SECTOR

SO FAR AND WHAT YOU MIGHT BE

EXPECTING TODAY AND HOW THE

CONSUMER IS DOING?

>> WELL, FIRST OF ALL, THE

CONSUMER IS DOING GREAT AND WE

DON'T HEAR ENOUGH ABOUT THAT BUT

CONSUMER, HOUSEHOLD DISPOSABLE

INCOME IS UP, STRONG WAGES, THE

DEBT-SERVICE RATIO THAT

HOUSEHOLDS DEAL WITH, THE LOWEST

IN OVER 40 YEARS, CONSUMER

BALANCE SHEETS ARE STRONG AND A

LITTLE BIT OF STOCK MARKET

EFFECT, PEOPLE ARE SAVING AND

ALL IN RETAIL SECTOR AND WHAT WE

ARE SEEING COMPANY BY COMPANY

BASIS, WHO IS EXECUTING, AMAZON

AND WAL-MART.

ARE WE GOING TO HAVE A BIG 3, IS

TARGET GOING TO JOIN THE LIST OR

ARE THEY THE LEADER OF THE ALSO

RED AND THE DETERMINATION IS NOT

RENEW GROWTH, WE KNOW TOP LINE

WILL BE STRONG, WHAT ARE THE

MARGINS, WAGE COST THAT THEY

HAVE TO INCUR HIGH, IS THEIR

PRODUCT MIX HURTING MARGINS, WE

WANT TO SEE WHAT THE

PROFITABILITY IS TO GO ALONG

WITH INCREASED REVENUE.

MARIA: MARK, YOU WANT TO PUT NEW

MONEY TO WORK?

>> IT'S TOUGH, I THINK WE WILL

HAVE POINT TO POINT, WE WILL

WIND UP WITH MID-SINGLE DIGIT

MARKET, A LOT OF VOLATILITY

ALONG THE WAY.

I THINK PEOPLE SHOULD REALIZE

THAT STOCKS ARE FAIRLY VALUED

HERE AND WITH SINGLE-DIGIT

EARNINGS GROWTH FOR THE YEAR,