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 counted do you think that will

be accurate? >> i think we'll find it was a fairly flat holiday season. heavy discounters will see interesting increase in sale, mid-tier retailers struggle a bit and on line will be explosive. gerri: black friday, unempress sieve, right? super saturday didn't meet expectations. every retailer i saw was marking everything down. how could it go wrong? what held back consumers this year? cash simple cash. 67% of america are survival its. they're struggling every single day. 33% of the america are selectionists. they're concerned about disposable income. very early in the season we saw a lot of promotions, drove cash out of the system. simply people didn't have money to buy. gerri: people didn't have money to pie. they have credit cards. used to use credit cards. buy all the time s that stopping? >> not really. i saw more credit cards in the store than i had previous years.

little to do with euphoria we saw with the some of the economic indicators. but i also say dow after christmas, a huge amount how do you pay for christmas advertising on television. gerri: interesting. you mentioned some of the things that are going right for consumers right now. one of those is lower gas prices. ultimately will that make a big difference to consumers as they shop after christmas? >> it will make somewhat of a difference but remember, lower gas prices first thing that shoppers did was actually spend money on paying their normal bills. so the question is, how much was left over for the holiday. we think a little bit but not huge. gerri: you say 64% of the americans are survivalists? is that a number you used? that is a tough place to be. how are retailers responding to that? >> well actually 67% are survivalists. gerri: wow. >> retailers have done everything they can to promote. this is the most euphoric promotional season i've seen in 40 plus years. by the way the euphoria of promotions will quickly return

to reality of profitability for this holiday season as retailers examine what happened this holiday season. gerri: i am kind of flabbergasted by this. i thought one two pinch of -- punch of higher jobs as and lower gas prices. what do you see retailers kind of squeezing money out of these consumers? >> we clearly saw a huge amount of chains in promotions themselves. buy one get one free. buy one get 75% of at second. this year was tremendous season for retailers pushing very hard to get people into the stores. by the way that is a two-edged sword. what happens next year retailers will have to think a lot more about discounting. gerri: a lot more about -- i don't know how you could get anymore promotional. how low than you go? i heard retailers were finding that people started to respond when prices were 50% off. are they growing to have to come out of the gate at 60% off?

>> i think maybe not 60% off but i think next year we're going to see something called mobile 2.0. where the retailers have to get really up close and personal on the promotions themselves. actually a lot of very, very highly-tuned promotions next year and we may see actually coming out of the gate more than 50% off. >> i see they're segmenting they're market and trying to promote differently to people that respond to discounts and people who want to buy full price. how are they doing that? >> well, i think retailers are going to get smart next year. they're going to have to deal with this reality of omni channel. and they will have to do a lot to segment shoppers. people have money to buy only certain parts of the holiday season. retailers will need to think very hard how they promote next year. and actually segment their shoppers quite effectively. gerri: all right. tom thanks for coming on. good to see you. happy new year. >> happy new year to you gerri. >> thank you. sticking with the holiday theme the shopping season may be winding down but that means gift

return season is in full gear. with advice how to return unwanted gifts hassle free is retail expert. welcome back to the show. good to see you. >> good to see you gerri. gerri: i'm looking stories on returning gifts and seems to me that retailers might be getting a little stingy here. what is going on? >> absolutely. retailers are definitely taking harder stance on returns. there is a lot of reasons why. obviously with a lost returns can really kill your profits. additionally there has been a lot more fraud that goes on. people doing everything with e receipts and actually returning stolen merchandise. that hurts people out there really trying to do right return gifts they didn't really want. gerri: i am hearing about boxes of rocks. people take very heavy gift. steal it in the first place. then return the box sealed but full of rocks. there is a lot of fraud going on out there. is that the reason these retailers are getting so stingy?

>> absolutely. again scenarios like the box of rocks. you know, when done on a large grand scale can really impact profits. another big phenomenon they have seen is going on is wardrobing. people come in. buy an outfit. wear it for the holiday season and return it. so all these things impact your average consumer. gerri: wow. >> it hurts us. gerri: all right, so when it comes to consumers who are on the up and up though i want to be able to return gifts if i need to. >> sure. gerri: do i absolutely in every case have to have the receipt? >> you know, it is always good practice to save receipts. i'm really bad at saving receipts. my wife always tells me too but nowadays it is becoming more important. a lot of retailers won't consider taking returns without the receipts. gerri: 23% of americans who returned a gift recently said they didn't get their money back. what is going on there? >> a lot of times when happens especially but look at, when you're focused online purchasing

you find that these really small retailers, they don't even have the cash flow to return that money to you. even on amazon, sometimes people think that they're making these purchases through amazon but reality they're making a purchase from a really small small, vendor, small retailer. in turn, they don't have the money to be able to pay you back. gerri: wow. i also hear a lot of retailers out there when you bring something back, often they can't put it on the shelf. if they put it on the shelf it was seasonal merchandise. it is difficult to move. one of the responses to that is charge a restocking fee something i hate. >> yeah. gerri: who is doing that this year? >> a lot of places. you know, when you look at some of the main retailers that have really gotten kind of stingy around this, sears is one really gotten a lot more difficult. barnes & noble. when you're talking about books and thinks like that. they have also gotten a lot more difficult to be able to return. you can see in bold letters on receipts now, return policies and they have instructed their

policies to be a little more emphatic how they're accepting returns. so clearly it is a concern. it really has a lot to do with the bottom line. gerri: what is your best advice to people who might be returning a gift tonight or this weekend? what would you tell them? >> well, i would say that the best thing to do, if you bought it online from one of the big retailers, take it back to the store. you have a much better chance of getting it done in-store as opposed to paying shipping and return it in some case. biggest thing i can say save your receipts, don't open the box if you really didn't like it. gerri: we talked about receipts earlier. what do you do if you don't have a receipt? >> best thing to do is go in, if the merchandise is still in good condition, a lot of times you can talk to a manager and concession might be giving you store credit. which still would be good if you don't get a full refund. getting store credit might be just as good. gerri: i would rather get the money back. >> i hear you. gerri: thanks for coming on ken. >> great talking to you.

gerri: happy new year. >> same here. happy new year. gerri: thank you. now we want to know what you think. here is our question tonight. are you returning any christmas gifts? log on to gerriwillis.com. vote on the right-hand side of the screen. i will share results at the end of tonight's show. your voice is important to us. during the show we want you to facebook me or tweet me @gerriwillisfbn. send me an email. point your browser to gerriwillis.com. at the bottom of the hour i will read your tweets and your emails. and another tragedy in the skies as the search is on for a missing airplane off of indonesia's coast carrying 162 people. we'll bring you the latest on any clues coming up.

gerri: it is daybreak for rescuers in indonesia who are about to begin their second full day of search-and-rescue for the airasia jet that disappeared saturday morning. there are no survivors or wreckage and questions about what happened. we have an aviation expert. waldo, thanks for being on the show. we appreciate your time. 48 hours since the crash and we still don't seem to be closer to understanding what happened. what do you think? what are your theories?

>> in this situation there are three specific areas to look at. number one is the weather number two is an aircraft malfunction, number three is pilot error. likely in these situations it will be a combination of all three. because the pilot had -- gerri: go right ahead. go right ahead. >> well, because the pilot had asked for an altitude change and the he mentioned that there were some clouds in the sky. obviously there was bad weather inroute. the three things a pilot just do in any emergency is i have a very eight navigate and communicate. they may have been so full of aircraft, because of an aircraft malfunction, thunderstorm, incredible turbulence can be brought about because of that. you never really know until they recover the black box so to speak to look at the information that's available to them. gerri: all right. let's talk about that black box for just a second. shouldn't we be getting information from it now? why aren't we hearing about that? >> well there should be some information. the transponder on that aircraft should be sending information on

their last altitude, airspeed, location. it is unsvelting that -- unsettling that information wasn't present. think in this situation there could have been combination after electrical fire which could have possibly incapacitated the pilots because they may not have been able to communicate with them. many times like i said before, communication is the last requirement on that flight. so if they have a handful of aircraft and they're dealing with an emergency and unable to communicate that could have been the situation. gerri: i see. >> i think it, another thing that i haven't seen that was discussed is the possibility of a cargo on the aircraft. airlines are very cognizant of cargo, lithium batteries. there are big restrictions on having lithium batteries on board. if a cargo fire happened that may have caused some situation where people were incapacitated unable to communicate as well. gerri: we don't know if there were lithium batteries are on

board. i presume your concern is might catch on fire. let me get back to the reason, one of the possible suggestions that might have happened here that a lot of people are talking about and you haven't mentioned and i wonder why, maybe a lightning strike. they were in the middle of some of the worst weather imaginable. they were trying to find safe altitude much. there wasn't any safe altitude. could a lightning strike on the plane could cause all kinds of havoc? >> it could but very, very rare. i've been struck by lightning several times in an aircraft of the plane in general is able to dissipate that. the a320 in particular has been able to withstand lightning strikes. it is elect tick jet but able to dissipate the electricity. it is very, very unlikely. i think in this case a combination of wind sheer extreme turbulence, possibly an electric fire could have been caused and also what happens a lot of times, if, for example if there is a malfunction on the

pitot-static system that sits outside the aircraft, this sends information into the aircraft on altitude temperature -- gerri: pitot-static, what does that mean? i don't understand. >> basically the pitot tube and there are sensors outside of the aircraft, if malfunctioning for example, if they freeze up because the heating system fails, if there's a mechanical malfunction, it will send erroneous information to the pilot. and if that information is incorrect, for example if they say for the pilot to descend when they should be ascending or reduce power when they should be adding power, this can cause an accident. this is what happened with the air france incident over the pacific a few years ago. if they have erroneous information -- gerri: seems like we have more and more of this. malaysia this past year. talk about just this area for a second if we could because it's a busy area. there is a lot of traffic. there is boat traffic.

there is air traffic. >> sure. gerri: seems like i don't understand how this plane can really disappear? >> i don't either in all honesty. between air traffic control between the systems on board and between multiple pilots on the plane it is very challenging situation where they can't be found they can't communicate. so i'm sure the faa and foreign investigators will find this out but it is very unnerving. gerri: yes. >> you about the key is they have to do their research and aviation these days there are so many variables involved it will take some time for them to gather the data. gerri: waldo thanks for coming on and exploring the possibilities with us. we appreciate night yes ma'am. happy new year. gerri: happy new year to you. we have another tragic story to update you on now. the italian coast guard raised the death toll in the greek ferry fire to 10 after two more bodies were discovered this afternoon. officials are not giving details were the bodies were found.

they said 427 people had been rescued but the original manifest listed 478 people on board. an official also said among survivors there were people not listed on the manifest indicating that is that some on board might have been traveling illegally. when we come back, a look how 2014 became the year of the hack attack. you know that. next more burdens from obamacare as doctors offices scramble to comply with all the ruse. we'll explain. so ally bank really has no hidden fees on savings accounts? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees from the bank where no branches equals great rates.

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gerri: the obama administration prescribing a bitter pill for

doctors, digitized for medical records or pay up. starting next year, a quarter of a million doctors will be forced to pay. with more on this, dr. kevin campbell. of well come back to the show. good to see you. this is confounding to me, this initiative to digitize medical records sounded good in theory, right? reality is far different. we'll find it is truly a double edged sword for a quarter of a million dollars. what is going on? >> we've been mandated by the federal government get online with medical records or we'll see declining reimbursements and penalties when it comes to see medicare patients. what we don't understand what the best medical record system is. we're finding that emrs, or electronic medical records are slowing us down and really decreasing productivity right now. gerri: well, listen, dr. kevin what i heard from a lost doctors, i think yourself included, they spend hours literally hours every week inputting information into these

systems. i don't want my doctor doing that. i want my doctor talking to me, working with me, telling me what i need to do. >> you're exactly right. i've been a real advocate for promoting the dr. patient relationship and electronic medical records are starting to put computer screens between me and my patient. i have less time to talk to my patient, ask about their family and what is going on with them because i'm putting data into a computer. most doctors didn't go to medical school to become data entry clerks. that is what we're becoming. gerri: unbelievable. i hear folks spend as much as an hour a day doing this. do you? >> absolutely. i take my emr work at home. and it, comes into my family time because i can't get it all done during the day because we have to see more people, less time, and manage an electronic medical record which is a real challenge for everyone. >> i hear that some of these companies that do this service they realized that they have got some of these government, some

of this government money coming to them and they're taking advantage. are they doing good work or no? >> i think they do try to do products that workable. a lot of times some are not user-friendly. you know what they cost to individual practices? talking big practices 2 3 $400,000 to implement these remark records systems. you will never recoup that. gerri: that's crazy. that is a lot of money. i want to talk to you about another top i can which i think is very important and that is medicaid payments to doctors cut and cut dramatically as much as 43%. some estimates as high as 50%. what happened? >> when we rolled out the affordable care act one of the provisions it increased payments to primary care doctors with medicaid patients for a short period of time. that period of time is up now. do you realize we have 25% of americans are covered by medicaid due to the expansion

that was related to the affordable care act. now, these patients are going to be looking for doctors who are no longer going to take medicaid because the reimbursement is unaffordable and so poor. gerri: i sense a bait and switch here right? don't you think that what the government did they put a little carrot out there for doctors to take medicaid patients. and now they will try to take it away? >> i think you're exactly spot on. i think our administration wanted to tout large numbers of newly insured. what they don't talk about is can these newly insured patients actually see a doctor and receive quality care? that is an issue. medicaid patients tend to be thicker and more problems and require more time yet they will reimburse primary care doctors at lower than going rate. it does not add up. gerri: 69 million americans on medicaid. that is a lot of people. dr. campbell, thanks for coming in. >> thank you gerri. happy new year. gerri: happy new year to you as well.

the latest developments on obamacare heading into the new year. being uninsured will cost you more in 2016. starting next year all taxpayers will report to the irs whether they had insurance in 2014 as required under obamacare. fines for tax year 2013 were $95 or 1% of ad justed gross income per adult. that penaltied rises to 2% of income for tax year 2014. which means families forgoing insurance could owe 1,000 bucks or more additional on top of everything else they pay the irs. there are some 30 possible exemptions to that rule. coming up, we'll cover your assets with advice on trendy alternative investments and why it may not be the moneymaker people thought. 2014 had a lot of headlines but clearly the year of the hack attack from data breaches to retailers to the massive sony scanned dale. we'll look back to see what 2015 may have in store.

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and giving the attention and the resource that is necessary i would say that it is also at the

highest levels of the government. they understand the risks here. the partnership is being melted. >> but a lot of companies also want private customer information, account information and other types of information is protected in any legislation that congress adopts next year. gerri? gerri: i hope so too. i don't have great hope. listen, here is what i don't understand. seems to me there is a lot of conversation about getting the public sector involved with the private sector and trying to protect this data. >> right. gerri: what does the government know about this that private companies, fortune 500 companies don't already know or have access to? >> well, you know, it is all this intelligence net that the cia, the fbi the nsa all the others use and operate and collect information with. fortune 500 companies really don't have access to that kind of information. they can try to protect

themselves against cyber attacks or looming threats but they can't necessarily see them coming as well as government spy agencies frankly can. and so the idea is to allow the spy agencies to share information with private companies. for private companies to share information among themselves, when they learn of threats and with the government. and, not have, for example being in violation of federal antitrust law because federal antitrust law forbids sh forbids sharing of certain information among competitors for example. the one thing they don't want is they don't want the private sector doesn't want the cia looking at your bank account information. gerri: wow this is so hideously complicated. a big kumbaya moment. peter, thank you for coming on happy new year. >> you, too, gerri. gerri: somewhere predicting 2015 will be worse for cyberattacks.

with more on what to expect chief information officer teresa peyton. good to see you. i don't know if you got to hear peter. he's predicting more hacks in the coming year. do you agree, and what kind of hacks might we see? >> i agree i think sony was a watershed moment on a hack on so many levels. i agree, 2015 more data held for ransom, and hackers basically saying i'll give you your company back when i feel like it when you come up with my demands. secondly you're going to see more consumer data stolen. health care data. financial data. personal details about you that allow someone to masquerade online as you more credit card debit card data unfortunately will continue to be stolen. and you will see, in my opinion, you will see hack attacks literally leave the cyberspace and go into the physical where they turn off

power. they set fire to a factory that they don't like what they're manufacturing. i think those are the types of threats coming into 2015. gerri: theresa, one of the things i'm curious all of the groups are on the same page. they don't agree on politics don't have the same world views, couldn't you see them fight it out on the terrain of a company or the government for that matter? >> absolutely right. you saw that play out. you had sony saying well we're going to check our options, delay the movie. postpone the movie. and anonymous come out and say we're going to hack in and get the movie and show it if you don't show it. then you see the playstation network, xbox network, hackers took that off-line lizard squad. and comcast says give the, in back to the gamers, cease and desist, give you vouchers for privacy encrypted software.

you are seeing strange cybersecurity plays new cybercrime bedfellows. gerri: i'm glad you brought up the xbox and playstation, denial of service attacks so people don't lose personal information, you can'tutes product, right? >> glad you brought up that. sometimes a d-s do is distributed denial of service, inconvenience. other times it is used as a smoke screen a ruse to get the security team to rush to one part of the network while they go in the side door. we've seen that with the banking industry finding out money was missing in the wires department while a d-dos was going on. gerri: are you saying that's what happened with the xbox situation? >> you better check and make sure nothing is amiss, don't write this off as simple d-dos. gerri: what is your

recommendation to people individuals who have small businesses tonight. >> find a security company can you reach out and touch and have them hack you. have a third party group hack you, and can you do this on the smallest of budgets and tell you where your vulnerabilities are. second, as a consumer, as a business owner you need to practice a digital disaster. what would you do if someone hijacked your accounts and had precious photos of your children or files for your company. how would you respond and recover? lastly for businesses take advantage of the cybersecurity policies, they can be helpful in a situation like this. gerri: thanks for coming on tonight. >> thanks for having me. gerri: and now we want to hear from you christmas has come and gone my friends and now time to return the presents you got that maybe they didn't fit maybe you didn't like the colors, they weren't right. are you returning anything this year? returning gifts? here's what some of you are

tweeting about the poll question tonight, one viewer writes -- in addition to following me on facebook and twitter, "like" fox business on floor we go. and here are some of your e-mails on the busy travel holiday season. bruce from colorado asked -- john from montana says --

wow. and regarding those deadly takata air bags, linda writes -- tough words linda. we love hearing from you, go to gerriwillis.com. speaking of takata the japanese air bag maker hired american attorney. the lawyer is part of takata's efforts to resist demands by regulators to issue a nationwide recall of driver's side air bags. takata will work with nhtsa and other regulators to resolve the ongoing problems. the attorney starts on thursday. when we come back, what will the housing sector look like in 2015 where will be the hot places to buy? and next a once promising alternative investment turns

costly. looking out for you and your money, coming up after the break. 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. ♪ ♪

when heartburn comes creeping up on you... fight back with lief so smooth... .it's fast. tums smoothies starts dissolving the instant it touches your tongue ...and neutralizes stomach acid at the source. tum, tum tum tum...♪ smoothies! only from tums. . gerri: after the 2008 stock market downturn alternative or hedge mutual funds exploded in popularity. they appealed to investors because they offer the possibility of positive returns. even if the stock market takes a hit 2014 wasn't a good year for the alternative funds with investors pulling out billions. here with why, jonathan hoenig. welcome back to the show. good to see you. >> thank you, gerri, great to see you. gerri: coming out in 2013, tell me what's going on? these were supposed to be super hypedup, on high octane kinds of investments, just like hedge

funds, hmmmm! >> define the term, alternatives are a lot of strategies, you mentioned one, hedge funds but encompasses shorting shorting bonds, foreign exchange, wide swath. gerri: future commodities, derivatives, the list goes on and on and on. >> alternatives is a wide category. they came into favor after 2008 when the stock market collapsed and people sought alternatives that could do well even when the stock market was doing poorly as you talked about earlier in the show. the s&p is at an all-time high it's not surprising that alternatives would be underperforming in bull markets like this. gerri: the allure of hedge funds diminished too, those guys have not been able to keep up with what's going on, as you mentioned, the stock market, here's a chart what's happened in the s&p. it's been on fire. what would you tell people who have money in these kinds of funds right now? what should they do? >> i think well, of course

you need to know what you own. in general you have to think of a hedge fund like insurance. the whole idea is that you want to buy something that isn't correlated with the rest of your market, the rest of the market and the rest of your portfolio, and just like we saw in 2,000 or 2008 when the stock market goes down all stocks go down, large caps, small caps the idea is to have things that do well in the scenarios. the absolute return investments as one part of your portfolio. shouldn't be the only part of the portfolio but one slice of the pie. gerri: wouldn't it be nice when it was positively correlated when the market is going up. i have to say that. i want to talk about the future and 2015, i'm very curious what you see in your crystal ball for next year? what is the market going to look like? stocks in particular? what are bonds going to look like and particularly interested in interest rate outlook? >> so much can happen in the year. who would have thought at the

beginning of 2014 that oil for example, fallen 50% from high by the end of the year. it's impossible to look too far out. but for now, i think that stocks are very much in a bull market. stocks like home depot and walmart and the banks at 52-week highs, that indicates a bull market is still intact. where i'm betting is against the credit markets. we talked about how a lot of the high yield. the junk bonds leverage loans are starting to look week. that's the canary in the cole mine, i'm betting against bonds, particularly the high yield and the short-term interest rates in 2014. gerri: what would you tell an average investor nearing retirement who only feels safe maybe in bonds, what would you say? >> of course, our portfolio should reflect our own individual perspective and our own individual needs, and you know, if you're nearing retirement, your portfolio needs a change regardless what

the market entails. just might mean people say they hate to have money in cash because they're earning nothing. if you need the security of cash, that's the price you pay and that's the security that you should want. start with your needs and portfolio should move from sdmashgs if you don't have three to five years to invest in the bull market you should have money on the sidelines or in some of the alternatives that will do well even when the stock market is not. gerri: point well made. jonathan, happy new year. >> likewise be well. gerri: thank you, and time for a look at stories you're clicking on foxbusiness.com. shake shack is bringing ultrapopular shakes and burgers to wall street filed for ipo hoping to raise $100 million to add to 63 restaurants around the world, but isn't saying how many shares it plans to offer or at what price. stocks made very little movement today, and another

holiday shortened week, european stocks sell after greece headed for early elections that could endanger bailout. walgreens shareholders voted to spend 16 billion dollars to buy alliance foods. the deal is expected to close wednesday. combined company will be called walgreens booms alliance. "the hobbit: the battle of the five armies" took top spot for 54.5 million dollars. and those are some of the hot stories right now on foxbusiness.com. still to come, housing has been one of the few dim spots in the economic recovery this year. so what does 2015 have in store for the industry? one of the biggest name in housing has his in the forecast next.

. gerri: mortgage rates hit record lows in 2014, the housing market didn't bounce back the way other sectors of the economy have. will it be a good news scenario for housing next year? joining me jed from trulia economists. i looked at the results from this year it's not that impressive particularly when you talk about home prices. we had that polar vortex at the start of the year, and it went downhill from there. are we going to have a better year this year in terms of pricing? >> it depends whether you're a buyer or seller. home prices are going to rise more slowly in 2015 than 2014 which is more slowly than they rose in 2013. that's because we're no longer

getting such a rebound off bargain prices the way we have been. closer the market gets to normal, the slower prices increase because we don't have investors buying up bargain homes and foreclosures. gerri: so it's going to be a seller's market next year? that's what you see coming up? >> still a seller's market in most of the country especially in california parts of texas where the market's really tight, not a lot of inventory. that's where we see a strong seller's market. in other parts of the country and the south and the midwest, there's a lot more inventory, and it's a lot easier for buyers in those parts of the country. gerri: showing 10 markets to watch in 2015 so people get a sense what your interested in. as we get a look at that which is going rise faster, home prices or rents? >> right now it's looking close. i suspect we're going to see rents rise faster next year when rents rise faster that could make buying look more

appealing for people who are renting right now and watching those rents rise. remember if you're a renter and rents are rising, it gets harder to save for a down payment if more of your payment is going to rent. gerri: absolutely, a lot of people want to see the millennials get into the marketplace. we're dying to have the first time buyer come back. is 2015 the year for that? >> i don't think we're going to see the surge in first time home buying. here's why. young adults start to get back to work this past year in 2014. you don't get a job and buy a home for the next day. it takes years to save and qualify for mortgage. biggest group of millennials are folks in theirs 20s. that's young to be first time homebuyers, now or in the past. the big surge in first-time homebuyers may be a couple years away from us. gerri: talking in the last

segment about interest rates mortgage rates benign unbelievably so, do you think the market is hoodwinking itself, do you think the rates could spike this year? >> i expect rates are going to rise this coming year if the economy strengthens. that's what i and everyone else said about 2014. not all predictions come true but again, just as last year i expect the economy will be stronger next year, the fed will do less to keep rates low and both should cause rates to rise next year. gerri: prices won't rise as fast but interest rates could be higher too, a big picture. jed, thanks for coming on, good to see you. >> happy new year gerri. gerri: thank you, you as well. right back with answer to the question of the day, are you returning christmas gifts? stay with us.

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ok, why's that? no hidden fees from the bank where no branches equals great rates. . gerri: are you returning christmas gifts? 86% said no, we do not return christmas gifts. and not looking forward to an all-nighter with the kids on new year's eve? guess who's going to help? netflix, while midnight might be a struggle for kids to stay up. the online streaming service created animated countdown that parents can start any time they want. so can you start it at 9:00 and send the kids to bed before breaking out that bubbly for the real thing. the three minute video is available now. isn't that a great idea? send them to bed at 10:00 and enjoy new year's eve. i like that. good job netflix. that's it for tonight's "the

willis report." dvr the show if you can't catch us live. have a great night. charles payne is coming up next. . charles: i'm charles payne and you're watching "making money," and the market has been a rocketship and that has critics calling this a santa claus rally. lori rothman in for nicole petallides and on the floor of the new york stock exchange. tell us the floor is in a festive mood. >> reporter: investors are in a festive mood the dow failed to make it five consecutive record closes losing 15 points closing at 18,038. the s&p 500 did tack on 2 points to close at another record today. the s&p now has 53 record closes for 2014. so what was the problem? why were investors tempered today. news out