consistent, we'll need to build that back up in higher prices do this. >> all right. jared, thank you very much. all right. closing the live cattle pit, ty. back the you. >> that's all for this special edition. you can hear the decibels lifting out there. thank you for watching. we have more on cnbc.com. "street signs" begins right now. and welcome to "street signs" where our special coverage of drought 2012 continues. this hour, a special look on its impact on food prices and the real story of just how bad it is out there in the fields. big versus small. not me versus mandy. a debate on the merits of going big or staying home. was there a bad bet dumping intel? border war may be brewing between america and canada, it involves costco, mandy. get your gun. >> i've got it.

big in personality. might be small in stature. we're sure of cause and action's anything but decisive with the dow moving in 54-point range and only about half of that if you take away the first half hour of the trading day with the s&p 500 barely moved, as well. but both the dow and the s&p still have a shot at posting weekly gains for the sixth straight week. the nasdaq is easily the best performer of the three and is on track for its fourth gain in five sessions. let's get down to the floor of the new york stock exchange. bob pisani is joiping us. hugging the 1400 level all day and wondering about the catalyst to break them apart. >> well, look. it's going to be what's going on in europe the next few days and what happens over amongst comments from central bank officials, certainly, going on in the midwest next few weeks matters a lot. getting heavy volume in the

exchange traded funds. look at this. this is the tlt. this is where you belt on where the bond market is going, particularly the long-term bond market. 20-year, 30 years and some of the 10-year ones. we are at a 3-month low here and very important. etfs with heavy volume and looking at the opposite end, the people betting on the short end of this trade here, this is the tbt. this is betting that your market's moving up to the upside. this is a three-month high for that, as well. obviously with the 10-year at 1.8%, there's some people betting corporate bond issuances coming in and the yields going up at this point in the bond market on the longer end of the curve. heavy volume on a day not much heavy volume going on and crude's busting out. heavier volume in some of the etfs with that. here's the u.s. oil fund and even gold, the gld and iou not

had much volume. finally ending with a curveball. remember manchester united? >> yeah. >> goes public at 14. everybody was afraid it was going to break below the issue price of 14 after they stop supporting it. they have probably stopped supporting it. $14.39. up every single day. some people are rumors around and maybe finding new star players, hire them. you never know. but that's the problem with this sport. dependent on the superstars to bring in. back the you. >> still at those levels hardly hitting it out of the park, right? since you mentioned etfs, later on we'll talk about etfs on the death watch list. thanks a lot, bob. >> okay. well, as we know all know bigger is usually better but does it matter with stocks? joining us is steve wood and with us from cleveland, ohio, mark temper, managing partner and founder of strategic wealth partners. steven, does the idea that if the world crumbles america looks

good or better still hold? >> i think so. you're seeing that play out for the balance after this year. the united states relative to europe, the politicians are more decisive. the fundamentals sometimes worse. corporate fundamentals are better. the united states deserved a safe haven status and more defensive names within equities and a bit of a risk-on trade with equities but within equities if you look at the defense of a dynamic index, it's more defensive and conservative. >> how much more decisive and conservative should we be or start to get aggressive? because everybody that said this rally was dead has been wrong for quarters. >> they've been wrong on that. and i think you don't want to overrant right now. if you look at the fiscal cliff, the political shenanigans in washington, the political indecision in europe, if we have a reasonable compromise in washington you could see a nice move upward on equities in the united states, maybe less so in europe but europe stock picking

is more important than just looking at the region. >> i think it was an irishman that coined the phrase shenanigans. mark, it feels like the market is silently rooting for lackluster economic data. this morning better than expected home builder sentiment, industrial production up and it feels like the market wants something to be lackluster and brings the fed in to play. am i reading this correctly? >> you're absolutely correct. this entire -- the last melt-up we have experienced is all really due to hopes for qe both here domestically and over in europe. once draghi said that the eurozone doing whatever it takes for the euro to survive is when we saw the rally. i guess we are looking for poor economic data right now in hopes of qe and the wrong thing for investors hoping for. >> certainly is. moving higher for six straight weeks and doesn't feel like it. incremental in small margins.

>> i'm not con vined. if you look at what's happening with the federal reserve right now, i think the data are slightly mixed. maybe a hair positive and so i think there's ammunition. hawks and doves. probably the biggest of probability before an election is fed likely stand pat. they don't want to be seen as overly political and getting heat so i'm not convinced that a qe3 will have as much of an impact as lot of market watchers like. >> we have to be political this year. it's an exceptional year. do you think it matters who wins the presidency as it pertains to stocks? >> i absolutely do. you know, i think, you know, with paul ryan in particular, i think he's definitely dollar bullish over the immediate term. and should romney and ryan win i think there's a bit of a pullback in stocks. he is fiscally conservative and at the same point in time we may have to take our medicine now to be in a much better situation

three, five, ten years from today. >> a good point. pull back on the spending, could hurt companies especially related to infrastructure saying dollar bullish, does that mean in the romney/ryan ticket wins, you would dump stocks with foreign exposure because it's more expensive as the dollar goes up? >> yeah, i would. that's a good thing to pay attention to but what drives our economy, obviously, 71% of the economy which is consumer spending so in the long run dollar bullish is really going to look great for our stock markets, economy. i just think in the immediate term you will see somewhat of a pullback. >> i think you are seeing a great economic experiment. this side of the atlantic stimulative, fiscal policy and monetary policy. europe, just the opposite. austerity and my guess is even though a romney administration might pull back a bit it is at the margin. >> i want a little specific here. mark, last time here on "streets

signs" is april and three picks, two of them done well. lexmark on the other hand is kind of -- are you sticking with lexmark? >> yeah. as far as the small caps stocks go, we like all of them. pointing to the thesis of invest in companies going to benefit small business owners in a slow growth environment. they all have high return on invested capital, high earnings yields. they have high def depend yields. lexmark, a reason it's beaten up is exposure to europe. and, you know, right now, we're not prepared to call the bottom in europe by any means, we do think that over the course of next six to 12 months, investors, there's a strong possibility to see the opportunity of a lifetime investing in europe. i wouldn't be a seller right now of lexmark. i wish i could rely on the tape and tell everyone to get in today opposed to three months ago but yes a good buy still

today. >> got it. thanks so much, steve and mark. >> thank you. let's get a market flash now from brian sharktmctman. >> talking about drought. barclays initiates a lot of fertilizers saying, quote, despite the recent gains in the stocks we see attractive upside in certain stocks. those right there are the best picks, number one of those is cf industries and, for example, they have had a run-up of 45% year to date. barclays says there's still room to run. back to you. >> thank you. on deck, etf death watch. herb raising a big red flag on the growth of etfs. we'll take a look at how many could be destined to die. plus, the dumping of intel. should you follow the oracle or time to get in? ban canada? why a small town wants to make their costco an american only zone. >> what about the aussies? are they banned, too?

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gel shares up since last august and roughly up where it's been trading five years ago and a vote of no confidence of warren buffett's berkshire ha

hathaway. matt berger and with us hans mosesman. hans and craig, thank you. hans, first to you. a good move selling intel by buffett? >> the issue's timing. i think if you look at the lo longer term, probably the right thing to do. i think there's muddied horizons ahead. there's a technology arm of licensing microprocessors that's a virus in the computing world. we like the dividend yield but can't disagree. >> craig, you were billed as the ber of this debate. right? but when i look at it, there's nothing particularly bearish of what you're saying. no one is super bearish on the street of intel. we haven't found a single sell. why do you think that is? tie company's execution has been tremendous. they have advantages in manufacturing and r&d scale.

and the company's got a great position in server. are they're highly profitable. stock trades at a nine times pe. hard to be real negative. i would rather be in growthier stocks like a qualcomm that's exposed to iphone 5 and 3g, 4g cellular trends and the ipad, the cellular smartphones are eating in to the growth rats of the pc markets and choosing to be with the growthier name of a qualcomm opposed to a more pc exposed name like intel. >> why do you think berkshire hathaway dumped them? >> i don't know. intel held up well in the selloff in europe over the european macro. it's outperformed versus other technology stocks narrowed so potentially there's more attractive alternatives out there. >> seems like a headwind.

pc sales growth is down. tablets are up. but on the other hand, the growth of the cloud is building the data server farms. intel's a lot -- how do we balance it out? who's winning and who's losing for intel? >> i think that's a good question. i would look at it from an architectural perspective. i think that architect ure is nt very efficient in terms of mobile applications. the data center in the cloud is very significantly migrating to arm, that architecture i mentioned before and there's a devaluation of the x-86 and i think intel over time has a difficulty to fill their fabs with $150 microprocessors. process sores pricing down to 30 bucks. that's a tough dynamic. >> you said, hans, the fourth quarter guidance needlessly

aggressive. are they setting themselves up for disappointment? >> yeah. they were first in terms of earnings and bullish and everybody afterwards basically saying things aren't that great. the server product is not as growthy as some expected and doesn't buy them anything to be bullish and i think setting themselves up potentially. i think they could hit the numbers potentially but you can't beat them. in this market, that's a tough game. >> craig, if intel shares fell, at what price would you put a buy rating on the stock? >> i think at probably $22 it is an extremely attractive value and the company is still making a lot of money. they did grow server shipments about 14% sequentially in the second quarter. they expect further growth in the third quarter and hard to keep growing like that off a larger and larger base but within the control they're doing the right things. so, 22 is about 7 1/2 or 8 times ratings on the stock.

>> hans, bouncing off the earlier call on qualcomm, what do you think about qualcomm versus intel? >> i don't cover qualcomm but i prefer invidia. the game is more pc like and i tell you this invidia are a very, very dominant player in the pc maker and that's the game as the world goes up the food chain and you fight it out with intel and netbooks and workstations. >> thank you very much for joining us. >> thank you. well, just ahead, some rare good news for america's car dealerships. see which brands are wheeling an dealing. profiting from education. the number of students in public charter schools has quadrupled in the last decade. one fund learned how to capitalize on the growing classroom. we'll be back. [ engine idling ]

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well, some good news if the automakers. dealerships are coming back. the consulting firm urban science says 108 more dealerships at the end of last year than the end of 2010. number of dealerships typically falls by 2% because of retirements and downsizing and any gain is a significant

number. fiat and chrysler added the most dealerships. fiat because they're new, of course. and chrysler added about 50. dealers are on track of record number of deals per dealership this year. public charter schools are popular as parents seek more choice but are public charter schools a wise addition to the investment portfolio? david, greet have you with us. in your reit you have various things but why would i want to add charter schools in to my portfolio? >> well, i think it's just a very stable basis and recession resistant. it's a high demand product. there's 400,000 kids on waiting list for charter school. the industry growing 12% to 14% a year. it's a high growth business. it's a public payer. the state is the payer on this category.

and you did business with states with fiscally treasuries it's a solid business. >> let me ask you about potential risks to the charter school portfolio because i understand three of the nine imagine schools is scheduled to lose the charters for the next school year. does this pose a risk to investors? >> well, occasionally. we have the management ranges on a masterly and no loss of rents to the company and occasionally there are losses of charters in certain areas and they're used a particular circumstances. in this case, it's a combination of relationship with the supervisory authorities and educational quality. sometimes quality is difficult to change in one, tw or three years. it's a long term proposition so there are some of these that occur but we've structured our affairs so this is not going to impact our rent role and we see this as a -- maybe a good

experience as the industry thins out some of the less performing schools abe we move on in to the best performing schools. >> there's a public backlash in areas to charter schools given the use of public money. any risk to the growth of charter schools generally? >> there's not a lot of risk. this has bipartisan support. arne duncan in the obama administration is very high on it throughout their work in public education. so we have both political parties very solidly behind it. you have high demand. you have high growth and demand and most of the studies bring charter schools at even or better than district public education so i think it has some risk because it's new and emerging and it is a high growth category. same time much more going forward and a safe area of investment. >> you have invested in retail centers, ski parks, you have

charter schools, movie theaters. if you could buy one thing right now, david, one type of asset in real estate, what would it be? >> well, we would probably have the charter school business as the highest growth and most appealing segment of the portfolio. it is the most high in demand. the most recession resistant and great opportunity set with 500 schools starting every year. it's a $2.5 billion set in rough measure annually. >> the figures you have in the reit here, 120 mega plex theaters. every time i go it's kind of empty. this is an area that i think is struggling in this economy. is this an area that you would think of scaling back? >> no. no. the theaters, box office and attendance up nicely this year. depending on how you want to cut it, it's -- you know, you might go sometimes in a matinee or a

title and be thin because there's capacity in the industry but by and large performing very well and our coverage is going very well and we love that economy and we're investing heavily in it, as well. >> i must not be going to the right theaters then. thank you for joining us. >> thank you very much. well, there's a potential border war brewing to the north and it involves costco. get this. residents of bellingham, washington, a town north of seattle, near the border, want the wholesaler to have american only hours to reduce traffic from canadian shoppers. canadians crossing the border en masse to buy in bulk, fill up the gas tanks. costco's had to add off duty police officers to manage the traffic, hire more workers which i thought was a good thing to address the customer concerns. >> i understand why from a customer point of view to keep it to themselves, keep the crowds out, but isn't this a good thing?

more customers, more revenue. more workers as you say. isn't this a good thing, net-net? >> i'll try to resolve wit a novel resolution. build another costco nearby. >> just for canadians. there you go. canadian costco. a market flash now from brian shactman. brian? dndn. with chatter of possible takeover, stock heavily shorted, the shorts run for cover. 27% of the float is short. and that's the thing going on here rmt it's up about 6%. mandy? >> it is. next, how the drought is having a not so sweet impact on one of the sweetest drinks in the market. one investor betting the farm on farms. is he worried? and there's a danger of a fiscal cliff. we talk about it every single day and then there's this. the story behind the violent crash.

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it is "street talk" time. welcome back. brian. herb is filling over the past few days but let's walk through the big stock story that is have kind of flown under the radar.

first on the docket, though, staples, yikes. really stapling itself. >> down 16%. really, blaming weak growth fears here and abroad. the international slowdown a part of the staples story and sales unchanged. the market hoping for a gain. keep in mind, bad news for someone like lexmark. talked about them earlier. ink and paper sales down, as well. analysts saying bolder action may be needed. keep in mind, this is a $20 stock 2 years ago and a $30 stock 5 years ago. >> cut about 200 north american jobs. next up, this is actually a stock in honor of herb. green mountain and bouncing back recouping some of the 6% drop of yesterday. >> this stock up. almost -- >> almost. >> exactly what it lost yesterday. mentioned k-cup price tiering. whatever that is yesterday in the conference call and said that the e spres so systspresso.

it's down year to date. the market wants to see new products and rolling out. >> yeah. i think that's three in very short order. good grief. grief? stock is down. >> what do you mean? >> don't you gripe. >> greif is a good story. well found, mandy. industrial packages. very environmental sensitive. right? >> bottles of stuff, right? >> cut the guidance to 445 to 455 million in sales down from 500 to 525 million. said industrial packaging down. good news. the company said, quote, signs of firming of the market in europe. so europe is down but they said there's signs europe to them was starting to firm. >> may be stabilizing. >> earnings out the 29th of this month, as well. next up, could it be lights out

for suntech. very, very tough space to be in. >> i don't know what else you say about a stock or an adr down 90% over the last year. replacing the ceo with the cfo. concerns of free cash flow. right? remember back in july, this company came out and said it is likely been defrauded by a former partner. there's fears about the ability to cover convertible bond. due early next year. rack roons in the walls. i don't know what else to say about it. down 85% over 1 yore. >> might have to be delisted from the u.s. finally, a monster day for monster worldwide. speculation here. >> lots of talk out there. mww could be a takeover target. up 2% in the past month, down more than 20% in the past year. rumors, chatter. there's been talk about private equity firms and private equity interest. just pointing it out. those things that conversation is out there and mww up 3% today. >> okay. oil popping higher. let's get the final trades with

our friend bertha coombs. >> hey, mandy. closing near the highs of the session here at the dollar has eased off of a little bit this afternoon. we have seen a move up in oil with brent up here at $116 a barrel. wti getting a boost from a larger than expected draw on the eia at over 3 million barrels there. just about. and we also have a substantial draw with gasoline. the outperformer of the day as the prices continue to climb at the pump. >> thank you very much, bertha coombs. we are covering the drought of 2012 here on cnbc. and across all of the networks on nbc. and today, the agriculture department designated 172 more counties in 15 states drought disaster areas so now with most of the country suffering under these hot and dry conditions, we're looking at the ripple effect for investors and consumers and you. first of all, jd penn in illinois from deere and bringing

us facts and figures of how bad the drought is and the immaterial pact on the economy and david, a former corn trader. i want to start with you, jb. i know you don't want to comment on the earnings but i want to bring up something that the c eo said that caught my eye, the u.s. drought could positively influence the outlook showing the need for deere's agricultural equipment. i would have thought it means less demand for agricultural equipment. >> well, quite the contrary. the drought, of course, has shorted the supplies of commodities. has caused prices to run up. and those much higher prices now are providing incentives to farmers all over the world to expand output and we're beginning to see that as the southern hemisphere, especially brazil and argentina begin to plant a crop. we expect intensive production

in that part of the world so the higher prices giving a real incentive for farmers to expand agriculture activity. >> does that mean prices ease up with more crop yield in the 2013 yield around the world, as you say? >> they will. it's just matter of time until new supplies begin to come on to the market. but it will be some months before that happens, of course. we have to -- we're just now planting a group in the southern hemisphere and then after that, we'll plant another crop in the northern hemisphere. >> jb, what are your projections for corn and soybean prices next year as you forecast and model out? >> well, in our earnings report this morning, we indicated what the futures markets are indicating. and as you well know, you can look at the futures prices and for all of the major agricultural commodities, crop commodities, the prices are

still strong, well in to 2013. >> but do you -- i'm sorry, do you believe that's correct? when you forecast, do you see $8 corn for the next 12 months? >> well, i think it's going to be a while until we ration the utilization of the crop that we have and of the crop that we're about to harvest. so, i think that it will be a while before we know exactly how that's going to shake out. but it's going to take a season or two for us to fully meet demand and to rebuild stocks to more comfortable levels. >> as we sit right now, jb, everyone feeling the impact, at the front lines, farmers hard for them and hurting people going in to the groceries. what is the economic impact for 2012 as a result of this drought? >> well, i don't think 2012 is going to have much impact on our business. the remainder of the fiscal year for us. but when you begin to look at

the agricultural sector we're projecting as we said today grocery receipts higher than last year but that doesn't tell the whole story. you have a life stock sector in many parts of the united states where the pastures have been completely obliterated. feed costs are much higher. margins for feeders are way down. so there are some parts of agriculture that are not doing nearly as well as the crop segment. then as you suggest, higher input prices from commodities for food processors will begin to push food prices somewhat higher as we look on in to 2013. >> jb, thank you very much. appreciate it, sir. >> you're welcome. >> now dave kaf inaugurate part owner of a farm south of chicago. how bad is it? >> very bad. and i was down to the farm two and a half weeks ago and land

and we normally will get 190, 195 bushel corn per acre on that just saturday the -- my brother-in-law, sister-in-law who farm it, they estimate, hoping to get 75 to 80. so in that fsh from that perspective, it's a disaster from the amount of crop that we're going to see grow. but fortunately for my in-laws and my partners and a lot of the other farmers, a lot of farmers in illinois have crop insurance. >> dave, i got stumped this weekend up in wisconsin until this morning and somebody said is this good news for the seed growers? because you have to plant more next year. i have no idea. is this a wild planting season then next year or type of land impact everything for years? >> well, no. i think it will -- it's going to have an impact, certainly.

you can't plant corn on corn again. remember, we planted a record amount of acres in corn last year or i should say for this crop year. next year, they'll probably rotate the crops. you may not have as much corn planted as you did this year. but i think it shouldn't have an effect on the seed producers because they may cut back, the farmers may cut back on the equipment purchased but buying fertilizer and seed and get right back at it in the spring. >> dave, what is your opinion on the debate if not argument between the ethanol producers and livestock producers? >> well, it's a classic case you can't please all the people all the time. i think the thing that goes unspoken in that is the mandate in ethanol produce up to 15 billion gallons of ethanol a year. and if the one thing that goes unspoken there is let's be -- make math easy. if 10 billion bushels of corn

goes in to ethanol production, a full third of that comes back at high protein feedback in to the system. so it's not a total loss of 10 billion bushels. i can understand the feeders' anguish right now because food costs have gone up but really what's happening in the ag sector, it's a very risk -- you need very sophisticated risk management tools available to help mitigate some of the dangers of price spikes like we just had. >> thank you very much for joining us. >> thank you. well, our coverage of the drought of 2012 will continue next and it's providing really some problems for sunny d. we'll speak with the ceo of the cost squeeze and how they're dealing with it. a soap opera-like plot twist. don't go away. if you are one of the millions of men

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and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? i'm bill griffith. a huge two hours, closing bell. one of the strongest hawks on the fed explains why he thinks anymore asset purchases could complicate the fed's exit strategy and encourage congress to put off getting the fiscal

act together. cisco set to report after the bell tonight. the ceo and chairman john chambers breaks down the numbers just for us here on "closing bell." and a big mitt romney supporters but ken langone is critical of paul ryan. we'll get to that. we look forward to seeing you at the top of the hour from here at new york stock exchange. back to the "street signs" gang. mandy? >> thank you. disaster in the city. today's disaster du jour is urban trends. down on a big miss. the market cop now down to $169 million. that's a 18% drop there. priceline 307ing on news that william shatner's priceline negotiator is resurrected. the spot doesn't address how the negotiator survived but it does pick up with the shatner character on a beach with a

surfboard. stig around to see it, i guess. from the sunshine stock to the drought's drain on sunny-d. yes, the drink. formerly known as sunny delight. sweeteners will go up. the ceo says it could slam mom and pop at the cash register. let's bring in billy sear. he is's part of the young president's organization, chief executive network. billy, how much are your costs going up? >> they're going quite a bit. the impact of the drought is big. it happened incredibly quickly and the impact of it's around for quite sometime. you know, this is the worst drought we have had in 50 years. the corn crop we are going to have this year is smallest one since 2006. and this all happened incredibly quickly. back in june, we thought we would have the biggest corn crop ever. we planted more acres in that year since 1937 and last two

months with intense heat and no rain, the price of corn has gone through the roof as the market or as the supply of corn dropped by about 27%. it's a big impact and for us we're paying 19% more this year for corn than last year. and you can expect the same kind of increases as we head in to next year. that's a big impact for consuming. >> you'll raise prices or eat the difference. which one is it? >> well, this year, this year we raised prices. we are waiting to see what to do for next year but the reality is it's a significant cost increase and it really doesn't have to be that way. the -- previous guest talked about the ethanol mandates. 40% of this year's corn crop going in to production of ethanol. not feeding people but going in to the gas tanks and that made a lot of sense when congress put that mandate in place in 2005. corn prices were low. crops were plentiful. but we are in the middle of the worst drought of 50 years right now and we also have a very weak economy and in that environment

it would make sense for the epa to wave the mandate of the ethanol. >> billy? >> yes. >> since you said you have had to pass this on to consumers this year, how much has that hurt demand or sales? >> you know, in our business, the way to think about it is for every 1% to increase the price, the price -- the amount of volume you sell goes down by the same percentage so up 1%, down 1% in volume and pretty much happened across the industry. your previous guest talked about rationing demand. we are seeing it. it means products get more expensive, so expensive people can't buy them any longer. >> what's the solution here? for example, instead of corn syrup, can you go do sugar? i know that it traditionally costs more but maybe that gap is narrowing or maybe put more real orange juice in sunny-d. >> well, the sugar is expensive. u.s. is a protected market and the sugar price in the u.s. is

much higher than the sugar price that you'd see elsewhere in the world and this year brazil's having a lot of rain and the sugar price is higher than it should be. the real slouolution is to get of the ethanol mandate except for the short term. when we have a drought, where we have a short supply of corn, we should get rid of the mandate and epa has the right and authority to do that in times of economic distress and we think that conditions today merit that. >> billy -- >> snap. >> we just jinked each other. we said your name at the same time. >> hope it doesn't bring bad luck on you. thank you. you can read more on the drought's impact an a blog of u.s. secretary of agriculture tom vilsack on drought.cnbc.com. our poll question is, has the recent hike in food prices forced you to make changes in your budget? with over 27,000 votes, 53% said, yes. 47% said, no.

i guess that's pretty evenly split. coming up, herb's look at etfs on the death watch. what happens to the money? and we have got the story of the two luckiest race car drivers that you have ever seen, that video from pike's peak. yeah, they're okay. ♪ ♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science and the human element can solve anything. solutionism. the new optimism. we believe the more you know, the better you trade.

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there is the fiscal cliff, and there there is this. jeremy foley and co-driver survived this crash. this is a testament to roll cages. >> absolutely. herb is here to talk etf's and how a great deal of them are dieing. let's bring in nolan, and ronald

rowland. ron has his own etf death watch list. how do you detect an etf that's about to die? >> i look at a couple things. primarily assets under management and trading activity. when both of those indicators are low, that tells me the fund sponsor is not making any money. is having to put up money to keep this etf alive, and so if it doesn't have a large strategic purpose for the fund family, then the chances of it closing become very high. >> i think what's very interesting here is i wrote a piece about this today on cnbc.com, and ron has this etf death watch blog out there, he's had it for four years, and as he pointed out to me, the 229 etfs

that have been delisted, that's how they die, but interestingly enough, he says more than half of all actively managed etf's a are on the list. there is only like one in 2008. hammen from advisor shares runs actively managed etfs what do you think about that noah? >> i think the assets under management and based on how long it's in the market is too short of a time. it takes time for investors to watch a portfolio manager and see how they perform and actively manage a strategy. so six months is really not an

appropriate time frame to judge the access or failure of the fund. >> but we talk about every day the lack of volume to keep up real trading activities for stocks. >> well, two reasons. one especially in the actively somethinged space, it takes time to understand how a manager will perform not just in the short term but in the long term over multiple market cycles. trading volume is not indicative of liquidity for an etf. it's an open ended product that can create or redeem shares instantly for anyone. so if you needily quid ti to buy or sell shares, there's always something available to transact with you. >> what i love here, at the bottom of my piece, there is a number of etfs under the radar,

and the issue is, are they trying to -- they might be on death watch. they don't have the assets under management, they're trying to get a performance track record so they're there as mutual funds decrease and as etfs increase in numbers. what do you think about that? >> i agree, investors look at the longevity of a track record before they make that decision to buy. getting started now and establishing that track record whether you're a smaller firm or a bigger firm like pimco is important. it will really drive an investor's decision. thank you, coming up next, a new twist to the price is right, or the price is equal rights. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks.

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call now to request your free decision guide. a really big change is coming to "the price is right kwlright ." it's holding a contest for the first male model. they will get a week long stint, and we want to nominate our guys. aren't they beautiful? herb and brian, lieu tis. first, i'm taller