an etf is a basket of stocks. how is this different than an etf? you just renamed them motif? >> a lot different u buy an etf it is a fund, a group basket. so when you buy an etf, buy shares in the etf company that happens to hold a basket of stocks. what we've done in this world, post a lot of things, i want to know what i'm investing in. the problem with mutual funds and etfs, you don't know what you're invested in. >> tend to list them. >> mutual funds quarterly disclose what they hold at a snapshot period, you don't know any time. you look on the screen, you don't know our mold, we have a ton of realtime fractional share trading. we give you a basket, it's your basket. take as little as two $50, put them across 30 stocks, what you're owning is .25 shares of am, you actually own it, whereas an etf, document. the advantage of our mold there are no ongoing fees, transparent, what you see is what you own, you can't do that with any of the other fund product, if you don't like what you see, you can change it. store, is about personalized investing. my wife and i, similar outloo

with the etf, you can press the easy button and buy shares in africa etf.s is there is only one that covers the whole continent. it is afk. its holdings are -- holdings are based on the weighting of the countries. nigeria and egypt have about 20%. you have kenya, morocco. the other 30% -- the u.k. and developed companies that derive revenue from africa. >> i was going to say -- do some of these countries have enough publicly traded companies? >> they do not. this solves the liquidity issue. there are liquidity constraints. you cannot make an etf out of something that does not have enough liquidity. this is sort of a backdoor way to do an etf. i think it is not simply a u.s. play. as those countries get bigger, it will switch over to capture those local stocks. >> you mentioned south africa is the largest portion of that, the biggest, most mature economy on the continent. though if you wanted to specialize and take on some of the africa growth, but not as much risk maybe, maybe you would look at a south africa etf? >> sure. the largest is the i share africa

>> this etf has been labeled as gimmick. stocks and companies headquartered in nashville. country music thing? >> a cost of doing business thing. a lot of companies go to national well they have low taxes, no income tax. a lot of companies that are over 100 million. what you saw the summer is this doubled up performance of the s&p. down to thecomes hospitals. hospitals had a great summer, up 25%. these are big weightings in the etf. this got juice from there. 40%. sector does well, the etf should follow. this is a gameplay. >> the tax implication of nashville, tennessee. i know our laughter, ronald ,eagan's chief economic advisor moved famously from california all of his businesses to tennessee and moved his entire family there as well. like the etf market is elvis buying local. you are only marketing to tennessee residents. i do not know why they don't play that more. got for use have you besides nash? >> we go halfway across the world to china. the deutsche china small cap etf which want up about 18%. the best-performing c

this is a uso etf. oil was down 3 1/2%. there's reasons that people talk about oversupply and we're talking about weakness in europe and china and economic data. it could be a demand issue, too. but the trade i want to do is a little, it's a little contrarian. the crude has been down 11% since the june highs when isis started to make inroads in iraq. now, i want to fade the complacency. i think it's way too complacent. i think things are going to continue to get worse over the next few months. i looked at the uso when it was 34.85 i bought a risk reversal. i really wanted to create a band where i would leverage the up side. but defining my risk to actually getting along on the down side. i used the january 15 risk reversal. i sold one of the jan 33 puts. i used that to buy the jan 37 call. between this band between 33 and 37 i have no profit or loss. i get long above 3p and long down 5% at 33. i like this band here because really what i'm doing is i'm selling that 33 put at the 5 the-week low. i don't think we'll have this

when you look at the etf's that track it, like the powershares water resources etf, this is about $1h is pretty big. it is a long-term play. >> what is in that portfolio? what about 66% industrial, which is a little shocking. in thesector is utilities space. about 18% utilities. these etf's are thing utilities for regulation, so let's go companies that have more profit and are working on newer innovations with water. that is what you are getting, large, made, and small. these etf's are mixed up with a lot of different companies across the board. going into one of the sectors in picking one or two tropes stocks, this one gives you about 30 stocks. and involve u.s. water treatment changes. >> i can understand why you would want to invest in water. i can understand why oil is correlated to the price of crude. but does a utility company, is the correlation of a utility company's stock have a correlation to the price of water? >> no, but as time goes on and water becomes more of a big deal -- the population is exploding -- governments will spend more on infrastructure to treat water and g

etf, simple way to play gold.ld, if you're not a pro and you're not managing a portfolio of individual stocks, then you shouldn't be fooling around with the trading etfs either. bottom line, at the end of the day, the cheap s&p 500 fund is the least bay way to possibly manage your money. better than the vast bulk of funds. it owns everything, the good, bad, and the ugly. and if you have the time, you can beat the performance of an index by picking stocks yourself which is the entire reason i do shh though every night. if you don't have the time though, then don't overthink it. just get a cheap s&p index fund. it's the best way to go. brendan in south carolina, brendan. >> hey jim, how you doing? i'm a big fan. appreciate everything you do. >> thank you, what's up? >> not much. i'm a young investor, 25, been investing for about a year. >> okay. >> i wanted your recommendation on, you know, the percentage break down of elections between the company's stock, mutual funds, blend investment, and bonds. >> i don't like

investor protecting high yield etfs. insight, pete can speak to this. inside in options markets looks at stock loan margaret. stock loan market suggesting a spike in terms what investors will pay to short the etfs. street sentiment is negative on high yield. one point i add, an important point, speck to etfs. watch them all the time. etf actually represents a basket. that basket is actually seeing buyers. s nibbling around, not specific. everyone's not pushing all money in but we're seeing people say the high yield products themselves are interesting. >> people running from. where are they hiding? >> europe, without a doubt. people are getting out of europe. from july to july, european, u.s. listed european focused etf froms 12ds billion to $43 billion in asset management's. $26 billion of that in flows. what we've seen over the last three weeks, $1 billion has come out of europe. a a bill out of europe, out of germany since mid-june. people are moving away from these european assets and i guess the next question, follow-up question, where would they be

are these large investors wasting money by choosing expensive etf's?ss is bloomberg's expert. really interesting. these guys seeing invest in that is pricier than it needs to be? >> i cannot help but look at this. most would look at where the investments are. when you look at the products, the emerging markets shares has a killer issue of 1.67%. when it first came out, that was fine. in the past five or six years, the costs have come down so much that a good liquid highly correlated emerging markets etf can run you 18 basis points. literally four times as cheap. >> we have to backup for a minute. what is the expense ratio comprised of? what is expensive and what is chief? >> that is what the take out per year. .67 is taken out of the nav every year. it inhibits returns. it has a bad effect. people want low fees. .67 is high for emerging markets etf these days. bridgewater owns about $3.5 billion. if they were to switch to emerging markets the charges 18 basis points -- versus .18. >why would they go for that over the other? >> it came out first and the

is this the right etf to help you follow strategies of billionaire investors?n president, brian jacobs. congratulations. it is so early to judge anything by the stock movement, just the past week. however, let's put up if we can a five-day chart what has happened to this etf. there was a pop on monday, a big spike, no, no. okay. there you can -- you can see it on monday. looks more dramatic if you look at one-day example. what happened there? why did it spike on monday? >> it was a bit of an anomaly. we had number of order put in right at the open. generally etf investors, they don't, they wait a little bit of these orders came right in. we were ringing opening bell on new york stock exchange. maybe somebody was a little overenthusiastic, put orders in, it spiked, immediately came back four or five minutes later. liz: talk about how you mimic what the billionaires are doing. >> right. the direction investment i-billionaire fund is strategy what we attempt to take, take some best idea of very wealthy, very successful investors and put them into an easy to use et

that etf will start trading next month.sely tracks the index includes the 30 largest companies in vietnam. you have a situation where most of the sought-after companies are maxed out when it comes to foreign investment. it is smaller for banks. of the most popular companies, foreign investors cannot get into that. the etf is a way for them to get exposure. it is proof that people do want the imam -- vietnam exposure. >> thanks. >> 10:40 at the moment. let's get you these images coming through. thailand expected to approve the appointment of the prime minister. these are the pictures coming through live at the moment out of bangkok. the approval has widely been predicted to go through without a hitch. what's -- zimbabwe's president is arriving in beijing today. our political editor is with us now. most of the world shuns him. xi jinpeng is welcoming him in beijing. china has traditionally had a politics approach to foreign policy. i do not think they are concerned with his human rights record. mugabe needs friends these days

>> the etf has attracted a lot of institutions.l funds by etf's as a way of quickly getting into the market. you have individuals, retirees, you have them buying it as a way to also get access to a relatively liquid market. the selling seems to be pretty broad base. -- based. or twos not just one institutions. >> do the analysts expect us to continue? >> it is unclear. seems like there will be a bounce back of some sort. a sense i'm getting from analysts is that people are not expecting a full return to the value am a where we were june 20 when the yield reached a record low. >> all right. lisa abramowicz, thanks so much. 26 minutes past the hour, bloomberg is "on the markets." julie hyman joins us again with the details. >> thank you. us take a look at where stocks are trading right now. we have not had a big move right now in today'session, despite that big move we had last week him of the biggest drop for major averages in about two years. nonetheless, we are sort of adding to the gains as the session goes on, with both the s&p

in some of the day's biggest trades we saw, bullish bets on eem and etf called the ewz. one trader making a pretty big wager that the brazilian market is heading up 20%. we saw a major trade in the eem. this trader is using options to effectively getting a long position going long. 1 million shares on this etf. talk about a bullish bet. some big money betting on big moves in the emerging markets space in the future. >> susan, thank you so much. will the bulls be right? carter has made his way to the smart board. >> there's a lot to look at. let's try to figure it out together. the first thing is the setup. emerging markets have not participated to the extent that the u.s. market has participated over the last five years. this is essentially a five year part juxtaposing s&p 500 with eem and obviously it's the spread that is quite incredible meaning we haven't had the lift that we've seen here in north america. so is the strength of the past couple months a foreshadowing of a bit of a catchup here? we think it is. let's look at some charts. standard one year chart. nice st

crude oil, it's down 5% for the month, and that move actually helped the retailers with the s&p retail etf blocking gains of just over 5%. today, though, a crude surge on oil concerns. what is the oil trade at this point and could today's gains mean it's time to ring the register on the retailers? where do you think oil's going to go directionally? >> i'll tell you what. it's held up, certainly, by this geopolitical end, and i don't see a really great solution to it. and the problem you have, really, you need to watch iraq in particular, because the kurds have their particular area. it's all about baghdad now. i think that geopolitical bid is going to stay in oil. i know people and i know the term structure saying, we're probably going to get down to 85ish. i'm not sure we get there. >> what is the bid we're talking about? you back that chart up to june, i mean, in june it was trading close to $106 a barrel. >> people have been talking about this bid in crude. and you thought it was going to stay there. so when you're saying this geopolitical bid, i'm with melissa here, but i think the rea

and the etfs having trouble. >> truthfully it's very hard to get a feel. there's so little participation. the volume rates are kind of middle of the road, but nothing dramatic in any sense, so what we're seeing to me is a continuation of fear, not panic, but fear in the marketplace, starting with the high-yield bond issue that's a few weeks ago. not to mention greenspan talking about the much-needed correction. i think the market participants had been used to seeing a correction in sector by sector. they were down 1%, 2%, what i find interesting, just coming in, the russell 20 on 00 seems to be a place that money may be going to work right now, while the large indices are continuing to see the pressure in a broad base. >> i would concentrate on the economic news. ism services numbers were terrific overall, right across the board, hiring, everything on that was good. yes, the fear is higher interest rates. if we get a spike in interest rates, that will hurt the market, but the economy is slowly getting better. >> high interest rates are an indication of hea

and that's just what dan tried to do with his bearish bet on etf.ght they were on shaky ground. >> i think it probably goes a bit lower. >> 100 shares costing $32. so, he bought the 31 put for $1. so, they have to fall below $30 by september expiration. but a buck just to bet against housing? let's do it for less. so, he sold the 31 put for 30 cents and created his put calendar. he made money making easier, and here's how. spent a dollar, and collected 30 cents. cutting it to just 70 cents. so, they need to go below $30.30 by september expiration. but it gets even better. he could turn time into money. but don't forget there's a tradeoff. he needs them to stay above $30.30 before expiration, and fall below after. so, it needs to drop further if he's going to make money. so, now, every "options action" fan wants to know, what will dan do now? >> well, such a sad face. now what? >> well, it worked out fantastically. the short dated put expired worthless. but a huge rally, some good housing data in the last week and a half. so, i hope you took the prof

there is wisdom tree earnings etf and s&p china etf and then finally there's a chindia etf a combination of both of them to take advantage of those valuations. david: larry, what has been over last couple days clearly has been concern that the fed will tighten sooner rather than later. talk about market corrections and rate hikes? because we do have historical precedent that perhaps some traders are trading on now. >> yeah, that is exactly right but if you look behind me the fed futures pit that is still implying that we won't see a hike until the mid different of june 2015. it is true that the odds have increased a little bit for increase in march to about 28 to 30% right now. that said, if you look over history, it seems that to indicate that corrections in the stock market are about five to 60 months before a meaningful rate hike. we do have to remember, this time is different. every time is different. will we have a rate hike? yes, we probably will but it will be for the exact right reasons and that the economy is healing. it is not going to be a rampant rate hike like we saw back in

you have a trade on the chinese etf. tencentthe etf of which is the largest holding.ish potential in the chinese market. the confluence of factors that are going to push the market higher, you have the market reforms by the government, foreign investors can now invest in chinese domestic shares as well as the chinese domestic investors who can invest in hong kong shares. devils advocate, we got members today out of china showing that industrial production slow. >> retail sales at 12%, where are you going to get that? there is renewed talk of more stimulus. >> what's the trade? $44.48 call.nuary risk-reward for a six-month tray. >> interesting to see how 10cent trades. thank you for joining us. "on the markets" in 30 minutes. "money clip" is coming up. ♪ >> welcome to "money clip," where we tie together the best stories, interview, and business news. the deal for a sports franchise is finally done, what is steve ballmer going to do? attention, shoppers, where are you? new numbers show that consumers are staying home and not spending. around the world, bank of england c

they'll sell the futures and bang them down and sell the etf's.an element of group thing. most managers tend to act like herd animals. think like on the discovery channel. causing them to blow out all at the same time. we saw it over and over again. this gets at an issue you must be aware of. the ideas of stocks as paper risks. all the things that can cause the stock to go down that have nothing to do with the you should lying company and everything to do with the way the asset class of stocks is traded. these have nothing to do with earnings or the fundamentals but have an enormous amount of control over where the stocks go. especially over those quick declines that we must be on the lookout. what kind of risks? let's say we're in a down-market. then you have to worry about the ability of short sellers to create fear and panic. it trumps the ability to instigate greed. with endless selling fire power, now this is new. it didn't always use to be like this. we used to have a securities and exchange commission that stopped things. one that helped yo

one trader making a pretty big wager the brazilian etf is headed up to $60 by january which would be 12% rally. meantime, we saw a major the trade in the eem, basically, using the options to go long a million shares on this popular etf. it's a bullish bet there. as you see, melissa, big money on big moves hopefully in the future. book to you. >> tanks so much. >>> so can the bulls be proven right? the chart master, carter, what do you see? >> sure, there's lots to look at. let's figure it out together. the first is the setup here. which is to say emerging parents have not participated to the extent the u.s. market has par tis pitted. here it is visually if you want to see it. this essentially is a five-84 chart, juxtaposeing subpoena 500 with the eem that is incredible. meaning we haven't seen the lift we have seen here in north america. is the spread the past couple months a bit of a foreshadowing? we think it is nice steady uptrend. tracking its line and no problems if you will. yeah, nice channel, if you will. here's the issue. we are right back to the top. do you break out here o

still keep in mind that this etf is down almost 20% on the year. it might be too soon to call it a come back yet. >> thank you very much. setting that up, what is the trader back in the states. how would you play the russian market? >> it's an interesting situation. russia obviously the rsx had a couple of interesting situations this year. if you go march with the crimea it sold off roughly 1%. after the tragic malaysian airlines crash you have roughly 10% come out. you had a little bit of rally here. the volatility increased. you would expect it to increase. part of the reason is the csx is moving more. we went from low 20s to high 20s. on the higher side we've seen. below average over the last five years. if you're interested in russia if you think there's potentially a rebound. one of the things i would consider is options. there are so many different moving parts right now in russia between the various sanctions. i'm more comfortable owning options. the strategy i like here. i was looking specifically out to the september 25 strike calls. i loo

the dia is the etf that tracks the dow 30. you can see it is up as well. we're solidly in the green with the s&p 500, and the qs, which tracks the nasdaq 100. in general we're up today pretty much across the board, and it has not been seven a great week, so we have a combined three quarters of a trillion dollars worth of advice from dan morris, global strategist, and the head of global mobile cease. gentlemen, welcome very much. thank you very much for joining us. dan, i'd like to start with you. does that influence your investment strategy, or perhaps even longer term. >> not necessarily these type tend to have a short-term impact on the market. so you certainly pay attention to them, you're conscious of it in terms of positions, but it doesn't change our outlook. >> wasif, what about you? >> same answer. we agree that gee on political event in the long run, really fundamentally strong assets. where are yew favorite places? i've heard a lot of people say they're favoring the big cap stocks. we like the u.s. generally. we think the performance with this se

number two, rise of etfs, easier now to trade indexings with the etfs without underlying stocks, hurtingverall because you just get volume in the etfs, not in the underlying stocks. low volatility reduced high frequency trading. low volatility means less profit opportunities for them. they are trading much less in the last several years, and finally, what i call reversion to the mean here. take a look at the volume at the nyse for ten years. back in the old days, 2004, january 2004, we did 2 billion shares a day on average in the month of january 2004. thanks to the move to electronic trading, by may of 2000, we went from 2 billion shares, then the financial crisis hit, the other factor, driving volume through the roof, 2008, 7 billion shares a day, and from there it dropped because the financial crisis abated. may 2011 3 .2 billion, and now back to 2004 volume. the point is this may be a secular decline that it was the move to lek tropic trading and high frequency trading and financial crisis creating a big move up, a bubble essentially in the volume, and we've moved back. what do you n

in general, we see a big shakeup in the etf landscape. last week, we saw a record inflows into the spider etf. i think that benefited more by really strong earnings. just in general, people are looking to put money to work right now. >> when you look around at groups that are more cyclical, more dependent on an economic recovery like energy, are we seeing more flows into groups like that? >> yes, consumer discretionary has seen a big uptick as well. if people have a little disposable income, they might buy the baghdad had their eye on for so long. that is definitely -- by that bag they have had their eye on for so long. that is definitely good. >> we will get retail earnings in the next couple of days. anything that might be using this energy investment? >> you have to look at what is going on in the middle east. people are fearful of rising tensions. push.ould energy prices up if you are looking to put gas in your car, that hurts you, but the people in the energy stocks benefit. >> we will see if we still see these patterns in a couple o

i like -- >> an etf. >> an etf.ween investing in china or biotech, give that to my son and say in 20 years i'm going to come back and visit this, i think i like biotech because it's going to solve a lot of problems for the entire world, versus china. it's going to be an economic engine, but i love biotech, but it's like making bets. when you try and figure out whooz going to win, who's going to lose, which trial's going to make it, all of a sudden, that becomes gambling and that is not a long-term strategy. >> but it's -- >> go ahead, jon. >> it's really complicated for me as a consumer to tell what's going on in biotech. i mean, technology, at least consumer technology to some degree is easier. you can look at the aisle, say i like this, i use this, i don't use that but biotech? some of these things we haven't seen come to market yet when they're moving stock, we're not going to see them for a long time, if ever. it's based on bets larger companies are making about smaller ones. how do you do it? >> well, i think t

that jnk etf, if that go the into the high 40s, i would sell it again. i don't think it's going to get there. i think the bubble is bursting there. >>> jim cramer says he likes industrials, the one stock he says will rise is dow chemical. jeff, do you like it? >> dow chemical, one year out 57%, a complex company, 58 billion in predicted sales. a lot of moving parts, but i do like it a boo-yah for cramer, because he's right. why is he right? dan loeb is putting a lot of pressure on, divesting. i have to explain it to iuorio. they'll be divesting. >> here why jeff and unfortunately jim is a little wrong, too. i hay to say jim is wrong, because i love jim, but i'll say it to jeff anytime. when the markets starts to correct, people sell what -- it's an outstanding company, but will trade with a high correlation. >> you can get it cheaper. i'm still right, sue. >> i'm going to give you each one. jeff, dividend stocks, because them now? >> the dividend stocks have been a great play, but the fed has pushed a lot of people into this. i think you have to be selec

the biggest etf for stocks out there. it's a huge one.s this week, looks like a single person, and that's big reason why we sold the outflows. i don't know why that happened but overall we're up fractionally for the week. back to you. >> bob, thank you. more importantly, the high-yield moves seem to be signalling the way stocks go lately so the question is whether there's more of a correction coming. let's ask david seaberg from cowan and company. great to have you back. hi there. listen, whether or not it's one person or a bunch of people selling out of a high-yield space, do we continue to take our cues for the equity markets? >> no, i really don't, kelly. we've talked about my long-term opinion of this. i think it depend on how you view the fed right now, going to depend whether or not you're buying this for the long term. i think all the geopolitical stuff and all that really, although it's impactful, is a lot of noise, you know, from the standpoint of having a real short-term or a long-term impact on this tape. >> so it's all about t

you have etfs here. i-shares, industrials and technology. the cycle of tech, where the big companies in the world put off buying a whole bunch of computers for their employees or servers, upgrading entire systems, are we done with that or is there more to come? is that why you believe in technology? >> you know, i do think there's more to come. in general, liz, as you noticed by those etfs, those are cyclically oriented sectors. i feel if the market will be rising here, cyclical names are probably going to be the best. i think there is more specifically in the tech space for capital expenditures going forward. david: chris, what are you listening for with the fed this week if. >> i'm listening yellen to echo traders are saying. interest rates are going to rise. things are too good right now. >> you think even though they would be suggesting to tight init up and raise rates, the market is accepting all of that? >> i think the market is accepting in that. we had, you know, all of sudden, turned to deflationary tendencies. that didn't scare a l

this is the biggest of the etfs out there. we're sitting at an 18-month high. browsening out is good. markets hitting lots of new highs, but on some of the lowest volume of the year. david kelly and federated investor -- steve ot both join us now. steve, let me start with you. a moment ago bob was saying the number one rally killer in his mind could be a rapid rise in interest rates. do you agree, or do you see it as something else? our guest yesterday said it would be a recession in the u.s. economy. >> no, i don't think it takes a resays, about a 3.5% rapid rise, i would agree with bob, would probably cause a correction in the rally, but we think that would be a huge buying opportunity if we go the it. by the way, we don't see that happening at all. even with all this good economic news today, the ten-year is being very well-behaved. even if it did, mandy, you know, we think or 2500 forecast on the s&p, which you've had out there for a couple years, we've got that based on a 4.5% ten-year. with the s&p at fair value, maybe 18 times at 4.5% on the ten-year. i

we've seen all of sudden, xlf, etf, breaking out to new all-time highs. a little short term perhaps overextended but specific stocks within that sector. charles schwab and wells fargo two names i like. strong price action, a lot of negative sentiment. they have a ways to go. adam: jo, keeping on with some of your picks, with regards to bond, do you prefer corporate bond? i thought anyone trying to make money in treasurys would be making at least analysts telling us, stay away from that. what are you saying? >> yeah. i think bonds still have aways to go. talk to analysts and economists into 2014, the general consensus that rates were going to go lower and, that just, i'm sorry that rates were going to go higher in 2014 and exactly opposite has happened. good example how the masses believe one way sometimes it pays to go to the opposite. i believe that trend remains in place especially relating to the european bonds. economics and economies over there having much more trouble than the united states economist. yet their rates are still lower than u.s. bond.

volume has been almost double what we normally see in the etfs. we'll keep you up-to-date.ovement in the brazilian i shares and stock market and the brazilian adr, scott, because of this news. >> markets volatile around any event relate wlad so ever to the election even back to the world cup and brazil's untimely loss. >> absolutely. a lot of people have been investing in the brazilian market because they saw it similar to what happened in india over the last year. that if you got a new candidate, that believed a new leader, more open to market solutions for an economy rather than socialists solutions, far better. we saw the indian market start to take off and over and over again in analysts reports you could see a reference to a modie moment within brazil. see if this situation, this tragic situation, changes that at all. >> all right. michelle, thanks so much. >>> king digital is getting candy crushed today. dom chu that the story. hey, dom. >> digital is plummeting after the social and mobile game kpip reduced tsd 20914 forecast amp reporting weaker than expected second

three of the biggest etf winner this month. what's coming up on "street signs" at the top of the hour. in a week, we're going to explain why volume does matter and why it should matter. also a further storeowner that gave away $1 million in furniture, all thanks to texas a&m's big win. how to invest in wine rather than just drinking it. last but not least, why brian says he is now moving to germany. all is revealed at the top of the hour. make sure you join us on "street signs." a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com cozy or cool? exactly the way you want it ... until boom, it's bedtime! your mattress is a battleground of thwarted desire. enter the sleep number bed. right now, all beds are on sale. he's the softy. his sleep

. >> so you should just, you can buy the etf, the spx etf and that will be fine and vanguard always had low fees and i like to give them credit. let's go to pat in michigan, please. pat? >> hi, jim. >> hi, pat. >> i'd like -- first off, i'd like to send a big boo-yah to you and your staff. >> thank you. >> okay. my question is i have a roth, and i'm looking to diversify into emerging markets. >> yeah. okay. i'm not a big fan of emerging markets because people tend to buy them high and they sell them low, but i am a fan of putting 10% of your money in a speculation, okay? emerging markets is a speculation that could qualify for the 10%, but that would be it it. you can't do any other speculating if you buy emerging markets. doubting thomas? a bit of skepticism is healthy, but there is such a thing as being too skeptical. don't let your fears eat your potential for profits and i'm here to let you learn from my mistakes. "mad money" will be right back. >>> don't miss a second of "mad money," follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an email to madmo

between motives, etf. >> we're going to see the cost go down dramatically. one of the reasons the motives do well is there are no ongoing fees. you can put as little as $200 or as much as $1 million. we talk about the compounding returns, now we're focussing on the compounding of costs. take that out. i think it's about transparency. what people don't realize when you invest in a mutual fund. you don't know what you own. there's a lot of trust. and the next generation, the millennial don't trust as much as the last generation did. >> thank you for coming in today. >>> up next we are on the money. is kaptd lymph the best tool to fight poverty. and why banks can help save the nation's poor. we have some businessmen with big ideas. >> nothing changes your life more than -- >> later the safest place to stash your cash and get the best return. new regulations you need to know about. bulldog: if you're like me, you've been working like a dog all year. but you don't need to camp out 'til labor day to reward yourself. mattress discounters labor day sale is on now! r

. >> it's a lot more expensive than my etf. >> which is? >> on wednesday i bought this from swab and putin won't be around forever. >> it's like watching crab grass grow. >> that's it for forbes on fox. thanks for watching. keep it here. the number one business block continues now with eric boll and cashin' in. >>> a smack down over ebola. pitting compassion against safety concerns and who wins could decide how costly this deadly outbreak is for you at home. plus listen up, your tidal wave may be crashing. forcing food stamp beneficiaries to work for their benefits is crashing across america. >> and now restaurant customers are seeing it firsthand. cashin' in firing up your weekend starts right now.

it was twice as good for the russian stocks so if you look at the rsx, the exchange traded fund, the etf that tracks the market, rose 2.5% today actually. options traded three times their average daily volume. now, much of that call buying centered on the august expiration suggesting traders see a move higher in the coming just short term, the next few weeks here. still, keep in mind, this is down 20% on the year so it might be too soon to call it a comeback just yet, guys. back to you. >> thank you. what's the back of this? how do you play the russian market? >> it's an interesting situation. ruch s russia, obviously, a couple interesting situations this year. beginning of march, crimea crisis, two weeks to bounce back. where are we now after the malaysia airline crash? 10% of the rsx came out. there was a rally here to chu's point, the volatility increased. you expected that. where are we in terms of volatility? low 20 s to high 20s. this is below average of what we've seen over five years. russia, the way i look at this is if you're interested in getting long russia, if you think ther

one company raise more than double what they expected with the ipo, the country's first domestic etf,ise millions. a relatively small market like vietnam, that is proof that investors do want in on vietnamese stocks. what is interesting in vietnam, of course, you have got a situation where many of the best companies, many of the larger companies, are maxed out when it comes to foreign investment. here, it it is a 49%, even lower for banks at 30%, so the etf is a way for investors to get some exposure to some of the most sought-after vietnamese stocks. >> thanks for joining us there. our bureau chief joining us there from the vietnamese capital. we are going to take a break, but ahead of that, i want to tell you it is a mixed bag when it comes to equities in this part of the world. investor action to jackson hole a bit muted. with the currency markets, we , anyseen the dollar higher elections in new zealand, and the man who is shaking the foundations. "on the move" returns, after this. ♪ >> training again, the chicago mercantile exchange was it i technical glitches. back off. beijing w

i did not cover etf of them but it is an important tool. >> i mentioned as part of the first question how to write about africa and i wanted to ask about the sensational things over the last year to come out. this does talk about the struggle of the lgbt people especially against the backdrop of the you kind of legislation -- you gotta -- uganda legislation. >> may be over eight years i am incredibly proud it was not a secret. i wrote about the bill and during the time this was going on and it was one of those classics and a call distractions where people without real economic growth and people who were not concerned with homosexuality. these are things that have been used as a wedge issue to distract from other complicated issues. but broadly it is quite real and quite dangerous and it depends on the country and the city it also depends hell cosmopolitan as they are different but i did note that uganda had its first pride parade this week which is remarkable given the danger and we could quibble about the nature of the danger of whether the up population or the political class and by

listen, on the week, if you look at the tlt, which is the 20-year bond etf, it was up almost 2%.he nasdaq up 2%. in the world that we live in, we know over the last year that there was this bifurcation. we saw that when we had the taper tantrum last year. when equities came back, bonds continued to go down to the end of the year tlch was a long period where bonds and equities went up. here is the thing. we're $3 trillion into the bond buying. it's almost done. and at some point, something's got to give. i mean, at least from where i'm sitting, something has to give. we're going to know soon enough. >> for something to give, there has to be some kind of trigger, doesn't there? >> first of all, if you see rates going down, what that suggests is there some global macroeconomic concern which suggests maybe you're going to continue to get a little bit of fuel for the fire for all financial assets. and what i would point to is the fact that although there has been a mild uptick in credit spreads, they still on a historical basis are exceptionally low at less than 350 basis points. it i

etf,se it is a leveraged it can give a bigger swing than a regular one, right?rse relationship to 20-year or longer treasuries. >> how come investors continued to pile into the etf's, continue to make this bearish bid? >> they don't believe the rallies. they think the rally will die and pretty soon. by bloombergrveyed expected 30 year treasury note will go up to almost 4% by year-end. and it was down today? this is a pretty big move. if that were to happen, this would be a good trade to be in. but it is not happening. overseas, today is interesting because german yields went negative. is there any sign that this that is going to pay off in the u.s. going to payt is off in the u.s.? what is the thinking? >> the federal reserve is paying its exist ready from the stimulate -- from the stimulus. they may raise interest rates by the end of the year. what is the economic backup? up, isinflation ticking the economy accelerating? third of all, you have so much cash around the world from the stimulus program, the ecb is expected to announce today what they will be doing

junk bond etfs up eight out of the nine last sessions.he reasons, very attractive yields on these etfs, about 5% compared to roughly 2% or so for the s&p. again, strong day for the markets, although on very light volume. back to you, kelly. >> mary, i'm so glad you mentioned what was happening with junk bonds there. that has been such a tell. retail piled out, created a huge opportunity. thank you. for all of the talk of corrections, does today's market moves put that to have end? is it time to go back into stocks? joining success warren myers, and peter costa from empire execution. the view from the floor, for sure here. peter, first to you. was that it? >> no. you know, this is -- you're talking about 175-point move without, you know, without any volume at all. mary mentioned it before, this might have been one of the lightest trading days of the year. you know, the market was ripe for a little bit of an upside move. do i think we'll not see a downside move this week or next week? no, i think we'll see the market move in very, very subs

>> oh, i was speaking specifically about certain etfs that are what's called pure value for large and small caps. usually you will find value in some of the financial categories, some of the more defensive areas, whereas the growth of more traditional discretionary. >> i understood you were talking about etfs. i was trying to get to another layer of exploration. >> let me going goe back to one people love to talk about right now, which is merger and acquisition activity. how do you play this space? do you buy some of what you think might be the likely candidates? does everybody win? does nobody win? give us your take on how investors can position for this wave. >> well, i think that the key here is going to be a pickup in demand. if you can start to see the top line grow in certain industries, i do think you're going to see confidence build up that merger and acquisition activity will increase. you're seeing it in the banking industry with small and midsized banks. you saw the headline this morning in the "wall street journal" that bank profits are almost at a record high. that's a go

the three times etfs, trade them. if you think rates are going to go higher next year, if you hold it next year, it's going to have serious capital erosion. i do think it's going higher. >> any of those two and three times, those are trades. >> exactly. >> trading. >> the calculation goes every day. i think the one thing that is very important to point out here, because of the vix, which is a measure, and i'm not saying this is a tradeable thing, it's more of a measuring stick for me. when i see the vix today get underneath 12, giving you an opportunity to own protection at these levels with the s&p, with all the things you pointed out, guy, and for all those reasons, we aren't seeing the normal reactions. but why not protect your portfolio? why wouldn't you do that? today we spiked toward 15. we closed underneath the 200 day, towards 13. plenty of opportunities throughout. you can buy stocks when you're getting hit if you tone protection at the lower levels. now the is the time. >> to add on to that, if you look what

so, on a light volume day, suddenly, emerging market etfs are high.on ipos today, lending clubs announced this ipo. we think ali baba will be coming. either friday they'll announce terms or next week. things are going to pick up very, very quickly. >> i just wonder, because you know, the kind of thing bob just said, if this idea that the u.s. is the best game in town, there are other places that are starting to look a little attractive as well, dave. so, does that change some of the money that's been flowing here? does it start to go elsewhere? >> i think that is changing. the emerging market's index is up more than the s&p so far for the year, up almost 11%. you referenced a number of countries that are doing very well, and all of those countries are far cheaper than the use a valuation basis, so we should see money flowing into the emerging markets. >> fair point, jonathan, isn't it? >> yeah, i mean, there's always opportunities outside the u.s. i don't see that big a valuation gap between the two, and the u.s. economy i think is in great shape. so,

charles: you are a big etf guy. >> i track indexes, do some homework. they have to watch and find out what metrics to lock at. charles: watch the show, thank you, a fantastic question, thank you. >> all right, by the way, have you questions, tweet me, on this topic, hash tag ask payne, or go to our facebook page. you know, i am passionate about a lot of things, very few things more so than making you money. that is what we're all about, we'll be back with payne's passion. ♪ [ dog barks ] ♪ [ male announcer ] imagine the cars we drive... being able to see so clearly... to respond so intelligently and so quickly, they can help protect us from a world of unseen danger. it's the stuff of science fiction... minus the fiction. and it is mercedes-benz... today. see your authorized dealer for exceptional offers through mercedes-benz financial services. >> i am going to stay in the matrix for now. >> i don't think it's going to happen overnight. tracy, i don't think it can happen in our lifetime, but it will happen eventually. and that sometime every major curre

to the extent that they are offering unlimited services, international services, etf payoffs -- all ofre resonating very well with the consumer. shaking things up has a huge impact on subscribers for t-mobile against the industry. >> who would have thought a telecom carrier would have ended up being such an interesting story? michael mccormick -- mccormack, they give for joining us. a lot of companies are taking a new approach to using crowd funding sites. a robot company has seen massive success on the crowd funding site indiegogo. it surpassed its original campaign, a total of $100,000. not quite $1.3 million. i am joined by the founder and ceo, dr. cynthia breazeal, who really hopes it is $1.3 billion. you are also at m.i.t. indegogo -- ijndiegogo ceo slava rubin. crowd funding is just exciting the notion of people who have an idea -- sometimes really bad ideas -- but sometimes great, under the notion that they can start their ideas. how does it work with your site? >> we launched in january 2008. anybody can create a campaign for any idea. some might think that idea is not so good.

a company that lets you build your own mini etfs, and he's also, by the way, number four on cnbc's disruptor 50 list and just wrote a blog about how you profit for tax inversion. so a motif based on tax inversion? >> absolutely. these are inversion target companies. countries that have less than 25% tax rates. what we did is threw out and then we looked at companied dom side oversees that have trying that have a history of tax inversions. and you end up with about 64 companies on that lest. geographically you have taken out the tax havens, so you're focused mostly on europe. wen is there's news they are weighted less. but it is skewed towards safer regions. and technology. absolutely. those are where we have seen a lot of history. because what's happening is tax inversion beget tax inversions. when you see your competitors doing these inversions, there's a lot of pressure to do that. we've had more in the 25 years before 2008, but not financials. >> not financials, because there's regulatory complexity when you start to do that. >>> sounds very interesting. >>> scott wapner has a market aler

. >> stocks, etf. bill the watch list. it thing. charles: stop watching that other network.is tonight. we wanted thank you for joining us. you know, my thing is about passion. i want to help others. i want you to learn about the market to have confidence, start a business, get in the game. we will be back with some words of wisdom teeth. you don't want to miss it. ♪ charles: we have some more breaking news on texas governor rick perry. publicly promising to veto money. he was indicted by an austin grand jury. he is the first texas governor indicted. he's leaving office in january. there's a lot of scuttlebutt about it 2016 run for president. i think a guy like rick perry, something like this wouldn't hurt him on a national basis. >> when you hear the word indictment, it is taught. and i am a fan, so i think they better put a spin on very quickly. >> chris christie was pretty close to that as well. and so he actually needs to make a run for it. >> that being said, his business policies have been very popular. >> one other thing as well as that we are so far out from 20 eckste