tv Your Money CNN January 4, 2014 11:00am-11:31am PST
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course could be standing between women and the marine corps. why the marines are examining their physical requirements. plus it could slow down alzheimer's. which vitamin is surprising doctors in a new study? all that at 2:30 in the newsroom. "your $$$$$" starts right now. >> how much money did you make not from working, but from investing. i'm christine romans. if you haven't already, take a look a where you stand after a banner year for the market. you'll probably like what you see. the dow up 27%, the nasdaq up 38%, the s&p jumped 30%. it's rare to see big performance like that. the question now, can the rally keep going? most analysts see more gains ahead.
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cnn money surveyed 29 analysts asking what they expect the s&p 500 to do in 2014. 10% predicted gain of 10% or more. half expect a 5% to 10% gain. 28% say they expect a 0% to 5% and 7% think they'll see a drop this year. it's time for the classic bulls and bears. bulls think it's headed up higher like horns facing upward but bears think the market is due for a plunge like a paw swatting downwards. michael o'rourke is the chief strategist. he's bearish. you think you could have another 15 or 20% on stocks, why? >> there's a lot of people on
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the sidelines. there's still $2 trillion sitting on the market. they want to be involved in this market, right? so where do you go? do you go in stocks potentially with big games? >> no. do you sit in a money market making money? no. there's so many individual investors that missed out on this big rally. >> they certainly have reacted well to a so-called taper which was supposed to be the end of the big bull run. michael, let me bring you in. you think for the year stocks are actually going to finish low lower. i want to argue with you a little bit. you got 200 thousand-plus jobs created in the last year. home prices rising. why is it bad for stocks? >> well, to put it in perspective since 2009 the recovery growth has been p 2%. between 2011, 2012, 2013 it was the best past performance since 1930.
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every even sopisode except for last -- >> what's the catalyst for a 10% decline? we haven't seen it yet. what makes the stock market fall? does something happen or does it fizzle out? >> i think we push up. i think monetary policy has created it in monetary prices, not that they're historically expensive but they're well beyond the prices they would be beyond the fed's help. >> the gdp, they talk about 2, 2.5%. when you have growth about 2, 2.5%, that's the best. if we come in at 2.5%, it's not robust. >> i want to circle back to this disconnect between wall street and main street. we know that about half of americans are not invested in the stock market. in fact, they're listening to us and they're saying wait a minute. i made exactly what i made based on my work, not my investments. what's your vice to people who may not hold any stocks right
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now, may be looking at a 30% gain and say, okay, i've got to to be in on this gain, i've got to be part of the economy where people are making money. >> you have to be realistic. it's just not going to happen. if you believe in investing for the long term, you have to start putting money in stocks. the problem is people look at main street and they see the headlines and they see the negative news out there. if you looked, you'd think the market was down, not up. invest. >> it's hard to feel good about stocks if you don't feel good about jobs. obviously you have different perspectives. for our viewers are listening and think the stocks will go lower next year, what do you stay away from, michael? >> i would be heavily -- i would have my most offensive position. i think you wait for collections. i believe you should buy equi equities for the long term, et cetera, but we're at record highs in the u.s. stock market
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and we've had this bubble bust -- monetary policy and bubble bust stock market in the last 15 years. >> for both of you, the viewer who's watching us today is probably somebody trading in a 401(k). that's what they have. maybe there's a taxable account somewhere. your advice to someone is to still continue. >> obviously you have options outside of the united states. i think europe is a great opportunity as well. valuations are extremely low. but yu want to be in equities and stay clear of bonds. as they go up, bond funds go down. >> if you believe matt mccall's world view, that's what you believe. if you believed in him, what would you do? >> i'd be heavily in cash. that would be another drag on the economy. we talk about where mortgage rates are going to be. a year ago we talked 3.5%. now we're approaching 5%.
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next year, north of 5%. that's going to see a slowdown in the economy. >> all right. so nice to see both of you. two different world views completely. how about we keep checking in. in a record-setting year only one stock can be number one on the s&p 500. it's a company you know well. give me 60 seconds on the clock. it's money time. >> it's a 50% raise this year for the ceo hastings. netflix was the tot stop last year up near 300%. big donations. there were 15 gimds of $100 million or more. that's four more than in 2012. facebook's ceo mark zuckerberg made the biggest donation. facebook shares almost a value of $1 billion to the silicon
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valley foundation. online shoe company zappos is doing away with formal job titles. they will answer to one another instead of a big boss. home prized jumped 13 ppt 6% from a year ago. largest gain since the bubble. most parent probably don't want their children growing pot for cash but one colorado family is making a business of it legally. >> he's my son and i'll do anything for him. coming up, not everyone in the state supports colorado law. inside, the fight against recreation at mann. next
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. this is a story of survive, a tail over death. this is a story about love. there will be tenderness, there will be separation, there will be reunions. there will be new life. right now in colorado anyone over the age of 21 can do something no one else in the world can. they can walk into a store and buy legal licensed marijuana. sales are strong. there are around 30 stores selling retail pot now in
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colorado and many of them had lines out the door this week. the state government feeling good about the sales as well. every retail pot purchase is scrub jekt to a 25% tax plus the regular 2.9% sales tax. it will amount to 67 million buck as year. a little less than half is designated to build schools. it ends the fight for it but it's the beginning for those against the use and sale of drug. miguel hmarquez has more. >> if i'm looking a little green it's because of the green marijuana plants. it's legal to purchase anywhere within the state's borders, but that's not to say it's welcome everywhere. if you think of colorado, you think of skiing, charming
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western towns and now rerk yagsal pot. no surprise, not even thrilled. what do you think about that? >> well, the voters of greeley turned it down when they had an opportunity to turn it down. >> reporter: greeley survived on oil and farmg. what's your concern? >> we're a guinea pig. >> reporter: recreation nal sales in washington start in 2014. weld county may have said no but there is one hold out here, a tiny place called garden city. only a few blocks big, expected recreational pot to be huge. what is it like to be the only place in weld county where this is allowed? >> it's -- i guess i'm lucky. >> reporter: lucky to be one of four pot shops here. he expects to triple his business next year won't sell
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recreational pot for a few months yet but the customers are already there. >> we're averaging 50 to 75 phone call as day. >> reporter: this is a family business. that's dad and mom, both in their 70s trimming pot. they first told their son he was crazy. then they changed. >> he's my son and i'll do anything for him. >> reporter: but it's not just weld county wrestling with it. ski areas, often a tradition of lighting up on the lips aren't turning a blind eye anymore. >> if i'm caught smoking pot on a chairlift, will my pass be yanked? >> i think there's a high likelihood of that. you can expect to have your ski vacation here and not be smelling smoke. >> there is uncertainty for some, a warning for others, what was ignored or looked past before, now zero tolerance. >> that's such a good point,
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miguel, especially the ski resorts. they have a two-pronged issue, people openly smoking on the resort grounds and their employees as well. we know that the law is very clear. employers have a lot of rights, to fire their workers for smoking pot even not on the premises. giets to be the next legal frontier, i think, for the workers who have the right to smoke but they might not be able to keep their job. >> reporter: look. there's going to be a lot of adjustment as this law gets goemt. amendment 64 was very clear it gives power to the smallest possible entities. even for hotel, that hotel can decide whether it will allow pot to be smoked on premises there. same thing for employees. look, employers don't want their employees showing up drunk either. they may go further in marijuana in certain industry bus in this industry it's going to be okay and a lot of employers will be
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okay with it but that will be something pleas will have to speak out. >> i think it's interesting when you mentioned drinking. they've been working -- companies have been working so hard to push smoking and drinking away from the employment base, right? now here's a third thing. tobacco smoking and now drinking. we'll continue with that. thanks miguel. what great live shot. up next, want to given to the homeless? there's an for that. we'll explain next.
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you can text message just about anything these day, find out transportation delay, send a friend a video clip and now you can text money directly to a homeless person. 600,000 americans are homeless, roughly the population of milwaukee and hand up a new profit organization showing you who's getting your money. >> rodney bell is a professional modern dancer and he does it all from a wheelchair. but after getting laid off last year from his dance company in california the 42-year-old wound up unemployed and found himself
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homeless. >> everybody's bit. days when you need to have housing. >> born and raised in new zealand, a motorcycle accident caused him to be paralyzed from the chest down. too proud, he said, to pan handle or directly ask friends for money, rodney instead is hapgd out these business cards that instructs people how to text in cash. it also lists a website where you can learn more about him. >> hi. my name is rodney bell and i have a disability. i'm a paraplegic. >> and dozens of others. >> it's easy to ride up and say, i need this, i need that. it's less believable where they can go online and see this organization. >> the organization is called hand-up that aims to use technology to help those most in need. >> we're trying to solve the problem of what do you do when you pass somebody on the street and you want to help them but
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you don't know how to help them. you're worried if you give them cash it will actually end up hurting them. people feel really flikted. >> reporter: founder rose bloome founded a program. a city program but also to make sure the donations are used for good. >> while we let our members decide how they want to use their funds, for the most part, you know, funds cannot be used on alcohol or on weapons. >> reporter: weapons are not handed cash. homeless counselors will buy things or pay bills. rodney's account so far has generated $400. >> within a couple of weeks. >> reporter: does that surprise you? >> yeah. that's a huge surprise. i don't know how to take that. >> reporter: for now hand-up is just in san francisco but the goal is to have it go to other populations. users are also given the option to give to handup itself to get
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the company running. he'll use the funds to get a laptop in part to look for jobs and get off the street. dan simon, cnn, san francisco. coming up, this week's monster nor'easter meant long delays at the airport. what if you could just skip the line? and one metro ticket? that will be 30 squats, please. >> a very popular one i've noticed has been, here you go, the superman. >> in moscow, instead of buys tickets with rubles, you can pay by doing an old gym class favorite. we'll explain next. i was going to the library to do my homework.
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it took a lot of juggling to keep it all together. for some low-income families, having broadband internet is a faraway dream. so we created internet essentials, america's largest low-cost internet adoption program. having the internet at home means she has to go no further than the kitchen table to do her homework. now, more than one million americans have been connected at home. it makes it so much better to do homework, when you're at home. welcome to what's next. comcastnbcuniversal. on thursday, maybe you're just making it home today.
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100 million people in 22 states battered by a monster winter storm this week. more than 2,000 flights canceled, 8,000 delayed, and that meant long lines in airports across the northeast and midwest, but what if you never had to deal with the stress of lines aet the airport or anywhere else ever again, what would that be worth to you? we hit the streets to see in a little segment we like to call "what would you pay?" >> i don't think i'd pay anything. i mean sometimes you have to stand in line. >> if i was an adult and i had all the money in the world, probably half a million. >> i find excitement in waiting in line. >> i don't. i feel like $1,000 easily or more to never wait in line again. >> we come from venezuela and you have to line up for everything. $1,000 maybe. >> i'd pay however much it
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takes. i'm very, very impatient. i feel like we pay for time anyway. >> 10,000 euro? $10,000? for the rest of my life. >> $260. >> what about you? >> i'd go for 20 bucks. i don't mind. frankly you can do everything online at the internet as opposed to inline standing there. >> hate long lines? you're going to have deal with them if you're planning to travel to sochi. you can ride the subway for free in moscow if you're willing to do something you have not done since gym class. it's a move to prepare for the upcoming olympics. phil has our story. >> some of its stations and
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platforms are spectacular. this is a recent attempt to build national pride with the metro. these people are buying tickets with the winter olympics coming to the russian sochi next february, the government wants people to get excited and get moving. instead of accepting 30 rubles for a ride, about $1. this machine allows people to pay with squats. we saw lots of enthusiasm, some big age differents, and some interesting techniques. sometimes there was even lineup, but the numbers were still pretty small. there's only one squat machine for the whole metro system that moves as many as 9 million people day. the regular ticket booths were long. i asked this woman, why are you la lazy? apparently it's a rude question. she denied it and accepted the
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challenge. i held her handbag and she squeezed out a confident 30. apparently you can't call other people lazy without having a go yourself. it's a bitterly cold moscow day. what could possibly go wrong? another popular one i have noticed, here we go, the super man. it's not counting. there's the squatting chicken. i've seen that a bit. it's pop. the dancing cossack, pretty easy, or so i thought. 59, 60. the man said, one more time. annoyingly he was right. >> i did 29. >> no. it said 50. >> that's what it said. >> everyone else seemed to be much happier with the experience. they told us they'd like to see more of the machines and think
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it's a great way to build olympic spirit. phil black, cnn, moscow. >> that's it for "your money." we'll be back at 9:00 a.m. and 2:00 p.m. eastern time. have a good weekend. hello, everyone. i'm fredricka whitfield and here are the top stories we're following in the cnn newseum. an art tick blast is about to barrel across the u.s. adding insult to injury for those all right hit by a national storm. it could be a historic event with temperatures plummeting. the cold air will head from the west and southern states could feel some of the pain. you could see zero temperatures as far south as nashville. people in boston idi
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