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But at foxbusiness.com live Tracy Byrnes Chris cutter happy Monday were up seventeen points.
We got to go out to Jeff Flock into triple before we -- so I did you have been the -- -- was all outstanding.
So they -- here to -- only here on Friday you went with.
A bunch of people from here actually yet.
-- and it got good seats talent.
Really good seats the CEO took up to campus having to exports for a lot of years and it was a lot light.
NASCAR was twenty years ago in which the CEO all the cowboys the bull owners and handlers.
They basically all focused in -- -- -- Q let me tell you about my sport let me show you what's going on -- very open to it.
We were standing right next to the cowboys running and now in the bulls you know he's.
It was amazing we are literally standing right next to a when they released and -- up.
-- going to her.
And -- seriously -- a few bumps and bruises and people Olympia JB -- was bad guys I was here he was all banged up at the end of an -- is recovering from previous injuries but it was a lot of fun and he's imagine Madison Square Garden.
I think a picture of you know all the dirt everything -- and a the banners for the Rangers in the back.
Thank you very dichotomy is Madison Square Garden known for the Rangers in the Nixon boxing.
He even cycling throughout the year -- all show concerts.
And then on the sudden here -- -- at the rodeo dirt floor and everything was great it's a lot of fun but three days sold out and that's where I now I don't know not if you -- -- -- one of those things it is like -- twenty years ago it's picking up steam.
And they want -- want to know about it and you know they're moving forward to a lot of -- Anchorage negotiate.
I'm gonna do it next year and I'm having the kids.
You should you definitely I -- I know they love when people get.
Thrown -- -- -- and I mean it's just like after dinner binding.
And that being said we get to -- -- to Detroit Jeff Flock is out there didn't 2010.
American international auto show I don't know how you keep getting -- death but you have I know you -- down -- earlier are.
You haven't quite and so -- -- out there.
Well yes now he's talking to someone almost as exciting as -- -- anti Pelosi is perhaps you see on our.
I don't want equality dog and pony show that might be in politic.
But it isn't it.
Congressional delegation certainly delegation washing also some senators tears -- -- -- -- Bryon -- out there.
And I see John dingle.
-- it's hard to stay through the crowd here but he's on crutches Alan Mulally -- are back to -- -- back to us that he talks to speaker Pelosi.
And they have been touring all the exhibits today they started at General Motors this morning.
Speaker Pelosi was -- holt I'll look at it that they went over to Chrysler had who worked with Sergio Marchionne they're now here at Ford of course they have a little less influence here.
At Ford but don't have a -- company they do have a piece of the other two companies so there you go to great day for -- by the way just as an FYI.
But they're surrounded.
Her surrounding I should say -- you can't see it is the new.
Ford Focus which was introduced today.
Ford Fusion today one North American car of the year twenty to have it at the Ford transit connect to -- won truck of the year.
Only the second time the same auto makers won both awards.
They had stiff foreign competition so.
Good news report what Alan Mulally is telling speaker Pelosi right now maybe some tips on how to run a park.
You can't -- -- you have -- you categorize this.
Are characterized thank you -- this.
Auto show compare to previous years in New Hampshire ended the mood is a lot better than it was last year but.
We see more coming out of this one last concept cars more -- real applicable stuff and short term stuff.
I think that's a good observation fewer concept car certainly this year a lot of -- time to throw spaghetti at the wall.
And see what stock.
This year there's focus on what are things that we're gonna make money on.
Obviously the the focus of their behind -- they have high hopes for that car it's kind of a world car -- they hope will be sold all around the world.
So yeah I I think.
It's fair to say that there's there's a lot more serious stuff going on -- a much better mood this year than last year last year was not a happy time.
I -- Detroit and and -- -- gonna get a clear winner forward.
Clearly is is -- leading the -- And a lot of makers with some good stuff but that's coming out.
You know -- and it's not often we see the house speaker this DOT secretary Ray LaHood at an auto show.
How does that -- the atmosphere at all.
Well you know we've had politicians here the last three years is funny Bob and I were talking.
The two years ago we had presidential candidates this is a big deal here.
Last year we can't -- worker hear the senator from Tennessee who was that famously against the bailout everybody wondered if somebody was -- lynch him.
When -- -- man and now this year we have people who actually have an investment here.
As to say members of congress that government.
It's got 60% of GM.
Don't have anything in for bill like -- that maybe they're picking up some tips.
-- -- banks have appreciated.
-- guys Jeff Flock is at the auto show.
He's going to be there for the next two weeks to two week long.
Processing already had a big surprise.
I'm just surprised that Ford took on the car of the year and it struck a year only I think the third time that's happened in seventeen years so third time in seventeen years gradually as the Ford Ford just keeps winning.
And GM and Chrysler keep having around.
And that Ford Fusion it just keeps I mean it's not and that it.
Not gotten into the record books and so what it's doing -- lots of people actually very -- in that car and that whole notion of the electric car in -- off.
I'm very anxious to see how what comes out of it with that that we talked before about the whole notion electric car I'd be the first -- for -- -- -- On -- who was I thinking you look at the notion of electric car talk about concept car that was always years down the road I think in this particular ought to feel maybe more so than to receive in the past it's not -- down but it can't be it has to be right around the corner and I think that that is one of the differences.
Have -- joins us right now sealed up cornerstone wealth management.
David -- what do you make of this market going into 2010.
We are sort of all right we're weekend people are starting to put their strategies to the test last week.
Felt like a little bit of -- putting your.
You're big toe in the water.
Is that the sense you got -- and what is what is your strategy for 2010.
Playing as we look at 2000 -- the minute this is just a cyclical bull run inside of -- secular bear market that you started back -- -- march ninth look 2009.
Last week with a great week hitting some new 52 week highs in the market.
Actually believe this market is going to continue to climb during the first possibly throughout the second quarter of 2010.
As you look at that that the key with.
The that the climb over the next six months or so.
Is really more about the process over the opinion or the attitude because we'll have to watch the velocity -- how high how fast.
The market goes because ultimately our outlook for 2010 at that point -- gonna be it at a tipping point -- fifteen year.
Where the market does a very sharp turn and we start to see that next 2540%.
Inside the mark as well all that's gonna take place somewhere -- point ten.
You know you know it's interesting David because you say that earnings will rise because of cost cutting measures from 2009 you're basically saying still know top line growth.
Right right you know as we look at this.
Earnings earnings are gonna write his exactly cost cutting all those costs cutting -- of last year are staying in place for 2010.
And then also.
Unemployment unemployment going to stay high employers are not hiring back that quick to hire back this is not anywhere.
Remotely close or looking like any type a V shape economic recovery at best it looks like an -- and does not have that -- Do one of these side double dip recession to get a best it would be a flat line.
So because of that that's where the earnings will continue to rise but again the sustainability of this and then as government money starts to.
Come out of this this some.
That -- you'll really be put it to the test it's in the second half.
I was reading where you -- were you really believe we're gonna have it when all's said and done -- thirty to 50% correction that really takes is down.
-- maybe not the last march lows but certainly -- lows that we saw it when the fall of 2008.
Wouldn't you say.
Yeah I think on and it is pretty his seat of that did you look at it.
-- be -- today is really nothing more being realistic about what's going on around us.
And as we entered this year.
Think about where that last market crash in 08 we had very high mortgage resets in the summer of 2008.
Which in catapulted of those this catastrophic losses September October.
Those mortgage resets are going to be dwarfed which might -- has been dubbed the mortgage Armageddon which actually starts next month.
So as we start this new cycle of mortgage reset to record high levels for extended period of time throughout this year.
We're gonna have a large number of consumers that five years ago got into these mortgages it yet fixed rates of 3% they really couldn't even afford that.
As long term rates continue to rise this year like we think that they will -- we think they're gonna about three fourths of a point or so this year and these mortgages reset.
These people definitely can't afford these escalated payments and that's assuming that they haven't lost their job and with 1010% unemployment.
For the people they had shaky credit five years ago those are typically the people that lose their jobs first anyhow and this type of economic pull back so.
That's going to be a major force and what that does that course ripples into the -- market now of course I don't actually believe the housing market got a bottom -- 2010 I think it's gonna bottom somewhere and when he twelve.
But we're gonna have that long slide down its -- kids.
Starter -- David what's interesting though is that yet with all that you still like US large cap equity -- still like the US equity market.
Enjoy L -- just hit a fifteen month high banks to record demand from China so I'm not sure how the two work together.
Well again a great question because again being bearish day just be realistic with -- around.
In our environment.
We redeployed out of cash we of course we have -- -- -- -- close to cash.
Prior to the crash.
We're redeployed April 6 of 2009.
Taking huge -- and energy.
And then again at summit technology and in broad basing and equities as we go on the 2010.
We've continued those so.
Again because we're very very bullish short term on equities.
And again energy were.
We're very bullish energy right now and we have been since April 6 of last year it's gonna continue to rise we still have a target price about nine dollars a barrel on oil.
That we believe it's going to hit.
This year is the tipping point.
Short term bullish -- -- cyclical bull market inside of a secular bear this in the eleventh year of this bear market.
It's also just -- the second year the financial crisis were just getting started it's gonna take about ten to fifteen years to delete the leverage out of this mess.
You have to take advantage of any of these market -- why they come.
They also have to have that the process and the discipline to get out that way and hang on your money as well and -- you thinking gold at the end of the year ended 2010 but not not until then.
-- right you know like gold gold funny one -- Suisse lower gold position significantly at the end of last year just couple weeks ago.
Really thinking in the next six months.
As the perception.
Of the economy continues to rise globally.
We think we're gonna have some strength in the dollar.
I don't believe that's going to be a short term phenomenon I think it's -- -- really last over next few months.
For some dollar strength that's gonna hurt goal however since they're able lot of demand for -- I really think -- can become a flat line.
The first half of the year and might.
Gain a lot of ground in the second half as as the economy becomes more clear in the -- first turn the other way.
Honestly for investors today.
To two things that take away about one.
Short term very bullish and equity just make sure you had your exit strategy in place.
Than the other piece of that is is we sold out of all fixed income on December 28.
I I really believe in the first half -- -- ten the most systemic -- risk exists in the bond market.
That's not the -- -- money in stocks to have that portion report oil and cash.
-- you're worried about interest rate risk I also worried that inflation at all.
-- -- at the funny when I -- people talk about inflation.
I think we're gonna see inflation continue again and -- energy and and health care were to see it in food because of course -- highly tied to oil.
So we're gonna see some of that fair overall although inflation now not worried about inflation at all as a matter of fact are more extended outlook.
Going our next 510 to eight years.
I still have my fingers crossed that we don't cross deflation.
I think deflation is definitely on the table it's -- likely scenario.
Possibly the only thing that could.
Fix what's going on it's it's so ugly nobody really wants that and because of that no inflation risks.
Do -- hyper inflation still on the table to I think -- like eight years out.
Re not married David hefty CEO of corners -- -- wealth management absent all learning Indiana thanks so much for joining us.
Thanks David hey you know I was reading and you mention that the -- -- 13 time in seventeen years and so the Ford Fusion beat out some pretty decent cars and I'm gonna have to tell you -- for go to break.
The Buick LaCrosse and the Volkswagen Golf GTI.
While the transit connect that's the truck that one -- -- shorter than a few agent edged out the -- equinox and the Subaru Outback that.
That's a big deal that's a big -- for an hour as well.
-- done for just continues to win -- just continue to get it done and they continue to look back and review here in General Motors and Chrysler and -- this is the ideal for them with Fiat in their answers -- Marchionne yes.
-- and -- focuses on small cars but with the -- -- table and they do it quickly enough.
And get those cars and those products and and -- quickly enough to keep the company and the mustang.
All of that mustang if -- -- tough sell I will be right back don't go anywhere he.
-- so all of top no it's not just you break your nails when you change tee time.
-- so angry trees right now -- certainly.
You say you know what.
-- those who want to show you know that.
It's always always on it -- he's always freezing that was -- in the air conditioning but it is it's a little rule is it's a little warmer today.
It is -- -- Iverson joins -- right now in any comments live from Los Angeles where the weather's mobile expert at the Pentagon and you know it in June -- don't care.
Yeah with overcast for about six weeks don't yet.
Maybe eight weeks in a bad year eight weeks -- video -- you you'll take it you'd still doable.
Com one thing that I don't understand and down once you explain this yes closed Google tax that everybody out there that may not be aware of it.
France is proposing that they that -- tax Google for every ad -- do that or originated in inference is that correct.
That is the proposal on the table in -- -- you know everyone is trying to figure out how to monetize Internet traffic these days from web sites like Twitter and I supposed the French government is no different.
Is this legal.
Is -- illegal international law what law would even up and BL I guess what jurisdiction would would they have over.
Well that remains to be seen certainly the details haven't been fleshed out and and is not law currently.
But certainly one of the main problems here that might be a snag is the jurisdictional issue.
The fact remains that jurisdiction and e-commerce matters.
There is still not settled two with respect to United States law or international off for that matter so the question would remain as.
Where does the activity take place where does -- taxable -- take place when an Internet user in France clicks upon key Google.
-- and this and people have been trying to figure out how to do this for years now our economy in particular is.
Pretty it desperate I got to believe this is coming because they're looking for ways to raise money.
What would be the right way to tax transactions on the web.
Well certainly I think he would wanna focus on an actual commercial transaction that is an actual purchase what France is considering doing it simply -- and Internet activity that is eight click on an Internet advertisement.
I suppose in comparison would be charging attacks for someone -- need a television commercial and so it's certainly.
AB -- new way at looking as taxing e-commerce and again it remains to be seen how it's implemented I certainly Percy a lot of legal issues one legal issue failed to mention earlier was.
How is the European Union gonna look at this how is it gonna be implemented.
There is also an issue of when you're taxiing.
On Internet advertisements.
There is a real issue with regard to legitimate clicks.
Robot programs out there that click on ads for a variety of -- various reasons you can have technical snafus like double clicks on an -- When that what happened.
Who -- would they be taxed twice you'd have to set up some sort of auditing procedure to make sure the clintons were actually legitimate clicks so there is a lot of legal problems with this there are a lot of technological issues and there are some marketing problems with that.
But he you've got to believe that the advertisers are completely against this idea because well I'm just not gonna click on your -- been if I'm gonna get charged I'm not taken it out.
Well certainly that would be concerned that remains -- -- -- who will bear the cost of this happens will it be Google or will be passed along to their advertisers.
Certainly there might be an incentive for.
Folks inside of France to Rick really click on these ads if for no other reason than to drive up tax revenue within France.
-- thing and I don't get about the stories are gonna use it's it seems like a drop in the bucket estimated twenty million dollars per year it sounds like a very small amount of money.
But -- -- use it's up prop up the ailing music industry.
He had the justification for this seems -- somewhat odd you know.
France has so.
In the country of France the judiciary and the lawyers have taken on Google.
With respect to.
Intellectual property issues.
There is a certain antipathy towards Google with respect to.
Google's providing access to free content.
Very controversial issue in France's Google's plans to digitize.
Would -- and make it available on line.
That -- some capacity for free.
So you know this isn't the first time Google's run into legal issues within the country of France.
-- one of the interesting things is or whether or not other countries will take up France's -- here.
Is this going to lead to.
Some sort of Internet protectionism among countries.
So far the Internet has largely been unregulated.
There's certainly no regulatory body in the United States and internationally the same.
Are we gonna start closing down ranks and fighting for territory in -- Internet and the Internet world that is one of the interest in aspects of this.
Eric we gotta run but if you're -- Internet and e-commerce law expert -- anticipating.
Lots of work I got to believe in the coming years months.
Otherwise one I suppose would not become an Internet and common -- experts.
-- -- -- you gonna be very busy acts Iverson Internet and e-commerce -- -- out an LA thank you so much for being with us.
Thank you for having me thank you -- good stuff students in the -- -- -- keep an eye on that that's coming.
You got kids coming I know it is but again I exit the race more tax and and -- I'm in the way they're doing it I think you're right it's almost impossible least it seems that way from now that's why I think it might be a little ways down the road.
We're up sixteen points on a market that's about down points since he started because one tournament -- -- -- c'mon that's -- -- -- caught.
-- Not apple especially because I know this affects you -- like what happened for lunch.
So apparently this is just -- -- right now -- plan to push for 25%.
Reduction in -- for salt.
-- -- all food all we already had the what was it -- the oil situation trans fat.
-- now we're doing -- so this is everything from bread to bacon.
Can you -- was taken disposed one of the hottest items this year most.
It now most drastic reductions are going to be in cereals pretzels chips vegetable canned vegetables canned vegetables on site.
-- -- a -- like you know I don't know.
In order for the city to cut down on this you're gonna have to have their people who supply you your goods.
Cut down on -- to see the products using your food so now this becomes.
-- indirectly it becomes a national.
No question it's a big issue it's -- local regulation like that it's a big issue so you know it can't -- that if a company wants a sign on to do this can be.
Reduced by point 5% they have -- 2014 to actually enacted.
PepsiCo says they're gonna start dropping the funnier -- did -- and this is I think what the tax -- and if your company that your restaurant tour whenever you're in the city and it's also of course because.
Well fat nation.
They say that you should take in about 23 -- handwritten.
Milligrams of salt daily the average is at 3400 at some -- a thousand milligrams more.
It's a -- when he can get -- -- on the morning.
-- so much salt we really don't know it that we don't know it yelling you know it.
On the what you're when you visit your parents and both your mother and your father had health issues -- the point where they can at any salt.
Or any sugar -- any fatter anything in their diet and you go to their house and you.
You know it literally everything tastes like sand in literally and that's because they say -- -- is no sugar no fat -- really has.
Some in the casino that I think the bigger problem is that so many fat free low cal products.
He's good because in the salt in them will the vote yes so we took over email my year over.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Off the charts it's amazing -- -- be careful but then again.
Mean I want my money salt his ability well that's an aggressive should we all have to decrease our -- and take -- -- 5%.
Maybe we'll see what if I'm healthy we got a lot still to go here we get -- we gotta talk about all kinds of in Charles Payne.
In the evening that's all -- SA tells me it's coming up -- the sending us that you're not going.
-- next -- is not a lot hotter -- Tracy has not been -- obsessed with -- since the scorpions came out of black -- album back in 1983.
She has just been fired up about it if it's not gold in zinc if it's not think it's molybdenum.
It's not -- -- -- the -- you know it's aluminum it's something that doesn't our -- -- Nike and all over the place -- All right Condoleezza Rice and she's co-founder and managing director -- acting global an editor of the industrial blog metal miners who doesn't -- it to about -- herself.
Police everybody's been talking about gold dancing lessons beginning -- time but.
So -- -- -- have been forgotten or at least not talk about as much you think that's in the state.
I do now and and we're not a big fan of gold I think it's kind of well it is something all of the market is taping it you can only Wear their blanket and therefore I don't know a lot with -- I think some the other precious metals are a little more interesting right now and so.
And if you want an Atlantic state -- -- is one that.
That we're tracking and we think it's little more -- just saying it's not one that is commonly talked about but it's one that has a lot of interesting implications.
First stuff it's highly non substitute -- -- -- and -- applications switches to reduce.
Nitrogen oxide in tailpipe emissions.
And those regulations just came on stream this year and 2010.
Thirteen states are having reduced nitrogen oxide emissions and only -- -- can do that how do you.
Player not -- like -- and is there is there a particular miners at one company that really has a global stranglehold on the market.
While the country of South Africa that has the global -- -- home.
There's a few friends there.
Division of Anglo American Anglo platinum.
Another company called in -- platinum.
Our major producers that's probably the only way to play from that from a trading perspective although that may be added in the exchange traded fund.
A lot of them -- adding new precious -- with there with their product next.
Can you talk a little big picture though before we dig more into the different metals why have they been on a terror because as -- is even -- -- -- -- may have been on a hair -- came in particular they have.
-- big story this year with -- why what's gone on.
I think there's a lot of factors going on I think a lot of it's already happened -- but I think a lot more is going to happen in 2010.
I think -- a couple of things one -- can give a market that's kind of feeding on itself with any bit of good news from China.
Any good economic indicators.
Is causing money that get poured into a lot of these funds and -- the money's coming in primarily.
Because people are looking for asset classes that classes that they can invest in.
They're not you know there's still moving and found the hoard money the herd mentality and her -- -- moved into commodities.
So as the dollar has been you basically low.
And equities have gone up so to have commodities and I think that's a large part of the bull run of that I do.
Think there has been some upbeat economic information it's -- kind of factored into the.
But he -- I -- slip.
Okay here's why I get confused why am confused about it because things like copper and steel.
Use in home building.
Used in well the automotive industry and both of those are completely ailing these days in yet these metals keep going up.
Right so I think all -- -- separately if it all China's -- I think so in.
No I I think a lot of it is China.
Especially -- an -- stimulus programs that were actually used for infrastructure.
And other -- economic development a bit lots of car -- incentives.
So a lot of that material was used in China and I think the other thing -- a lot of cheap money in the form of loans went to.
Producers in China steel producers.
Not so much copper that covers -- in -- deficit situation for the supply demand market for copper is sort of more in balance.
Which is causing that run up but then I think the other factor you have -- The billions of dollars that are pouring into the metal traded exchange traded funds and for which koppers pretty much and all of those months and so that's where you're seeing some of that -- But -- don't think -- gonna crash or anything like that.
Still -- different story that still at the different story I think here.
I you have rising input costs the iron ore and -- coking coal again fueled by China's demand has that started.
To peak you had a lot of capacity come off line in the United States and in Western Europe and elsewhere.
That's so much in China he but that has impacted pricing as well I think the US market is very much.
I think the key primary producers are very much attuned to where the demand situation is and there.
Adding back capacity very strategically.
-- I got about literally ten seconds I didn't wanna ask you this what looks a lot of the scrap market and how important is that as the leading to -- any indicator for the entire economy.
That's a great question well Alan Greenspan of course in the big -- A -- economic indicator -- and that thinking at that really indicated a lot of where things are going if you look at for 2009.
Prices have definitely come up but it's still kind of wobbly so maybe I think in October it was November came down a little bit.
December it you know kind of hovering around having -- -- around two and fifty dollars a ton.
I think that's an interesting indicator and that's kind of historically.
It's evidence historically high this high comparison to where economic activity it's been for the last eighteen months though.
I think it's an indicator still gonna go up again other than my costs and for the the new course -- the well that's one of their costs back.
Lisa we gotta run but quickly one -- ETS an individual stocks.
-- -- -- -- -- Lisa rice -- in -- managing director of -- in global an editor of industry the industry blog metal miner which.
I might actually become like a new fan.
Thanks -- because I am I am -- In law are upset they didn't I was just flat the F the last behind you -- that flatten back to stones and whatnot and -- gold I'm -- -- in and still very -- -- cleared up a lot because.
And rodeo -- you -- -- -- They haven't got to persevere had a spell it then you can invest and in surprise wasn't Rhodesia which is where that is -- where it was from the Seattle anyway guys in the general area.
-- looks at what's moving the markets were up what 21 points right now you have an idea I.
You believe or not outcome is one of the Dow's biggest movers today it was almost 3% when I -- my desk is in -- leader is 52 week I.
We got that quarterly earnings after hours today so that it's up 3% before they announced -- keeping them just ask you now the desk and now I'm just yeah -- moving again.
This what's moving on -- I believe what else different different show.
Corning also up.
They got to upgrade today Goldman Sachs -- stock to abide predicting that the liquid crystal display TV markets -- some people and start buying again.
Deutsche Bank also predicted a robust TV and PC demand coming up in future.
It's definitely to the party went down that that would -- and Matt pharmaceuticals here's a little Biotech mover -- was up over 30% before.
The FDA said that it won't need a second trial for it one of its migraine drugs that means it can continue on and go to last stage that's good news for Matt.
Tuesday morning this cracks me up Tuesday morning is one of those.
It's it discount clothes out storm but it's high end so it's like newly wealthy women who are trying to get a bargain.
OK I got married -- other products I'm like you know it's like I'm cooking where so they have all how -- they have kids need stuff Cuisinart Donna Karan towels and they raised their fiscal year end earnings forecast.
Man yeah man that say it's not their welfare out there shopping but they too are looking for a deal.
And number one is not grant exploration actually -- -- and I talk about this all morning it hit a 52 week high so this was spun off.
Brown -- Matt -- oil and gas which was spun off I'm very poor connection so there's this Big Five mile deep well out of Gulf of Mexico.
And they made a major discovery.
And -- -- exploration is 33 -- a 33% stake in this big projects so all those companies involved in this exploration were up.
Mack -- exploration -- over almost 37%.
Lot of -- on the golf isn't good satellites constantly to deal of information I put a tank in your backyard and that it's going to be able to drill out there but -- like -- school Washington.
Don't think that's a good idea white trash shark tank and the -- you know.
-- -- are old enough.
Left on the Wall Street strategies saint Charles the -- we should drilled in the -- -- think -- -- -- by the way my subscribers along his -- program.
Everything that I like about it -- -- like 830 right yeah it went down to seven but to -- one load of guys you have more you know we took caf today.
But he didn't handle -- then of course I guess some people like in seven bucks in Kenya.
I didn't just real quick that we talk about medals before.
And I think people in the know lake I talked to Eric -- about this all time -- I just don't understand it.
Why would why would I by a -- gold when I can buy.
Platinum -- titanium right or copper.
-- I can use all this stuff a gold was like -- shiny and that's pretty much the only useful as a door stop.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That -- that's what I love this company to because I have Corning ware at home snow right you still have.
Well I like she's got.
I know that everyone -- and Nationalists and we bring in on Sanford I have throughput -- an ad campaign that's that is.
Certainly -- the ads around like in 1960s this.
I'll just go all in anything you do it is still -- -- let's not make fun you can still go to Bed, Bath & Beyond and buy it but they all.
I think of a -- Dick van -- Into the I want to thank today.
You can make some -- -- -- okay I'm -- I'm rolling the dice there were these are all high.
Q I'm letting you guys know right away high risk but -- lot Sonus Networks.
They do a lot of things and -- information securitization.
It's not a customer of a big break out now it's been terrible -- it hasn't been a great performer.
But they have been history the last couple quarters and the estimates are getting better right now that consensus for the use -- to lose a penny.
I think they'll probably file legal makes make money for the first time a long time this is one of those survivors thought you were talking about.
And the -- is it SO NN science specialists and side arm what about -- customers it is is that something that some and somebody may get a stop like this I think that's probably very important that.
They did they I mean obviously you know they sell to the bigger you know communications companies in them.
You know you know the -- like this listen you bought someone might buy something from the sale Verizon or someone like that.
You know -- stocks probably not gonna double -- give it -- -- -- dollar stock with the stock has been a performer in the past that -- tough environment doesn't -- -- and mean is is a takeover target potentially it could -- but you know what it's -- undertake over -- rumor -- for at least.
Fifteen years on and off this next one China Finance Online company limited.
The name of this thinks he is but he's that scary yeah JR JR JC.
That's it was upgraded by JPMorgan today -- ten yeah and that lesson JPMorgan had an opinion and it's -- 2008 when they downgraded it to themselves that's pretty good news on the trading at one point eight times book.
Lot of these Chinese stocks aren't necessarily -- expensive even -- -- markets have been blown well they do all -- finance information.
They're opening up their markets more more to people to invest over in China and I think people -- -- OK I want me to find out about -- stock or do -- ago.
And so like they were scored on and I'm actually in the stock from like 45 months ago and I'm still down on it so tough I know you know like all these useless.
Facts and figures and why is the ticker JR JC -- I did not figure that one out as a group think that -- -- do destroy someone's initials right out of the founders yeah like I did you know -- right.
-- as the -- into bar that you yes that's -- those in -- the first two letters are his name in cart hurt by what I heard the last through his hometown.
-- Yeah they've got a lot it -- that would -- the I bet that if the fact is that an official of all the members of the band that sent him mind you -- but I did.
Rick's cabaret and speaking played against them on that -- LC but.
Rick is Illinois choosing I thought maybe on a fundamental side maybe Chris might know more information gonna -- didn't get -- had the -- US district is yeah.
Did he get that that maybe helping the of them could get back into club onyx now I am now what's -- -- cancel out one other properties I didn't know that and write that down and sat.
I'm not -- I don't hesitate to recommend -- because of the nature -- cabaret club not yet cabaret company but they are really rock and in the stock -- make a nice moves make it a true break out strong volume 52 week.
But you know we have a stock -- -- -- -- kinda feel like you're chasing pull up the chart look at it 2345 year chart because a lot of stocks have been substantially higher than they are right now -- that might alleviate some of the fears for instance the stock.
With 25 bucks in 2008.
This stuff interest me that is this this company is comprised of nineteen adult nightclub yeah.
What would possess these guys to say hey let's take -- baby public.
Again I guess they've they've had the best that I Hewlett-Packard.
It has everything you have two ways Bob Wright making money right you can sell up to the mafia and -- Obama puppet and I happen to me gap now.
And I've been.
-- ask you about it chart reading in general it must be so tough to be able to make anything out of charts these days because if you go back two years.
They all look a lot alike yet fallen off a cliff and earning -- 2008.
All the way in the march of 2009 and then it's almost a straight line since then.
That's a great point what I think people should be looking at -- cut us stocks have made the higher lows in higher highs in other words they're doing this there's that thing.
Also volume for me volume as the -- -- I mean my small my successful stuff comes from reading volume -- my philosophy on the market by the way guys.
95% of everything that happens it's leaked.
-- not -- circles but you can catch it through the volume.
And -- -- when you look at a stock apple coming off of what Chris is saying to at this point do we just go back to marks do you forget what happened before march ninth.
-- pretty much star cannot let gay you know the -- over we hit the march ninth flows that was a low period public -- will -- -- -- -- these aren't knock on -- knock on blast do we start from there on out or do you still look at the tenure -- to chris' point does it mean -- -- -- Just as they have it is always start with 52 week chart and then when it when it comes to something like this that breaking out through 52 -- I -- see how word's been before theoretically if it's been their before can always give back -- although we know some of these stocks.
And like sonus was 75 dollars right back in 2000 always messed up that 175 them.
You know all these stocks report -- -- fell off a cliff I mean like it lost 70% of all the Freeport could probably go back to whatever I don't -- but that was -- momentum wasn't -- a one point -- thanks spent a lot of fun guys thanks saucepan and the house of -- from Wall Street strategies.
Giving -- on up to date info on -- brings it also owns Tutsis cabaret in Miami -- -- now and now I do thank you for sharing that with -- got a lot when he gets -- -- going to we're keeping -- And the -- now you alarm.
I have -- my hey welcome to foxbusiness.com live Tracy Byrnes Chris -- -- at seventeen that's where we started that's better than down that's for sure markets hanging in there today it and considering we haven't of a lot with Steve start earning season tonight without -- kicking this off what do you think up or down without code good -- That while visiting with -- it's done the point now I think it's not that difficult for them to beat expectations because I think it is about -- with them don't -- think.
We caught and they didn't 909 -- negative I'm not -- -- -- tough call.
-- -- -- you'll call last Billy what happened over the weekend confirmed this morning not need is as close to be confirmed as you can get Pete Carroll is gonna go from USC.
To the Seattle Seahawks making that jump to the NFL again he's done once before not very successfully.
Although this time it looks like he's going -- would.
-- have control football operations essentially.
Mean if you go by what Bill Parcells once said not only does he get to cook but he gets to choose the ingredients for the -- so yes there.
-- plays he wants and and he gets the call it's not there in Seattle and it is also about money -- if you once thought.
Pete Carroll has the most ideal situation of all time at USC has had to deal with the pressures of being an NFL head coach.
He blood had about a successful seven year run as you'll ever had seven straight pac ten championships to the national -- -- Three Heisman Trophy winners goes on and on 850 winning percentage at USC but lo and behold.
-- make it about five million dollars a year.
NCAA problems with Reggie Bush now with Joseph McKnight all kinds of NCAA issues and microscope is on their USC he -- says you know want.
I'm gonna leave that behind -- and -- another pressure cooker in the NFL but five years 35 million dollars as an extra two -- -- -- the money is almost all.
There's always as big as the money is at USC at Alabama Florida it's always -- at the NFL level.
And Paul Allen and -- people the people in the NFL.
He lived there in Seattle they've got more money than you can imagine so they're gonna use it and they gonna use and on.
What he did at USC in terms of winning an excellence.
-- the Seahawks.
I mean that's a no brainer right it could -- the entire time there.
Thunder and lightning bolts on his house 35 million vs five and in OPEC knowledgeable five million verses seven million look at.
Five years 35 million dollars.
But tonight a million dollars -- -- had a lifetime -- -- -- and I indicated they have taken forever USC but the fact of the matter is.
-- you two million is more than five million unified -- deal and you get to go to the next level so he's gonna do that there's no perfect job.
In college football college basketball.
You know there's no job security you know to value to be fired so you know take the money when you can get and as we -- And isn't -- mean it's should be a metaphor for just.
Business in general you go and I mean that that's the way actually to be ready for our government I should say -- not performing you got out.
And that doesn't happen it happens in sports and if you lose one game you're on your -- -- a lot of times people have guaranteed contracts coaches don't but but coaches get payouts to -- you look at some of the coaches that have been fired.
Cook this vehicle -- the walk away.
Just get I mean a rough gig being a coach -- -- on your face instantly you it is very stressful there's no doubt about it -- quickly did you know that detail was the first coach that is on FaceBook page he's really been on the cutting edge she's been on the forefront.
And that's why a lot of kids -- the complaint form and they did and they won.
-- joins us right now we gonna -- and that's good for comment and recruitment is what am I top obvious and that's how he wins sooner than they lose him -- -- stuck Jaffe joins us via Skype he is the senior editorial page writer for MarketWatch.
-- -- -- -- -- -- -- Good agreement there.
I what do you make of what's going on when in the upcoming year for.
Mutual funds and the reason why we asked what one of the reasons Diaz hasn't really talk about it we always talk about stops we talk about commodities.
Mutual funds is something we don't necessarily talk about as much but you seem to think that 2010.
Might be tumultuous year for mutual funds don't you.
-- -- -- -- -- -- -- I consider -- of the fund industry stories coming -- it's not really market call or anything else but trying to figure out.
You know what I'm gonna be writing about it as -- -- -- forward.
And I have to say and all the years I've been doing that and it's more than fifteen now.
-- this year.
I kept what you're going to let up any good news stories are good it's -- so my big -- really start went.
The current low yields about what's gonna happen when rates go up but I do believe we'll see rates go up this year so the current low yield issue involves money market funds and right now.
Pretty much every month -- But it is -- Virtually all of its costs in order to stay positive.
If if they -- they'd be breaking the -- So you've got things like Charles Schwab.
Saying that it's for going.
About a hundred million dollars every quarter in revenues just to keep my neighbors -- place on its money market funds while okay -- broke.
My having a tough time with chuck I think.
-- in -- which was talking about is.
First of all we have much we potentially have money market funds that are closing and I agree with you we don't talk enough about the mutual fund industry.
Very -- and I.
It's in another one of the world's I'm fascinated with and I covered it for so many years mutual funds.
Do when mutual funds are doing really well no one questions things but when they're not and you start to look at the -- your nickel and I'm in so many ways and when you pay.
And manager to actively manage your money and he's not even be in the market is it worth.
Paying almost -- you know why we on -- mutual funds very often because people that.
But the great majority -- that invest in mutual funds invested because they don't want to make decisions on their own in terms of what stocks equities what to put in their own investment portfolio so they hire somebody to manage a fund manager to manage that mutual fund whether it's through your 401K whatever the case can be so you can say.
Now I gotta deal with you know fixing dishwasher or -- -- my kids to soccer practice I don't have time to deal with that that's why you do it that's why don't talk about.
I understand but I do think we should bring to light this -- -- -- -- we have mutual fund managers out there who don't even have their money in the -- and you should know that and -- you know that you won't investing your money with my money.
And I can we should know that again see.
Not 85% of the people you could write it really.
I on I -- mail it out to a woman black Scharping marker and it wouldn't take the the envelope and throw it away with their mail every week I guarantee -- That -- anti -- more than twelve B one fees either feed you paid it just -- -- the fun but they're going apparent rising exponentially.
And your fund is a loser.
-- -- -- -- -- -- What what we're gonna hopefully it's at backing -- shot at some point that because I agree -- these are things that we should know we generally do not because -- like I said I just think the great majority of people that invest in mutual funds are people that don't want actively be involved in the process doesn't think the majority of investors are in mutual funds.
Yes for the majority investors don't want to be involved the majority of investors care much more about.
About the terrible does Seattle and they do about their mutual fund that's whether it's a mutual fund to begin that therefore I can't.
See are there other reasons by -- -- He's -- does not -- -- is here founder and CEO of doubles stock doesn't think it's a buffalo one k.'s and about people.
That are the not Donnelly had not contributing to their 401 -- recently because they don't really have -- -- -- the -- good against them all right what what did you make of the number on Friday 85000 jobs lost you sort of move beyond that already in the -- -- -- that number is sort of lingering isn't it.
Yeah well it's it's it's it's a bad number but not unexpected if you look at the last recession job loss actually continue to eighteen months after the technical into the recession.
So this is a pattern that unfortunately we'll be stuck with probably four.
69 months into this year before we see.
Any kind of improvement I think where we are -- hopefully.
We're at the zenith of job loss and will have sort of an erratic curve where the top of the curve of the -- a little erratic some months we'll do better some months we'll do worse.
Hopefully by the end of the year.
We actually start gaining jobs and return to a more.
Positive place but if anyone hiring -- have to be some glimmer of hope here.
Yeah well that's the thing to remember about 80000 jobs lost it's not as if no one's hiring and 80000 jobs are lost.
There's probably four million job transactions in the US each month.
So four million people found jobs the problem is 4000000 and 80000 jobs were eliminated.
In the month so hiring continues.
Its at a slower pace.
And it's different it's in different occupations.
You know I I always tell people one thing about a service economy which is predominantly what we're in Manhattan learning who leads your earnings.
So for example if you look at college -- -- people in the workforce unemployment is four point 7%.
If you look at people who didn't finish high school unemployment is over 15%.
And you can sort of do gradations in between so the issue now is that the economy largely.
Is injecting a lot of the lower skilled or.
This jobs requiring lower education.
And in favor.
There's more opportunity for people with degrees.
But does that mean and the people because -- we know that people are on dot.
Unemployment benefits for more than 26 weeks tons of people -- on the emergency and extended benefits.
So we have people that are home collecting should they go back to school then is that what you're saying and get an education well.
If the answer depends on where you or your career if you're in your twenties and thirties you have a different set of options.
And if you're in your 40s50s and and potentially stands right so your career plan really has to depend have to take a look at a serious look at.
What's the Verizon moving forward to finally have ten or fifteen years of work time left and to find.
Way to use the current skills I -- and slide them into.
Into a different application if you will moving forward.
You know everyone's talking about green jobs to even have the for the White House come out on Friday morning and say look new initiative you gonna spend some money creating green jobs.
And then you know an hour later -- get the report construction and manufacturing jobs are down is that.
Are those green jobs for real and will they take some of those people that lost their construction and manufacturing -- well they're certainly not for real yet you know.
And I think over time.
There are green jobs on the horizon.
They will take the place for example a roofer.
Who made his living putting on old school -- could be -- trained very quickly to put -- green roofing material right so that will help.
But there's -- that there's a delay between any investment.
And any result you know especially in jobs and keep in mind presidents and congress do not create jobs market creates jobs OK so I'm unemployed.
I need a job where -- it right now.
Right now a couple places the intersection of information technology and and and biology or -- science.
Big area of growth in the next five years also the intersection of information.
And network delivery if you think about all of the places that we carry around and all -- the Internet sites.
There's tons of demand for computer programmers for anyone in networking.
Networking by the way is it is an occupation you can get into with six or nine months of training.
Supporting communication networks big area of growth health care of course has been growing although not as much as it has you know in the past.
Personal services in health care is a real interest in place to look.
Home health aides home health care specialists and there's a shortage there has been a shortage and there will continue to be a shortage as the population ages so there's three areas and I would also look at.
Jobs that cannot be.
Out sourced -- Italy and explain job what I mean is jobs that cannot be offshore.
And there's a lot of talk and I hear the president say.
Outsourcing is bad the fact is outsourcing is been going on for forty years in this country companies like IBM.
Have been outsourcing.
Forever yeah -- It's okay if your job was outsourced and you can go to work for the outsource certain it's not so good if your job gets sent to India or China.
Things that cannot be outsourced -- things like -- made a quick list firefighters.
X ray technicians if you look around.
Things that you have to be either you do great occupation that's a great point -- good to see -- thank -- very.
They're grinding the founder and CEO of doubles are getting us up to date on the way to go to find words if he needed and a lot of folks out there and -- -- -- come -- we're gonna -- -- the DC -- -- little bit of difficulty -- -- gonna -- -- up -- -- On what's going on down there.
What about foxbusiness.com.
-- had a few minutes up we're gonna head down to DC Peter Barnes covering the big story the day today.
Peter I gotta tell you this is not we talked about this all weekend Harry Reid made a comment he shouldn't have made back in 2008.
The president say it's not and why would make -- a big deal out of this.
Because in this political environment I don't -- -- -- You helped take anything off the table -- of this is out fighting up and that.
Hit a hitting senator -- pretty hard in fact.
Is you know -- particular he's running for reelection back home in Nevada.
He is running behind in the polls there there's some numbers out just this weekend showing that 52% of voters in Nevada.
Disapprove have an unfavorable opinion.
Senator Reid only 32% have a favorable he trails.
Three Republican -- possible Republican contenders in that race and there are minorities who vote.
Here in here in Nevada and that just to review what he said in this new book called game change.
He said that quote.
-- the president was a light skinned African American with no negro dialect.
Unless he wanted to have one.
-- supporters claiming it was an awkward effort to try to praised Obama as a strong presidential candidate especially because it is speaking skills and Reid himself of course.
This weekend -- there was a porch or -- words.
Call the president Saturday apologize the president -- -- considers the matter is closed but.
Republicans saying here that that senator Reid should step down from his leadership in this position in the senate and then of course there could be some fallout -- every election our race in Nevada.
-- PDF the sense that it whenever the GOP really feels this is serious or not they're -- -- -- this is an opportunity get.
Until you get Harry Reid made out of there.
Hey absolutely but there but they're also saying listen that the Democrats have a double standard here.
-- you know that went went Trent Lott was the majority leader for the Republicans back in 2002.
And made some inappropriate.
Questionable comments about.
The late senator Strom Thurmond saying that if he'd won the presidency when he ran for president 1948.
As a Dixiecrat.
As they segregationist perhaps the country I would have been better off in the long run and senator route -- was forced to step down so some Republicans are saying hey if it was good -- if if racial comments inappropriate racial comments.
Were enough to force senator -- To step down then senator regions have.
Then that's what that's -- Michael -- Michael Steele the Republican National Convention.
The RNC chair told Chris -- over the weekend that -- a double standard here.
A Democrat says it if they get away with it if Republicans said it it would be this big racial mass so the saga will continue.
Don't -- -- but that's senator senator -- by the way as having a press conference on an energy project in Nevada in the next hour we could hear more comments on on this story.
Great thanks Peter thank you hear guys that government bonds that come on out help us out here with this one -- -- is that we got a little info on that.
It is I do think that it is the GOP basically saying holly got an opportunity ankle -- you know had yet because there.
That they're grasping at straws right now what ever happened.
Fox does dot com car -- market is so bearish right now down.
A few points since he started feeling seven point that would fill up on the day -- eleven point in my everyone thanks for joining us.
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