to steven russell, it was a relief. you thought he was in prison?as in jail and he had a violation of parole, registered as a sex offender. he kept taking the tracking device off. so when he was picked up, we knew he was going to get some time. and so there was a big relief. >> reporter: the relief was short lived. his 16th parole violation was considered not enough to hold him. the judge made the decision and for the 16th time, he was released. and what happened after that? >> he went over to my mother's house and killed her. he killed her and left her body in the backyard in the wheel barrel. he raped her, he murdered her, and he robbed her. >> reporter: the state department of corrections says overall its new policy is working well. but its second in command says perhaps the judge was at fault for the release. >> i do consider the judge's position on this, and not knowing i wouldn't second guess all the difficult decisions he has to make. but there were perhaps some attributes about that individual that should have been given more consideration a

to steven russell, it was a relief. >> you guys thought he was in prison?he was -- he was in jail and he had a violation of parole. failure to register as a sex offender, he kept taking the tracking device, removing the tracking device, so when he was picked up, we knew he was going to get some time and so, there was a big relief. >> reporter: the relief was short-lived. diavolo's 16th parole violation was considered not enough to hold anymore in a crowded jail. judge guilani made the decision and for the 16th time he was released. and what happened after that? >> he went over to my mother's house and killed her. he killed her, and he left her body in the backyard in a wheelbarrow. he raped her. he murdered her, and he robbed her. >> reporter: the state department of corrections says overall, its new policy is working well, but its second in command says perhaps the judge was at fault for releasing diavolo. >> i do, you know, consider the judge's position on this and not knowing i wouldn't second guess all the difficult decisions he has to make, but there w

steven wood, from russell investments. hello, steven. >>ly. >> you buy here?2. >> i think so. kind of add selectively to the portfolio. i think this will be more of an active management environment. a 4%, 5% pullback in the markets may not be terribly noteworthy. >> so you're taking the long-term view. >> certainly. >> even if we get a 10% correction, so another 7% from here, you'd be okay? >> the things we would like, sure, if they're more on sale. i think the volatility we've been looking for in the market, we're beginning to see. it hasn't been as intense as it has been. i remember standing next to you when t.a.r.p. didn't pass. that was an interesting day. >> a scary day. >> very scary day. we were watching that monitor. compared to what we've been through, it's very normal market volatili volatility. i think the u.s. will continue to benefit in equity and even fixed income. looking at europe, still seeing a four handle on interest rates in spain and italy. you're not seeing a lot of systemic stressors in the market. fixed income and equities are repressin

joining us now in the "closing bell exchange" anastasia, jason, steven wood from russell investments and brian. good to have you all. thank you very much for joining us. anastasia, let me kick it off with you. what would you be advising clients to do here, after the year we've had with a market that is showing such volatility? >> yeah, thanks. it's not that the market is taking a little bit of a pause here, because we're processing all of the data we're getting from the economy, but also all of the information we're getting from the fed. i think what's really key here to note is the preponderance of the evidence is shifting towards the defendant here. the defendant being the fed and the plaintiff being, well, the market. and that's really for a very good reason. you know, the data is improving. so it's not a surprise that the fed is starting about tapering here -- start talking about tapering here. so we have to take that in context and realize there's some very good fundamentals backing it up. so rising rates do not necessarily derail the story here. >> although, steven, there is ta

bring in matt mccormick, vice president and portfolio manager and on set with us steven wood, chief market strategist at russell investment. first off, steve, i know you're ready to go on a global tour for your k.as a guy, very macro focused guys, where is syria on your list of concerns? do you change your client recommendations because of what's going on? >> in the shorter term this is a great human tragedy and the strategic consequences could be more significant than the initial signs dictate but from a longer term perspective we've seen military interventions create the initial downdraft that bob spoke to earlier. even within a matter of months you can see some recovery in the markets. security selection and since the bernanke speech of may a lot of people are questioning why do i have fixed income in the portfolio and we've been reminding them it's for moments like this when you need the seat belt in the car because you don't know when the bumps hit the road. we won't change dramatically. we'll get our shopping list ready. >> it's really interesting and, bob, you've been beating this drum this morning, desp

so we're here to put it in perspective a little bit for you of the russell investments chief strategist stevenis is a buying opportunity. find out where he is putting his money now. tracy: gold surging more than 4% this week despite rising prices. investors snapping up rare gold coins at the world's fair of money. who would have thought. we're there to look at some of the most expensive money in circulation. lori: speaking of expensive, we're taking you to the nation's premier auto show in california with they are showing off the newest models. tracy: look at that i love old cars, man. top of the hour. time for stocks. nicole petallides on the floor of the exchange. nicole, down 36. not terrible but we can't get back up, huh? >> no, it is pretty tough to do so and it has been aweek on wal. last friday we closed at 15, 425. it has been a tough week on wall street where we lost the majority of gains we've seen, sorry, some distraction to my right. dow jones industrials is down one quarter of 1%. bank stocks showing gains. jpmorgan and bank of america doing well. as we noted it was down 2 1/2% fo

steven wood is chief market strategist with russell investments and alan lance joins us, editor of theorning to you. let me kickoff with you. over the last 24, 48 hours we've had a shock sell-off in the bond market. it's driven the yield on the ten year up maybe 12, 13 points. that's a big move. >> it is. >> why is that happening and why is this stock market more -- not more effected by it? >> i think the market had run hard and appropriately so if you look at a lot of -- equity markets. correct. there was a radical movement coming post-bernanke's speech on may 22nd. there was the taperitis, the taper t er tangent, whatever. but there was a spike in interest rates. but that spike came from looking at fed policy. this is very different from 1994 in the fact that that spike in rates was given by fears of inflation and a very aggressive fed. this is very, very different. so we're calling this more of a yield norm algization process. >> good. the yield to r. going out because we believed in growth. >> we believe that growth is stabilizing in a modest if not great pathway. we believe the fe