it is almost like windowdressing, how the window just your portfolio in a year where it has been so bipolarthink will happen, everybody just closes in on the benchmark. it is corporations, they do not know whether earnings are going to look like, so how do you invest in docs -- stocks? i do not think that the reversal is over. joe: you had this great chart recently showing the collective -- cumulative lows and passing management versus active management. it is not look like there has been bounced back for active management. is there any light at the end of the tunnel, or will active management diet is that die a slow death? do notlow markets, you want to be passive. i do not want to say it, because we are forecasting equities, but let's say that the market turns out, we will realize that active managers, the guys i do pick stocks have actually protected us. joe: so do you see some stars that are outperforming? wellthink those who did will see in flow, they will -- it takes a couple of things come active managers looking better than what they have done over the last several years. last year,

it is basically windowdressing.oe: all around the world, no sign is happening anywhere that inflation is happening. if you look at europe, japan, and obviously the u.s. atyou think will look back this time frame and start to tear up the textbooks and wonder what our the central bank actually has as far as stoking inflation? david: honestly, yes. all qe has done in the past five years is forced china to leverage up in a big way. now that china needs to go through the deleveraging goesss, what comes around around. china is now feeling the aftermath of five years of qe and now it will be a deflationary run. alix: lots more to come on china. up, china andg the fed face-off. what that means for volatility and the global market next. ♪ mark: the rain keeps pounding south carolina after days of flooding and at least nine people died in two states. walking is a category one storm with winds about 80 miles per hour. bermuda,oday, a past uprooting trees and knocking out power to thousands. the u.s. coast guard says a ship tha

valuation on the response of that hack, do you think this agreement is a real thing or is it just windowdressing a what should be done next? >> i think there's a commonality in my opening comments and as response to the first question and the response to the cyber question. we have an administration that continues to lead from behind. the president is taking the shift cyber security very seriously. it's going to define for generations our security policy, personal privacy issues, in fact it so serious that he is actually the head of this new cyber committee. in china. i met last month with the president china to talk about what they're doing. this agreement that was reached last week, time will tell what it is, doesn't do anything about opm. it doesn't address those issues at all. raise your your hands if you think the chinese have your fingerprints. exactly right. there is nothing publicly stated, either before the event or after the summit about opm. this agreement, this agreement, was a modest first step about economic and espionage, only time will tell about how much information were going t

and i know, because you have seen the same material i have, their minimal attacks on isil are windowdressing when it comes to what they're doing. they are beating the heck out of the sides opposition. that is what they have done. people will look at this and they will say, well yes the united states has all this might, but what are they doing in response to an attack on their friends that they have chosen to help. they have their warplanes stay 20 miles away. i suspect if you are in charge there, you would not let that happen. that is where we are with the situation, something has got to change. you guys are in charge of this, i charge of this, i don't know how you're going to do it, but something has to change. one of the proms we have, i think is the fact that there is probably, and i have to be careful how to say this because there has been at least some acknowledgment in some areas that the white house feels that their legal ground may be tenuous. i know, secretary patterson you said this is you can answer this question, i'm sure that's true, senator kane has been a real leader on this i