and etf flows. happens, etfwhat follows the price. before trump the flows are more positive. now people are getting out there etf's. in oil it is the opposite. are buying etf's. this is a bit of an ominous indicator. oil is not doing much. might be an indication that oil can be getting overdone. their prior periods where you could indicate it is there. record 2 billion could indicate oil is going to go down? >> the massive move in 2015 was about 18 months. the average inflows, it dropped 50% or more. when oil started recovering, up flows, basically from march through june. the bloomberg commodity index was up 30%. versus gold and precious metals. >> we are seeing record inflows close for the record. is a good it indication of a change of alleged sentiment. sign etf bullish investors are willing to buy more. commodities are up. gold is coming back a little. >> thank you for joining us. back to you. >> making sense of the global bond rout. this is bloomberg. speed always wins. especially in my busines

it all happens right inside the etf. etf holders don't have to do anything. all the change is right inside. >> and your fees are very interesting. we mentioned that. just to sort of clarify, you're not -- you're basically not getting paid unless you beat your befrm mark. >> well, and i am getting paid. i get a bonus if i beat the benchmark, and if i fall short, etf owners get a little discount. >> i -- full disclosure, eddie is a friend of mine for eight or nine years, and i think i'm one of the first shareholders in my personal account. i believe in eddie. i like to bet on people. nothing to do with performance, but i think it's the first of its kind that's going to have a differential -- which probably is an innovation that should be introduced introduced in a lot more places than etf's. the second thing is how consequence freighted you are. you hear about smart beta -- that's very novel in today's day and age. >> can you talk about how you go about picking these names and how important that is to to be concentrated? >> basically i have a watch list of abou

select etf, the xle. 40% of that is exxon, chevron, schlumberger. so i do like the relative strength that the energy stocks are showing relative to the commodities. >> the important thing about the energy complex, all of those companies, is we really should be taking a look at their valuation relative to the curve, not relative to spot. and the spot story in crude is one of oversupply, disappointing news. from an oil producer's standpoint, and the fact that everybody's producing, everything that they can. that kind of an environment, obviously, spot crude is low. but actually, the long end of the curve hasn't come down as much. so that might actually support the thesis that they didn't deserve to actually drop. >> i'm glad we led with the oil story. if the market wasn't such a huge story, this is what we should have led with fast money. if you think about it, crude oil is going down for fundamentals reasons now. there's a lot of it out there, and it only seems to be more and more coming out of the pipelines. i'll tell you this, you're talking about

etf portfolios. barton alongrk with julie hyman. julie: time for our weekly etf friday segment. a new catalyst in town to --mp's shocking when has catalyst in town. chumps shocking win has -- trump's shocking win has -- there have been ripple effects across the market. you have seen a move in the major averages. the groups have been much larger, both to the up and down side. thanking shares have been among the biggest winners. -- thanking shares have been among the biggest winners. ing shares have been among the biggest winners. >> banking, -- there two etf's. kay re: is the most juiced up. if -- kre has been the most juiced up. >> they are less diversified than the big banks. -- kre traded over $1 million. that is how much investors are tuned into what is going on. julie: another one we have been watching as the biotech sector. you are looking at it from the etf side of the equation. guest: four months ago we did a segment on how the biotech etf was the one most correlated with trump's poll numbers. they had priced in a clinton win. what you are seeing is a bounce back. they ha

i lose money as the etf goes down toward the short put strike. like the risk-reward here. >> trying to reach out and catch the falling knife if i take a look at that. we had a 30 plus year bond rally and i suspect that we have just seen the end of it and we're going to find out next year clearly. i do like the structure though because there is some cushion and if jeff is right and there is only about a 35 basis point move the amount of risk you're taking by selling the down side put is probably not that large and we have seen how violently it can move which is one of the reasons they're elevated right now. >> he said he's going to see ten year yields back to 2%. he was right. you should think about this over the weekend. are rates going higher because the rest of the world that owns our debt is terrified that the new regime might restructure debt and might do other things to debt. that would be my thing. so if i own u. s. debt right now i would be absolutely frightened that things -- that historically have been true would not be true. >> the othe

etf's are accessible to everyone. is the mexican etf.is so beyond its norm that you rarely see something like this. $400 million a day. everything changed one week ago numbers beganoll to surge. they caught fire with volume and short interest here it short interest has doubled. you would short this etf if he wanted to bet on trump and long if you wanted to bet on clinton. it tracks mexican stocks and it has the peso. the peso is part of the return. it is down 5% this week. it is probably the most sensitive etf to the poll numbers. it is the proxy to the election. it is not unusual to see a single country etf become the way to bet on an election. usually that is where the election is. here you have any tf not our country that has become the proxy to bet on the election. it is unusual. vonnie: you will be able to see the short interest and volume. that is eww u.s. equity. etf.es we can expect that to continue. what else? talk about volatility. vxx.x, traders love it has been up here it closed up 8 straight days. it has never closed up 8 st

this is the spider etf. can see the spike right at the end showing you how it goes right into financials because donald trump has said he is going to get rid of all financial regulations and repeal dodd-frank. >> the double where me was the rising yield and protectionism and this is rising yields and deregulation. that is helping financials. if you are in the business of security transformation, that explains the performance of financial etf's. the story charts tell clearly. thank you for putting them together. are goingoming up, we to stay on the emerging markets theme. bonds have extended their route. falling to four month lows. we will discuss this further. this is bloomberg. ♪ planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for you

etfs continue to win. investors are still dumping bond funds, doesn't matter if they're etfs or mutual funds. there were outflows from bond funds, etfs and mutual funds. seven trading days we've seen $39.4 billion go into equity funds, etfs, that's the largest seven-day inflow that is on record. here's one bit of caution, mike and kelly. a lot of people say this is because the retail investor is back. that may or may not be true. etfs are widely used by international investors right now. individual investors tend to be a little bit late to these kinds of investment swings when they happen rather suddenly. so it's not clear all this is retail flow at all. a good part could be simply professional i mean hedge fund types that are simply moving money around right now. >> an efficient way to change their exposure to the market. within those etf flows, people have really chased the financials. a tremendous level of flows into the bank related funds. >> that's right. materials, financials and industrials have see

it is time for our etf friday segment.gail: they will stop taking new creations, popular products .ave over 2 million in assets here to discuss this is senior etf analyst at bloomberg intelligence. thank you. when we were talking before the segment, some breaking news came out yesterday. can you tell our viewers what is happening? eric: i think more alarmed. recover etf's and they have done good for investors. we have three different oil etf's, two from velocity shares, which are basically credit suiss and one for barclays, so they are halting new creations of shares. what that does is make it impossible to do arbitrage and what you have happening is that three them, crude oil times leverage and inverse, have combined $1.7 billion, so the fact that they are halting creations and delisting is something because normally, a crowd -- a product will liquidate when there are no assets. but here is the case where it trades more than $500 million every day, a lot of money in it, and i know that retail investors have been using it

you have the stock sem se conductor etf on track to close the week up more than 4% thap that's thanks in part to upbeat earnings including nvidia and applied materials. you can't talk about that and not talk about mega cap tech. a big sell-off in these names last week and the first part of this week. analysts saying maybe that sell-off was overblown.

the classic etf, that they are cheaper.rs want these four core product, at least, that's what they are billed for. rather than owning the s&p 500 is your main core thing you hold on for a while, you will him to this. you don't need to buy a bunch of different etf's. carol: it controls are for polio automatically. dani: it's almost geared to a retail lot he ends, it's like hey, don't worry about it. we have this math builds portfolio for you. oliver: why are we talking about multifactor strategy right now? is it because it's been a difficult market the past 12 months for active managers to make money in? is it a trend to passive investing? what is making it right now? dani: all the points you raised are valid. be due to the general flow from active to passive right now. another trend that's going on is the idea that because active managers are having a tough time, perhaps more mathematically-based investors can do this better. you put those two things , it's definitely an idea whose time is come. oliver: what is so cool abou

what we have seen in the last week, maybe longer, the hyg, right, which is the etf, the high yield etf has been trading below its net asset value. suggesting that sellers are pretty much selling indiscrimina indiscriminately. do you see that from your desk? >> certainly see it in hyg. i think it's down 2.8%. very, very quickly. the line is going straight down. if you look at cash bonds, which are slower to move, because the hyg is an etf, faster to move. cash bonds are slower to move. it took a while for that price action to catch up. what we have seen in the last -- since october 25th, the last week, is that cash bonds have widened over 50 basis points so we are seeing that pressure in my market. >> first of all, good call. you came on the show kind of in between february and where we are now and said i think there is a trading buy. and i think we got that. high yield went straight up along with other risk assets. so good call on that. but how much of the move we've had over the last couple days is built on the expectations of trump is basically tail risk. but the reality is gdp was 2

if you like etf and index funds, listen up. they may bring interest regular sear why they may be more expennive. janet yellen making big headline on capitol hill. steve liesman has that. >> seems like about a week ago, but this morning, we got good economic data. a little less inflation. that adding to the outlet for gdp. our rapid update, which brings together the forecast from the street, tacking estimates by .2. now, it's.6 we're tracking for the fourth quarter. early days, lots of data yet to come, but right now, we're running 2.6. 's look at who's -- goldman sachs running near 3% at 2.8. moody's analytics, which puts together the surveys, contributes at 2.1%. janet yellen as was sukt suggesy the says she fully intended to serve out her term which ends in 2018 and warning about the fiscal stimulus plan. she warned about the inflationary impact of big stimuli, the same size not needed. warned about raising the gdp to debt rh owe. she suggested congress focus its fiscal policies on raising national productivity and said the f

. >> now the s&p bank, etf, the kbe just posted its best month ever.ut our next guest says there is still time to buy. mike mayo is one of the street's top-ranked analysts. welcome to the show. thank you for being with us. is this nirvana for the banks at this point? >> i'm going to use the analogy for jpmorgan. jpmorgan, we called the lebron james of banking because they have offense and defense. and i would say the banking industry -- the u.s. banking industry is in a way like lebron james of the stock market. they have incredible defense. the most resilient balance sheets in a generation, but now with this pro growth agenda, they might also have a little bit of offense, too. >> do you have a prop to show? or are you just holding out -- >> from being too nervous -- >> hold on -- >> exactly. but this is an important point. it's not just about the pro growth environment. i get it. the score card, where is gdp going to be? 2%, 4%, banks get a lot of benefit from that. the foundation that's been built up over the last decade, banks have $700 billion more

you are seeing this happen in the call of the etf.es in that regard. about five times the amount of calls being traded versus the puts. signaling the dollar going higher from here. especially when you see the implied volatility, high and above 10 percent. abigail: another winner is the financials. up more than 11% for the best week since 2009. what are your thoughts? lex the financials is really where everyone is trying to position themselves. as of 11:00 a.m. we saw calls being traded in the financial sector etf, pretty significant considering the move it has already had. it is pretty important to dissect how the etf is constructed. work shire hathaway is the largest holder and that has really helped it's down from bank stocks like jpmorgan. it also has a eyed you and their assignment so a good way for people to play the bank move is to actually get into the names like jpmorgan. so looking out to february, and because there hasn't been a big move, you want to head yourself. because options are cheap right now relative to their histor

passive and etf has been an important part of that.gers getting a lot of value out of their portfolios as well. portfolio. toid: betty liu was talking larry gemelli yesterday. let me play a little bit of what he had to say. it was cmp, ins 2008, it was something else. this time it is etf. i don't think it's any harder. david: making the case that there is an argument to be made about the resurgence of active investment. mother always be a place for it, will it start to diminish? >> there will always be a place. going back to structural and cyclical factors that benefit certain styles of investing, low interest rates, central bank policies, had contributed to the rise of passive, which may slow down a bit depending on the macro environment. in my opinion, structural reasons provide strong demand for passive as well. typically means advisors will look for lower cost of ownership and passive etf's tend to be at lower price points. david: we are surveying the landscape, wondering what will change under this new president. it was not many w

investors used this etf as the ultimate proxy to bet on a trump victory. what is in this eww? there's american mobile. that's the latin american cell phone provider. then you've got fomento economico mexicano, a company that owns fems along with a host of different mexican and colombian retailers and gas stations. the third largest group of the eww is the number three bank in mexico by deposits. there's the mexican media company that's also a cable operator. number five is cemex, which we talked about earlier. finally, the six largest holding is walmart de mexico, which as you can imagine is walmart's mexican subsidiary. the thing this keep in mind is if we toss nafta down the drain, it won't be just mexican the value of the peso is going to plummet. the action in the eww today suggests that hillary is going to win, as does this epic rally in the rest of the stock market. but if the polls are wrong and the stock market's wrong, you better believe this mexican oriented etf will get hammered. it will be the big short. here's the bottom line. we don't know what's going to happen

but if the polls are wrong and the stock market's wrong, you better believe this mexican oriented etf will get hammered. it will be the big short. here's the bottom line. we don't know what's going to happen tomorrow. you see, i got to prepare you for any outcome. given the two main planks of donald trump's platform, the border wall and the need to renegotiate nafta, you better believe that companies with big mexican exposure are going to get hurt in the event of a trump victory. so if he managed to pull off a surprise win tomorrow, you need to sell ksu and the ishare mexican cap etf. ksu in particular would make a terrific trump short, but don't jump the gun. wait until the results come in and then you'll know exactly what to do. robert in north carolina, >> caller: hi, jim. thanks for taking my call. >> you're quite welcome, robert. >> caller: i've watched you from the very beginning. my question is about gm. they on schedule to earn $5.86 this year. why is their pe about one-third of other dow blue chip stocks? >> what a great question. i puzzle over this every morning with david f

investors are bailing on dodd holdings at etf. preparing to hike rates, stocks notching records and donald trump gets ready to take off after dropping for 9 straight days, assets in bullion backed etf have contracted 71.8 metric tons in november, tons.ting to 1915 that's gold versus etf's. nice chart here, for the first time since 2007 a majority of italians, 50.7%, say their personal economic conditions were either good or very good. still 12.9% say they were not at all satisfied with their economic situation. a lovely charts ahead of the all important italian referendum on the fourth of december. justwe are just more than two s to go. here in the united states, i'm having a look at country market movers. all in the red today except for the dow jones industrial average. materials dragging down. the most part, so metals and mining the most parto metals and mining producers and aluminum, gold, and silver for the most part responsible for that drop. if we look at currencies, we see the bloomberg dollar index has resumed its gains an

we have our etf, a $20 billion etf.6 billion this year as investors position for inflation. it has increased by $1.5 billion. 75% of central banks globally everything inflation lower than target, and while mark engaged inflation index is are showing increased inflation and expectations for inflation, the university of michigan, five-year u.s. bring humans are running below historical averages. there is still so sluggish economic growth in the world. a stronger dollar that is probably going to keep inflation good time to get inflation into the portfolio and that is why investors are doing it and doing it in a really efficient way. david: take us into this world of etf's. as you point out, it is efficient. you can move in and out quickly and have fund flow shifts. martin: the election unleashed animal spirits in the marketplace. .tf's have been at the center record blows him volumes with a --areas of the economy are benefited by a have administration rotated out of treasuries and into things like inflation protected secur

49 more of these, you can join etf with me. very funny. watch this. [ grunts ] two. what's it say?really? i'm pretty good at keeping secrets. yeah. according to the chemical report, the evidence room bomb had a completely different signature than the i.e.d.s ted mcdonald was using. he could have used two different kinds of bombs, but it's weird. doesn't make any sense. all this guy wanted was for us to see his evidence. why would he destroy it? i -- i don't know. i can't believe i gave up my vacation for this. epstein, i didn't make you any promises. it seemed like a good opportunity.

that's a bet the etf could decline anywhere from 3 to 9% by january expiration.a lot of sense, because it turns out this etf has underperformed the s&p during the holiday shopping season seven of the last ten years. by an average of about 1%. so taking advantage of the fact options prices aren't up and this is a seasonally weak period for the space, interesting and cheap way to make a bearish bet here. >> mike coe. check out the full show 5:30 eastern time friday. >>> still ahead, more americans are getting high. and according to a top analyst, that is dragging down the beer business. we'll hear from the analysts and give you the names seeing the biggest buzz kill. >>> and we'll give you four stocks that could see big gains through the end of the year. you're watching "fast money" on cnbc, first in business worldwide. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere

we have seen some pretty good drops and even the etfs, some of the municipal etfs and others. you should kind of expect it. as these rates go higher, these bond prices will come down. if you have a bond holding as part of your financial plan, you really should stick with it and not panic, but i think probably something towards the shorter end of the bond curve makes more sense. >> and what about stocks, because we have seen this kind of parabolic move upwards and we're at another record high and some people say that's gone too far too fast. >> it certainly feels like it has, but you know, we're in this strange time, sue, where i don't think we've seen a lot of this kind of thing before. we've just gotten used to a market that's been driven by monetary policy, and the federal reserve and these new zero interest rates forever have taken us to 17 times earnings. now we're getting the promise of more money. fiscal stimulus. tax cuts. corporate tax cuts. repatriation of dollars from overseas. more money and more debt spending seems to be those expectations because we haven't begun

>> we're always buying in the etf world.ave alternative to waiting worrying about interest rates going up? buy stocks, global stocks that pay high dividends. we have a global etf, all pretty much household names. all huge megacap companies with free cash flow. liz: looking at chart for pacer high global dividend etf. if they don't raise the rates in september or slight market gyration you're protected either way in this thing. what are the names? boeing, qualcomm? these are high quality names. >> $10 billion in the free cash flow. they are the player in the telecom world in the big war telecom with verizon and at&t and who is acquiring who. interest rates going up, bond investors are getting hurt. last 10 days we saw trillion dollars bond value disappear on 60 basis-point move. if you're income investor, why don't i buy high dividend stocks in quality. they can go up in value as opposed bonds if they raise rates my bonds go down only. liz: long only, says no rate hike in december. folks, check it on the screen. i told you to

i love etfs. they have had big moves.my thesis is after january 21 that pounding of the drum will be heard on both sides of the aisle saying we need to rebuild america. we need infrastructure. these two particular etfs are major beneficiary of that theme and move. we will have a lot of political momentum unlike deregulation of financials. >> good to see you. kevin o'leary. thanks for your -- >> unhedged long trade. 24% exposure to the pound. >>> coming up next closing count down. >> after the bell jim grant is here to tell us why he thinks president-elect donald trump will, quote, fumigate the fed once he takes office. you're watching cnbc, first in business worldwide. igibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come i

let's look at the xrt and s&p retail, etf. and i know carter is a big relative performance guy.his made its all-time high last year in 2014 back in march. it never confirmed the high in the s&p 500, down about 11% just in the last couple months. down 20% from the all-time highs. really, you know, technically, just for one, i'll step on the toes again here big guy. this is one of the worst-looking charts i've ever seen. look at the neckline, head and shoulders formation there. 40 is the number that i want to target for the breakdown level. but when i think about retail and i think about amazon's results last week, i know the margins in north american retail were a little disappointing and the guidance that they gave for revenues for q4 were not a good thing for the rest of the second sector. these guys are a wrecking ball right now for the rest of the industry. you think about amazon, 28%. everyone wants to talk about aws but aws is about 10% of their overall sales. every year, amazon is growing 10, 15, $20 billion in sales with a "b," that's really coming out of retail's butt. i

overwhelming majority of these etfs are actually asia.k at currencies and how the dollar is going to trade with south korea and taiwan and in that case i don't see any real weakening. it's also about their economies. we're not seeing growth. we're seeing further and further disappointments and of course stronger interest rates in the u.s. so particularly when you look at some of the emerging markets, it's really all about china and until we see a turnaround in their growth story, i don't see any upside going forward. >> so you're negative on emerging markets overall. do you see the same thing in the charts? >> i guess it depends on my time horizon. i think near term, it has become tactically attractive. i think it's setting up for a countertrend rally. by saying countertrend, i think there is some heightened risk here that should be considered and i think to make that point, if you look at the long-term chart, it's been making lower highs since 2007. so we see this as a relatively weaker trend than some of the u.s. stock markets which are

etf. there are stories about the base metals from a technical standpoint, now starting to break out, both relative to the s&p as well as on an absolute basis. you've got multi-year down-trends being shattered. things like aluminum, zinc. these are areas that people have ignored. we're now talking about health care costs skyrocketing, talking about gasoline prices higher. labor, wage inflation, these are all new stories for the market and i think we're see floegs, go to some areas of this market that represent a bet on higher interest rates. >> let's get another voice into the conversation. rich greenfield downgraded facebook to neutral back in july and he's with us live today from new york, right here in new york city. rich, good to see you again. >> thanks for having me, scott. >> a little early, i guess, gu correct. >> we were really concerned that growth expectations for the street, especially the massive beats that facebook were having, were really hard to sustain, and the reason we we

within this etf.reens food alliance. walgreens getting pulled done with cvs after that company came in with a forecast for 2016 and 2017 below estimates. among other things, cvs is being affected by a migration from its pharmacies. a structural change for cvs. the company expects to lose more than 40 million retail prescriptions next year because of more restricted pharmacy networks. that is why we are seeing such a tumble in those shares. we are seeing a game in the staple food companies over speculation of m&a. paper,ng to a brazilian 3g capital is seeking a billion dollars to $10 billion for a new fund and an acquisition. in the consumer sector. 3g capital is already an investor in burger king, which rolled into tim hortons, adding times as well. these are some of the company that have been named in the past as possible targets. one interesting stat we pulled out is looking at food inflation at home versus general food out. food inflation over all is going up, but at home, inflation is actually com

this is a look at the popular emerging market etf. millions withdrew 750 from that etf last week.ahim rahbari. the real question is, what emerging market besides mexico, is most at risk if we see a donald trump victory today? ebrahim: there are a few candidates. areone we discussed most korea and brazil for very different reasons. korea being a very open trading nation and a shift away from localization while in the case of brazil it is for completely different reasons. it has been very popular as a long position. valuation is life people are a little concerned about the reaction brazil may have to a potential donald trump retreat on the market. -- victory on the market. alix: hillary clinton does have some protectionist rhetoric in her speeches as well. what are the indications for emerging markets on her victory? ebrahim: in general we have to be somewhat cautious from drawing too much from the campaign rhetoric. the minimum we know that is under either candidate will not see a big for localization agenda. -- liberalization agenda. minimum, we think those large initiatives like

when you get markets going one way or the other, etfs tend to lag because they have to buy what's hardt's hard to sell and they have to take prices at a much lower than they otherwise would have to take. that's the problem with etfs when you get the market moving one way or another in a very violent fashion. >> andy, thank you very much. fashion. >> andy, thank you very much. kayla, back to much. >> thanks so much, rick, now a look at what's coming up on "squawk alley," john? >> as snapchat or snap inc. gets running for an ipo snap specks are spreading. what's the spre strategy? we'll dig in. >>> also facebook continues to wrestle what to do with the problem on fake news behind mark zuckerberg's weekend statement on the matter. also president-elect trump assembling his cabinet. there are implications for tech, for the economy, perhaps. all that and more coming up on "squawk alley". ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to co

and you might not -- you might say, oh, you know, ishares core etf, which is the biggest etf for bondsthere, the largest out there, down 2% in a month. that's not a lot. actually, that is. for a bond fund and 3% for the lqd, that's the corporate bond, that's the biggest corporate bond etf and the high yield down 3%, those are very large moves. but as you heard jim talking there, yields moving up, great news for pension funds, great moves for pensioners overall. so right now the dow outperforming the s&p again. dow up 43 points. carl, back to you. >> bob, see you in a bit. bob pisani. we are watching oil, which is below $43. let's get to bertha coombs at the nymex. >> hey, carl. the strong dollar certainly putting a bit of pressure on oil, but part of it is also just the production dynamics within opec. it's kind of like when you decide on monday morning you're going to start that strict diet. you spend the weekend pigging out on fettucini alfredo, ice cream, french fries and you actually gain two pounds before you start the diet. opec has been producing all-out ahead of their agreement

joining us now to discuss the takeaways, kevin carter, founder of an emerging market etf whose largestolding his alibaba. selina wang still with us as well. why is alibaba your biggest holding? then: our thesis is that emerging markets are just now getting the internet and getting it on mobile devices and the consumer in emerging markets is the real growth story and just as the mobile and internet has changed the way we consume, it is changing how emerging market consume, china being the largest. 55% topline growth for a company the size of alibaba is quite extraordinary. before this, we were reviewing facebook results and they also grew at 55%. there is many companies the size of those two in the history of the world, frankly, that can grow faster than 50% on an annualized basis. emily: that said, there has been brought a concern around growth in the chinese economy overall. i recently sat down with mike evans, president of alibaba. take a listen to what he had to say. >> china is not in a bubble. the economy is slowing, but not flow. the combination, the components of the economy are

index were retail etf once again i should say, the heat map, how does the etf perform what -- month by year by year going back in the past four years or so. november 10 to be a relatively strong month here. average,end to sea on a drop in january though it has been a mixed picture. february appears to be the strongest month of the year as we get more and more results from the holiday season. an interesting trend and pattern here throughout the year. we will be watching the retailers as we get all of the holiday numbers. all right. right in line with those gains. often calling the coverage of the campaign unfair. and put the meeting back on schedule. during the meeting, trump spoke the numbers -- a number of issues saying he was never a fan of the electoral college and when asked about prosecuting hillary clinton, the -- they said it is not something they feel strongly about. journey us now from washington, to hear was surprised comments about hillary clinton given that it was such a big rallying point for him. he signals he will not pursue investigating hillary clinton. clinic comest m

you just need to invest your money in a low-cost s&p 500 index fund or etf and then you wait. granted you're waiting 40 years but $450,000 when you're approaching the age many people retire seems more valuable than the $10,000 investment you made when you were young and had your entire work life ahead of you to so please, i'm begging you. think of it like this, a little money saved and passively invested in the stock market is the easiest way possible when you're young to turn into a massive fortune when you're old. and have all sorts of additional cost responsibilities and all you have to do after you initially save that money is let it sit on the sidelines. ideally in a 401(k) plan or ira so you don't have to pay capital gains or dividend taxes. the same logic applies if you're 30 or 40 or even 50. but you get more bang for your buck if you start younger which brings me to the bottom line. even if you don't have time to do home work, the stock market is still the best tool out there for growing your wealth and thanks to the magic of compounding if earlier in your life you st

the spider bank etf, kbe, up 18% in november. vastly outperforming the broader s&p 500 index.t of the 64 components are up 10% or greater this month. bank stocks surging after president-elect donald trump indicated he will focus on deregulating the financial sector during his term in office. the prospects of a fed rate hike providing a lift. the best performing bank stocks, larger name this month, bank of america, up 26%. >> thank you very much. donald trump with two more key announcements to his team, by now you probably heard the money man wilbur ross for commerce secretary. and steve mnuchin as treasury secretary. cnbc viewers probably very familiar with mr. ross, he's been on cnbc a lot, but mr. mnuchin a little more of a mystery, i suppose. very well known in his own right. eamon javers is at trump tower in new york city with more on mr. mnuchin's business background. >> very rainy trump tower here in manhattan. we also saw preet bharara stop by and talk to reporters. he said he has been asked to stay on as the u.s. attorney here. that's an interesting pick by the trump t

to karen's point, if you go back in the xfl and look at the etf, 2007, 3097 was the high. down to the low in '09. now we're 21 and change. do we think regulation is taken off across the board? we all agree, no. will things be as good as they were in '87? i think we all agree, no. it's a big move, percentage basis. >> yeah. >> but they have come so far, so fast. >> the question is do you buy the banks at these highs? as a trader i'll probably say no. tomorrow morning, do i want to rush to the banks? i am long xlf because this is a bankster's paradise, nirvana, it is for this environment. will everything guess passed? probably not. here's the key to this whole rally. this is not a donald trump rally. this is a republican sweep rally which means things can get done that are pro-business. you'll get some pro-business things done. on pullbacks, i would be buyer of the banks. >> we're not being political here, just trading the hand that has been dealt to us. >> to jump in, biotech should be sold. the financials probably are overbought at this point. and the infrastructure place,

the volume is never big because these are etf buyers. you're so right to bring up etf. some shopping this weekend, david. i went to west elm. >> west elm. >> a brand new williams sonoma. my wife wanted to take a chair home, see if it worked for our dining room table. they wouldn't let us borrow it and return it. they should be a little bit more -- that's not right. they get downgraded not pauf that but i'm doing some shopping and the stores were packed this weekend. even west elm which i felt was not that great to my wife frankly. she didn't look like someone who would steal a chair. >> i don't see her running down the street with a chair. >> what is that? >> lower 50s. i was way out of line with that. >> but she doesn't watch so we don't have to worry. >> bug and everest watch more than she does, our two rescue dogs. >>> let's talk briefly about pharma. the last few days have not -- everything is down in that area. >> look at this. home depot, can we really just -- i said you had to wait for the conference call. i didn't mean that you had to sell when you listen to the

you put up low volatility etf, it's called the sphb, against the high beta etf called splv, and you getery interesting trade. in the last couple of days that high beta, there's that white one, has been notably outperforming here. that's energy, health care, financials and some tech. low volatility staples. you see the markets already moving in that direction. we see some infrastructure stocks hit new highs as well here like ingersoll rand and martin marietta also hitting new highs, again on the whole infrastructure play. meantime, where are the hedge funds? interesting note out of jones this morning here. hedge funds have the greatest exposure to tech and consumer discretionary right now. they're all down. they have the least exposure to financial industrials, that's moving up. my point is hedge funds may be once again on the wrong side of the trade. let me quickly point out how well some of the retailers are trading, macy's, kohl's and ralph lauren. macy's had a miss, but remember same store sales still are to the downside. good guidance mostly particularly of kohl's as well, but there

looking at mexican etf. you have seen a million versions of the trade.hing interesting. short interest, the mexico etf is surging lately. that could bes used for multiple purposes. maybe that is people hedging. you can hedge it to protect your risk and probably get crushed if trump wins. you can never look at just one data point. matt: they will be covering those if trump doesn't win. next we will talk about that anger driven politics. stick with us for making green. this is bloomberg. ♪ mark: following one of the most bitter and divisive presidential campaigns, americans are headed to the polls. many avoided today's lines with as many as 50 million people casting early ballots. hillary clinton with a narrow lead. she and bill clinton voted in new york. donald trump voted in manhattan. he told foxnews he doesn't trust many opinion polls which he says are deliberately inaccurate. a judge will not issue an order to have ballots in voting machines set aside pending challenges to the election results. the donald trump campaign filed a lawsuit in las vegas al

looking at flows in the major etf's in these sectors. 738 billion in inflows.s is a huge amount over the past week here. 92 billion. this is a large amount over about a week period. you can see some money actually going to work here. this is sort of an opportunity that hasn't been around for a while. at the end of the day, this is what's important, being able to have returns that will reflect the fundamentals of companies and that only happens when stocks are going a different direction. joe: you can see why active fund managers are excited about this finally not everything moving together. the last chart, they are starting to get into those positions. overall, there had been some money moving into the more beaten up groups, which is just so happen to be the financials, industrials. if you take it back to june, money started coming out of the more defensive side. i don't know if those investors were doniing it. know if it was the right reason, but it was probably more of a reversion trade. certainly good news for those active fund managers. i wonder how long be