back with the ceo of stifel nicolaus and michael farr. farr, miller and washington., i want to go back. the third quarter gdp is history. okay? i get that. that quarter ended in september. it sometimes tells you a little bit about the future, first of all, a big number. looking in here, consumer spending was revised up. that has to be positive. one area that worries me is the job creator, business investment was also revised up significantly. now, you know, it's the internals of the economy. profit is up 5.7% that will carry it forward ultimately. what's your take on all this? are we going to have a stronger 2014? >> look, larry, first of all, that was a strong upward revision. though a lot of it was inventory driven. it's 4% or greater than 4% and that's powerful. if you look forward to 2014, look, we're up 28%. you know, 25% of that's multiple expansion. we need to see this economy go from fed liquidity and policy life support to main street prosperity. and if we can do that, then, yeah, this market can go further. but it's going to be driven by earnings, larry, no

of farr miller and washington. to the program. let's run down your top picks. you chose cbs, slumber j, full come, united technologies and accenture. >> cvs, a terrific company. we have 30 million people uninsured whack sees to prescription plans now. question have the growing older part of the demographic, people over 65 continue to increase as a portion of the population by about 13%. over the next 20 years. the stock is trading at 16 times earnings. growing earnings at about 13.5%. they pay 1.5% or better as a dividend while you wait. so as a domestic stock i think, it's hard to find a cheap, cheap stock right now, there's value in cvs and particularly the growing sales. >> be your next pick, has the roughly same p, and same dividend. schlumberger. >> a company that hasn't had a lot of pricing power. they've struggled with it. it will improve a global international company. again 15 times earnings, increasing in growing earnings at a 16% rate for the next few years our analysts think with 1.4% dividend. you grow

kristine that carniva and laura farr? you each have two minutes. p >> good evening, everyone, cristina, or canaveral, either way is fine, please ex-excuse my super stylish wardrobe. i am here to talk about athrough g, and we are excited to see this move forward. and temporarily, we are glad this is not permanent, what is key is what happens after tonight? >> we know that in the past four years there was not a physical plan and so now we have the opportunity to develop that fiscal plan and we have the opportunity with a, through, g and with common core and with lcff and everything that is coming down the road, we have almost like, as bill puts it a perfect storm and an opportunity to really look at how we can reshape our children he education and so that we take advantage that have particularly in the next two years to make sure that the next class, 2016, 2017 and beyond, they are not getting reactive measure to catch up, but they are already there and graduating with honors and going on to college, thank you. >> thank you, for picking us. and i'm t

joining us right now is michael farr. thanks for being here today. >> thank you. great to be here. >> is good news finally good news for the market? is that what we're seeing? >> maybe. it doesn't feel that way. good news helped us on friday. markets were stronger. that was after five consistent down someddays. i think good news in the economy means that the fed may start to taper a little bit sooner. this is a market that's been supported by fed money and therefore i think we're going to have kind of a bumpy transition into tapering. once it starts to taper, i think there's enough cash on the sidelines that we could continue to fuel a positive market for a while. i wouldn't say good news is good news quite yet, but stay tuned. we've got a transition to get through. >> it does seem like the bond market has been driving things. if you want to know where stocks are headed just look at the yield on the tenure. you can figure stocks are headed in the opposition direction. we've been seeing steadily climb over the three or four months. maybe that's a good thing. maybe

kevin vargus and mahea, trillan and soloman and kelley, sacarios and yes, farr. i think that we already heard from her, actually. >> and so four minutes starting now. go. >> suspension for the campaign and we go to the school to get educated and the teachers are there to get us on track and principals are supposed to support the teachers instead they are suspending us for not bringing a pencil or laughing too loud in class, they shove us away and taking away the education they are supposed to giving us, don't suspend me educate me. >> for me, the solution is not suspensions but it is important because i want to see my peers graduate and i want to see them on the news for doing something amazing in their life and not because they got shot because they were out with the wrong crowd when she should have been in school. thank you. >> i am reading this on behalf of the youth members, solution and not suspension is important to everyone and as a student it is important to me because it will stop the every day discrimination of students of color, and it will give everyo

bruce springsteen owns hundreds of acres of land but pays little tax because a an organic farr works his land his pour neighbors pay more. >> i don't get anybody trying to lower taxes but bonn jovi and springsteen publicly supporting for obama holding rallies but then cry tax cuts for their riches and they robbed of poverty programs and a social contract with america being destroyed the middle-class is harmed but then you rob those anti-poverty programs by calling yourself a former? that is the hypocrisy that is frustrating to see why i wrote the book calling of these people on their duplicity. john: one final example some of the activists are so eager to promote anti- capitalist they glamorize people like bill ears -- bill ayers they killed people and bombed buildings and obama held a fund-raiser in bill ayers living room so robert redford came out with a movie based on the weather underground that the terrorists are on the run. >> we'd never be trade any of us all these years. >> i saw an interview with him about this movie he is behind it wanted to% it was the good thing. what kin

that station in north dakota has gotten some criticism for putting a fake anchor on his newscast, but farre said last night that a station in san antonio and a station in san diego have reached out inviting him to anger. if that's not enough, emerson college in boston has named its communications school, the ron burgundy school of communication, but just for the day. it's a funny movie, but also very interesting the way they are pre-selling it area movies are about pre-awareness. >> and he seems like that nice guy. >> he was very nice, very low- key, very sedate. expect. you would >> did he make it to the network on this one? >> i think so. he is on cable network and he kills great he kills on cable. >> thank you. nice to see you. smart carswe have and smartphones. how about this -- a smart brought? work?t how it could prevent you from eating too much. >> to serious murders a decade apart. >> more now on the breaking news we brought you at the top of the hour. idc police officers and the middle of a missing d.c. teen investigation. >> what do you know? >> we are told police have been here m

bring in michael farr and joining us here, five-star fund manager bill smeeds. going to get you because you're sitting next to me. do you think we'll see a rally into the end of the year or does all that depend on whether ben bernanke will don that santa claus hat? >> the history of the last two weeks of the year are pretty positive. this is a positive year in you're holding a winning stock and you sell it before the end of the year you have to pay the tax on it next april 15th. if you hold it into january you won't. a natural bias toward holding winners and then there's a natural bias towards selling losers. there just aren't that many stocks that haven't participated this year. >> do the events of tomorrow, the fomc meeting could that skew on what history has told us? >> it could. there's froth in the market. a lot of excitement over a concept stocks and at least this year, small and nasdaq have won compared to more conservative approaches and, therefore, you're always at the risk of a dynamic change in the short run if psychology. >> michael, we're going to l

let's bring in our pentagon correspondent bash ra farr.from mr. newman? >> absolutely. this statement from the elderly war veteran tells of his captors trying to intimidate him, but him finding ways around that. merrill newman is finally back home in california after more than a month in north korean captivity. >> what's the first thing you'll do? >> probably take my shoes off. i'm tired, but ready to be with my family now. >> reporter: in a remarkable news statement, newman himself explains why he think the the north koreans detained him, saying, quote, i've given considerable thought to this and have come to the conclusion that i just didn't understand that, for the north korean regime, the korean war isn't over, and that even innocent remarks about the war can cause big problems if you are a foreigner. newman says he requested for visit an area where korean partisans and anticommunist guerrilla guerrillas and possibly meet with those who were still alive. the new yorkance seemed to have misinterpreted my curiosity as something nor sinis

barbara farr reporting for us, thank you very much. >>> there's other startling developments in the controversyerpreter at nelson mandela's memorial service. brian todd is joining us now. brian, you're getting new information, and it's pretty shocking. >> it is, world. we're learns from the south african network, a cnn affiliate, the man at the center of the translating problem in south africa, he has faced a multitude the criminal charges in the past, including murder, attempted murder, kidnapping, and rape. now what's month to point out is he was found not guilty of murder and rape when he was charged. the network enca got this information from documents given to them by a senior police source in south africa, but again this man faced charges including murder, attempted murder, kidnapping in south africa a number ofiers. he was acquitted of murder in 2006. the document also reslide he was charged with rape, house breaks, malicious damage and murder between the years of 1994 and 19 -- he was found guilty, important to reach that out. reached by the network on friday, he said he did not deny th

. >> michael farr you have clients that have done up x percent whatever in equities.ncrease because we're in the mid all of historic rally. what do you tell them? >> first of all, they like me this year, kelly, which isn't the true at the end of every year. what we say is that it's time to go through your discipline and as good as everything feels discipline will keep you out of trouble over the long term. go back and see if you're over allocated to equities. >> what does over allocated mean. what are the tleeshhresholds. >> if you decided or at the stage where you should have 70% in equities and crept up to 80 or 85% as carl feels, sell it. people are waiting until after january 1 to sell a little because they will push those taxes out the 2015. >> who is buying twitter here? >> a lot of people. >> not me. i realize tech investments aren't your forte give end your market history perspective when you look at twitter you think what? >> when i look at a twitter i think who in god's name is willing to buy this. bill had a wonderful comment when fedex with airplanes and a