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tv   After the Bell  FOX Business  December 29, 2014 4:00pm-5:01pm EST

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>> these are classic stocks. i'm thinking investors looked for yield. that's why they're snapping up utilities. [closing bell ringing] , likes like the market is trading down heading into the close. i don't know about making a record. s&p is up a little bit. up a little bit for the s&p. cheryl: up seven sessions for the dow. we'll take it. david: the dow is down. all other indices are up a little bit. look at nasdaq, really strad deading the -- straddling the flat line. "after the bell" start right now. david: getting right to today's market action, mark travis of intrepid capital management. he says the rally of 2014 will continue into 2015. craig hodges from hodges small-cap fund. he says it is time too look for companies on sale and yes, he
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has samples. scott becauser in the pitts cme. i noticed vix was up. why is that? >> general fear going into next year. we go into the weekend, holiday weekend. there wasn't much trade towards the end of the week. typically the vix will get hit going in. people don't want to buy premium going into a long weekend. there is a lot of macro issues out there that could really affect this marketplace. i don't expect things here, economic news here, any sort of individual stock reports, earnings season coming up, i don't really expect that to drive volatility. what i could expect to drive volatility are the number around question of macro events out there right now. i think that is what you're seeing today. i think the new norm of the vix is probably in that 14 to 11 or 18 area up from the 12 to six teen area we saw maybe two
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months or so ago. >> in the small cap area we need to talk about the russell. it has been a stellar day for the russell. once again in the small cap space. is this the story for 2015. >> you know what, to us there always seems to be opportunities in small cap. it has been a disappointing year in small caps but with where the economy is, looks like the economy is starting to gain steam and really when you see oil prices where they are and consumers as have as much money as they do right now, small caps are in good shape especially when you consider that most small caps don't have a lot of international exposure which are hurting u.s. corporations right now. david: mark, turns out today, we did have another record on the s&p. a lot of folks who have been hesitating to get in for a time, they keep waiting for a pullback unfortunately they haven't had one to get in. do you think we'll have one of
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those opportunities when the fed raises rates? >> well, david, we had a brief period in mid-october and a little one before christmas where people started to get gloomy and then it kind of fades away. yeah i think the vix has come up a little bit. we've been very low volatility for the last three years so i would expect some change at some point. how extreme it's hard to tell. david: but if imhesitating, if i waited this long i will not get in at the heights right now, would i look forward to the an entry point when the fed raises rates and perhaps the market comes down as a result? >> i think it could be a spectacular opportunity. depending how extreme they have to adjust rates, depending how well the economy is doing which appears to be doing quite well with like craig said a lower oil prices, low rates that are suppressed. 10-year at 2.20. everything looks like an investment with these abormally low rates. so if they have to move harder
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and faster than the market anticipates i would think you would see some fireworks that might dislodge some security prices. cheryl: it is interesting, scott, because one of the things that could be months of fireworks is volatility. watching the vix over the last month, that volatility index, it definitely crept higher. i looked at a lot of forecasts telling me for 2015 you will have a lot more volatility to deal with. that will make investing more of a challenge. >> you know it definitely is. you look at the history of the vix and history of the marketplace. take out the last four or five years since the rally started where we've seen vix in the mid to lower teens. the average over time is really the upper teens or so. so you know, we're progressing back towards that area. but again, like your guest just said, economically things are going really well here of the we have low oil prices. consumer confidence is great. in fact we're looking at s&p numbers for next year, looking
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at 18 plus times profit. things are rolling really well here. but again there are some macro events that are just kind of straggling out there and think that's a lot also what the vix is really hinging on right now. you know but look at what we went through this year. we saw the problems with ukraine. we saw ebola issues. we saw the market dive three weeks ago. we saw the vix spike, came back down and those were the times to get back into the marketplace. expect the vix here to really see this norm right now, the new norm of 14 to 17. david: craig, everybody is looking for an oversold stock of a good company. frankly those are far and few between but you think you found one in transportation, trinity industries. tell us about it. >> go back to the previous point also, volume at this time, i hope it's a volatile year, i'm sure mark feels same way. as stock-pickers in correlated year volatility gives us great opportunities. but trinity is a great
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situation. they're in the railcar business. the stock has come from 50 down to under 30. the stock is around 28, 29 right around now. we're looking for $4 in earnings. so it is trading at a very low put pell. it has been taken down kind of with the oil trade. yet they don't have a big large percent of their business-related to oil. so we think it is a very, very mispriced stock. same thing with eagle materials. it also has been hit hard, another one of our large holdings in the seem meant and wallboard business -- cement and wallboard business. it has come down 35%. people presume they are in the energy area because they have a small frack sand business but we think that incredibly mispriced stock. we see earnings of 10 to $12 a share and the stock is below 08. cheryl: that is interesting. mark, if you look at broader stories as far as picks go, a lot of picks we're seeing is transportation related because of the oil story. is that kind of a general theme
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you're seeing? >> well certainly the airline business is a big beneficiary. i'm a skeptic of the airline business unlike craig, but you know i have always liked the warren buffett quote, investors have been better served if somebody shot down orville and wilbur wright in kitty hawk in terms of collective capital loss in the business. >> mark, you keep saying that. mark, you keep saying that. airlines have doubled or more this year. you will get on board one of these days. that is time to sell. >> craig, i'm right there with you, buddy. i wish i had been there all the way. all kidding aside, i think that you know, as craig mentioned trinity, there is a lot of things they throw the baby out with the bath water to so speak when oil prices drop even in the e&p space where people are hedged out for the next two years. they just abandoned the equities. so you know, i think lower prices will be offset by reduced
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drilling and higher prices will be forthcoming at some point. it is just a matter of when. david: by the way, one thing that hasn't gone down is ticket prices for planes. you just traveled, cheryl. despite fact that the main cost of doing business, jet fuel, has gone way down in price they are keeping price of tickets where they were. maybe that is why they're making so much money. cheryl: mark, craig, i see a comedy show for your future. >> i will be here. >> mark is a good guy. >> thanks for having me. >> continue the conversation. never mind us. david: speaking of the markets we want to hear from you, what was your best investment in 2014? send us a message on facebook or tweet us @fbnatb. your answers coming up. after two days of search efforts there is still no sign of that missing air jet carrying 162 people that disappeared on a flight to singapore. cheryl: jo ling kent has been on the story. is there any hope of locating this plane?
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>> cheryl, david, malaysian officials say the plane is probably quote, a the bottom of the ryan seacrest. second day of search efforts has not signaled any debris or where the airplane may have crashed. one of the pilots asked to fly higher to deviate from the original path because of bad weather. he weighs not given permission to because of planes in that space. minutes later the plane lost contact. the search for malaysian air -- asian airlines will continue search. this was ranked number one on budget airlines lax six years in a row. it has impeccable plane rating and transports millions of passengers a year. stocks ending mostly in the green. we're watching discount airliners and southwest in particular. the u.s. government is expected to get involved very soon.
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indonesian government asked for help and the navy is standing by as soon as the search is expanded into new irareas later this week. guys? >> jo ling kent, thanks very much. are you saving for retirement? a new study says many americans are saving the wrong way if they want to save like the rich and upper middle class? cheryl: what are they doing right is the question? from wearables to on demand services to paying for your phone. it was a big year for tech. we'll break down what trend will emerge in 2015 and how you can capitalize this. david: not all bets were winners. ask anyone betting on rising interest rates. will these investments see a reversal of fortune next year? our panel takes that one on. ♪ these ally bank ira cds really do sound like a sure thing,
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scott? >> yeah, a flury of activity right now. this is really most we've seen all day. in fact, all day long, outside of oil market, people talking more about the changes with the bears today more than anything else. i expect this tomorrow also. it will be a light volume day. pretty even back and forth. no buyers or sellers. pretty flat going into tomorrow. cheryl: at least another record to talk up. david: thank you, scott bauer. >> you got it. david: tech has been one of the big stories of 2014 from wearables to drones to burgeoning number of mobile apps. what are the hot trend in the new year? cheryl: we have good water capital cofounder and managing partner. eric, i will go out on a him to talk about shopping. looks like year of online commerce. do you think there are more next year? >> absolutely. we think e-commerce will accelerate growth in fifth if i
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have. two main drivers we think will occur in 2015. first advances in last mile low business ticks. companies like amazon, google, ebay, coming out with programs focused on same day or next day delivery. the second major driver is really mobile commerce. with the proliferation of mobile devices people are shopping more and more through their mobile phones. in some companies, particularly in where mobile phones have been around in asia and smartphones around much longer, companies like groupon or alibaba are looking at mobile rates of 50% of revenue coming from mobile phones. david: one of the things they do going to mobile they bypass google. when you sit at your desk you go into google. if you're in mobile you don't have time. you go right to amazon or whatever, alibaba, whatever it is. what does that do to google? >> it is eating directly into google's primary ad stream. so take for example, q3 or most recently in october and november stats.
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about 39% of shopping searches actually started on amazon. that is eating really directly into google's ad stream revenues. before that 39% used to be occurring on google.com. cheryl: all right, eric, let's talk about health care because, this is interesting, we've been going through all the cyberattack stories with regards to sony. health care records are actually more profitable if you're a hacker than a credit card. but health care overall, this is where we're going. everything is going into the cloud. is that a story, do you think, for 2015? >> well, i think you know, 2015 is definitely a year to look out for what we call the consumerrization of health care. you know, health care stands for about $2.8 trillion of spend. it is about 20% of our gdp and growing at about twice the rate of gdp if you look at the past 14 years or so. so it's a huge problem and people think that, you know, both big companies and small
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companies can help solve this problem and we believe it too by providing better technology services through online and through mobile devices. with that obviously comes a risk. as you mentioned the hacking attempts. as we move things online and provide better services we certainly need to be more careful about security, compliance, making sure that people's information is safe. but all that being said, this is one of the most exciting trend for 2015. we think that big companies, you look at what aetna is doing trying to target nine million or so people will be enrolled through healthcare.gov. hca's profits increased 42% in q3 year on year because of better patient enrollments. large companies are really trying to target the end consumer because that's where the money lies. startups in silicon valley are doing the same. companies like zen fits and trying to provide kayak style services for consumers to shop
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online. we think despite all the security concerns there are big opportunities for big companies and small companies alike to go after the theme we call consumerrization of health care through technology. david: eric, real quickly i want to talk about something, 3d printing, which is very big. it begins to think about factories deal directly with the consumers, cutting out retailers entirely. because of 3d you can taylor make anything you want for a particular customer so everything is custom made. will that hurt retailers, more that factories through 3d printing deals directly with customers? >> i think it has very global implications because especially here in the united states. a lot of our manufacturing is occurring overseas. and so you could actually see it as a trend to bring manufacturing back on to u.s. soil because 3d printing can occur in people's homes. and so, yes, it could be a
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possibility for people to bypass manufacturers but at the end of the day i think dollars will lie not in the hardware as much but really in the software providing the tool kits, the blueprints for people to create their own kind of manufactured device at home. so i think, you know, there may be a shift of where that the economics lie but i think it could probably be beneficial for companies that are targeting kind of end-users here in the u.s. david: eric kim, good to see you, my friend. thanks for coming in. i appreciate it. >> thank you so much for having me. appreciate it. david: absolutely. cheryl: we're asking you on social media what was your best investment in 2014. spencer says, energy and transportation sectors. they will never go away. david: join the conversation. send us a message on facebook or tweet us @fbnatb. more of your answers coming up. we'll look at a new study that shows where the wealthy 1% save their money and it is not
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in their lavish homes, cheryl. cheryl: under their pillow? sony's playstation network may be back online following a hack attack. seems to be happening more and more. we'll take a look back at some of the major hacks of 2014. david: the new york jets rex ryan and other nfl coaches getting the boot today. will the league's attempt to help owners reshuffle be called interference? ♪
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david: all kind of predictions failed missably in 2014 like prediction of virtually every economist that interest rates would go up and the market would kind of calm down. let's revisit some of the worst and best predictions with our panel. rick unger, from "forbes" senior editor. kim forrest, and our own cheryl casone. rick, i want to start with you. your worst and best predictions going into 2014 going into end of the year. >> i struggle with the best.
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i start with the worst. fed monetary policy, kept inflation under control. vanguard index fund rose 45% and that was really based on people believing that inflation will stay under control for a long time to come. david: that's right. >> you had a strong dollar. got to hand it to them. all the predictions you were talking about they were just wrong. it wasn't as easy as 2013. david: let me put a fine point on that. they polled these economists. 100% of the economists were wrong about the direction of interest rates, their prediction at beginning of 2014. >> yeah. david: let me go to kim. what are your worst and best predictions? >> they're not predictions in the way your other guest has them. i guess these are predictions we made through our portfolios. we kept our weighting in telecom way over the benchmark of the s&p. so i think we're three or four times the weighting. at for the pitt we believed you need to look differently than the benchmark if you want to outperform the benchmark. in this area we were just wrong.
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telecom underperformed although you got paid for having those stocks. they paid great dividend. david: good for you coming out with the worst. hold on one second. let me go to cheryl first. your first or best. whatever is more notable. cheryl: i have to say i look back at beginning of 2014. i was on air several times saying i don't believe the market would have a stellar year. we had double-digit returns. i was wrong on the overall breadth of the market. what i didn't see coming in 2014 was oil. who would have thought we would see a plummet in oil for 2014. david: i have to give a chance for kim to get back in. kim, your best, what was your best prediction. >> we have a couple. david: very quickly. >> allergan and we don't have a lot of energy but they stayed good. pipelines. kmi. david: pipelines. rick, what was your worst. we heard your best. what was your worst? >> david, i struggled. such a good year. depends who you are as an
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investor, but when you look at washington, d.c.'s policies i didn't see them doing anybody any harm this year. david: kudos to kim, she was one came out with the worst right off the bat. let me move on, if you're saving for retirement or a rainy day, you may want to listen up. turns out rich folks save a lot differently than the middle class or poor. should you do the same? cheryl, first of all, one thing about rich folks, they don't have a lost entire equity tied up in real estate. only 9% of their entire equity is in real estate. middle class is 63%. that is one big difference. >> middle class followed wealthy in their thinking about investments for 2014, it was real estate. the number one investment for wealthy investment for americans this year was real estate. as far as net worth, because americans are still feeling very burned i believe from the stock market and recession. they believe that they can touch, feel and hold. that is a real estate story is better investment, safer investment. an emotional play.
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david: kim, how did the rich save differently? >> i think they save differently because at least the pie charts i was looking at, they have a ton of assets in stuff they can control, stuff they can control directly or indirectly. if you're a middle class person you could do that with real estate but you have to think like an investor. how do you do that? well, you will try to buy low and sell high. so you buy the worst house in the best neighborhood you can afford. buy something unloved. love it up and sell it and move on. that's the way to think like an investor but live, you know in a nice home. david: gotcha. rick? >> yeah. you got to understand why those numbers are what they are. middle class people own a home. that is all they can really afford to invest in. wealthy people have a lot of money they can spend in a lot of different ways. even to the middle class, to everybody i say it is all about real estate, baby. you know how i feel about that, david. you can touch it, feel it, never goes away. david: a lot of people, like
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cheryl, feel the same way. coming up with our panel more investment predictions for 2015. cheryl: microsoft and sony were hacked on the same day that sony released "the interview" online. why the hacker who hacked speaks out why he did it. david: oh, man. coaches and gms around the league are thing the boot. who is in, who is out? we have details. cheryl: carl icahn is at it again. he is making a huge stake in a investment and stock making a breakout. we'll have details coming up next. ♪ she inspires you. no question about that. but your erectile dysfunction - that could be a question of blood flow.
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and you can read? yes let's see pictures, pictures, pictures, pictures there's a boy riding a bicycle into the forest you can read too grandpa! (laughing) ♪well it's always better when we're together♪ ♪yea it's always better when we're together♪ cheryl: activist investor carl icahn at it again. mr. icahn reporting that he is taking a 7.7% stake in man at this walk. sending shares higher by 9%. the activist hopes they will split its crain and food service business, shocking. he would seek representation on the company's board. while the stock is rallying it is significantly underperforming. over the past six months it is down 31%. good time to jump in. david: pay attention to what
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that guy does. back with our panel, starting out with number one prediction foss are 2015. kim, let me go to you first. >> i will take supposedly easy one. we think the fed will make some token raise on interest rates but it really won't matter to the markets or anybody. it is just them showing that they are going to raise interest rates. david: wow. i hope you're right on that. what you do you think, cheryl? >> i think 2015, my prediction is going to be oil. there is a analyst out there that i really trust, i read his stuff all the time. he is looking 35 bucks a barrel. david: 35 bucks a barrel? what happens to the u.s. fracking industry? cheryl: a lot less production out of south and north dakota. at 60 buck as barrel barely makes sense. doesn't make sense at $35 a barrel. david: $35 a barrel is killed. i bet they don't go ahead with keystone even if the president signs off. cheryl: we have to export though
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he. david: david: rick what is your prediction. >> i predict you will have smart guests because they are right. i don't see oil going as low as $35 a barrel but it will telephone stay low. one other thing i add, real estate prices in the big cities, going up. cheryl: good. david: from where it is now? >> yep. david: holy mackerel. kim, do you agree with that? cheryl: i have an apartment. you want to buy it? >> overall -- >> got all i can handle. >> i think it will be flattish. cheryl: flattish. david: all right. >> i'm not going to argue where you your guests. david: involves a lot of things that people are interested in on the sports pages. new york jets owner woody johnson giving coach rex ryan the boot along with his general manager. a lot of other teams reshuffle the nfl wants to help out but is that help always welcome? rick, 3 1/2 years ago, woody johnson, rex ryan were inseparable. rex actually brought the jets to couple playoff games. i spoke to them back then.
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take a listen and get your impression what might happen now. >> looking at you two guys you see, you know, the new york sophisticate, woody johnson, you see scruffy guy as you describe yourself but it is a perfect fit. did you know that would happen when you first met him? >> i suspected it would, because putting a team together and getting a team is hardest thing you can do as a coach in my estimation. >> i always say this. it is almost, it will be really hard for me not to be successful because of all the people around me and that is from the top, mr. johnson, all the way down. the general manager, side by side with me, mike tannenbaum. all the coaches that we have. everybody and it is, really a team effort. david: rick, we always say we're going to save the videotape n this case we did save the videotape and it came back to haunt those two guys. nobody saw this coming. now the nfl has this panel, tony dungy is a part of it, and some other football greats who are supposed to give folks like woody johnson advice how to
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avoid getting in the same trap with a bad coach s that a good idea or not? >> won't make any difference at all because nobody ever knows. it take as certain kind of dynamic. look, all i know, if san francisco could let harbaugh go away, they're smoking something out there and they better legalize it. the worst par being that harbaugh will end up at the university of michigan as a very loyal ohio state buckeye this keeps me awake at night. david: all right. cheryl: what is fascinating with your interview with woody johnson and rex ryan, the average time for a coach is 2.9, about three years. that is just what happened to rex ryan. if you think about it. he had a shot. he definitely made a mistake with quarterbacks. off he goes. a lot of new yorkers will be happy about it. david: given the new policy the nfl has to try to help out owners like woody who may not be as totally engaged as some other owners are do you think that is good idea? that might be seen by
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interference with owners. >> free advice is worth what you pay for it, isn't it now? david: that's true. >> panel is not invested. they don't want the nfl to look bad. you don't know the guy who you're giving advice to will actually take it. seems like, i don't know, badly aligned incentives. put it that way. >> name me a general manager that will list 10:00 to that panel? david: that's a good point. gms are notorious for not listening. kim forest, fort pitt and cheryl casone shares the stage. >> that was very fun. sony's playstation network and xbox one live were hacked. one of the hackers speaks out why he did it. david: sometimes okay to light up. cigar afficionado named its top cigar of the year. if you like these stogies, stick
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david: it was a record-breaking year for twitter as people sent more than 500 million tweets per day. what were people tweeting about? well here are the top hashtags used this year on twitter. at number three was ukraine. hashtag was used 9.1 million times. number two was hashtag ferguson which was used 16.8 million times. number one hashtag? get this? the world cup. a lot of americans probably didn't hashtag about but a lot of people around the world did. 21.6 million times. when it comes to the most followed star on twitter, katy perry, taking the crown with 60 million followers. followed by the selfie ellen degeneres took at oscars with 3.3 million tweets. cheryl: they broke twitter. light them up. cigar afficionado has released the list of top cigars for 2014. and the top one actually hails
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from nicaragua. david: the list could look a lot different next year as relations between u.s. and cuba could dramatically change and allow u.s. visitors bring back a lot more goods including cigars. we have a "cigar aficionado" executive editor. >> nice to see you, david. david: there is the cover of the magazine. michael strahan. he is smoking a cubana. we like those cigars. my wife is nicaraguan. we show a picture of her with a cigar. she didn't smoke this. she was holding it for me. she did not. at any rate, she is nicaraguan, would be happy to know this year's winner is nicaraguan cigar. >> yes indeed. made in nicaragua. mostly nicaragua on the inside. wrapper from ecuador. david: sometimes a wrapper kinds of shines. this has a dull finish. where it is from.
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>> from ecuador and grown from sumatra seed. this is more for the flavor than actually look. david: this sells without taxes? >> $14. david: taxes could double it. >> state by state the tax could be very, very high. cheryl: you tested 737 cigars. >> yes. david: wow. cheryl: what other top cigars did you find? >> we found a number of great sig cars. for the top 25 we published last week on cigar afficionado. 10 from nicaragua, three from cuba, one from hon during asker and mexico. kind of united nations of cigars. david: i'm surprised not more came from cuba. we have the new relations. so far not really doing much for cigars. you're allowed to bring back 100 toll worth of goods from cuba with new policies. that would allow you bring back four nice cuban cigars with you. david: >> exactly. david: is there something unique. sig disbar afficionados know
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there is something different from a cuban cigar that can't be duplicated around the world. >> some people like cuban cigars. that is all they are pleased with. the cigar has a distinctive taste. it is all about the tobacco. they have a certain flavor to them. if you take the seed grow it elsewhere around the world -- david: tastes different. >> tastes different. cheryl: 1.3% of adults smoke cigars. i thought it was higher. obviously you don't want to encourage smoking but at the same time, you don't inhale them, correct. >> i certainly don't. most of our readers don't. cheryl: healthier way. >> typical cigar smoker puffs without inhaling. taste buds are in the mouth. it is all about flavor. typical cigar smoker, person that reads our magazine, smoke in moderation. smoke a cigar a week or sometimes smoke a sig disbar a month. i have friend that consider themselves cigar smokers but the rituals is one or twice a year. david: almost impossible to find
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a place to smoke a cigar. they band it in parks in new york. they have a couple of clubs. i'm a member of one of them. this is something growing around the country or only in new york? >> getting harder to find. rules prohibit people to smoke. we have rules and places where you can enjoy cigars. sometimes have a nice beverage. more and more cigar stores opening up lounges. maybe not place where you get adult beverage that is illegal. typical cigar store is now a place to enjoy the store and enjoy your friend. cheryl: manly thing to smoke cigars. i can say that because i don't smoke sig as far as. i've been to the ha have nan club, another new york establishment. giuliani has its own box. members only.
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david: that is a great point. sort of like playing golf, it gives an opportunity for some guys, because there a lot of business discussed in these meetings at places like that. >> certainly golf courses tend to be cigar friendly. one of the few places people can smoke cigars. we cover golf in every issue. a lot of our readers enjoy golf. that is place where they smoke their cigars. david: cigar afficionado with mr. strahan on the cover. congratulations. great magazine. like it a lot. washington and your money. one of the top issues of 2014, hack attacks and what congress is doing to fight back. cheryl: speaking of hacking, sony's playstation and xbox live were attacked by a group called lizard squad and we'll talk to one of the members to explain why he did it. >> i'm gerri willis, coming up at top of the show, from the season of giving to the season of returning. i will break down how to make returning gifts a whole lot easier. one of the many consumer stories coming up on "the willis report"
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in just a few minutes. thanks. ♪ [ male announcer ] fedex® has solutions to able global commerce that can help your company grow steadily and quickly. great job. (mandarin) ♪ cut it out. >>see you tomorrow. ♪
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and i quit smoking iwith chantix. i told myself for so long that i needed to quit smoking. i would quit then i'd go right back to it. chantix absolutely helped me quit smoking. along with support, chantix (varenicline) is proven to help people quit smoking. chantix helped reduce my urge to smoke. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some people had seizures while taking chantix. if you have any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems,
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which could get worse while taking chantix or history of seizures. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. decrease alcohol use while taking chantix. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. i'm not worried about smoking my next cigarette. to me that feels great. ask your doctor if chantix is right for you. gerri: so this year we have seen a fair share of cyber attacks from jpmorgan to home depot and closing out the year we saw one of the biggest when north korea hacked sony pictures. david: so have we learned anything this year? what is washington doing to shore up our defenses? peter barnes has more on that. the peter? >> hey, david and cheryl. the sony hackers from north korea took sigher insecurity to a new level this
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year n an annual survey a consulting firm, pwc, reported cybersecurity incidents against private companies globally rose by 48% in 2014. to nearly 43 million. separate study estimated the annual cost of cyberattacks on typical u.s. energy or utility company is over 26 million bucks last year. was nearly 22 million for a typical defense contractor and nearly 21 million for average financial services company. >> in some cases maybe the virtual willie sutton, trying to break into where the money is but we also have of course, you know, as i said the hacktivists. we have cyberterrorists. apparently nation states that may be engaged in this. >> corporate america is now turning to the federal government for more help, especially from national security agencies that have the best surveillance and intelligence and information about ongoing and emerging
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cyberthreats. companies plan to push the next congress to approve more sweeping cybersecurity bill that allows more information sharing by the government and monk firms but companies want to be sure customer information is protected in any legislation that congress approves. >> don't share my information. gerri: not with washington. thank you, peter. david: thanks, peter. >> you bet. gerri: one of those hack attacks we saw a few days ago when a group called "lizard squad" hit xbox live and a playstation on christmas day resulted in people unable to play their games and a lot of disappointed kids. david: imagine getting that for christmas and not playing. fox news's matt king has more on the group behind the attacks. >> you wake up christmas morning expecting to play online and server down. >> they emerged from their upper east side gamer gauge sunday to buy a new controller for ps 3.
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>> fifa 15. all the new games to go online. >> on the christmas day the two properties never made it online to play with new presents. thanks to hackers calling themselves "lizard squad" who blocked access for 160 million users of xbox live and playstation. on day every person on the planet spent at home. >> were you worried if those people didn't have anything better to do than play consoles on christmas eve and christmas day. i mean i can't really say i feel bad. i might have forced a couple of kids to play, spend their time with their families instead of playing games. >> this man identified himself as only ryan from finland, a member of a group that allegedly shut down online gaming for christmas. >> they just want fame. they did it for no reason. >> why we did it? for to raise awareness. >> in this skype interview with sky news, ryan says "lizard squad" attacked microsoft and sony, yes, partly to amuse themselves but to
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expose the vulnerability of the cybersecurity system each company employed to protect users of its online gaming network. >> should have more than enough funding to protect against these attacks. >> gamers question effectiveness of lizard squads holiday hack job. wondering if intended victims suffered more than average gamer. >> wasn't a good thing to do for holiday season. >> hope information whats not chosen. it is not as fun you do online. >> you don't have to do online play but a bother. >> stop hacking our games. >> stop hacking our games. >> they have since restored service. dave, cheryl. back to you. gerri: king. thank you. we've been asking about your best 2014 investment. kevin said american airlines was my pick. how high can this go? david: mark loves southwest airlines. ticker symbol is luv and cindy says, pharmaceuticals, the
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ticker is alks. good for you folks. gerri: i know. time for number one thing to watch. let's bring back kim forest, fort pitt capital group vice president and senior equity analyst. kim, what is the number one thing to watch in your opinion? >> i have number one and number two, how's that? housing information this week with schiller, the schiller report is tomorrow, about what housing prices are. and then there is oil. oil's very big. we'll get numbers on wednesday. there is not a whole lot of data out there this week. david: we're coming towards the end of the tax year and i'm wondering how much activity we expect to see as a result of people selling some of their losses if they have any losses in order to take it off of their income? >> absolutely. you should do that. much don't get married to those stocks. let those stocks that didn't perform as well, maybe some of those oil stocks, sell them today. wait 31 days and you can buy them back. but it is an important thing to
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do. and you can offset some of your gains and even $3,000 worth of ordinary income in most cases. i'm not a tax advisor. ask your tax advisor. >> kim but you are a financial advisor. >> yes. >> anything you say to someone in fit if i have to shift investment strategy? >> well i think, do what we're going to do which is the u.s. is the best place to invest right now. we have the strongest economy. and we're looking to move more into cyclicals. stocks that benefit from better economics. and, you know, people should do some homework and look at those unloved areas like maybe you know, companies that make things that help people build. david: kim, i was surprised to hear that you don't think the market will show much of a reaction when they raise interest rates. then why haven't they done it before now? >> i think they're trying to be really data driven and the data
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just has not allowed them to do that. i think with improving economy and they're going to wait for, considerable time has been taken off. david: yeah. >> but that's what they want to do. david: got to wrap it, kim. thank you very much. >> "willis report" coming up. gerri: hello, everybody, i'm gerri willis. the christmas season is wrapping up. the big question? did consumers pull out their wallets and spread the holiday cheer? we have a retail strategist at pricewaterhousecoopers strategy unit. thanks for coming in tom. great to see you today. so your company pretty, pretty, not very happy about possible spending for the holiday season. you said it would actually go down. look at those numbers, average household spending 735 last year. 684 this year. when all is said and done and all the dollars and cents are

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