welcome to "on the money." i'm becky quick. the markets end the year with bang, but what will next year bring? what you need to know to invest in 2014 and beyond. we're putting january 1st to the test. making new year's resolutions for the market for congress and for you. how to be wealthier and wiser in the new year and healthier with a profit. businesses try to add to their bottom line. "on the money" starts right now. >> this is america's number one financial news program. "on the money." now becky quick. here is a look at what's making news as we head into a new week. santa claus came to town. the dow and s&p extended their record runs hitting fresh highs and by thursday posting the

strongest six day winning streak in years. the dow is on pace for biggest percentage gain since 1996. holiday sales were about 2% higher than last year's figures. online sales saw 10% growth. more signs of strength in the all important housing market. new home sales rose more than 16% in november from the same period. that translates into an annual rate of 464,000 home a month. that's the strongest two month surge in over five years. apple has cracked the biggest market in the world. the company signing a deal with china mobile to sell the iphone through the largest network of mobile phone users. they have 760 million customers. this could boost iphone sales by

as much as 20%. 2013 has been a stellar year for investors. will next year be smooth sailing or filled with potholes. joining us is russ koesterich who is the global chief investor and david wessel at the brookings institute. thank you for being here today. russ, why don't we start about what to expect in 2014. you think we can get a repeat with the stock market? >> well, by repeat you mean another year where stocks were up 30%, that may be optimistic. >> maybe a little bit of a stretch? >> maybe a bit. i think stocks can go higher next year. fundamentals were down. valuations are a bit stretched more than a year ago. if we have a year in which economic growth accelerates in the rise and interest rates remains modest it can make 2014 higher. >> are you expecting the economy will do just that?

>> we are a base case scenario for 2014 the growth will be seen. the path for two years. something close to two and a half to 3%. i don't think it will accelerate beyond that. while there are a number of factors, the improvement of the job market, higher household wealth. one factor which is still working with the recovery is higher wages. it's harder to see spend and accelerate dramatically from here. >> david, what's your take on the economy for next year? >> there are signs next year might be the year things get better. every year the forecasters, press, federal reserve say next year will be the good one. each year we have been disappointed. i think this is the year we get our wish. nothing like a four or five percent growth. it would be nice to be at 2.5 and 3%. that might help bring the

unemployment rate, which is still high at 7% down enough so employers will raise wages and that will create the spending power. it does depend on no bad surprises. we had a number of bad surprises in the last couple of years. the tsunami in japan, the debt ceiling fiasco, europe trying to blow itself up. we have to hope for no bad news. >> what makes this year different? that we won't get bad news. >> there's something different. consumers have paid down enough of the debt. they are beginning to borrow again. this recent budget deals mean they left the bells out a bit on government spending and once they get past this debt ceiling thing, which i think they will won't be a year and a half with confrontations over the budget. i think both of those will be helpful. >> one of the risks in 2014 is do we continue to see further

issues with the affordable care act. the reason i focus on that is this is an issue that's visceral for a lot of people in a way that's much more important to your day-to-day life than the budget. if this continues to be challenged that does have the prospect to undermine confidence and doing so will hurt the business and consumer spending. that's a risk for 2014 to watch. >> david, would you agree with that? >> partly. for most americans the affordable care act doesn't change much. those people with medicare or medicaid, they are getting it from a big employer. it's focused a lot of attention on government and it's greatly undermine public trust. there's some connection between trust in government, trust in institution and the confidence that leads consumers to spend and importantly leads business to invest and hire. >> let's talk about another institution that people have

been watching and that's the fed. they said they will be tapering come january. is this something you think has an impact on the markets or the overall economy? >> you think so, but it's really interesting that the fed announced they will begin the long awaited long dreaded taper and the stock market has kept going up. the ten-year treasury is about 3%. that's reacted. i think if the fed manages to transition from ben bernanke to janet yellen, the slow steady tapering and convince people they're not going to rush to raise short term interest rates this may be surprisingly a nonevent. >> let's cross our fingers for that. let's talk about what you think people should be doing in terms of the new year. what new year's resolutions should they be making when it comes to their portfolios. >> for investors that have been over the u.s. have ignored international markets, i think this is a good time to consider

bro broadening out that exposure. not that these rul necessarily will do brilliantly in 2014 but over the longer term lower valuations suggest that these markets can also add to portfolio over the next three to five years. >> thank you both for joining us and david and russ, happy new year. >> same to you. up next, we're "on the money." telling the future in 2014. washington, wall street, your bank and maybe even your boss. later, getting healthy in the new year. how many of you stick to your resolutions to eat better and exercise more? i'll talk to two entrepreneurs who are betting on your attention.

what will you do next year? on twitter, get in shape again and come up with an awesome family vacation. i like that. that sounds good. also on facebook sarah says resolution for 2014, start my

business and be more financially secure. from your resolutions to those we might see or would like to see from our leadership on wall street and washington, joining us is ben white and mike santoli. thank you both for being here. >> thank you. >> thanks. >> ben, you've said that you think washington, d.c. will be less dysfunctional in 2014. high praise, i know. what do you mean? >> hopefully they won't where you shall crush the econombll c. they made this budget deal. on the debt limit i think the republicans are keen to fight on the affordable health care act. don't want to get sidetracked. i think getting a debt limit fight that could hurt them would be side tracking them from their main goal which is to beat up democrats and obama. >> there's some wrangling and

people who aren't necessarily going to follow the party leadership. could that mess it up? >> it could. there will be hard core tea party republicans who will want something for raising the debt limit. they will need to get something from democrats. that's where you have the potential for something of a conflict. i don't think it will get to the 11th hour. at some point president own and democrats will have to say we'll give you this on spending. there will be to be some piece of legislation. you can add to the debt limit to make it an easier vote. i think that will happen early in the process. >> mike, anything you'd love to see from washington this year? >> to me the bigger question is how many investors have internalized this idea washington can't derail the economy. washington didn't do much of anything to help us out. there was enough resilience in the economy that we got through

it. i feel like you don't get a boost of good news by washington being put off by the side. >> is it really still too early to tell what we're looking at? >> it's not too early to tell. i think we're looking at status quo. i think the democrats will retain control of the senate. republicans will pick up a seat or two in lots of southerns sta states that could have a hard time winning re-election. democrats will lose sights. they're not going to gain majority. divided government after this election. democrats in the senate and republicans in the house. >> what about john boehner? any threat to his leadership or is he winning more power by clamping down on anybody? >> i think boehner has beaten back any real challenges to his leadership. he's broken the tea party in this last budget deal and show them to have less of power.

there's no immediate one apparent to him. eric cantor will not usurp him. if he wants it, he's got it. >> mike, your outlook for the economy next year. we've seen the fed say it's going to start tapering. people figure the fed is seeing something it likes. >> the market is up 30%. it means they see good things. it's okay with a gentle well telegraphed taper. the risk is you get some run of da thta that's up end. people in the market are really optimistic. it's almost begging for scare. that scare could be that you have a good run of economic data and people say the fed will have to go faster than we

anticipated. it's 3% of the ten year treasury yield okay? can we deal with that or show some impatience of where rates are? it doesn't mean it's over. it gets a little bit more dicy as you worry about both the possibility of going too fast or too slow. >> pretend you're janet yellen. tell me what you do in 2014. >> remain flexible and listen to the markets. we know the course has been set for her by her wrork and what bernanke has set up for her. i think you have to be mindful of the market overshooting and taking the wrong message. >> when you say mindful of the markets, you're not talking about mindful of the data. you say watch the markets. >> watch the markets interpretation of the data and the markets forecast of the feds intention. >> i think the first thing you do is thank ben bernanke for getting there started before he took office.

he did a great favor to her and her first task in office is not to begin the taper but just to look at the data, look at the market reaction and decide at what pace to continue the data. i think the data will come in strong enough to continue to taper at a pace. >> let me ask each of you if you have any big global concern, anything you'd love to see next year. >> i think china and its debt problems and intermittent banking issues haven't had a broader impact but you have to watch it. i want to see big companies resolve to invest and spend for the long term. companies have been rewarded for being conservative for years. we're long overdue for that part of cycle you should start investing in. >> that would change the jobs picture. >> corporation spending would be huge globally. i think you have to pay attention to the middle east, particularly egypt now. that's going to be something to

keep a close eye on, oil prices, obviously. the middle east is something to watch. the olympics in sochi, the world cup in brazil. i think both of those come off with any significant bad events. >> terrorism or any type of unsettling, destabilizing event centered on the olympics and world cup. >> people will be watching. it does make you feel good. >> precisely. if we don't have any crisis out of those. >> thank you both. up next, we are "on the money." slimming and trimming clients is the bread and butter of the weight loss industry.

if you have decided to eat better and exercise more in 2014, you're not alone. you're more than 100 million americans that are likely to diet next year. companies stand to rake in more than $60 billion in revenue. eric helms is the author of juice generation and jeff halevy is here. thank you for being here. >> thank you. >> i'm one of those people that make the resolution and say this is the year that i take control. i wonder why people have issues like this and does it make both

of your businesses cyclical. this is like crunch time for you? >> for myself we really don't have, we really cater to a different type of mind set. a client with a different type of mind set. >> somebody who is a little more series? >> somebody a little more committed. it's a service only model so people are coming to have services administered like personal training. you have to commit to 90 days of working with us. >> smart. >> smart for our client. it's a quality control measure. >> using something that people do more in january or is this really becoming a year round event. >> it's a year round event. we do see boost in january. we see a lot of people walking into stores wanting to know what is green juice. is it something i want to make part of my daily routine or how

can i do it. we do see a boost in january. >> i don't know you thought of this in the last century. it's been over 15 years since you launched this stuff. >> i'm definitely one of the pioneers. >> how did you know this was going to be a big business? >> i didn't know it was going to be a big business. it was something i was passionate about. it's really a huge force in my life. i felt that i've been spreading the word for 15 years and it's just good luck that a lot of people are really catching on and finding how juicing can make you feel better and look better. >> i will admit i've not done juicing before. i am going to try this. explain what this does for me and which one you're going to give me. even though it's green you say it tastes like watermelon. >> i have some green drinks and people think it's going to taste like my front lawn. that's not the case. in my book i divide the program called the green curve. where ever you are in your diet, if you get a lot of fatty

process food, you can start off slowly. green juice tastes good. we can make anything taste good. that's what a new year's resolution is about. it's something that you like you're going to do it. you're going to go back. if a juice tastes good it's something you're going to want to do. if it's painful or tastes bad, you're not going to do it. >> that's probably a message you tell people too. what's something they should be doing in terms of exercise regimine. should it be diversified. >> sure. really everything starts from the inside. i think that the most important thing that people can do right now whether it's starting any new habit including having a juice every single day is to start small so the first thing is to start with a baby step like flossing one tooth or holding a green juice every single day or walking into a juice generation.

i think the next step is anchoring it to something you already do so right after you do something and the most important part self-celebration. nobody celebrates their efforts enough. we all beat ourself up when we don't get to the gym or have a green juice. we don't give ourselves a pat on the back often enough. >> you mean this literally. starting with baby steps and trying to ease yourself into it. open the juice for me. >> don't be so eager. >> i'm going to do this. i'm going be a believer. >> it looks maybe not as tasty. >> i would definitely think i was drinking grass. >> looks are deceiving. >> that's pretty good. >> could you do that every morning? >> uh-huh. >> it's so easy to make. if you have five minutes in the morning. >> these are expensivexpensive. >> you can prepare over the weekend. if you have $20 a week, you can

have a healthy green habit every morning. >> thank you both so much for coming in. it's inspiring for me. i'm going to try to stick to my guns this year. up next, a look at the news this week that will have an impact on the money. as we go to break take a look at how the stock market ended the week. did you get chips for the party? nope.

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you can resolve to follow us on twitter. our handle is @onthemoney. on tuesday we'll see how home prices faired. we get the confidence index for december. on wednesday we'll celebrate new year's day. the markets are closed for the holiday. also on wednesday health coverage under obama care will begin. plus recreational marijuana will be legal in colorado and washington state. we'll say good-bye to the 40 and 60 wattlightbulbs. those are being fazed out. that's the show for today. i'm becky quick. thank you for joining me and happy new year. each week keep it right here. we're "on the money." i'll see you next weekend.

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