we have mike holland, chairman of holland and company, and steve grasso, director of institutional sales. you're all mark ledge e egendle. the bulls continue to stampede over the doubters, jimmy. what's your stock market position? are you long here? it doesn't look like this is going stop. >> larry, this is 2012. there's an election in november. there's an election in france. there are 40 elections this year. the germans are having an election a year from now. you will see a lot of good news and a lot of money being spent. a lot of money being sprinted. yes, this year's fine. worry about 2013. be panicked about 2014, but this year, a lot of good news is coming out. >> jimmy, you didn't exactly, my old friend, answer the question. are you long stocks and if so, where? and if not, why. >> my way to play, there's more than one way to skin a cat, larry. i'm skinning this cat with commodities. you see what's happening to gold. you see what's happening and oil went down today, but yes, oil's been going through the roof. there are other ways to play. they're printing a lot of money, larry, when

mike holland and keith mcculla. thanks for the update.ext up, the american embassy in syria shut down. saber rattling between israel and iran heats up. are we going to see another military conflict in that region and might it blow up the whole financial markets? "the kudlow report" will be right back. ( today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. the two trains and a bus to the 5:00 arider.holar. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be. ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. >>> the american embassy in syria is shut down tonight, tightening the sq

investment pro mike holland says they're making an observation about the bond market, one that holland agrees with. >> the reason it's important is he's observing that when you buy a 10-year treasury or 30-year treasury, you lose money every day you own it. >> reporter: what are these guys talking about? aren't u.s. bonds supposed to be safe? here's the problem. a 10-year bond yields less than 2% these days. and, most of us would agree inflation is about 3%. so even if you hold that bond to maturity, your purchasing power erodes. simply put, you lose. experts say the potential loss for bond fund investors is even worse. and that's worrisome because investors are gobbling up bond funds like it's their last meal. >> if you own a bond fund you should probably sell it. if you're in a bond fund and if bond prices go down as interest rates go up you are locked into that loss, you never get it back. >> reporter: to be clear, what buffett and others are saying may not happen today, tomorrow or next month. you might not lose money right away. but, they still believe bonds are a very risky place

president of overweiss asset management and mike holland with us as well. to see you both. >> pleasure. >> mike, i'm going to start with you because last year was a tough year for china. but you're making the argument that that is really the opportunity that needs to be seized. you're very bullish on china. >> yeah. it's all about valuations, sue. as you pointed out a few minutes ago, the market year over year is down 16% for the best acting economy in the world with mid-teens kind of growth and profitability for the companies. so you now have a market that's 10, 11 times earnings over there. great companies. we all know the problems. and we know the things that might have happened. the hard landing is one thing that did not happen. so we have an opportunity here to buy -- i've been going over there for a long time, this is about as attractive risk/reward i've seen. >> jim's nodding in agreement. you also think it's about valuation. some are pretty compelling, but what are the risks to the china story? >> the mitigation eliminates a lot of the risk in the l

. >> mike holland, we are still, however, in this big move since october or since early october, and some people have pointed out that the increase in stocks now is about par for the course, for this kind of run-up so i ask you how investors should play this. is this a pull-back moment or is this a stay-long moment? >> for my money, larry, a stay-long moment. we talked about the last several months valuation, michael farr and i have coincided on this. the valuation for a lot of the great properties around the world are at such low valuations, ridiculously cheap is the phrase you and i have used. apple computer, short the stock as you know, i always pay attention to doug, the stock at a major move up over 20%, but still -- $500 stock with $100 in cash will earn $50 for one of the world's great companies. so it's up a lot probably could pull back any moment, but the fact is it's ten times before you take the cash out these are crazy numbers. >> michael farr, what is your best guess on spec ific investo stocks. let's get down to brass tacks. >> you're hurting, the techs have been great