welcome to "wall street journal report" i'm maria bartiromooming to you this week from los angeles. could it just be the beginning? the man who says we might say 17,000 and soon. my conversation with the doctor who says if you are taking multi vitamins you are raising your risk of death. the golde statue translating to good money. the answer may surprise you. "wall street journal report" begins right now. this is america's mber one financial news program, "wall street journal rort." now, maria bartiromo. here is a look at what is making news. the markets are watching two key

numbers this ek, one encouraging and one not so. crude oil thit $108 mark this week mostly on concerns about rising tensions throughout the middle east translating into higher gasoline likely to increase as the summer driving season arrives. the other number to watch, dow $13,000. the dow touched that on tuesday and on friday. though it did close below it this week. existing home sales jumping more than 4% in january, the highest pace in two years. that is well below the 6 million homes that would be sold in a healthy hsing market. home depot and hewlett-packard beat expectations. kraft met estimates while walmart missed. if you have been thinking dow

13,000, stop thinking so small. that's what jeremy siegel says. >> happy to be here. >> we are talking about dow 13,000. you believe the odds are in favor of the dow hitting 15,000 over the next two years and there is a 50/50 chance of 17,000. >> right. 15,000 seems like a dream but trut of the matter is it would only mean another 7.5% this year and 7.5% in 2013 which aren't gigantic gains. so it's certain not o out of th question. in fact, i think as you meioned it is very possible that we are going to get to that 17,000 levevel by the enend of year. we get a lot of historical analysis. once you have had a bad five year period like we have had

before, the following two years tend to be very, very good with gains that have averaged almost 20% a year. so when we looked at all the different probabilities of what history and therere is a lot of history. we are going back 140 years, has told us i it seems like i wouldt call dow 15,000 a slam dunk but 70% of the time we will have reached that and 50% of the time we will have gotten as high a dow 17,000. >> let me ask you about this situation sort o of feeding on itself. do you think that 13,000 which we are at, does that bring retail investors back into the market? does this fee on itself? >> a little bit. whenever you cross a thousand there is a litittle news generated. we have passed 13,000 before. we have even papassed 14,000

actually. in a few points after 13,000 we will be double the low level that we hit in march, 2009. we are going to get the informationitu out to the publi. we have a different market than the lest couple of years. we have had more stability in the market, better dividends in the market. the majajor reason, maria is th i am bullish is not so much on historical patterns as important as they may be. why i'm bullish is because of the earnings and dividends that american companies are giving to their investors now and in relation to the extraordinary low interest rates which we are all d distressed about but it looks like tla in the cards for quite some time to lead for a very favorable valuation of the stock market. >> you know how people haveve bn

feeling. you have been bullish before. the last decade was pretty much a lost one for investors. what wentt wrong during the las decade? >> no question about it. what went wrong in the last decade, maria, was really very simple. in 2000 the u.s. stock market -- ozround the world, the u.s. stock market was selling at 30 times earnings. that was in the middle of ththe tech bubble, the enthusiasm. we got to a new millennium. that is much higher than we were in 1929 at the peak of speculation there. in fact, it is the highest we have ever been. you're not going to get good returns from a 30 price earnings ratio market. in factct, when you look back i it was t surprising we basically got 0 returns over that decade. look at where we are starting

now. we are at a 12 or a 13 price earnings ratio. that is below the long run average which is 15 and well below the long run average when you are in a low interest rate environment which is 18 or 19. so the reason whyit is going t o be different in the next fifiver ten years is very simple. you are starting out here with stocks at very cheap valuations in 2000, the most expensive valuations. >> that is a great point, remy. let me ask you real quick about the news of the week and the president coming out w with the tax proposal. you said you are disappointed with president obama's tax policy specifically with dividends and cap talgains. what is the issue? >> obama has always been for maintaining a break on dividends. when he campaigned in the last

presidential election,e didn't want to raise it from 15 to 20% but he never had talked about raising it all the way up to ordinary income tax rates. and the reason is very, very simple is that our system and we have the highest corporate tax rates in the world and within a smidgen. firms are not allowed to subtract d dividends. when they pay out dividends they are paying a profit tax and individuals are paying a tax on the eaearnings. and around the world almos every couny gives a break to dividends. and to suddenly take that away in a period where more than ever we investors, those baby boomers th are entering retirement need that dividend income more than ever to finally say, hey, guys, no more break on dividends. it just came out of the blue. i didn't hear any discussion

among democrats about that. i'm very, very disappointed. >> it is always nderful to have youou on the progm. thank you so much. >> thank you fo having me maria. we appreciate it professor jeremy siegel, a senior investment strategist at wisdom tree of which my husband is ceo. vitamin a a day may not keep the doctor away. the renowned physian whose advice may surprise you. and what it means to hollywood's bottom line. take a look at the stock market for the week. we'll beight back. [ male announcer ] the 2012 m-class continuaually monitors blind spots, scans the road to reveal potential threats, even helps awaken its driver if hbegins to doze. so in the blk of an eye it will have performed more active safety measuress than most t cars will in a lifetime.e.

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howthrough toughll coloeconomic times? freight rail. it attracted large companies, like vestas. we built four factories to make turbine blades, towers, and generators. creating over seventeen hundred jobs. then suppliers, stores, more companies followed, creating more jobs. economists call that the ripple effect. i call it the freight rail effect. freight rail connects every

corner of america, bringing jobs and economic growth along for the ride. visit freightrailworks.org. what if you went for a checkup and your doctor told you everything you knew w about heah and science was wrong? that is the description of my next est, dr. david agus, the author of "the end of illnesess. you spent your career as an oncology. you worked witith steve jobs an senator kennedy. what has your experience abouou weather the disease of cancer told you about health? >> i have seen patients and have to say drugs aren't going to work. it has pushed me to prevention.

one of the big aspects of the book is how to prevent the disease. >> tell me about that. what is the most important thing that we need to know in terms of prevtion? diet and exercise i wantt t to . >> you want to know yourself. one of the key things of the book is know your own metrics, get yourwn lab. go into y your doctor with all your infortion. when you go to your doctor he or she will check your blood pressure when you are there. what about at ght en you go to bed? i want all of your data. and then there are things like stattens. it is important. if you have a normal cholesterol anand you go in on a statten yo reduce the incidents of cancer by 30 or 40%. i want peopl to focus on things peop can prevent. >> we talked about taking aspirin every day. why? because it thins your blood?

it things your blood and blocks inflammation. one aspirin a day will reduce colon cancer by double digit percentages. you can get a statten at walmart for $10 for a 90 day supply. aspirin for a year is 3 # or $4. these are not expensive prescriptions. >> this is unbelievable. why isn't this more wide spread? >> i don't get it. health care and food are 31% of gdp in this country yet no candidate is talking about itit. a third of our economy and i don't hear it talk about. i hear health care finance talked aboutut but not health care. >> l let me ask you about vit s vitamins. you say 90% of things is not beneficial liktaking vitamins and working out in the morning. you asked who takes vitamins in

the room and i raised my hand. you said i was raisic my risk of? >> you are r raising your risk disease. none of them had a benefit. many of the sdies actually have a decrement. if a man takes vitamin e a day for three years his risk of proste cancer, the most common nonskin cancer is up 17%. there was a beautiful studyy published this year that if wowomen take vitamins or iron their risk of death is slightly higher. i look at these and say no benefit at all. clearly pitive major negative here. whyy are people doing it? > i don't understand why. first of all it scares me that vitamins are not regulated by the fda. why is it that if i'm taking a multi vitamin why am i hurtitin myself? >> you are a complex system. if you take one thing into you

it changes the rest of you. it changes you in a direction either for health or against health. in this case we did ten year studies with tens of thousands of people showiwing no benefit. >> what is the most important thing we can do today to improve our sustainable health that doesn't cost much? >> the simple thing regularity and schedule. ifou have lunch at noon and tomorrow 2:00. when that happens the body conserves energy. thatdata is profound. when you get up and go to bed and eat make it regular. it is the regulularity part. the person who randomly grabs an apple hurtthemselves. >> i'm still blown away by the vitamin thing. your ideas have raised some

controversy saying otherwise healthy people may take your advice too far and demand testing. how do y defend that? what do you say in terms of cost and care? >> i don't tell anybody to do anything. i say have the conversations with your doctor. i want to prevent disease. we know if smokers get body cts and you find cancer early you save lives. i want if the technology is not good let's develop better technology. i want the emphasis on a problem and solution skpb not putting it under the covers. i want to movove forward. >> thank you so much. up next on "wall street journal report," is all that glitters gold when it comes to the oscars. the oscars. we'll find we've got to protect e environment. the economists make some good points. need safer r energy. [announcer:] who's right? th all are.

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part off my recent convsation on this program on the oscar nominated film,m, the artist. what kind of impact can an oscar have on the bottom line. joining us is paul dergrabedian. thanks for joining s. >> great being here. >> you have interesting statistics on how much an osca nomination is worth to a film. how about aactual victory? how much can it help the bottom line? >> it definitely can help. we talked about the oscar boost. it is more of an oscar nominatition boost because duri the time of the nominations and telecast the studio kz make hey out of the fact that the movie has been nominated. once the movie wins by that time the movies have been in the

market place thrhree months or more and are pretty much played out. i think where the oscar win helps is wn the line, television sales, vod rights. when your film is an osc winner for best pictcture it ad to the value of that product. >> after an oscar win you are getting more business and the numbers add up. how about the individual actors? are mo nominees in thehe earning stratosphere already? >> it can definitely help an actor, no question. if he were to win that definitely would raise his price quote becau now he would be an oscar winner. you will notice, too, in a lot of marketing for films it would say academy award winning actor

so and so or academy awardd nominee raises the profile. however, we have heard oftentimes about the oscar curse. some actors after they win the oscar their career doesn't go anywhere. i don't want t to see that ppen to anyone in the future. it is definitely never a bad ththing, i think, to win an osc. >> sure. what are the trends thisis year? what are you expecting? >> i'm looking at "the artist" as a film that c do quite well at t the oscars. of cour, "the help" and "the descendants", these films are not doing that well at the box offifice. they are not getting that huge oscar bump that we normally see. in fact, if you add up the total at this point of the nine best

picture nominees it is about $595 million. if you take last year's best picture nominees, there were ten of them last year to be fair, they add u up to $1.3 billion a this point so more than double the box office for the crop of best picture last year than this year simply because there is not a big giant "avatar" hit or with "kingspeech" winning had "toy ststory 3" and "inception" wit 293. this year we just don't have that. >> what kind of politics goines into all of this? are there politics? the studios trying to influence the nominations and voting? >> they put adds i in trade pas online to really not only boost their movie but also in the

actors. they will really highlight the fact that let's say meryl streep is nominatedor "iron lady" they spend millions of dollars trying to beef up the oscars. >> who do you think wins? >> i got to say i think for picturure i'm going to go with "the artist." for actor it is close for george clooney. merylstreep, s she has won so many academy awards but viola davis i think can win that one. >> she was terrific. >> "the help" the highest grossing with aboutt $170 millin domestically. there is great acting in at movie. the bottom line is for hollywood

it is never a bad thing to get an oscar nomination. >> great to have you on the program. thank you so much. >> thank you. >> enjoy the show. we'll see you soon. paul dergrabedian joining us. we'll see what is comg up that will have an impact on your ney. if dmonds are a girl's best friend this could have a lot of acquaintances. some new members of the team will be introduced. the chairman emeritus wi distribute his usual wdom. and you? welell, you're the chief life officer. you just need the right professional to help p you take charge. ♪ sadly, no. oh. but i did d pick up your dry cleaning and had your sho shined. well, i made you a reservion at the sushi place around the corner. well, in that case, better get back to these invoices...

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wsjr.cnbc.com. a look at the stories coming up in the week ahead that may impact your money. we have two important indicators of whether the housing market is recovering this week. on monday we get data on pending home sales. and on tuesday the home price index will be out. on wednesday the reading of the gross domestic product comes out. also on wednesday federal reserve chair man ben bernanke will deliver the report. on thursday auto sales for the month of febebruary and that cod be impactful for the auto stock. it may be tooig to wear on your finger but it is an amazing sight. an australian pink diamond measuring in at 12.6 karats was found in mining giant argyle

mine. pink diamonds are one of the most valuable jewels inn the world.d. this one is worth around $12 million. pretty gorgeous there. that will do it for us. thank you so muchfor joining me. next week my guest speaks about simmering tension in the middle east. have a great week everybody. i'll see you again nexweekend.