and its the schiller p flips it over and makes it an earnings yield.hat is a pretty good forecast on what you make on stocks above inflation. it over,25, you flip there's your math, you get four percent. four percent over inflation has indication. we subtract off the real bond yield. this is the spread. if i had to guess, over 10 , how stocksomorrow are going to do against bonds, this is my guest. by 3.4%.ll beat bonds on one hand, there is good news -- they are expected to win. on the other hand, they should win. stocks are riskier. we hear that stocks are cheap compared to bonds. we do not find it to be so. we find it to be a little bit below average and write about medium, 50th percentile against history. stocks are expensive. bonds are expensive. they are about equally as expensive as each other. i occasionally make silly comments. do at the moment? wall street is not expect in inflation. the break evens are about 1.8% over the next five to ten years. you are really betting on the economy and how quickly it will improve. at this point, which side y

when barry talked about the market being 25 times earnings he was looking at the schiller pe. the market is about 16, 16 1/2 times earnings right now if you go back to average earnings and take a look at schiller numbers. yes, that worries me from a margin point of view but i think that there are still companies that you find that have good strong balance sheets growing earnings on the top line and the bottom line. you don't have to pay too much for them. i think you own them to weather storms like this and i think you stay invested. the economy is recovering. it's a slow recovery, but it is coming out of this and we're maybe picking up some traction. i'm certainly not a seller. >> so i want to pick up on that, michael, because a lot of people at home watching this, they've seen in the last couple of days sharp selloffs and some are biotech's, some are high flyers but taking down a lot of the regular stock companies as well. sore you saying put your money in anyway and don't worry about, you know, all of the selling? >> my friend freddy tower says the time to invest is when yo

the tsarnaev brothers and the one brother who now faces trial, i want to get a few thoughts sue schillerhe points the panelists have made are excellent. the fluid interagency sharing of information is critical for all agencies to have what they need to do their specific jobs expertly. what i personally find very encouraging is something that j.c. cooper -- j.c.ramo said, which is we are a free and open society and that is something we want, something we want to keep, and with that comes the understanding that people are going to try and do us harm. we can't stop that. what we need to do is immunize ourselves so that when our system sees it, we can react appropriately and engage effectively. >> i think for me, i think much as deputy schiller mentioned, we are used to the fact that in the post-9/11 era, that terrorism, homegrown or otherwise, is a fact of our lives. but what outrages me the most is the apologists for folks who perpetrate this. we have a free society. it comes with its baggage, with its price, and i'm willing to accept that and defend our rights, our liberties. what i take

had case schiller home price index this morning under what was estimated, lagging.et right now, it continues to drive a lot of the trading right now because of the momentum selloff. despite the recent selloff, our next guest says that they are presenting themselves. joining us is the head of tech center equity research at s&p capital iq. how are you? >> good, thanks. >> when you look at the recent talk from march 5 and you saw the selloff, is that the correction, the shakeout that people were looking for? have been ad completion on the correction, although there is a lot of uncertainty related to that at this point. nonetheless we will obviously take a look at the market through the prism of the s&p 500. what you see is since march 5 the s&p 500 is down slightly. the technology sector is down less than two percent. but some of the internet sub industry is down anywhere between 14% and 20% with individual names that i think a lot of your viewers and listeners are very familiar with , down 20% or more in some cases. been doing isve actually seeing those declines in st

. >> between philip schiller at apple and his creative agency.asically-mails, he called out the agency for not producing campaigns that were as innovative. alsonovator, they have landed them in trouble, using the president and david ortiz. that is not allowed. selfie,generes and that it feels sort of passing at this point. is masterful at getting attention to look at their phones. they change the game with an ad making fun of people who wait in line for iphones. it really helped units skyrocket. >> how do you characterize the samsung galaxy? feel like itde it was not cool to wait for an apple product or be an apple fan boy. >> apple is also giving its chief designer more authority. as originally working with the late steve jobs on the imac. break, gadgets to improve your game on this masters weekend. we hear from christine lagarde at the imf-world bank meeting in washington. , the u.s.o break and south korea holding live fire exercise. north korea calls them "war practice," the u.s. and south korea say they are just exercises. ♪ onthis is "lunch

at 9:00, the case schiller home price index. our home prices moving up? 10:00, we get consumer confidence. how do we feel about things? earnings before the bell -- we've got a bunch. coach, forest labs, merck, twitter, ebay. at 2:00 today we will hear from the nba. adam silver will talk about his findings on the alleged comments from the la clippers owner. merck'sonder if earnings will be different with the pharmaceutical frenzy. >> and four slabs being bought by activists and yesterday it turns around and says it will do its own deal in addition to that. -- forest labs being bought by activist. >> and twitter different from what we saw from facebook? what may be. at the end of the day it is about monetization. >> a data check. not that much going on in the markets. up six. the euro, a little bit of strength. vix, our next screen, the under 14. i was surprised by that. vix.is a better than good i put amazon, breaking 300, as it did during "bloomberg surveillance" yesterday. putin gets ae as break in the news flow. let's go to the chart of the day. case sh

melissa: taxing the rich, nobel prize-winning economist robert schiller's plan to level the playing field the other 99. tweet me, tell me what you think. >>> winging it on prom night but will it be original recipe or extra crispy? kfc's plans to crash the party. "piles of money" coming right up. passion... became your business. at&t can help simplify how you manage it. so you can focus on what you love most. when everyone and everything works together, business just sings. how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪ melissa: a market in the green, the dow 50 points off session highs. still up 100 points. following last week's selloff, jason is at the new york stock exchange with more on this one.

i'm at a hotel in schiller park. >> meantime in a room across the hall, female undercovers post fake ads on backpage and lure johns to the hotel. >> are you going to come visit me? what time are you looking at? i charge $90 for one hour be pt is that okay with you? >> he wants to know if i do greek, which is common term for an al sex. >> i'm in the area. >> can't wait to see you. >> female undercovers make contact with an eager john. >> right now. he's going to be here in two minutes. >> meanwhile a male undercover across the hall also has a subject on the way. >> you're not police, right? you have to tell me that. that's why i won't give you my number. i don't want a bunch of dudes kicking in my door. >> the team scrambles for two simultaneous takedowns. >> it's always feast or famine. we'll have nothing. we'll make the calls, put the ads out, then in the space of a half hour we have five show up. it's critical we take them down and get them in here immediately. >> arresting officers huddle in the next room eyeballing the john's approach and waiting for the signal that the deal for

at 9:00, the case schiller home price index. our home prices moving up?onsumer confidence. how do we feel about things? earnings before the bell -- we've got a bunch. coach, forest labs, merck, twitter, ebay. at 2:00

20,000 students, will have taken his class, that is way over double the number of students that bob schiller has taught in his the 30 years career. >> rose: right. >> one eight week,. >> the history of the courses is they sign up for the course and drop out. >> yes, but it is free, why not? >> you have no investment. >> yes. the stuff about completion rates being low is kind of still litigate groo. >> so what we have learned of the people that complete the first assignment, 44 percent of them finish, but -- and, you know, pretty much equal number of people audit the course,. >> rose: online education will change the world? >> i think it is giving an opportunity to people, i mean it is getting people better jobs, giving them new life we have a woman in bangladesh, she was a product -- she was involved in an abusive relationship with her husband. she escaped from her situation, and a friend of hers and herself decided to start a bakery, she went online and took an accounting course, a marketing course, how to run a small business course. and this woman in bangladesh is now running a successful

and forth but i thought it was particularly important to start today with a bipartisan amendment schiller roberts because it goes to the heart of the question of innovation in our country and let us recognize senator schubert and roberts. he may not be here but offered the amendment. >> we would like to offer -- offer a commitment number would regarding the package to the tax credit. first the one to thank my colleagues for joining me have a good bipartisan group of sponsors of the republican side in addition to myself on the democratic side also to the original bill introduced by three members of this committee senators in the and roberts in itself but kunz was the originator of the idea and deserves a lot of credit for getting this done. everyone on the committee knows there are few tax credits more important to our economy and more specifically moving the economy forward in research and development tax credit. but there is a problem with that credit italy benefits countries that are low income tax that means only profitable firms can benefit to the fault many small start-ups where so m

in following yesterday's better-than-expected jump in spendi pending home sales, we get the case-schillerome price index, that's expected at 9:00 a.m. also today, federal reserve policymakers will begin a two-day meeting with a statement to be issued tomorrow afternoon. >>> one of today's early winners, nokia. the company reported better-than-expected earnings for its first quarter, it announced plans to return $3.1 billion to shareholders through buybacks and extra dividends. it also named the head of its business networks business as its new chief executive, andrew. >> surrey. you just did the syllables. >> we know suri. because tom cruise has a daughter named suri. >> check out your script. >> i thought this was unscripted. >>> the dow and s&p finished higher, reversing losses, following a volatile trading day on monday. joining us is eric davidson, deputy chief investment officer at wells fargo private bank. and dean zaed who is co-founder and ceo of brookstone capital management in chicago. let's talk about this. we've been waiting for a correction. people keep thinking as soon as it

the markets on that basis, it's like schiller's basis, it's as expensive as it's ever been.f speculative activity, ipos with losses going public. the public is buying this now. the animal spirit to use steve -- are there. i don't know if they can pull up the sotheby's chart. the linkage is also between fed policy and what people are buying and getting spirits. there's a chart of sotheby's. that's where people are buying. >> i guess that one on the right-hand side, you were talking about this a year or two ago, sotheby's. >> yes, in fact there's been a double peak there. the 1% is people that are wealthy that are in the market may feel wealthier and may go out and spend. it's not trickling down to the other 250 million americans. and that's the issue. i think that transmission mechanism is the one we can talk about, whether you want to call it a rig or manipulation or whatever. are asset prices part of the fed's mandate? it seems they are. >> the fed chairman talks about it every time they mention it. >> they absolutely talk about it now. which tells you it's first and foremo

schiller on, a lot of smart people in housing think we will have a hiccup here.at's the case, you look at the data out today, i have to caution, if you believe interest rates will make a difference, if you are looking for a fixed mortgage, the lower long rates will help you out. an ad justable rate mortgage, it's doing you no favors, back to you. >> okay. rick. thank you, stephen leisman joins us, why don't you talk about this first? >> there is a little spring time snap back in these numbers. 65% increase in starts in the mid-west. which is kind of what you might be looking for. 30% in the feast. you were down in the south, down in the west. i guess there are questions about whether or not what you have, you have a lot of over building. you have investors come in, buy a lot of properties. >> that has stopped. so whether or not there are demand issues in those places dominated by investment. my thinking on this, it's entirely taken from don't na olick, whose block you ought to read. she was way ahead about the spring stooim time swoon. i'm not sure i'm ready to s