the history of gold. >> in the meantime, triple digit gain for the dow. three positives days in a row. first time since my birthday, april 30th. >> all comes back to you. i think i speak for the i go in the flower when i say, yay. >> i'm not sure that warn warrants a yay. but anyway, thanks for watching "street signs." "closing bell" is next. >> hello, welcome to this special edition of "closing bell." we've got a big show ahead. >> why would they possibly have that in aspen, colorado? at this time of year? >> go figure. >> it must -- >> look behind me. >> we all are. trust me. one of my favorite places on earth. state of colorado. by the way, back here on wall street.

another rally going. stocks back above 15,000 on the dow. and as they were just pointing out on "street signs," gold is back below 1200, or it was around settlement time. but first, what is coming up here, maria? >> well, a lot of talkers coming up from the festival, bill. we will talk with lloyd blankfein. and we will talk about the state of the firm, banking endis try and more with lloyd blankfein. also, hank paulson here in aspen. he worked with ben bernanke. i asked him if he was surprised the feds still had to do so much with the stimulus five years later. we will also talk about china economically and u.s. relations. a tomorrowic, as you know bill, that hank paulson knows well. we will get his insights on china. on this market day driven by the fed, jim grant of grants

interest rate observer coming up. and market in the triple digits, bill. >> yeah. let's get you updated on how we are trading now. dow was up 165 points at the high of the session. off that now with gain of 123. back above 15,000 at 15,033 today. nasdaq also with a pretty smart gain of three quarters after percent. 25 point. at 3401 and s&p 500 index. higher by the financials, by the way. that's the leadership group the last three sessions as we move higher here. s&p is up two thirds or 11 points at 1614. >> much of the action today, a reaction, to two federal reserve policy makers. assuring investors that ben bernanke may have been misinterpreted and he is not easing up on the stimulus as soon as some people think. in a "closing bell" exchange today, mark miller, scot graham with us as well as our own steve

liesman and rick santelli. good to see everybody. thanks for joining us. steve, let me kick this off with you. misinterpreted. we had a knee jerk reaction to the down side. fels like after thinking about it and recognizing that it is data dependent, investors are changing their mind as far as when the take begins and what it means. >> i think it is the latter that is more true. what fed officials are saying is that when you hear bernanke talk about a schedule for tapering, it did not affect plans for raising interest rates. and out there in force trying to convince markets, and they brut out one of their bigger guns today, the president of the new york fed, has a permanent vote, to say, look, yeah, there's a plan in place. and he pretty much agreed with that plan. but that plan does not affect when the federal raise rates. he believes the rate will remain low or zero for a long time to come. and in fact, hinted further that they could remain low even after

the unemployment rate goes below 6.5%. >> seems to me that all of the traders after bernanke spoke are like a bunch of kids in a long car ride and they are say, are we tle yet, are we there yet, are we there yet? scott graham, has the treasury market overreacted it ber bernanke? >> i think so. at the end of the day, he talked about taking his foot off of the accel rerator and not hitting t brakes. i think it spooked a lot of people in the marketplace. i think people have had long positions knowing that we have a natural buyer, that being the fed and that there is some speculation that later this year that they do back away. >> when we have 266 on the ten-year, did that make you want to buy more. >>? the ten-year note backed up a hundred bases points the last month and a half. and i think adding duration to your portfolios, certainly the

front of the marketplace with two notes back above 40 bases points, it will remain at the table much longer than necessary. >> michael what about that? does 2.5% give you pause to put money into fixed income? every time we get above 2.5, 2% on ten-year, the market sells off? >> i think it might make sense. i think for retail and individual investors it doesn't make sense. but i think that fed messaging and their attempts to get message are nonsense. i'm trying to find a polite word there. it seems like nonsense. steve, when he came out with that huge blast of sunshine in his remarks because they don't see risk to the down side any more, they think that unemployment will be down. they think they can taper according to the calendar. a very positive message and whether they raise rates or they

jog on rates higher doesn't make a lot of difference that the wake of the severe mark rhett action we see the other fed governors looking at him thinking, you think he used enough dynamite there, butch? this is really a bit much. i think they are trying to manage a message that i don't think they got right. but i think we will see more of the back and forth. >> wouldn't you do it, michael? the fed is using a very unique tool. it is one used in the past but leaning much more heavily on it now, michael. the tool of forward guidance. trying to not only set rates in place right now, to affect current interest rates but also to use foreign guidance to guide policy. and the fed official will be the first to say that they don't have it exactly right. there's a bit of groping in the dark here. as they try to deal with the problem that plagued japan for 20 years. that's the zero interest rate problem. once you hit zero, not much more you can do.

two of the well known tools, well known to be in the tool box and the alternative to not getting this right is japan. >> but i think steve, don't you think it leaves investors feeling like a pin ball getting battered around back and forth? >> yeah. as the fed learns how to talk to markets, begins to understand how the quantitative easing tool w, i would say that what we learned in the last couple days or weeks is that the fed is not clear about how to talk to markets about the forward guidance here and a process that will change over time. they learned a lot and the market laeearned a lot. but this is all new. >> and yet ben bear narnanke han so clear. and you are not a fan of all of this stimulus but you can't say bernanke hasn't been transparent. >> rick santelli, the market is

gold and is that part of what is going on here, is that why it is going lower? >> i think gold is what i call the squishy v trade. squishy varience. basically, the biggest driver in gold of my opinion is the dooms day crowd. whether you believe it or not, i think they were instrumental in boosting prices. i think they finally figured out what the game is. the fed, in my opinion, isn't fixing anything. what they are doing is taking varience. taking the fat tails away. taking the upside of the economy away and taking what they perceive to be the big down side of the economy away. in a setting there's no room for dooms day gold trade. that's my opinion. >> scott graham, do you agree with that? is that message from the bond market as well? the fear coming out of here. >> economy is showing signs of real resilience in light of the

sequester and tax increase. there is a huge difference between tapering and quantitative easing and i think bernanke is trying to get the messaging. markets are coming through the economic crisis that juncture very well. there is a fear factor alleviated from the marketplace. >> let me ask you, scott, while you're here, do you think some of the investors that are selling gold today are in fact putting money into stocks? is that a little bit of a rotation we are seeing today? >> well there is a global retags into the equity market. i'm not a gold expert. but i would have to think that gold has had such a good run, a fear trade. and if people are believing that the economy will make it through this soft patch and the last five years, and in descent shape then there should be a rotation out of gold and into the equity markets. >> give me that six box again. i want to see a show of hands. who is gold expert in anyone? anyone? of course not. >> i have a little bit of

contrarian gold. i haven't liked gold all the way up, i will admit. and i don't like it on the way down. but one good idea is this, there is thinking that people should own a piece of gold in their portfolio to ward against either hyper inflation or global security risk. if you don't have that piece, this does not seem like the worst time past several years to put that piece defensively into your portfolio. i'm not saying gold is not going down more -- >> sticking your neck out. >> i would suggest there is a concept that you should have a piece defensively in your portfolio. if you don't have that, what you do is hold that piece for many years and hopefully it never does any good for you. but it is there for just that reason. >> i've been with steve on the gold point. but i think that to a broader point for investors, you go back to with a scott says, this rotation from gold or bonds, into stocks, i think there is also a rotation from the risk

trade to the less risky trade in the equity markets. again, bigger balance sheets, dividend payers, blue chips. i think will continue to see a -- receive a lot of funds. particularly if the fed continues to kind of be awkward about their messaging as people get more worried. i think those are the places they will end up investing. >> very good. thank you. >> great conversation. appreciate it. this market of course, have is -- stocks having another good day today. as you saw, gold getting hampered. check in with jackie deangelis. over to you, jack. >> after looking like it was stabilizing some what earlier today, gold closing at 1211.60 but now down more than $29 at this point. 1200.60 on the knows in trading. gold stocks are still higher, even though bullion is selling off. these names were crushed yesterday but are hold ariing t

own on today's rally. in the meantime, in terms of individual names, take a look at shau communications. bm raising its price target. that ahead of earnings report tomorrow morn ppg also j. tomorrow morning. there are store checks for jc penney and you can see that stock up today. maria? oh, bill? >> anybody. we will answer you, jackie. about 45 minutes left. high is 165. i have been trying to catch art to see what the bias is on the close. haven't done that yet. back to you, maria. >> what is the long-term outlook for financials and your money if

find out after the break after my interview with the president of u.s. trust. keith banks of join us and talk what the upper end client are doing. later, goldman sachs. and weighing in on the financial industry. why small business is so important to the economy. >> that and more, including hank paulson, coming up on this special edition from "closing bell" as we all look at pine trees in aspen, colorado. at honda,

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talking hard cash and read as we get to the close. so small, virtually neutral right now with the dow up 135 point. josh lipton, where is the strength right now? >> listen, bill, we will talk about the banks. best three-day gain for that sector since the start of the year. if you pull up xlf, that is the banks's etf, just talking to mark newton, mark pointing out the nice bounce there. he does see resistance around

1975. but good group to overweight, since mr. newton. a new 52-week high today. economic data suggesting and improving economy. rising rates. regions, zion, mtb, hcbk just some of the names. mari maria. >> thanks so much. the oldest and largest trust company just released a survey about attitudes of wealthy investors. joining me here in aspen at aspen ideas festival is president of u.s. trust. keith, good to see you again. >> good to be here, maria. into the second quarter, what are your expectations in terms of client sentiment going into the second half? >> people are still nervous, maria. we have been trying to get clients to step up exposure to equities. well represented in an allocation context. we turned positive at end of

2012 and encouraging our clients to continue to add to their equity exposure and in the recent pull back we have been doing the same. trying to take advantage and add funds to that end. >> federal reserve puts confusion in the market or you might say clarity in the market by saying, look, we are going to likely begin the taper, later in the year, if the economic data continues. is there a big impact to portfolios, attitudes, once it starts it taper? >> i think we saw a bit of a sneak preview. my feeling is a lot of the money that move said hot money, momentum money, that once they got the sense there could be change, though i think they misinterpreted the message, they moved out. but there is a clans that people will think it is an on/off switch that they go from quantitative easing of 85 billion a month to flip the switch to off. as you and i know that's not the

case. it isa process, molulti-knee je approach. >> we saw out the bond fund in the month of june, you mentioned that is more than on top of a trillion going into bond funds in the last couple of years. >> over the last five years you saw $1.1 trillion of positive flows into bond mutual funds and outflow of equity mutual fund. >> are we going to see that reverse? what's your take that the fixed income is not earning anybody money? >> we think it will. people ahad a lot of cash. they had been putting that into equities. they haven't done the big shift from income into equity. we are most worried about that asset class. if you look at the next two

years, we think there is the greatest chance of significant underperformance from fixed income. we have a different view of fixed income versus equities. >> which is why you want to put money into this market. what is your take on what happened this week this is three straight days of moves. >> pretty violent. number one, moving 17%. too far, too fast. number two to your point before, when chairman bernanke came out and added more clarity, it got people nervous. they heard part of what he said but not all of what he said. again that sparked the fast money to move fast, away -- there is a flush. ing equity sold off. bond, moneys. and again people just don't understand what that will really look like and hence they are confuse bid it all. when you're confused you sell and good to side lines. >> do you read anything into the sell-off in gold we are seeing? are people selling gold, putting money in stocks? it feels like it is reverse today.

i'm wondering if these are some money coming out of the gold market and into stocks. >> i think so. we look at it as a hedge against inflation. >> not as commodity but as a hedge? >> exactly. i think people are unwinding that and i do think you're right. that money is moving into equities if it is moving anywhere. >> in terms of merging markets, huge slow down, big outflows in emerging markets. japan, very volatile m the last couple of weeks. what's your take on money outside the u.s.? >> again, longer term, if you have more exposure to equities. you want some to be to the merging markets. but merging markets are the tail of the whip. they are the most volatile play. if people get more comfortable with equities in general, i think you will see the emerging markets respond even more positively and conversely what we saw the last week or so, when people get nervous, that's the first one that goes. i think it is just a volatile asset class.

but one that if you take a longer term timeframe or longer term approach, you do want exposure to it. >> you do, okay. i got to ask you about your survey. i this i this is so interesting. u.s. trust releasing a survey in may that said wealthy baby boomers are ready to cut kids out of their will. and it is not a priority to leave money to their children. they don't need to pass on whatever wealth they accumulated. what do you think they were saying? tell me more about what you learned from this. >> we got a lot of questiones. they don't trust thick kids. they don't like their kids. what does it mean? what we think it means is the typical baby boomer is not thinking of retirement per se. they are thinking of the next phase, next leg of the journey, the next something. not the word retirement. not the hammock. >> you're not going to hit the hammock. >> bingo. so number one, if you're in your 50s and you have another 30, 35 years to live, you think, what do i need that money for to do the things that i want to do next. number one. then i think as time goes on, they will focus on children.

there will be an inter tans. children of reof wealthy client shouldn't panic. it is driven by their view of their own life after, quote, they retire. >> do they have the money to retire, quote. >> some do, some don't. the other thing that came out of the survey is that people are not thinking broadly enough. one of the things we are worried about is the biggest risk to family wealth. and what is interesting is even though a lot of wealthy people are already taking care parent, adult children who may be coming back into the household and siblings who haven't been as successful, when you look at their planning, two thirds of those same individuals have not explicitly planned for the long-term healthcare needs of themselves or parents or other dependents. and that could be a big deal. >> i'm glad you mentioned that. that is a big concern.

and it is expensive. >> very expensive and getting more as time goes on. >> love to get your insights all the time. president of u.s. trust. bill, over to you. >> about 35 minutes left here. dow is up 130 points. again, bias is neutral right now. we are not seeing a lot of buying or selling as we head towards the close right now. >> coming up on "closing bell," lloyd blankfein and hank paulson, weighing in exclusively on this market. >> also, publishing executives says barnes & noble is not stocking as many books any more and giving more floor space to toys an games, the higher profit margin. coming up, we will talk with someone who says it is time to close the doors and buy in stock, that's coming up. [ male announcer ] the mercedes-benz

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welcome back. big day on wall street. very close to session highs. high is about 165 points higher. market that is holding on to that triple digit move up 141 point. nasdaq up 30 points and s&p high by 12.5, bill. >> there is always tomorrow, i guess.

is barnes & noble rewriting the book on how it runs its retail business? wall street journal reporting that bookstore chain is redousing the number of titles it carries in stores and is instead clearing floor space for things like board games and display tables for its ebook reader, the nook. some fear that could drive more readers to amazon to buy good old-fashioned hard covers and paper backs on-line. barnes & noble is already waging an uphill battle against amazon in ebooks. what is in store for the book seller? rich ross, and steve cortez. steve, you think this strategy -- what they are trying to do is put more things on the floor that have a higher profit margin. smart idea or are they shooting themselves in the foot? >> i'm not a fan at all. if i were to write a book on

barnes & noble, i would call it 50 shades of red. the reason being, this company does not make money. in a market, broadly seeing record corporate earnings, why would you bet on a company that does not make money? this stock price trades where it traded 20 years ago in 1993. this is a broken model and the whole idea of a retail reinvention has a very sorted history amongst a number of retailers. i would not bet on the reinvention into suddenly being a toy store. >> rich, which chart looks better to you? barnes & noble or amazon? >> reading might be fundamental but trading is technical. when we go back two years, you see, that since breaking out above that 200 day moving average last summer, the stock's been powering higher, tracking this well defined up trend. earlier in the year we get overbought here. overextended. settle into a counter trend channel. that gives 13% correction.

but a successful test of that 200 day moving average followed by subsequent break out from that trend channel, tells us that the bull trend resumed in earnest. this will be $300 by fall on the strong buyer of amazon. >> you know, rich, i completely agree with you. >> do you like it. >> i love amazon. barnes & noble is a dying company. amazon is a company on the cutting edge of technology. doing great in the cloud as far as on-line commerce business. they have almost no ririvals. in terms of logistics, order technology, they are in the driver's seat. it is expensive. you a pay a lot. but love the leadership of bezos. >> what about the chart? would you see it as a bottoming phase of some kind? another company could come in and maybe scoop them up or buy up assets? anything is possible here. >> let me say this, bill. in terms of barnes & noble, don't close the book, close the

nook. in fiscal year 2013 every profit turned by on-line business virtually disappeared in the colossally bad decision of that nook. that nook digital business. yes you today go digital but getting into hardware, a huge error going up against apple and amazon. big mistake. going to take years to recover from that. there is a reason the founder wants it take the retail and on-line private and leave public shareholders with a nook media division. that's the money loser. don't be stuck holding the bag. >> or the book. we will close the book on this one and move on. thank you, guys. see you later. >> thank you. >> maria? >> a market higher close to the record highs of the day, bill. you said it was more neutral than anything else. >> very small. >> looks like the mark set holding on close to highs. which is about 164. >> bigger movers today gold.

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welcome back. we have breaking news toe report. over to you, amman. >> cnbc learned there is an investigation between thomson reuters and ism, institute for is you ploy management. those two organizations joined forces to release market moving economic data, including the number widely quoted in financial markets. earlier this month, cnbc reported that thomson reuters inadvertently released by 15 milliseconds that manufacturing data to high paying high speed data client. what we are told by the ceo of

ism, thomas derry, is that sec responded to the report by asking for a copy of the contact between the two organizations and the two organizations sent over a redacteded copy retailing their business arrangement. sent that copy to the sec. we know sec is looking into this. thomson reuters did not immediately respond to my question of comment. >> you said redacteded, what is redacteded? do we know the numbers involved in the contract? >> we don't know what was redacted. but we do know they sent over a redacted version of the contract. clearly the sec is taking an interest in the issue. this issue has been in the media a lot lately. is market moving. how they are released. who gets the information.

exactly when and whether or not this is all technologically fair. and how closely calibrated are they to keep their clock synchronization spot on so no one is getting this information before is supposed to be officially released. that is all part of the mix here. we know the sec is looking at this piece of it asking for copy of the contract between thomson reuters and ism here. >> fascinating. a lot going on in that record. thank you, we will keep following this. we are moments aaway from closing out three day rally. >> let's talk with mike an telly. and jack ba rushian. is it to simplistic to say if someone is coming out of two classes and it is coming out of one and going into the other? >> yeah, it is too simplistic. keep in mind, for thought

experiment, with inflows into stock funds, every stock bought by a stock fund sold by somebody that cree cash on the other side. it is not about a wall of money going in one direction but to me about the relative urgency of buyers and sellers. so you have had urgent selling through this month in almost asset class and now the last three days, and calming down of bonds, i think you will see incrementally the reception to based in going into stocks a little more than anything else, but i think it is a jagged trend. not a wall of money moving in one direction in a big way and i don't think the whole story for what markets end up doing directionally. >> jack, what are your thoughts on this? with gold below 1200. with money moving in to stocks. what do you see as this sell-off in gold? what does that tell you? don't forget tomorrow we have russell rebalancing.

that should reacreate volatilit. >> one, the inflation scare that seems to be present in the market the last couple of years has completely dissipated. remember just two years ago we were talking about the debasing of currency would drive gold up to $2500 and oil up to $300. none of that materialized. what did materialize is a corporate america that is richer on their balance sheet than ever before. you are looking at a stock market that is, if you are thinking about it, in multiple terms, a very digestible multiple. and a market that was all risk and no return. i think we had an aha moment. and it started in may. and yes, it is that simplistic. you are seeing money, these are pure asset allocations, maria. watch the futures. they are leading the way. this is coming out of fixed income. especially the ten-year and working its way into the s&p 500. you are seeing pimco do it, big

boy dos do it. >> there seems to be fear coming out of the market. gold is certainly coming off of the highs that were set last fall and stocks are going higher. don't you think there is a correlation? >> absolutely. look, if the impulse across all of those asset classes is growing confidence in the stability of the system and in the basically, the economic trend on a positive path, yes, those things all matter. but i would ask, if the big boys are coming into stocks, who is selling them to them? it is not about money piled up in a box higher and therefore prices go up. it is about reaction to news flow. impulse that investors have across the sim stimuli. it is not that simple. the market more than doubled when all of the stock flows were negative. does that mean positive stock flows need to go up? >> if you talk to someone trying to buy stocks, they'll tell you something. there is not a lot for sale.

it is one of the reasons the mark set moving the way it is. this is the most respected rally i have ever seen in my life. now as we reach the top portfolio managers are finding themselves very uninvested. they can't buy anything. they keep going into the market. i guess that is a product of stock buy backs. ipos out there. this. >> but it is not about the number of dollars that you are watching going into the market. it is about people's reactions to the news flow. and i think that's -- >> it is about the multiple. about valuation. we were talking about a -- think about it this way. right now at less than 16 times forward earnings, 25 times forward earnings with soviet missiles aimed at us. again, it doesn't make sense. it is irrational. the suppressed value of the mark set correcting itself. >> let me ask this. do either of you have an opinion

with what happens tomorrow with the russell rebalancing? what are we going to see as a result of this? >> i'm sorry? jack? >> it is a nonevent. >> nonevent. >> yeah. it is really a nonevent. >> it usually happens before the actual -- it is always preset before the actual rebalance. there will be a lot of noise and bright lights but it is not a matter of anything enduring in terms of stock or index changes, i don't think. >> all right. thanks, guys. >> there have you it. thanks, i goes. >> we appreciate it. >> as always. two smart guys there. >> yeah. and we are in final stretch of trading, bill. this market continues trading higher. triple digits on dow jones industrial average. just about ten minutes before the close. >> when we come back, we will head to the trading pits to find out how long this melt down might last. >> also, is the economy really strong enough for the fed to begin tapering the economic.

former treasury hank paulson will weigh in exclusively on the "closing bell." join us. >> and from one huge show to another. don't miss a trifecta of ceo interviews tonight on "mad money." jim cramer talking to the heads of starbucks, macy's and ford motor company. that's at 6:00 and 11:00 eastern on cnbc. mine was earned in djibouti, africa. 2004. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down

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welcome back. triple digit move on the dow. >> another one. we've had 14 or 15 just this month alone. it is amazing with a triple digit move on the dow. what is the buzz moving the trading floors today in josh lipton is here at the big boards. seema moody at nasdaq. bertha coombs at nymax. josh, you first. >> tax on another ten at 1613. on track higher this week. that's after two weeks of losses. traders reacting to a cooling of all that taper talk. you can also see it in the vix. otherwise known as fear gauge, down 25% since monday's high. home builders a source of strength.

ryl, len, spf just some of the names we are watching today. >> seema mody, what is leading the stocks there? >> seagate and western digital both up. also a big pay d.a. for ipos here at the nasdaq which shows the market volatility hasn't scared companies from listing on the public markets. hd supply one of the largest distributors in north america an play on the housing market raising $957 million in proceeds making it one of the largest ipos in 2013. maria? >> thank you, seema. now we want to check gold going the other way. big time, bertha coombs watching the trade. >> sellers are very much in control of gold. though it did close about $1200 an ounce. dipped below that afterwards. trading saying that is not a

support level. just a signing logical big round number. last time we close bred that was august 12, 2010 and looks like we are headed for there as we go to the end of the quarter here. gold and silver on track for worst quarterly decline ever, at least since we have been keeping records. what is interesting is disparity. not a lot of volatility, gld right along with gold to three-year low. take a lock at minors today. some of the miners are starting to head and miners look good and so did mining etfs. very interesting disparity. back to you guys. >> thank you very much. and to seem wa and josh as well. do you realize, maria, this is the best three-day gain of the year since january. that's strength. we started the year with a bang. remember that in january 3rd and beyond. >> it does indicate resilience. we talk about a lot of the buy

on mentality but when you talk about the buy as nervous as we did the last couple of woeks and see it where it is today, it does indicate that wove got resilience here. and there is conviction in some pockets of the market. >> i agree. >> we've got a rally for third straight day. but heather hughs is up next and she says cash is king right now. she will tell us where in the market she sees opportunities. join us as they puts cash to work. >> don't miss our special mid year coverage on how far the markets have come. and where they're going for you and your portfolio. second half of 2013. we might even have a special guest tomorrow. listen. [ male announcer ] we've been conditioned to accept less and less in the name of style and sophistication. but to us, less isn't more. more is more. abundant space, available leading-edge technology, impeccable design, and more than you've come to expect

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welcome back. final ten minutes before markets close. >> tomorrow is the last day of the quarter and first half we have tim holland joining us here at the big board along with heather hughes. welcome to both of you. heather, i thought all of you fund managers were supposed to take profits at a time like this? >> cashers king. i get they today take cash to

buy on the debts. we saw 354 last thursday. now volatility shall continue though. >> you like cash more than equities right now? >> again, i think investors are raising cash. we have seen a record monthly outflow in terms of bond mutual funds as welt as etf. 61 mibillion as of june and thas a record. we have more to go. >> maria? >> yeah. in terms of saying you have more to go, let me ask you, you said cash was king. are you recommending raising cash or recommending putting money into stocks? >> i think it is important that -- no one can try and time the markets. i think it is important that as you are raising cash you take advantage from a dollar cost average standpoint of the dip. buy in the dip and i would be cautious right here. you don't want to jump in head first or go all in at one time. >> tim, what are you doing right now? >> sure. we have positioned both our small cap corps fund and

diversified fund bill more domestic facing, consumer discretionary, banks. home builders like toll brothers which have gotten shellacked bays of back up in rates. our believe is that this normalization of rates isn't enough to overwhelm recovery and there isn't enough to where you crimp or arrest this domestic rebound. if we can get from here to there we think cannot assumer discretionary stocks and banks with a margin going forward will be a good place to be. that's how we positioned both strategies. >> sorry, maria. >> no, you go ahead. >> i love audio delay, don't you? >> net interest margins for the banks that will help them in terms of profit and lending standpoint. so you want it look attes this securities or sectors that aren't as interest rates as tim was saying. >> exactly. mari

maria? >> tim, in terms of fed and tapering process, we've seen increasing volatility and nervousness. do you think there will be a big change to the market and to the economy once the fed does in fact begin pulling it back, whether september or december or next year? >> yeah, if the fed does it with better growth then we should be able to power through. you know, i think the reason the markets have sold off so much, there is a big back up in rates is the last three summers we have had a gross scare. people are skiddish. worried the recovery isn't real. if we can churn through the normalization and if the consumer hangs in there and housing hangs in there, we think it won't matter if the fed leaves the prty because recovery should continue. >> they are hardly leaving the party and the punch bowl is still sitting there. >> yeah. >> getting ready it pour less punch into the bowl. >> not necessarily tightening. >> that's right. i got a new word today i heard. >> uh-oh. >> lift off. >> like the rocket. >> then they lift off with the rates. >> i like it. >> we will get to that later.

thank you for joining me. we will take a break and come back with the closing countdown for this thursday, maria. >> an all-star lineup coming up. leading federal reserve critic jim grant will lay out the not intended consequences this market will feel from the fed's economic measures as well as taper aeng lift off. then lloyd blankfein is here as well as hank paulson. don't go anywhere. we have those interviews coming up. stay with us. in a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, our flexible, collaborative approach helps forward-looking companies not only run better, but run different... to give your customers every reason to keep looking for you.

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any moment now you can show the charts. but if you don't want to i will keep talking with keith bliss as we head toward the close. i was joking before, i thought you guys were taking profits at the end of a quarter like this. >> no, no. there is supposed to be window dressing. >> so you want to buy the strength. that's what we are seeing banks go higher. housing stocks go higher. >> everything gets sold off so massively on monday, during that trading session that there is

anes a oo buy whan is a a once in a ten-year session and it came back nicely. >> see what comes back tomorrow as we hit the half way mark of 2013. meantime, half way mark to the "closing bell" and to aspen we go with maria. see you tomorrow. >> 4:00 on wall street. 2:00 p.m. in aspen. welcome back to the "closing bell." we are coming to you today from the aspen festival. the high was up about 164 points. we are looking at the gain of the close here. three quarters of 1% at 15,025. s&p picks up 10 points and nasdaq composite up 25