greg davis from vanguard. great to have you with us. >> great to be here. >> if somebody has a bond fund, it is probably a vanguard bond fund. you have nearly 9 billion in assets. what should you be looking at in terms of holdings and what should you be careful of it. >> i think you should maintain perspective. the maybe tenants still prevail. it is a great way to provide diversification to your portfolio. and maintaining bonds makes sense for most investors. >> but you have to look at value here and you do like investment grade. and that is important. we've heard so much in the past few days about the high yield. you don't find value there? >> we are primarily a investment grade shop. that is our universe. when you think about what happens over the past five years, given an environment where rates were low, many were down the credit spectrum, taking on more risk by investing in high yield and emerging markets. and as rates normalizing, you could have those sectors be under pressure over time. >> as you look a

we sit down with legendary investor jack bogle of vanguard.lk about value versus index. ♪ betty: welcome to bloomberg markets. ♪ ♪ from bloomberg world headquarters in new york, i'm betty liu and this is what we're watching. he is called the father of index investing after year when indexes were much flat. let's see what jack bogle has to say for next year. not soap just metals, it's been a tough year and how will these commodities do next year? was the taking oframadi a turning point in the war? ♪ we are about 90 minutes into the trading session. let's go to julie hyman. this rebound we are seeing in the market? julie: it is larger than the decline we saw yesterday. it's a significant bounce back today in the major averages. all of them are approaching 1%. it's up the broad-based rally. usually, when you look at the ordership in a rally declines, it stays steady but there has been some bouncing around today. the top spots in right now in terms of percentage gains but it is tied with information technology. you see all green on the screen as t

david: that was betty liu speaking with jack bogle, former ceo of the vanguard group. now let's get a check on stocks with abigail doolittle. abigail: the biggest story here at the nasdaq is this broad-based rally we are seeing. the nasdaq up 1.4%, all sectors participating, energy going between green and red, the leading the charge higher is consumer discretionary. on top of that list is amazon, one of the top point influencers on the composite index today. there seems to be a lot of year-end buzz. the company said they had a record-breaking holiday. was positive on that development, reiterated his overweight rating and his $800 price target. with chairs at a record high, it may be triggering more momentum buying. qualcomm is another top performer in the tech sector after the company said it 4g patent3g and agreement with two chinese companies. lots of positive news flow here on a stock that is down more said30%, but merrill lynch last week it was a top pick for 2016. david: thank you. coming up in the next half hour, the world richest people got a whole lot poorer th

, the vanguard who are, that can serve in military and you're saying actually the positives i make inthis democracy are not been i'm not done yet. my generation was not about withdrawing from democracy. i saw deposits to make. i will make in my community, or i didn't live in iraq or afghanistan or southeast asia or where ever i served. it's my community and that's what i'm going to make this deposit. i shared one thing with another group earlier this week, is a photo that we put up at all of our gatherings that is another one single photo that represents what we're trying to do. it's a photo, or black and white photo of space boost -- boot prints on the moon. i don't think there's a photo that more singly and without word represents the culmination of a nation and a vision than that single photo. that photo that signified that an entire country said we're going to do something and we're going to do something by a certain date, that photo suggests updating. the reason why we use that photo is not only to convey our own, our own goal is, that the mission continues to influence future ge

ofpoke to jack bogle vanguard group.spoke about his predictions for 2016 and his three factors for predicting those returns. knows the future. i am guessing the economy will slow a little bit. it's been doing reasonably well. in, not see large changes say, the growth of our gross domestic product, probably a 3% rate next year. i don't think a recession is very likely. but investors have to understand that anything can happen in the economy, and anything can happen in the markets in the course of the year, so it's better to bet on the long term. betty: i know you're all about the long-term, but on that note, if you look at where treasuries are trading right now, and you look at the returned you have gotten, even if you were an index investor this year, you would've only got a 2% return. that seems to signal that something is wrong here. >> i don't think it is a signal that something is wrong. it is just a time where the general level of interest rates, nominal interest rates, is very low. the general level of real interes

george was at the vanguard of new hollywood, blending shiners and combining timeless themes with cuttinghnology. without him, movies would not look as good or sound as good. might still fly around the screen with strings attached. the effects were only part of what makes george special. he created a mythology so census theand a 2001 fourth largest religion in the united kingdom was jedi. [laughter] president obama: think about how many children have been raised in part by george lucas. they give out how many thought that if a kid from the moisture farm can go from bull's-eye rats in his t-16 to saving the galaxy, maybe i can be something special, too. how many arguments were about the structural flaws in the death star. how many philosophers argued if shot first? how many bookish teenagers took anace in the fact that indiana jones.s they might make a brand-new star wars movie soon. it is low key and not getting a lot of promotion. it is remarkable that nearly 40 years after the first star destroyer crawled across the screen, we are assessed with george's vision of a galaxy far, far away.

[cheers and applause] with the human rights campaign vanguard award. i have had the personal pleasure of working with alan on -- ellen, on and off screen. acting with her is a pure joy. she is incredibly present, accessible, generous, and my favorite trait in any person, she doesn't take herself too seriously, which i love. whenever i spend time with her offscreen, i always leave her feeling that i am a better person, that i have learned something from her that she has taught me about the world, the beauty in the world. and she is such an amazing person, and i am so grateful to have her in my life. her intelligence is profound. her heart is huge. her willingness to put herself out there, to expose injustice, at times at great risk to her own personal safety is nothing short of inspiring. she is truly one of those individuals in my life and in yours who lives the truth about who she is, and who she loves. [applause] she inspires us all with her enthusiasm, her compassion, and above all her authenticity. for all youths and especially lgbtq teens, struggl

[laughter] president obama: george was at the vanguard of the new hollywood, blending genres and combiningeless themes with cutting-edge technology. without him, movies would not look as good or sound as good as they do today. spaceships might still fly around the screen with little strings attached to them. [laughter] president obama: the effects were only part, though, of what makes george special. he created a mythology so compelling that in a 2001 census, the fourth-largest religion in the united kingdom was "jedi." [laughter and applause] president obama: think about how many children have been raised, at least in part, by george lucas. [laughter] president obama: think about how many young people searching for their place in the universe have thought to themselves, "if a kid from tatooine moisture farm can go from bulls-eyeing womp rats in his t-16 to saving the galaxy, then maybe i can be something special too?" [laughter] president obama: how many engineers got their start arguing about the structural flaws in the death star? how many philosophers got their start arguing about whet

year and because of the costs associated with active management -- the numbers, the inflows into vanguard in recent years. i think the latest figures from bank of america, 40% of active funds beat their benchmarks. randomly -- that's a few hundred mutual funds -- fund: if you were an index really got anything. mike: you did nothing this year, basically. there was a great column this week about one of the best stock pickers of the year. 20% gain this year. if you can put 20% gain in a flat market -- this is a fund that is beat the market consistently. them, they want to be in this space during this stretch in time. if the market is doing nothing, it is sent to shift and site wait a minute. classt think the investor quantity -- the investors monitored of my -- betty: 20%. says, over time, though. mike: overtime it will average out. in the same story i wrote about bogle, someone said is there anything really such as asset it inment -- you can put and beat the stock market is your. betty: mike regan, bloomberg at fly columnist. we are about 20 minutes away from the close of trade. betty: welc

if you don't believe that, look at our cash flows here at vanguard has taken in $210 billion this year and the rest of the industry has seen $20 billion go out. that is a powerful force. in the our businesses traditional index funds, a decent amount but we the lows traded etf's in the business by far. you can do it right but it's not that easy. betty: with the fed raising interest rates, given that the punch bowl is being taken away from the investor community, is stock picking going to come back in fashion for some and does that mean index investing will not have that favorable environment anymore? >> it can't mean that. think about a stock pickers market. kicker, you are a bad stock picker. there is somebody on the other side of every trade. a stock pickers market is a giant myth that needs to be shattered. i will try to shatter it with just that comment. atty: that's a good point which to end. thanks for joining us this morning. i want to go to london where the european markets are just closing. caroline hyde is joining me for the european close. you guys were rallying throughout th

i say 'ye because he just got the vanguard award and listened to the kids. >> who is your favorite artist? >> ed sheeran. >> wow. >> he's my absolute favorite. >> i love it. what's your biggest regret in life? >> i don't think i have any. i really don't. because if you thought, well, i wish, well then i wouldn't be here. >> sneakers or stilettos? >> stilettos. i like sneakers, but i'm a heels girl. my feet will tell the tale. >> what's one thing you believe that most people don't? >> there's a place for everything and everyone. >> okay. so here's the last one. is when your career is over, how do you want to be remembered? >> hopefully i'll be like 90-something at that point. every day or every week. so i'd like to be remembered as somebody who broke records and did great and who was just an all-around brilliant human being that had -- a legend! a legend. that's the word i'm looking for. >> that's a wrap. >> that's so cool! >> good stuff. >> thank you, darling. >>> and that does it for this very special edition of "our world with black enterprise." visit us at blackenterprise. let's look a

eisenhower thought that america's original space project, the vanguard, was part of the international geophysical hearing, in which the u.s. would share the fruits of its labor, share the bounty of its satellite with other nations of the world. it would also establish the principle that outer space has no boundaries, that flight in outer space was free to any country of the world. that was a very important principle for national security and reconnaissance that eisenhower wanted to establish. of course, once the soviet union launched sputnik and america launched its first satellite, explorer, in january 1958, there were no complaints by any nations of the world that this was our territory above, these overflights were illegal. what happened in the 1950's was critical, he established the principle of free space. this has all kinds of implications in not only national security reconnaissance, which was a favored field of eisenhower, but for weather, communications, observations, and all the rest. i think you are next. >> it struck me, the comparison between lincoln and eisenhower. they

thanks tim both vanguard and biola university are within 40 minutes driving distance from the beach. needless to say ... temparatures rarely drop below 70. so the storm that hit us this morning brought them the feel of a real holiday christmas and most importantly a whole lot of fun. "nats: we love snoooowww ! vo: while some locals complain about the snow. some players in town for the naia volleyball championship are doing the opposite ... for them ... the white coating is something special and exciting. sot: "at home we never get snow on christmas so we were like ... oh my gosh it's actually snowing. this amazing and the fact that we get to play volleyball and play needless to say ... players were quick to get out in the snow and try to finish their teammates in a good snowball fight. nats: snowball fight "it's just great having the fresh pouder and the girls being able to have a snowball fight. it's just different conditions to what we see at hom e. i mean it was 70 degrees on thanksgiving. and speaking of different conditions ... while many can't wait until the snow is gone. these

these are pictures of the vanguard volleyball players just giddy over the snow they woke up to today. vanard is out of costa mesa california. so many of the kids are from that area and this is the first time they got to maks snowballs, snow angels, and snowmen! 3 "it was so fun! we woke up and we looked out our window and it was snowing. and we're like 'we have to g goutside obviously'. so we went outside and had a snowball fight and rolled around in the snow. it was so fun. i have teammates that like, have never felt snow before. so it was really cool, they were like oh my gosh! like feeling the snow for the first time. " winter storm warning until tuesday, as the snow continues to move through the area. the majority of the snow has already fallen, but we could see a couple more inches by the time this system moves out of the area. tuesday winds will pick up and possibly cause some blowing and drifting snow. when all is said and done, we are expecting 6 to 8 inches across most of the area. some areas could see close to 10" by early wednesday morning. wednesday will start a clearing a

they like the vanguard reit etf over gld.lennials also like emerging-market that have heavy because they have a higher risk tolerance, as they are younger. julie: finally, you wrote a companion piece that you can and thatloomberg.com now talks about etf that are being made to cater to millennials. >> absolutely. the largest generation in history. they are about to inherit $30 trillion. uts are marketing -- etf's are being marketed to them. like will invest in stocks e-commerce, sharing economy stocks, all kinds of things they are into. this is a way to appeal to them on it than that basis. they also had one for boomers call the aging population etf, which will probably be heavy health care. julie: eric balchunas, thank you. betty: still ahead, with donald trump grounded out the republicans and even some of the democrats, how will hillary clinton and her opponents get people to watch when they hit the debate stage this weekend? ♪ . a lot happening this morning. you're watching bloomberg television, i'm betty liu. let's start w

guest: t-mobile has been at the vanguard of -- at first, it was price.hen other carriers jumped on it. t-mobile is setting the bar and other carriers have to look at it. look at the subscribers t-mobile is gaining. you would be hard-pressed to say any carrier unless they followed the procedures at this point is in a better place than in 2016. can t-mobile continue the subscriber growth that had this year? pick: unless the others up, i would say so. and i have been talking about john leisure and his strategy all year. guest: it is working. 30% thisoil is down year. it's not the worst performing commodity of the year. we will tell you why you should care and how to pronounce it, up next. ♪ brendan: live from bloomberg world headquarters in midtown manhattan come you are watching bloomberg markets. we've got more from our news desk. amy: british prime minister david cameron is visiting flood victims. weeks of heavy rain of swollen rivers to record levels. he's called the flooding unprecedented. dallas, a series of tornadoes killed at least 11 people. one of

isis sees itself as a revolutionary vanguard.would like to have every muslim with them, but for them, a committedto have and violent focused minority that can impose its will on everyone, similar to 1917 russia. team, you talked how was it taken by isis and the propaganda afterwards that you saw? did they care or pay attention to that comment? guest: not at all. what they did was they carefully and quietly use the victory in -- to producee the most successful video they ever made. a clanging of the swords number four. this 50 minute video about fallujah is the one that set the stage for the seemingly miraculous, amazing fall. it was probably one of the most successful efforts of psychological operation in the history of warfare, something that will be studied in the future. host: directed at recruits? defendersected at the of the population there. demoralizing it from within. it was very successful. host: time for a couple more calls. larry it -- margaret is waiting on our line for independents. would: getting current, i like to

the military at one point was in the vanguard of social progress and change.t has fallen behind in this see so it is heartening to that it has caught back up to where we are in society, and as you say, knocked down the final barrier to full equality for women in its ranks. mark: we will be right back with carly fiorina, right after this word from our sponsors. ♪ mark: i caught up with presidential candidate carly fiorina. i started out by asking her about the recent shooting in san bernardino. i want to ask about the tragic event in california, and just your thoughts about it from a personal point of view, and from a public policy point of view. fiorina: i've been in that building and i've been many times to san bernardino. it is a community under stress in so many ways. it is an unspeakable tragedy, and i cannot imagine the stress is community is going through right now. it appears more and more likely a terrorist is in their midst. early thoughts on things related to public policy that we need to take a look at in light of these events, or is it too early to

but the world's first electronic watch was in use two years earlier aboard nasa's vanguard bulova's accutron movement was used in man instruments in dozens of nasa missions including the moon walk. question number six, founded in what city? new york, chicago or milwaukee. in 1875 it was opened right here in new york city. bulova was just 19 when he opened the store. by 1912 he opened his first plant for making watches. the world has how many time zones? some large countries like india and china adhere to only one time zone. how do they do that? the u.s. and its territory span ten time zones. how many are in the world? 24 time zones from guam to the east coast. did you know that the international space station is five hours ahead of new york city? you remember that when you call question number eight, who was the time keeper in alice in wonder land, alice or the white rabbit or the queen of hearts? this character has a hare raising obsession with town. the white rabbit wears a pocket watch. question number nine, who sings time is on my side? romming ing rolling stones, paul simon or alan jack

jessica chase, vanguard junior "it was so funwoke up and d lour wow and it snowinwe're like obvio swe woutside raround in tsnow. it that likvenever felt so it was really hey were oh my 3 first time."looks like pfthanks afor watc witwaking up wius. hav great morning.be sure to join us for sports at 5 5nd 10back to yjake. 3 3 "supergirl" is flying high... while adam sandler gets it's (time)... your sunrientertainment ithbreak. 3 3 3 3 break.is after the entertainment your sunrise it's (time)... ridiculous.. sandler getwhile adam ."supergirl" 3 3 33 "supergirl" isisflying higig.. while adam sandler gets ridiculous.. it's (time)... your sunrise entertainment is after the break. 3 3 sioux city had 3 sioux city had 6.6 inches yesterday breaking a daily record from 1981 at 5.3".the majority of the snow has already fallen, but we could see another inch or two by the time this system moves out of the area later tonight.winds will pick up today and possibly cause some blowing and drifting snow even though today's snowfall will be very light.when all is said and done, we are expecting 6 to 8 inc

ever since, he has remained the vanguard of progressive social movement in the human rights and voting struggles. congressman lewis is a subject, co-author of numerous text, most notably he has co-authored the number one new york times best-selling graphic, novel series, march. book one was released in 2013. book two was released this year and immediately became a new york times bestseller. congressman lewis is the recipient of numerous awards, including the medal of freedom from president brock obama. the naacp spin guard metal, the capital award of the national council -- and the only john f. kennedy profile encouraged award for lifetime achievement. now as you sit at his feet, please listen and learn from an insider's perspective about march. but first, stand up and give a rousing ovation to one of the finest citizens this nation has to offer. ladies and gentlemen, the honorable honorable john lewis and co-author andrew aydin. [applause]. [applause]. good morning. delighted, very happy, very pleased to be here in miami the miami book fair, one more time. i want to take thank you for

i remember a the rise of these french parties and isis is part of this they sell themselves as a vanguard political ideology it is very powerful. in that i mentioned i pepper this contemporary subject as a great estate to say how was it the most civilized industrialized nation in europe gave themselves over so don't think it can happen again with the religious fundamentalists they always said i will return and has done a lot during the first goal for to push back. he turned his agents into islamists that we deal with today. does not slow down and it does not and. i have a five month old daughter by the time she is ready for college we will still talk about isis it may not be called that the people still talk about it. >> what is your best guess of how it will play out? >> i honestly don't know. i can tell you what is now working which i did. to give between mild to moderate recommendations but i really don't know. you hear cheerleading masquerading as analysis. we broke the story of a few weeks ago at the pentagon 15 different analyst have blown the whistle on the pentagon because their c

are these two the vanguard? emily: of course there is blue origin and spacex.probably the biggest contenders from a private perspective. their arrivals around the world. there are a number of companies in europe trying to pull this off. spacex says the lead when it comes to companies worldwide. they also did propel 11 different cellar lights -- satellites into orbit that are circling the globe. what is next for them? it's not can they pull this off once, but can they pull this off every time? if a mission fails it's incredibly devastating, it's incredibly expensive. david: one other story you're paying close attention to, and at tradition request for kim dotcom, under scrutiny for copyrighted- things. our member your exclusive from a couple months back. let's take a listen. : i believe in copyright. i do not believe in copyright extremism. extremism is if you are a hollywood studio and you release your content in one country first, the united states, and roll it out to over a couple months and other countries around the world and expect the internet community i

. >> "really love," d'angelo and the vanguards. >> if you've not heard that song, hot. >> "uptown funk" heard that over and over. >> so food. sheeran. >> "blank space" taylor space and "can't feel my face" by the weekend. >> i think "can't feel my face" the weekend. so many hits. >> i was going to said weekend. >> i'm going to go with "uptown funk." that song is incredible. >> i just feel like "the weekend" is new and different. >> what's the criteria? is it the most reesenent our mind or the best? >> i think that's the best. >> the best. >> the arrangement of "uptown funk," that the was killer. >> i don't know how you pick with that. >> how about weekend. >> sompingt year nominations. >> "all right" kendrick lamar. "blake space," taylor swift, "girl crush" by little big town. >> all right. >> and "see you again" by whiz chalifa and "thinking out loud." >> i'm going with kendrick lamar. >> i'm going to throw in "girl crush" the biggest country song of the we are. >> and the wiz khalifa song. >> yeah. >> every time i can cry, just, boom. that song is beautiful. >> album. color" by alaba

emissions of the past have been generated by us, have been caused by us so we have to be in the very vanguard of technological advances in order to reduce emissions in the future and also make it possible in developing countries to attain those reductions. germany will participate in a number of programs. we will promote research for clean energy, we'll double the funding for this and the most vulnerable countries, the poorest countries have to be given possibilities to attain a sustainable development by giving them the necessary funds, the necessary finance. this is the day in paris we have to show that what we promised in copenhagen we will deliver. as for 202,100,000,000,000 euros dollars annually and do this in a sustainable manner so that others are able to also achieve climate change. germany compared to 2014 will until 2020 double its public funding. forth, what does binding mean? we need to establish a framework for a u.n. convention that is binding and we also need biting review mechanisms. germany wishes that this may take place every five years, starting with 2020. this review pro

instead, it was fbi efforts placing hoover and the fbi in the vanguard of the lavender scare. the fbi's careful effort can be seen in how gay-related information was disseminated. when forwarding information to the civil service commission, house of representatives or the senate, including the library of congress and botanical gardens, fbi policy mandated the use of fbi letters. this is the document about the university today. that is the fbi's letter. particular fbi documents mean different things. fbi letters are clearly identified as being from the fbi. the fbi seal is on there, there's a signature on there, it's clear where the information is coming from. that tells us something. when forwarding information to congress -- to the government accounting office, government printing office, the judicial branch or military branches, fbi policy mandated the use of something called blind memos. i will explain this in a second. blind memoranda are documents with no letterhead, no signature, no watermark, nothing revealing the fbi as a source. this is a blind memo, this one happens

>> there's no from vanguard or sell a week after you buy -- >> unless the market goes in half. if the market goes in half and you sell, that's a 50% fee. >> how high would it be if you need it in a month or two? >> it could go as high as 10%. >> that's a lot to lose in a few weeks. deirdre: jonas, i'm taking your point on reading the fine print. ty, we're happy for the ideas. all right. we hear what you're saying. hold for a long time, but, jonas, you're right those fees you have to pay attention. read the fine print. thank you, both. nfl superstar peyton manning fighting allegations that he used performance-enhancing drugs. the quarterback could take the could you sayers to court over the report. and fitbit, the wearable gadget was a surprise winner this christmas. we'll tell you some of the very big and powerful brands that it beat out. >> disgusted is really how i feel. sickened by it that -- i'm not sure i understand how someone can make something up about somebody. admit that he made it up and yet somehow it gets published in a story. it really ticks me off. deirdre: that

. >> the red army faction in west germany was part of a 1970s trend of moxist vanguard groups.in the japanese red army, the weathermen in the united states. these were people who felt that the capitalist structures were unjust and needed to be destroyed and the only effective way of doing that was through violence. >> the german police have been waging a relentless war against the terrorists, capturing some, killing some. but the leaders of the group have often had more influence from inside prison than outside. authorities claim this man, andreas butter, continued to mastermind terrorist operations from inside prison, passing instructions through his attorneys. >> one of the bauder monoff gang said one of the most fantastic thing in the 1970s was not to be a rock star but to be a revolutionary. >> unlike the i.r.a. or other groups, the red army faction kills selectively, prosecutors, bankers, leaders of the society they wish so fervently to destroy. >> they thought the more high profile the assassination or kidnapping, the more likely that this would start the revolution, that

vanguard ofe in the technological advances in order to reduce the omissions in the future and to helpeveloping countries achieve these targets. we will promote our research on clean energy. the most vulnerable countries, the poorest countries. they have to be given the chance to develop in a sustainable way. they have to get the necessary financing. pariss the day here in that what we promised in copenhagen will be delivered. $100 billion annually and also in a sustainable manner. 2014 willmpared to double its public funding. what does binding mean? we need to establish a framework for a u.n. convention that is binding but also a binding review mechanism. germany wishes that this would take place every five years. starting in 2020. tois most important first live up to that commitment. none of these can be reduced over years. on the contrary, they must be strengthened. methodologyave the so that we can address climate change. binding, this is how a global climate agreement must be. this is a question of environmental necessity and also a question of economic common sense. it has someth

between funds go for a low cost fund that mirrors the market, either the s&p 500 or something like the vanguard total market fund, which is -- you will see many of these 529 plans, it literally owns all the stocks traded on the new york stock exchange and nasdaq but since it's weighted by market cap it's performance will be similar to the s&p which contains the 500 largest companies. what are the rules for this 529 plan? >> let's say you just had your first child, congratulations, if start a 529 with your kid as the beneficiary right then and there. anyone knows i traded big blocks of alcoa throughout the birthing, not one of my finest moments. here is how a 5252works, contributions are not tax deductible so you are paying for thisut of after tax income. once your money is in the 529 plan you don't pay any taxes on your grains so you let them compound tax free year after year. it's like a roth i i except for college rather than retirerent. because of federal gift tax laws you can only contribute $14,000 a year if you're single $28,000 if you're married and file your taxes jointly. that's a heck

what's new is using not some figure of the fringe, not some higher vanguard of crusaders to do this onurpose. what's new is having this done by your party's prohibitive presidential front-runner. what's the new normal in the republican party in terms of minority bashing politics when this campaign is all done? joining us now for the interview, is bernie sanders. senator from vermont. candidate for the democratic presidential nomination. >> let me give you my perspective on what's going on the' different perspective i think than other people have. you have an enormous amount of fear and uncertainty in this country. and it's not just from san bernardino or from paris. i think what you've got are millions of people hope are in trouble today. they really are. they're confused. they're working longer hours for lower wages. they're seeing productivity going up but their kids are worse off economically than they are. they're looking at a campaign finance system in politics and see corruption, big money buying elections. nobody in congress is listening to them. they're out there alone. they're

vanguard brings fees down to .03%. half the investors like that. the newrs like some of gadgets. smart products that tilt a fort -- tilt a portfolio and allow you a chance to outperform. currency hedged etf's took in $50 billion and will basically go long and short out the currency. tree currency would go long and short the euro. talk about energy etf's. eric: never in the history of etf's has so much money been thrown at trying to call the bottom. or 2take a billion billion, about $24 billion have been thrown at etf that are energy sector etf store ones that track oil futures. you have retail investors, hedge funds and traders using etf products to try to call a bottom in oil. it will be interesting to see if they try to throw money at it. betty: we will see for 2016. thank you very much. another hot topic, the ceo of no more was ousted. resigned following charges of alleged securities fraud. here's what he had to say about those charges. beating the person often trying to find the merits to make up for it? i would hope the government would not take that kind of approach. ouring

the nominees are really love, by d'angelo and the vanguard. uptown funk by mark bronson featuring bruno mars and thinking out loud, by ed sheeran, to win, he has to beat out black space by taylor swift and can't feel my face by the weekend. it may be tough since swift and the weekend both have seven nominations a piece. the grammys will be handed out in los angeles, next february. >>> she was a life force whose life lasted not nearly long enough. janis joplin wrote a song about buying a mercedes-benz because her friends all drove porsches and now a porsche that did in fact belong to janis joplin is up for sale. if you want a porsche painted totally psychedelic, we have one for you. it is about to be auctioned off. sandy? >> reporter: i had so much fun. the rock icon is back in the news this week. 45 years after janis joplin died. and the new film, a documentary called janis little girl blue is in theaters now. oh, lord won't you buy me a mercedes-benz. >> she may have asked for one kind of car, but the late janis joplin actually went with anot

up on bloomberg markets, a discussion with the founder of the vanguard group.york. this is "bloomberg surveillance" on a bloomberg television. ♪ erik: good morning it from a new york. it's midmorning in london. if it is indeed sunny. i am erik schatzker. it's time for the business flash. jeep is being pushed into rental lots. rentals were 57% higher than last year. interest.ill pay more the biggest institutional clients will have their rates raised in a month. they will affect only operating which are less likely to be withdrawn in a crisis. the wealthiest 400 people in the world saw their net worth decline by $19 billion. he is falling to number five on the list. he lost 25% of its market value. erik: is there a science to social media? social flow is building a business on it. companies publish the right message at the right time. everywhere from facebook to pinterest. good morning. what we begin with this. what is it that clients pay you for specifically? a technology platform that the client used to get their content out to facebook, twitter. it's about del

. >> if i'm in vanguard, fidelity, what have you, put it in, boom, figure out how much the fees are?t really because it's -- the industry has gigged the system to where you might have a vanguard fund in your plan. it's five basis points, yet, look at the fees, you wonder, how is it this exact same fund goes for 1.4%, right? it's because the industry. whether it's the brokerage community, the insurance companies, the record keepers, some other provider, they decided they have to get paid first. what you think you might have, inherently, foundation is good, at the end of the day, it's not. >> you have a business which is trying to be a low fee business? low cost business, but to do that, you need businesses, not employees. >> handcuffed by the well-intentioned employer, the choices they made with providers. if you go to showmethefees.com, how do you compare to industry averages? go beyond that. we want your disclosure form and determine what's your plan actually paying? a difference of 2-3% over a court of 30 years causes you to run out of money 20 years earlier. we are living longer.

betty liu talked about that with the founder of vanguard, jack bogle, one of the claimants to the --cker, are a bad stock picker. there is someone on the other side of every trade. net that needs to be scattered. clearly talking his book. why is it so much harder to be an active investor in today's market? moves occur soet quickly. looking at august 24, you had stocks down 15% or 20% in three seconds. michael: if you hold on, they recover. joyce: that not back to where they were. you can get knocked out of them at a bad moment in time. you have to be able to hold onto them and have them come back. knowing the companies and fundamentals of those companies, taking a longer term, that is how you will find the best value. michael: what is most -- erik: what is most challenging? value, growth, or momentum? a fascinating story on monday about asset allocation ideas. you're thinking that this is the year to be in bonds, stocks, or commodities -- last year there were no gains to be had. 2016,ve to think that in is there anything that will break the trend, or will we continue with the flat? s

mutualard to vanguard funds, index funds, they are wonderful place to be, but it is the other end of people we would find out what they call the fizzy wine in britain. they cannot call it champagne. they spell it like champagne. it is britagne. combining the 2. another fellow wants to talk to name it after a scientist in england that looked about those -- that looked at those things. we would like to wish tom keene and francine lacqua a very happy new years from bloomberg "surveillance." ♪ david: running out of time and money. default on $37 million in interest payments due tomorrow. toasting 2015 with this stuff. we will tell you who came out on top in the economy in 2015. and what about the rest of the world? you won't believe whose economy has been growing faster than china's. welcome to bloomberg . i'm david westin. brendan: here with us on new year's eve, keri geiger, justin fox. we are going to look back at the year that was. first we talked to vonnie quinn about what is happening right now. there has been a 10th arrest in the paris terrorist attacks. the suspect arrested y

the vanguard depreciation, this is like a over vacuum cleaner.or not bode other types of yielding products that people have gone to. insided see a huge shift etf-land if we see this gradual rate increase. scarlet: thank you so much. we've got much more coming up in the next 40 minutes. but we want to show you some live pictures of the biggest cargo ship ever to visit the u.s.. passing right by our san francisco bureau, headed to oakland, one of the united states's a guess ports -- biggest ports. ♪ scarlet: welcome to bloomberg markets. good afternoon. thisis what where watching hour. the s&p 500 index may be poised to in the year flat but michael holland says, when you look at the bigger picture, this was a banner year for investors. betting big and mexico in recent years. now it looks like he is breaking up that relationship. and from the impact of climate change to new technology, the wine industry is undergoing massive changes. what you will expect in 2016. first, we want to head over to the markets a desk where julie hyman has been keeping tr

nominees are really love by deangelo and thehe vanguard. uptown funk by mark ronson featuring bruno mars, thinking out loud by ed sheeran, blank space by taylor swift and can't feel my face by the weeknd. >> this is a really good category. okay, song of the year. >> my p psonal favorite cacagory. >> okay. >> this rewards the writers for the song, right? >> which is why it's my favorite. all right. nominations are "all right" by kendrick lamar. kendrick duckworth, mar anthony spears and pharrell williams. "blank space" by taylor swift. maximum martin, shellback and taylor swift are the song writers.s. "girl crush" by little big town. hillary, linzy, lower mckenna "see you again" by wiz khalifa. and "thinking out loud" by ed sheerara ed sheeran and amy wadg are the song writers. >> and last for us is album of the year. >> album of the entire year. >> all 365 days, alicia. >> the entire year goes to -- well, not -- well, the nomimies. i'm getting all excited,'m on the w wng day. all right. "sound and color" by alabama shakes. "to pimp a butter