, not your retirement portfolio. it's absolutely worth hunting for the next regenron without hesitation. much more "mad money" ahead. i have the answer to the question on top of investors' minds. stocks or bonds? the age-old wisdom you've heard is wrong and i'm about to rewrite the script. plus the game plan you need to follow in the bear market and it's the most important piece of advivice about financial help i could give you. many of you will have to take action tomorrow. don't miss this. stick with cramer. >>> it's time to address a major issue that i have to admit i don't spend enough time discussing here on "mad money." i'm talking about the question of stocks versus bonds. now, there's good reason why you don't hear me recommending you invest in bonds very often and it's not just because this show is about stocks. the fact is, ever since the great recession interest rates have been held down to incredibly low levels and therefore bond yields like the return you get from owning, say, u.s. treasuries have been a

>> i think you take a step back and look at your overall portfolio. if you own one position that's dominating your overall portfolio and that's driving down your returns you're breaking rule 101 in management portfolio, don't have all your eggs in one basket. diversify among stocks and bonds. >> how much too is much in one stock? >> good question. we manage our clients 2%, 2.5% in one position and try to diversify across different sectors in different industries within client portfolios. >> what about putting a hedge on? maybe not in the options market, certainly. but how would you do it by perhaps adding other stocks to the portfolio that might offset a decline? not necessarily just in apple but maybe another stock that has a larger position. >> great question. if we use apple as an example, there's a technology stock, big cap, big balance sheet, a lot of cash. maybe offset it with something like a hershey's. consumer staple, completely unrelated to the movement of apple and apple's own trends. >> the old cliche is let your winners run and cut your l

the spread between the portfolio and a global portfolio now, it is at high -- hyatt -- higher levels.opean stocks are preferable on a relative basis to the united states, yes? mebane: yes. stocks are different. they are not terrible, it is not a bubble. a lot of the developed world is quite cheap. european stocks coming emerging europe, a lot of countries in europe are super cheap. in end up with a lot more developed countries. you end up in greece and spain and italy but still you have the crossover in russia and brazil. of the bestis one opportunities in the cheap countries. another etf that buys the cheapest companies in the world and as cheap as they have been, although it back to the 1980's, an exceptional time for the chief act that is, you can do double digits in the next five to 10 years. >> what are you seeing for the u.s. dollar, how are you hedging in terms of currency risk where you see currencies weakening for the most part? mebane: if you look at currencies, three main factors driver turned. value, purchasing power, trend, interest rates, and inflation. right now, we say

plus, here's your portfolio. and here's the market.ll tell you how to catch up, when "fast money" returns. overages, ever. ever a get your own 24 / 7 dedicated business account team. and with double the lte coverage in the last year you can get more done in more places. right now get 2 lines with 10 gigs each for just a $100 bucks. and for a limited time get a hot spot free, yeah free. switch your business to t-mobile@work today. imagine if the things you bought every day earned you miles to get to the places you really want to go. with the united mileageplus explorer card, you'll get a free checked bag, 2 united club passes... priority boarding... and 30,000 bonus miles. everything you need for an unforgettable vacation. the united mileageplus explorer card. imagine where it will take you. >>> welcome back to "fast money." charlie sheen making his way back into the headlines. the latest celebrity to release his own line of emojis. the collection features some of his infamous catch phrases. but he's not the only celebrity with a set of

you have a portfolio manager investing this portfolio and rolling these uterus contracts.ous -- these future contracts. previous products did not have that. vonnie: a lot of etf's launch every year. not all of them make it. greg: we think the vix space is a liquid space. vmax is typically used to hedge and s&p portfolio. vmin is more to take the opposite view. vonnie: thank you for joining us today, greg king, ceo of rex shares. coming up in the next 20 minutes ," donaldberg markets trump is the last man standing for the republican presidential nominee. his last opponent will audibly throw in the towel -- will reportedly throw in the towel in a few hours. apple changing its tune on apple music. the company will make sweeping changes after a lack of response to the service. and falling for the ninth time in 10 days. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. time for a look at some of the biggest stories in the news right now. saudi arabia's stock exchange has identified a list of banks -- the shortest includes -- shortlist includes morgan stanley and j.p. mo

it is spread between this high-yield portfolio and a global portfolio.t is at higher levels within emerging market bonds. also emerging stocks a great place to be in 2016. stocks preferable on a relative basis to the united states? >> yeah, stocks is different. stocks in the u.s. are expensive, but it's not terrible. a lot of the developed world is quite cheap. european stocks in a lot of countries, emerging europe, but a lot of countries in europe are super cheap in the developed world, so you end up with a lot more in developed countries. the crossover in russia and brazil. we think this is one of the best opportunities in the cheap countries, so we have another etf that buys the cheapest countries in the world. as cheap as they have been since 2008, 2009, and all the way back to the 1980's -- it is an exceptional time for cheap equities. >> what are you seeing for the u.s. dollar and how are you hedging in terms of currency risk when we see emerging-market currencies weakening? the u.s.now we say dollar is overvalued against most currencies, not terri

and no portfolio we own about 100 securities, no portfolio is going to go 100 for 100. you're always going to find times with the new information you realize that we need to abandon ship. that we need to sell that security, admit we were wrong and move on. that's an ordinary course of the portfolio management function. what is extraordinary in this period is the dichotomy between how companies are doing which in general, our companies -- our portfolio grew 10%. the s&p 500 earnings were down, too. and our stocks went backwards. while there were exceptions and we had mistakes in the portfolio last year, by and large, the companies are doing well. they're doing what they're supposed to be doing, deploying cash flows and building long time value for shareholders. it's the external factors that created the noise. so while we'll question ourselves each and every time we see a stock price dislocate from fundamental value, more times than not that encourages us to either hold on or add to our positions as well as to constructively engage in the companies. >> in particular, of

of walk me through -- my portfolio?alk me through how i should set up. jean: the financial sectors, you need to be quite careful trading with that. consequences on the british pound. beyond that and more generally speaking, what you need to build right now is a portfolio. we have so many decisions like the fed coming in june or july. to need to have a portfolio look through those whatever the outcome of the brexit. at axample, if you look company which is on the verge of emerging right now, sabmiller with ab inbev. you have a very stable share price. is shaving off volatility in your portfolio. a very diversified balance portfolio with companies which are not too dependent on these kind of geopolitical economic risks. guy: we get through july, what is the picture their? u.k., july,ne people are saying the most likely fed decision will come there. talked to me, the rest of the year looks like a pretty bumpy ride -- talk to me, the rest of the year looks like a pretty bumpy right. .ean: stronger volatility we have seen so

that portfolio, that is your transcript of the future.ge the community you will find in one of these places and the facilities, and the labs in order to build that portfolio. emily: khan academy founder and .eo, sal khan as always, great to have you. as i mentioned, "bloomberg west," is heading east. don't miss our coverage. we will be speaking to the boston mayor, here on bloomberg. coming up, big changes afoot for the media industry. we will hear from the ceo of vox media, about why he's creating an entire studio just for snapchat. ♪ emily: on the digital news front, vox media announcing an expansion into television, and making content for the discovery channel on snapchat. traditional news outlet are struggling to keep up revenues, and facebook and other social media are siphoning away dollars. the ceo is here. you are doubling down. why and why now? guest: all of our growth is on mobile, generally. specifically in mobile, is on a few of the big platforms. e-mail is a mobile application. that's why you see us doing more e-mail newslett

is plenty ofere room in the portfolio. the passive piece is a core part of the portfolio.ese individual tolerances of an active approach. as we said earlier, the active portfolios do very well. especially when compared to long-term performance. that is what we're really focused on. carol: on a turn to the fed for a second. as they continue to hold off raising rates, how will that change your strategy? gregory: we are looking at the market now. the market consensus is pricing that in now. get some outside surprise coming in, which we do not anticipate, we think that the market will stay relative. we believe it will stay the course. treasuriesthe through the market. so, we think it will convene. john: quite obviously, the yield picks up on u.s. credit. there is an advantage. there is a story. but, things are pretty tight. i wonder if that is happening too much? gregory: they underperformed on january 3 middle february. they hit a peak with nothing but a strong rally since that time. think thes why we investor credit can begin a fair value, that is it because of the recent ti

>> we've got a real growth portfolio.arkets, but we really need to balance that. and you can't look at bonds anymore. with flat interest rates and negative interest rates in a big part of the country, we needed other strategies to diversify the portfolio. >> but why now? >> again, because i said the low interest rates. >> right, we had low interest rates for really long time, chris. >> we're at 200-year lows in the usa. 300-year lows in the uk. the fact you've got negative interest rates in so many other places. so it really is kind of a factor of coming through '08 doing so poorly in the global financial crisis and really wanted to find ways to diversify out the portfolio. >> so how do you do that? you want to protect your downside and willing perhaps to not get as much upside as you might otherwise. >> you have to give away a little bit obviously to get some of that insurance. so it's interesting when you look at the bond market, the one safe haven in usa or in the world now is 30-year government bonds. not a great inve

at financial portfolio in terms of their ability to pay their bills? you probably didn't expect to get that question when i came into the room i didn't expect to ask a question but that's an example of risk that are dependent on congressional action or inaction and i think it's something to look at. that's a potential looming crisis for some of the farmers out there. i will say if i maybe will follow-up with questions to the agency so we can get specific information on how this could teach stabilizing to the sugar beat growing states that corn growing states the potato growing states in the soybean growing states. it's an equal opportunity disruptor and i think we need to get financial information behind it. >> thank you mr. chair. >> let me say before i recognize senator bennett on behalf of the distinguished ranking member. the responsibility and requirement that mr. tillis is raised with regard to agriculture by a technology. nokia difference is supposed to gmo. this is called agriculture biotechnology, abt. it's a good question and it's a challenge

they feel are attracted for their portfolio. these companies can provide liquidity for the portfolio in times of market volatility. we were able to provide additional return analysis in the memo. since inception, very strong annualized return of 17%. relative to the benchmark this were upless than 10% over this time period. if you turn to page seven, you can see the chart that illustrates the outside return to c5 since inception. it has been able to do this with about half the volatility of benchmark. resulting in strong and suggested returns. relative to a china managers database, it ranks in the top quar tile. it has the lowest volatility and highest suggested returns relative to the database. we would note all returns are net of the standard fee structure. we expect to get more stable returns for san francisco and we outlined some of the details of the new negotiations in the memo. we think c5 has a very strong management team. good investment discipline and excellent performance. we're recommending an investment up to $200 m

it is shocking that nearly half of the portfolio a beach more than $1 million. and it has large established organizations that does not need subsidized credit and it is clear the system has become too large and focused to subsidize a large bar hours per barrel and to ensure the charter is being followed and banks like mine are proud to support the farmers and ranchers in america's banks remain committed through good times and bad. i am happy to answer any questions. >> just a moment. i have to say some others wonderful things on your behalf. [laughter] growing up on a small grain and livestock farm always having the jury to take over the operation with escalating cost beginning his speaking career in the '70s serving in senior management positions in community banks ever since he now serves as a delegate for the northern half of violent for the independent community bankers banks for testifying we welcome your statement. >> dash as you stated unprecedented in a sea of community bank the of old-line -- uelwein i want providing products they need while treating th

you know what it remind me of we have portfolios for 2009 economic crisis where but had portfolios thatlegitimate security co-mental illness with other securities the result the portfolios got contaminated and read to the security market we need some liability funds the can minute idles should be a wake up call we wouldn't want mission bay anything to do that with we're proud to have connections with can mann minute islands and recommend to everyone you wouldn't want to go on night news with that, i am really very suspicious of this whole thing we mentioned the word can minute islands i get a negative reflexion (clapping.) 10 two 20th century 4 i wished the board asked the other question not if you vaccine for hedge funds but being and devils advocate go to the downsize like the transparent or the fees or lack of control of this board or these managers anyway beyond that concerning the rfps and the whole process which seiu is effected how this is done it is fill seems unclear and not a responded to when i talk about well will you had a partner or combination of partners or consultant or

if they sell it with the demand being down to what extent this affect a portfolio, financial portfolio out there in their terms of being able to pay their bills? i don't i expect to ask you question. i frankly don't expect you to get the answer and frankly when i came into the room i didn't expect to ask the question. that those are risks that depend on congressional action or inaction. that is something you need to look at because that is potential looming crisis for some of the farmers out there. if i may i will follow up with questions to the agency so we can get specific information on how this could be destablizing to the sugar beet growing states, corn-growing states, potato-growing states, the soybean-growing states. it is an equal opportunity disruptor around i think we need to get some financial information behind it. thank you. thank you, mr. chair. >> let me say before i recognize senator bennet on behalf of the ranking member, our distinguished ranking member, that the responsibility and requirement that mr. tillis just raised with regards to agriculture, biotechnology, nig

now i don't have apple in any of the portfolios i managed but i have a lot of ibm in my portfolios. a long term investment. >> thank you for joinging us. we appreciate it. >>> stocks are hitting session highs that hour. let's look at the dow 30 stocks right now. we were just talking about apple. it is in fact the biggest gainer on the dow jones industrial average. still it is practically at session highs right now if not at session highs. home depot ahead of earnings is also making some nice gains today on tail end of things, american express, travelers as well as disney. those are the biggest drags on the dow. much more on this market rally when "power lunch" comes back. what are you doing right now? making a cake! ayla reminds me of like a master chef and emiana reminds me of like a monster chef. uh oh. i don't see cake, i just see mess. it's like awful. it feels like i am not actually cleaning it up what's that make mommy do? (doorbell) what's that? swiffer wetjet. so much stuff coming up. this is amazing woah. wow. now i feel more like making a mess is part of growing up. stop c

into your portfolio. and every time he trades, it trades in your account in real time at the same price, proportionally on your thousand. so i he generates another 10% this year, then you would make a hundred dollars on those thousand dollars. >> how do you make money and how does it compare to other brokers. >> we're actually very similar to oh brokers. we regulated by the same. every trade you make on etoro we charge just the spread. the beautiful thing about the model is there is no minimum per trade at all. so suddenly you can copy somebody with a thousand dollars. he can open up a hundred different trades on his account and you will just pay a dollar on those hundred trades. >> you talk about virtual assets. >> real money. >> but you mention virtdal as well. >> any person who opens an etoro account can easily open and get a hundred thousand dollars of virtual money to test the platform. we've had users. >> and also do bit coin, right? >> also do bit coin. we basically offer people to trade on stocks,

. >>> top tech fund looking for china to boost its portfolio in the second half of the year. brett singerland will join us next. >>> the growing influence of snapchat. the company has two million daily views more than facebook. bob peck will join us. >>> and the ceo of interactive brokers on the changing landscape of the brokerage industry and impact of financial regulation. a fair price, quality service, and that horrible smells are really good at hiding. oh, boy. there it is. ♪ ohh. ooh. [ gags ] so when you need a house cleaner or an exterminator, we can help you get the job done right, guaranteed. get started today at angie's list, because your home is where our heart is. ♪ >>> tech stocks hit hard at the start of the year and with that volatility our next guest sought a new strategy, increasing positions in higher growth cloud computing chinese internet names and m & a driven semiconductor stocks while de-emphasizing legacy tech. joining us from san francisco, brad slingerland, portfolio manager for the janus global technology fund. there was a big sell-off especially in

equity portfolio. betty: are you surprised also someyou have seen certainty in filings, but the recent data in the last couple thatys and recommendations people are ratcheting down equity portfolios, they are taking money out of equity. it is a harder and harder case to take equities. are you surprised by that? the contrary in view. a large major asset classes, bonds in the two percent range, and giving and earnings yield of six or 7%, if you are trying to think stocks, we are a key component of portfolios. hurt --our equity holdings and razor capital holdings. >> we give it a few weeks ago and we took money out of small caps and higher multiples, and out of the markets. betty: they are late to the game. >> i would just say it is not a bad time to rebalance. it is now a time to get out of equities. much, thenk you so global quantitative strategist at wells fargo investment institute. charter's $55 billion purchase of time warner cable is a done deal. how will it boost business? we will hear from the ce

you know what it remind me of we have portfolios for 2009 economic crisis where but had portfolios thatlegitimate security co-mental illness with other securities the result the portfolios got contaminated and read to the security market we need some liability funds the can minute idles should be a wake up call we wouldn't want mission bay anything to do that with we're proud to have connections with can mann minute islands and recommend to everyone you wouldn't want to go on night news with that, i am really very suspicious of this whole thing we mentioned the word can minute islands i get a negative reflexion (clapping.) 10 two 20th century 4 i wished the board asked the other question not if you vaccine for hedge funds but being and devils advocate go to the downsize like the transparent or the fees or lack of control of this board or these managers anyway beyond that concerning the rfps and the whole process which seiu is effected how this is done it is fill seems unclear and not a responded to when i talk about well will you had a partner or combination of partners or consultant or

i have to imagine clients asking you how that's going to impact portfolios, the market.hat do you tell them? >> well, it's a boom for the 24-hour news channels, right? gary: well, we love it over here. anthony: the cable guys are good. thank you, cable guys. >> loving this election, because you don't have to have another agenda because the election gives you enough to talk about almost every single day. so when you see that, as an investor you hear that, it creates anxiety. the only thing you can really do is none of us expect to be in the situation, now where do you go from here? is you have to protect your portfolios in a way of being more defensive, and focusing more on yield than growth. gary: are you doing that now or waiting to see what happens in november? >> tactically you're doing it now. anthony: is this 1980, keith? people have something to fear but don't have something to fear? >> interesting, despite the fact that this economic expansion in the bull market has gone on for so long, it's been the most joyless period of money making i've ever experienced and ge

jim leventhal owns it in real life, now has added it back to the portfolio.e's got super conviction on this name. >> never heard of sears, huh? >> i don't know. >> everybody who attacked him last week which was kind of an attack, i don't remember who it was, josh and somebody else. >> yes. it was one. >> he isn't here. throw him under the bus. >> what do we think? >> i think, look, i have been wrong on the retarilretailers. you get a retailer like jc penney with debt on it, talking about sears, it will be really hard for them to grow. maybe get a bounce but i wouldn't chase it. >> attractive risk/reward. that's part of the call here. greater than 30% pull-back from march highs. >> the floor is zero. i would stay away. >> i would look at this stock almost like an nlp with a reserve -- kind of like with a steady amount of traffic but way too much debt. and really, no plan to grow. they just have to keep the distribution of cash flow somewhat alive but it could be a zombie stock forever. there are other maces to places. >> i don't disagree but you look at macy's

portfolio managers were concerned.acted emotionally, as everybody did, but we did not take action. when the market backed up as far and as quickly as it did, the sharpness of the volatility was a benefit to us. it is so sharply backed up to about a 10% yield in the high market, it allowed us to focus on buying opportunities rather than trying to decide whether there was a fundamental challenge in the market that we had to address. >> will we see more of that volatility for the same or different reasons? about that know sharp a backup, but clearly, etf's are a bigger percentage of the trading volume in high-yield market. investors are paying a lot of as ation to credit spreads function of what is otherwise going on in the world. we are positioning our portfolios in the market and more frequent, sharper swings. there is a little bit of an art that. stay true to our credit discipline. you try to be in less volatile name, which we use private investor strategies. you have to market your private decisions with valuations. t

portfolio out there in terms of their ability to pay their bills? i don't expect you to answer that question now, you probably didn't expect to get that answer and, frankly, when i came into the room, i didn't expect to ask the question. [laughter] but that's dependent on congressional action or inaction, and i think it's something that you need to look at, because that is a potential looming crisis for some of the farmers out there. and i'll just, if i may, we'll follow up with questions to the agency so that we can get specific information on how this could be destabilizing to the sugar beet growing state, the corn growing states, the soybean growing states. i mean, it's an equal opportunity disrupter, and i think we need to get some financial information behind i. thank you. thank you, mr. chair. >> let me say before i recognize senator bennett on behalf of the ranking member, our distinguished ranking member, that the responsibility and requirement that mr. tillis just raised with regards to agriculture biotechnology, note the difference. as opp

thankfully we have the ultimate portfolio protection.would you like to get paid to buy shares of disney? at a discount. it ain

. >> we've been looking at our portfolio because while we're excited about the investments in the future we realize in other areas we needed to be more effective and we see the business model changing with the

we have a portfolio of assets to be liquidated. that is a work in progress.e had some concentrations that we are still watching. broadly our portfolio is in good , shape. francine: can you talk to us about dividends? you had to cut back understandably so. bill: we cut back our dividend at the half year last year. we canceled our dividend. we did that in part, because we were asking our shareholders for incremental capital. more importantly, we said this is the time to reset our thinking. we understand our shareholders care about the dividend and they want a dividend, and we want to pay a dividend. we want to resume at a time when we have a visibility into our earnings that demonstrates capital strength that we can sustain. francine: this year or not? bill: it's possible. we have said that we understand how important this is to shareholders. we will resume the dividend as soon as we think it is appropriate. francine: how do you increase revenue in this environment? bill: what we experienced last year was shrinking demand for our balance sheets. at the same tim

of the entire berkshire portfolio.'s permission to buy or sell a stock. also remember that buffett himself has famously shied away from making investments in technology companies. the notable exception was that ibm stock that was definitely a personal pick from buffett himself. but even there, he said he's considered it more of a services company investment not as much of that technology investment. also remember that his top lieutenants made a big bet, at least maybe not as big as buffett himself, but a bet on intel shares between 2011 and 2012 during that time when they opened it it's estimated they made north of 20% return on their investment. now, the question is whether or not apple and that stake becomes more of a trade to manage around, or more of a core long-term holding. we know that ibm hasn't been performing all that well since buffett's investment and apple stock took a hit after earnings. only time will tell melissa. if you want to know more about the berkshire portfolio, go to buffettwatch.cnbc.com. we've

does your portfolio need a workout? we both went to the gym over the weekend.you? >> saturday morning i don't want anybody telling me what to do. it's almost easier to go running on your own. >> so yoga is completely the wrong thing for you. >> but you listen to the teacher or do it on your own. should you be sweating your assets a little harder? here's how to find out how to get your money moving. >> reporter: from cardio to core, back to buns, if you can press a button, you can do it anywhere. workouts on demand, online, there are thousands already. some for free and some for a fee. >> all these old guys are killing it. >> reporter: all part of a business that is turning the traditional fitness model upside down. >> dvds have worked just fine for over ten years. but now this opportunity to have a two-way dialogue and the ability to support the customer and their result provided a meaningful opportunity to expand what we give the customers. >> reporter: at the santa monica headquarters of beachbody, the company that brought cult workouts like p90x and insanity

he also gets down to business and answers questions from shareholders about his portfolio, about the markets, and he offers advice for investors. this morning he sat down with becky quick for a wide-ranging interview on cnbc and she began by asking him about the economy's sluggish growth. >> we're not living in a world where i think you expect the u.s. economy to grow at average%. the gdp figures are inherently a little more suspect in terms of being precise than year over year figures. but that doesn't negate the fact that the business is slow. it is not negative but it's slow. >> we got the chance to talk to buffet about some of his long-term holdings, some of the biggest positions berkshire owns. some of the stocks have underperformed sharply versus the market and against their peers. american express, for example, a long-term holding, is down about 15% over the last 52 weeks. and ibm is another stock that he's come under pressure for his relentless commitment to this stock. ibm, he owns about an 8.5% stake in the company. he did that at an average cost basis at just under $170 a

so it is a great strategy for protect your portfolio.n theyou protect downside, but do you benefit -- kevin: your underlying portfolio will benefit. this is strict we just a hedge in case the fed does say something because he can as they have caught us by surprise in the last six months. remember in the september meeting when they said there would be for rate hikes. with political conventions coming down the pike as well, wall street is the main culprit that they are attacking as well as a lot of health there. inse are two major sectors the s&p 500. so there could be a lot of negative sentiment relaxing the growth and the yields that we need around the market otherwise. end in.hanks, can we will be talking more george michael. [laughter] coming up, the close of trading is minutes away. we will have an exclusive interview with treasury secretary jack lew. ♪ david: markets close in about 10 minutes time. right back to julie hyman with the market check. julie: we were just talking with kevin kelly about the negative sentiment we have seen f

it is focusing more on portfolios.a kind of strategies, what combination diversification managers are capable, not just with respect to the versification management but the whole portfolio. the willingness to pay for differentiated strategies are still there. scarlet: what do you think the risk? of liquid alt etf's simon: i'm not sure it necessarily poses an existentialist threat to hedge funds as a whole. i think it is a component. and an additional component potentially driving alpha through a portfolio. alix: a lot of these hedge funds are in the same names. if ido my homework, but see my buddies are invested in that stock, i won't be buying the stock because there is literally no one left to buy it when you want to sell. have your clients changed their strategy in terms of who they might want to invest in and that sort of credit trade based on shares like valiant, which has been subject to this kind of thing? simon: it is interesting you are much in a single equity names. we look at the widely held macro positions.

you have an environment and building a portfolio of their learning. to share it with many more people and incorporate it. i have learned a lot of how many people think the virtual and the physical are in competition with each other. if students can learn, master concepts, it frees a lot of time for more projects, for more peer tutoring. you can have mixed environments. i have seen my own son in it, and mentor students and really mature students in a positive way and maybe more valuable than the math or the science. emily: $22,000 is a lot less than a lot of private schools. u have a local teacher and mark zuckerberg if we are aren't back in the same situation, where we have public schools that everyone with afford and elite schools where few people can afford. >> the lab schools, i can't speak for all of them, there is a feeling that the model of education, this is the model we have seen in private schools, the factory model, you have to lecture and you have this these algebra d get a c in and move on to precalculus and the students are hitting walls

and so we have those kinds of opportunities in our software portfolio.o we play in quite specific areas of software that is a little different than, you know, erp systems, like an oracle or s.a.p. or salesforce. this is not really our market. emily: what about the cloud? what is the hp strategy when it comes to the public cloud? are you going to be a cloud, or sell to the cloud? and do you plan to take on amazon and google? emily: so our public cloud offering is really not designed to compete with azure or aws or google. what we see most enterprises wanting to do is not to put everything in a public cloud. so if you want only convenience, you might go to a public cloud, but if you want security, you want to be in a private cloud. and so our strategy is hybrid cloud. your cloud, the way that is right for your company and your industry. emily: there has been a lot of deals happening -- avago, broadcom, intel, altera. do you see a segment broadly at hp that could be transformed by m&a? meg: yeah, yeah. i think why you're seeing a bit of -- quite a bit of in

it was impossible to manage a small portfolio let alone a large one you. >> built this, it is clearlyter mousetrap. you are selling this amazing software product? >> it's a subscription, owners of real estate pay per month, per building, and brokers pay separately seats, manage all the buildings for a low monthly cost and it becomes the home base. it's the bloomberg of the industry, they're tracking portfolios and communicates, which is cool to do in one system. deirdre: can you also generate data reports and say, hey, this part of your world is moving quicker, more efficiently, more profitably. this one isn't. >> i feel like you have done brokerage before. deirdre: i have, i'm a wall street dropout. >> they want to understand what's happening in the market. they pull in lots of other third party data to help you understand the strength of a prospective tenant you'd like to have in the portfolio. it's helping you mitigate risk before you get down the road with this. deirdre: you are providing them with a powerful tool. all this information, but also digesting it so they don't have hea