>> welcome to "on the money." are the markets heading for a record high or correction coming? what will the new year bring? what should you do with your money? keeping the consumers safe from your mortgage to credit card. the man in charge of making sure you don't get ripped off. who is better at investing? women? men? the gender gap. and from bold and brawny to short and sporty. the best the automakers have to offer. cars that will make your heart race and wallet a little lighter. and "on the money" starts now. here is a look at what is making news as we head into a new week. two important indicators concerning the strength of the

american consumer, the nutz ews mixed. retail sales rose by .2%. it may not sound like much. it came in spite of a dropoff in auto sales. major retail trade group says holiday sales rose by 3.8%. slightly below national retail federation forecast. higher than last year's 3.5%. all this matters. it tells the strength of the consumer. consumers make up 2/3 of the u.s. economy. markets couldn't make up their minds. earning season began. two strong dates two. weak days. s & p, record high wednesday. nasdaq posted the best two day gain since october. markets were mixed friday. lots of financial companies reporting earnings. wells fargo, goldman sachs, bang of bang -- bank of america belt expectations. citi fell short. intel missed. don't look now, google may soon know how warm you like your

house. buying the net labs for $3.2 billion. the second largest in google's history. earnings season is under way. markets can't decide to which way to go. what will the rest of the year bring? what should you do with your money? joining us now is liz ann saunders, chief investment strategist at charles schwaab. a different year, into earnings season. things look light. are you worried at the beginning of the year? >> not unless we get a big movement in one direction or other out of the economy. obviously top-line growth tend to be tied fairly closely to nominal gdp growth. thanks to the, increase in, in the economy we sawen t saw in t quarter. estimates starting to trend up for 2014. if that ends up being a myth and we lose the basis for top-line growth. then the question is, can companies squeeze any more out? can profit margins sx panned e

more. i don't think a high risk. >> doing that for years. cutting costs. trying squeeze more out with less. forget it. no mr. that can besqueezed out. >> we could see profit margins sx panned mo expand more. they could do well. >> not a repeat of last year, 30% gains for the market are you? >> not necessarily. one of the risks for the market is, a melt up. i think we could get that this year. and the reason why i say risk. >> good risk to have. >> good as they feel while they're happening. they don't tend to end well. corrections that follow are typically a lot nastier than if we had a -- grind up type of market. which i think would be a healthier, environment. >> what growth are you looking for, the 3%? 3.5%. >> the economy? the 4% in the third quarter.

estimates in some cases going to 3 1/2 and 4 for fourth quarter. that is a stretch for 2014. but i think we can comfortably hang at the 3% level than we have, certainly been in the last year or two. >> one of the things that you have been looking at its -- what has been happening because of the energy boom in the united states. what did that mean? what does that translate into, in terms of jobs, stocks? >> well, the energy boom obviously is helping to improve u.s. competitiveness. a game changer in terms of risks, economic risks, geopolitical risks. filtering into broad manufacturing too. but the other plus for manufacturing come pe manufacturing competitiveness, the gap has narrowed between us and china. other costs have narrowed. the total cost gap which measures all things which are myrrh use ab measurable. wage, logistics, transport, energy, all those things. that narrowed to a degree if you

were a u.s.-based company with u.s.-based customers no longer economical necessarily to ship your business over there. at charles schwaab, you see a lot of what people are doing, average american are doing, feeling about the stock market. have they caught on to what is happening? are they coming lit to the game? putting their money in the right places what are you seeing? >> what's interesting, we found with our client base is that the -- the investors that have a disciplined approach. whether they have an adviser that they work with, or they have an asset allocation structure, adopting discipline around that, they have fared much better, they have stated participants in the market. we find the ones that have come, more not so much do it yourself. sort of winging it, trying to time the market in the short term. they have been more fearful. been more on the, sideline. last year was definitely a turn. increased interest. i would not yet suggest that the individual investor has a frothy amount of -- of optimism. i think they're starting to

realize things have improved. a wait came out of the five-year numbers. from flat five-year per fforman, up 125%. i don't vup iew it as an extremo worry about. >> what would you tell those sitting at home that need to mack sure to put money aside for retirement. i may have missed out the last few years. what would you tell them?tment different. if your goal is to mack a return, beat inflation over the long term. you have to have equity exposure. time horizon, need for income. will define how that fits in a diversified portfolio. have a plan. work around that. i think again if your goal is to beat inflation in the long term. you got to have equity exposure. >> thank you for coming in. great talking to you. >> thank you. >> up next, "on the money" a massive security breach at

target, exposed 110 million american credit and debit card to cyberthieves. other retailers were compromised. are companies doing enough to protect personal information. our consumer watch dog will give his reaction. could the wolves of wall street come in first in lipstick. why women may be taking over the world of finance. right now as we head to the break. take a like at how the stock market ended the week.

>> we are using old technology. and there is a better way and it is called technology. >> target ceo telling me what could be done to prevent security breaches like the one his company experienced last month. up to 40 million target customers are reeling after discovering their credit and debit card were compromised.

is the problem that we are using outdated technology. how can you protect your information if the companies can't? joining us is consumer financial protection director, richard corday. thank you for joining us. >> my pleasure. >> as a consumer watch dog, what is your reaction to what happened to target and retailers with the security breaches. what happened? any time it is compromised it is exposing them to fraud. need to make sure the best technologies are used. retailers and consumer agencies have responsibilities. we are concerned to see consumers treated fairly. >> the new agency. only been out there two years. should consumers realize they should be contacting you with come mraenlt complaints. have you been hearing from people. >> i don't know that many consumers, understand that the protection bureau is on their

side looking out for them. bring complaints to them at consumerfinance.gov. 270,000 people have done that on a full range of products. credit card. mortgages. so forth. if people have concerns, something is not right with their account. they're not being treated correctly by their credit card issuer or, or provider, they should let us know. >> what do you think will happen with the case in particular? just with target and other retailers admitting that, they were breached, they were compromised, information changed do. you think we should switch to european technology, like was suggested? >> you know, i don't went to judge exactly which technology is the right answer. but i think it is a wake-up call for the industry. clearly has been, both on the bank side and on the retailer side. more can be done. right now with existing technologies. to protect people. and to see to it that consumers can use these payment mechanisms with confidence and assurance. >> your agency has been very busy. there are recently new mortgage

rules that went into effect. so what are those rules? and how will they help homeowners? >> we saw the financial crisis ills and the meltdown of our economy just five years ago. kaultz caused by the mortgage market. every bedbody agrees. rules for the road. you go to buy a house. you can have more confidence you will not be set up to fail. thee rules require a back to basics approach. that if they offer you a loan they have a responsibility to mack sure it is a mack -- make sure it is successful over time. >> huh do you enforce the rules? >> i agree. thetz are common sense rules. had they been in place before the crisis they would have prevented much if not all of the crisis. really taking us back to the kind of lending community banks, credit unions have been doing for years. a kiev poiey point we will have in place. the consumer bureau has

authority to send an examination team to mack sure institutions are handling them correctly and enforce. if people are violating the law. and hurting consumers we will be able to fix the problems. >> is it going to be tougher to get a mortgage as a result? critics have said it will make it tougher for people to qualify. that means fewer americans will get into homes? >> i've don't bleach that eliev correct. going back to basics we are making sure the lender checks out you can succeed in the mortgage. you can afford to repay it. what good lenders have always done. you can't have a lending model that succeed over time if you dent do th don't do that. when they started laying off the loans a day or a week after they made them. they didn't have interest in the long term success of the loan. we actually now need, surprisingly rules like this to mack sure lending is done properly. >> i can understand why mortgage areas are one of the top pry priorities, what are the other

areas over the next year? >> mortgage the biggest single consumer finance market. it was and should have been our first priority. credit card markets are important to us. there is a lot of change that occurred there with the card act. we are making sure that that is being handled properably. have areas of concern. we identified. student loans. auto loans, areas where we want to mack suke sure consumers are treated fairly. looking at the national level. the credit reporting industry. and debt collection where we are going to be potentially writing some new rules, to update and, and, improve the laws that protect consumers. >> sound like a full agenda. you are going to be a busy man. thank you for joining us. thank you. >> again, richard corday. on the money does gender play a role in investing. a recent study says yes. simply women's intuition or something more. we'll find out. later, the big three keep on trucking at the auto show.

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>> are women better investors than men? the question after women hedge fund managers, outperformed their male counterparts for a second year in a row. women investing and what can you learn to improve your rate of return. joining us is michael lersch,

and senior vice president, jackie van derbrug. thank you for joining us. >> thank you. this latest study, the female hedge fund managers outperform their male counterparts, are women better investors than men? what does this tell us? >> a great question. we see part of a broad trend we call womenomics, how women's increasing ek nconomic power is fundamentally changing our planet. hear people talking, warren buffett to joe biden. the question becomes, how is it with this economic power we can invest differently or how do we use a gender lens in investments. if you look at the study and say, actually this is part of one of the lenses, which is access to capital. women, whether they're hedge fund managers, or, whether they're micro-entrepreneurs, have less access to capital. michael, your study really interested me as well. 55% of women said they know less

than the average investor, they perceive it. 78% of them said they don't want to be actively involved in the investment process. yet half are concerned they're going to outlive their investment, 6 in 10 feel they have to financially support some one in their family. that add up to some, really, interesting dynamics. what is it about women? are they more risk averse than men? >> the idea that women are more risk averse than men you hear a luft in t lot offen the m ein the media. women feel like they know less than the average investor. but men feel like they know more than the average investor. >> just dumber investors as a result because they think they know more than they do? >> the key really here is your confidence in investing. men lean into the conversation. whereas women may tend to lean out of the conversation because confidence is lower. doesn't necessarily have to do with investment acumen, your perceptions of your investment

confidence driving behaviors. >> is confidence in your investing -- ability -- a good thing or bad thing? >> it can actually work for and work against you. that's why we see women and men collaborating together. can be a huge win. >> interesting. so if you are at home, you really should try and be involved. it helps to have two people balancing off each other. >> exactly right. >> one thing in your study that jumped out at me the idea that, when, when men and women know the same amount, feel confident, feel look they're involved, tend to not be as much difference in the investing behavior. gender is not part of it we are doing it culturally. >> you think the culture, the context. innate differences between men and women. they aren't as -- existent as we think they are. that really, it's, the context, the wealth level, the education level, theknowledge about investing. difference in confidence. once you equalitis the playing

field. men and women are similar. human beings with unique, need, concerns and goals. >> did you agree with what michael said, not a difference necessarily between men and women if they're both set up, both have same knowledge, given the same amount of confidence? >> absolutely. one of the reasons that i joined u.s. trust. we have a program for financial empowerment for women. this is how uh do yyou give wom confidence to successfully manage their wealth. that's essential. as michael said, we know that when, women and men come to the table together, and are both leaning into the conversation, the end investments are more appropriate for that family. so we are really looking for -- both to come to the table. now there are some differences. so for instance, our research shows that women are 30% more likely to say that they want their investments to reflect their beliefs, their values, their social political

environmental views. >> they don't want to be investing in companies they think are doing harm? >> exactly. when they bring that into the equation. they start talking. men say this is what i care about. we break down the wall that has traditionally existed. you can bring your values into your philanthropy. your values into your planning. stop and don't take your values in your investments now. we are saying no. let's have a holistic conversation here. >> michael, jackie, thank you for coming in today. >> absolutely. >> up next, a look at the news this week that will have an impact on our money. and auto sales in high gear. what will you be driving next year. a look at the hottest cars from the detroit auto show.

you can go to our website -- follow us on twitter@onthemoney our handle. stories coming up -- may move the markets and impact your money. johnson & johnson, proctor & gamble, microsoft, verizon and ibm report quarterly earnings. results next week, netflix and ebay. monday markets closed in observance of martin luther king jr. day. wednesday, business and political leaders defend on switzerland for the forum, three day event, economic social issues are addressed. thursday, a look at home sale numbers for d.c. finally today, with vehicle sales in the u.s. hitting highest point since

2007. automakers are ramping up models. horsepower is roaring and the big three. a look at the head-turning models at this year's detroit auto show. >> the bold and the brawny are back in the spotlight in detroit. from the 625-horsepower chevy corvette to the all-new ford 150 which got a complete makeover going to a body made out of aluminum alloy. >> it has been fantastic. of course, real value proposition for the f series. at lum nu the aluminum cab. >> the all new gmc canyon. >> while trucks are getting atension. the sports cars have people buzzing. porsche's targa at $100,000 is a convertible with retractible roof described as mechanical magic in motion. and toyota's concept shows the japanese automaker can build cars that make the heart race.

>> we basically went to our designers who are passionate about sports cars, and with a clean sheet of paper give us what you think the ultimate sport car is. >> bthe bentley is far from a sports car. with 521 horsepower go 0 to 60 in 4.3 second. right? $196,000. mercedes is rolling out a new slightly larger and more refined c class. >> the baby is all grown up. this is probably our most accomplished, most intelligent execution. >> the chrysler 200 has been redesigned featuring the aggressive and curvaceous look. a huge improvement for chrysler. the vibe at this year's auto show is one of optimism. the auto industry is once again on a roll. >> those who have jobs are in good shape. every bed hbody has money to sp. more units.

looks like a good next five years. >> altogether automakers are launching 63 new models in the united states this year. a record for the industry. and that's a slew of new models, one reason executives at the show are optimistic that 2014 will be the fifth straight year for higher sales and profits for the auto industry. >> well, if that doesn't get your motor running i don't know what does. that's our show for today. thank you for joining us. each week keep it here. we're "on the money." see you again next weekend!

. nominations are in. hi, welcome to access hollywood. this is the weekend edition. the nominations take golden globe winners leo decaprio and matthew mcconaughey against each other in the best actor category. we have matthew's reaction. >> the "dallas buyers club." >> lead actor, matthew mcconaughey. >>. [ cheers and applause ] >> matthew, i got to say, the bo bongos came out this morning, my friend. >> oh, yes, we are doing real well. very excited