active etf.hink in the -- where you can be fully transparent and you need a significant amount of skill to deliver, and i think in certain segments of the marketplace, active retail will be really successful and is going to have a demand from the broad client base that's currently using etf's. so is this the start of a trend. do you think other big famous money managers mutual fund managers famous money managers in general, mario gavelli, for example, anybody like that suddenly is going to start announcing their interest in an etf since forming their own? >> i think they're all looking -- i think they're all looking at the market. the market has tremendous growth over the last five wreerz and ten years. i think all the money managers are looking at saying is there a way i can participate in this? there's some challenges. when you think about transparency and what that might mean for an equity manager, but there's also a significant opportunity. etf's brought $2 million. >> how many jeff gundlach'

bond etf. i want to point out what is going on. the strong dollar and weak euro is a double whammy for frontier markets. it owns a lot of middle eastern stocks and african stocks called frontier markets. that is getting hit on the strong dollar and the weak oil. nigeria you can own stocks and etfs. there is a classic one getting hit on oil and emerging market concerns. >> the financials have just been whacked since the beginning of the trading year. they had a fantastic 2014. 2015 is not looking good right now. with the bond yield especially dipping below 2%. >> they have been anticipating a steeper yield curve. that has not been happening. it has been a flatter yield curve. and we are still waiting to have significant loan growth. we did have some in 2014 but i think they are looking for a better economy. >> i am still hoping the economy is improving in the united states and regional banks might reflect that in the comments. >> i will see you in a little bit. bertha coombs in the nasdaq at tim

would you allow a computer program to pick your stocks and etf's? wouldn't, but apparently a lot of people are. adam nash is joining us right now. is he with wells front. this is a guy who has figured out a way to ought mate what kind of stocks and etf's you want to be investing in. explain how this works. >> thank you, bob. >> as you know, well front is the largest automated investment service out there. we're fast growing. been around three years. we manage over $1.8 billion for people. >> how does this work? you go on-line. you fill out objective information. we try to get to the heart of your risk tolerance. we then map that risk tolerance to a score, which maps to a range of fort polios both for taxable accounts as well as tax deferred accounts like ira where hes. we have evaluated the best performance, and the lowest tracking and the best liquidity, and then we give you a portfolio that's optimized for your tax situation, and your financial. >> i'm an old guy. to be honest, i don't want to talk to a machine, and there is no machine. nobody to

let's move on to etf's.quarter of a trillion dollars into exchange funds last year. $5 trillion in the next five years. here to look at how investors can get a piece of that etf boom is bloomberg's senior etf analyst. we joke around about how there is an etf for everything. them it is true irony. there is an etf for smartphones, for cloud computing, but not for -- coming back from the big conference -- >> there is an etf conference. >> there was a talk that a lot of talk about growth. double line was there jpmorgan, and what these big players are interested in is it took etf's three years to reach one trillion but it took four years to reach 2 trillion. there are estimates it will reach 5 trillion even faster. investors are looking to play this. one way to do that is through single stocks. wisdom tree is an -- an interesting one. wisdom tree is the only publicly traded company that only does etf's. that's it. this is a unique strategies the asset that unique strategy. their stock prices followed. it is up to

look at the s&p, the etf tracking the s&p one trader bet a half million dollars on that etf. betting that it will drop below 195 by tomorrow's close. if he's right, he stands to make $12 million. if he's wrong, he loses it all. he's wrong right now. that story straight ahead. plus -- >>> today's power house is the third most popular u.s. city and orbitz is headquartered here home to the country's oldest public zoo. can you name that city? the lightest or nothing. the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest ...baddest ...safest, ...tightest, ...quickest... ...harshest... ...or nothing. at mercedes-benz, we do things one way or we don't do them at all. introducing the all-new c-class. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. i'd rather do anything else than sit at a dealership. it's a lot of haggling and it takes so long. craig's experience is completely different than mine. yeah. yes, mike has used truecar. at truecar, we'll show you how much others paid for the car you want and h

it will probably be a bond fund in an etf wrapper. actively managed etf's have less than 1%.there is a star attached to that. they have the bulk of the active management. for both firms, it would be a no-brainer to put these guys in etf wrapper. >> you are talking about -- what about co? do they have enough star power without bill gross? >> the bleeding has stopped. it lost less than i thought it would. the other etf's son no outflows. i think co -- pimco is going to be just fine. >> turning to your next pic, a virtual currency, the winkle voss etf that will track bitcoin. >> speaking of star power. [laughter] the winkle voss twins are right up there and bitcoin gets a lot of press. i give it a 50-50 shot. they are ready to go and i think the sec is seven in internal conversation about this and struggling whether to launch this. there are a lot of question marks with security and regulation. look out, this could see a lot of media attention and could steal the show next year if it launches. >> bitcoin are kept in a virtual vault. you have gold, it is a block of gold. >> the s

to go through etf's.rack the stock market? everyone is looking at the market index, but it dropped the biggest yesterday in 29 years. >> anybody sitting at home who has an international fund or a swiss fund you are up. >> do you have one? i don't have one. a lot of people -- >> and people own this one. what is fascinating about this is the currency effect in international investing. this it's etf was down 2% in the year prior to yesterday. the currency effect was hurting it until yesterday, but it was so strong, this thing rallied up 4%. it is all confusing, but for the most part the currency and the strong dollar has hurt international investing. yesterday was the exception. >> but the fundamentals remain the same, meaning the strong franc will hurt the company's opportunities. >> but for the most part it showcases the currency effect is a big deal. >> our senior etf analyst, thank you so much. "market makers" is up next. ♪ >> live from bloomberg headquarters in new york, this is "market makers." >> on t

it is a big etf. it is the most expensive gold etf.ng now is gold is rising at the same time as the dollar. >> a couple of etf's do this. one of this, the advisor shares ge you are. it is up 18% year to date. >> it goes long gold futures. it is a packaged trade. the idea here is that gold does not necessarily go down in every country. we talk about gold being down. it was not down in every currency. this is an etf that could be in the right place at the right time moment. >> you look at gold. these will feel sensitive to moves in the gold miner. this is a $2 billion etf. it trades $500 million worth of shares a day. this trades quite a bit. if you go further, it is up 17% year today, but it is leveraged. >> thank you. that doesn't for on the markets. "market makers" is up next. ♪ >> live from that world economics forum in. votes, switzerland. this is "market makers" with erik schatzker in stephanie ruhle. >> we're live from the world economic forum in dabo swinney:. we need to take you back to new york for one moment. michael? >>

there's an etf for retail stocks. it's a big one. that is a five-year chart. you see how well that's behaved in the last five years. >> people are getting money in their pocket, and they're apparently saving it. i think that will be -- >> let's see if they were putting the money in the bond market today because the 30-year bobbed went off the board a few minutes ago. rick santelli tell us what's going on. >> well i tell you what, first of all, the good news. it is the lowest rate at a 30-year auction ever and the yield at the auction of 13 billion reopened so 29-year ten-month securities. 2.43. you would think, wow, lowest yield. that's good. highest price at an auction. i still give it a d-plus. here's why. 2.43 was a basis point and a half from the one issued market trade at 41.5. that's not good. bigger tale than yesterday. 2.32. it was on the light side. 2.48 almost 2.5 is the normal ten auction average. 48.9 on indirect was a little better than a ten auction average, and 13.7 a bit worse. the dealers took only 37.4 but for reopening and considering everyt

finally wondering why he is at an etf conference if he's launching an etf this year in conjunction withtate street actively managed bonds and wondering why? that's where the money is going, he told us. we'll have state street's jim roth on in the mention hour to talk about that big trend, money managers getting into the etf business. scott, very interesting interview as always. back to you. >> thanks for bringing it to us, bob. pete, so there's a number of things we can hit here. thinks u.s. stocks will outperform. relative to europe. we've debated that topic on the program as well in the last couple days. in the aftermath of the ecb. and there's also the gold play that he believes gold is going to go higher. take either one. >> i agree with jeff on both counts. i specifically, you know, when he talks about the u.s. stocks i believe in that story for all the reasons that he laid out there. i think there's a lot of reasons why right now the u.s. is going to outpace europe and i think eventually europe then starts to pick up and i think that's probably six months to a year out. although w

the wisdom tree etf. >> cisco. not the tech.d distributor. >> power starts right now. >>> "halftime" is over. "power lunch" and the second half of the trading day start now. >> buckle up, folks. welcome to "power lunch." it's a busy friday for president obama. he wants to tax your 529 plan. new tacks on the way. potentially. he says only the wealthy are really making use of 529s. how about big news from big cap stocks? we've got news on mcdonald's, gm, general electric, and a miss from ups and a call from one significant investor, hike the dividend on general motors. it's already pretty dog gone plump. who wants to take it higher

etfs. >> no doubt about it.il is not paying the dif divide dividend. oih is. big companies, they are not going out of business soon. companies could cut dividends if profits are hit, but it's too early for that. concentrate on the fact you get more for your money, particularly compared to u.s. treasuries. >> jim, miles. so a lot of the smart money missed the movement of oil. the only smart money that i know that actually found it was zac at point state capital. >> making a billion dollars. >> yeah. >> this year. >> yeah, yeah. >> yeah. >> and i actually tried to give him money, but he would not take it. >> you can give me money. >> what's interesting, i guess the question to you is, where is the smart money today? are they of the mind set that one year from now oil is up from where it is today? is it up materially? >> i think they will be soon. i think it's funny you mention smart money. i think the smart money is going to start to gravitate towards the names, towards the dividends, but not yet towards oil. it i

between them they own 90% of the whole etf business.es are saying wait a minute the train is leaving the station. this year i think you'll see some big purchases. i think you'll see a fidelity. i think maybe a franklin templeton. maybe overseas companies like hsbc, or some other ones. maybe even some big asset managers. maybe a mario gabelli or someone like john calamos might be interested in that. how about maybe hedge funds getting into this buying an etf and trying to spin it off. don't count out the hedge funds. they're here this year. the big talk is jeff dunnlock. he's teaming up with state street to create an actively managed bond fund. sound familiar? there's not much success in active management in etfs, but now you're going to start seeing it because it's the last face that hasn't been cannibalized. they'll be picking the bonds. the sponsor will be state street. we'll be talking with state street tomorrow about that. i that haven't had a lot of success. the only one that's been successful, of course is pimco's bond b-o-n-d. fo

. >>> investors piling a ton of money into etf's. pasani who has perfect timing is in sunny hollywood, california, with some of the details on that. hey, bob. >> just out at the right moment sue. we're all trying to figure out how we're going to get home again. the bottom line is this is the biggest etf conference in the world. 2,000 investment professionals trying to figure out how to make money for their clients. i'm swroined by dan draper. he runs power shares. this is one of the big four etf's. he knows what he is talking about. smart beta says why should everything be market cap weighted like the s&p 500? you can weight inteks other ways and make more money. what's the argument? is there a real reason i should consider something else other than looking at a market cap weighted index? >> >>. >> it'sover eighty stuff that might be -- >> the russell 1,000, which has big cap index. the s&p 500 is a market cap weighted and the sim bomb is eqal. why equal weighted? why do we need an equal weight index in can you show that would outper

but for the public, you have good etfs to trade. people have to take advantage. >> the fed meeting started today. we get at least some announcements tomorrow. do you think any of this is coming into play right here and now? is this bounce you're talking about somewhat predicated by we have a fed if you listen to caterpillar, it has to pull back? >> i think the fed has told us, i think dr. yellen told us a couple weeks ago that she was going to do nothing until after at least the second meeting. i think they will do nothing until after this meeting. i don't think the fed does anything until later in the year at best. the problem that you have is that all of the other central banks have been easing monetary policy aggressively, even surprisingly having the bank of canada doing the same. that was the support for the dollar. but at some point, i think it's nothing but a short covering rally in the euro having gotten far too aggressively oversold and i think if we try to give too much credence or take into consideration too much what the

you can buy and sells the etf in that window.ual fund you put in your order don't get filled until after the close. for all these reasons we think people realize it's the 21st century, new technology and time to put away the black and white televisions. >> talk to us about what you are, you know, trying to make sense of this rubik's cube as it continues to switch colors with interest rates going lower, currencies going lower for the most part stocks volatile where -- what's going on here do you think? >> the market is trading off oil. typically look at an instrument take its cue, to some extent trading off the ruble in the sense of instability but what now it's trading off is the january 22nd. the ecb will meet mario draghi romancing the market for seven months with words, now the market wants action. they want to see if they can seal the deal announce bond buying, announce qe how large it's going to be and how you will implement it. the court in europe ruled yesterday that he has legal authority do it. the swiss are getting away

gerri: but talk about the low-cost fund it could be the etf for the mutual-fund but what are the feeswhat should i be willing to pay for the mutual fund? >> it depends on the international fund you will pay more because it is more complicated purses' the large cap u.s. equity funds is lower-cost. gerri: give me the range. what deal like? >> what we find is the average is 50 or 60 basis points for the u.s. stock fund across all plants if it is smaller you will have though lower-cost options because the fees paid for the overall cost. the small plants have certain overhead they have to cover. if you are a larger employer you will have access to more lower-cost funds. but the thieves have been trending down. gerri: day you have this on your web site? >> we do ici.org. gerri: if you think your for a while -- or for a 1k is not up to snuff maybe you don't have said decent employer match then go to ici.org and ask for a better deal if it is of great way to do it. great to have you here. gerri: you ever feel you don't have the money put away for retirement? you are not alone according to a n

. >> when you say specific names, would it be safer to go for an etf like the xle? xle sort of hit bottom last year, sort of around, i think, october 15th. and it's come back -- sorry, excuse me, sorry, bottomed around mid-december. it's a little bit higher than where it was there, but would you go for individual names, or would you buy into an etf like that? >> currently i'd go with individual names, mandy. i think the index would work if we get a rally in oil prices, in that case all the stocks most likely would work, in particular the most leveraged, beaten-up names. given the current commodity environment and we're seeing some stabilization in oil prices over the last two days, i think you want to go with names that are going into this with strong balance sheets, still show some production growth over the next year to two years and still have good upside even using commodity prices close to the current futures. >> so these are ones that you said earlier do not depend necessarily on rising oil prices to do well. we just put up a list of your buys. why don't you p

is flowing into the etf business. guys, back to you. >> bob, he has personally seen some inflows to that effect. we will see what his aspirations are in the etf industry. bob pisani with jeff gundslach. more than a foot of half of snow dumped on boston, providence and the northeast and that number is only going to keep climbing. the weather channel is live in boston with the latest. chris? >> yeah, hey, kayla. we have about 18 inches of snow here in boston. but in the surrounding area, people are reporting upwards of 30 inches of snow. you know, some folks have talked about this storm being a disappointment in new york city, but it is anything but here. boston has been in the cross hairs and down providence up into new hampshire and maine. the snow tps continues to fall. when i think things are starting to let up a little bit it intensifies as the heavy bands of snow continue to come off the ocean and pound the boston area with all of this snowfall. now accompanying this, also, high winds. we saw a lot higher winds ea

the etf attracts the bond market. >> this is one interesting as a set up into the ecb.here's been no shortage of reasons to buy u.s. treasures when you think about how weak a lot of the global data is and then how we are being treated as a safe haven country if you think about it for all intents and purposes when you think about the move in the dollar. when i think about the potential for ecb raising rates. so we have that next week. we'll have january 28th an fomc meeting and then this is a really important one, out in marchand this is important for the trade i put on today we'll have another meeting. if we continue to see the jobs data that we have, if there's any hint of wage inflation over the next couple of months as we go to that march meeting and we also have ecb, qe in a big way, i think the tlt, i think u.s. treasuries are in for a fall and i think that the markets are going to start pricing in higher rates quicker than people think. so to me, i'll just tell you what the trade was simply. i took a look at the tlt. i looked out to march. when it was 13370 i brou

that's a massive move for a bond etf. this trade is down 50 cents.cifically look to march, because i want some other things to play out here, jobs data and a fed meeting next week. to me, i think you stay put here. i think the strikes are the right strikes here. i like owning this march 130 put. >> what do you think? >> we made record lows this week in the 30 year treasury. ten years bouncing around at 18. i think it is a money flow issue, an issue spread versus blends. it is tough for u.s. rates to move higher when the rest of the world is so much below. >> i think that's the biggest point we need to -- we look at low rates and assume, they can only go higher from here. don't forget, the ten year was lower than it is right now. there is room for those yields to drop further. when you keep pushing money into the system, pushing the long end of the curve down, that will keep the yield suppressed. >> last week carter and i got into starbucks. take a listen. >> it just today put its head up above the top of the line and closed at 83. the implications ar

when you take a look at the emerging markets, you can buy an emerging market etf which can be very good. we're not against etfs, but if you take a look at that we'd believe there would be a big divergence this year between the commodity oriented countries and the the commodity consuming countries. we suggest to look at the mutual fund that you own anderer err toward. it's very critical. >> stock picks, they are u.s. stocks beginning with one of the big megacaps in tech oracle. why do you like it? >> we like oracle. if you think about the headlines last year the data breaches we saw for large companies and the twitter feeds and social networks that was about data security. oracle is the leading company in data based management. they were a little slow to get to the cloud. we think they're catching up. we think they're making the right moves but data-based security is going to be critical going forward and oracle is the leader in that industry. >> you also like express scripts because of their efficiency. >> we like their efficiencies and one of the things we're looking at as your viewers

it is not just a question of showing up and buying an etf anymore. you have do some work in terms of the average investors. >> not to mention valuations are running higher here. >> interest rates. we've been talking about when the fed is going to hike trr constitutional rights and how it effects the overall economy. i think investors are still waiting verifaciently and they have to continue to pate. a there are still stocks that pay very good dividends. >> nobody picked strong dollar for the top themes. >>> one thing that certainly has been working is the strength of the u.s. consumer. retail names are up double digits in the last three months. dom chu with the winners. >> picking up themes you were chatting about. maybe the lower fuel prices provide more money in the wallets for consumers. if you look at the retail rock stars over the fourth quarter of last year. these with retail stocks that have momentum. first of all lowe's up 30% in the fourth quarter. those kind of stocks do well. then lbrands. huge in terms of specialty appar apparel. niche. a

he's keeping an eye on the energy etf. he would stay away from is some shale, oil, gas companies until there's some semblance of stability. there are a lot of different things to watch. >> market intelligence at market fi.com. we want to hear from you with rates set to rise in 2015. is the u.s. still the best place to invest? you can go to cnbc.com to weigh in. and you think the u.s. is the best place. >> i still think so. i'm going to say with the fortress america theme. yobt like emerging markets. europe could be interesting if mario draghi pulls out the bazooka. but if he doesn't it could be a disappointment as well. >> some of germany's debt went negative for the first time ever. >> there are seven countries around the world with interest rates higher than the u.s. and they include india, brazil. some are going negative. you've got to pay the government if you want to lend them money which is scary when it comes to deflation. >> what about rates here in the united states? because the -- losing trade last year was rates

it's a good etf. it tracks dollar strength. clearly, as you point out, equities are not feeling the pressure from the strong dollar. so far the dollar's note has been very sizable compared to normal. these moves that we're talking about in currencies with 1% today for the euro dollar are something. that's unusual. you can imagine how crazy it was to see the swiss frank surge 30% on the back of the surprise announcement. i was joking with one of our guests about the fact that i was there maybe just maybe the chances are higher now. don't you think? >> certainly more wall street firms are joining the chorus calling for euro dollar parody, which would be still another 13.5%, 13% move from here. lower for the euro, stronger for the u.s. dollar. a lot of folks look at the swiss franc moving the euro to the floor as a signal that the ecb was definitely going to go ahead with qe it's a crowded strayed treyed. it's because of ecb qe or the swiss are though longer going to be buyers of that. it's crowded. beware of any snap back in the

we get paid every single month off our high yield etf, you know?ut a 12.5% total return with a two-and-a-half year duration. i don't know of any stock market that's going to return that for you month in and month out. and with the contagion in the high yield market, it's a huge market between bonds and loans, about $3 trillion, there's a lot to do. if you can't find 70-100 securities with that kind of safety with those kind of numbers, then you're looking in the wrong places. liz: well, you like titan international, again, the bonds of these, and you also like iam gold which is a mid-tier mining company. what kind of returns do you see with these two names? >> absolutely. titan is just over 10%. again, look at caterpillar. the new issue market or the new product market is slowing dramatically, so titan makes secondary market tires and wheels. people aren't going to buy new tractors and farm equipment, so they're going to replace their tires and wheels, and it's a great thing. it's just been marked down 15 points not because of anything fundamental

so far this year the home building etf, the itb is down nearly 4%. coming up next, what is the best way to make money in housing? the stop analyst is going to be joining us with four top picks. plus, outrage to some big college savers. details ahead. >> boone pickens coming up. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro. wall isn't a street... return on investment isn't the only return i'm looking forward to. for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal

i know you like, for example, the vanguard health care etf.haven't talked about health care in the past couple of days, but why do you feel this is a sector that's poised to run? >> um, when we look at health care and when we go back to our thesis that we have a slowing economic environment globally, investors are probably going to be willing to pay more of a premium for some of the defensive sectors. so we have health care currently has lower valuations than both utilities and the consumer staples -- liz: could i just jump in? this etf is president bush at its 52-week -- is pretty much at its 52-week highs. shouldn't you take profits off the table? >> still we would continue to go with it. it's not overly owned, and the cash flows remain quite strong, and the earnings growth is projected to be quite strong for 2015. even though it is more expensive in terms of how close it is to its 52-week high, we're still favorable on it. david: bob iaccino, i'm looking out the window on sixth avenue in new new york, it reminds me n awful weekend in chicag

we are going to be speaking now with bloomberg etf analyst eric bautunis. etf's, it is not just one you have to underline, but also companies involved. >> that's right. there is a multitude of ways to play this. that is part of the problem. there is no direct way to play oil prices, unless you store oil in the backyard. you can track futures contracts, which don't perfectly track the price of oil. this tracks near month futures of oil and it has sensitivity to the short-term movement in oil. over the long-term because you are managing the futures contract and you have to roll from one month to the next and a lot of times the next month is higher, overtime the role cost corrodes the return. spot oil was down, it was up 77%, u.s. oil was up 10% that year. even though short-term -- over the long term, it is a big differential. that is why people should beware as buyers. >> what is that on the downside? >> it is a good point. it captures a little more of the downside. you get burned a little harder on the downside. >> does it affect the creation of demand for t

you can buy oil as an etf. uso is the symbol these days. you don't like that.you advise people buy the energy stocks and not the oil itself? >> my biggest concern about playing commodities in the kind of etf world is the shape of the curve and we don't need to get into the details affects that and the way the shape of the curve is now it's costing you almost 2% a month to own, just own it. so if the price is flat you're down 20% over the next -- >> so you're rolling into the futures contracts an it's costing you money. the one sector you would own, oil production. >> quality names where the cost of production is below even the $45 of today. >> that would be the xop, right? >> yes. >> jan, nice to see you. i will be here for the neck two days while you are digging out up in new york talking about what kind of investments are hot for 2015. back to you. >> dually noted, bob. our thanks to jan. more is available on cnbc.com. bob has some great trends going on in this world which is quickly changing the entire investment landscape. we've got less than half an hour n

you know what i found interesting, the short interest on the etfs.t was the lowest level in 14 months. the bears are gone. the bears got wiped out. i think we will move much higher here. hit new highs. charles: some people would say that's not a good sign. particularly when it's an individual. considering how bad the experts have been, jim. maybe it's a sign i they were wrong last year. maybe they were wrong for backing out. >> you were telling people not to panic. i think the last couple of days has been keep a steady head about you. the sell-off was orderly. i look at the rally nine out of the ten sectors up 4%. there was no panic selling. people weren't going crazy. steady oil. doveish fed comment. even talking about other central banks doing what it will take. we will have a nice environment. i like what the market did. charles: speaking of which, hitha, it was orderly, and it's hard to say 500 points down then up was orderly, it never felt like a panic. the experts were calm. >> you see these good job numbers. you saw what happened with retail.

they are going to cut some cost, may be etf will go up eventually and the paypal spinoff seems more certain. >> nobody on the street brought this up but there is clear competitive risk that is accelerating. amazon and ali baba. those companies are starting to have a material impact on ebay. this was a turnaround story. they led a very successful consumer pivot. >> five years ago, negative sales growth. >> he came in, turned it around. and this year, they hit a wall. our sense is that there were not any more low hanging fruit to pick. those assets out there international markets like russia, it really started to snow ball and they are having a negative impact. they had a google algorithm change. >> you mentioned this in your wonderful note this morning. what is the relationship with ebay and google? >> ebay, showing up in the paid organic search results. the users that depended on google for a lot of traffic, when they make those tweaks, they view your traffic as lower quality, you will get less traffic. the google machine out there the ultimate arbiter of what good and bad on the internet s

very heavy volume in the big stock etfs and bond etfs and 52-week highs on a bunch of them and the marketelds stay low for a long time throughout the year. that's what the market is saying right now. >> just like jeremy hill same thing. >> i agree. >> thank you very much. bob, thanks as always. we are going out after a wild tug of war between the bulls and the bears on the tuesday, the dow down about 120 points. with the s&p down 17. stay tuned now. the second hour of "the closing bell" with kelly evans. see you tomorrow. >>> thank you bill. welcome to "the closing bell," everybody. i'm kelly evans. another tough session on wall street. a look there at one point in the last hour the dow down less than 50 points and might be positive. not the case on the close. the dow, another triple digit decline. off 133. i bring that up because if we had back to back decline of 1% on the index, it is more significant from a historical point of view. the s&p giving up 18 points. nasdaq, underperformer despite the stronger moves there from the likes of alibaba. talking about that. joining me now in the p

but at the same time he's in etf, his company's in etf in housing.blasts all of them down and then you can buy lennar when the smoke clears. but the etfs more powerful than any individual performance. >> all right. meantime clippershipotle was not front of mind but company clarifying the pork supply situation that we talked about yesterday calling it fundamentally animal welfare decision, washington saying if they grow as quickly as they are not the last time they're going to have decisions to make like this. >> i think if you go to the website and look at some of their feature videos that they've done all excellent, they're dragging the whole agricultural complex into making stuff for them. and i can tell you, from happen to be -- i happen to be a vicious competitor of chipotle with my bar san miguel. >> they're shi think. on the call we'll crush cramer. i have to tell you, they have to get farmers to go their way and doing. a farm woodstock thing going on. my favorite cfo in the world said over and over look we can pull up this industry. we can mak

a lot of people say, give me index funds you're giving me etfs. i can do this on my own and not pay your hefty fee. >> that is very good question and here the key. when you hire a financial advisor we have the report on edelmen dot-com. there are eight tee questions to ask. the first question how are you licensed? gerri: what do you do for living? >> are you registered investment advisor. how are you compensated? you want to understand is this advisor a fiduciary. gerri: even if you ask the question sometimes you don't get a real answer. >> you should. transparency is critical in this industry right now. fees need to be shown. if there are fiduciary by law they need to be transparent and show the fees. gerri: hopefully they are a fiduciary. >> and tell you if there is conflict of interest. very important. gerri: i mentioned 1%. i think a lot of people don't realize, you shouldn't be paying more than 1% to your financial advisor, right? >> first of all that is easy to say but i don't totally agree with you. depend on size of account. on smaller acc

as far as traders, making off like bandits etfs are up and up. i think we'll see more and more automation not just in finance but across the entire economy. melissa: like we said, the first order of business for senate republican is the keystone pipeline. republicans are pitching the bill as a plan to create more jobs. the third ranking senate democrat takes issue with that. listen. >> our republican colleagues say this is a jobs bill but that's really not true at all. by most estimates it would create several thousand temporary construction jobs and only 35, 35 permanent jobs. melissa: i mean i love how everybody plays with those numbers. that ignores the idea that cheaper energy brings manufacturing back to this country. >> melissa this is the democrats position on keystone now that is only creates 35 permanent jobs. this is a laughable argument. this is a construction project right? construction projects end. and the jobs go elsewhere. meanwhile barack obama is going to be running around the country over next three days giving speeches for ask

the etf tracking the index about 120% higher in the past two years. get ready for a big search in biotech ipos over the next week. the biggest surge ever is if the sign of a bubble, a frothy market? containing the measles in america from california to the midwest. measles are back. what you need to know to protect your family. all that and more this hour of power. first, to sue, at cnbchq. >> stocks under pressure today, all about earnings. the impact of the strong dollar the continued drop in oil, and so let's get you up to date on numbers with the dow jones industrial average now in the green by about 43 points. nasdaq composite down 12 and s&p 500 is fractionally lower less than a tenth percent. mcdonalds is higher after replacing its ceo, and boeing continues higher after the strong earnings. in the commodities sector, oil is the big story this hour. crude hitting a six year low, dipping below the $44 per barrel mark, and brent held up better than west texas intermediate's high. that's what they watch this hour. >> thank you, sue. crude in the $40

eog, mckesson, apple, vxx which is a volatility etf and also holding 20% cash.hy is this portfolio going to get you to the top again. >> this really is just going to get me through early january which is all i'm trying to do. it is a neutral position right now. so i have a thesis in 2015, which is rent the consensus, don't own it. and that is one of the things that helped me in 2014. there was a time where i made the foolish call like others, let's go with the rate trade. i got long the tbt but i rented it. i didn't own the consensus if you think back to the liquidation when ten year yields went to lows in october. thats the liquidation. i'm renting on the belief i think apple is going to have a spectacular earnings in january. probably three four weeks after i might lick date hello. >> so you roled those from last year. >> and mckesson. >> so you're making it clear you are planning on being an active trader. >> of course i will. i think that's the point of this show. i'm not as active as others may be but there is a hybrid model i believe in being active and pa

the ticker is uup, the dollar bull etf, if you believe the u.s. dollar will continue to string strengthen, not recommending it, but it's the most widely traded of the dollar bull etfs. >> what has gotten hit more, canadian dollar or the aussie dollar? >> that, i don't know. we'll be right back. >>> tonight harry smith takes a look at how legal marijuana is impacting colorado. it's tonight 9 o:00 eastern onl on cnbc. >> let's take a look at the santa claus rally. today is the last day of the santa claus rally. and it hasn't really been a rally at all. the s&p is down about 3%. when was the last time -- worst santa claus rally, 1999. there you go. meantime the euro drop to go a new nine year low. what does it all mean for the large cap investor? let's bring in scott. thank you very much for joining us. maybe you can settle a question we were debating earlier on and that is to what degree the stronger dollar will hurt a number of these multinational large caps. because he i know a lot are hedged, but not necessarily fully. >> i think the market might

>> no, but i would like you to look at pgj -- gerri: etfs here. pgga -- >> pgj. gerri: all right.ok at china, you're saying because they've probably been sold off and sold off hard, right? >> absolutely. they're the a consumer economy very close to the u.s. i believe they're on their way to 60% -- gerri: except they're 20 years behind there's that. here's one of my problems with people getting into the market now and the way you approach it. there are numbers out from a company where an individual investor goes to track how their investments are doing online. it's an app. it's a very good app. they say that people don't make what the market reports every year. in fact, if the market is up a lot, people may get only a percentage of that return. take a look at these numbers. we lag thearket, s&p 500 in 2014 was up 13.5%. the median investor was up 4.2. what are we doing wrong? where's the disconnect? >> well let's take a look the last two years. one of the hottest sectors out there was crude oil, and guess what? everybody filed into crude oil and you're not diversified enough -- ger

. >>> incredible bond rally continues as the tlt bond etf hit another record high. one big trader thinks it's time to look the other way. >> yeah, one big trader is disagreeing. but here's the thing. options volume ran three times average daily volume. and there was a massive trade. a big roll actually. a bearish roll, etf was 133.65, trader sold 40,000 of the puts to close and bought $40,000 of the february 128 puts paying 76 cents. that's $3 million in premium. and the break even is down about 5% on february expiration. when you think about it here, the bond trade has been a one way trade and this is a ten year chart of the tlt. here is this breakout we've just had. when you think about it, implied roll tilt is also the price of options has come back up to the highs from that october spike that we saw. so to me, this is one way to make possible a cheap bet rates will actually go higher an tfte such a big move. >> what say you about the direction at this point? >> they're still going lower. not that they can't have a retracement, but i think interest rates in the u

>> it is, david two, specific etf's, one by power shares and wisdom tree. the uup is specific to developed nations, it's going to have more effect by declining dollar and it's done very, very well. the wisdom tree more emerging market balance, usdu, great opportunities. even if you have money market, it kicks off a little yield. and if you feel that this dollar appreciation, euro decline is in the early innings, it makes sense to diversify there. liz: you got to lot of dollar. there's the play for that one. eric, before we go, do you see a black swan out there on the international landscape that tells you to stay u.s.? >> you know, not necessarily, but i do think that the u.s. is much better shape. and when you look at the earnings power of the companies in the u.s. economy, we see opportunities out there for owning productive assets that make sense, even in this environment. david: okay, guys, very quickly, who's it going to be? starting with tom lydon on sunday? >> patriots, 28-21. david: wow, even a score. eric, what do you think? . >> the super bowl ind

how did 2014 fair in the huge world of etfs? in december into equity etfs. we put out a cautionary note. typically the market is suffering what it's suffering now. however, over the last week we've seen over 10 billion in outflows from u.s. equity etfs which is somewhat bullish. >> why is that? >> corrects the excesses. the other point, we track supply and demand. we track actual share count. actual share count is down 1.8%. >> so there's fewer pickings? >> yes, fewer shares. once the excess -- you know all that money went in and no new money coming everybody wanted to be fully invested before january 1, so everybody was. there was no new money. people panicked a little. they sold. now supply and demand more money chasing fewer shares should start to work again. >> let's specifically drill down on energy etfs. huge flows but a bit counter intuitive as to how it's effected the marketplace. your thoughts and numbers. >> to me it's been amazing that the commodity saw over $400 million in inflows in the first week of january. that's

>> it is an etf. it is still in the correct sector. this etf goes up.entry point here. stuart: we will spend money at those retail outlets. that is your premise? >> yes. that is the premise. the u.s. consumer is getting a little bit of detail went. stuart: and better go up. thank you very much. i have an amazing story of determination for you. just their bare hands. hands and feet straight up. perhaps the most difficult free climbed anywhere. ropes were only used to protect them from falling. the mac pretty devastated. the thought crossed my mind that i should just throw in the towel. then i thought about how much time i had put in it so far. six years. what is a few more days. stuart: outside magazine correspondent. this is made into a very big deal. was it straight up with virtually no where to put your hands and feet? >> hi, stuart. not quite. they had to sort of navigate their way up. this is a little bit of an exaggeration. we are going to make machines so people can fly. fifty years later, two guys figuring out how to do the same bang without the

. >> mlpn it's an etf like investment that's tied to oil and gas pipelines which continue to do well despite the drop in the oil price. >> okay. ben, what do you got? >> i'm going to do my indexing as usual vti extremely broad index of stocks done very, very well. hard to beat it by picking. >> for you this is always a long-term strategy right? ignore the gyrations short term. >> i don't have as long as adam does, but for my children and grandchildren. >> who must be can a change every day of their lives. "forbes on fox." >>> it makes no sense to spend $3 million per prisoner to keep open a prison that the world con dems and terrorists use to recruit. it's time to close get bow. >> the president doubling down on his promise to shut down gitmo, he says it will save lives and money, but aren't released fwit mow detainees who go back to the battlefield costing all of us a lot more in the long run? we will come to "forbes on fox" let's go with mr. steve forbes, saab brianna shaver and rick younger and more. >> steve let's talk about the costs now and clearly a lot of those detainees from