hi, everyone. welcome to on the money. i'm becky quick. dismal economic news, but the markets shrug it off. what about dow 1,000. go pro goes public. how one entrepreneur stared it in the face and built a company. world cup fever. seems like every suburban kid plays soccer but can it crack the top echelon in the u.s. how much should you have socked away for the rainy day fund? what's the magic number and how do you get there? "on the money" starts now. >> announcer: this is america's number one financial news program. now becky quick.

here's a look at what's making news as we head into a new week "on the money." a stunningly bad report from the grows domestic product. it's the size and strength of the u.s. economy shows it shrinking at an annual rate of 2.9% last quarter. that is a way worse outlook than when it started. many analysts say it was due in part to bad weather. the markets didn't pay much mind to the number. they rose after the gdp was released with the nasdaq hitting a high. new home sales skyrocketed last month rising more than 18% which is much better than expected. it's an encouraging sign for the industry and the economy as it recovers from a nearly year long slow down. barnes & noble and its ereader are splitting ways. the ereader is struggling. it posted a 22% revenue decline

in the last quarter. there were mixed messages as a terrible gdp number for the last quarter. the markets didn't seem to mind. who is right? is it the economy, is it the markets or is it both? joining us is paul riley. he is ceo of raymond james financial. thanks for being here. >> good to be here, becky. >> we saw the first quarter gdp number. it was a terrible sinking number. it was so bad some people thought, wait a second, maybe there's something more than just the weather here. what do you think? >> well, feagain, everybody is talking about the weather. there's probably more to it. every time i see one number i look at the trend. i this i we're in the steady okoro okay long-term growth. are we going to be negative? i don't think so. i think we're in the 2% plus steady long term growth. i think that's what you should plan for. i think the economy is in reasonably good shape. >> you still like stocks? that's the best place for your

investment? >> if you're looking long term, absolutely. if you're in the retirement mode, it's too risky to go out long-term fixed income because as rates go up, they will go up some day, i don't know when, but when they do you can get in trouble if you're in long-term bonds or risky bonds. we tell our investors stay the course. don't try to make it 5 by stretching into the risky invest am. stay the course. if the market goes up later, then you can swap out. >> i like what you said though. it is pretty stunning to thing of the ten-year sales being around 10%. if you were somebody who is looking at that as a potential place to invest, you're afraid that rates will move quickly when they do. >> when they do, right? we've been telling investors for a couple of years to be aware of rising rates. maybe we were early. but if you're long term, if you're in 30-year bonds and rates start moving, you'll lose principle pretty quickly if you

don't live off those bonds for a long period time. again, go shorter mid term. don't stretch. my biggest fear are so many investors are starting to get into riskier bonds searching for yield. i think that's a dangerous play. >> are you talking about junk bonds? >> yeah. junk bonds. high-risk corporate debt. >> and the idea that the stock market can continue to push higher though, there are some people who think it's run too quickly too fast. >> well, if you look at today's multiples, you can't say it's not fully valued but, again, if you look at the economy and growth, and you look at alternatives for capital, where is capital going to go? what's the government going to do over the next year or so. i don't think they'll raise rates sharply. there's a lot of cash on balance sheets. there's a lot of cash with private equity firms. investors have a little less cash than the moving average historically. ka shall is going to go somewhere. i think that's going to keep the market going. i believe corporate earnings will continue to grow. >> i know that you've seen your

client assets grow year over year. is that because more people are getting over their concerns about the stock market and coming back in or is that because the people already investing have seen their portfolios rise? >> there's both. when the market is up 30 bee% as are up. a big part of our growth is we're recruiting a lot of advisors. we do see investors slowly moving towards equity. equity is a source of dividends for income so there's a lot of trends. investors are investing more but cautiously investing more. >> paul, one of the concerns is when the average american gets back in. that a lot of times can signal a top. is that what you think is hang or is the average investor not in to that extent yet? >> that's hard to say, you know, when they get in, but the truth is retail investors tend to get in late and leave early and they're not fully in but they're getting there. so, you know, i believe for the average retail investor they're much better than professional management. they should go to their

financial advisor, make sure they're investing in the right things. >> paul, thank you so much for joining us today. >> good to see you, becky. you, too. a follow-up to a story. a major defeat for aereo. u.s. supreme court ruling that aereo violated the law to rebroadcast the signals to subscribers. we spoke to aereo's ceo before the case was heard by the court. >> just to take their perspective for a moment, if there is copyrighted material, you're taking it and selling it without paying anything back to them. >> first and foremost, we don't sell content. since the beginning of it there's lots of different equipment manufacturers that allow consumers to watch television and aereo is doing that. >> the battle isn't over. a major investor barry dillard told me we did try but it's over now. if that doesn't say it all. full disclosure by the way.

nbc universal is the parent of the company that produces this and was among the parties that opposed aereo. we are "on the money." go pro cameras take us to new heights. the company's ceo. americans are getting a kick out of soccer. tv ratings for the world cup is at an all-time high. is the sport winning over fans? as we go to the break, take a look at how the stock market ended the week.

go pro is a camera company that wants to change the way we see the world. it certainly offered a rosie

vision to investors this week raising more than $400 million in its initial public offering at the nasdaq market site. the light weight portable cameras capture amazing images, like this one, firemen save kitten. that's a video clip from go pro's youtube channel that has been watched more than 22 million times. i spoke to nick woodman who started go pro by just tinkering around. >> when i was 22 years old i told myself i would give myself until the age of 30 to make it as an entrepreneur. i did fail at my first business and at the age of 26 i had no inspiration for what to do next and i had four years left on the clock and i decided to take what money i had saved up from my previous job and go surfing. the first go pro was really just a wrist camera. for me to capture my friends surfing and it took a few years to realize that there are a lot more people in the world that want to capture themselves doing

what they want, what they love to do, their passions, their interest than there are people that want to capture other people. and so the big aha moment forego pro was enabling the world to turn the camera around on it self and that's led to perspectives of life that was never thought possible. >> the original selfie. >> the original selfie. the engaging, immerse sieve, oh, my god that is incredible. >> here you are a camera company, a gadget company. you have much bigger ideas for it. you think this is a media company? >> we think we're a content enabling company. >> which means what? >> we make it easy for passionate people around the world to capture and share incredible life experiences in the form of compelling content. so the one to two-minute edit that they can use to re-live an experience but also share that experience with other people around the world, whether it's on facebook, youtube, twitter, et cetera. our customers are uploading to youtube alone over 6,000 videos a day, tagged, titled, described

as go pro. >> i want to talk about you as an entrepreneur. is there some common thread between entrepreneurs, something that you guys all share? >> mano maniacal focus. make no bones about it, it's scary. i had to have a post-it note by the side of my bed that read, i am doing this so that every morning i would wake up and that would be the first thing i would see and that would be the first thing i would say to myself during the day. >> when you were doing this, when you were building it out of your bedroom, you didn't even leave to go to the bathroom, is that true? >> yeah. i had a -- my room was the furthest room from the kitchen and i was -- you know, i was a mountain biker and a skier and snowboarder so i had a camelback that i'd wear for sport. i was annoyed that i always had to walk across the whole house to go get a drink so i started wearing my camelback at my desk so that i wouldn't need to get up from my desk when i was

working and then i also had a sliding door to the outside that made it convenient not to have to walk to the bathroom. >> consumers buy these things. how do you guarantee that they continue to use them, that it doesn't just wind up in their closet? >> we have to make it easy for them to achieve the payoff of the promise of why they bought a go pro in the first place. it's not enough to enable people to capture amazing experiences. we have to help them summarize those experiences in a, say, one to two-minute edit that they can use to re-live that experience and enjoy it again for themselves but it's important to share that experience with other people. >> is that software that comes with it? is that -- >> yeah. >> how do you -- >> well, it's about creating an experience so that it makes it seamless and easy to go from capture to coming inside, plugging their go pro into charge and making it easy for customers to access their content via go pro app. any time they think about the amazing experience they can pull that content up, watch it, and

only once they watch it can they become inspired to actually do something with it. >> you have a go pro on a stick here. >> yeah. >> and what do you do? cool angles. >> yeah, well, the beautiful thing about a go pro is any perspective of life that you want to capture we make a mounting accessory that helps you do that or you can just use it hand held. i've got three boys at home. this is a big advantage to owning a go pro as a father or a mom. you get to be in the shot. >> right. >> you know the old way was mom or dad photographing or filming the kids and they create this great family archive of footage but they're never in the shot. >> right. >> you know, so kids looking at the family shot, dad, why aren't you in the photos? because i'm behind the camera when your 4-year-old wants to go up on the slide -- ahhhh. but that makes for great content. >> go pro's ipo was heavily

oversubscribed. that was up 30% on the first day of trading. up next, we are "on the money." the world cup is scoring big time. the tv deals are more lucrative. is soccer an underdog no more? later, it's a dill lem me we all go through. how to sock away for tomorrow when you have expenses today. doctor recommended frequent heartburn medicine for 8 straight years. e lem me we all go through. how to sock away for tomorrow when you have expenses today. m we all go through. how to sock away for tomorrow when you have expenses today. a e we all go through. how to sock away for tomorrow when you have expenses today. le we all go through. how to sock away for tomorrow when you have expenses today. em we all go through. how to sock away for tomorrow when you have expenses today. m e all go through. how to sock away for tomorrow when you have expenses today. m all go through. how to sock away for tomorrow when you have expenses today. me all go through. how to sock away for tomorrow when you have expenses today. e all go through. how to sock away for tomorrow when you have expenses today. wl go through. how to sock away for tomorrow when you have expenses today. it's a known fact that 100% of the swordfishes

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in a field of competitors from the nfl to major league

baseball, it's long been a goal of major league soccer to have its moment in the sun. so could this year's world cup be the tipping point? last sunday's u.s.a./portugal game was the most watched game ever watched with 25 million viewers. joining us is new york magazine contributing eder, willie. it's great to see you today. do you think after decades of waiting for this moment this is really the tipping point? >> depends how you measure it. a lot of people have the idea that soccer has to take over the nfl as the pastime or baseball of americans. that's not what it has to do. all it has to do is become a large niche sport. if you look, the mls just signed a $720 million television contract. television is driving the cable bus in a lot of ways, but certainly for the mls to be able to do that, a lot of that is on the heels of the world cup. the mls was founded after the 1994 world cup. the success of this is something

that i think mls is definitely wanting to kind of bank on. >> there's so much excitement out there. i know during the u.s. game on germany the most searched term was u.s./germany, the games. it was even more searched than the weather which is kind of crazy during the summer. do you think this is something that will last? in the past we've seen the excitement around the world cup and then it dies off. >> what they need to do is get to the next kind of basic level afterwards. we saw that, again, after '94 when the mls started. what it is going to do is stoke that interest. people are going to know these players as they go into the mls and the mls may rise. it's doing well now. the average attendance, they play fewer games, but the average attendance for the mls is higher than the nba and nhl. this is a sport after early struggles has really proven they're expanding. atlanta is getting a team. there are more and more teams coming. the networks i think are betting on the success of the league. i think it's a wise bet.

>> you have to imagine that some of it is the part of the changing demographics in the united states that plays into this as well. >> yes. certainly, first off, this is twofold. one, the kids of the soccer moms are now in the 20s and have expendable income in a lot of ways. you've seen this with the american outlaw fan group of the whole ad campaign around the world cup. the demographic changes and the ad that mcdonald's made one. you get a sense of how it is changing. ten years ago it was a sports writer trope to mock soccer. they can't use their hands. there's not enough scoring and so on. now you kind of look like an idiot if you do that. it's certainly changed a lot in ten years. >> quickly, what brands outside of mls really can benefit from this? you mentioned mcdonald's getting in on the play. there has to be a lot of other brands that are jumping on the bandwagon, too.

>> niko has had so much success even though adidas is the sponsor. nike has had some success. regional advertising, buenos aires. i've enjoyed the argentinian brew. the ads are focused on the specific countries playing which is a smart idea. it works globally and micro sense. >> as a former soccer player, i am thrilled. i want to thank you for joining us. >> of course. thanks for having me. up next, "on the money" a look at the week ahead. if you aren't paying yourself first, an emergency could send your finances into a tail spin. how to squeeze savings out of your paycheck. we'll be right back. visit tripadvisor new york with millions of reviews, tripadvisor makes any destination better.

for more on our show and on our guests go to otn. @onthemoney is the handle. on monday the labor contract for 20,000 west coast dock workers will expire. if the ports shut down, this could impact up to $50 billion in economic output. it could cost the united states up to $2.5 billion a day in lost gdp. on tuesday motor vehicle sales for the month of june are due. thursday is the big number of the week. that's when we get the jobs report for the month of june. also on thursday we'll see how the services number is fairing. on friday the markets are closed for independence day.

also on friday, nathan's famous will be hosting its 98th annual hot dog eating contest on coney island. it's something most people don't really like to think about, what to do in case of an emergency that could range from losing your job to a health crisis, but it's a topic that really can't be ignored. many americans have no emergency savings at all. sharon epperson is here with more. >> becky, this is a very big issue. even if they don't have a savings goal or a plan or they can't stick to it, many people know what they should do when it comes to saving for a rainy day. >> try to save more. try to manage my money a little bit better. >> kind of live check by check because you never know. >> well, we just put in a little bit aside every month. i mean, it's -- every time you get paid you put something aside. >> but it's difficult for many people to actually do that. more than 1/4 of americans have no emergency savings. that's the big issue. >> is that a number that's gone up since the great recession? >> it's a number that's actually

stayed pretty much steady for the last four years and you'd think that with the economy slowly starting to improve, the stock market at new heights we'd see a greater improvement in people's savings habits but we're not. about half of americans have saved less than 3 months' worth of their expenses and less than 1/4 have saved six months or more, which is what many financial experts say you should save. >> when people look out there, we know we should be doing it. sometimes it's hard to get through paycheck to paycheck. i guess that's part of the big conundrum. what do you give up in order to put the money aside? >> we're seeing people's paychecks staying the same and yet they're paying more for food and transportation. there's not a lot of wiggle room in terms of what they have left over to save, but there are some ways that they can try to build their savings. it's just a difficult thing to do. >> we talk about this all the time. is it something you should have a month's worth? should you have three months? should you have six months? what would be ideal? >> so there are a lot of different suggestions out there.

bankrate.com which recently did the survey on how much people are saving and how little they're saving, the recommended amount is six months. you have to think how much do you need to live for a month. what are your living expenses? think about what would happen in case of emergency. the biggest one, what if you lost your job. how much money would you need to really be okay in paying those necessary bills. so that's really what you have to consider. but a lot of folks think, you know, a rule of thumb that says for every $10,000 you make, it's going to take you one month to find a new job so for someone making six figures, we're talking about you're going to need ten months' worth of expenses saved for emergencies. that's a lot. start small. $1,000 is still better than dipping into your credit cards when an emergency arises. >> this is money that basically has to be sitting in a checking account or a savings account though because you can't lock it up in stock. >> here's the key. it should be in a designated account that's not tied to your regular checking or your regular savings account. you want to put this money

aside. have it automated. the amount that you save. make sure you're doing it on a regular basis. put it somewhere that it will get a higher yield than a regular savings account, by that i mean 1%. the yields are not going to be that great. you don't want it tied to your checking or your regular savings. you don't want to dip into it. >> you don't want to know it's there. >> so you won't touch it only for emergencies. >> sharon, thank you. >> sure. >> that's the show for today. i'm becky quick. thank you so much for joining me. next week, do your clothes make the cut on the job? the casual and the professional in your closet. each week you can keep it right here "on the money." have a great weekend, everybody. we'll see you next week. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track.

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