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-- Wednesday happy hump day I can say that this is congressman here.
The Dow -- up 130 points why well because the Dow was -- -- 160 points yesterday has pretty much -- I got Korea.
That and -- bank America is down today no surprise all the foreclosure mess all the news we're hearing about -- resuming -- not they're getting sued.
What do you talk about the put backs.
That we've been hearing all about later -- Mac is gonna be here Boeing is up believe it or not.
I don't knows Miami's it's actually take that back there's like four planes available these days in the old jam -- so I guess it -- -- it looks like people are flying with -- swung to profit they -- -- the -- 363 million.
We're about 43 cents a share.
And -- shares are up 8% today go figure also -- you have.
Wells Fargo profit climbing 3%.
Their loan loss provisions -- -- this is sort of a theme we've been hearing.
Morgan Stanley though their net profit down 67% again on the securities business that we heard yesterday Goldman Sachs saying they're trading does not doing so great.
More of -- now saying the same thing.
So -- third quarter earnings fell.
Institutional securities unit revenue plunged 42%.
Not good shares -- only up -- 2% today.
Give me earlier today -- and I had to print this out you can see this the US marshals.
This little -- here for -- US marshals.
Are going to auction off.
-- certain jewelry antiques and other personal property of wait for it.
-- Darnell and Ruth Madoff now.
-- authorities -- personal property why do you care you don't care actually except that the proceeds go to the victims so that's something.
Think part of you don't care about is why the guys my grand slippers are on the list and why anyone -- in their right mind would -- them.
That's the -- -- -- come on now really.
There's slippers there's a grand piano there's a diamond ring this part actually intrigues me a -- knew he'd get -- so I guess you got to presume its roots.
We really can't receive anything -- -- -- with a heck knows that belongs to.
-- so I'm in case you're interested in November 13.
They'll be an option.
Live and not and online.
Right here in New York City courtesy -- the United States marshals.
Kids -- -- make this stuff.
We got more about the market actually Jackman and it is here with us right now he's -- it.
It's it's it's funny but it's true that's the irony is that something isn't it says that it was -- about this market because I loved reading notes because you were very honest you said.
I don't know why the stock market is up.
Well there there's one school of thought during bad times people spend money that they have to feel good and alcohol tobacco sales are all up but.
That's just -- aside.
And so I was CI AG is a pleasant sounding like that Altria a tree had good numbers today to we are seeing a rally in spending we are not seeing a rally in credit lending -- we are seeing a rally in spending and I think one of the best examples of that is apple.
In recessionary times people substitute consumer spending.
For large purchases a large vacations than.
It visited the train of thought sort of is we can't afford to go on vacation this year we can't afford the time fair we can't afford the trip to Paris.
But we'll take the kids to the Apple Store and get the -- and I thought.
That's fine and I understand that but at the same time we're not seeing -- across the board and Apple's an enigma.
Or an anomaly I should say your -- and always has been great so worker okay -- ever going.
You know people can make their mortgage payments that they have the iPad clearly we four point one million were sold in this last quarter.
-- -- it I'm not sure where this spending.
Is coming from.
Well the good news bad and is then talk about this a lot with my clients and my advisors the good news bad and is is you have 18% real unemployment unemployment plus underemployment in the people stop looking.
And we need to focus on that but the other side of the coin is 82% of people are employed.
And the 82% that are employed.
The top 1%.
Of wealthy account for about 35% of consumer spending.
So the good news bad news is we've got 18% that are unemployed and that's a serious serious problem right now.
But the other side of the Koran is the wealthy who have money are continuing to spend it.
OK because you -- stocks likely the time ever today and Burberry also do very well there's a waiting list to get the new Bentley but fair enough but.
With the numbers we're seeing -- of these banks stocks.
Do you think that is gonna and because there wasn't time -- if -- -- sort of feel like me we are off to the races again.
We're getting information -- -- these bank companies that.
They still have toxic assets.
Sitting on their balance sheets like as Elizabeth MacDonald said yesterday.
Planes on -- runway that can't get off the ground threat so we have these -- assets we can't sell we have this mortgage mess that's going to continue.
Are we getting word from the banks that things there's not really rosy at all.
I I think politically the Fed does not want those assets out there.
There's approximately four and a half to five million unsold homes that are actively listed.
And what is commonly referred to as the shadow in territory Banco real estate.
Is another two and a half to three million in the bank earnings that you're seeing are totally artificial.
You know if I charge you fourteen basis points and you loan it to the federal government that 270 basis points you're in good shape.
And banks and corporations are sitting on over four trillion of cash.
That all they're doing to the detriment of the tax -- if taxpayers should be outraged about this.
Because the tax pair who put the money into the system for the financial rescue and the TARP bailout.
And now these corporations and in particular the banks are sitting on trillions of dollars of cash.
That -- effectively borrowing from the Fed at 1415.
Basis points and they're turning around and reinvesting it in treasuries.
At 250 to 270 basis points instead of taking that money in loaning it to -- -- -- You be mad at the banks the bank -- -- the banks are doing what's right for their shareholders it's not right for them right now at least they don't feel it's right to make loans it's uncertain environment.
-- be able to get a little eight got a little money with this industry flow back and forth here.
Defense set them up for this the Fed created this mess that the banks.
Though -- you're you're actually correct the Fed did created in in in my opinion the federal government created the real the real origin of this is is FEMA and I'm not referring to.
The hurricane people referring to the financial institution and modernization act.
Which was run through congress by none other than Chuck Schumer and Barney Frank.
The guys who now want you to believe that they're trying to -- at -- -- absolutely it's it's it's it's the worst hypocrisy there is that right because.
The two people who created this problem to begin with -- actually to think people who are now trying to fix it.
I -- I didn't taxpayers.
Outraged because and I'm hoping presuming we're gonna see that come November.
Well look whether we got -- money somewhere right we have 32 million dollars spot anywhere from.
Three to five trillion is what I've heard on the sidelines.
It's actually closer to seven now mutual fund assets oh investor at fund investor cash -- or about three trillion.
And cash held by corporations is about four trillion so there's some of seven trillion of cash sitting on the sidelines not working and you mentioned the banks are doing what's right for the stockholders.
What we all need to remember there were all Americans were all in this together and stockholders are also consumers.
And consumers are also taxpayers.
And through TARP in some of these other measures.
The same taxpayers that are hurting are the same taxpayers who put up and in Miami Florida JIT wouldn't consider I don't -- a desperation factor and really that's my.
Eke out some money somewhere so you know and there is this soft and the notion that the market will take off.
Or move at least after these elections so people should think about getting some of that back in there at and I know that you -- the commodities -- many people do.
Sugar all time high copper zinc hit those there and meet these these are high priced commodities right now you still think it was to be getting into them.
Absolutely let me let me share with you -- story of the number one performing asset class for the last ten years has been commodities.
Guess what the worst performing asset class has been for the last ten years equities -- specifically.
Large cap US equities.
Where -- most mutual fund managers have their money.
Large cap US equities.
So if you're going to be successful in this market you need to think outside the box and there's two ways we think outside the box.
-- keeper clients out of large cap we focus on midcap and small cap.
And the number one place to be right now is commodities we have a worldwide thing is about -- No absolutely not let's talk about blacks have quickly though because -- -- said that the dividends these stocks are giving lately.
The dividends are relevant their price performance that has been the -- for the last ten why isn't relevant if I can get it 545%.
Dividend as opposed to putting my money in treasuries actually think that's a better deal.
Well that's say it if you're practicing what I call buy and hold which I don't recommend.
That same philosophy.
Would have cost you 30% in your price valuation.
For the last ten years because for the last ten years the S&P 500 is down 30% thirty year you're you're gonna you're gonna tell me you're gonna accept the 30% haircut.
To your investment in that statement they could -- dividend rate that we can't break right now let's talk internationally quickly which countries in particular.
Absolutely loved Latin America South America.
We have a big position and -- the Latin and South America -- -- right.
And we like.
-- -- -- so it's a way to participate.
In a broad market basket of Asian stocks and eliminate Japan which is of course that would go in Latin America who doesn't love Latin America Jack I didn't thank you so much for being with us and sharing thank you for having that.
Dow's -- plunging 55 points.
We're gonna take a break Elizabeth -- will be here we get back at some point talking about.
What's going out Bank of America what.
And everything right now it is really important we'll be right back.
I'm expecting and I I'm Tracy -- and out of -- 152 points.
As I mentioned earlier didn't we -- some decent earnings.
Morgan Stanley not one of them know.
Boeing delta all come in pretty good actually Boeing what I have biggest movers on the market today Bank of America what is -- biggest losers.
-- he also had Wells Fargo up.
They -- their loan loss provisions fell which is a good thing.
We talked about Austria in this segment before he was -- buying cigarettes cigarettes and alcoholic -- -- -- no matter what happens good times and bad very.
We can't go out -- -- just go right now.
We were also talking about about lending is getting so difficult and small businesses in particular having a really difficult time.
Getting loans to expand their businesses.
-- shot is with us right now to talk about micro lending and micro financing from -- thank you for being with us.
Thanks for -- -- first tell -- everybody what micro lending or micro financing is exactly.
Sure so -- I help run a nonprofit organization called -- And -- operates a web -- would that allows people to make micro loans to small businesses all around the world.
And the reason why a small business that you would want -- -- -- is because.
You can't get access sometimes for -- for a larger loan from one of the mainstream banks so you know.
That person and you've gone -- -- sabaya Cowell to start a dairy business you can lend money to her.
As she can -- that -- starts -- -- business she can repay that loan you can get that money back and then re lend it to some -- entrepreneur.
Here in the US we know that.
Credit is tight.
It's typical -- a small business sometimes to get access to capital to to maybe buy some inventory hire another employee.
And so micro loans might be that solution for you.
To basically they're not they're just little loans rates -- a little small businesses around the world that does need a little edge.
That's right you know an end here in the United States he might find that's.
You know -- -- benefits in two ways -- is he gives you that cash injection a lot of times.
You know the mainstream banks might not make loans underneath 50000 dollars.
But you only need 7000 dollars or 101000 dollars to buy that cash register or that deep Fryer.
Or you know some small equipment to just get your business off the ground.
So it helps you with that cash injection second it helped to build -- commercial credit history and eventually you can graduate to.
A larger loan from one the main -- -- Thanks so there -- limitations on you know the size of my company like -- I have to have at certain amount of revenues -- -- And under any that you would think it was an up.
You know typically micro loans -- below 50000 dollars and the average micro loan on the -- website today.
For US entrepreneurs -- 7000 dollars now what we're learning is that people -- talking to small businesses out there.
It's such a powerful.
Benefit the people don't know about it and so we've just launches partnership with visa today.
He's everyone knows about visa.
And and together is a nonprofit Cuban -- what we're trying to do spread awareness about this so that you can go to now we have an online resource center.
-- dot org slash visa.
And if you're small business out there you can actually go and learn about how Michael loans work if it's right for you and how you actually apply for one it can be great help.
If you're struggling right now.
Did you start this yourself because I know fortune named you one of the forty under forty.
Didn't is this what this year and little brains out.
You know it's a group are dreamers here in San Francisco and Silicon Valley.
That was wondering what if you can combine the Internet.
With micro finance what if people can make you loan to someone.
In Uganda or in Houston Texas or in Honduras over the Internet using things as simple as you know -- credit card.
-- you know photos on the Internet business profiles it's kind of like match dot com.
Meets micro finance and you know I have no that's amazing how it's grown there's no -- man -- there's no real man.
You know -- things is often missing in philanthropy.
Is that you don't know where your money goes you can't connect directly with that person who's benefiting from your help.
Second with because it's a loan and not a donation there's real accountability there you're not giving away your money you actually getting repaid.
Because -- business is working and -- keep the website today there's a 90% repayment -- and then you can help someone else with a 25 bucks.
That I think that's really cool.
Crennel thinks so much for bringing this story doesn't it website is -- that KI -- dot org.
-- -- president and I guess bam they're right.
One of who -- literally hundreds -- that now I know you've been so modest criminal thanks so much for sharing this story.
And hopefully be more people come check it out get loads and keep that entrepreneurial spark -- and thanks for having me thank you from.
I think that's really cool check it out keep -- KI EA dot org.
You gotta do yourself in this economy can't rely on the -- get a loan clearly the -- Ireland.
And who need them when he -- up like this to get out.
All right one of the things that has changed through this whole recession and we've talked about this before here is that.
You're buying patterns you're spending patterns totally different and they probably -- changed forever.
-- -- they used to be very proud of the fact that they shopped at -- now are going to target today and get discounts.
John there's been.
-- dissident -- -- president of brand -- consulting is here with us right now to talk about this John it's -- -- we've changed forever.
Absolutely Trace him and we looked at our data from brand that's of value -- 82%.
Of Americans and some of the crisis has fundamentally change the way that they're gonna spend their time and their money.
82% 83% of Americans so -- that cuts across all types of -- demographics and income including the richest wells people in the middle class people are really readjusting their spending.
It's almost become -- great to say I got something on -- absolutely as opposed it would be taboo in the past -- -- -- before thrift was sort of -- is is cheap and Rite -- to match.
Right so was so.
Let's start with this consumer.
What are they doing differently where are they shopping.
OK so first thing we have to look at is that the consumer -- 70%.
Or so of America's -- -- Into places like Costco as they look for more investments but they're also doing something pretty interesting that we looked at -- called cooperative consumerism.
Which means if they're banding together.
To drive down prices and to get better deals.
We spent time in interviewing Andrew Mason the founder of a group on Franciscans think he's building you know amazing business over the last year and a half or so.
This is a profound movement you've got social media tools now that allow consumers to band together.
Tonight we drive prices but also connect with companies whose values match their -- We haven't we had some -- -- today and -- on the -- you come to me.
I can flag -- he's -- I can sell products and recommend them and basically get a cut of it.
There's all of that going on to -- there's all this commerce going on on the web brag just sit home and I -- -- sort of make collection pocket saints absolute.
-- one of the things we did for the the book as we spent some time with people -- -- -- lovers -- lovers in Tampa for example basically organized they're spending to reinforce businesses.
For whose values they think that their own so again it's almost a scaling effect and you know really consumer can get together and on this values peace and he was interesting you know when people talked about it was about.
I want to support companies who -- about thrift to about self reliance who are about stewardship -- a lot of these things were happening at the grassroots level.
So it's interesting right now I want I don't want to support the big -- that corporation nor do -- Very big strong local movement we spent time in Detroit where the average price of housing inner city Detroit is 181000 dollars and yet we found amazing entrepreneurs.
They -- building local businesses there creating sort of virtuous circle.
Basically trying to drive people back into the inner city to shop in their restaurants to help support the local economy but what if I am a big business.
Had to like get people to buy my products have come to my business well you know for the book suspension could also interviewed across fifty different companies we -- lots of big companies as well innovative companies like Wal-Mart with its eleven -- program.
If you look at the word mommy blogger basically search and you'll find millions and millions of hits there force.
What they've done with mommy bloggers is create an external sort of advisory board for Wal-Mart.
Microsoft spent time with them last week in Redmond then and elevate America program where they're basically taking -- IT training and helping to.
Retrain two million Americans so this I think the sense that we're seeing in the mean that this new shift is this move toward value and values.
Where the consumers looking to corporations to do the right thing and in return they're gonna give them dollars -- -- -- I think they want to think they have.
I think it's shifting you know I think we're getting into an era past sort of corporate social responsibility.
Maybe this is CSR 2.0.
You know where we're moving past corporate social responsibility is an initiative into what drives -- business model.
In many of the start ups that we interviewed.
If companies like at -- Brooklyn.
You know companies like blue homes in Waltham Massachusetts are all focused on trying to have a very strong value proposition.
The guys -- business model.
We even talked about the so green movement for awhile -- now -- -- still have legs spending a lot of people -- kind of disheartened by this whole green thing yet what we saw our data as it is that consumers definitely wanna support -- companies but they don't want to pay for it yes so you know fishing company in Brooklyn we interviewed recycle bank.
It's basically all of their -- really -- here you know -- get a releasing company and we interviewed him for the book and some people but the basically.
RFID chips that are installed on to your recycle bins.
Kicks back money into your accountant you basically get frequent flyer points for recycling but it's actually genius like something like that -- -- worth it because not pockets -- me.
Right right and I get something exactly -- you're rewarded for doing things and you feel good about doing in the process.
Is that the way of the future now we're gonna have to start seeing more and more of this like you know for example is we know boasts.
They -- pants but they've taken up the good -- you know monkey as their cause so.
Donations go to -- so there's this piece of you that feels like.
I'm doing a little good 71% of American -- actively support companies whose values match the room so I think that becomes a really guiding force for today's post crisis economy.
So OK so as a company these days I need a voice other than.
And -- and turns trying to -- I need a voice I need bent some sort of cause.
I think so I think you need to look.
Beyond your shareholders through their incredibly important but you to think about your stakeholders -- were.
Your employees -- other people in and you were in your value chain and I think what we're seeing a lot of these business models is his taking that cause of what you stand for your mission in your vision.
Putting that the senator company.
We spent time with them -- -- zappos fantastic company.
They're driven by customer service but at the core of their business model our values around what their culture wants to be and how that manifest.
-- turning inward as well lean on me a lot of people in our chat are very skeptical that you know I could easily say you ethics are coming back -- But no one will believe me prices.
Are they -- for turning inward and saying OK let's make sure employees are happy.
Because that then.
Makes -- -- -- Absolutely and I think you're seeing the rise of individuals and institutions really defined companies.
We spent time with Scott Monty -- of social media portrays me in a really big difference.
As they look at bringing out new products of the marketplace do you think corporate ethics coming back even unknowns and -- Well we consumers what you said the consumer definitely wants that again so kindness and empathy grow in our study over the last two years by fourfold.
So consumer kindness and the thing being things I want right as a nominee and her friend yeah I I want this company to understand me I want them to understand the context and and so.
You know that drove the success perhaps -- part of a nice fire -- program these types of gestures -- concerned.
Kind of an entity that something -- -- an ad I think it would Byrd.
Donna Brazile thank you so much for being with -- space tourism president of brand ascent consulting.
And -- they're expensive we certainly have shifted hopefully we stay that way.
We don't go back to our.
It's just three weeks we can't break right now was the McDonald's here as promised to explain what that -- -- -- is an all that foreclosure up.
Out of -- 155 points there.
-- Wednesday welcomed at the end live -- Tracy -- as a 105 points wearing green today we were in the red yesterday said that shouldn't surprise anybody that we bounce back -- little -- Morgan Stanley.
Earnings today not so great Wells Fargo on the flip -- looked a little bit better -- that they're not serving as much for losses.
Altria Boeing delta often really good things it would still smoking -- -- figure can I smoke on the plane now.
Them and it.
Think that's right and also as a reminder on November 13 the US.
-- -- are holding an auction block.
-- slippers -- and they say that sleepers to think that.
Bernie Madoff and I know Elizabeth MacDonald is going to get -- to bid on the Bernie Madoff slippers I think you really.
Come on breaking news -- apple and not be Florida he's -- Property including his slippers that it really.
Why would why would anybody -- -- -- with the -- it is Smart person I don't know.
Iraq now there isn't a question.
Why would I month I don't in my -- children slippers trying to and I love that that part -- -- -- -- over -- to -- -- protests and look at different.
So he's having but it definitely added if anything an engagement ring belong to so is it -- Or could not -- About eagle engagement -- it doesn't see that -- recently maybe it's just not in here but it does not say that it is or not I don't think -- vehicles.
That's as hard as far as we do not tell us -- make -- push back is okay.
What they're -- that is essentially is you know all these bad loans through created.
Predatory loans -- the problem and also predatory mortgage bonds and it's really that bonds yet what's going on is is that.
Fannie Mae and Freddie Mac until -- -- -- look you know if we have any of those -- bonds are rotten loans we're gonna force the banks to take them back because they underwrote them.
Hey you know basically built these loans have built these -- and they they didn't do them properly but lately what makes a lot of and makes them -- is essentially is there's very -- documentation that they.
That's it that is -- -- key question is is a big court battle.
That is going to break up can Bank of America of the New York Fed's and black rock Freddie Mac based on a letter that was sent to.
Bank of America and countrywide and at Bank of New York this alleging that they -- as material misrepresentation.
In the loans that were used to build these -- and they're they're -- sixteen point five billion dollars.
Put back two countrywide and to bank -- your -- Essentially alleging that book.
-- did not properly liquidate these defaulting loans that time you sat on them in order to inflate your profits to get that certain cities in it to work.
It would be close allegedly was so bad that the bond insurers such as and the diet and that would not pay out in -- these funds and you know so.
You did it to -- yourself that's the letter but is saying -- buyer -- I mean isn't there again aspect of that yes and there's reports out there ready that countrywide mortgage bonds.
The disclosure of political elements and look these are really probably really bad -- quality loans.
So you know -- this is definitely laundromat.
But what's interesting to me isn't talking to the New York fed which again is overseeing one -- trillion dollars in mortgage backed securities that they picked up to help out with the crisis.
There's telling Fox Business that hey if we see any losses there Fannie Mae and Freddie Mac as guarantors they -- that we're -- that -- to.
All of these that a lot of these mortgages and bonds -- have to put the loss -- Fannie Freddie are telling me that look we've got auditors reviewing records.
We're gonna see where they've lost the coming up and we will put those losses back onto the -- that the banks.
Up because we think we are conservative -- -- -- telling us that we're concerned should watch this that taxpayers taxpayers have to suffer more Desantis.
Fuzzy to me like it sounds like there's so let's -- for gray area here that the -- also when they came from it.
That's the question it's gonna hang on this legalese might write that death by accident went down to you know that great stuff -- these transactions -- you know which seems to happen cutting off it but when it comes down to -- in this political environment.
The government was -- Well here's the thing the FBI has been telling us that some time now and they told me that this morning that they've been investigating mortgage backed securities fraud on Wall -- since -- since 2008.
And we broke that story maverick 2009 that they were doing that.
You know the FBI and the answer Puerto the FBI is this the new front in the FBI's attack on court -- it's not the FBI's that is.
The White House says that up -- enforcement task force that specifically looking into mortgage fraud.
So this is of a piece of well what's don't know the -- scope of investigations criminal probes.
On Wall Street so I was always -- -- mind where the perp walks.
And he we had Angelo Mozilo settling with the SEC and here's what's going on and it points to you legalese question.
They these mortgage backed securities and these loans.
In an important month built on -- rather.
-- -- so complicated.
That they have terrorist agents that the FBI trying to read through them to sift through that to see who was responsible.
Who who was liable for the very that bonds and if the FBI is having difficulty figuring it out then you hit that Wall Street was Smart enough to write -- boilerplate.
-- -- disclosures to say look investor beware caveat emptor it's night crying shame Martha Stewart goes to prison.
For crack and we can't I went to prison for lying to find -- -- -- -- -- -- I -- like what -- -- Yeah -- let me just get back up.
Recently the FBI is telling us updates on terror speeches because never in the Muslim world there it's like schools political column laws that -- sorts -- things -- -- -- analyst -- -- -- more expects the bullet holes right and it's difficult to see the trees.
It's for the paper trail to see whose response worked so.
The centerpiece bank pressure bank earnings under pressure down the road part of what numbers are we talking about here with -- put backs.
You know any JPMorgan Chase low around 55 billion upwards of 120 billion -- is there but the key it's as you rightly point out.
It's a Supreme Court.
Of the great stuff illegally -- And those hits that come to the prompting fear itself right over it's it's right for a number of yours right right.
Question litigation costs -- and I mean.
Because that it does nothing for banks going forward to -- that just means.
-- banks are going to be ugly and reporting -- numbers for a long time that's right and Tracy I sort of think that this is the tail end of the crisis maybe media business and even if silver lining here really right after the crisis that this the cleanup.
So they take it if they of course and we're not yet.
That notes on the court battles and the mortgage bonds that -- -- -- quicken things up.
That's just stupid and -- makes sense that I can see clearly now the reuse them human diagram.
I can get you want to thank you and everything it's not my style is out there.
-- -- -- -- -- -- -- -- -- Well please let me check out one click here ten point five Canucks.
I network -- -- -- -- we got to go to break up the great I work.
-- -- -- Look good at BMI country to -- the death of a 150 points right now kind of hold steady.
The united talking about the it was announced get a day -- will isn't that Donald.
-- -- -- -- -- -- -- -- really funny and if anybody.
If the opportunity to go check it out -- was taken completely back in the green room he had no idea she pitches in a report -- -- or something they're throwing confetti there.
Actually really really and they're not many like stupid funny moments and here.
-- -- of a good yeah.
We have -- about this market because nobody knows what the heck is going on what I do know is that many people think that it will go up.
After the November 2 elections that being said.
-- three trillion dollars of us that are sitting on the -- probably should get their butts back in it let's figure out where to do it -- Daly is here portfolio manager of team asset strategy fund is that correct that's correct what's his finger on the T -- team -- CE eight and acts acts of the season.
Tells first about the fun.
We operate what's known as a global macro strategy so were.
Active across the globe and across asset -- is long and short so we are active in stocks bonds.
Commodities and currencies and are.
Stated objective is to generate absolute returns -- were trying to make money every counter possible -- -- to replace everywhere do anything go anywhere.
It's an all -- go for fun yet that more traditionally been prominent hedge fund area rather than mutual -- -- lunch or anything okay so woody.
Right now what -- seen it looks good.
While we think that it's time to be cautious in the very short term.
We think that the US dollar is likely put in -- bottom vertically vs the Euro.
Sentiments gotten very negative extremely bearish and we think that.
Whether it's gold which were actually heavily invested in.
And other things -- commodity related we think could suffer a setback in the short term which we think it's viable.
Sit commodities -- short term but up long term that's absolutely -- all of them.
Most of them -- that domestic natural gas with things a little bit different but across the board or -- right now actually is agriculture has been for some time.
As we we've talked some some department of and on but.
We -- like the green space.
Some of the other agricultural products we'll get your picks is that there's certainly one of them there let's talk about the -- he's staying away from now.
Right now a lot longer term we think any consumer related continues to be.
-- you're going to discretionary spending area.
They've had a big run since their bottom and 20082009.
Valuations -- -- there and we think that the the trend of deleveraging in the consumer is something that's gonna play out for another five -- actually.
Best buy those kinds of stocks -- -- from correct but it is apple fallen -- that is apple discretionary.
I think so I think that.
With all the coverage of the the banking system right now on the banking sector.
We've actually just -- the recently taken positions on the banks -- first time in a number of years and there's no greater contrast right now than between Bank of America and apple.
You're right and -- -- timeline right and I I think that apple is a company that's obviously doing great.
Their product cycles magnificent but there's an old saying there's only two types of companies those with problems and those that will have problems.
So everything right now is hitting on all cylinders for apple.
They are at.
You are an apple no we don't -- because.
And the things that apple for as long as I remember I mean I remember.
-- -- when and how far back but I remember owning the stock when I was still able to this that's why I'm thinking we're -- my career.
Right of the -- 86000 even then people -- it was too -- Let's -- Well -- that's the beauty of technology is that when you catch the cycle correctly.
Can go on for a long time just as it did for Microsoft.
You know my father tells me a story about his broker talk him out of by Microsoft in the early ninety's because it was too expensive.
-- but I.
It might have a flat line for that might have been a good thing -- not nearly -- that only -- record -- a major spurt that that's that certainly I think that apple is towards the enemy.
People talking about apple becoming the largest company in the world.
It's a consumer products company -- and it's a technology company if you look at prior product cycles whether it's.
Video games or computers you think about that the growth are there.
Technologies inherently volatile business warm -- let's talk about -- a lot because you can't think of is is apt given me the dollar consumer electronic product.
Company in ten years and -- -- -- -- -- -- -- -- history of -- history -- probably not because those companies that have been able to innovate.
They -- lifespan and just as AOL was the dominant innovator in the late ninety's.
-- took over.
And now some of them are trying to claw back where their job the other part is that it's it's.
Being -- technology business the -- are massive and that.
The -- margins for apple or or drinking ethic and that -- competition.
So to think that with the the huge competition that someone is not gonna come up with a better mousetrap they may not.
But also Steve Jobs has been a spearhead and while certainly wish him good health for a long time he's not a live forever.
Actually let's go back to your picks then you we talked for the -- stocks in terms haven't -- is one of them.
Commodities fertilizers we're gonna need it I guess.
Well -- there's a tremendous scarcity value I think that that's what the the battle over potash which is the the father of the industry so to speak it's a large cap name that a lot of people from -- -- it BHP is trying to purchase and there's a knows all kinds of issues going on there now.
But it -- that points to the fact that there's a limited amount of this.
Natural resource and that there are a lot of places where it is basically fertilizer.
I've -- -- -- that other materials that could turn in the fertilizer and and one more major themes is higher agriculture prices and we think that with the growth in emerging markets that's going to continue we think actually the cycles -- -- accelerate.
There's likely be significantly higher grain prices which is going to incentivized farmers to use more fertilizer.
This IPOs like two years ago now I think yes right do you -- -- yes you do as soon.
I remember that he had actually -- the open it was one of the bigger -- it was a hot IPO which I think is very long time and I was towards the end of that cycle yes you guys subsequently crashed.
So we think that there.
Poised to resume growth cycle -- -- about -- -- now similar stories.
But there's weakness in the -- right now.
Absolutely they they experience a problem.
Mining is an inherently difficult business.
There's all kinds of issues with.
-- was with what happened in Chile so it's it's a dangerous business sense it's logistically difficult.
And what they they -- a step back and operations.
With the -- terror with a Leach pad and a quarter of the gory details were basically what happened is he -- body that they typically -- in the gold.
They were able to refine so that's been delayed.
It hasn't been changed it's just sitting there waiting to be refined.
So they've said that initially was going to be corrected and -- October.
They push that back to December the stock has suffered.
We think now it's one of if not the cheapest.
Gold miner meaning that lot of large gold mining firms are having difficulty replacing production.
They're almost dying assets they can't find enough new gold mine -- poised to -- -- production ramp.
Significantly over the next three years so even a -- were to stagnate their profits should be -- saying that this is trading at a 50% discount.
I think through cut comparable took appears it's trading up 50% discount roughly that means the uncle were stagnant which we don't think there will we think.
Longer term -- going much higher you go leveraged bet with a company like mine funders because you can get the closing in violation -- -- and the.
Leverage that in years fund owns absolutely -- and I mean that's just old school.
-- that goes in the concrete absolutely very boring yes but you needed another scarce resource there are also -- this is a global -- right this is not a play on the United States needing us.
Was partially -- that it it's expensive to move that stuff right into other markets so it's of Mexico and US play.
Because of the decline in residential construction commercial construction business conditions of an awful the prices that the Sox -- prices of fundamentals were awful.
We think that that's the time that you wanna -- with these stocks because we think that something that's going to happen.
As a political season progresses here and the poison of the election season turns into governing again.
Once the November elections over one -- thing that's gonna happen.
Relatively speaking getting relatively big -- the Republican backing up fifty I know but once that if the Republicans take back at least the house.
They're now gonna have ownership at least have some governing responsibility there enough and -- and you help one can only hope right so we think that there's going to be stimulus words infrastructure because it's.
Badly needed infrastructure being in Manhattan.
Here it's console there reminder that the roads the -- stimulus plan it's it's a play on infrastructures you know having the last and we got to see who it was that was for us to go to a shovel ready projects very little gap absolutely not that's where I think.
The need is still there and more importantly now.
The the the center of the debate politically is about employment and jobs and and infrastructure and infrastructure spending is historically a go to place for politicians to spend money.
To get jobs and they didn't it -- it seems it's a very expend -- say absolutely.
-- -- -- -- manager -- exit strategy but it's TE a MX is the ticker.
Check out some of the different to doing it -- -- -- that's the theft breaking a great and we get back we're going to be talking about.
Look -- a little Hollywood style.
-- -- Looking at BMI I'm Tracy -- your data I knew what that was pulled back a little bit but.
Women's confidence soaring today -- story of the next couple days and weeks is going to be the banks what's happening with these foreclosures if anything.
Housing market can we get going again.
And the elections that.
-- -- your life goes on and people are doing stuff and people are being very entrepreneurial we learned earlier that you get a micro loan why not -- doing is sitting home.
18% people out there are somewhat unemployed in some shape or -- go do some things up lying on this government.
Many rounds certainly has taken things into her own hands she is a self made fashion designer I like that self made fashion designer to -- oh absolutely now I I was just telling -- as you sitting -- that.
You they call you when it.
Fashion's best kept secrets like and that's the -- legitimate.
There's not unlike a lot about you out there.
But -- want you -- almost all of Hollywood ending your list of clientele -- -- use correct how long have you been doing this well for over twenty years and we just start with.
I -- making.
So for children.
Really you and how that is you -- how you from quilts to.
Red carpet -- well I'm an artist attend fashion designer.
And it -- -- being encouraged by the people who for my work to just have to look about what you do can you make the girls traffic.
Think that sure.
And then I realized after being in the business for a little bit and it was more profitable to be an adult -- And I went into the -- -- You've done and some of the best of the best.
Have you noticed a change in Hollywood as far as their purchasing goes absolutely.
Personal for red carpet it's more a business.
And it is any.
Most of the houses go after.
The different fabric that they would like to dress and it's more as a marketing and PR ploy.
So that the celebrity is borrowing to address on the red car there right so you're competing with -- to gabbana -- your money on big names.
And I'm lucky enough to find stylists who really do their job to go out.
And find what's best for the calling.
And they plan the so it.
Jim certain -- you address is that what it is I think -- -- coming beyoncé Vivica fox -- feet -- Including pay and maybe that's what could be that I'm a woman making clothes for women and -- and I get that women sensibility.
And what they desire they want to feel good about themselves essential.
They're confident and that's the most important thing in my dresses are made for a -- -- Sydney -- me along I mean these are all women that have shapes correct so this is maybe this is the attraction.
Correct but I don't believe that it's it's a home -- beyoncé wears you -- what without a doubt but added that.
Having -- the -- addressed then.
Other people -- I think who's that.
So then that's the whole idea marketing through Hollywood can may come to you you haven't tonight because you know I've heard they get dresses they should show up say here please please please Wear my -- correct.
They've come to you -- how come what what -- different there are tons of designers out there that want to make in this business I think because that's a personal touch.
I am very much there.
It was a welcome for these days I think I mean we -- -- on all levels not likely.
You know the -- -- sources appliance stores that the difference now is -- shopping different I don't have as much money from and the money I have.
And get -- -- as far as they can with it and I need customer service part of.
Effective family and my parents we are all hands on everything there is we -- from the minute you -- my studio.
You get a person on the phone you'll never get a requirement and -- -- -- come to the studio you get to meet with me as a designer.
So I'm very much involved in every single -- I don't.
Has that changed over the years absolutely people still -- and it -- billion dollars -- just coming out of fashion vitally.
It's been wonderful for me this year.
-- got a wonderful reviews and yes the -- -- the average age of the -- changed she's older she's older.
Think she's making her own wedding it's no longer the mother you're making a waiting for the young lady if someone who has confident knows what she wants and -- not.
Looking to -- always Wear that.
Traditional down there right under the -- to feel good about themselves -- them you know she still spending money you know my client is still spending a lot and -- -- -- -- I feel like bridal Wear in general you know I know we took the kinds of people who.
Nothing has changed it seems that if that is the recession proof industry absolutely that I only video I have played here is my.
-- quickly tell us with the lifestyle brand is you have a lifestyle brand nobody does that.
Well I'm trying to market myself and license out.
My sensibility into different avenues into the fashion world like.
A lower lines so that my -- could reach every woman takes a little line of dresses there.
Gallons gallons bridal.
Sports Wear eyeglasses.
As everything everything like -- there.
That that you know -- you know America.
-- -- -- quote hey where did you find you well they can find me I just felt to Bergdorf some facts and my primary here in New York.
Have a studio -- Fifth -- -- from before the avenue and and I my website is -- -- dot com -- -- dot com.
It was a pleasant meal in my -- you -- pig that can come and this is I can't light color in the lines could.
But but I can't I can't like here I hope I pray there that they he -- -- -- 149.
Points right now.
Take it it's Wednesday.
Take it consumer.
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