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In the last happy Monday we Dow that's up almost 430 points why 'cause.
Again everything is taking care of Chris -- and we -- all over the weekend.
Not anything to worry anymore millions on this market can you can really that -- and went along and I think we're.
We're going too far in in one direction at a time Manning went to Florida downside we're going to Florida the -- probably they were trying to find that happy -- and mean what you think.
Market action -- in a volatile market like this is a lot like.
Good thing that used to be on your dad's desk.
With the the floor -- aluminum.
Balls on it hanging by the -- used that you click that thing goes click click.
-- think that's sort of what we're in right now waiting and and it slowly finds the middle but I never slowly finds the middle market it's always going that's kind of what we're doing right now.
The bigger matter is.
This karma that we talk about every day we did at all really hard time.
With foxbusiness.com like karma right now because we're up 420.
Points how we gonna finish the day higher than 428 points in the next hour.
How we're gonna move higher -- What we were at 4:50 earlier this morning right -- I think 450 was our high for the day or something like that at this point and it's all because well the you know use it I.
International Monetary Fund is giving money to the European Union we're -- -- -- -- all these guys out yet again Greece is getting money.
The notion is and you said -- earlier we're filling up the banks were not really going at these kind of question we are bailing out the banks that we are.
Getting money out there liquidity to -- so that they can basically pay their bills and move on without going completely bank.
Now my point today just -- hear me out on this -- on -- I don't think I think a lot of times people get the mistake there.
Get the impression that I believe in bailouts I do not I hate bail outs.
But I want to look at the alternatives and I've yet to find somebody that says look if you let Greece go on there.
And -- Ireland and maybe Italy which would combine those these nations are about a third of the EU.
If you allow those countries to go on their what does that mean I've yet to have somebody tell me this is what it means when that happens I've heard.
All the banks are gonna struggle European banks are gonna lose billions of dollars fine.
That that's a very general answer that doesn't get it done for me I need more deep -- and so that's what I'm looking for.
Because I would much rather on the surface say do that.
No more bailouts and stop kicking the can down the road let's just let them fail.
But I don't wanna say in a little while oh wait a minute and I change your mind that's worse that's the lesser of that that's the worst of the evils I rather go back to bailing them out well.
The fact that it took -- they needed a trillion dollars is something in of itself to say that maybe hate.
There's a bigger issue here that we need a trillion dollars and -- Charles drop out.
Out in Chicago can help us with his vice president association of individual investors.
-- we got to start -- what's going on overseas and what happened were basically given these.
The EU the European Union about one trillion that's with a T dollars to dig themselves out of this hole they created.
We are it's actually what's happening the EU is setting up a separate entity to -- a fun thing.
The US is going to be some slots with -- Europe but it's interesting because trichet the head the EU over and over in Europe.
He's actually betting the -- -- the separate entity so what's happening is the European countries are gonna be money into the separate entity.
But that is then going to loan to the other countries.
And I think what the EU right now is trying to do is preserve confidence.
To actually show they are in charge and actually show they're not allow any.
-- country to go on there and -- Europe but it really shows the difficulty when you have a bunch of different countries each with their own budget.
You try to combine them under one umbrella.
It's not a very easy thing to do and right now we're pretty much an uncharted territory in terms of global economics about.
How this actually plays out and -- implications are.
Charles obviously the markets like this short term I think that there's obviously no arguing that but is this just the short term.
Got a lot better than it was on Friday some of them by a few stocks here or is this more of trying to find where we really belong in this market.
Probably more the latter I mean we definitely had a huge jump at the open and it's curious though because it was solid.
He got in -- right during the first cure three or even formats -- trading today.
They really -- -- big rise unless they happen -- Thursday or Friday and but I think you know the markets are trying to sort things out.
The bull fight of all he's been all is that these governments are going to be asked to -- -- spending.
And -- over the long term having tight fiscal controls is good for the economy.
Over the short term that will restrain spending so it could -- actually be a drag on European growth.
And thereby global growth over the next possibly two to three years depending on how long.
These governments have -- tight -- and the extent to which they -- -- -- So what is it will mean what what did you think then of this trillion dollars is it gonna solve the problem.
And your point is a good one about how they're creating off balance sheet entities.
To do this basically and they're -- dish out the money as needed because the European -- -- -- -- can hold another State's debt and so here we are we're like circumventing the law as distant as Chris said you know.
Bail people out for reasons we're not really sure -- good ones.
Yeah it's good they're doing for the it's that anything really special on -- and I think we'll have the CL's all plays out and I think ECB.
Felt like there are actually in a quarter and they really were out of options side even as far as Thursday they were talking about not doing.
So polite that's it he'll back a few weeks ago there really talking about not giving grief of bailout so they really got a 180.
In a very short period of time and I think get there -- get to the point where they realized they didn't have any options they -- And that's probably what -- least bad option they had at this particular moment when they looked as to what was going on.
Now in a crisis actions are always better than no action.
But will will know we will know years from now whether or not there's the right staff or whether or are they -- just held the line.
And told Greece and Spain attend their own belts and not given them a bail out.
Charles the gun.
Associates an individual investors puts out sentiment survey -- in your most recent survey bullish sentiment -- is declining.
How hard is it to be able to really read these surveys in a market and it is so volatile we've had over the last two or three weeks.
It's very difficult over our what are we trying to become a look at the broader credit -- really been a sign of cautious optimism.
We have actually seen bullish sentiment and above 40% for about five -- -- six weeks so.
Then -- -- their stay a little bit cautious by described as cautious optimism.
A worst thing -- occasions the bonds actually stay about the historical average.
And -- know this week's survey question I'm out investors what industries -- like now.
And even though it's early and this is still a rough as -- -- we are so I am sure a lot of investors actually favor energy.
They're favored commodities but they're equally favoring gold.
And actually see a lot of people respond that either one dividends -- they want cash.
It it's definitely a split and I compared to February -- -- the same question.
It really -- people I want attack I want.
Materials I -- play -- this economic recovery so I -- think at least the initial response and our surveys run from Thursday through one state so.
These these are -- -- getting right now really the first signs of how investors are reacting to Thursday and Friday.
And even to this morning's events that we are seeing a little bit more cautiousness.
Among the part of investors.
Are you seeing -- this whole notion of selling -- way you know this old adage is it's gonna play out here are things different now.
-- still will play out last year -- more of an aberration like huge rally over the summer break I think this is going to be a case the -- summer's going to be much more difficult but it's really interesting if you look the numbers send out.
Jeff -- of the stock trader's almanac actually email me updated numbers on Friday afternoon.
If you -- -- invested in the -- from may through October the historical game is actually.
For -- -- percentage points and now a lot of money.
But still positive -- but I think in this environment if you say -- -- on -- go away why Europe what are your options and when you look at what six month.
Treasury securities are yielding you're really not getting any increase in terms of performance there are you really have to go five -- -- -- Look at junk bonds so you military investor you really don't have a -- options in terms of getting a higher return.
The best strategy might be just not to take as many risk right now -- -- -- more conservative you stock allocations but stay in the markets just right out any volatility.
That we probably will see throughout the summer.
The association individual investors AAI sentiment survey we'll keep our I audit that shows -- to Syria.
They -- and all -- hot blood from these VP by the way -- the association individual investors journal joining us from Chicago got a big show today.
And you got a lot thought well obviously most that is going to be on what's happening overseas.
The Greek contagion it sets it sets up more on what happened last week as well.
On the exhausted.
And he's -- McNeill yeah this.
If you look in the seventies.
-- love the story.
Welcome back foxbusiness.com live -- -- burns -- 411 points on the day obviously.
Markets here in this country enjoying the news they heard over the weekend.
-- about the European bailout and in Europe as well I mean I notice that they -- cac forty in Paris is up over 8%.
Earlier in the day the footsie in the -- in Germany also update Brian Sullivan joins us right now.
He's in Brussels Belgium and -- I guess I'll ask you first of all this from the we've spoken to there in Belgium.
-- this point how did they feel about bailing out -- southern European neighbors.
Well I'd be unfortunate David actresses that I haven't had time to talk of a whole lot of people -- we -- it actually from Greece this morning.
So where we're already been operating on a pretty long day here with that I've had time to talk to a lot of people airports and taxi drivers.
Think that nobody's happy and he -- we -- of course it happens the last few days.
The Greeks were happy because they felt like they were being a little bit run over by Wall Street and -- the bigger European countries.
The people for the bigger European countries were wondering why they had to help out Greece -- they blamed.
For putting itself and its own problems I I guess they do wisdom of the masses is going to be the market she hit on some of the market they just closed Spain up 14%.
France was up 9% Italy -- the -- the data was up about 11% so I guess the the wisdom of crowds says it's a good thing but it's probably just more reflection of the fact that a ton of money.
It's not going to be dump that the problem and it may not solve the long term Chris but at least it will provide a short term boost and as such stocks.
-- but hey Brian you know president thank you for working on Saturday for us because we.
Did Quentin hits and it was it was all great stuff and one of the things we talk -- we -- in Greece is there.
You know how the the people on the ground a very -- all this straight and so in Greece we talked that out is gonna probably be more protest down the line.
You -- do you see stuff like that where you are in Brussels.
You know I don't -- -- here because that Belgium is is sort of you know there's so many different -- you -- outside EC headquarters I mean there's everywhere you look at the different language.
You know -- the Belgians actually have their own debt problems as well that right here -- C headquarters I think it's more of all the politician types.
But I want to go back to your point about Greece though because actually we work yesterday as well.
-- -- -- stuff we're walking around we actually went to a protest yesterday we got the video from that already put it together for a bit later on.
Wasn't violent you notice -- more of a sit down protest.
We did talk there's some people in masks and stuff but that was -- you know Tracy.
Was we walked around town with some of the more student heavy areas you know -- like jeans and a teacher basically because they're not big fans necessarily the Wall Street types.
There was a lot of anti wealth graffiti a lot of anti Wall Street graffiti saw signs that -- the rich you know -- down with Wall Street.
There was also a lot of posters.
Or recruitment to the Communist Marty and Obama -- there's that got small city 68% of the population but their vocal.
They got a lot of money behind them who knows -- comes from.
They're actively recruiting and they're very angry and one ones you know I talked you said you can expect more protests and that they might turn Roth I was just one kid.
You know he had an ax to grind.
But that's what he said he might be one of the guys that are doing it.
Brian you know I know a lot of people in this country are obviously going to be very upset with our tax dollars being used to bail out these European nations.
They have to make.
These austerity changes though in order to have access to any type of a bailout right in the -- -- to continue to follow through with the measures that last week they agreed upon.
But Spain Portugal don't they have to change their ways to get this money.
Just -- that's all no exit.
-- great big degree degree.
The good Greek package was specific -- to packages right there's the 110 billion.
Euro Greek package.
That was one that was sort of forced on Greece if they were able to to push through some of the pension cuts and increase in taxes.
That was one thing in this package this -- park -- nuclear option whatever you wanna call it.
-- generalists are you right where member are -- have to change the way they did business in -- wanted to give -- liquidity to prop up their business maybe they will change later.
But the package that we're talking about today the big news back -- one you know.
That we broke on Fox Business by the -- first on Friday -- reporting from -- Is really just the general liquidity program where you're -- -- -- able to tap your -- nation and I and that bonds.
If needed to prop up sovereign debt and even corporate debt but but I know you're saying Chris.
The 110 billion for Greece that was one it came with conditions this bigger mama whatever you have -- -- little beat up.
It -- general is more of a journalist back and say mom and eight languages I don't they get about nine languages it's not a good thing.
I -- yeah.
-- I don't mean to get enough play without Bryant and a and a -- -- get in the weeds with you here but.
The -- -- of these states European states say they can't hold debt of another state.
So -- -- enough to get the money out they gotta do this like whacking it off balance sheet thing.
And then the money is dispersed from there so we just come balloon go around all sorts of different ways to do is try to get -- -- must think that they're trying too hard.
Who your time of the Maastricht Treaty you know yeah I don't have decided that has.
As well although I've I've actually -- a little more reading on the -- -- you know whatever wanted to in my entire life mentally.
I we did -- thing flying from Athens.
-- from Athens to Brussels this morning on AG and Airways and the guy sitting next to me was actually a member of the European Parliament is the -- is one of the six.
Representatives from the country of Cyprus right.
And we talked about this a little bit and I said well you your parliament you know there's a European Parliament you have a -- -- to veto this can you stop this he said now.
You know he said basically they have very limited power the European Parliament does and that -- -- the finance ministers that we're meeting until according to our source 4 o'clock this morning.
That they're gonna push this through.
On behalf of their own country's right through the finance ministers and that the European Parliament is powerful.
So when you talk about some of these rules right he's constitutional debt to -- rules and you're talking about.
It doesn't sound like there's any governmental officials here.
That is going to be able to stop that.
Least and I that I reminded the poor guy Cyprus that if countries not to be on the hook for about a billion dollars is that we don't have it went well.
Here and it hit it.
You -- your all and thanks Brian -- -- -- jets great stuff those cadets and I didn't want to -- -- Cyprus is all in for a million dollars.
So we got that way -- thanks Ali thanks Brad -- Thanks Brian Sullivan's.
You know going back and well what if he's staying in a hostile.
There in Brussels and guessing probably not probably -- that are combinations but I will say he worked all weekend and he was live yes all we can -- ominous Brian you know what happened last week when everybody really freaked out that sort of buying gold a lot of it James the Georgia joins us right out of founder publisher.
Energy advisor West Palm Beach.
James this is seem to reverse itself a little bit today as people -- into riskier assets and avoid the save stuff what done it.
That trend has got to continue as worries about what's going now at this contagion continue people have to start looking at safety don't -- Absolutely and I mean this has been really what I have been saying for a number of years when -- first predicted that gold would go to -- thousand and then last year 12100.
We've made in new hi recently.
And you know it's all based on -- and the reality is is that investors are coming to the conclusion that the only currency that's not debt backed.
Is actually gold.
And -- that wouldn't surprise me to see.
You know -- swing fifty dollars one way and a hundred dollars and of the dead another way -- on a particular day because of the -- You know reality that's becoming.
He did it under an odd couple where is that one trillion dollars that they're gonna back this coming from as you just mentioned a few moments ago it's really coming.
You know from from -- unknown source.
Yet that the -- you Amy in your notes you said the -- did currency walking it can't be I mean it's not.
Can't be that bad look let's face it we look overseas.
America is -- and better and better every day.
It would keep in mind that you know we -- their power isn't and in Washington right now especially the senate.
They're pushing in order to look and review -- the balance sheet.
And the conduct of the Federal Reserve and the reality of it is is that.
You know we get to look if we got to look at the Federal Reserve's balance sheet we would find out that it's been.
You know multiplied.
Literally out of fully if you know.
You added the air -- invented money.
And when you -- your currency by you know printing and and establishing.
-- new money out of thin air.
You really put yourself in -- between a rock and a hard place that eventually.
You know they that in the -- can -- be you know he would be paid and unfortunately that's what I say you can't grow this economy.
On marginal rates of growth of three or 4%.
And hope to overcome this tremendous amount of liquidity and and money that's been created at a full it enough.
-- air and there are other things that we have to worry about we have no besides Spain and Portugal.
We have a declining.
And rescue your bubble that's developing in China.
And you know our economy you know -- some better better numbers but nowhere near enough to salvage.
You know and overcome the amount -- what we you know wealth creation that's who had been made out of thin -- You know it's do you -- -- -- mentioning your notes that you know a lot of central banks have been diversifying their reserves into gold but now we also talk we heard -- talk about how.
A lot of countries out there don't know how they're gonna pay for all these you know bailouts that they're involved and is -- the thought that maybe some of these central banks will start selling gold and kind of dumping gold on the open market and -- might have an impact on price.
Well I think that -- if you look that look at England for instance you know they had.
They sold the gold at the bottom of the market and when you start looking at some of these other countries they gold reserves are very very very small.
So the question then becomes what are the largest.
The holders of gold.
Including you know India and and and China and the United States are we gonna sell our gold.
Which is really the only true currency that we have in order to bolster the paper currency.
You know there were holding.
We're -- -- the fact that the Chinese kid at any one moment you know cause a disruption in the end in the dollar.
And that you know they have a bubble that -- what do you think -- value configured to sell their gold or they -- -- -- -- dollars.
Great it'd be interesting and golden and keep keep its ride and certainly keep us talking about for a while James -- yet down in West Palm Beach founder and publisher of golden energy advisor.
Thanks for being on us today -- Thank you very much.
I tell you.
Nominal -- too by the way close to run a 12100 -- an ounce you know figure obviously has not adjusted for inflation but still.
Lot of money I don't I can't -- and it.
I don't know what it is some sort of buy it what.
The golden and sort of think that that's Smart.
Smarter smarter every single day that I thought -- on -- it's a smarter move.
A percentage for what 10% of what you needed -- stop the what -- you -- do with but that's my I agree with you 100%.
But -- too many people out there that don't and that's why is -- -- Floyd I haven't I -- barrel oil and put in my backyard he's gonna tell you why the markets of 412 points and come back.
Alcohol and wishes -- that barrel oil the with the kids in the growth -- -- For twelve that's -- how far we are -- on the day not so good for the -- that we started for 28 okay better than a sharp -- in the edit your 412 points.
You jinxed us though you were like I don't know where we could go over here but let's not really -- This book the truth when you're up 40420.
Points at noon it's very hard to go up.
From there it's already the best thing we've had glasses half and maybe we could have gone at least ten point -- let's move in the market did you have a hard time this went on.
And I would say this Dean Foods is getting clobbered today.
And it's all the government's core milk business good Dean Foods and sausage -- -- think they they are and they were much more in terms of salted meats which you know but -- -- Since gone in the more dairy aisle and both of them I native 42% after earnings down 42% on lower margins in selling price is down and its -- local business.
Ice cream yogurt actually saw improvement in sales -- profit fell short of its already rodeo on downbeat forecast thin ice cream don't get started.
I have to pointed out it's only up about 5%.
But it annoys me Vinny may first quarter loss and did narrow fewer write downs credit loss provisions getting better.
They still ask for another eight point five billion in aid from the government.
You know I just like twenty bucks this weekend so that's -- -- -- -- in the admissible these billions that are going out the door.
Use and you know -- fiscal health is just as important as Fannie -- for an.
It's better -- do you it's one -- ultimately more important Priceline.
Why do you need more stuff.
That's -- we need more stuff.
Does the unifies and didn't stop play was stopped -- Erica well travel is back up because well the European Union estates.
I love this knee jerk reaction step.
All the travel and leisure companies are out today European Union gets big man and so it's safe to go back to the country and actually I go to Greece if I had more than twenty Gaza my pocket right now because it's so cheap and nobody else is going to be there this summer.
Generate financial up all the US financials actually following suit the insurer Genworth the regional -- Morgan Stanley among some of the biggest gainers.
Again all is well on the world so the markets rebounding and you're number one and is actually now the overseas banks -- Banco Santander.
Actually I was watching -- -- morning -- -- one of those losers on the treadmill at 4:30 in the morning watching the European markets those banks society soc gen.
All of them up there on fire again because well everything everything is solved we solved gobble up from -- no more your.
Munitions you -- solid tell -- at the Spanish.
So I guess that whatever indices in Spain as a 14% Santander they the Spanish banks hold all the Portuguese debt.
It is awesome and and what's funny it's funny say that I spoke to some of the Ben -- actually on the floor at that near -- exchange said -- two of his two biggest concerns -- Spain and Portugal.
I'm able to each other stuff right.
-- -- -- Charles Payne is here with us of course the thought of Wall Street strategies and our partner.
On -- company.
London what do you make of -- -- the if we say forget it.
No bailout for Greece no bailout for Spain no bailout for Portugal Ireland Italy whoever else needs it no bail out that's a third.
Of the European economic community right there in terms of GDP.
Into default -- how bad is that for now European banks but also for our banks and just global trade in general well you know.
You look at some of these countries that have had some serious economic issues and in the past -- -- you wonder like Brazil.
-- ten years ago no one thought Brazil will be where they are right now we're South Korea.
You know sometimes you get -- and they have small -- know what -- these sort of massive bailouts in other words countries can fail and actually come back.
It's just the notion -- taking this medicine this.
This the idea of the soft economic landing.
Seems to be so pervasive throughout are our society in Western Europe that.
I don't know in this global competitive -- them and -- that you know will push it off for their pushing it off.
I say we because -- all contributing I think today's a bailout 300 dollars for every man woman and child in America.
It's it's and it's it's I think was not inevitable.
Here's my concern us -- -- -- out to save Greece.
-- -- -- small part of this problem yes Spain Portugal we have -- your issues Italy maybe not so much can they own most of their debt.
But Spain Portugal that is out there these they're bigger issues so this trillion dollars that we spent to -- a small part of the problem.
Could quadruple -- by the time we get to the other hole if it doesn't work the hope is that this trillion dollars.
Saves everybody but apparently I'm not that -- -- that we see and here we tried to save everybody here and it did nothing.
Well you've got the the Ignatius Leo 216 billion -- -- and debt coming up right next few months.
It's is it's just crazy is really -- I mean.
Essentially would just move money around I mean that's all this -- -- -- hanky you know.
Loans and guarantees.
And it's insists it's it's it does seem so irresponsible really -- it's so crazy that.
We'll see what happens and it's amazing that the market actually it is although I've always -- the market itself is it doesn't care regardless of whatever party today -- -- about thing over the.
What that said he had -- you how do you deal with this market because.
You obviously it's gotta be hard to biased stock -- 400 point oh yeah absolutely got -- city itself well -- I can't buy right now do you sell on this little blip up here and what are you looking.
Read what I was saying last week for people to do is you know we just we've just come out of earnings season there -- a lot of companies that you've seen that had really great earnings and they were able to give good guidance those toxic came down in sympathy with this market you know we're pretty good -- I know this morning -- -- would guess.
On the retail side and guess is awful lot from its 52 week.
So even if you chase a little -- I felt like you in new you know you have more room to the -- but you're right it if this is -- -- typical that the may look easy.
Obviously some of -- oil was up -- via the gaps open 400.
You know it's it's tough it's not it's it's not -- market and other people some people were stopped -- last week that it it.
It's if you don't want to.
Deal with that.
Where you -- some money and he is there is no place to park money to -- all -- volatility.
I just don't want to deal with it all wake up in a few months and see them.
That CD EF a good.
You did it in savings account -- and he got -- really -- seven volatility unfortunately here here for what long time in part because we don't know let's thank you thank you.
You know and also listen you know people talk -- -- high frequency trading -- role that plays and it.
I you know I do won't but I do think about the good old days -- invest in the company simply because he thought stock the company is gonna do well.
And now we've gone to a very short term mentality very very very short term.
Tell the world this fix this morning that's your short term Mark Harmon avenue is it just a matter of Howard is all about the end they'll try to one trillion dollar check check of some of the think about this you don't win today -- keep asking why I haven't.
-- for writing all these trillion dollar checks do you like gold.
-- let go longer term I think inflation play those 2000 -- -- 2011 cells you don't know yet you know I think I think you should take physical gold and I'm no word about its ET oh yeah I think people who believe that there that the ETFC now.
I want I would trust anyone -- we get to a point where all this money is worthless and believe me obviously we're heading that direction.
I wouldn't but -- -- ETF earnings guys I'd rather have -- gold -- with me.
So you don't hold it and then like yeah -- -- -- you can get money back on this thing someday we'll gold yes.
-- gold as a parent I mean you know for for goods and services he won't have it go to a store assailants and I've got some gold ET asking him some bread milk.
But I've got to hope that that they get to -- you know -- I don't think -- -- gray -- hit.
That's almost an hour and a ride into town and his horse accident that put us with our other -- slow very they have bag -- hold on a tale of shoes.
Don't all the kids in my family like all the nephews and nieces and cousins every time you get three days and you report card you get this over quality that the US -- the Canadian yeah yeah and so that's and that's -- give them -- And load up on that and you still have that working out.
Normally would -- that -- that was my son.
No I don't -- -- get the company -- -- Allen wanted to.
EU summit on it and letting the pressure is on I have to ask you before we get to you picks what's your thoughts on how the tech markets -- comments.
-- discover what text effective effective down more than their regular markets over the last month because see rotation -- -- ticket to safer havens the Dow was up almost every single week not always the same from that that because.
Ellison had a big move there it's inherently volatile but I still think technology is the place to be one of the pleased to be by the way that's -- this -- yet.
It -- should make everyone upset because it's not part of -- budget.
Can you imagine that I know and looking towards that was in charge of the CBO -- -- it should be of course he changes since -- -- Obama administration output.
I mean this is literally hundreds of billions of dollars that's an Mary sort of the same sort of off balance sheet stuff that.
That -- -- in trouble for.
Really matter anyways is that the federal government doesn't have the balance their budgets -- -- really ever matter.
But that's Singapore and I method doing the exact same thing we're going off balance -- again and was circumventing the rules just to get as many out and I didn't.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The Walter Industries Walter Cole rather WLT.
-- play kind of concert can turn -- That's -- has been terrible.
ISS I integrated silicon cars the it is but you know what.
Great earnings recently earnings estimates about -- the -- trading a lesson two times book.
That's why I've really really think it's going to be 3040%.
This year yet you want about the -- before.
This one we recommended today -- I SSI.
It well done thank you John thanks guys like what's in the water.
-- -- -- on and hot in here.
Tell us that the -- whatever he wanted to lissouba punch you.
Finally they break -- out the we'll be right back -- going to.
I'll punch -- back.
I'm not his -- his -- and the market was up about.
440 points on the Dow were down and -- as well Chris jinxed us.
-- -- We've done a bit that we can make it up I'm kidding and I'm teasing unique in that we get the -- DC right now because Jana partners with the editor -- and his personal finance magazine talk about.
Pretty much what you need to do your own financial home these days right if I had a -- on top -- was just here talking about how it's a tough place to invest.
At the same time though for a long term investor.
Keep your eye on the prize you focus you don't let these little -- -- little gyrations big gyrations and the way right.
That is exactly true any gyrations don't let any generations kept away at a -- to sit back and enjoy him.
Did and you -- -- -- -- a survey -- finances are you finding that more Americans are worried about their finances are more than feel more comfortable now as we kind of build our way out of this recession.
-- the surprising thing -- -- think people were more worried you would think that people would be feeling better about their finances but they weren't.
They were talking about how they were worried they were talking about how some of them many of them -- still struggling.
And -- they were saying that things had gotten worse over the last couple of years.
-- that was really very interesting and I can see you know when things like this -- things like last -- upset with the -- on the you can sort of see why people are thinking that -- you know for ordinary individuals pocketbook issues.
Worries about jobs and things like that are really -- amounts of somebody's worried about losing a job obviously that's gonna affect your perception of how well they're doing.
-- Janet looking at that -- -- excuse me.
We're seeing more and more people come back to the work force -- just a really a high number of folks come back you're dismissed last report -- -- got on Friday.
That would sell me on the surface.
The people are less concerned about losing their jobs that they think that there's a better chance than to find work and that's why they're coming back to the workforce but I guess you're telling me that you most recent survey you're finding the opposite of that.
Well you know it's a timing thing too because as we know the job market tends to be you know the lagging indicator that even -- -- in the midst of -- bull market.
Stock -- as we were over the last year and that and that and that hasn't necessarily been the same in the labor market for the labor market numbers have just started to turn around.
And there's psychological factor here too if people read in the newspapers or hear in the media.
That you know job's the job situation is turning around that may affect their perception and they may become more optimistic.
But certainly over the last couple of years we took our -- was just done a month or so ago.
And what people were saying was that over the last couple of years.
-- worries about losing your job has increased.
Whereas their worries about having too much credit card debt -- -- in the numbers had almost flopped that you know exactly.
So you know again you're looking people are looking at what's been happening over the last couple years in May be some of the new factors haven't been factored in yet.
Again your personal situation how how secure you feel in your own job.
You know what was -- I -- and you survey was that women are more worried than men about and financial help.
I mean I'm not I'm sick to my stomach trying for seven about -- -- know why isn't that.
Well you know that's very interesting I think that women in general.
Tend to be a little more conservative about money either because of I'll worries about.
-- if they lose money will they be able to earn it back I think that's -- worry that they have.
The fact that women statistically tend to be the survivors.
Mortality wise number -- for their money has -- laughs the longer they tend to worry more about making their money last.
Where ads and sometimes they have family situations where they're worried about children as well so it's not just damaged other people who are involved.
And they just tend to be more just more concerned about this men in general and this is from you know past research as well not just our survey.
Tend to be a little more confident about their ability to go out and if something happens to them -- you know they can go out -- they can get another job.
Or they can earn money somewhere they just seem to be more confident about that you thinking why is that in this recession.
And then do seem to have been hit harder in the sense that layoffs have affected them -- war.
And yet women are more nervous about their financial situations it's just that interest -- dichotomy I think.
Janet finally -- when asked about retirement deal we've certainly look at stats over the last few months where.
So many -- such a large percentage of the American data working public they're just not ready for retirement and their retirement nest that is tinier not nonexistent.
Are -- more concerned about that and I'll be taking steps that.
To really shore up our tyrants.
Well you know an -- -- your survey -- which you know people can take on our website at -- Connecticut when her dot com they can take.
A part of the survey and see how they stack up.
But you what is very consistent is we actually gave him a whole list of things that they could potentially worry about he and number one as it was two years ago in their minds at least was having enough money to retire so that really does seem to be consistent theme here.
I think people are.
A more well they're certainly better off in their retirement you know the joke was that the -- that dark humor was.
That you know after that the market meltdown -- 401K plan had turned into a 201 K well now it may be back up with 301 K.
Or three -- -- Bay -- one and a half paying -- things have gotten better.
And I think people are more focused on for -- saving for retirement certainly we see.
A little ratcheting up in the overall savings -- -- they know they've got to pay down debt and focus more on saving.
-- I think that that's something that has kind of gone into our consciousness.
But you know whether.
They're going to come back a water to what extent you know it's it's still.
Still kind of up in the air.
I'm my early work and I've decided I'm just worked into the Green Day.
And thank you so much your being with us as anybody editor itemize their personal finance.
Magazine down in DC.
So I Ivan -- -- some questions asked and some people have to read the responses I asked what everyone thought about the big fat Greek -- -- here we go out I think it's ridiculous that our tax dollars are be are used to bail out socialist Euro countries.
Money -- into the genius I love this too many parasites feeding on a dying carcass at some of poetic.
Lots of people completely a poor the notion of nailing down our European southern -- -- him throw that out there.
Norman -- joins us right now author of wealth management.
New look economies speaking of -- retirees getting ready for retiring from getting your portfolio in order -- welcome to the show.
Hey thanks for having me here now all feel -- it's -- -- -- all the -- we've really been talking about all day the last couple weeks.
So very -- time in this market -- -- come out of recession.
And people are wondering with all these wild swings in all this uncertainty out there one why do with my portfolio.
You might have some answers for people this time right now this is what you need to do.
Well I think I agree Richard Pryor.
Guess I think you got to take the long term view.
The market is volatile so probably continue to be volatile but here's the themes that we're talking to our clients about and it's three things we're talking about the first or taxes.
Inflation and even death.
And elect a topic of taxes one of the things are talking the clients about is let's look at the portfolio let's make sure you have a good asset allocation strategy.
And is at the time to rebalance the portfolio we tend to rebalance our port for client portfolios and an ongoing basis.
And when you look at the fact that taxes are probably going to be going higher.
Isn't it time to sort of take some of those weddings and pay at a lower tax rate.
And secondly isn't time to look at a Roth -- If taxes are really low is this -- time to do a conversion.
So the long term is still the long term what happens week to week is you know not gonna change the strategy.
And the number one question you really gotta ask yourself as an investor do I think things are better in the next five to ten years and we tend to be optimistic we believe in the capital markets.
And -- I gotta tell you norm I don't governor personal finance -- I'm going on fifteen years now.
And the world is entirely different than it was fifteen years ago fifteen years ago you can sit down with your planner.
Asset allocate your portfolio and come back next year you can't do that anymore so how do you define long term is long term Friday.
Or is long term you know once a quarter.
Well I would I've been in the business 25 years and I used to be six to one -- so I'm actually showing you know.
How -- Elway I think they piped up the fact -- -- matter is this if you go back the last 38 years 38 years.
25 days in the market produce 75% of the return.
So you're right on the one hand it is more volatile.
But at the end of the day we can't move in and out of the market to manage risk and you still have to manage risk through diversification.
And yes you do have to talk to your clients far more frequently.
But what are you gonna tell them if the market takes the -- did on Thursday are -- gonna say let's go out of Friday comeback kid and then Monday have a rally like this.
Market volatility doesn't make it easier in any stretch the time the market.
And what I think it's house you.
Is we're used to fifteen years ago.
Maybe -- two -- three different asset classes.
Today in your portfolio you may have to -- ten or twelve different asset classes and you may have to have a larger allocation to fixed income.
So it is different but you still -- believe the markets producer return over the long run.
No I mean you've handled it very well don't though don't kid yourself now.
I think any people -- saying look.
We're gonna see inflation mean it is gonna come to stop might have been actually -- -- -- the following year it will be here how -- protect myself from.
Well that's it's a great point you know the interesting thing is if you go back about forty years or so the average inflation rate has been between Ford -- a half percent.
The last two years we've actually had low inflation so dilemma you have is the following.
You have had fixed interest rates that have been below the inflation rate for the last several years so on the one hand you want to be safe.
Because you don't want to risk too much money in the market.
But you've got to meet if you're gonna have any kind of dignified retirement you've got to earn more than four to four and a half percent of your portfolio.
So the thing you got to be careful of and this is what I really get concerned about.
Is people are chasing yields -- they don't like the yields on the short end of the curve.
So they want -- coupon and they go out longer and longer so the first lesson is if you believe inflation is around the corner or it's always going to be there.
You've got to shorten up on your yields and keep your bond portfolio probably 23 years no longer than that because if inflation -- you want to catch that.
The second thing is you can use a great asset class like tips treasury inflation protected bonds.
Those are bonds that are guaranteed by the US government we still think they're very safe.
And they go up and down based on the CPI each year there -- -- one asset class they're a little trick here to buy individually.
Because generations tend to be long and we normally recommend you buy that in a fun.
But if you shorten up your bonds and if you if you invest in tips you should be fairly well poised that if inflation comes back.
To a higher interest rates the capture those rates.
You know it's been very hard to be a financial planner would zero interest rates need to be a lot easier for us -- we had some -- -- -- a lot easier.
DC would stay out of our way no harm no arm and they'll thank you so much -- -- us author of wealth management new economy out Chicago.
And I plan in DC makes the rules up as they go but apparently you're supposed to figure that out and you know I can't decide still whether or not -- should die this year because if there's going to be estate -- who knows -- I -- after knocking off more than I'm not planning on you know the whole thing -- -- time and not planning on -- -- 65 anyways there's no way it -- in real.
Explosive -- gonna raise at a time aged 67 is no way utility under.
Double down on the on -- on now.
Yeah haven't really good active and stuff these days thrust him two thirds.
On two -- that way they're not having really good active stuff these days I sort of like it's it's okay but it's not really good night.
Trust them now okay that it wants.
And ask you call my mom and dad and I haven't gotten I'll tell me what little old that little hole.
The heat -- old particularly Tracy you know all of body -- an evil man you know lead back in 1974 love him when he tried -- let's jump Snake River canyon in the rockets cycle.
That did there is a good look at it right there.
They can you imagine those meetings with the engineers.
Evils like so this thing's gonna get -- side right well yes you kidding me.
No problem we've we've tested this thing and retested it calibrated to re calibrated it's gonna happen when I get the aside that I did just that.
I crash you know they die so tingles up the parachute malfunctions he crashes doesn't quite make it into the Snake River thank goodness this who have died he -- around.
You he has minor injuries especially compared to all the other broken bones he had so but he doesn't make -- it -- son Robbie can evil.
Says forty some odd years later what would that be 46 years later says hi -- -- -- Snake River -- -- July 4 weekend.
Still needs to get.
I -- of the state Snake River foundation or something like that you can do it but.
I say strapped into a rocket -- him -- see what happens.
And what's gonna Wear the Captain America suit.
But the big -- he's gonna handle the big collar and having just like his dad and Austin that's -- stupid -- ever -- I can't -- -- I cannot wait Mitch and stupid error.
And you have one of those toys that you wind up and you let it go right evil and -- -- we.
For some reason that I'm gonna guess it fell off -- truck -- -- Tynes got -- when I was a kid we had bad motorcycle.
You stepped DA did the little thing you know it is.
It is a button but maybe -- blocking it an edge using had to push -- -- -- all the way back home plug it in the next four hours.
Into the Conan.
-- -- -- -- -- -- -- dot com live continues Chris cutter Tracy -- -- 3099.
Points on the day what caught your -- this morning Tracy it was a little.
Not very into the Supreme Court nomination from.
Nominated President Obama announced this morning.
I had a few issues that concerns me the first of course is that she was never judge says she never there's -- rulings if he had no president of her back cases we don't know.
I think actually this content out to be a good thing I keep -- they -- forty Supreme Court justices is is that never sat on the bench so this is not unheard of -- good thing because when we go through the process you can ask her opinion on stuff and she can't just say.
Defer to my case XY and Z she's gonna have to give you her full blown -- intend may might get some information the biggest thing that caught my dad though was the whole.
Religious now make up that of our Supreme Court and and I it sounds good joke but now it's going to be three Jews and Catholics and so where is the Protestant where is -- is -- and we have issues that come up.
That our religious based prayer in school is the biggest one of them things like that so.
Three Jews and Catholics welcome -- and what happens.
Whereas the Buddhist where is the.
He we've added -- -- and -- well we've had an episcopalian they should be a Protestant amid the stock market it is an -- Muslim.
Well I mean that's good must ask Maine and yeah isn't -- isn't bigger concern is that this woman is young she's fifty she will probably served for the next 25 years so this is it.
Season then -- going nowhere.
Just -- joins us right now -- and Wall Street Journal on this very subject in -- -- -- let's start with that then.
All what do you make now all of if indeed.
Miss Kagan is confirmed that the makeup of this court and -- and religious standpoint.
Well sure they'll be three Jews and six Catholics on the court.
But as we've seen the court's decisions in recent years religion has not been a proxy for any particular.
Point of view so I don't think we can.
We can say that that that is the courts have somehow been handicapped in making decisions about two.
Separation of powers or antitrust law or any of the other questions that -- likely.
-- so then let's let's back up what do you think of his nomination.
Well it's not surprising solicitor general is a position that's often called the tenth justice.
Many members many people held that position -- gone on to the court.
Generally have to be a pretty sharp lawyer to peaceful estrogen on anyone who whistles are generals always on a short list -- so it's not.
A huge surprise we expected last year that you might be appointed -- that it's coming this -- -- A tremendous.
She's someone who comes to the position as you pointed out without a long record on the bench and -- none should -- never judged.
And in some ways that's similar to.
The Chief Justice John Roberts like.
John Roberts she was nominated at the tail end of the Clinton administration for a judgeship and the Republicans denied that.
John Roberts have been nominated detail under the prior bush administration for the same seat on the court and was denied that by the Democrats when they held -- it.
So both of them.
Avoided having ten years on the bench where they couldn't write a lot of opinions that might -- controversy.
Robert did get appointed ultimately appeals court a couple of years but basically did not happen on record.
Guess at what he had to think that'll affect the confirmation process the fact that she doesn't have -- event's timing how will that make it different.
Well there will be less they'll be fewer opinions to pick apart and criticize if you were inclined to oppose her.
I don't think though that it will lead to particularly more illuminating confirmation hearing simply because.
Any legal questions she's passed.
Be reflexive answer will likely be.
To speak what the current.
Status of the law is knows what the Supreme Court all -- -- set about it and say.
I can't really go any further because there might be related to issue that comes -- for the court's future.
I mean she's gonna get through we know that we know this is going to be okay.
And it will say this to president Obama's credit the -- -- com constitutional law right no one knows more about this stuff.
Then I would say President Obama double our past president so he's creating his own little Supreme Court here that it you know in his world is a little utopia -- Who do you think is next in line because he's got room for two more.
Just elaborate about -- a bit.
Not only did he teach constitutional law he taught at the University of Chicago where she was a -- so.
So he knows her going back to the the early ninety's when it -- taught at that promise law school also is.
It is -- he's picking someone based solely on her paper resume lemon who he's known it.
Kept in the same circles went over the past couple decades.
As far as future nominations well you know there's been a lot of variables that no one no one else -- is giving any signal that -- eager to leave if they do.
I think one thing is probably pretty clear we won't be looking at the same mix of candidates to what were passed over -- -- indicated -- all of them aren't there late fifties and there's now pretty much expectation on both Republicans and Democrats they're not -- -- -- people world sixty that.
Just what do you know about Elena Kagan says of her stance on a lot of different things -- -- middle of the road -- she's probably more astonishing what's little left but how far left would she be.
Well I think -- mean she's been a sort of prominent.
Democratic lawyer and -- she comes from.
Democratic part of the country New York City -- worked for a democratic politicians and she was young woman.
From time to time.
Nothing particularly extraordinary.
You know that she worked for him.
Michael dukakis' democratic presidential nominee he worked for local congresswoman.
So I don't think we -- this year -- certainly not a conservative.
She was flawed and probably within the spectrum you know.
You know but ones who are more pragmatic than ideological looking at her career as someone who.
Worked in government and then -- contentious so law school.
In some ways it is it made -- president.
Who sees himself as a conciliator even though it is.
He sees himself was one and he was able to get elected president of Harvard Law School like making a -- rather -- the -- or you -- be -- street journal there.
They -- coalition the conservative students.
-- Did someone of the same thing Harvard as -- -- -- the Harvard Law School reaching out to conservative faculty members -- she herself.
Would would fall on most issues on the liberal side of -- line.
Sitting near you not you think -- she's gonna rock the boat at all I mean if she does she become the counter to -- John Roberts or is that too extreme.
Well I think that in the short term the Supreme Court is going to -- to the right because of its internal dynamics justice John Paul Stevens who is retiring.
Is the senior member of the court and so when he is on the opposite side from the Chief Justice.
That makes him.
In charge of -- opinions and counting votes and so forth so when he retires.
That means that Elena Kagan will be the most junior justice -- to speak laugh but there conferences the one who has no.
Assignment tower over writing opinions.
-- liberals on the court present she should join the they think three.
When they are able to lord Justice Kennedy who is generally conservative occasionally departs from the right to -- liberals on some topics.
When they on -- -- divisive issues.
For a group of five Justice Kennedy will be the senior justice and we won driving the car rather than justice -- and so.
That is likely to.
Bring the court somewhat more to the right that it would have been before and that's totally apart from literally taken a leave -- -- a particular issue longer term -- This is really the first time that she will be a position where she has to speak her own voice and dean professor -- -- She's she's really not have the chance to to blossom so should be interesting fifty years or whatever.
Exactly -- -- here.
Yes thank you so much that's rated site from my -- but just -- and for a -- Wall Street Journal joining us on Elena Kagan president Obama's pick.
For the Supreme Court that's gonna wrap it up for us department work they've done this little -- with three quick -- thinks it still -- -- access from the word go -- at knife point.
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