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Welcome to foxbusiness.com live Tracy Byrnes Chris Scott -- -- we got a market that's down eighty points today president was speaking -- that is there a correlation.
And I don't know the market was down -- -- -- -- and was actually when we literally when you see -- you get started they were down triple digits and these sort of slowly had this climb back and I actually started watching on the market right when the presidents -- speaking resolutely today about 35 minutes ago or so.
And it really wasn't much your reaction from the market maybe a little bit of an up uptake from you know.
Ninety points down eighty points down but not enough to really listen to the president says and make -- move because of what the president said.
-- this is dollar this is our dollar moving stocks tumbling dollar strengthened so we've had a little bit in news we -- Procter & Gamble chairman's gonna retire.
Of course then we have to hold debt rating agency thing going on to which we'll talk more about her lip bitten -- -- that caught my eyes well the president though did speak today.
How to get jobs coming again lays out his initiatives to relieve this joblessness one of them was to potentially -- a tax incentive to adding keep employees for small business.
I think this is.
Interesting and complicated.
As that person needs to do taxes is is it.
Very hard thing to implement.
And you know hearing probably nothing to lose you good to talk -- need to talk the talk but can you walk the walk into the game that our tax -- is already complicated opinions and -- -- -- more complicated -- in the opposite direction and be simplified gas -- angry at the same time though it was a little bit and you know not this tax the small business in the world.
He also talked about additional infrastructure spending which we that goes you know.
Get these projects out there we've heard about infrastructure spending for awhile now and we're not seeing in many different places like say as I drove -- The other morning there was a big sign up on the road at highway route three in Jersey.
Bumper to bumper traffic because of construction -- said it was being funded by.
Plus -- says.
That's -- -- some of those on multi millions of dollars we're spending.
-- taxpayer dollars to tell us that they're using and the taxpayer dollars that you spent it was -- at present is more yeah I'll tell you when you -- in -- in traffic it's -- who cares who's funding on the worst part about New Jersey to visited with the unions have probably took five unions have put that signed a -- it literally 11 union to paint it.
And then when they cut the metal Netherlands put in the ground.
So anyways that's just more expense rate there did he say I didn't hear him -- -- I haven't heard anything in terms of above what was read not -- Because I think he just finished by the way the president and did he say anything about that the extras the money that was not going to be spent on talking over the lastly -- talk a lot about that that 200 billion dollars that's not really by the way found money.
It's money that is not going to be lost.
It's scored like.
You think about you say will they release it -- -- lose 341 billion dollars and now they're gonna lose a 141 billion dollars so they're gonna lose 200 billion dollars less so again 200 billion dollars that you just found and say hey why we spends 200 billion dollars dot I got to spend a lot of those stimulus.
-- right and it certainly and there's a bunch of Republicans John Boehner for one out forefront in the forefront very incensed about what they're talking about doing and how there's just.
It seems that there's no kind of moral conscience models lot of slush fund needle that's -- thing and that's that's being treated.
-- congress is certainly not going to allow any of that money be spent without further approval that is for sure.
Yes Sandra Smith has been following the story today she joins us right now from the news that's over on the it's where we artists on the -- side of the building.
About the decreasing.
Value of gold it seems like just yesterday -- -- was is that.
Middle of last week -- we -- hitting nominal highs every day in golden boy is that -- intern hasn't it.
And to be sure -- -- -- gold is still hitting it historically very high levels eleven.
52 which right now -- -- you know it has -- the past couple of days in a lot of reasons that we're here for that out there is obviously the big.
An employer report that came out on Friday showing improvement and are jobless situation in this country.
-- -- ten point to drop to 10%.
You know that gave a little bit of hope to the US dollars some.
Some speculation that interest rates may rise sooner than later.
And all of that really fed into the past couple of days of -- that we seen in the price of gold.
I'll -- a major story that's you know developing is that some of the central banks -- -- biggest buyers of gold in the world.
Talking about India and China -- Central Bank the people's.
-- bank of China.
There's some hesitation coming from the central banks in this could potentially be a big deal.
When we talk about whether or not gold has already know finished its run -- historic highs.
China in particular is sort of red flagging that it's reached -- gold is -- bubble proportions.
And India has signaled that they're gonna stop them wait a while before they add to their gold reserves anymore so.
Well those kind of things.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Absolutely -- well you know it.
But China is still remains the biggest producer and the biggest buyer of gold but India.
Is that right up there I mean those are two of the biggest -- so any big decisions that they make going for a walk obviously influence the price of gold.
But you know and looser setting a lot of other reasons -- -- long term prospects for the IUS economy the global economy.
That could certainly play out and -- -- gold's decline but I got diet.
There's a lot of things out there they're pointing to the fact that some of the big money.
-- -- still believes that gold gonna continue to climb.
Just think about some of those big hedge fund investors that are starting -- gold funds.
Putting in their personal stake.
Into gold why Howard still seeing these historic high -- you've got David Einhorn used to say it was gray his grandfather's investment.
-- 200 Jones John Paulson he's starting a gold funded on January 1 next year.
I mean so they're still big money that's saying that gold will continue.
It's climbed from what we've seen and that -- I'm talking about.
Over the past year.
So far in 2009 of the gains for gold.
Santa really appreciate it good stuff we'll tell you that I IKEA nightstand exit -- joining us beauties of the date on what's happening with a goal and certainly -- -- -- -- I'll tell you -- soon as today if it's all about the dollar write your dollar keeps you eat your deficit gets bigger people are gonna wanna go to gold for safety plays because they still worry about inflation come down right all right -- -- that said.
Com you've got a situation where.
The Chinese just wasn't the September October telling their people to buying gold now not so sure I believe that they really feel like it's a ball that's about to burst.
On you that you heard Sandra giving a ball these analysts say certain member Peter Schiff I've spoken to him a number -- times lobs it.
But you know cat is but it but that's fine but that -- just because you have -- something doesn't -- you can't stop loving you when it becomes expensive.
And people you don't base still sticking bites and it's not expensive so a lot of it was still -- -- inflation will get here is no doubt about it I was that's.
-- -- it's the case for up is probably a bit easier one to make in the -- for down at this point bomb Ryan Detrick joins us rent a senior technical.
The technician -- shapers investment research research.
Good to see and you flew in from Cincinnati to queen city.
I'll by the way did you -- he's essentially with him though I didn't.
-- it would Cincinnati chili it's like the special chilly put La Hoya getting yes the you put it.
-- know you -- she's double talk about what about that later.
A lot of -- anyway so I'm perfect for me you know like she's that's hard so what do you think about.
Gold is in a bubble it's about the birds that we still have room to go as it's still safe -- Really think there could be some room to go -- the -- on on gold when you.
All we look at issue for you look at its market sentiment and we talk about -- on the dollars -- an image of dollars obviously went the goal we all know that.
When -- a lot of bottom picking coming in on the dollar now when you have an -- -- this trending lower like the power has been before entries and bounced on the bottom picking coming in us that's too much optimism in the face downward price action when you have that counter -- sentiment.
We think that trend means is gonna continue we look at option activity closely also the UP which is a dollar index ETF the people buy and sell actively Lotta options on -- Huge call boy recently on -- that tells -- lot of bottom becoming and so we -- that -- bottom -- coming in.
Tell us we think that's by not the bottom we all know -- Foreman is total despair and is there are people now dollar yes but we -- think it still will too much optimism dollar could probably should keep going lower and of course that should mean gold should you couldn't hire extra analysts on the market.
No you're right absolutely yeah we definitely think both can continue to go higher absolutely and as the dollar goes lower we all know the dollar was lower usually means about police in this market the market -- keep -- higher so we do anticipate -- least until the first quarter of this.
Next year so you're bullish on both the market and gold right now that is correct OK and also then you're looking at what other sectors are you looking at we'll get more bullish we definitely most sectors prodding or higher but when you talk about what she can make the most money are we really think he should stick with the riskiest assets -- risky sectors really when you break it down.
Commercial -- real estate is probably be most risky.
-- out there obviously has a lot of -- lot of reasons to be fundamentally bearish commercial real estate mainly talking about -- But when you look at the price action on the highway are which is a -- -- -- the press section of various other reits.
Huge short interest very very positive price action amongst that negativity -- of negativity -- numerous articles coming in on -- anecdotal sentiment from.
Bear across the globe verse voice is saying obviously with the Dubai commercial real estate is toast commercial real physical problems and yes it does but we -- we think that is really -- then.
And that -- price action should there will continue as its expectations are lowered.
And the world economy continues to kind of balance and have the formation that we have been -- you know I was gonna ask you about you know some sectors whether we're gonna see some rotation out of some -- -- -- the last month we've sort of -- major indices have been holding had a little bit maybe -- -- we're gonna go from here.
-- up from march is sort of settling in -- we gonna see some rotation out of some sectors that have been very favorable during that run into some others like you said.
-- commercial real state that hasn't been favorable but maybe now is -- -- because a lot cheaper than others and I do think so when you talk about -- -- just last week we saw last week semiconductors detected -- -- -- -- -- -- we all know those of the -- wanna -- -- will we see the last couple months we've seen like some of the big -- and honestly there's nothing wrong with that but -- good -- bull market you wanna see some small -- -- -- -- And that's cattle were sort of see again in the very near term so.
Another -- we do like is retail obviously again lotteries is not to like retail wouldn't the price sectional on these retailers things like RadioShack and Chico's.
And -- GC crew.
Those those have had really nice up upward price action amongst a lot of negativity -- short interest lots of what's coming and all of the calls but to -- bearish bets that we see negativity -- that the price action.
Retailing and peripheral -- prior to -- sectors we -- six market.
Isn't isn't riskier bets then -- -- -- you know I mean so people need to be aware that because that.
If you say that put activities increasing on a stock that's a bearish sign that means well people are making a bet it's going to go down yours and you're then saying I'm gonna buy.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Some -- Jean and from Philadelphia wrote threaded into go to Atlantic City have better odds and I tell you what he's right because.
We're talking about.
Short term plays here we're not talking about long -- you not talking about buying and holding commercial real state by any stretch.
You're talking about potentially taking advantage of the fact that it might run up a little bit.
Because so many people are bears.
So this is not some this is not for the -- -- by any stretch and this is not for the body and go -- -- Well from buy and hold as we know for the last -- years the markets flats in my whole crowd you could argue that has really worked so I'm saying this for the next three to six months.
You'll probably do the best in the risk dresses as we don't think this bull market is over yet next year once you pass the first quarter.
Will reevaluate but.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You still like the Procter & -- mcdonalds of the world capitals -- -- -- to -- and and yes Kevin yes absolutely caterpillar McDonald's and a flick -- names will produce chemical especially if you had to say what's your favorite stock in the -- I would that was a category that's another -- the -- positive price action some good fundamentals coming in to lower dollar helps them up but also -- been negativity pretty good short interest -- -- -- -- hold ratings and caterpillar.
I'm not sure exactly what it is but I do know it's definitely skewed there's more there's some holes and some cells there's the negativity on the analyst front and again with that.
I'll -- upward price action negativity we like that and that's Elvis -- -- -- continued to -- -- doubt.
All right Ryan I'll get you slice here in the right as long as you possibly next Cincinnati -- next time around I'll do that all right Ryan Detrick -- -- technical advisor shapers.
Investment research good to see it thanks for stopping by -- -- racial form that it only trees.
I discussed under the fact that you put chili on spaghetti and I can't get past -- -- -- gonna have to go to Britain gradually phase at skyline chili on the Irish putting ketchup on the other way where it's totally different not eyes he's -- been.
I've got a market that that 86 points Tracy Byrnes Chris -- Don't forget to download that patents -- the iphones you can watch us in Columbus, Ohio tell us the road since then well rehearsed and on channel 106 in Cablevision notice is not where I'm -- it -- it.
-- become apparent what was good -- just.
Worked for me.
What does six Cablevision.
Watch us all the time as much you can.
We get the White House right now Peter Barnes -- CNN out there in the cold unfortunately Peter it looks cold talking about.
The president again he's got -- big push to get jobs out there talking about tax incentives and infrastructure spending.
And what's next.
Tracy the first thing that we're gonna tell the president to do is get -- -- tax rebates or you can get some real skyline chili and Cincinnati I am stunned good yes done that -- you know that's a sheltered life had.
And on this right you hit I would got her -- -- under its original -- job will get somebody -- a lot about.
Yeah Cincinnati and get -- -- skyline.
-- -- -- The planet like my stomach into the Peter reacts yeah they need talent he'd understand if not a replacement for -- spaghetti it's not replaced her acting completely different all right I putting ketchup on angles with different.
I was an intern at the Cincinnati post when I was in college and all I ain't worth skyline chili which is just simply.
Great -- very nice and spicy you can have a two way three away for away with -- -- And what else is only on her aunt she's gone wrong is that right that's right so organist get a tax break for that just for Tracy -- created jobs you know somebody out there and -- Yeah I want to me I will I will give it the old college -- but as they set you back and apparently on hand as well that the.
It's great stuff but let's that let's talk seriously about what the president talked about this morning at the Brookings Institution.
He said -- that the storms of the past are receding the skies are brightening but.
Bottom line is the economy is not creating any new jobs right now so he announced a new series of proposals that he would embrace to try to help.
Create new jobs that he did not put much.
In the way of specific numbers on some of these ideas but we're we're getting from my aids and from folks on the health that this looks like a package that could be about a hundred to 200 billion dollars on top of the stimulus spending.
That is still in the pipeline from the package earlier this year he wants to pay for a large piece of this.
Through the savings and that TARP that the administration has announced as saying that it will be spending.
200 billion dollars less on the TARP wants to use some of that re direct that.
Will require some legislation in some cases re direct some of that spending for.
Job creation and they claim use some of that but also to continue to trying get a handle on the deficit but we'll see how all that comes together now -- the specifics.
The president does want to create a tax break of some kind for small businesses to hire people.
He wants to extend expiring tax provisions for buying equipment -- offer capital gains breaks for investing in small businesses.
He wants two -- to extend the expanded SBA Small Business Administration lending programs and the continued lower fees for that he wants to use some unspent TARP funds to increase small business lending -- doctor treasury official this morning.
-- says that could be twenty to forty billion dollars for small business lending also he wants more money for infrastructure spending bridges tunnels roads administration aides saying he's favors fifty billion dollars of that.
Finally wants to create these new rebates or tax credits of some kind to encourage homeowners to whether rise their home.
And two tried to improve it says save money on their energy costs improve.
A global wanna help global warming cut global warming greenhouse gases through more energy efficiency.
And put construction Burton workers back to work he also said that he would support extending unemployment benefits again extending the cobra.
Ability for you to -- your health insurance through your.
Company cobra plan if you've been laid off just pay cash for that he also favors additional help for state and local governments that are struggling with the budget deficits help -- -- governments keep employees at work there as well.
Right hander Chris.
I appreciate -- -- exactly down the road all right.
All right thanks a lot thanks Peter.
That be some and I think that is has essentially -- using these seeking gravity anywhere else but in Cincinnati.
-- appearances and he goes down we got everybody talking about Chile right now begs -- question.
Of specifically about why Chile which is truly put me out now in the good looks like Lance Las Vegas I don't yesterday actually -- -- says this way to go spend spend spend this guy ever learned.
You get the tax rates which I like.
But you also again -- -- a lot of spending and I just cannot see Peterson's and it takes some legislation to spend this.
Found money is 200 billion dollars as we know it's not found funny money but.
I don't know how any legislation to be -- to spend this and not just say thank god that's 200 dollars less of that 700 billion that we committed to TARP.
That we're gonna have to spend.
But actually I'm all about tax breaks inside them -- bother me for instance a tax -- to whether -- your home.
Sent advising me to do that that's -- paying my children to make their beds open I know that will that.
I didn't do that I have to admit I -- didn't -- lean on them because I do because I'm trying to do.
Get them going on all rounds process but nevertheless that's what it's like people you're paying 8 o'clock my when not if Obama is and I -- the windows open all night long that's -- Problem people and sent advising students to get good grades lately with money and that's exactly I don't know but you know but wait for your parent your money money goes a long way -- I.
Except to let's go to Christine -- right now she's the executive director of the -- -- project in Christine.
-- we heard the president talking one of the things he was talking about was.
On the call -- insurance for those people who have all lost their jobs is remained with health insurance.
One of the big problems that we have right now we're especially gonna have an early 2010.
Getting their benefits expiring are we not about rating a reminder that even though we've had congress extended and extended extended by about to run into the end of that extension -- Yes we could because the provisions that were extended in the Recovery Act and again in November.
-- set to expire at the end of the year and so unless congress reauthorize this them by the end of the year though so all expire -- people who run out of their state benefits in January won't be able to access a federal program those -- run out of a first round of the federal benefits won't be able to access the second round and that also includes a cobra benefits that -- mentioned.
Okay we're talking about over for now to nine months.
And -- -- nine months I could sit home and collect -- -- is extending this.
I mean you've got to believe that on some level it will promote a little bit apathy out there if I know that I'm that that sex can you keep coming in the mail on not -- paying for this by the way but that being said.
Keep that money come -- why should I even bother looking for a job well.
People are looking for jobs we talked to workers who apply for hundreds and hundreds of jobs you know there are.
More than six unemployed workers for every job opening we have.
-- across the board people recognize that in an economy like this one where even though last week's employment report was better than.
Any for a couple of years the fact is we still lost jobs we have a long way to go before the economy starts adding jobs.
We need to add ten million jobs in order to start to do put everybody who's unemployed back to work into.
Accommodate people who are newly in entering the labor force so the notion that.
People would rather sit at home and collect 300 dollar to -- unemployment benefits and get a job just doesn't fit with the reality of what workers are experiencing.
-- what's happening in terms of jobs that are being.
Not being created jobs are continuing to.
Christine recent report that was co authored by the national employment law project.
Put out some numbers -- -- -- 3 million people could be without benefits.
Nothing is done.
What wondered what will be the cost it in order to do something to keep these three million people within benefits.
Well we estimate that if this -- -- all these provisions were.
Extended -- through the end of 2010 the total cost would be.
Eighty to a hundred billion dollars but do you remember that that unemployment benefits are an effective stimulus for the economy Mark Zandi has said.
That they unemployment program has actually been the most effective stimulus.
That the economy has had every dollar in benefits pumps more than two dollars back into the economy in terms of spending and dollars that circulate through the economy so it's an effective stimulus it -- -- more job cuts it helped create some jobs.
And the cost to not only to families but to communities when people don't have benefits are huge we know that.
Most of the foreclosures now are because of unemployment is three million people all of a sudden have no unemployment benefits and -- the single largest thing that they used their benefits for is to pay their mortgages.
We're talking about another wave of foreclosures that these folks -- just cut off from -- Yeah with all due respect to mark the end because I -- like him a lot and he's very Smart man but if you if I'm giving you unemployment benefits and you're spending it.
You can -- to the economy at all you didn't have to society to go out and be able to purchase anything I think he -- it's like Christmas every day somehow and -- and we got talent war but that's that's how they're not earning that money though aren't they where -- -- they have.
And that money that they only get unemployment benefits if they work and they've lost their jobs through no fault of their own.
And aren't -- -- that night as letter to -- still need to be -- keeping I mean doing -- went really well lately I believe to be broke -- -- make ourselves broke and then there will be no opportunity.
To create jobs for these people.
This is a very very small part of our deficit the unemployment benefits are very small part -- fact is.
And when people spend money they actually helped to save jobs he helped create jobs more jobs we have.
More -- -- gets pumped back into the economy -- more deficits come down this is the way to fix.
Our long term probably have to address what is a short term crisis but we have to address that crisis.
You know Christine I I have to agree you mean CD veto the labor sets in Pennsylvania called it a moral imperative I can't disagree with -- I can't.
And but it's also a financial imperative if it absolutely has already million people are not spending money and all of their homes become foreclosed upon.
We can't take that money go to Kroger or go to -- -- Yeah essentially you have no option they have no other option yes.
Don't this table for every open job in America right now they have no other option but what what you're doing by continuing to feed them money you're keeping them the utter -- -- Everywhere so large weren't sure how bad -- -- small majority that would rather not work and would rather take Danny yeah.
300 dollars a month we saw the current unemployment numbers the -- pulled back why because people pulled -- Christine.
No I just want to say one thing that if people were.
Choosing not to work we wouldn't have had 98 senators vote for the last extension and all but twelve members of the House of Representatives vote for.
We had a unanimous vote in the senate and the near unanimous vote in the house and that's because people recognize that in this economy unemployed workers are not able to find jobs.
We've seen I -- this debate will continue and I'm sure we'll have you back to continue the debate Christine Owens executive director of the national employment law project at a DC thanks for being with us thanks Christine thank you.
We're gonna go to -- caught my -- but it's it's a very good argument but I just think that and the way things are right now Tracy there are these people are not.
Choosing not to -- it because they're getting 300 dollars a month.
I bet you don't and some of the -- country that's -- and -- you've got egg -- that.
You're just seeing it out of our date you know New York centric Californian and like finally I -- I was making 300 dollars a month in China some feed a family on 300 dollars a -- forget it I'm still looking for work.
But it -- nothing better almost anywhere else but getting them 300 because I didn't know people in New Jersey who were happier to be on unemployment -- -- All right what what else coming -- this be a moment where ominous math class and snack and have a kind of yeah.
Jersey's dep just do it all of the Jersey comment -- like quote.
Don't know -- -- more -- for you over the debt agencies.
Okay this caught my and I was in New York Times and I know -- are these -- In -- our viewers as well.
So we -- day agencies Moody's S and he's given all flying you know giving out awards everybody else was and we have a financial collapse the big question is -- -- -- -- -- That's actually -- a nice version of the question -- so.
Now here we are flash -- in future what what's happening to overhaul these guys were overhauling banks were overhauling everything under the sun how we overhauling these agencies now.
They get away with murder and yeah.
A one -- -- say it's a joke right it will listens to the agencies anyway but he's so perfect example.
We have agencies come out downgrade Greece and on Sunday -- an issue we're -- and that the United States potentially losing its rating.
And people are -- so we still listen to these evening hell and I don't know why because -- you also have to understand that.
These agencies for them to do their job right it's like paying a restaurant critic to come and -- restaurant.
And review year -- out.
For -- I'm really scary to me that so much is so much emphasis is placed on what these three agencies say S&P Moody's and Fitch.
And if they change their mind on something all my -- the whole world is and it's his eagle hole goes into a panic because of what these three agencies say in sending units.
Awful lot of authority and responsibility.
To be put on the hands -- of up a private enterprise.
Like that missed the boat pretend the fact that they totally innocent and they'll hang on every word they say that I'm not sure why it's another thing in a new -- -- legislating -- legislation out there that allowed make it easier to see these guys if they screw up.
Potentially like try to separate church and see because right now this whole notion that you pay these rating agencies to -- you -- The pay somebody to give me good review can't do -- thinking that.
Right at the find somebody good but you're saving -- money for Cincinnati chili that's what I expect that the it was his tenacious that you're aware of that.
All right down sick to -- about -- -- anyway that.
-- -- Ito have rolled them up on the big picture Cincinnati -- here I went out of my break.
We come back we've got a lot to get seated and got a great Rachel re aware you don't want this is the inside.
At the N dot com situation can't take part we're down going down.
The bill up for that had -- -- to talk about chili on spaghetti.
-- -- -- -- -- -- We'll by the -- lot hotter and burns with you.
The email Tracey pictures inside showdown time look at -- it's fantastic -- enemies a love.
It looks like different -- it literally it yet -- little water it's a little kind of it's like like the meat sauce but it's a chilly.
And you said she seemed like a pound and at that he's it's great and I can't -- anymore because off the leaf and they'll get some -- run the Cincinnati.
-- -- Actually -- -- that there.
I never had to -- I'm not Italian but we don't see I didn't think something genetic about it that we don't actually eat -- -- and America finds out there.
You have please let me know I have to tell you.
All right screen whatever it is 97 points to happen on the market let's move in this market might be going down -- -- -- Feel whatever that's Larry that I can't even say it right right yeah.
Would -- you can you can only -- a guy that gets.
Yes would you -- and it make him give me and it Kroger down believing -- -- -- -- -- -- -- it.
Somebody -- -- I'm not the grocery chain reported a loss believe it or not 870.
Five million in the third quarter while they should drop their prices Adam's apple there is that what the problem is it's expensive margins are already like that it goes I know -- -- expensive this is why people go to.
-- I don't -- to me go to the closest who has -- your house that's not if it's -- economically efficient at that time efficiency -- him.
Believe it or not down now I don't know why this is soccer and the reason I chose is -- we're having someone on him in a bit to talk about the there resort vacation home -- history but then you MIA half and why because -- there's a significant.
Revenue dropped in their real estate division so Vail Resorts does you know you can go rent to join ski and they also have the Condo buys stuff and it's not working out -- But we'll talk to someone in a bit about that Sprint Nextel is down today which I think is instinct is yes say it was -- -- -- -- from parents gave -- -- Glowing review.
And today we see -- -- capital downgrading the stock saying it's it it's not enough to increase ebitda I would just earnings before interest tax depreciation and it's also a huge one yesterday filming sentiments a little -- -- that.
Absolutely but they downgraded it even -- and toll said it was going another 50% while McClatchy newspaper publisher said ad revenues continues to improve I thought that was really nice thing to hear.
And and Talbots and -- that's our -- -- want to she said she brought.
Or she said it after I submitted my -- so I was right on the same page with you Talbots announced plans to shed its.
Asian majority owner through a deal this whole big special purpose acquisition vehicle.
-- -- -- Enron but nevertheless this is good news we love hearing that they're shedding.
Owners units things lean and mean is what we want and how it's people who still don't -- with a red or I don't go I don't -- so I got nothing there but.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- By the way that's publicly traded.
Well women's retailer and you've ever been address -- I as a kid I might have been yes it confuses me just like you if you change the name.
If you wanna go by and I stressed out a little -- -- -- it just seems to me like from a marketing perspective you should change that name to be a barn as chickens and cows in the -- floor a lot of hate.
Why -- you wanna go that -- my address.
No Cincinnati as chilly but Kenny Smith joins -- VP of capital advisors -- you tell us what's on his mind it at the market down 96 points it is satanic.
Good to be here -- -- okay capital -- growth fund.
You guys -- basically segment of the market in the three distinct groups and that's how you pick what -- -- -- put in right that's right you know we had stable earners which is a category.
That's very consistent.
Companies know what to expect we know to expect out of them we know pretty good idea what the earnings are going to be with the revenues are going to be eaten.
Our next category is little more aggressive it's accelerating growers so these are here you know you're Google's your apples of the world your Monsanto's.
-- more volatility of the market and have quite get it as good of understanding as to you what -- earnings are going to be.
The can be earning surprises misses that's -- -- -- the stock and our last categories emerging franchises and these are pioneers in their industry.
One example would be XM satellite radio -- about one didn't work out so I'm.
But -- -- -- like it CarMax.
Has he unique business model.
On an immature industry but we're we're really seeing the most.
Attractive opportunities -- in these high quality blue chip names.
Like an -- -- streets and yeah.
We've seen a market that's moved over 60%.
Yes and he has since March was at a -- -- -- about 15% price appreciation.
-- a tremendous opportunity.
In this is stock trades about twelve point eight times next year's earnings.
-- -- 3% dividend yield.
Rock solid balance sheet you know billions.
Cash in the balance -- billions in free cash flow.
Is a leader in their industry they have incredible -- pipeline and they don't have the -- -- expiration issues.
A lot of its peers -- and missed the boat that was the president well I mean I think what's happening is a lot of investors -- -- more aggressive they want that plays that are are gonna get in a bigger return.
And so a lot of the more defensive names and really been out of -- we think that'll probably change going in 2010.
Today you're certainly see some you know worries in the market we think 2010 slower economic growth.
When the government hands -- the baton to the private sector -- expect -- growth.
By IBM you also like IBM -- not -- the boat and that's going to be Friday crowded trade a lot of people jumped on IBM we even heard over the last the -- face it's a green play -- I mean yeah.
It's well and they are leader you're right -- in their leader in technology every you know every cutting edge technology there Smart grids cloud computing they're there.
And we know what's interesting is the stock that trades -- -- you know between between 5%.
Discounts the S&P yet it has appear -- -- Has better return on equity better return on assets.
They keep delivering.
And again this is when he can sleep at night you know that if 50% of their revenues are basically -- like with their service contracts.
We think eventually you know may when we have this transition.
Higher quality stocks that I -- little will move.
Can't talk how long we should be holding these these years stable -- so we have.
I BM you also mentioned Home Depot.
Why what stable and how long does that mean I hold onto these things.
We wanna try to hold them long term I mean this is really like carrier riding on its.
You know and this has been involved markets a lot of our price targets are turnovers -- higher and I think that's throughout the industry turnovers than higher.
But like you know like you said with handy and here's the stock where we know with the earnings are going to be -- we liked about Home -- what we look for our stocks is positive change are we seeing trends that.
Are improving for a lot of these companies -- with Home Depot we are.
If for the first time we -- -- -- operating margins me about you know we've seen management announced big buyback program which is the first time they've done and a long time.
While other categories are starting to stabilize to sell a lot of trends there that said OK we don't know if if -- at the bottom and -- are we don't have the crystal ball.
But what we're seeing is trends improving a seeing -- -- transit housing improving check inventories coming down prices stabilizing and then where you were talking about earlier nearly segment.
The government is basically there.
In antsy to get the attacks cred credit to get -- you know I think -- clock in the ex exactly.
And let's talk about your celebrated growers these are volatile right he's -- stuff you hold firm.
-- months three months again on sometimes it's.
I'm -- long as -- RS shorter.
It just depends on where the movement has.
And they any is there are names are kind of a note at a -- there S curve oppressor we're gonna see rapid growth -- -- And then one of the names that we recently picked up was Monsanto now Munson is a biotechnology company.
That's a leader in scenes and we have a problem in the world because we have a certain amount of the farmland and -- farmland is actually contracting.
And and we have according the UN one point five billion people coming on the planet -- the next you know twenty years.
How -- you feed them -- well Monsanto is the answer you know Monty as a coming that you do well in any market environment we have to eat.
Another interesting point about you know if you look emerging markets.
He's feeling more money in the pocket and so they're spending more and they're putting -- -- they're buying more -- you know and kick -- -- in the and more protein in the diets.
Is there -- -- question on she guys you know how many pounds of grain it takes.
Produce one pound of -- I would think well I I don't know actually hadn't really thought about that if it's sixty pounds of grain except if you think about the -- -- the 2.5 billion people.
You know in in China India.
It's gonna have a dramatic impact -- on them aren't going ports among we like months now long term it's usually traded about a 60% premium to market over the last five years.
And it's only a slight premium today standing we gotta run and you like cart next to you mentioned that it in year emerging franchises look at people learn more about capital advisors -- get our website at WWW.
OX dot com that's a beautiful candidate to your mind that if I think -- CarMax deceptive analysis.
They sell used cars yet know -- approach climax book big volume that -- -- -- -- here it is it's an expensive you wanna take it and right now obviously is.
There's a market for used cars and -- cars as we know this from learning a lot about the car industry.
With what happened with all of the these bankruptcies when they make a lot more money these -- dealerships on used cars than they do unused cards.
-- cars they -- the use caller this is all right we were looking at foxbusiness.com earlier.
So yes better stories I -- you've done a good story that you enjoyed.
Comets they would highlights a Kathryn glass relate it very interesting story.
On the publishing you -- industry.
And how they're trying to break through the clutter trying to give -- a little bit of value added to their advertisers and one way they're doing is -- augmented reality it's not really new technology been around about ten years but magazines -- -- -- gravitate toward it because.
-- they just have decreasing ad revenue right now what this technology is essentially -- cover of -- magazine.
-- I know a couple of them Esquire in style magazine has -- out of this month.
They covered he put it up here -- web cam on your camera on your computer on the computer screen.
You see something different that in the 3-D type of technology that comes about it yet it's -- -- kids' toys and -- in the cover different from the yet advertisement inside the magazine.
You know after and that the writer of the article actually -- and he said.
I'm not sure whether this thing's gonna take off or not kinda cool but what does it really bring.
The advertiser right now you -- the download an app on your computer in order to use it.
The -- might really come into play here is -- with the iPhone.
You can have your iPhone and it's the war and there's some cool things on the covers of magazines you can kind of take out while you're there and -- you're moving.
That's fine but other than that but we've seen that Google apps right where you can you.
Use your iPhone to get a picture the but the bar coded bar code many to figure out where it is that -- -- probably coming.
So anyways is very interesting article about it whether it will save or at least help stave off the decline of the print industry in terms of advertising.
Yet because it's all I must say though you get a McClatchy saying ad revenue coming up and vote is still pretty thick magazine I mean they're -- have a terrible set high and he was cheaper than advertising is not yet again.
It's -- I love this story so.
You gotta go to property room dot com this is a site it's an auction site for stolen goods swear.
So this is also that the law enforcement has gathered and that they haven't been able to get back -- that one how hard they try but -- but that's -- -- -- so they get all this stuff that was founded in 1999 by a former police officer.
And they put it out there and they auction it off and there's some pretty decent so there's like -- two dozen or BMW motorcycle on the thing but that was pretty cool.
Mean you can imagine that if anything they -- and some body.
-- -- -- The cops don't try at all to give -- away he doesn't think Miami and Indian claimant then they're gonna auction off I'm gonna go on that website and check it out -- it is critical of them.
-- check it out good story on our site but you remembered deal it's pretty -- was funny because the prices -- -- the BMW motorcycle.
-- praise for 8600 is being auctioned for fourth.
Out nominee having that health care out of timeouts.
Go to you know what solicited in the property room dot content that we that I want help they're coming up -- -- talk about.
Buying a vacation home.
Is this a good investment right now this is in Turks and caicos -- one out of my first -- to see you.
Humans and think it would.
-- welcome back to foxbusiness.com.
Live twelve almost twelve point five on the East Coast nine point five on the West Coast good morning to all of you out there.
It's getting cold here on the West Coast so I hope it's nice ones and then the market is down 97 points this is a little bit of the reverse.
And trend that we knew and I usually see during the noon hour here -- means we can't put the market -- we do have so -- today.
It's all about that dollar again at two dollars -- her in this market of course seen.
What's happening with gold and oil and all that playing into this as well -- now though rich Edson.
Couldn't by the way it's I'm going to need your full blown support when I officially Steve -- a little black across the head for all the Jersey comments.
Yeah man with them I don't know I don't know -- this attitude I don't know what's going on its easiest thing as soft balls Kwame.
It's getting out.
And I know slash New Jersey as a matter of fact -- even accept your studio soon get him from both sat on it if it's good TV -- all Floyd do you think to really pick on Long Island.
I'm on Long Island you wanna if you do that you know let's go let's go the other way -- -- that volleys -- run at.
The no -- there.
Well they've decided on the senate lawyer that they're gonna work out all their health care differences by a big dictionary tournament that should be generated.
The next ninety minutes or so exactly what -- the most logical things -- come out of England.
And now they'll be really exciting we -- Max Baucus is -- -- of majority of them could instances.
But -- it seriously either in their caucus lunches right now Democrats.
Republicans they get together and they scheme about what they're going to do -- over the next week and what their tactics going to be for Republicans.
Other tactic is really been to attack these Medicare cuts that Democrats proposed by cutting about a half trillion dollars from Medicare.
Democrats call it wasteful Republicans say -- lead to cuts in services.
And they've been stuck on that for quite some time will also probably get a vote later this afternoon.
On an amendment that would banned federal spending on abortions that something that was really big over on the house side they added that -- before they pass their bill this is something.
The senate will consider later today and it's questionable as to whether it might past and may have to that might fail later today they may have to work out a compromise.
Wanted to know -- been working on this in the senate this you know people on Capitol Hill -- working on this the last few days but it really has taken a backseat.
Mom and whether it's through the conference and -- and Hagan whether it was the president's war plan last week.
On the BC yes and he's confident in the house I mean seemingly everything else has been talking about more than health care what's what's -- On this longer term as we get closer to Christmas in the new year ended January.
It never underestimate how much of a lightning rod BCS can be especially this time of year especially on the house floor I mean think about all the representatives from SEC states but you know what what what you're looking at here is finally something else.
To cover and it's the president now really and along with Democrats.
You know while we've been talking health care since the summer.
Unemployment has reached and surpassed 10% it's now 10%.
Have been messaging health care health care health care this is going to help save the economy.
What did you know most Americans -- like the look I don't necessarily need to health care right now -- I need help here but I also need jobs and so that's something that that Democrats of excuse me can -- this -- That's something the Democrats have certainly been focused on and now they wanna let the whole world -- what we're focused on this as well and we can multitask so you know with the initiatives coming out of the White House today.
Democrats are talking about this last week and the week before they want to show that they haven't forgotten about the economy.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Senate banking committee chair Chris Dodd announced the date that the committee will vote for Ben Bernanke's reappointment looks like it's December 17.
And that it happened that's it I mean -- it -- sure thing Ben's plan in the act congratulatory parties.
I wouldn't say it's a sure thing but it's it's probably likely it's it's hard -- -- did not Democrats and actually -- on the committee.
And and vote against his nomination and -- even Republicans to remember he was first appointed by Republican president.
But you know there there are significant problems with the way that it's the Federal Reserve first of all hander could handle consumer issues when it comes to credit cards.
-- a Federal Reserve handled everything from my AIG to.
When it seemed as though the economy was on fire about a year and a half ago so a lot of -- -- taking issue with Ben Bernanke.
And the Federal Reserve they may not take aim here and cost him his job but they're trying to cost the Fed some of its power and oversight authority and subjected to further audits that.
May come down the road as the senate begins to right its financial regulations.
Let's thank you so much and am waiting for you to make my full blown attack on Cotter against the known around the Jersey is -- do.
Don't do wearing a Mets Jersey because we got nothing there so.
You'll lose in that attempt anyway -- -- if you can't sell out you feel bad echo Reston.
I don't know what.
And the tenacity undermining that -- that -- aren't you taking a separate thank you so much for that decision.
I mean it's gonna look like I have to say it's -- -- -- -- -- I didn't although Chileans but Cincinnati -- in space.
Might be some and that the interest in a little weightlessness and -- kind of messy -- virgin galactic announcing did you see this plane.
Yes six passenger space plane now that Richard Bronson say something Richard Bronson is right up there.
This is Richard Bronson you have an -- Brett favre's probably ill George Clooney and -- the greatest and -- yet Brett Favre.
To be the football hero deal with a play as well as he's playing at his age any -- I would love to be able to do that he lives his life the way he wants to going on -- fish and I.
Except their grandmother and clued me -- get that at -- hot and that sexy because I don't mean because he's two months.
Looks at a highly -- he -- -- thing too that's.
That's smile like he is a guy -- -- 200000 dollars a ticket for two and a half hour flight five minutes of weightlessness and space and they've got people -- lined up to buy these ticket how much is a ticket 200000 dollars a ticket.
On it looks like -- called -- -- two looks like it's gonna take its initial flight in 2011.
And that's it you're ready to go through rigorous testing and it is certainly are gonna be concerned about safety when you maybe sensibly at the space.
You've got to be blood done.
It demand that's a lot of money but Richard Branson and -- have you seen Richard Branson's island home he -- like his own island and all the health of all things Richard Branson among likely secret crazy obsessed you know the best part about his house that they've got sicker and belatedly MTV -- -- in his house ha.
He's got a throne and you know what I mean about -- round that is outside and overlooks the ocean.
And I -- I -- -- basically outside it is as the most beautiful available time are you kidding me that's what Richard Branson is right there if you Hefner and Richard.
Right I haven't even -- -- -- I know that that's hey you know what I agree with that 100 ethernet.
It caught -- he said it was the hottest -- plane at her and I tell you what if I just don't you think -- next.
And I had 200 grand -- go billions of dollars for Richard Branson I do it overlooked in the field.
Hi welcome back fact that this upcoming announcement that one of my favorite places and brown takes -- -- this.
-- -- -- -- Applaud you wanted -- -- Get it.
-- do -- CEO of gray grace today resorts is here to talk to us about.
-- -- -- In world is doing how other rental property vacation property world is doing now.
To meet your ex is an exception because it's just gorgeous and that's why wouldn't -- -- go but that being said people are unemployed people are struggling are you still seeing.
People swarm down there.
Well we -- it depends if we're talking about the real estate markets this the second domestic -- it's -- we've had.
Up to about 2007 had a tremendous run it was just one of those destinations that kind of burst onto the scene.
And for the past five or six years we just had nonstop talk about the Turks and caicos but.
Invariably we follow the -- did the real estate market in the United States so they kind of challenges -- the United States we feel those as well it's good news is we've ever had area.
We never had an over development situation again and the US that we have really improved -- environment where everything's really high quality.
The approach is very much -- handmade approach to real estate in and hospitality and I can deter system coming and what's happened though.
Is that -- -- -- the past five years really interesting.
-- it's you eat it situation was that between 20022007.
He had -- buyers coming and buying world class real estate on beautiful beaches and just as long as a hotel component was really running well.
Those owners got the benefit of revenue.
And they -- and it benefited use of their units for you to their residences 3045 days a year.
And then in addition -- that they were able to they were able to to generate some cash flow.
What's happened now of course that 45 years there's been capital go to someone -- region of forty to 50%.
What's happened now though is there's been -- reset button push.
And so that numbers come back down.
Andy -- thing came out that is announced opera it's it's open up a huge amount of opportunity for those who want to be.
Get into the estate business to get into the real estate market because they're able to buy -- 2002.
Is that are those people original people underwater now and I cannot now.
There those numbers weren't whereas it would have been maybe 50s60s probably down ten to twenty and they still have -- capital growth -- they did is over the course of five years they've enjoyed this.
Residential haven -- -- -- -- use it 3045 days a year they're also able to pay all it costs because as a hotel operator.
We're able to create an environment -- revenue streams -- fairly steady.
Right now OK it.
Turks and -- as you say and -- location is key here.
Accident how would that does an investor know that it isn't gonna become the next Cancun.
Or that it's going to be over to the -- -- on -- gun.
Well look this is what I'm saying that if if if it's if it's the ideal destination and -- one's gonna wanna go there -- one's gonna wanna stand there and build and build and build and suddenly it's not the same place it was.
-- invested five years ago.
Well we've never had we've really been a big developments that very controlled -- don't have tall buildings we have a -- -- and -- -- -- -- buildings to five stories.
The -- is scarce.
It just we we historically have -- of the largest property of the development -- on on the island was someone -- region I'm -- keys.
We're not talking about 607 room hotels and whole different approach to hospitality into this residential development.
So we don't we don't feel that happening certain on the short term -- -- that could always happening destination we don't see that happening it's it's very much and we took.
This is -- is -- good when I went on your site and it's sad that kids under twelve eat free and since I have like a thousand of them.
And I think that the per pound and I didn't hear.
I have three but they everything -- have people with them make me -- kids -- peeps yeah but still but that being said.
You -- are starting to attract families down there.
-- have been a big big part of our business for a long time the kids eat free concept is really we wanna create high and experience and it's did did the parents arrive.
They get what class residential experience the hotel is managed by very very high -- professional group and -- -- and the kids are really men we have a kids club -- a VIP PIK.
Very important kids' clubs that kids are writing it.
I'm robe and cap and we have -- kids coordinator who manages the entire process that really for the for the parents it's it's it's -- really and some really hassle free way to abdication.
-- people are -- with their money right now and even people that are well to do are scared people that might be interest in -- second home.
Why would they go offshore.
And deal with the extra risks associated with that when they they're probably good real estate deals even here in the states in terms of just that had a pure investment -- why does it make sense to do that now.
Well there's certainly a lot of good plays and in the United States that right now they do the short answer is that this is a once in a lifetime one of a kind kind of product.
You drive and -- -- business and we had a lot of people from this jurisdiction come as destinations when most beautiful beaches you can never ever fine.
You can walk on -- speech at any given time during an entire year and be one of very few people on that beach.
So -- one of a kind product and it's not going to be it's not built and it's not created.
In mass quantity so there's there's potential for real strong.
-- maintenance of capital growth of capital.
We've had very very little very few losses if any in the distant destination.
And the construction that we have down there is really really sounds really easy for him and North American citizen.
To understand legally and -- -- structure of ownership almost things are really good we have a great -- infrastructure we have -- -- government that access is superb same type flight tonight from here to.
Two Turks is the same as it is from here to Miami -- three hours directing on the beach in ten minutes.
For some people that's a really big deal and if -- -- going to resort where -- really -- -- very few people it becomes an exclusive environment becomes something is really quite.
Quite almost and he keeps these.
He knew that I found -- because I travel alone with my kids and it was simple we were ten minutes from the airport it was wonderful and it wasn't a hassle and I think that is key.
But what what about the hotels and the visitors have you seen any kind of drop laughter office had to have -- but clearly have to felt something.
What -- hotel industry across the board whether we're in Europe as Turks and caicos the United States as it is is felt impacts of the session.
There's no question about about what we've seen is really an approach to trying to create.
Value added environments where you right you get.
We will two nights for the price of three -- the price of two there's other things thrown in but there's really.
And hand me hospitality and still continues but -- -- -- numbers are down.
But they're not down so much that our country is in in dire straits we are working hard to get -- and that and we see some positive things -- the horizon.
Travel agents are talking more positively than they were last year there's more activity we're actually pre -- 40% ahead of last not last year's numbers for Christmas.
-- your website you wouldn't go to learn more about respect grace they club dot com beautiful -- decision thank you can't really at peace -- and -- -- -- -- and caicos.
Check it out we all need a vacation lawyer knows that what Tracy's in unity over the last the -- days.
I can I united.
On that -- you -- -- that Chile for now I'll -- directed her political picture by the -- -- tells me since announcing.
I did not only -- -- and it is exactly why you need a loyal -- that overlooks the know what goes yeah I had all day long by a -- -- -- -- when we get finished here that it fight it -- taken as I can actually get -- John knows the -- like there's still.
And -- some -- -- worth any amount of money right now.
All right thanks for joining.
I'm a little bit it's only down 85 of those who have we will we started it up about Erickson not really down 85 points we'll see everybody that while the -- -- --
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