still three times larger than last year's deficit. the markets started the week on a down ne on monday after the asia markets tumbled. they bounced back on tuesday. on friday, the markets rose once again on strong existing home sales. the final two dow components of the season reported earnings, this past week, retailer home depot and technology giant hewlett packard beat expectations. and cash for clunkers is coming to an end this coming monday. the administration is pulling the plug on what is called a successful program because it's running out of money. more than 57,000 cars have been traded in for $1 billion in rebates. there are continuing signs that the economy is picking up steam. are the marketing getting too far ahead of that expectation? joining me now is the ceo of

nyse duncan niederauer. duncan, great to see you again. warren buffett had an op-ed in in the new york times this weekend. let me read you what he said. the united states economy is now out of the emergency room and appears to be on a slow path to recovery. the deficit will rise to 13% the gdp. fiscally we're in unchartered territory. do you agree with his expectations about his economy? how does the broad fundamental landscape to you? >> it's hard to disagree with what warren laid out in his piece, right? the good news, the government stepped in decisively and did what it had to do. as warren points out the way they did that was by spending, ending and spending. those chickens come home to roost eventually. i thought his piece was right on target. i think we need to see the government shift more to we know that's the issue we're going to have the solve. good news we avoided a calamity. now, how do we handle the

problems out on the horizon next? >> do you feel like there's an exit strategy in place? some of these programs from the federal reserve, some of the stimulus out there. i mean, lot of people wonder if the stimulus is really working. >> it's got the beginnings of working. i would contrast it to brazil and china. both of where i have been to recently. it's much more evident that the similar us plan has gone to work in those countries than year. a little harder to find. with a piece of that and the other programs they're at least thinking of the exit strategy. i just don't think we have a lot of clarity of where it comes from here. >> we need more detail. you're just back from brazil. you met with government officials and corporate leaders there. how does the economy feel to you? this is one of the so-called brick countries, brazil, obviously russia and china. >> the first observation i had, they're leaving the economic downturn in the rearview mirror. they are already poised for good growth in '10. like you just cited in warren's piece, their fiscal deficit is

percentage gdp is nowhere near where ours is right now. they're not going to have the problem down the road. do they have some social issues to deal with? yes. but their economies seemed to me already up and running. very poised for more growth. and i think their experience of real crisis was 15 years ago and the changes they made since then, it felt like to me, it's positioned them really this time to come out of it a lot quick zmrer china has been a big sty in the news on wall street. i'm wondering how important is china for investors in the u.s.? we saw that china stock marks dictated the world markets earlier in this week and on friday, we had the selloff, lot of worries. what do you see in china and should we be focused on what china does as it relates to united states? >> i think we need to be. because of the growing importance of the china

population and the economy. one thing people on served in the last week, people forget that the chinese capital market has been opened for less than 20 years. the stock market in shanghai had an incredible run-up this year. for it to give a little bit of that run-up back, do i don't know if the world markets should necessary follow that. we didn't follow it on the way up. >> stocks we should be looking at the chinese economy. but not the chinese stock market. >> that's my view. >> let me ask you about financial regulation. something that you studied a lot. you've have seen so many changes onall street throughout your career. efforts to increase regulation in some of the markets. what's going to work, what are you concerned about? a little bit confusing for some of our viewers, in terms of where the regulation will be and where the oversight will be? >> i'm going to keep saying what i have been saying. the regulated transparency

markets worked in good times and bad. what i'm concerned about, it's very easy to apply more regulation to the already regulated markets. and what i keep saying, my last trip to washington was two weeks ago, we already know what we're doing. our markets are regulated. they're very transparent. we know that they work in markets that are very volatile. we don't need a lot more regulation in those markets. shouldn't we be focusing on alst all of our regulatory efforts on opaque markets. that have grown to be quite sizable in this market. i think that's what mr. geithner keeps trying to do. >> you have such a great savvy in terms of how the markets feel. what do u think? we're looking at such momentum. the market up 40%, even better when you look at certain sectors. do you think this continues? >> first of all, thanks for the compliment. . don't know if it's true.

but i'm always taking compliments. i have said, all summer, i kept waiting for some kind of a pullback. because i thought we went up too quickly. financials are up again. markets feel pretty firm. right? so, you can't argue with the tape. >> it's hard to bet against the tape. >> you have jeans on. i never see you jeans. it's gap day. >> consistent with what we're trying to do with a lot of companies. we're looking for co-branding. gap was having a huge campaign. around their 1969 jeans. we have everybody on the floor wearing jeans today. i extended it to the entire company. you're going to see us doing much more partnerships. >> thank you so much for joining us. duncan niederauer. we appreciate it. up next on "wall street journal" -- they managed billions in their mutual funds. one's a bull and the other is a little bit more cautious. we'll find out how they're investing today. anr y rescuing your retirement. making good decions even when

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tb stock market has climbed more than 40% since the lows of march, march #th was the low. is it too late to get in now? joining me now bill nygren of oakmark funds. also joining us, is steve romick, crescent fund. a morningstar five-star fund. welcome. >> thank you. >> thank you. >> do you think that valuation has become a concern steve, let's start with you?

>> when we look at where we have come from, with the market rising almost 50% from its low, a little hard to get excited now. now, with market up where itis, we look at it running the last 100-year average. divot to say anything better than fair value. >> it seems like easy money has been made. but do i want to sell right now. >> i don't know. we're not big traders. we look at where we are today and as long as we're comfortable with what we know, the price it currently stands over the next three, five years. >> bill, how does it feel to you? >> i say at oakmark, we're more bullish. there are two things, one i completely agree with him that p.e.s today are roughly 100-year

average. and i think what you're getting for free today as a value investor is the potential for any economy recovery. though that recovery may be slower, we think it's a question of when not if. the second thing i would say, though the market's up 50 per suspect from the bottom in march, we don't think that march bottom has any basis in fundamentals. >> yet the fundamentals seems to feel better. i don't know if that's reflection of the stock market being home. you hearing economists that the mood feels better. do you think that the economic cycle has turned, bill? >> well, one of the reasons the fundmentals got as bad as they did was because of fear and how low the market was and even very wealthy people started to panic about changes that we're going to be needed in their lifestyle. i think the very fact that the market has recovered, has done a

lot to alleviate that fear and that translate into the economy and better spending. >> the next question, how do you invest in this environment? bill, is it getting too late now to get into this market today in. >> at today's earnings levels, you're probably only paying a normal p.e. we think you get the recovery for free. second, is how much cash is on the sideline? we looked at a statistic on money market fund assets relatively to the s&p 500 market capital lags for 30 years that's bounced between 15 and 35%. it's got over 60% in march. it's still above 40%. lot of cash waiting for a better opportunity. usually the market doesn't accommodate that. >> steve, what about that? if that money comes into the market, tell me how to invest in

this environment? >> the sectors is our energy sector, we have a little bit more exposure to health care than we had in the past. we continue to like a number of distress debt investors, particularly the financial sector. >> what are the red flags that you watch that could reverse this situation? >> we got the government, borrowing hand over fist. about 42% of the public portion of that treasury debt outstanding. we believe over time, we're going to have to drive interest rates higher to continue track the treasury debt. >> bill, wrap it up here with your best picks. what sectors would you be investing in and what don't you like? >> as an valued investor. we tend what's most controversial and out of favor. top of the list today is health

care, media, financials, those are the names that people are most worried about. i think that's producing some of the best values in the market. on the other side, some of the very high cyclical names that have rallied strongly since march, we don't think they any longer give this kind of risk return benefit that they provided back in march. >> all right. we'll leave it there. gentlemen, good to have you on the program. we appreciate your time. >> thank you. >> thank you very much. bill nygren and steve romick. up next -- we're going to take a look at retirement. never too late to plan for retirement. we'll look at ways to make sure you money

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worry right now. my next guest promises there's always something you can redo. money manager julie jason th me. julie, great to have you on the program. >> great to be here. >> it's been a brutal year, let's face it. a couple of years for the economy. many people approaching the retirement age have lost so much wealth as they approach that important time of their lives. are the rules of retirement different today than they have been in the past. >> there are some things that have change more importantly, people can't buy stocks and bonds and be okay. what they have to do is do a little bit more planning, nalzizing and really look at what they're trying to accomplish. the most important thing one solution is not the same as another person's solution. what you do in the beginning, you start out with your own

personal cash flow. focusing on yourself and how much you're spending. how much is coming into your household and protecting your income stream and asset and let me read to you an e-m l from a viewer. she writes -- a couple of rental properties that provide monthly checks. these are things that i work at all the time. as i look at our finances and think about what kind of monthly plan. how do we create stream of incomes that are reliable? >> she's already on the right track. those streams of income are what she's doing right now. he sees doing the right thing. she's focusing on streams of income. how can you have additional stream of income? stocks that pay dividends. bonds that pay interests. there are products available in the market today that can be

considered. here's a rule of thumb, if you're a social security and your pension cover your essential expenses you may not need an additional eream of income. let's say you're a social security doesn't cover your essential expenses then you may need an additional income stream. you're creating your own pension by buying an annuity. there's a lot of confusion in the marketplaces as to what type of products create life long income. there are multiple products that look like they can do the job for you. >> what if you have not been good at budgets throughout your life, you get to the moment of retirement, what clear steps can you take to improve your situation as you approach retirement, during that

transition period, to make sure you're putting enough money away. >> let me tell you, the 20 years i have been working with retirees, no one likes to bublgt. it's difficult for baby boome r boomerers in particular to step aside extra money for retirement. i tell people, don't start budgeting today. look for ways where you can save a little bit more. look for ways to leverage of what you're doing today. one quick tip, if your employer provides you with a 401(k) plano take a look at your withholding allowances. a good chance that you may be able to participate in the 401(k) plans without lowering your paycheck. i go through how to do that in one of the chapters in the book. it's something that people aren't aware of. another tip, today, or this weekend, spend a half-hour or an

hour, going through this test, pretend you're going retire on monday and see how long your retirement will last. will it last 30 years? or a few days? if you do that exercise, it forces you to look at your cash flow, it forces you to look at your savings. and it opens some eyes. >> great advice. thank you so much. up next on the "wall street journal" report -- news this upcoming week that will have an impact on your money. all influenced by some of the world's most powerful women. see who tops the list when we come right back. i'm racing cross country in this small sidecar,

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check out our website wsjr.cnbc.com. now, a look at stories coming up in the week ahead that may move the markets and impact your money this week. you want to keep an eye. tuesday, the latest reading on the consumer confidence. that comes out from the conference board. and the latest s&p index for june. last month it showed the first increase in three years. also next week, wednesday, we get july durable good orders. an important indeck or the of

manufacturing activity. thursday, the first provision is due for the second quarter gross domestic product. on friday, personal income and spending for the month of july will be reported. we'll be watching that to get a look at the consumer sector. finally forbes magazine ranked the world's 100 most powerful this week. it was a great list. german chancellor angela merkel tops the list for the fourth ti time. she's leading in the polls for re-election next month. fdic chairman has argued for more products. the fdic has taken over 69 banks so far this year in a tough period. other names, first lady

michelle obama makes her first appearance on the list at number 40. and that will do it for us today. thank you so much for joining us. we'll see you next week and next week, electronic readers, growing up with a digital book. the kindle isn't the only one out there. we'll check out to others. have a great week, everybody. we'll see you again next weekend.

[ theme music ] ♪ >> tim: today's guests are two of the most recognizable figures in sports. they grew up together on the hill an italian section in st. louis. after world war ii both began catching in the major leagues.

one with the new york yankees and the others with the cardinals. remarkably, their fame increased after they playing days were over and there's hard to believe -- and that's hard to believe. they were good players. one is a hall of famer as a player and the other as a broadcaster. it's my great pleasure to welcome two of baseball's greatest ambassadors, yogi berra and joe garagiola. guys, i can't remember seeing you two guys together on camera. when was the last time you were together on a show? >> on a show -- >> i guess when you were doing tv. >> when i was doing tv, we were on it. but i was interviewing him and i guess his first communion. >> tim: joe and i have talked about you, yogi. i'm wearing a 1964 world series ring when you were with the cardinals and i was with the yankees and how unjust it was that you were fired after the world series. is that one of the biggest disappointments in your career?

>> i have to say -- yes, i did. i thought i was going to come back as manager. >> tim: joe said he thought you'd get a renewal. >> i did too. i did too. we won seven games. >> tim: sure. sure. >> it was disappointing, but i said well, that's the way this business is. they wanted to give me a job in the office. i said, no, i don't want the office. i said, i still want to be on the field. i said, i'll get a job somewhere. and george weiss called me from the mets and i went to the mets. over there to coach. it was home. >> tim: and then three years later you see the mets win the world championships. >> yeah. >> tim: of the things that happened in your career, you were one of god's chosen people. i mean, you have lived the golden life. think about that. >> i love the game. i love to play. i always said to the kids now