jim paulson at wells capital management. he is the bull. and sam is the strategist. let me start with you, sam. you're not an outright bear but you are cautious. what are some of your concerns? >> that's right there. i think what dom said, if you are an investor for the very long term, you want to focus on or worry that resessions and i don't see one on the horizon but these declines of 5 or 10% or more tend to happen more frequently than we might think. whenever we have other a 1,000 point move in the dow, we end up falling into a 5% decline a little more than after the fact. this is first time we've gone more than 2,000 levels without resetting the dial. the last two were 1999 and 2007. also, we typically find that, i would say almost nine times out of ten, the s&p does trade in a negative year to date territory at any point in the year. bat 70% of the time, it happens in the first quarter of the year. valuations or p.e. ratios, if it ended today it would be the second most expensive since world war ii. >> you think the underpinnings are still pretty firm, and that

. >> jim paulson joining us today. up next, we're on the money, spending less an saving more a new year's resolution? a step by step plan to help you create a budget and stick to it. if you're running on empty when it comes to getting in shape, this could be the right time of year to find a gym hey steve check out this guys leg. yeah looks like a real nasty moving back in with his parents. >> check out this guy's bike. >> moving back in with his parents? >> there's a full blown move into the basement, without the money from aflac, you might miss your rent. >> i just missed out. >> i used to have my own place. >> yeah? >> no i lived with my mom, it's cool. keep your lifestyle healthy with aflac. just like the people who own them, every business is different. but every one of those businesses will need legal help as they age and grow. every business is different but every one of the businesses will need legal help as they age and grow, whether it's help starting business o

. >> jim paulson joining us today. up next, we're on the money, spending less an saving more a new year's resolution? a step by step plan to help you create a budget and stick to it. if you're running on empty when it comes to getting in shape, this could be the right time of year to find a gym and why you might want to think tech when you think fit. >>> is getting your finances under control one of your goals for the new year? building a better budget isn't just about saving more, it's also about spending less. joining us now with a step by step plan is personal finance expert. >> thank you for having me. >> what's considered the perfect time for creating a budget? >> start with housing, typically everyone's biggest expense, no more than 30%. that includes your mortgage or your rent and if you own, utilities and your insurance and your real estate taxes, a lot to jam pack in, keep that at that threshold because you have a lot more to spend on and if you have debt, that's the next category we see a lot of people dedica

. >> jim paulson joining us today. up next, we're on the money, spending less an saving more a new year's resolution? a step by step plan to help you create a budget and stick to it. if you're running on empty when it comes to getting in shape, this could be the right time of this could be the right time of year to find a gym and why start the car! start the car! the ikea winter sale. wooooooo! get up to 50% off select items. now through january 10th. ikea my husband wants to stay free from artificial ingredients. my whole family wants to stay free from artificial preservatives. and my debit card wants to stay on a diet. fill your cart with giant's nature's promise brand. great prices on over 800 organic and free-from items. eat well for less. my giant. start the car! start the car! the ikea winter sale. wooooooo! get up to 50% off select items. now through january 10th. ikea hey steve check out this guys leg. yeah looks like a real nasty moving back in with his parents. >> check out this guy's bike. >> moving back in

jim paulson is still here. >> patient. >> you're an investor. strip the politics a little bit out of it. if you're buying a stock, have you ever thought and said, hmm. i like this stock. maybe it's a pharma, but, man, the president could tweet out something or summon the ceo to the white house and i'm toast. >> yeah. he creates a little bit of that risk. >> does that go into your thinking at all? or do you just say if it happens, it happens? i've just got to go on with what i know? >> it's actively small in the aggregate, for the market as a whole. he's not likely to tweet out something that impact the whole market, brian. you have to be somewhat concerned in sector specific bets or even separate name bets that he may take a stand against a stock that you're involved with. and what has been the case thus far, as far as that occurring, is that it's usually been a buying opportunity. tweet hits, the stock sells off. if anything you buy it and it recovers. it wouldn't necessarily have to be that way. i think you kind of know some of the areas that'

join us next week when i'll be talking to sarah paulson, billy eichner, and jim gaffigan james cordenponsored by cbs captioned by media access group at wgbh access.wgbh.org ♪ are you ready y'all to have some fun ♪ feel the love tonight don't you worry 'bout ♪ what you're going through it'll be starlight ♪ it's the late, late show >> reggie: ladies and gentlemen, all the way from appaloosa, georgia, give it up for your host, the one, the only, james