your own hit or miss, be sure to tweet it to us jer at fnc, that's it for my show, thanks to my panel, thanks for all of you for watching, i'm lou is back monday. have a great weekend. maria: happy weekend. welcome to the program that analyzes the week that was and helps position you for the week ahead. i'coming up in a few minutes, te most respected vices on fixed income around. black box, global chief investment officer of fixed income, rick reider, $1.7 trillion in assets, my first guest. first to the fox business room with the headlines affecting wall street to main street. >> wall street's wild run of volpety continuing this week. in the end, finishing the holiday shortened trading week in the green with a short rally

on thursday. all of the major averages for lower for the month of march. the first back-to-back monthly losses since 2016 for the quarter it was a down month for the dow and s&p. that hasn't happened in two and a half years. the nasdaq eked out a gain for the first quarter. nasdaq bucking the trend despite amazon getting socked on reports that president trump is rooking to rein i i influence. by wednesday's close, the stock was officially in correction territory. premp tweeting that he believed the online giant is responsible for thousands of struggling retailers because it doesn't compete fairly. the stock recovering on thursday after a white house spokesman said there were no definitive plans to regulate amazon. meanwhile facebook's data mining scandal got worse, the stock entering a bear market on monday, 20% off of its high office the fad.facebook agreeiny

before congress over the company's handling of user's data. but that was before a devastating memo was leaked after thursday's close. the memo written in 2016 by a facebook executive was entitled ugly, stating that the company's goal was to connect people and grow. expect more fallout next week. talk of a huge teal deal in the works. retail giant walmart is in early talk to buy humana. the move seen as an attempt to get ahead of amazon's expected move into the health care space. if the deal were to happen, walmart would become one of the country's biggest health care providers overnight. the federal judge overseeing the eapt trust trial has warned both sides that the case is progressing too slowly and he hay not be able to render a

decision before the june 21 deadline. if the case is not decided by then, either side would be able to walk away from the deal. maria: talk about a volatile quarter on wall street, trade tensions, shakeups in washington, interest rate worries, inflation pushing the dow ans&pushingpushing thedow . all ending the month firmly in the red. what do the investors need to hear from washington to ease uncertainty and build confidence. let's look ahead right now, chief investment officer hank smith joining me now. thanks for being here. >> it's good to be with you. maria: first, what struck you about the first quarter and let's talk about with where you think things are going, second quarter and rest of the year. >> well, look, for a long time in 2017 we kept telling clients, you need to expect volatility. what we were experiencing in

2017 with no volatility was very very unusual. so we certainly got our share of volatility in the last two months of this first quarter. but let's examine why this occurred. there are four factors in 2017 that the market was keenly paying attention to and they were all about fundamentals. gdp growth was accelerating here and abroad, corporate profits were improving both here and abroad. inflation remained benign and interest rates stayed low and steady and that created an environment that us with just perfect for equities. maria: yeah. >> what has changed is inflation has ticked up a bit, interest rates have ticked up a bit reflecting that tick-up in inflakes, and the market is a adjusting to that. importantly, though, on the front end, gdp growth is going

to accelerate this year. corporate profits are going to be in the mid teen growth in 2018. and we are in the -- going into the tenth year of an economic expansion in a bull market and we're gaining acceleration in gdp and growth markets. maria: we saw a gdp number up 2.5% growth for the first quarter. we're expecting earnings to be up 16.5% for the first quarter, earnings in the s&p 500 to be up 18% for 2018 and we're expecting growth to continue to pick up in the year. how do you invest in that environment? >> well, look. you certainly need some encyclical exposure. that would be industrials, basic material, financials, technology, you can use the

pullback in these sectors that we've experienced in the past weeks as an opportunity. but i also don't think you want to ignore the defensive side of the equation, consumer staples, health care primarily. we would avoid the pure interest rate sensitive sectors, utilities, telecommunications as an example but i think they're going to be under pressure with the rising rate environment. so a balance between offense and defense may be skewed a little more toward offense. maria: all right. so a couple of things to point out. we're going to get some specifics on the u.s.-china trade relationship in the next couple of weeks. we understand that we're going to hear from the treasury restrictions in terms of china being able to invest in the united states as well as tariffs. that's one thing. then the first quarter earnings are going to begin in ernest april 13th, jp morgan kicks things off april 13th. and in a week we'll get the jobs

number. we'll have the latest numbers in terms of employment for the month of march. where do you want to be positioned going into all of these events in the next couple of weeks . >> again, i would say that investors should use this pullback in the market from the january highs as an opportunity if you're not in to get in. and so -- and again, a balance between offense and defense. and of course if you're already in, you need to stay invested. and you're going to have to accept some of this volatility. but i think we're going to have a good -- i think the numbers are going to be coming in over the next couple of weeks, going to be good. i think corporate profits, the earnings reporting season will be the perfect tonic for this market. maria: now what's your take on tech? obviously we had a little bit of a tech wreck this past week. all of the speculation and upset over facebook and their data

abuses where outside parties were getting access to all of our information on facebook. do you want to avoid tech or was that an overreaction? >> well, i think -- i don't you want to avoid it. and i think you use, again, these pullbacks to step in. but recognize whenever the specter of washington is shining on an industry or a company, you're not going to necessarily get near term performance and i they's where we are right now. maria: we'll leave it there. hank, good to see you. happy easter to you. hank smith, we'll see you soon. don't go anywhere, black rocks global investment, my guest next >>

maria: if federal reserve

raising interest rates last week for the first time this year. positive economic growth is leading some investor to expect five interest rate hikes instead of three or four as interest rates creep up and worries about inflation rattle investors. joining us right now, blackrocks global chief investment officer of fixed. neil: , rick reid. great to see you, rick. >> thank you. maria: first let's talk about the fed. i had not heard five rate hikes before this week. what do you think? is that cray disai? >crazy?>> yes is the answer. they're going to move three or four times, they're going to react to the data. inflation is accelerating. it's important and it allows them to move what we think will

be three or four times this year and do it again next year. do they need to speed it up with inflation? th're no no rush. i don't think five times but it is important because we're in a different regime right now. maria: i want to talk about how you're allocating capital and how you see equities. give us the backdrop. just the fact that there's an aassessment tells you that things are getting better, right, the backdrop? >> totally. we could create 5% nominal gdp. maria: are you kidding me? >> 3% real, 2% inflation chish and get 5%. people think it's going to be higher than that. if favors quarter of the year is always slower and as we get into the second, third, fourth quarter this year, the numbers driving, capital expenditures being higher, growth is going to be higher. the fed is not going to try to choke the growth off. it allows them to move. but there's some important things because as the fed pulls

back, we've been living in a world where it's a put to the ed federal reserve. as the fed keeps policy easy, things will be okay because they'll keep going until a problem is solved. maria: we didn't se see any volatility last year. >> no. and the fixed index operating at these low numbers, it as not normal but that's because the banksebanksesbanks flooded the . now it's going to be more normal. i think the equities will go up and you're going to have to absorb volatility because the fed is gradually pulling back. maria: the first quarter is now officially over. we saw the some market not do well in this first quarter. what was most stunning to you in this first quarter enand what is the rest of the year or the second quarter at least look like? >> the thing that was the most incredible is you had two different parts to this quarter

in an extreme way. think about january was all that people wanted to do was buy call options, get me as much exposure to equities and then i was how can i get out in the last couple of months. what people are going to do now is take a step back, where are we going and what sort of drove this. there was certainly news around trade, technology stocks, the front end has moved up there's a lot of cross currents. i think when people step back and think about what's going to happen, growth has been pretty good, infraitio inflation is mor but not a scary way. markets are going to be in a pretty good shape. you'll have still some volatile till but generally we'll be pretty good markets. maria: you would be putting money to work in stocks but you also want to own the front end of the yield curve. >> there's way to make money in investing today but they have to be different. the regime is different than two or three years ago. when you keep rates at zero for a long time, people have to

search for other ways, get into the high yelled bond market cause that gets me a yield. nowouave other alternatives so you don't have to own as much in equity as you did before. that doesn't mean they can't go up. what do you do? you own the front end of the yield curve, two-year treasuries and carry over 2% and take some equity exposure. it's much more a normalized state of equilibrium than i'm at zero, i better find other ways to get the risk. i think people have to think about that differently. go global to try to get your income. it's a very different regime than last year, two years ago and people are just now starting to adjust to that. maria: even if you own the two-year and you're talking about 1.6%, you're still talking about a level that's under inflation. >> so, i mean, two-year treasuries are almost 230. so inflation is still of course cpi is at 180.

if inflation accelerates a bit higher, if you own long-end interest rate sensitive bonds, what will happen is the bonds can go down in price dra ma dramatically. it's the long end of the yield curve, long bonds that are incredibly sensitive to interest rate president you have to think about where do you have that and if the inflation rate moves high wehigher, they can have a hard time. maria: a lot more to discuss with rick reider when we come right back. . could it be time to move your hard-earned money away from stocks and into bonds? >> the question of you know how fast does it do it. >> more of maria part mor

today, we're out here with some surprising facts about type 2 diabetes. so you have type 2 diabetes, right? yeah. yes i do. okay so you diet, you exercise, you manage your a1c? that's the plan. what about your heart? what do you mean my heart? the truth is, type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. but wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease alower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you

have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so-you still just thinking about your a1c? well no, i'm also thinking about my heart. now it's your turn to ask the serious questions. ask your doctor about jardiance. and get to the heart of what matters. are finding themselves morin a chevroletple for the first time. trying something new can be exciting. empowering. downright exhilarating. see for yourself why chevrolet is the most awarded and fastest growing brand, the last four years overall. switch into a new chevy now. current qualified competitive owners and lessees can get this 2018 chevy equinox

for around $199 a month. chevrolet. find new roads. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

rates, trade, all of the issues that investors are debating, what kind of economic implications and market implications that we'll see as a result of this. rick, are you worried about these headlines over trade? that is what has been the issue for the stock market. >> i think we've lived for three or four years we have to follow every word of the fed. i think that's gone away. it's always going to be important but i think trade is a big deal and i think the markets, how we think about trade -- china has become such a large part of the global ecosystem. china is 42% of the global growth in the world. that dynamic, they're about 50% of commodities, iron, ore demand, copper, aluminum, zinc,

hugely important. 's uncertain how it's going to play out. there is, if we go from an extreme point to gauch negotiatn sean positive news around how we're negotiating, the market is going to respond really well because now you can start to respond well if you get some bilateral agreements, if you get some agreements that suggest that we're not going to a very tough protectionist type of style. maria: and i think the market needed to digest what the president was saying. is this a negotiating ploy? is this the beginning and will we see stability. and it feels like we're getting stability. what a the inflation story. you're not worried that the interest rates are going to f away? >> i find it an interesting dynamic that people are terrified. they look for the negative. rates are going to move higher than where they are today. the ten-year is going to breech 3%. question of how much does it do

it. you look historically at where interest rates are -- maria: still really low. >> yeah. and that will evolve over the next year or two. in a balanced portfolio we think makes a lot of sense. if you thought that inflation was going to be volatile and that would cause the fed to have to react to it. but you think about what created that in the past. new think about the last decade was oil. oil was moving around extraordinary into levels, 30, 50, how does the fed react. oil gets into the multipliers in the system. oil is incredibly stability today. you don't have an instigator to create mass volatility of inflation. if that's the case, we have a sense of how the fed is going to move and it's not that scary. maria: how do you want to be exposed? you've got to yfer see $2 million in fixed income assets. what are you ideas in fixed

income and then touch on equities. >> this is one of the environments that is more normal than in the past you think about now, you can actually create a portfolio. you have real income and you don't have to go out the yield curve. there have been a few trades that worked in the last couple of years. i had to take interest rate exposure because the short end was a dero. i had to take on more risk in the portfolio. i don't have to do that anymore. we like owning the front end of the yield curve or se court assets. we buy a lot of commercial open i don't haven't to take a lot of credit risk of interest rate risks. emerging marketing, people don't think about the world in a global sense generally in this country. and you know some of the emerging markets are much more stable than they've ever been before. maria: so you like emerging marketing bonds? >> i like them a lot. maria: we're seeing synchronized global goat around th growth ar.

>> we have historically high in terms of every country in the world is growing, which is impressive. is moving but not inciatin that aggressive of a way. as long as we get back to the discussion of trade, as long as china is growing and there's not a disruption in global trade, emerging markets are going to do well. you're getting paid for taking the risk on the debt side. the developed markets are where the rates are too low. and where inflation is coming down, rates are going to move lower. i don't think people factor that in. maria: it's great to see you. rick reider from blackrock. don't go anywhere. don't go anywhere. more "wall street" after ♪ hey, sir lose-a-lot! thou hast the patchy beard of a pre-pubescent squire!

thy armor was forged by a feeble-fingered peasant woman... your mom! as long as hecklers love to heckle, you can count on geico saving folks money. boring! fifteen minutes could save you fifteen percent or more on car insurance. where we're changing withs? contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com.

there is a lot on tap in the week ahead. let's take a look at the big market events coming up next week that could impact your money. on monday, manufacturing pmi and

construction spending data released. a lot of icm manufacturing and pmi reports this week, not only in the u.s. but also china and europe. on tuesday we get auto sales out. analysts are expecting a rise in sales. on wednesday the adp employment is out. services, pmi factory orders and data released. on wednesday quarterly numbers. and then on thursday initial jobless numbers are out. friday, consumer credit data is released and the march employment numbers are out. that's going to be an important one. tune in to fox business for breaking coverage of the jobs report for the month of march. an friday, releasing earnings numbers and we're looking ahead to the first quarter reporting season which kicks off on april 13th where we're expecting earnings to be up 16%. next week, tony james will be m special guest talking

private equity and markets in genel. and then on sunday morning, live at 10 a.m. eastern, a lot of news on the fbi investigation. have a great weekend everybody. that will do it for ♪ >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe.