portfolio managers will struggle.e a portfolio manager today and you are managing money with fixed fees and you get paid whether or not you perform it is challenging to move to a performance structure. bei am investing, i ought to paying my portfolio manager only when they perform. be paying my portfolio manager only when they perform. the world is filled with people, portfolio managers who want to be paid for their performance and understand that if they do not perform, they may not get paid and that that is something they are willing to do. vonnie: you say the danger is that etf world and that there are too many active funds. you are going to have a --tially inactive instructor structure. >> one of the beauties about the revenue structure is that it limits capacity. if you are a manager and your incentives under a fixed fee structure is to gather as many assets as you can because that is how your compensation goes up, what happens is when you have more and more assets it is difficult to perform. what we see is a lac

if you mix up different sectors in your portfolio, at least five, you won't get wiped out.f it is such a no-brainer and every adviser and commentator has been telling people for years, why are so many people not diversified. it comes to the homework they end up with stocks that are frig frighteni frightening. you own variations of the same thing, they trade together that is what i call faux diversification. no matter how much i like the all stocks -- i say no to the portfolio to j and j, eli lilly, bristol-myers. they leave you too exposed to risk having an undiversified portfolio is a mistake if you concentrate all your bets in that one sector and that takes off, you beat everybody in that sector. get profile by every magazine and raise tons of capital. here is the bottom line. when you are an amateur or professional, you need to do your homework and keep your portfolio diversified. this is the routine exercise that protects you from monster losses down the line monster in south carolina. >> caller: i was wondering if i am a new investor, how many stocks should be in my po

and the portfolio here earned 5.51%. but if you had used the option strategy it would only earned 4.75%. so that's a 1% per year cost looking back over the last 10 years. this is not cheap and the impact is significant over a long period of time. if you have a crystal ball and you'd know exactly when to buy this protection you can obviously make money. but historically speaking most years this kind of a protection is worthless. so you're buying insurance and in most years you don't get a benefit from it. >> so then what you're really hoping for is knowing when the market is going to crash and can you buy it at the right time, say, 12 months before there's a significant correction. i mean, reasonable markets like this, what do you think? >> well, we've been talking about these strategies the last couple of years. and it's been reasonable to think that they might happen. they haven't happened yet. so it really is -- i don't know whether it's going to be -- whether we're going to see a 25% or 30%, 35% market decline next ye

we're kicking off a special series today called the ultimate portfol portfolio. all week we're showcasing the traders' five best ideas right now, stocks, etfs, whatever they think would comprise the ultimate portfolio and how to invest in a market that is near all-time highs stephanie link, you are up first. do you want to give me the names? >> cisco, eog, southwest air, goldman and united rentals. >> talk to me about why. the ultimate portfolio for somebody that professionally has 55 stocks. >> yeah. and i own all five of them i was trying to find some laggards but also trying to continue on with some winners. i'm looking for best in breed in each industry. that's kind of my style. if i can get best in breed on sale that's what i do. the one that's not on sale is cisco, but they sounded so good on their quarterly conference call, i think the momentum is so strong 7% product growth. they have had revenue beat three quarters in a row. they are executing in a wonderful way at this point. new products i.t. spending environment great. it's spending at 16 times forwar

jim and sarat unleash their ultimate portfolio >> tobacco and marijuana in there? it's all it is >> and next chapter for tesla up in smoke the halftime report starts now >> here to debate and trade tod today's biggest stories, we are joined by jim, steve, sarat, jon and schwan the chiefme investment officer t boston private wealth. today, stocks mixed. despite better than expected jobs report. nice rise in wages hardly great reaction on wall street jim, why >> first off, i think it was expected i think overall, the economic activity and profit numbers right now are not on people's minds. i think the bigger picture is trade with these potential china tariffs coming out then of course politics, which seems to be the gift that doesn't stop giving it seems like the market for whatever reason has decided to pay attention to things like the op-ed piece. >> you didn't mention the two words on a lot of people's minds today. fed fears. is this about the fed, shannon >> i think it is we're looking at september we know they'going to go in september. i think it offers an oppor

the person is further invested in the manager's long only portfolio. this extends the manager's opportunity set. so in the interest of time, i'll go through some examples very, very quickly. as bill described, long only investment strategies limit a manager's ability to express views about stocks. if you think about what managers do, it doesn't matter if they're fund amountal or quantitative value growth, small cap, international or domestic, all managers are seeking to identify companies that they believe will out perform. it doesn't matter what type of style or strategy, but have you to accept along the way that they're going to discover companies along the way that they believe are going to under perform, but in a long only context, the only way they can add alpha to an index is to under weight it or simply not to own it. but as bill described, the maximum weight that any one security represents in an index is tiny. and i would note here in the s&p 500, the individual weight of a stock is 20 basis points. in the global index that we use, the average

i spent a lot of time on the road talking to portfolio managers.o to the office and say have you heard about this corporate bond fund? are you using it in your portfolio? they say we are not because we just buy bonds. but i use it in my personal account. a lot of these folks were introduced to it on their personal accounts and then later they realized what putting looks like an equity in their bond portfolio was useful. scarlet: eric, you always call blackrock the apple of bond etf's. always cultivating the next hit. eric: so many gadgets coming out, what is your new favorite gadget coming out of your lab? >> hydb, high-yield defensive bond. we are taking factored in size and creating a portfolio of high yield bonds that we think has a better risk return profile. you can take a lot of things that active managers do anyway and tie them using a factor approach. scarlet: matt tucker, thank you. the etf industry has something for everyone, including those seeking vice over virtue. this week's etf highlights one, it profits when the house wins. game on,

-- portfolio positioned today before the event happens. now that i had given the gloom and doom part of the speech, we are a day period of great growth in the united states. the trump tax reform, giant adrenaline shot to the u.s. financial market, and corporate america. we have pushed growth up by at least 1% or 2%. we have proven unemployment almost to the boundaries, creating inflation on the back of business. we see for the first time in nine years some real meaningful growth for americans. the economy is running hot now. the trump policies, whether deregulation or tax reform, certainly pushing corporate america to go, go, go, go in terms of new plans of equipment, hiring people, so on and so forth. we probably have another 18 months to 24 months minimum in this cycle on the back of the adrenaline rush from trump's policies as he is really trying to reignite growth in america. mary is advocating a health check, you are advocating the tail risk to make long-term gains. let me give you a couple of swing thoughts as we pick individual comp

it comes to retirement investing and playing around with what i call your discretionary mad money portfolio. which is a big reason why i wrote "get rich carefully" to begin with if you don't own stocks directly you probably have some exposure, a 401(k) plan which is why i want to take a moment to talk about retirement to are those living in a cave for the last 20 years 401(k) plans are the main way to save offered by your employer and tax deferred vehicle including the i.r.a., wait, for those who are about to fall asleep or change the channel, because the whole idea of saving for retirement puts you to sleep. hear me out. you need to know this stuff. i will tell you some things you won't hear from the so-called experts. this show is different at this point it's pretty much become conventional wisdom you have to invest in your 401(k). that only an idiot would not contribute to a income plan. a lot of experts will tell you to max it out if you make enough to be feasible the maximum tends to go up from $17,500 to 18,000 and those come from pretax income however, i am not one of those people wh

at the same time, spending more money on a portfolio.says this is a structural shift and overall will have to rise, hurting shareholder return. one reason investors are skittish on the sector. who are the winners and who are behind the capex curve? with eldarcaught up saetre. they changed their name from statoil to equinor. in part to reflect trends in the shipping and oil market. eldar: we do oil and gas production and we will continue to do that for decades because that will be an important part of the energy base. we want to do that in a sustainable manner as much as we can. that is part of it. there is also a longer-term transition, which means alternative energy. gas: many are saying oil or can get you a better return. what kind of products can get you ir? eldar: the risk is likely different than the oil and gas industry, it is a risk and reward. you need to reflect in a good way and the kind of projects we are pursuing our industrial projects. we are an industrial company. that takes us firsthand to offshore wind, which is in line

in the portfolio of -- >> order. [shouting] >> we don't seem to have much of an interest -- >> order. >> -- from those opposite. can i just say that in relation to the pacific, this government is -- >> order. point of order? >> diminishes been asked to explain what the point of the prime minister is and she's avoiding the question. [shouting] >> explain why the prime minister should -- [shouting] >> senator, point of order. >> on the point of order, labor as kind of political questions and ministers on this side of providing a proper policy-based answer. of course senator -- an outstanding job in being directly relevant to a political question. >> order, order. order. order. everyone, everyone in the chamber, you will be a long question time if it is noisy. on the point of order, senator, if question of such a broad nature are asked, it is entirely within order for a minister to address -- senator mcconnell, can people please not yell while unruly on the point of order? senator, please. i'm really on the point of ord

listen i didn't have an energy name in the portfolio. just think energy is a sideways pattern >> obviously, these guys have an overweight if they downgraded. fortunately for them, they've been wrong the stocks have all gone down. you now that they've gone down, the price ever oil is higher it's a tough call to make right here when they've come down 15%. >> would you own either of these names? >> no but we're overweight -- we don't own anything of these, we own a oil service in phillips 66 i don't think they're a bad place to be. >> and that's a good stock, too. >> what they're saying an adarko's cash flow exceeds that. and i think think he's ration rationali rationalizing. i don't mind analysts going in a hole >> shares of mgm falling more than 20% over the past six months traders are betting it might be a winning trade soon jon and pete tracking the options on the desk here >> maybe not all that soon here's why, judge. you're right we could see a rebound the stock's at lowest levels since april 2017 so it's basically vapor united states

i love every brand in our portfolio. we have been very forthright with the investment community about being responsible managers with the investment portfolio. we want to create value for our investors. "best of bloomberg technology what about -- emily: what about banana republic? >> what we are doing is when it was at its best. we went through a tortured fashion phase especially for isen but banana at its core fabrics,trals, amazing incredible hand field and versatile pieces at a slightly higher price point. it is not a work brand but a life brand. as we have put product back in notstores, on trend but tortured fashion, we have seen the customer respond almost overnight. emily: when do you see banana back at its best? >>--is away something you are aiming toward but i expect to see a long run of banana continuing to grow and grow market share. i'm excited. its best isa is at an extraordinarily high quality, well made and fairly well priced alternative to contemporary brands. emily: i am all about its best i banana. that

but i love every brand and our portfolio.e have been very forthright with the investment community in what we are going to be responsible manager of a portfolio. do many things, not the least of which is to create value. emily: what about banana republic? the middle of a turnaround, what are you doing differently in what is working? re doinghat we' differently is what we have done when banana was that it best. we had a moment where we went into a bit of a tortured fashion phase for the women's products. and banana at its core, and this is from the holiday collection, flannel, the hand is beautiful, about at its core is neutrals, about amazing fabrics, incredible hand feel and versatile pieces at a slightly higher price point that are the foundation of a wardrobe. ork brand. w brand. life as we put product back in our stores, great fabrics, neutrals on trend but not tortured we've seen the customer response overnight. when do you see banana being back, two years, three years? something we are aiming towards an always something

they're fixed income portfolio fixed income portfolio probably has far to much credit risk and durationand it hasn't gone down, so why touch it? there is no money in cash. everybody around the world told you not to have cash. they would charge you if you had it. if you don't have cash for the liquidity and if you don't have that, you won't be able to take it vantage of the opportunity. >> nobody ever says we are about to have a crash tomorrow, so you need to think about portfolio position before the event happens. now that i have given this gloom and doom part of the speech, we are in a period of great growth in the united states. the tax reform was a giant adrenaline shot. we have pushed growth by up to at least 1% or 2%, we are creating inflation on the back of this for the first time in nine years. the economy is running hot. the trump policies, whether it is the regulation, certainly pushing corporate america to go in terms of new equipment, hiring people and so on and so forth. we probably have another 18 to 24 months minimum just on the adrenaline rush on trump's policies as he ha

the portfolio. our job is to do many things not just create value for our shareholders. emily: what about banana republic? you are in the middle of a turnaround there. what are you doing differently and what is working? art: what we are doing differently as what we have done when banana was at its best. we went through a tortured fashion phase, especially for women, but banana at its core is about neutrals, amazing fabrics, incredible hand feel and versatile pieces at a slightly higher price point. it is not a work brand but a life brand. as we have put product back in our stores, great fabrics, neutrals, on trend but not tortured fashion, we have seen the customer respond almost overnight. emily: when do you see banana back at its best? two years, three years? i think best is always something you are aiming towards, it is always something you are going towards. but i expect to see a long run of banana continuing to grow and grow market share. i am really excited about it. what banana is at its best

we don't have any small hydro in our portfolios at this point. so what you see on the screen is our power content -- it the front of the power content label for the green service in 2017. and it identifies a customer's choices. you can stay with the pg&e service and receive 33% renewable. if you take cleanpowersf service, that bumps up 10% at 43% renewable, and our supergreen content is 100% renewable. and then, the backside gives more detail about where that energy's really coming from, what kind of technologies, and it compares it to the statewide resource mix. that's the extreme right column there. and you'll see here that our green content is 43% renewable and 57% hydroelectric, together providing our customers 100% greenhouse gas free service for -- in 2017. and then, of course, our supergreen product was also 100% greenhouse gas free, was also 100% eligible renewable. so these are products that really have some serious climate benefits, right? and last year, san francisco hosted the global climate action summit. the summit brought together,

this is high quality portfolio gional malls and that should persist in an environment where ers are choosey bout their locations. >> some say prolojis. >> they own about 750 million square feet ofarehouse space where it's been really boo you get a broad industrial portfolio of footage but a some is last touch and that should be good.hi >> fin your thought. >> and they also completed the a acquisition arge rival. so thatar should benefit holders as well. >> you're sticking with vacation homes. this was famously started by the black stone group. they bought o o a lot the homes under water and rented them out. is this still a viable business for you right now? w yep. we're still stickih this pick. intation owns 82,000 homes in fast growing markets in the united states. the are areas where house hold formation has out paced the national average but there hasn't beene enough of affordable housings been built. >> talk to me about interests raich are edging higher. how does that effect your picks as it continues to take awayod accoion? >> so the fed's raising rates because the economy's doing well

that's why i'm telling you own a diversified portfolio. as long as you own some industrials, today was just fine rotations are inevitable stocks don't go up in straight lines. in short, keep calm. carry on joe in new york, joe >> caller: jim, boo-yah. how you? >> boo-yah, joe. what's up? >> caller: so we actually melt a few months ago in florence, italy. i was finishing some gelato. i turned to my friend, that's definitely jim cramer and his wife we need to say hi. your wife took a great picture and i owe jim. let him know the next gelato is on me whether it's in italy or the hamptons next center. >> it was really nice. can i make it very clear, my wife and i love it when people come up. we're not like one of the people like hey, get away from me no, we have a show because of you. so thank you very much >> caller: well, thank you so down to business. i need to bring up jd.com. it's a two-year low. the ceo was arrested for very serious allegations of misconduct now law firms are moving in on an investigation regarding the company releasing

this government and can i focus on what is happening in my portfolio and what is happening in the -- because -- because we don't -- we don't -- seem to have much of an interest. >> order, order on my left. >> interest in those from those on the left. can i just say in relation to the pacific, this government is very -- >> order. point of order. >> point of order, direct real are advance. to inister has been asked explain what the point of the prime minister is and she is avoiding the question. >> comment on the-pound of order. >> labor as they so often do asked a highly political question and of course the ministers on this side, as they always do, are providing a proper policy-based answer. and of course the senator is doing an outstanding job in being directly relevant to a political question. >> order. order. order. everyone in the chamber, it will be a very listening question time if it's this noisy. othen point of order, senator, if questions of such a broad nature relating to government it entirely within order if -- can people please not yell while i'm ruling on the point of o

but it's a great time to find bargains if you look at our model portfolio, you see stocks in turkey,ina, places where a lot of people would fear to tread. our experience over the many years since we've been in emerging markets, you go in if things look bad if companies in which you're investing are solid, have good balance sheets and earning good profits >> talking about things looking bad, i have to pick up on some comments from president erdogan saying we will see the result of central bank independence after this rate hike he says in 50 years inflation was never in line with central bank targets he says the sudden rise in the lira was an economic assassination attempt. and he says he has faced heinous economic attack against our country after a series of statements quite strong words out of the president there. he doesn't seem to think the devaluation in the lira is domestically driven by rather international hands at play here always the case with emerging markets. turkey is an interesting one talking about this specifically, the central bank hiking yesterday 625 basis points, do

what does it mean for your portfolio? steve grasso is over at the plaza with the more you know steve. >> this is the way it looks right now. you have technology and you have consumer discretionary you used to have this telcom index. this is what is in there right now, not real sexy how is it going to change? all of these companies will get to pick to see who they want in here they have already done that. this is what it looks like now so you've got alphabet, you've got facebook, which is coming over here. activision blizzard, electronic arts not only are they going to grab all these names but they're going to grab your traditional media stocks here as well, so cbs, disney comes over and now this is what the major shakeup is netflix is going to be over here as well. you have alphabet, you have netflix, you have all these growthy names. this sort of gives you your tech base here. now, what does technology look like after we leave it apple goes from basically a 15 weighting to a 20% weighting in the consumer discretionary, a

we have been adding areas like that in the portfolio. we have yields up high for the year. obviously the peso has rallied a lot since nafta talks. it seems to have stabilized. an attractive yield. if you look at the hungarian yield curve, it is very steep. those yields should be anchored somewhat to what the ecb is doing. as was mentioned, the ecb is doing quantitative tightening, but they are not raising rates anytime soon. that means there will be this zero-rate interest policy across europe. that will attract investors who are looking for yield. lisa: michael, one thing i am struck by is the yield investors are able to get from emerging markets relative to u.s. high-yield corporate bonds. it is quite substantial. it perhaps has to do with the high valuations in the u.s. where do you see the value between those? michael: i know we will get into corporate credit later in the show in general. but, we have been reducing exposure to corporate credit globally. u.s. high-yield, european high-yield, investment grade, credit globally, especially industrials, non-banks. emerging m

fisher investments tailors portfolios to your goals and needs.e only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions whether you do well or not. fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management. metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. and i treat my mbc with new everyday verzenio- the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- mbc, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women have significantly more time without disease progression, and more than half of women saw their tumors shrink vs an ai. diarrhea is common, may be severe, and may cause dehydration or infection. before ta

fisher investments tailors portfolios to your goals and needs.some only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions whether you do well or not. fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management. if you're waiting patiently for a liver transplant, it could cost you your life. it's time to get out of line with upmc. at upmc, living-donor transplants put you first. so you don't die waiting. upmc does more living-donor liver transplants than any other center in the nation. find out more and get out of line today. breathe right strips are designed to simply when nighttime nasal congestion closes in, open your nose right back up. ♪ breathe better. sleep better. breathe right. there is a chance that's the last time. 300 miles per hour, that's where i feel normal. i might be crazy but i'm not stupid. having an annuity

morgan chase, lloyds, selling out in multiple portfolios. is primarily looking at these opportunities now? cari: everybody is a seller. people might be using it for portfolio management. $500 billion in tail and funds funds, there are a lot of assets over 10 years old. robust,ket has become where people are using it, all investors in private capital to clean up the tail end, maybe they are without a manager and they want to get out of that. vonnie: is a competitive? cory talking about a rich market these days? cari: pricing is still small, investors investing, a small number of funds compared to others, where you can invest. when you are seeing is people are using the credit equity market to get out of investments and to get liquidity. vonnie: you yourself -- where are you looking, the interesting pockets? cari: we like the tail end market, natural resources, high-quality private equity funds. reinvested small buyout funds on the primary side. we are opportunistic across the entire secondary market. vonnie: you have mentioned china and latin

how can i help >> caller: i need a tech stop in my portfolio to remain diversified.o be honest, i am a little afraid to invest in. but i am thinking intel. any better thoughts? >> caller: intel doesn't have a ceo. there is a problematic situation. if you want a lower risk stock in that segment, i would gt they may be go-go for you. i like nvidia. tom in connecticut. >> caller: my wife and eye own teladoc health >> things are good, it is not the right time to buy it if you want to hold on to it, fine it is disrupting the entire doctor patient relationship in a positive way dustin in california. >> caller: mr. cramer, how are you? >> good. how about you? >> caller: mazor. >> medtronic got major much too cheap. i need to go to gary in florida. >> caller: hello, cramer well, when my father passed away recently in january, very high interest paid dividend stocks. and one i have been watching called etp energy transfer partners it looks like it is being taken over. >> it is a high risk well, it is merging with etp and it is a high risk situation. the balance sheet wasn't g

of our portfolio. think people are taking in account to this when you see things -- and signs like those three players it will be good far long time. >> we also got him to weigh in on the ongoing nfl anthem controversy. he paid a record price, $2.275 billion for the carolina panthers he got his first win this past weekend. this is one he cares deeply about and demonstrated he is not afraid by any mean to weigh into it publicly. >> did he mention trump by name with regard to the nfl controversy? i'm wondering how a big investor use views the president and someover his controversial takes whether it is on nfl or anything es what kind of sense did you get >> he didn't mention president trump by name but he didn't have to he made it awfully clear about who he was speaking about and the policy and stance that president trump has taken on this issue and tepper took it head on today and made it clear he wasn't afraid to do so. on the other issues and platform that the president has put forth let's say on trad

yes, it's in the portfolio the company is doing the spin. the strength of the company could be in the safety products and solutions division as well as the commercial space for airplanes. i think that you're seeing the spinoff happening at the perfect time for them where they're raising eps guidance they're seeing the segment staying with the business that are strength and there's really no alternative in terms of getting an allocation in the industrial space this type of sized market cap >> a quick check of the dow 30 right now. the dow up nearly 70 points, and it is being led today by ibm with that upgrade we told but just a short time ago. to tyler mathison now. he is in washington with what's coming up on "power lunch. i have a feeling he is there because of the fed >>> you are absolutely correct it is a much warmer washington and, man, it has gotten hot all of a sudden down here politically certainly. we're here for a special edition of "power lunch" two hours we'll talk about the fed, the decision on interest rates out at 2:00. at 2:30

managert to portfolio linda bakhshian. ray to have you on with us.d to imagine a scenario where the trade were between china in and the is resolved -- u.s. is resolved. linda: absolutely come of this market once to go higher. it is underpinned by strong fundamentals in the united states, strong productivity, efficiency improvement, consumer confidence is improving and earnings are improving. that is what is under the current improvement in the economy. if you dare to assume trade negotiations do go well, the markets could potentially move much higher from here. that level of optimism is not in your base assumption, is it? linda: not right now. that is probably because we have a lot of negotiations with different countries at the same time that i think we need to see resolved. i think canada is one likely to get resolved to soon and we will have resolution, at least a handshake, with europe. but china will be much more difficult. the china and u.s. are much further apart. china i do not believe has any incentive to solve negotiations, at least before

. >> as for his own portfolio, tepper says he is 25% exposed to the s&p 500, says the market is fairly valued. >>> so is tepper right or is there still more room to run? lisa erickson and also ron santo as well. we have a very good economy, low unemployment and the latest earnings reports. so the latest season very solid. i would have to think this is as good as it gets right now, don't you? >> we are cautiously optimistic for many of the reasons that you cite and as we look at it, both on the top down basis, things look very good in fact our dashboard of indicators would show that two-thirds of both coincident and leading economic indicators are still in positive territory. and as you know, corporate earnings are very good so there is reason to be comfortable with the u.s. equity market we are monitoring though as you are reporting many issues to monitor, whether it is where the tariff and trade issues go, whether it is some of the geopolitical risks ongoing so we believe that staying pat with where you are right now, but continuing to monitor and be cautious at some of those risks is

for special for our operation to have that portfolio in estonia.nfortunately we have not been really get our hands around what was going on there. it was there already in 2007 when we acquired the bank. .here were some alarms unfortunately they were not acted upon. alarms,ve been some some more serious than others. completely, difficult to toerstand this has been able be ongoing for such a long time without anyone bringing it to the attention of senior management. .> that was ole andersen thank you for your time. bankin copenhagen, danske release their internal report regarding this money laundering scandal. alix: thank you so much on what the future of the company will be. here is the future of the market, global bond yields on the rise, off the highs we have seen. the equities take it in stride. s&p futures flat. you are up .3% despite seeing sterling climbed higher. you had inflation beating estimates for august. in that asset class, let's take a look. take a look at the gilt market. yields up by two basis points in the u.k., unchanged in the u.

joining us is barry james, president and portfolio manager with james investment research.s good to see you,arry. welcome. >> great to be with you. >> let's get right to your cks. you're going basic materials for the first one and you like louisiana-pacific. why? >> well, just from the inflatiot dpoint, we finally hit the fed's target of 2% and we're seeing ls of businesses and the producers saying that prices are rising. so that should help out iner ti prices. they have a specialty product called oriented strand and it's d in all kinds of construction and furniture. the company is cheap and it'sea ask it has very good and growing earnings and the price has been in an uptrend and a pullback rently and tha makes it more attractive and hopefully it can hold up well if we get this inflation. >> i love it when you say oriented strand. >> let's go to basic materials, sticking to bake materials for $20. steeamics tiptoeing into the steel area. >> that's right. i know it may sound a little dull compared to all of the technology world, but it's really, really cheap and really makin

managers investment professionals have to have the come out spunk in their portfolio if it's in the dax that's an advantage and that lowers the cost of financing and if it doesn't have to be in the portfolio because it's not in the docks and it's a disadvantage in the commencement ceo's has not to be worried to today's developments said a hostile light on the german economy on the whole if you look at the five most of special companies in the u.s. you find relatively young names like amazon google apple topping the list but if you look at germany most of the top five founded before one thousand nine hundred eighty is german industry the german economy really ready for the change that seems to be coming. that's a big worry here in germany and it is a big discussion the chancellor was here at the stock market yesterday and she talked about digitalisation and so did the other speakers it's necessary to get more drive into that here in this country but you know it's hard to change horses in mid swing if you will because germany has been so successful in industry over the past centuries

they should make concentrated, high active shares of portfolios.oreigners --for out performers draw. everybody is waiting for godot with millennials. all the money. why are they appealing to them? they should try to appeal to the youth inside that would appeal to these issues and put their money where their mouth used to be. julie: thanks, eric. with the etf report with eric. vonnie: julie hyman, thank you for that. stay tuned. cannabis is booming. trouble for big tobacco? philip morris international's ceo is next. this is bloomberg. ♪ guy: 29 minutes off the hour. we are getting response to theresa may's statement delivered earlier from the eu. one eu officials saying the eu will not engage in a blame game on brexit. clearly, theresa may feeling slightly different a little earlier on, clearly a little annoyed at the response that she got in salzburg. the eu starting to come back with its response. let's get a first word news update. >> another deadline has come and gone with no agreement between the u.s. and canada. canadian foreign minister says

fisher investments tailors portfolios to your goals and needs.e only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions whether you do well or not. fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management. lou: president trump and deputy attorney general rod rosenstein talked today and agreed to reschedule their meeting. they were scheduled to meet today to talk about the "new york times" report in which rosenstein reportedly suggested wearing a wire to record the president to lay a foundation to invoke the 25th amendment. president trump said he didn't want to interfere with the kavanaugh hearings and that is the reason for the delay. house judiciary chairman bob goodlatte subpoenaed memoranda belonging to former fbi deputy director andrew mccabe who was fired for lying. this follows the "new york times" report claiming dep

most individuals do not do the same thing with their financial portfolio. they don't look at it.are probably way outsized, if they have them. their fixed income portfolio has far too much duration and too much credit risk, and it hasn't gone down, so why touch it? there is no money in cash, because everywhere around the world, and governments have told you not to have cash. as a matter of fact, they would charge if you had it. so you don't have any cash, so you don't have cash for the liquidity issues you might need, and if you don't have that, you will not have the dry powder to take advantage of the opportunities. >> nobody ever says we are about to have a crash tomorrow, so you need to think about portfolio position today before the event happens. now that i have given the gloom and doom part of the speech, we are in a period of great growth in the united states. the trump tax reform, giant adrenaline shot to the market and to corporate america. we have gone up by at least 1% or 2%, and we have driven unemployment almost to the boundaries. we are creating inflation on the back