so that's going to take down the whole eem. the u.s. with a little more in the correction will be the cheapest, safest market in the world, period. >> i like the idea of looking for an entry point on the eem. i think it's already been discounted so much that there is a good entry point but ford is a name mike santoli brought up very similar to bank of america. it's a company on track. it's a company expanding over in china. they've been doing a great job leading this company. i think you have a 10% pull back in ford. great opportunity to buy the dividends almost up to 3%. >> i want to fight this out a little bit. you're shaking your head, doc, on the notion that looking at a good entry point in the emerging market etf. emerging markets have been down for at least five weeks. at some point, weiss, don't you think they're going to be a buy? >> sure. that's why i sold out the puts. i rode this thing down. i'm not going to say i bought -- sold the top or bought the bottom, but i'm saying you had a panic in this one. that was a 15% move out

the level on the eem is very good support. the eem to me is not buying the emerging markets.esia, look at parts of brazil. look at ambev, you still see growth, volumes growing. this is a place you stay in the medium term. >> i feel it's a street fight brewing. >> back itself up. >> you only have 45 seconds, dude. >> all i can say is in the actual emerging markets, when you look at that eem, the trade, this has broken. it broke that 39 level. now it's towards this 36.5 level. it got down to 36. it bounced today. i am telling you right now the way they're attacking this thing. another 570 puts in there today. that's telling me a lot of the perceptions. >> he could be right in indonesia and eem trade. >> the low, don't touch me. it's something that we have to respect. it has bounced off of. i can talk to you any time i watch. >> i'm watching you. >> we should just move on, trust me. >> finally, a big announcement from microsoft, sending both stocks higher. we will have the latest in san jose, hey, john. >> we knew this was going to be a big partnership between microsoft and orac

that was very evident by the eem down. the interesting trade to me is the dollar which has shown relative strength a couple months ago and really got nailed. to me i think as our rates are going higher whether you like it or not, they did today even though he said he's not tapering right now i think the dollar benefits in this environment over the next few months. >> my actual apprehension last week was it was going to be a sell to news event. how long does it last though. i've been waiting to buy google which has been bulletproof when it comes to the marketplace. i'm hoping for a little bit more weakness tomorrow to buy some names that definitely have been bulletproof. >> you think that the bulletproof names will be immune to a deeper selloff? >> more so than the overall market. everything is going to take market which takes the least of the impact. >> i thought it was spot on. i think again people are trying to get ahead of the fed here. from what i heard and from what he said, these are going to be thresholds. it's not

i sold off almost all of my eem today. pete is still in there long and strong. i don't have the fortitude to stick with it like this kid. as karen said, one of the testifiest trades is the one you have to make. that's when you have to close your eyes and get out of your puts because they exploded today. whether it was puts on eem or puts on the vix, i sold a lot of uvxy. >> i'm annoyed by karen. you want to turn the tv on, open up the financial press, you're going to have people telling you to buy every dip. for the last four years we have had draw downs of ten percent. a lot of people do what they see on tv or what read or whatever. i'm not in the business of picking out long term -- >> you said if you have done that for four years you would have done very well to buy the dip for the last four years. all of a sudden you're 100% certain what the market is going to do. >> i am not right for two days. let me tell you something. people like to buy tops because people are really bullish at the tops. >> you don't know anybody that's really bullish right now. >> all o

. >> eem, have you noticed the death cross on that? >> a lot of crosses, a lot of death. >> sounds dismal. meantime, with stocks up 14% and volatility apparently here to stay, is there any big upside for the rest of the year? jason pride manages over $20 billion at glen meade. always good to see you. welcome to the halftime report. >> thanks for having me. >> how are you preparing for the summer? if this is a preview, it's a pretty whippy day today. >> we keep asking ourselves can goldilocks keep running and adding on kind of a mix of nursery rimes here is whether the fed is the big bad wolf. the situation that we have is one where the economy is not too hot, not too cold, everything feels great. markets are up 14%. people are feeling more willing to spend. everything seems good but then you look at it and you recognize that a lot of this is stimulus driven. a lot of it is driven by the net worth number, not by consumers making more money. things are getting better but are they really 14% per year better? we kind of look at it and thin

they traded all the way out to september and the eem is down.the people who have been right continue to be right about the short trade. seems to me that somehow around 3890 or so is probably where this trade starts getting unwound. we'll see if they start taking profits. thus far they have added to profits instead of taking profits. i went to them and stayed with shorts. >> doc we're going to leave it there. the connection is shaky. thanks for calling in. meantime moving on economic growth slowing in china. while most investors in stocks are losing money, our next guest china fund is up 7% to date. pour foet yoe manager of the china capital fund. it was the highest returning china fund last year. >> thank you. >> consumer directions naers 24 energy, 27%. what's the overall theme when we look at your portfolio and your beliefs in the economy. >> there's a bull market in the private sector in china and that's where we focus. the economy is rebalancing. the private sector is driving growth increasingly. what we're seeing is the cost of capital for

i don't think that's the case in the market because of the fact take a look at the eem. yesterday we talked about the enormous put volume that's been going on over the last month or so. but specifically thursday and friday last week and then when you look at the financials, first area today that turned into the negative territory was the financials. it tells me right now that i don't think we're seeing that, a, let's buy the dip each and every time we get down there and look at the way the volatility index has skyrocketed over the last couple hours of trading. >> so your overall view of the market is trading? >> far more negative. i was a bull. we're seeing bank of america on the dips people buying options, citi, jpmorgan, we aren't seeing that same kind of activity. when you add the emerging markets and the volatility index. i think it's reason to set yourself back, look for opportunities but i'm not seeing them right now in the financials. >> doc? >> to that eem trade, obviously some very smart money over the last let's say week has been very aggressive. in fact, they

i mentioned the eem in the last half hour.ay in thailand, in the philippines, in india. now, ever since the second, third week really in may when mr. bernanke was giving his testimony and talked about the possibility of tapering off, all of these emerging markets have been under pressure because interest rates have been moving up so there's your key point. higher interest rates, hard on the emerging market and global economy overall. >> thanks very much. >>> uptown to the nasdaq where we have seema modi. >> making a little bit of a comeback. still down 22 points on the day. google a focus after announcing the acquisition of waze, an increasingly popular mobile app that allows you to share traffic and roadside information that helps users find the most efficient route to get from point "a" to point "b" and facebook shares in focus. ceo mark zuckerberg will be put in the hot seat. the compensation program is expected to be one of the topics discussed at that shareholder meeting. >> thanks, seema. >>> to the bond market and rick

raj eem badiaf is placed on administrative leave. city hall sources say batia serves on boards of a couple of non-profits, including one that has worked with his division of the public health department. he says he was not aware he was doing anything wrong. >>> chez panisse will officially reopen its doors to the public sometime this morning. the restaurant has been under construction for nearly four months after a fire damaged part of the interior earlier in march. last friday alice waters held a private fund-raising dinner for charity. it opens for lunch at 11:30 today. >> i wonder what they're serving today. at 4:33 breakfast is imminent. >> everybody should take the umbrella to work. good morning to you, jon and marla. good morning at home. i want to start with the temperatures just to show you how mild it is. we're quloes to 60 degrees or above 60 degrees about everyone r where. we're at 64 degrees in san jose with some rain showers coming our way. we'll have to wait for it down here. '61 in gilroy. 61 in beautiful santa cruz. w

. >> we were talking about all this paper in the eem. aid a lot of people firing back to me are you still as bearish as you were in the eem based upon the million puts being bought a week ago. these were smart trades we were talking about. they took a lot of money off the table. those huge traders took a lot of profits along the way. the final trade we saw this past week on monday, they actually sold the bottom. they got absolutely -- they hit bottom in these puts. they took the money off the table. they did roll down these huge trades. they bought 80,000 of the july 31 puts. why did they do that? they paid 25 cents. cheap shot to have something still in the game if the emergings are going to fall apart. >> look what the companies are saying. nike, china is slowing. accenture, blaming china. where are they pointing to positive growth? the u.s. >> what about the bond proxies? we will debate utilities as a sector later on. we've talked about health care. what about the staples? mike, do you like staples? >> not particularly. i don't think

. >> so the eemv is the etf attracts eem of volatility. >> it strips out a lot of the state-run companies a better way to invest in the truer emerging companies that you want to own. >> okay. >> this one's for guy. guy, what up. thanks 4 bringing back fast fridays. you're welcome. >> we talked about psx is going to trade its number, 66, it did that. and then pretty much all bets were off. if you want to trade from here, trade it down to 57 back in april. we made another retest of that recently. i think the stock made its move. i think now you just sort of flipping a coin. as long as that 57 is in place, you're okay. >> all right. and this one is for gosso. how will high fliers do in earnings? >> i think earnings are going to be challenged across the bard. linkedin has been a winner. i think high fliers are going to be the ones that get gouged when the market comes back in. so i would wait until mid to late july, even to start nibbling on these high fliers. >> here's the last one. who decides rosso's tie? >> easy, buddy. this is my daughter emily and maggie. now what, wise guy? >> is it st

when we went there, we were both in our black eem polos and we started talking to the owner and he said, oh, did you hear about the earthquake in turkey? well, we'd heard about it the way everybody heard about it, i think it got about two minutes on some of the cable news channels, and that was it. there wasn't a lot of coverage on the van earthquake. it just didn't hit the air waves that much. he said, oh, my family's there. and he started talking about the devastation and exactly what the impact was. they were friends with the mayor of van and the mayor had asked them because they were in san francisco if there was a way they could get san francisco to help them and he was trying to get a meeting with the mayor to express this concern and make a request. i said, well, interestingly enough, we could probably help you with that because we do have a bit of a connection with the mayor's office. but the first thing we need, we need a letter, we need something official. i mean, i'm just an old paramedic, i have to ask, right? within 24 hours we had a letter. and this was the first hint of w

good evening, i'm ken bastida sfwli eem elizabeth cook. the guy was fishing off pacifica state beach when his boat became the bait. he showed juliette goodrich what happened. >> he was in a kayak with his father-in-law not too far off the shore here when he says he came face to face with a great white. >> as i'm looking back trying to figure out what the [ bleep ] is going on, he came up straight underneath me like this. the whole kayak was probably lifted out of the water like that. as it grabbed ahold of me, it started shaking the boat front to back like this, and it wouldn't let go. i think its tooth may have got caught on my strap that's missing right here. >> micah flaneberg is describing his close encounter with a great white shark. he takes us through the ter fieing moments. >> probably the scariest part was when it let go because it swam back around, and i thought he was going to come take another bite like right where my legs were. >> about ten seconds of sheer terror although he says it felt so much longer. >> right from below me

around 8:00 this morning, 52-year-old hur ritz and 62-year-old eem mitts will begin the mile and a half swim. they have successfully completed that route 999 times. >> wow. huge congratulations. i hear the water is kind of cold. >> a little chilly. >> 99 problems and that cold water is one. a good looking day shaping up. temperatures are chilly to start. not too bad in places like sunnyvale. napa, 52 degrees, 53 in gilroy and santa cruz this morning 56 degrees to start the day. a lot of kids getting out for summer break as we head throughout this week. temperatures aren't going to be too hot for them as we head throughout today. if you want to get them outdoors, you have them at home with you torques day is a great day to do so. we'll see the low clouds until 10:00. mostly clear conditions over the greater bay area for the second half of the day. we'll see the sunshine return today. we're done with that humid air mass that really triggered those thunderstorms yesterday. we have quite a bit of lightning at this time yesterday. as we head through today, a more stable pattern shaping up, h

think the pain continues there, but i think it's a little too late at this point to try to short the eem. i think there's better ways to do it. what i would look is over to the uk. ewu is the etf for the uk. their banks have huge exposure to the emerging markets, particularly china. look at standard charter, those kind of names. ewu, you shorted here. stay away from em for right now. >> and finally consumer staples bucking the broader down trend and outperforming the market, ending the day up just under 1.5%. peg, pepsi, some of today's biggest winners. >> when everyone else was dumping everything else out, this was the favored group. it was dumped, traded for other names, and now when people get nervous, they go back to those staples and those names they want to feel comfortable, like a proctor, like a coke, like a phillips morris. they chase that yield and chase comfort. >>> next up, gold prices ending slightly higher on the day, but ending the week below that 1,300 an ounce. could 1,100 be the next stop? we're talking metals later. >>> and we did the math and came up with a couple of

. >> eem. emerging markets, i'm sure. >> that does it for us. power starts now. >> halftime is over. power lunch and the second half of the trading day start right now. >> this person comes running to me every day. he is here and he is one of wall street's best known traders. he's got a bull's eye on his back. redemptions falling. will the bottom fall out of his fund? and could steven cohen end up behind bars? >> once again it's all about the economy and we have full coverage of the number where the economy stands, the impact on stocks. >> volatility is very definitely back in fashion. now up almost 25%. >> these are massive moves in the foreign exchange markets. you very rarely see them. the ten-year is on the move as well. 2.0. 3%. gold rallying again today on the trading session. a lot of major stocks on the move as well. josh lipton has a lot of that on the floor. >> listen, it was a pretty quiet day this morning. then around noon eastern we really began to pick up speed to the downside. as you mentioned, traders saying you have to pay atten

er eem voting on the latter. >> steve, there is certainly people today in both camps. we have heard it all day here. the treasury prizes taking a hit here. we are here to talk about it. jeff, we will start with you and i want to put that question to you. at the beginning of the trading day as soon as that report came out we saw stocks come up but we also saw yields shoot out. >> that's where this move is selling in may of treasuries. that number had something for everyone. we're okay right now. so the lights are still on. there is another round of drinks being bought here. as we see it now, volatility will be suppressed. we don't like that. >> we hit 18 yesterday. we came down on the vix today. a lot of people saying the 4% pull back that we saw was not quite healthy enough. >> i think it can turn on a dime. i think we will see a technical continuation. >> tyler? >> all right. this is a movie that we know what the ending is going to be. did we learn today that the tapering is likely not to be sooner but maybe a little deeper. >> when you look at the jobs numbers which

san frnsisco, residents always eem to be happy. i lived there. i was. an hour south to get the number one city with the most satisfied workers, san jose, california. it's hard not to be hapy whe the biggt employers in the city are stanford university and google. bottom line, if you want to be happy at the job, move west or get elected to congress, i guess. still to come, tw crepts more an warning for grads and as well as om and dad. don't go away. every parent wants the safest and healthiest product for their family. that'shy i created the honest compapany. i was just a concerned mom, with a crazy dream. a wish that there was a company that i cld rely on, that did all of the hard work for me. i'm jessa alba, and the honest company was my dream. [ male announcer ] legalzoom has helped a million businesses successfully get started, incling jessica's. launch your dream at legalzoom today. call us. we're here to help. closing the deal, or just having fun tonight. you want a hotel room at an amazing price. toight. impossible? not anymore. download the free h

the emerging markets, huge rally back in the eem. should that have happened if the rest of the world was going crazy. >> stephanie link was pointing out withinon twitter what happened with that. >> it's the currency move. you also have to look to europe. we have keep our eye off of that for a while. what you saw today early this morning you had a big u.s. bank come in, sold a bunch of italian and spanish debt the u.s. dollar sold off, the yen sold off so that's a carry trade. once that firmed up the market took off and then all we had was the end of the day but that was gasoline on the fire. >> is america the best trade in the world. mike, i want to go to you because open hiemer was talking about a rotation from japan ease stocks and a rotation to u.s. stocks as a safety play a safe haven trade. would you agree with that? >> i think they should be rotating into cyclicals. the options markets are suggesting that that's going to be the case. that's what we should be expecting given what the bank of japan is up to. let's look at the u.s

that is once in a lifetime -- >> unless it's 1989. >> i'm talking about the eem.ling is if you believe in the future of emerging markets, by and large, you're still within that trading range. you're still volatile. >> have they not missed an opportunity? they have had ten years or at least five where people are worried about developing, they have had all this capital. what have they done for it? what do they have to show for themselves. >> indonesia is doing very well. the country overall is still improving. i think it's rather dramatically. the economy is growing. they have had a lot of political problems. if you believe in the value of holding a certain percentage of your portfolio, 10%, for example, in emerging markets, you're going to have to accept the volatility, and 25% moves up and down in the eem is typical. that happens -- that's been happening for the last three or four years. we've had stable markets relatively. bond funds are a little more controversial. my general feeling is go short-term bond funds rather than long term. >> some of this macrotourism

still, our options appear limited, and we, in this country, eems to be on particular defense of the guardsina because we are afraid they go elsewhere and not fund our debt. what do we do then short of that? >> well, that's the problem tht we've had because, like i said, this should not have reached the level where it's a crisis now. there's the sort of what they call track two disussions going on, mid level bureaucrats on both sides giving speeches about it, but, clearly, this is an issue where it's got to be separated from a lot of the other chia, u.s. relationship issues. doesn't talk much about the issue about, you know, the u.s. presence in asia, doesn't talk about the rel valuation, and this is an issue that stands alone on its own. we have to make them undehere af the road, even with cyber spionage. countries do that forever and forever they'll continue. that won't stop. when the theft of intelligence chewable property, then turned over to their nation's companies to compe against others in the world that that's out of bous. the next thing they have to is really understand hat they r

eem, this is a huge one. down another 1%. still no stability.change traded funds, vanguard, and this is the global real estate investment trust. you can see underperforming again. this has dramatically changed. global used to be the big outperformer. now it's flipped around. we've talked a lot about what people are going to look at in their statements in the quarter here. i just want to show you some of the declines we have seen. since the start of april, eem, this is the big emerging market etf, down 7%. bond, emerging market bonds down 3.5%. those are notable declines. if you look at the bond funds, and this is the one everybody owns here, total bonds down almost 2%. that's what you're yield are, high yield down 2%, corporate municipal, and inflation protected. all of them on the weak side. i think the bottom line is a lot of people are moving into shorter duration funds. quickly, let me show you the sjnk. high yield, short duration. it hasn't dropped nearly as w much. 6% yields. so people are trying to move towards the shorter duration. what

. >> eem. emerging markets, i'm sure. >> that does it for us.w. >> halftime is over. power lunch and the second half of the trading day start right now. >> this person comes running to me every day. he is here and he is one of wall street's best known traders. he's got a bull's eye on his back. redemptions falling. will the bottom fall out of his fund? and could steven cohen end up behind bars? >> once again it's all about the economy and we have full coverage of the number where the economy stands, the impact on

the etf of eem, of emerging markets is down over 5% for the week but it was up about 2% today.le were buying in. that's smart you say? >> i think so, yes. buy when various sectors are under pressure. david: okay. interest rates in general, let's talk about equities now. the cost of capital has gone, that is the bottom line what this means. it is going to cost more to borrow. companies that have to borrow a lot, i would assume, under this new environment are going to do less well than those companies that have a strong cash flow, correct? >> yeah. i think that's true. and particularly, if you look at for instance, small cap value stocks which are often, often paying dividend. they're not only, often have debt and so they're going to pay higher prices for their own debt but they're also, some of their valuation is being propped up because they're relatively high yielding vis-a-vis bond, if bonds go up. then that advantage dissipates. david: some companies will actually do better as a result of rising rates. tell us why and which ones specifically. >> well, i like the financial se

the eem, the dropping down, and over the week, japan hedged equities, down 4%. that thing is approaching 30% down in the last month. finally, you want some clear example of this battle going on between international investing and u.s. investing, look no more than reits. it's a monster. it's the main way people invest in real estate investment trust these days. it's down 0.8%. but vanguard has an international reit, mirror image that invests in reits overseas, down almost 3%. a good example of how people are fleeing the international markets, a lot more interest in the u.s. markets. maria, looking good outside today. back to you. >> all right, bob, thank you so much. we're looking at double-digit decline for the market. we have about 50 minutes before the closing bell. you can see it's down about 90 points on the dow jones industrials average. >> tebow mania, right? >> tebow mania, bill. he has a new home. i'll talk exclusively with robert kraft, the owner of the new england patriots, about his signing of the controversial quarterback, tim tebow. did he really do

bill and kelly, i've been asked about the eem and the emerging markets, and let's look at the three-yearive people advice on, this is very typical to have volatility in these kinds of etfs, and if you have a certain allocation to stocks outside the united states, like 10%, i would advise people to stay the course on this kind of volatility right now. it's just the nature of emerging markets. guys, back to you. >> yeah, a tough call on that one. still food for thought. bob, thanks very much. >> always. thank you. >>> if you're concerned about your mobile data security, how much would you pay to keep it safe? for sure, there's a new service that promises to keep your info top secret. we'll tell you how it works, how much it costs, coming up. >>> and how much is two seconds worth? it could be billions. up next, hear more about the story we've been covering exclusively today. market-moving data being accessed by some traders for a fee two seconds before public disclosure. and in the world of computer trading, that is an eternity. don't miss it, next on the "closing bell." all business purcha

emerging markets, the eem, and japan hedged equities, japanese stock market, the dxj, a big down week again. the hedged equities down almost 30% at this point. you want to see the battle between international and u.s. investing. i want to show you the reit business, because investing in reits was very, very hot. look at that for the week. the international version of that, the international real estate, it's down about 3%. the similar battle between domestic and international. could you beat restoration hardware? the numbers, first quarter up 38%. same-store sales up 41%. look at this stock. remember, the company only went public again back six, seven months ago. they had a secondary, just a short while ago, priced at $50 when the stock was 40. there's the move up. the stock's gone from $40 to $70 in about two months. for the week, they're all to the downside, but believe me, it was a lot worse about wednesday. there you go. the nasdaq with the worst decline, down 1.3%. maria, have a good weekend. >> all right, bob, you, too. have a good one. >>> certainly a wild week for the markets.

struggling to keep up with sell orders, as some investors are trying to get out of these things like the eem others, tell me why i shouldn't be concerned. >> i hear you. you have to understand the difference between what we're talking about from struggling to keep up with sell orders in the plumbing and the mechanism and the etf working properly. the fact of the matter is in that situation the etfs worked as they were supposed to work. from a regulatory and compliance perspective there are a lot of rules that bear their head in the environment in which we're in but ultimately that's one broker dealer who is unable to take any more redemption orders directly to the sponsor which is totally different than your individual investors going to the ex which i think and buying or selling etf on the open exchange and they're unaffected but those events because of the vast majority of players and one broker dealer or one bank doesn't make a difference in that scenario. >> if they're getting out of emerging market etfs and bond etfs, where is the flow? where are they going? >> great question. right now

the eem, a big one, we're down 10% since about may 22 nd i mean, that's a shockingly big decline, and the volume has been huge in the last two weeks, and the same with international bond funds. emerging bond etfs were very, very high in the second half of last year. here's the big one, and this is why. that's down about 11% in the last couple of weeks, so, unfortunately, a lot of people are heading for the door, and the question is this a better time to buy right now or should you simply stay out? a very tough call and it depends on how you feel about largely the global markets right now. finally, i just want to point out in the isn't this a great country story? take a look at gigamon, went public, this is a data analysis company, analyzes data for companies. the important thing is the average insider owns this stock and this company at 98 cents, mandy, and i talked to a whole bunch of them who were down here. do the math on this. suppose you had 1 million shares? a $26 profit. how well do you think you're looking and feeling right now. >> feeling pretty good. >> people crying down he

china, fxi, not hit as hard, down 3% and there's the eem, already a 10% correction in that one. that's down another 1.7% today. overall, the last two weeks, that's what i mean by cheap action. this is the s&p 500 in the last two weeks. i guess the bottom line here is we're pricing in some tapering, but we're also pricing in some fairly modest growth in the u.s. economy. i would rather see a little more growth, too, and i accept a little tapering on top of that. back to you, brian. >> just little tapering with dinner. bob pisani, thank you very much. >>> a very smart guy named scoring minor is up in a few minutes. he thinks the treasury market is acting a little bit like a ponzi scheme. his words, not mine. what do you think of that? >> well, first of all, it's a loaded word, so let me ask you. what do you define a ponzi scheme as. let's start there, brian. >> borrowing from one to pay for the next and the endless continuation of that until there's nobody left to take new money from and the whole thing collapses. >> okay. now that -- that does sound -- it sounds more like social

we're going to nick paton walsh in tax eem square. we have heard the protesters. we have got their message. we understand what they want. what are they saying to you? >> reporter: much more secular groups who have formed part of the demonstrations we've seen here over the weekend. christ tie and the live pictures involve further volleys of tear gas. it's been met with another substantial volley of tear gas. many of the questions they've been asking themselves is exactly how can our voices be heard in this particular position. we have a freedom of assembly and police tactics of this nature. are we being allowed our right to express ourselves in a democracy. as a payoff to that they have to keep some sort of functioning economy here in the very heart of istanbul. you can imagine how in many areas across the world they sit in protest and disrupt traffic and business won't be tolerated indefinitely. it's the sheer volume of tear gas, the heavy handedness of the police, the injuries reported. the tear gas rounds being fired in the dark towards protesters in front of me

emerging markets, so we will see, and mention the philippines down 3% this morning, and there is the eem markets etf, and that is the main one that people hold when they talk about the emerging markets, and that is a new low for the year. you are seeing the side effects of higher interest rates which is why i would say that we could use stability in interest rates for few days or weeks for a few days the sort it out. no big move out of bonds and inso stocks and we are talking about the great rotation, but let me tell you that wait until they get their second quarter numbers here. now i said that a couple of months ago, it will take a few quarters where investors get the quarterly statements to say, huh? s&p 500 up 3.8%, and my treasurely bond fund down 4.7%? good heavens, is that possible? well, if this is now the second quarter of losses and the long-term treasuries and the tlt has been down four quarters in a row, and when you see the corporate bond funds where there is a lot of money into down side, not a great rotation yet, but it is going to get people talking when they get their qu

eem, emerging market etf on the up side, in the stock sector it's been beaten up the most in the lastof weeks. last night markets open, why are we rallying strongly? japan's up, oversold conditions, maybe talk of buying more reits from the bank of japan. everybody said it's about bernanke. the feeling that mr. bernanke will do a lot to calm the markets down. speculation, he's fairly pleased, half a point increase in yields, maybe deflating a few asset bubbles that are out there. but it's a delicate moment. he's got to move very cautiously here because it goes too far, suddenly you're up at 3% in the ten-year. you don't want that happening. so the feeling is bernanke will try to be very chuting to the market, again, emphasize data dependency but perhaps push that more heavily. overall, another 4% correction. that's all we've had. at the very worst. s&p's only down 2.5%. yes, the philippines down 14%, emerging markets hit harder. here in the u.s., the decline has been fairly gentle. and a lot of people are starting to say, if bernanke handles it right the decline that we've seen, that's

it's the eem and this is the etf you can own here. this dropped 50% in 2008 during the big financial crisis but since then routinely it has moved in a 25% range on a yearly basis, and that's the key point. if you're comfortable with volatility, the answer is here it is. the important thing is we have been right about $38 for a number of years here so it's quite possible if you look at where you went in, you may not be down that much at all. you may have to be -- you may be comfortable with the fact that it's here despite the fact it's been down recently rather dramatically. if you have to get out in the next six months, well, we don't know. it could get a lot more volatile, may not. people ask me how do we know we're at a bottom? it's pretty simple here. number one, the key thing any trader looks for, things calm down, volatility just drops, and you don't get 2% and 3% moves every day. for several days. that's got to be the first thing. the second thing is you look in these funds for differentiation among countries. when all the fast