>> see you back in a few minutes. that will do it for today's edition of "power lunch" tomorrow. hey! come on back here. tomorrow, we will be watching the dimon testimony among many other things. that will do it. >> the dow jones industrial average trying to hold onto a triple digit gain. see you tomorrow. welcome to "street signs." i'm mandy. brian is on assignment. we're about to help you make your way to a portfolio. and we have managed to find a silver lining in the gloomy report. instead of moon over miami, how about money over miami? has the fla come up with too much growth. and how love of the nba could be a bad thing for investors.

in the meantime, monday really began with a rally that will eventually turn into the worst monday of 2012. today's upward move does seem to have legs. the dow up at the moment. s&p 500 also rallying putting it almost exactly 100 points below its 2012 closing high to keep it in privilege. nasdaq is also moving high. that puts it almost exactly break even for the month of june. today's stat of the day is courtesy of the fed. the median american u.s. household lost nearly 39% of its wealth from 2007 to 2010 taking us all the way back to 1992. okay. we'll get out to steve liesman in a second to find out more about that particular survey from the fed. in the meantime, why don't we get to ameritrade joining us now to talk about the 18 years of lost wealth we suffered.

we have an exclusive, tom bradley, president of retail distribution with ameritrade. i have to ask you, i tweeted out, is the american dream dead. you had 40% of american's household and wealth wiped out in recession. on the other hand, you have a new survey that says about half of americans are afraid to retir retire. >> hi, amanda. i would say absolutely, it's not dead. what we are encouraging investors to do is take control of what they can control. not worry about what they can't control. what's incredibly important, there's a lot of fear out there because folks did lose a lot of money when the markets went down in 2008. however, they need to stay on course and need to continue to save and put money away and invest it in accordance with their risk tolerance. >> that sounds fantastic. i was reading through some details, tom, of your survey here and the findings essentially say, number one,

people always underestimate what they will need in retirement and number two, start saving too late. what would you advise to rebuild their nest egg in this environment. >> i think it's an educational process. you have to get to younger generations and encourage them to save now while they can. what's interesting the generation x is the group the most anxious generation. maybe because you have a lot of folks in that generation maybe they didn't save enough and all of a sudden running into having to save for other things, like their child's education, to pay other bills as well and the markets have been quite difficult, especially for that generation. it's been tough for them and we're seeing a lot of anxiety around generation x. >> at the end of the day, how do you feel americans facing retirement have to keep some type of employment whether it be part or full time now? >> most folks think they have to

have part-time employment at the very least. there are pluses and minuses to that. most folks in retirement want to lay on the beach and play golf and most want to keep their minds fresh and work part-time. the key is how many are forced to work part-time. the baby boomers in or very close to retirement do feel they have to work and retire. >> i will bring you back here, mentioning to our viewers that stunning fed survey that said 18 years of growth was wiped out between 2007 and 2010. is there a silver lining or as bad as the headline? >> there is. about like looking at a tornado ravaged town and saying these are the parts that aren't destroyed. we learn certainly the housing impact on families was worst than we thought. there's some question whether or not the other data is better. this may be better data and show things are worse.

however, there has been times since this survey ended to now and i want to show you the other data we used on a quarterly basis to track it, what happened to a household network. this is the flow of funds from the federal reserve, we fell as much as $16 trillion. if we can go back to the other survey, don't be so quick on the buttons. we came back when the survey 67 trillion and now 4 million from the top. you look at the sources, the next chart from equities, it's come back from another source we're talking about a decline in liabilities. home mortgage debt is down for two reasons, one is bad and one is good. people have paid it off and defaulted. that's the good news in a rather bleak environment. i want to hear our guests comment. housing is worst than it seems. two, the way back is longer and

steeper. picking up on the book out there, this time, it's even more different than we thought. a big lesson there. too many people were house rich and i think housing policy that urged people into that is bad and haven't done enough for the middle class to help them on this tragedy of housing. >> you make great fantastic points. the silver lineing we haven't talked about what doesn't kill you will make you smarter. the investors are much smarter and independent advisories are much smarter. the education platform, more of them are using options to hedge their portfolios and generate more income in this near zero interest rate environment. we are seeing much estimator investments. >> as painful as this process

is, the lesson is you should not be putting all your eggs in one basket, like your house. my question is when do you think we will get back the 40% we lost? what's the time frame? >> great question. we have to get to some point of certainty in europe and the united states election will play a major role in november as to the next four years. people have a lot to be worried about. >> when people talk about the new normal, i think that is about not when we get it back but learning to live with the lower level. i know that's a very depressing thought. there are some people who will never get their housing values back. there are other people that thought they would retire based on their housing. that's not going to happen and another group looking for much less appreciation. >> you're talking about getting your housing values back, at the top they were unrealistic.

and expectations were unrealistic. i want to bring in rick. i don't know how much you have been listening in, what are your thoughts? >> think steve does get an a plus. i agree with the guests. i get a bit of confidence looking at that. his charts say it all. look at the periods of housing from '07 to '10. the dark side was there was a deco at the bottom of the screen, that said, young people, save now, looking forward to this. the problem is, they can't. they can't get any income saving which brings me back to how you put these together. i know the fed wants to try to help this create the old normal. i agree with steve, i don't think it's coming back. people trying to hunker down with the world the way it is and save, they can't. part of the solution has been taken away with what has been deemed the medicine. >> the only response i have is

the economy does not suffer from a lack of saving. the economy is too much saving and not enough investment. we can rekindle old arguments about the way to rekindle that investment. >> with this attorneying about median income or wealth, it does apply directly. >> the idea is get people to save or save for their retirement more in quekties than they did in treasuries. >> would you recommend to your best friends and every step since march of '09 or even prior, that that's the answer? believe me, i see equities as a positive. sometimes recommending to a general friend who isn't a big answer, that's his answer versus savings, i'm out on a long limb way at the end. >> i think a balanced portfolio that goes more towards equities for younger folk is the way to go. >> tom, what would you say? >> i still think it is.

i think if you're in fixed income long term, it's extremely dangerous, we know what happens to the price of bonds when interest rates spike. look at dividend paying stocks and pay very close attention to your time horizon. how close are you to retirement? if you don't have a lot of time, consider hedging your portfolio. >> i won't aing you iargue wit. there are a lot of moms and dads that don't have confidence in stock markets and feel they're getting skrooued over by the banked. how do you get them to start saving for retirement? >> look at the long term view. look how the stock market has done compared to bonds and other investments over time. it wins time and time again, stocks provide better returns than securities. >> i had a better question about this concept of those house rich

hurt more. is there a case to be made for people to get their real estate exposure more through other vehicles than owning a house. this way i would get the exposure of real estate but not have so much of my assets and liabilities in the real estate market. >> obviously, it he's an indivil decision. anyone who owns a house knows it's just the beginning. maintenance, taxes that have to be paid on the home. in terms of the house as an investment, i think there's quite a bit of risk in terms of investing in your own home. it's not a bad idea in terms of your real estate exposure instead of owning a home outright. >> thank you for sharing the survey results with us. >> thank you very much to steve liesman and rick. i have to get down to the floor of the nyc. bob, i understand, the same time we have a rally going on, you have plenty of good news for us.

it's good to see that. we often get so bogged down in all the bad news, there is some good news out there. >> there is. is the a bit of a downer and important. greg is the chief political strategy at potomac research group, he says there is good news. number 1, housing has bottomed. in southern california, there's a bidding war when houses come to market. number 2, u.s. corporations have restructu restructured depth, low interest rates and balance sheets and once there is certainly on tax policy, companies will open their wallets and spend robustly. and this fiscal cliff can be managed. highly unlikely the dividend tax will revert back to ordinary income. and the scenario everyone is

worried about unlikely to happen. even if the germans rebel and e uru owners persist, america is going to continue to be a safe haven for investors. that's great. a lot of us need to look more on the positive side of things. mandy. >> thank you very much. let's get a market flash with brian shactman. >> i can't compare their numbers to themselves. we see their research all the time. guidance quite weak today. look at the stock, trading below the 200 moving average, 9495. about 10 bucks, 10.5%. back to you. >> thanks. we told you how to rebuild your portfolio a moment ago, next, we tell you how to keep it away from europe's growing mess and why this this tornado has

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the question is the question is howcan investors your ro proof their portfolios and is it even worth it, we have co-founder of an investment group and we'll get to peter shipp, joining us.

there's a dizzying and sometimes confusing pace of european event risk every single day. how do we your ro proof our portfolios? >> we've been saying some time, mandy, investors should focus on u.s. companies and not just u.s. companies, but u.s. companies truly u.s. in that they get most of their revenues from the united states. you think of all american brands like coca-cola, mcdonalds, budweiser, none of those companies get more than half their revenues in the u.s. most are outside the u.s. you want to look at alternatives. alternative to an his heuser-bu would be boston beer, sam, alternative to coke is dr. pepper, snafle. alternative to nike would be under armour. all these three alternatives generate most of their revenues inside the united states. you look at their performance,

they've outperformed their international counter parts by a wide margin. >> that was my question, whether or not you have the theory and whether or not you have the performance to back it up. do you feel therefore, there will be a number of companies and almost daily we hear commentary from companies that say, our sales in places like china and europe will slow down. do you see a trend, whereby more and more u.s. companies are starting to focus back on the u.s. economy and generating more revenue overseas? >> usually, a shift takes time, not a monthly change. you tend to see it over quarters. years ago, caterpillar generated most revenue inside the united states but in the last decades, shifted to more of an international company. that being said, we will see this coming earnings season, a lot of companies blaming weakness on european or international markets because

it's a convenient excuse. we have seen a wide dever gent in these internationals versus domestics. while we're stretched by historical standards and investors may want for a short term trade focus on internationals, for the long term, the rest of the year, we want to focus on domestic based companies, like the names we looked at. this list we highlighted earlier today to our clients, even if you don't agree with our view you should focus on domestic companies, you have two lists of stocks, international and domestic, get exposure to certain groups and pick the list you want to be on. domestic or international. >> i want to go to peter. i understand you disagree with the kind of strategy paul was just outlining to you. what you really should be doing is not so much concentrating on your ro proofing your portfolio, dollar proofing it.

why? >> both. we have been avoiding the eurozone for some time. i'm much more worried about the u.s. and problems in our economy. people are worried about european debt. good reason to worry about it. we are in more debt than europe and i think we're even less able to repay. i think investors need to steer clear of both of those areas and focus on regions with much better fundamentals, particularly regions that will benefit when they stop buying so many treasury bonds and giving money to americans. and in south asia, they're buying treasury . if they stop buying those treasuries and let the dollar go down, and capital rise, their economy will gain value and you will see the emergence of this class and other companies like china and investors who position themselves in advance to take advantage of that. >> how realistic is that?

you have companies like china that have to buy currencies to keep their currency at a competitive level. >> no, they don't. that's the mistake they're making. if they let their currencies go up, their own citizens will be able to compete with americans for the world's scarce resources and consumer goods produced. right now, we're benefitting from this suicide policy they have of debasing their own currency. when they understand that, and let their currency go up, then they will have an economic boom. that's when we pay the price. what will we do when all we can consume is what we produce? we're not producing enough. contrary to what steve liesman just said, we're not safing enough. buying treasuries doesn't count as savings. the government just spends that money. we need real savings in the banks so capital formation can occur so we can produce the things the chinese are making. >> it would be a really painful

process, can't do it in a fast manner, peter. paul, would you like to counter what peter said for dollar proofing your portfolio? >> we have seen china slowing down here and slowing down faster than the officials expected it to. if you see and appreciation of chinese currency and they're much less advantageous than other places in the world. we are already seeing other manufacturing coming to the u.s. we already have oil as pickens was saying, cheaper in the u.s. and oil manufacturing is cheaper in the u.s. relative to europe, the u.s. has a lot of debt here. at least we have the currency we can adjust and we have -- we don't have the regulations that europe has. i tend to disagree with the fact the u.s. is much worse off than

the rest of the world. >> peter and paul, great debate. thank you for joining us. we have an entire section of our website that is devoted to your ro proof investing. go to your euro proof.cnbc. >> also on the show, groupon gone wild, a stock down 50%. is it time for investors to really worry? also, is miami too hot to handle? a special report how the super oober rich could be blowing up another housing bubble. ♪

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and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex. for a body in motion. zynga down about 10% today, the lowest level since december over growing concern of longevity of online gaming on facebook and it may be past its peek. and getting ready to take on the oklahoma thunder, the heat, but there is another headline that could be heating up in miami. could the city be in the midst

of another housing bubble? is that possible? >> if you look at the market, it is on fire. we had a penthouse sell for $25 million, a record for a condo in miami. we had a house go on the market indian creek, closed in contract for $52 million. that would be the most expensive home ever sold in miami. any record, forget post crisis. we have the mother of all miami listings, the versace mansion on the market for $125 million. what's driving this market are wealthy foreigners from brazil, argentina, venezuela and russia and they're looking for a place to park their cash. >> when you're talking about a bubble, we're only talking really high end, not across the board? >> absolutely. the tiny slice top of this market. what's driving it are wealthy families, looking at miami as an investment, a safe haven right now in a very uncertain world. the problem is that is if we see

a financial crisis resulting from europe or a hard landing in china, this money could leave as quickly as it came into miami. >> what would you say the percentage mix of those doing it investments and those coming and residing? >> there are $80 billion of foreign investor purchased real estate in the united states last year. more than a quarter of that was in florida, most of that, miami. it's really foreigners driving this market. that money, as one appraiser told me, like a light switch, these people can turn on and off their purchases, not a family moving into a primary residence, like a stock with a view. now this hot money could leave like a light switch. you cited some things that might spark that like european crisis or china slowing down. we have both of those already. why isn't it triggering an exit of the money? >> right now we have a lot of un center in the world. we don't have a financial manic crash or collapse. that's what would really trigger

this. there is an argument to be made, in some ways, this is the most patient capital. these are not distressed sellers, even if the world is uncertain, not that they have to sell, very wealthy buyers. on the other hand, it is a very discretionary investment purchase for these people so they could just stop buying. >> let's hope it doesn't happen. thank you for joining us. coming up next on "street signs." oil is at an eight month low, the former ceo of shell oil says don't be fooled, it's not good news and a wires plan to give you one data plan and one bill for all your wireless devices. sure sounds great but could it lead to serious sticker shock? streets signs is back in two. ttd#: 1-800-345-2550 let's talk about market volatility. ttd#: 1-800-345-2550 in times like these, it can be tough to know which ttd#: 1-800-345-2550 way the wind is blowing. ttd#: 1-800-345-2550 at charles schwab, we're ready with objective insights about ttd#: 1-800-345-2550 the present market and economic conditions.

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we have a fine fill-in today. i was amazed about this commentary about europe. >> that was really something. you went through the conference call and read it, they talked about opening new doors.

any time a company continues talking about opening new doors, the story can continue. one thing they said was it's in europe, a landlord by landlord situation. there are no new malls. interesting commentary interesting contrasted with what you're about to talk about next. and ralph lauren in contrast said they would see a slowdown and michael kors says he hasn't been impacted. >> he's opening new stores because of the level of customers and new doors. >> and younger and hipper as well. >> i wear. >> do you? >> at home, yes. >> younger and hipper. starbucks guidance? >> partially because of europe, trying to get it going. there's a lot going on. they're starting to invest is diversification. this is a company that could go

through a bunch of rocky moments and long term story versus short term. juniper networks and tdoing well with the financial crisis. >> i'm amazed at the billion buy back. >> under armour doing high? >> interesting enough, one of the parts the bear story had to do with inventory controls. they came out and looks like they're working through inventory situations. if you do what i do, i look at a long term trend on sales ratios, earnings ratios, margin ratios, it doesn't look like they're doing better, a slowdown. you see them with a 2 for 1 stock split, why are they doing that? to get people to look the other way. >> 46% for under armour. and texas instruments has

narrowed its second quarter out look? >> go look at that same trend i always look at. ratio trend. quarter after quarter, slowdown and slowdown, no new news there. >> and agrium, another in our sights? >> i know nothing about it? and open table. >> good news for them. >> it's been upgraded. >> the street wants to get excited. i look at my friend who points out the most important, organic growth keeping slowing, decelerating rapidly. you have to watch the details in the story, competition increasing. >> up last week by 10% plus. >> the ceo was on the road talking up the story. look at the for profits right now. you look at any company, apollo, seco, even quinn street, which markets them, a story is going around right now senator harkin

right about now is about to introduce new legislation that would restrict the use of federal funding in marketing, advertising and recruiting folks for for profit schools. most people doesn't think it will pass but creates a headline risk and you never know where it's going to go. that for profit story, not over yet. >> thank you for stepping in there. oil is currently closing, around and eight month low crashing energy stocks. if we look at the damage done over the last three months alone, back in march, oil hit a 10 month high. since then, we've seen massive falls in stocks. for example, the natural resources, down 54% and 44% for neighbor industries and some energy names have seen quite a collapse in their share prices since we saw the high in oil three months ago. now on the close with sharon. what are we seeing?

>> reporter: today, we are seeing a mixed market for oil prices. the wti contract closing 60 cents or so and higher than that in electric trading and food prices lower and we have seen that spread lower in the last 24 hours. there are many factors that can continue to pressure oil prices and we have seen a dip in those prices since march. opec production is 32 million barrels per day and the record high for the year in april. they just issued that statement and looking for the saudi oil minister arriving and saying he's happy with current output and that will be a current risk factor, which way opec moves on production and keep in mind the iranian nuclear talks are important to watch. >> many things to watch with regard to oil risk.

thank you. our next guest says oil prices are a good thing for consumers but worried washington is not doing enough to make the good buys last and for affordable energy and president of shell oil company, great to have you with us today. we were trying to debate lower oil prices down 20% since the beginning of march, is it good or bad? the argument is both ways. my question to you, forget the slowing down of the global economy, how much is saudi arabians pushing prices down. >> saudi arabians are wise doing what they're doing now, moderate the oil price by increasing their production and holding it higher. if we had sustained high oil prices, i think we'd be headed for global recession and oil price collapse. what saudis don't want is oil price collapse because their economy depends upon it. by moderating oil price and

maintaining production, they're able to help. this country is still doing nothing about the future when it comes to oil. if the economy rebounds, we'll go right back up in the oil price. >> saudis are holding the purse strings. what is the risk if the price of oil gets too low, they'll start cutting out and start shooting back up again. >> they will. they're walking a tightrope, saudis are right now. when you're walking a tightrope, you don't stop, keep going. they're also teaching opec hard liners a lesson. they remember a year ago resisted the saudis' desire to increase production. by maintaining this high production rate, they're teaching the opec hard liners who really helps to set the opec price. snow a friendly reminder. that's the role of the saudis. what about the role in washington? >> washington is leaderless in my opinion when it comes to energy. we have no leadership from the

executive branch and partisan particles paralysis in the legislative branch. what this country needs, many have said it a comprehensive short term-long term plan. we have more energy than we can ever use but instead we are seeing in federal lands declines in production. and in private lands increases in the last few years has nothing to do with the federal government, has to do with private land owners and state permitse permits. thank goodness for that because otherwise we'd be more at the oil marketplace. we will get big reaction from a company that makes batteries for electric cars. fi phil lebeau, i know you interviewed the ceo a moment ago. what did he say? >> new technology they're disclosing. new lithion ion battery to allow it to work at lower extreme

temperatures without a heating element and should extend the life of the battery, they expect to produce this in the first half of 2013. potentially, this could be good news with a 123. look at the plant that produces electric batteries in michigan, suffered major loss in the last year because of quality concerns at that plant. last year, a 123 lost $270 million. you look at shares over the last three years, is the a stock that was once trading at $27 a share, now trading at just over a buck. an sec release they filed a week or so ago, they said they were at risk at being a going concern. we asked about the cash concern with ceo earlier today and here's what he had to say. >> we do have a limited cash position today as a result of the quality problem we announced a couple months ago. we have made i believe

significant progress adding new cash and going down that path and sit today very resolute we will continue the company by being very successful going out and raising additional funds for the company as necessary. >> david vieau says they have the cash to go forward and let's see if they can produce this battery in the first half of next year. >> john, i won't ask you specifically about a123, but alternative options, do you feel we're making enough progress on this? >> it's going go slow. it almost has to because the technologies we're using are not robust. the solar technologies are at such low efficiencies, wind is it unique own case itself. batteries, hydrogen fuel cells. we need government to play a key role in research and development. i don't think we're spending enough money on research and development at the governmental level and perhaps not at the

corporate level in some companies. it will go slow until the technology is more robust. i'm a big fan of alternative energies because it allows the human mind to be creative and we can get benefits from that. when we think we have the answer, we don't. that's the problem. we have politicians saying the future is now. no, it's not. the future is somewhere down the future. in the meantime, let's keep working on the technology, especially nanotechnology, which will bring some answers to getting efficiencies up in solar, battery life production, hydrogen fuel cell usage, i'm optimistic but 10, 20, 30 years out there but in the meantime, let's don't say we have it today. >> sorry i cut you off. next, herb has the story of a 34-year-old billionaire and his controversial company and also, what's in a name? we talk about groupon's latest

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welcome back to "street

signs." i'm john harwood in washington. the treasury department just came out with their may estimates for spending outlays and government deficits. it shows a government deficit of $124 billion in the month of may. that is about what analysts had expected. tax receipts are stronger, up since before the recession. we continue to run a deficit. the deficit is on track to be 1$1.3 trillion this year, although slightly less than it was a year ago. some signs that the economy has turned in a positive direction although not nearly as fast as anybody wants. >> john, thank you for that breaking news. in the meantime, i believe you've done pretty great reporting on one particular scott you have been watching and its name is ubiquity networks. >> you are so correct on that. i have talked about the controversy of yubiquity severa times but now this. the ceo buying the memphis

basketball game for $350 million. when i first heard this yesterday afternoon, all i could think, why would he do a thing like that? think about it. ubiquity went public at 15, stock shot up to 35 last month making the 34-year-old pera a freshly minted paper billionaire. since then, the stock fell to 4 1/2 now making him a paper hundred millionaire. here's the important point, pera owns a company not growing as fast as it used to. short of slapping that company's name on an arena or stadium, this is the very last thing you want to see, the ceo of a rec t recently ipo'd company or really any growth company do. you want him on the job 48 hours a day. we are not talking mark cuban here. pera -- mark cuban had already sold his company to yahoo! for a

bunch of billions when he bought the dallas mavericks. in this case, pera is working for a live, has to focus on this. you are an investor, knows there are a lot of challenges. as i say in the piece, it just doesn't look good. >> doesn't look good. we have another crazy groupon. remember the tuck you into bed? now, they're offering to name your next child. the name is, wait for it, for $1,000, the chicago times have confirmed it is real, leg xwit, doesn't mean it is not a gimmick. this has to be some promotion to drum up interest for father's day or something, right? >> they have a bunch of comedy writers they hired to do the scripts, now, they're giving them something really to do. whether it will work, i don't think so. klembough gets good attention but don't think it will bring

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. welcome back to "street signs" oil is all over the place today, so are the airline stocks. i want to look at the best and the worst first. save that would be spirit airlines. today, citi says the company, you should buy the dips on this, and jet blue the worst of the bunch, decent traffic numbers in terms of traffic and capacity, not good enough, expectations for airlines are now really high. >> go figure. thanks very much for that. shares of verizon trading at levels not seen since 2007.

today, verizon offering new options for single data plans, one data plan across multiple devices. it got us thinking, if your wireless company provide it to all of your gadgets, what's the point of wifi. todd, do you think this is a nail in the coffin for wifi? >> no, you have a standard wireless provider, and cable companies. and verizon, they cap out at 10 gigabites, so it's not enough to shift over all the way. >> who wins and loses in this, james? >> generally verizon is well

positioned. it means that for customers who want to add a smart phone and tablet, the damage to that gets lower. and i think this helps in rolling out in the industry as a whole, getting people to use their devices and down the like as they find more uses for those devices. >> do you think that someone else like at&t would follow their lead on this? >> i would be very surprised if at&t didn't follow with this. they align their revenue flows. all at&t and spending is on data. voice and text and there is no incremental tax associated with that. both have the same incentive,

and both have pricing plans that look comparable. >> todd, the people at home are thinking what does this mean for me, will it cost me more or less? >> it cost you more if you're on a individual plan. somebody with a standard plan, 750 minutes and 1,000 messages will pay $10 or $20 more, but this is great for families. >> so some people are prepared to pay extra? >> now they will pay more for services they don't need. more for minutes and and texts when we don't use them as much. >> okay, we have to leave it there, thank you for joining us, james and todd. up next, potty mouths get something to curse about in one massachusetts town. in that time there've been some good days. and some difficult ones.

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okay, let's look at the disaster today, that is navistar. a court issued a ruling that says that they cannot sell truck engines that does not meet the epa standards. they will ask for a rehearing. and in one massachusetts town, the