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They were just talking about actually would probably will be we will later in it's Chris because Chris is I -- at least half.
-- think that 31 points again.
Now lack of a lot going on all well wasn't there was quite anticipation this morning for the big Cisco announcement at 11 o'clock I know where we kinda do it's it's -- -- Is gonna happen right we knew it was going to be a a broad band related announcement having to do with cell phones and things like that and -- ball hold.
We got you know eighteen see the -- right out that eighteenth he had finished testing.
This you know this router if you metal and Siskel and -- immediately pushed sold off a little bit but then I started climbing back up again means.
You're you're not buying Cisco because of this announcement even if they tell you with the game changer I think you're looking at Cisco -- much bigger.
A broader perspective.
Everything it did -- sector up though but I guess.
Earlier in the morning we had heard that Cisco was going to make me like.
War old changing.
No ground breaking I think we're we're -- announcement -- say stuff like that would you ever since I -- I would never say and we insisted I'm in my life setting the bar solo right.
That if I have -- -- over I looked like -- -- look at look like the Joseph Paterno lol exactly island -- -- a little -- to play northwestern when he was at Notre Dame and he would talk allow those wildcats are tough.
They're gonna give us a tough game on Saturday -- They are nuts.
But he would always say that anyways and that that's how you have to go about it CC never had to answer the tough questions on Sunday morning after the -- you know -- but it's just it.
Kind of counter intuitive to what we've been hearing from -- is all -- -- -- coming out like seeing in the blue screaming that you know an earnings they're -- -- be so bad this quarter and then damage number for the NCAA tech so called bar you know attack.
In general and -- -- -- -- -- Sandra -- later on the show just about the one year anniversary of hitting the bear market lows with the added on March ninth 2009.
Tech is performed even better than everybody else NASDAQ up over eighty -- cents.
Since March ninth everybody else down I think was 61%.
When you look at it from an index -- Yet if you go back I mean -- really I'm we don't have statistics in college grad school whenever you can.
Make these numbers as pretty -- ugly you've likened to if you go back five years yen both indices -- -- on the it NASDAQ and the S and peered down a -- DL it depends on where you -- when you got any customer.
And you're exactly right yet the -- the perfect and the other thing too -- you look at the number one perform over the last year in the S&P five -- Genworth Financial.
They are up seventeen -- 100%.
In the last year but.
Three years ago to thirty dollars stock goes all the way down the ninety cents.
Less margin now to sixteen dollars stocks -- he got into it after IPO than you at thirty dollars.
You're half what you were at that point I think you could say the same for coming like -- -- right over the last you know it's up.
56 dollar stock goes down the pennies spread so when did you get any got -- -- five years ago you've pretty much plus 90% investment no question Jeff Klein Todd joins us right now from Beantown.
What they're starting to enjoy spring finally like we are -- wealth chief market strategist at LPL financial -- Jeff.
I'm doing well thanks they had it wouldn't -- have a very interesting day for us because we talk about it every day.
And exactly a year ago we were at the bottom what were you thinking last march ninth inning were you thinking OK everything you just wait too cheap I got to start buying.
No we weren't -- we did -- we did start to retreat from our defensive posture towards the end of march and -- April but no still -- the beginning of march we were still very cautious fearing it might be more downside remember the market which is caught in the throes of this.
Perhaps Great Depression to mindset may end and that really was it.
Valuation really didn't factor into the situation it was really all about sentiment and it couldn't have been more negative than it was a year ago.
You know so we weren't just talking about how it's so much depends on when you got in this market -- -- -- how you did.
You want to look at it you know you pick your time -- to determine where you are.
Many argue though we are trending up do you believe that we're going to continue that -- -- is this another case -- they have we've probably got another -- down because we got some -- economic data ahead of us.
Well that's the key question to -- right -- -- it's been a year its been a great rally but but what lies ahead not only just the next few months -- the next year.
-- history tells us as we can expect for real bumpy ride in the next year you know we've seen these big bear markets over the last forty years.
In the usually followed by a big first year rebound only right around their first anniversary.
They begin to roll over they get volatile we get a lot of these five to 10% pullbacks in the market much like we saw earlier this year with -- February drop.
That's sort of the norm that we've seen that coming into the second -- of -- recovery and I think that's what we have.
Likely ahead here in 2010.
We've got right now the feds are friend but that may change later this year.
The Chinese Government has been very supportive of their economy in the global economy.
That probably gonna begin to pull back if they slow loan growth.
And then -- just a variety of other factors as we begin to see economic growth.
Possibly -- back in the second half of this year and I think we have a bumpy ride ahead probably still some modest gains for stocks but nothing like what we saw in 2009.
Jeff we're talking about Cisco today we're talking -- apple up big again today another all time high for them.
I mean are you are you looking at -- to continue this great run that they've had.
-- -- with the NASDAQ up over 80% year to year you think they slow down a little bit.
-- the technology sector guys might begin to slow down but the fundamentals are still very strong.
It we've we've we've heard from Texas Instruments for example just last -- this morning that.
You know their their outlook is is very positive effect they're having trouble keeping up with demand it's so strong technologies benefiting from one thing.
They didn't have a lot of debts they really didn't feel the pain of the credit crisis like many other sectors did end.
They've got a lot of exposure to the developing markets particularly in Asia that are just growing incredibly quickly so.
They are their fundamentals look great but it's an overload sector hundredth performance last year.
And I think that may begin to -- on it every portfolio manager right now is overweight technology that might begin to slow the game's going forward.
Yeah and you know that we so -- tremendous.
Inflow of cash into the bond market bond mutual funds things like that over the last year.
Not really a whole lot of play in the equity market we see in the volumes nobody's there.
Are -- what what's gonna take for people to start coming back to equities -- out of bonds.
Well usually it does come after about a year of recovery so -- we finally start to see that only as we get into more volatile period for the market.
I think it's gonna take more confidence.
On the economy the economic backdrop jobs.
Probably the number one thing on investors' minds right now it's jobs and the deficit on the graduating on -- deficit this year.
But if we can turn around the job situation I was surprised by.
Hell's wrong even though with the loss but -- relatively strong the numbers were in February given the winter storms.
I'm talking about the the -- job payroll count here.
That number could be much stronger you get a big bounce back as we get it reported in the early weeks of April for the month of march.
That could signal real turnaround -- investor sentiment on the sustainability.
Of the recovery I think that's the key to get investors to move their money back in the stocks off the sidelines.
So that that could cause a big watershed event and down on the street don't you think because -- we come in disappointing.
In in April please mart's numbers -- on the -- anti thesis is out the window and we're back to square one on jobs right.
-- -- right so there's a lot depended upon.
The -- sustainability of this recovery there's no question that we're in a recovery the question is is it sustainable.
And that really comes down to job growth if we don't get job growth in the end it.
Real reports of a positive numbers here significant numbers.
In the next several months -- that I think we're -- -- very difficult time building on these gains I think instead.
We may see some pullbacks in the return of a lot of volatility -- that we really haven't seen much of over the last year.
Yet because -- just gonna say that also is being down I mean almost in half but more than half than it was this time last year.
Let's talk about though the dollar.
The Fed and what it's doing with interest rates interest rates are very low right now do you worry about inflation going forward at all.
Know it yet that money that the -- created really still sitting on the balance sheets of fix that -- -- out yet.
Hasn't found its way into the financial system there are yet.
Too many dollars chasing too few goods and services that's a potential outcome but with loan growth down 18%.
Year over year.
Despite the recovery still don't know suggests that that credit is not abundant yet out there in the markets that would lead to an inflation -- so.
No I think inflation's gonna remain in check this year it is more -- -- concern for 2011 as -- growth comes back.
I'm not worried about inflation at the moment I think interest rates may move.
Modestly higher later this year.
Maybe treasuries -- the tenure might move up to maybe four and a half percent.
But they don't think inflation's gonna get out of hand just yet -- -- an abundance of labor and factory capacity holding prices in check.
-- not gonna ask you predict the 68% rise in the S&P 500 this year like we had last year but what do you think we are a year from now Marcello 2011.
-- the -- we like it did 1211225.
That's a bit higher than where we are today.
But it's not a blockbuster number I think the real opportunities in this market.
Are not buy and hold it up being tactical and active and finding those those really.
Uncovering those great opportunities some people call -- stock pickers market I think it's just -- Given tactical investment marketplace where you need to take some profits you need you dollar cost average and take advantage of the volatility.
Most investors -- volatility with fear and we view it from the standpoint -- of opportunity I don't think we're gonna see.
Big bear market declines I don't that we're gonna see a huge surge in this market so think about and advantage of -- treating -- And trim at the -- stand -- and at the -- that's the way to add returns over that may be lackluster overall your performance in 2010.
Jeff -- or off to another lackluster.
Day that's for sure here market's only up thirty points Jeff Klein top.
And Boston chief market strategist at LPL financial thanks so much -- being -- us.
They certainly on lackluster that's going to be a word we -- Now still 31 points though let's keep this the let's at least get this in the positive territory yesterday it was it is essential lackluster down fourteen to finish today -- -- the NASDAQ up a little bit that a lot of that was anticipation what was gonna happen with Cisco today.
But boy the man I was really disappointed yesterday couldn't get any momentum coming out of last week at a Friday right at yes you can even -- that -- -- expecting I better jobs number I mean people come back to market mindless we have the need to make lightest volume -- of the year AM Monday nobody wants the play.
You know I'm human I mean I guess I must we'll figure it out we got another about fifty minutes -- to go in the -- got a lot to talk about.
We got does to my favorite guess I think they're going to be by the end of the show that talking about turning cars all kinds of vehicles -- gasoline powered cars to electric cars -- they can do it might give the big guys do -- and asking that question when I'll.
But back -- in this outcomes not treatments.
He's got about twelve on the East Coast 912 on the west good morning to all of you out there doubts about 36 points.
We'll take it it's not that if we keep using that -- -- lackluster but hey it's better than negative so it's all all all good.
Do you do -- all good to CEO free enterprise nation and I Tampa god bless them nice and warm.
Jim we gotta talk about how.
The country in general as we know we're going broke but in particular the post office still some security fortunately they're very depressing stacks.
Let's start -- the post office not looking good -- Now it's not looking good at all you know they have -- deal -- the post office that if you have your job.
For eight years you can't be fired.
He's so they have a huge overhead of people that they can't get rid of it and huge pension and welfare cost and I don't think there's any any open site for them except for another government bailout.
That is shocking that they've got such high employment -- particularly talk about six benefit.
Jim in we're talking about you're changing it to a five DA delivery -- here any of these suggestions going to help I don't see that cutting enough costs.
Now they always come up with ways that they say they're going to cut costs but they're gonna keep their salaries in there and and their -- -- same -- they get rid of some of the more junior people.
But at every level of government.
What they're talking about is reducing services so that they can continue to bear the burden.
Of these really on sustainable retirement costs that they have.
So what's the answer for the post office and he does it go by the wayside Clinton -- traffic is down people -- downtime they cards the email these days so.
That is it necessary.
That's a very good question you know there are some people think what we just you get rid of it privatize it and it seems to me from personal observation and most of -- I get his bulk mail.
Five catalogs and so -- I don't get a lot of letters.
So why it may be something that they should just -- the heck out of the prices continue those services or close it down.
I'm always amazed -- that if you put a piece of me you throw forty cent stamp but whatever it is nowadays -- -- us allies held.
Feeds off tonight mails something out I was never -- to -- -- but to throw little stamp body drop in a box -- -- -- across the country two -- three days later I'm still amazed that it.
Actually works that efficiently we still -- -- 177 billion pieces of mail last year so what is it like it is in being used.
I think something asked the.
Well you know the problem with the post office is really the same as if you have with every other government institution.
They have such enormous costs for salaries and pensions and retirement benefits.
That they can't operate effectively that's true of the federal government's troops state government troops city governments.
They've got this burden of cost that is absolutely unsustainable and the only way that they can survive is either reduce services or raise the -- Out of what they charge -- for postage stamps or for taxes.
If they raise the cost of postage or requests or mail anything back to -- an all purpose and one less people will use it more people will go to the web so it almost.
It's like -- 2000 putt.
It does seem like they shoot themselves in the foot but if you think people seventieth 75000 dollars a year and let him letting them we've retired age fifty or 55.
And -- pay them for the rest of their lives.
That the cost that that that that nobody can afford to bear and unless they face that fact same same problem at General Motors face.
They've built a legacy of costs that they cannot afford to -- and nobody can afford to pay for.
It's a it's an absolutely perfect example of government.
Overall we have on our website at the free enterprise nation dot org if you look under -- -- under bankruptcy you'll see the number.
Of municipalities that are considering or have already gone bankrupt for the same reason it's.
Hear you talk about bankrupt that I've.
Thought almost since -- started working that my six and a half percent that goes to Social Security for every Jack.
Is just -- another tax that's a gift I'm not see any that I certainly not see as much as I've put in.
Is that feeling growing you think among people in this country.
Well it's like to the extent that they get educated about it you know one and in the early 1980s the federal government know that one baby boomers hit retirement -- eleven.
They weren't gonna have enough money to transfer from existing workers to retired workers.
So they've raised the heck out of your contribution to fight to -- your employer's matching contribution to fight there.
They collected two and a half trillion dollars during the last 25 years more then they needed.
And they spent at all there's nothing there.
You're supposed to figure out how you're going to be able to continue to pay the burden for people you've already paid for plus.
Have you -- retirement and it can't be done the government have to face the fact that it can't be done.
Right so what's the answer to this and -- this Sunnis scary many people also security you know the one of the biggest Ponzi schemes out there and as you've said we borrowed.
From our future essentially use the money for other things.
-- buying a pair issues before actually get paid so what happens to all these people that are still relying on this money.
It's if it's a very very scary thought -- -- -- -- have estimated that the social security and Medicare unfunded liability is a 106.
In 2008 the total personal income taxes paid -- were one trillion dollars.
Which means it would take 106.
Years of all the personal income taxes paid by everybody in America.
To pay for the unfunded liability.
It is an absolutely chaotic situation that congress will not tackle they've been talking about.
Health insurance for the last year fiddling while Rome burns when social security and Medicare are in horrible shape.
I would go to free enterprise nation dot com if you want more details Jim thank you so much for that we appreciate it.
Thank you Chris thank you Tracy and I think here at -- drilled -- free enterprise nation.
And that's great -- information because like I said Social Security forget about it.
Medicare obviously top of mind right now in the post office we know in the post office is that that -- -- known.
All these years that.
Being a postman was gonna be so profitable not only Wallace working but after retirement I warned that pith helmet I carried around -- -- letters and those funky -- why not -- that -- that job together can you get the job of the post servicemen son had in the past look at on the -- has the reason why it was going postal.
Mean there has to be a reason -- why is a dude did we have at least for a number of years such a large concentration of all these people going who people who keep.
Working in the post office you know or use of the -- what's the movie with -- That's what men like to see you wolf I had this -- -- -- -- beat box every day in the post office I wouldn't be so it's.
There's merchants in the back row and you know what else playwright I didn't feel it from Florida to Canada it's -- -- they climb over aren't.
I -- so today is wait for it barbie's birthday.
Now -- -- -- my eyes behind me I'm I'm a Barbie heater I'm saying it out loud and tells them regularly.
Yes I'm a total -- -- we don't really have many in my half accidentally we have any now.
People try to say she's a role model.
-- at what I did see let me let me just help -- here with coming up please.
39 and didn't would be her.
Chests -- conference.
Current waste is a whopping nineteen inches and her hips are at 33.
She is a real life person cheating back surgery first of all second will I don't you think you -- -- key is and I mean -- it is.
It's as bad sitting at his Barbie chick walking around and now Barbie is below -- she wearers.
-- -- high heels.
I used to be a time when she was -- -- to be a flight attendant if I -- professional woman I will -- I think I have the plane when I was a kid or the by the camper at the barbecue night.
And plus the only man alive was ten and -- -- -- insisted anyways so I mean that day you had a situation here Ken Starr is fact we celebrate.
But does he give you a little -- history her real name is Barbie Millicent Roberts her birthday is march ninth in 1959.
She was born in the fictional willows Wisconsin.
Now that Millicent is -- middle name.
I act that it hasn't been used in fifty years there you go never the Canada -- -- up.
Barbie was named after the creators daughter who was Barbie -- the -- son was.
Yes -- can they -- all based patent and -- maybe that all after him so they're named after their kids in.
This story I mean look I will -- that fact that she's probably than the you know.
Most -- toy out there I mean she's got staying power and people -- -- probably still going to be playing with Barbie.
And still going to be Barbie meter ten but nevertheless it's everything I didn't know that this the real sun ten million that -- at them he was by -- -- -- you ever drive around with a pink cardigan wrapped around my neck with -- shop and it.
Not Disneyland -- got -- had to put that aside a.
-- they have very little alleged plot and it's not what Toyota.
When we come back on the other side he had a -- numbers portend.
-- you don't have to -- her last.
This is dot com live continues burns and car were up 41 points right now on the day.
Like I say every day had a good afternoon everybody on the East Coast it's 1223.
Good morning to all those on the West Coast that's 121110923.
Out there which is where Jeff Flock is.
Right now he continues talking about -- out there yesterday points today in Los Angeles and Jeff.
It's time for Toyota to start selling some cars you're at a dealership there.
Yet it seems every day it's another piece of negative information that's got to drive them crazy don't you think.
It is -- tough -- -- tell -- at this dealership does really well this is so right on Hollywood boulevard this is the oldest Toyota dealership in the the US is the first one in the US.
They had their 52 anniversary C a bunch of Toyota Prius is up there -- don't think we're in Hollywood you don't believe were Hollywood that this is magic.
We'll know by god look up there -- he's able to see the highway is on.
Stuff so you had any doubt -- where we are -- god here's where we are now.
Most importantly I think from the terms of location here you mention that negativity.
About a 120 miles to the south of the town called -- -- -- a gentleman by the -- -- Jim -- 61 years old a realtor.
Yesterday reported is Toyota Prius 2008.
Started he tried to pass a -- all of a sudden the accelerator would not come back.
And it accelerated up to over ninety miles an hour before he was able finally stand on the break get some help.
Chicago or -- California Highway Patrol.
And eventually stopped the vehicle he's going to have a press conference.
Down in El Cajon in less than an hour yeah.
May be some more.
Like to be shed but obviously that's not what -- it needs to hear a lot of Prius is for sale here these are brand -- And actually this is the I think it -- motion the general manager told me they are the third -- Prius dealer in the country well as -- this year so far they've sold more than any.
But two other dealerships so.
They're really try to get back on the -- here but that's negative stuff as you point out.
Doesn't -- that her help when it happens every detail.
Najaf we're hearing that Toyota.
Dispatched engineers got to see -- go to examine the actual car -- at -- clearly there out there yet.
Well it's a sad that you have a -- numbers this Fella down in El Cajon the Toyota dealership alcohol which is where the car is.
They have sent engineers out which they point out is something they do what they at any kind of or like that they immediately send folks out.
And -- -- which Khaled California Highway Patrol which took the guys 911 call -- also you know.
When some extra credibility to what he's on the phone saying that we have heard the tapes yet but apparently saying I can't stop my car what can I do.
Apparently did not want it to you know it's sometimes -- you turn the car off yeah.
He he didn't want to turn it off he was concerned about losing his power steering yeah do.
Lose that power controls -- you -- the car off but he did eventually get it stopped no injuries I should report.
Hey Jeff real quick I'm interested to obviously know whether -- related issues over the last month there in Los Angeles in terms of selling cars.
We -- Toyota actually came in better than expected in terms of their February sales what do they do in February and and they really felt the crunch -- -- this.
If this particular dealership and I tell you -- you think it was eight point seven nationwide and I talked to the done much of the the general manager here who said.
They were actually up last month.
They're having weather issues like it did on the East Coast so.
I don't know the Toyota did as bad -- a lot of people thought they would have done.
Yeah I think I agree with -- -- that seems to be the case anyways at least one month into this whole situation -- see what happens to in three months and Jeff thank you sir thanks exactly.
Good Richard Geist has every story there -- is Jeff Flock there there are available in Bobby get a pretty good deal on whether it's in Los Angeles or whether it's in New York wherever.
Your shop and from that that conference call that will be adding that press conference going to be very interesting because the the gentleman who was in the accident is getting a little heat now all of the beloved in the web that he made the and he had a Corvette after nine and so they -- it about Levy was he had GM union guy a lot of speculation -- -- you know it's going to be an interesting.
Might get -- joins us right now this -- -- the first time Mike has joined this trial attorney with -- -- -- in Floyd that -- just about this very subject and actually talk about.
-- lawsuits that deal with we -- talking to another lawyer earlier in the day might get it looks like these are starting to come hard and fast.
You've got a group now that you're gonna file a class action lawsuit on behalf of don't you.
Yeah it's actually it's Thursday.
So you've already filed.
It is the whole premise of this suit then that that these documents that Toyota is withholding.
And the thought processes they knew they knew long a golf and -- and in order to get these documents we're gonna have to file suit.
It's just it's super and it's to respect the compensation for the people -- today which is that -- just.
Pretty which has lasted -- car and the find out what happened what -- -- to do -- -- -- -- and what they -- about it.
Mike I think we're gonna take at second and they're gonna try to -- your sounds and it will jump right back to you when they do but we talked about this earlier that and and that's part of the process -- I was unaware of that it's almost like they have to file the super.
To force or Soriano to release those that died does it really that's that's that the sum of -- the some of the -- -- -- -- went through three you've got to be able to.
You get those documents that's it without those documents you can't you can't really do anything he can't prove any.
-- thing -- I find intriguing because I mean.
Again we were talking about a little earlier.
How -- anybody gonna go doctor medical records right -- -- my neck and neck and I drive a Toyota and live maybe that's why and who's gonna come out of that how do you decipher.
Who's truly hurt who's truly had who truly had a problem with their cards who created -- -- themselves now because they wanna make some money.
I know it's like -- whole Peter Brady thing if a guy shows up with a neck brace on he got drop -- dictionary your phone book over here if he turns his head really quick.
You know he's faking it but.
Didn't we -- yet honestly think if -- in foul hundreds of thousands of Toyota.
Owners around the country.
We already know that.
It's let's over eight million worldwide these vehicles that have been recalled and it just -- -- continue to grow and grow particularly if this Prius situation that took place yesterday and -- California.
Grows and has legs.
That could set them back -- there are already saying that this could potentially caught the whole recall in general could cost Toyota close to ten billion dollars.
The -- we spoke to earlier thinks it'll be warned them crazy amount of money even though they do about twenty billion.
That's my my cut 28 billion in cash and cash equivalents on the -- -- right now right does -- mean Minnesota and give it up -- No I know acted so we're gonna have to wait and see the other thing too is.
You know you can look at and say well here's a Toyota owner the value of their car has dropped a certain amount so.
That is what they're entitled to but then there's that the value.
-- in addition to that.
And is there and suffering either but that's -- but the my point is what are they anti exactly are you in touch and -- they entitled to anything for the economic depreciation of their car mean that happens all the time right and I would say that you view you.
Bought a Toyota you put your faith and trust and at Toyota there was no guarantee of any type of resale value so -- -- -- right that's exactly right we'll whatever happens with the company between then and now that's -- that's your question you're buying a Chrysler well they may be at a businesses that help you in the fact that it becomes a more of a rare vehicle.
Or does it hurt you in the fact that aftermarket parts might be more difficult to come by years down the road.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- If the value I feel at least anyways the perception is that it is dropped -- and hold off I think a lot of people.
-- dealerships around the country really felt that way and in children's that was being seen in the month of February -- let me ask you this would you if you had a Toyota.
Would you would you go out and -- -- No I got Reyes never had a prominently yet Prius it is now worth less money would you go.
Come forward I wouldn't know because I -- just honestly believe that it is.
A function of that that the fact that I had faith in Toyota buyer -- -- That there position as a leader in quality would remain.
Three years five years eight years whatever the case may be when I decided to resell my vehicle so was mine and my own fault.
For believing in them.
C and I wouldn't come forth because I'm just too lazy filed paperwork that would be it -- I -- that would be the trick and I would think as a skeptic I am not at the ended after all that work.
If I get a coupon for a soda I'd be lucky girl I think might give back with us ceramic.
Yes I am now -- -- all right all right so tell him every week you know we left off with you filed on Thursday correct.
Yes but out of Thursday -- investigate three personal injury wrongful death cases that's worth debt right now.
And one -- Happens now we're waiting now you're waiting for Toyota to come forth with documentation.
Yeah I think what's gonna happen -- they're lawyers that if about all over the country and these cases they're going to be as -- a one judged by a panel of federal judges but not the but the states.
The -- judge somewhere in the country and then all the cases that have been filed against Toyota all the class actions will be consolidated and thought of that one judge.
-- does it matter where.
Now it doesn't make any difference a little bit out of it judgment got that happened near the case properly.
Okay dealt with this this -- we're talking about.
Those who were injured vs those who may not have been injured -- who has -- who has a real legitimate case.
In this obviously -- in an accident he could prove that the -- that was caused by unintended acceleration.
-- a huge case against Toyota but does anybody else and if you had a car in the value of that car dropped or what have you.
Day by just got to property damage claim will be covered -- class actions that have been filed.
I think -- 89 -- that have been filed because you have to file one in every state you know you can also argue you can ballot national class but traditionally.
They're -- that every state devastating out of those those will be consolidated by the federal judge if you have a personal entry of all of that -- That would be handled by that attorney one on -- And you would recover based on whether or not you could prove your facts you could prove that you were -- about that Nunn wanted on an -- acceleration.
What do you expect to get out all -- how much compensation are these people should these people anticipate receiving.
The people that are injured killed as a result of their car having missed the -- because in fact -- -- recover based on the they haven't lost their individual states and there's there's -- way -- -- predict what that would baby based on what the damage is -- and that particular case and they vary from case to case.
As far as the people in the class -- that's up in the air to we don't really know exactly what the major damage this will be but will try to recover these people as much as we can't.
-- would be 500 dollars -- thousand dollars per person.
You start multiplying six million cars numbers like that it comes out -- the billions of dollars.
Mike you and your partner is tried in one the first case.
With the Ford -- with the fuel system years ago when you're involved with the Ford Explorer Firestone litigation as well how does this recall.
And what you see as the pending litigation moving forward as it compare to those other two very famous recalls and legal.
Behind those two right now and those two cases you just named.
The manufacturers came -- and it -- probably convince the public that the problem was fixed right now Toyota has not done that yet we're still arguing about.
What is the cause of sudden unwanted acceleration.
We know -- a problem.
And the question is what's causing it how limited is that how many cars involved in it why that's happening and how they stop it.
And we have -- -- that point yet with the tires they took almost tires soft and manufactured -- better tires more robust tires and just the battle eliminated that problem.
And with a sport that other redesigned the fuel system and they really made -- systems better because of that case.
We haven't got to that point yet with Toyota.
But acting I think that's a big differential here is especially in the Firestone case.
The problem fell on the -- the Firestone it wasn't even afford issue at the end of the day or at least board was able to pointed off Honda Firestone.
Were little with Toyota and I think that's part of the problem for a lot of people out there they.
They don't know what's being done and Toyota hasn't been all that vocal about fixing it clearly this is going.
I should say clearly will this hurt their case at the end of the day this lack of good PR.
Yeah they're less -- fifty yard addressing this problem years ago was gonna hurt their case right now -- I heard which is -- -- but there's -- I think there's sales are probably down.
And I think the other.
Manufacturers are looking at this thing they where this goes because they're looking for market share.
Toyota right now has got to get the confidence of the consumer back.
This is the public safety issue and people are very worried about it I'm getting dozens of calls have not talked to the people -- worried about it some people don't want to drop the car yeah.
They're afraid to drive their car and not.
Right now Toyota's argued that this -- electronic problem.
A lot of people think it's an electronic problem because they're change in the electronic than 2011 on all their cars and they say well why are they doing it.
If there's nothing wrong with -- that that's not because.
Mike what's your gut feeling right now will Toyota -- -- If they don't settle what's your what's your feeling on timeframe isn't -- how long this will dragged through the courts.
I don't I don't know whether or not know -- -- the settled disclaim -- class action they'll they'll litigate these personal injury cases one about one they'll take several years but that we go through the courts.
The class action my prediction is that year to two years.
Men and while they're doing that -- that they've got to continue to work on their public relations and figure out why.
They're having these problems like you just describe the minutes ago with a gentleman down in -- southern part of California -- And that and I think that's going to be the lingering problem for the company at the -- and you know from our angle from a stock perspective.
We don't know what's happening we don't know what's going to come out again if we find this Prius story to be bigger than expected.
-- set them back to you know.
Ground one and they'll be starting from and starting over on this whole thing.
I thank -- as big an up and got enough.
People on this case now that they'll resolve the problem and -- they've got a lot of money I think they can resolve this probably get past that but they're gonna have to work harder.
-- we certainly do appreciate your time we'll check back with you as we move forward with this.
Okay thank you very much that I thought they thanked him and all our to announce this -- snafus if you will.
Trial attorney with accents -- in Florida.
On down in Tampa first class action complaint -- it's all -- amazing because it's -- -- Change not gonna get huge and I'm telling you people are gonna come out of the woodwork.
I'll even for 500 bucks but I guess I a lot of people will think it's worth it -- -- when he sent 500000.
Doesn't sound like worth of a medium those -- you heard in the back rumble on the Sanderson as she's gonna join us on the other side of the -- he's worth it.
Is outcome I think he brings his tired 1230 on the east ninth idiot in the west good morning to all of you out there -- -- 46 points actually out in my right about ten points since we started -- right CN dismissed talk about a market that's up.
Over the last year -- is here to talk about the -- When you caught that.
There are the anniversary if you're gonna look at the glass half -- and adversity at the Dow hitting a twelve year lows we've bounced back there were celebrating I'm -- gains that we've seen such -- -- that -- do that but here's the thing is when we do talk about where we see the -- now decide 101600.
A year after the Dow hit that twelve year low.
We also talk about the very very light volume and lack of participation that we've seen in that run from that -- -- that's a little concerning to a lot of people that look at the market but still -- long way to go when you look at where the market have been in recent years but there's two anniversaries that we're talking about today.
One is the anniversary -- -- at twelve your low one Erica.
But -- is.
The decade of of the lost decade of stocks are -- looking at the NASDAQ march 10.
The year 2000.
Okay the NASDAQ peaked at 513.
It opened today guys at 2330.
-- you aren't we are still in the NASDAQ seeing a 50%.
Level 50% below where they were at the start of the decade.
So tomorrow the anniversary of the lost decade for stocks out.
A couple of little stats all throughout their anger hasn't -- if you -- But since March ninth 2009.
The market has seen -- as far as market value of five point six trillion.
Dollars -- -- over the past year we're talking about.
For the -- from the Dow's peak though we're still down one.
-- the number that I point six trillion in market value.
-- so again we're still off the highs 50% below where the NASDAQ -- so.
Still a long way to go market has climbed very light volume.
And still work we have yet to see the big big dollars coming.
You have market usually trends and the volume these these trends with the market and the fact that it is and makes a lot of people skeptical and -- -- -- don't have -- would jump -- and.
And I'll throw this out there for you the viewers -- Seacrest.
What sector do you think is performed the best over the past year all over the past year.
I would think it would be something to do with.
And cellular I would think something in that regard -- tech name here today and think about what was doing the worst during.
So the banks the financial statement into -- financials so.
The average gain among financial stocks.
The best performing in the sneaker industry here in the S&P 500.
Yea right he actually on March 10 of last year was Citigroup coming out.
And -- saying that there are going to be profitable in the next quarter they get some sort of a guidance and -- up 350 points on that day that was really what got us going back into the right direction from that low on the ninth.
I will tell you.
-- side story -- down I reporters -- thestreet.com on March 10 2000 and we both sat there thinking that we were total losers because all the people we had known had left to go work at the start ups.
And they're making all this money -- here I sit here journalists and work it and you know all night long making no money whatsoever act.
And here we are ten years later you know a lot of those people unfortunately right where they you know I guess I safety I -- I remember allowed to.
Regulated I am my MBA in 99 and I was interviewing for jobs and smoke so we do that I talked it was a yellow so at least -- here he's now at a dot com right.
But why dot com just the dot com and general let me give you any revenues you just needed some and give you money and -- -- -- -- stock went public and banning these kids -- millionaires abandoned playoffs be any of that city eager that's another one of the fancy stats I have in -- mean that obviously that was the hardest hit banks -- financial during the recession.
Over the past -- as we talked about the anniversary today over the past year its shares have tripled.
And I noticed athletic Zelaya but it is -- I'll admit it.
And that and if you got in this thing five years ago you're down basically and back in 1976 times that that intrigued me the most that cash flows in and that mutual funds.
So net cash -- for stock funds over the last year negative one point five billion.
Into bond mutual funds.
386 billion so the total flight to safety -- over the last years well a little nervous as your to your point no volume no -- -- no volume no risk so you might see -- money in those areas but that means that nobody -- in the big big and I equity.
And look at but that's also people freaking out -- changing their full in case the bond funds when they should have been doing the exact opposite date at that -- time you held last spring early summer keep it in stocks is the one of the grill you'll want to pull it out.
And you have to learn a couple big names are well cracked the game we've seen in -- over the past year 647%.
Bank of America 345%.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Okay.
-- of gum or a cups of coffee effect.
Thanks Sandra and I think I think maintenance what else is -- in the market right now because -- higher slightly higher than -- -- started with forty points.
To the positive right now I think that's actually are up but it's not locked down interestingly enough it is tax season but -- handling.
Seven point 1% fewer returns than they did last year.
First quarter earnings did rise those six point 9% but -- on -- your losses from discontinued operations and things like that so there was an emulator which ended -- taxes to you to do.
They are right you're gonna -- month yep nothing I didn't and mine and you know my stuff -- have -- -- Buckle we let them on the -- this story intrigues me it is it teen -- -- -- -- raised its rating on the buckle.
To positive from neutral saying the retailer has a unique culture and differentiated position where is it.
It's not in our area yeah I was gonna say -- have never done our area but it is it you know the -- -- -- store.
UAL parent of United Airlines up today actually hit it to me -- the CF though came out and said that we're clearly seeing signs economic recovery.
The premium and corporate travelers are returning.
Demand for -- picking up that's good thing for the stocked -- ready for the cost of travel to start going up as well I'm not going away and Easter because -- can get cheap ticket really I'm telling you that's right around the corner it's got to be it was crazy.
ARRIS Group now Needham boosted its rating on the -- -- this is a local access network with video and high speed telephone systems to homes and businesses up like that stocks of 10% on that upgrade.
They're going -- the negative Comcast's.
Theory so enough with Comcast -- and -- And finally we talk about this earlier when it -- favorites AgFeed Industries -- feed at -- ED.
Primarily operates in China said it achieved record revenue -- this in both its operating units hog production.
An animal -- Russian afternoon -- -- -- -- and I think the Chinese are importing a much less in terms of pork from the United States because of the protectionist measures so I think that plays -- -- it Charles loves feed and seed.
Well -- he does and I.
Chinese -- Chinese stocks but production volumes in feet increased by 66.
-- in not hot -- engine.
But let's go to James -- games I really hate to you know make the transition from people who created -- other -- -- knew that that can be done about that.
Senior portfolio manager team as a strategy fund wanted to show James.
-- But you got guys who have sought by the team -- -- strategy fund.
And particularly let's talk of the sector's first and then we'll talk particular -- what makes up the fund to help the primarily -- what you like movement forward.
At this point are predominant team is in -- natural resource and commodity state.
We still like that that area is position.
On very well -- that there's a tremendous amount of extorted upon -- areas of the -- badly over the last year.
With the one year anniversary of their once -- and -- the market low.
You've got a lot of areas that have -- agriculture.
Being one of the significant one.
It seems CB.
You pretty much -- ahead of the year you know any of -- didn't.
Indices you follow what do you think -- what's the reason behind that why the -- done better than the overall market.
Well we we came into the year.
With the defense -- -- we've -- -- The likelihood of a correction unfolding in the January to February timeframe.
So we were fairly well hedged.
Late January early February and -- -- -- those -- in and picked up some positions and are.
Favored areas and they're correction so that's the predominant reason.
James you also like refiners here in the -- you look at the demand story on the oil side mediating in the gasoline side.
It doesn't seem to be rebounding any time soon and why do you like their finest they've really gotten killed over the last year.
Well that's that's exactly the reason -- -- -- is that did they have been killed and there're there're probably hated as sentiment goes and the refining capacity is a wonderfully self correcting process where.
They've been sharing -- -- -- reasons that you speak about so.
We expect because capacity coming off line you will start to see prices recover in the finished product area where there's diesel heating oil and and and gasoline.
And there's margins will recover otherwise all of our refiners would go bankrupt.
You and then that's not what happened so.
You know we'd like as refiners and then the refining businesses in -- isn't.
Some of the large integrated -- For like at this oil that's -- you like he has so it do you see that happening soon because I've kind of been waiting for that snapped back if you will on the rubber band on the refining side.
For the last couple months and -- haven't seen it happen are you expecting that to be really soon here next couple months.
We we think that margins have bottomed on on the crack -- and that.
Something like a Tesoro has.
Upwards of a 100%.
Potential in the next twelve months.
These stocks tend to be fairly -- -- and then when they finally do enjoy their recoveries it has to be a pretty explosive move.
Limited southern about the feet at excuse me -- see -- company's AgFeed was one of them.
You like -- -- and intrepid.
Code -- or potash if you work what's the different between the two of them.
Well I that's -- there's been an exchange traded note that provides direct exposure to.
The three largest grain commodities so it's not a it's our company it's actually exposure to the actual commodities.
Now corn soybeans and -- And speaking of things that -- black they're the -- have lag horribly over the last year and many of the themes patrols and talked about with those Chinese.
Commodity and money plays -- oxide.
Or depended upon.
Great prices mean that the -- demand still present a great demand because it takes about ten pounds of grain to create one count thirteen via a -- So we expect over time the next six to twelve months that the grain markets.
Could recover quite quite sharply.
Well we can't talk about the markets without talking about gold and we can't talk about inflation without any that what's your thought on gold moving forward you like playing.
The commodity itself ETFC like miners.
Well -- prefer the miners at this point it's amazing how -- ten years and no bull market and old COLT took -- 14% a year for.
On average of the last ten years and yet.
People really hate the minors because the stocks have not done well in the last four -- five -- -- to the -- And to the point where the -- -- briefly chief.
Relative to the -- also something like Newmont Mining which is one or larger whole stock position.
They could make.
Four hours for our -- share this year which really makes -- values stock.
As long as cold days and eleven under all accounts -- and we expect.
That could be -- the bottom -- and the range.
Or that you didn't do before the year.
-- we think it's actually.
Which will eventually turn into wrote that a momentum.
Play as the bull market.
-- -- -- James thanks so much for being -- -- James LA senior portfolio manager of team asset strategy from the ticker is TE AMX ticket out of Morningstar dot com and get the lowdown on it but it's.
Pretty focused in that whole area that's we want to be -- not a and then the fund isn't very well compared -- Ayers and when we come back you know we're talking mount Holly's turning a Harley into an electric motorcycle I know -- sounds strange.
-- can be done.
Find -- for small business spotlight and for that we turn to Davey Johnson -- Donaldson founders of electric.
The roster joining us in Tulsa Oklahoma gentlemen welcome to the show.
Hey good morning and thanks for having outside the first thing I think about I think -- -- David -- is exhausted very loud -- the F power behind you are underneath the I should say.
And you want to turn all that into an electric -- some people would say that's an American whereas maybe 50% the other half -- the people out there would say there's nothing more American and that saving energy going green.
What have you heard from people out there when you when you tell that you're gonna turn a Harley -- -- a -- electric vehicle.
Well so far it's been an overwhelming response.
We've had a lot of people that are excited about it and excited about seeing an -- technology put into.
We've had a lot of people saying -- -- an American institution can't keep that noise and don't touch it.
We've we've we've had a few people that don't like the idea they they like their -- loud but you know.
It's it's time for a little changed and -- you wouldn't do that.
-- -- -- -- -- -- believe it or not I've been to a rally out of Sturgis, South Dakota -- -- for when I read about all this -- I think I was thinking -- -- -- Well these plug in spots they're out you know down the.
Plus there aren't that I -- their bikes and I think -- -- that's right -- that would be what you got to -- it right.
Yeah well you know the Hollywood building about a hundred miles on charge and is plugging in every night in any -- your radio or right it's always.
Charged radio on everything so well that the pig is roast -- you could be charging nearby.
Hey big boy you guys -- This site what's the first of all what got you into thinking you could do this -- -- you're doing it with a Harley.
Are you you got plans on a Mini Cooper you've changed -- switched over plenty of internal combustion engines into electric.
Vehicles -- but what -- you think you could do this seven years ago.
Yeah we just wanted something cleaner better for the environment and seem like to me.
You know hybrid cars are coming along that you can only you know it only increases -- -- a little bit.
And I've been driving cars for seven years now that don't use any -- at all.
And you can -- it you know and and we're taken off the part shelves are off the shelf parts and putting -- the Carson show the world that they give us examples are you Harley riders.
That we are what we are now yeah.
We -- before we are now.
OK so what did take I mean is it it is today interview process to take a Harley and make you know go from the -- -- to the the plugin.
It used to be hard to do but now.
That the technology is so advanced it's really it's really a lot simpler than it.
This means apple will strip the bite down and you know replaces an AC motor.
-- lithium batteries and you know really won't it'll be a direct drive straight from the motor to the -- the we're we're all so you know there's not a whole lot involved and it.
A little bit engineering.
But you know anybody can do this they just set their minds to it.
All I -- you just said anybody can do this so why isn't GM Ford Toyota why haven't they been able to do it successfully is at a cost issue.
Is it -- the battery issue mass production kind of issue.
That's the question that the golden question we haven't got an answer Korea -- so you're that you can't figure out why they can't do it either.
Have -- you know I think they can but you know.
-- -- -- still have a hold on fossil fuels that we just can't let go of yet but you know that's what we're trying to do an electric thrust dot com.
Is change the way people think and -- you know maybe we can push this industry a little bit more.
Harley's valley and have become a novelty you know for -- while -- was -- let go there Harley was the American dream economy it's.
People are not buying as many Harley's these days the stock is being killed unfortunately.
So I mean maybe maybe that's why no one's -- -- is no one's going out there buying in Harley's mini Coopers things like that.
Possibly that you know -- these are really just inspire.
New innovations so you know you can go to our website follow along -- process every day.
And it may be did you have a project -- honey let's convert your dirt biker four Wheeler or the family car.
-- you can follow along our projects and see how to do it in real time.
You started your first project -- -- the Mini Cooper you know videotape the whole thing you have put on your website so people can go there and see how you doing it within me.
Are there technologies and process -- that you'll you'll integrate within.
This project with -- me that people can use for just about any vehicle that they have.
-- you know we've we've done a lot of research on you know the new -- updated drive systems and you know battery technology or trying to use the latest and greatest.
That's available to us that's off the shelf that anybody can use you know we're not taken any thing that's you know special order that nobody can get -- hold.
So you know.
And we're gonna show you exactly how it's done step by step in fact you know -- to start stripping down the Mini Cooper yesterday.
Stripping out the fuel system and the exhaust system.
And you can get on our web site today checked that out.
-- I'm looking at the website right now and you guys clearly have a live blog because it says we're headed to fox for the live interviews so that everything you did in an attempt to keep this really up to date -- -- keep people posted on it.
I think think this could be genius idea probably -- some high school kid who want to project.
I was on the eastern marking yourself about that way as well but clearly you're trying to you trying to create a movement -- -- -- -- -- -- it ever -- anything -- -- -- earlier Mini Cooper.
Now it's just in which we are just in trying to show the world that it can be done and maybe hope.
Will will inspires new innovations you know which shows a Harley for two reasons I mean it's this.
It's a vehicle that America isn't love listen in now and it's fine everybody loves a Harley every guy in America wants one in his garage every I don't know I thought.
Leave you out thank you haven't but you know we -- that that would be just a great PR piece for us to just take something that's the American Heritage and you know change it into something completely different you know it's gonna keep the same lines of the -- It's is going to be quiet.
Dave I always wanted to cement truck because I don't want people -- with me.
-- -- -- I want my own space like if I have a cement truck on the -- this is my -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Harley now Mini Cooper that he -- -- cement truck with the economy is -- but let whether or not.
I don't know -- -- cement truck but it's not -- definitely.
They're definitely AC -- out there that cam can handle Abbas can now with the bus around.
And so it can be done -- yes we actually.
Have projects into larger vehicles also we're gonna do a that that we're gonna go a little bit larger with a -- on XV and then we'll do.
You know that the -- average family car.
Yeah we've got to 33 Ford hot rods that we're gonna convert to electric ones just going to be a you know pavement eating hot rod -- the other one's going to be a distance longer.
You we've got you know several projects in the -- that we're going to be working on.
Time yet at left -- -- -- how to lose funding you.
Which is that partly funded them.
-- you just paint all of us as.
That's right we're just having more fun than anybody could breathe he got together website it's electric thrust dot com you can file then there's video and -- Guys it is plenty of stimulus money out -- -- gets done anything.
You know yeah.
That's why -- I'm thinking about it as a quiet fat boy on the road.
Go along OK.
McDonald's in founders of alleged -- thank you gentlemen the graduation anybody -- luck thank you.
-- the you got -- that's gonna wrap it up for us market is up look at that Carmelo.
Now we'll see in my --
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