tv The Willis Report FOX Business July 11, 2013 6:00pm-7:01pm EDT
melissa: we will see you tomorrow. the willis report is next. she also has a slurpee. >> tonight on "the willis report." get ready for spiking gas prices crude-oil is way up also bad news for bacon lubbers a.m. pork prices are skyrocketing will wait until you hear why. bidding wars on housing. how to do that? the right way we're watching it all for you tonight to. gerry: all that and more of
first the top story tonight locking to win not -- a new high but not time for celebration. the words of charles schwab to brought wall street to main street. risen is it now? schwab described the market's little more earthman a casino. today he says it is document -- beaming the system high-frequency traders, a glitch and dumb government policy by taxes to push the small investor to the sideline. so now let's bring the -ditor at "barron's".com and our very own charlie gasparino author of the best-selling book, the triple threats. >> we wanted to be a best seller. gerry: i am interested what you have to say.
he believes all americans should be able to invest in the stock market available to the big guys but what do you say? >> right now he is worried that they're out of the market that they're not using the schwab discount brokerage system. he is right we have the flash crash didn't like the high frequency trading they don't like taxes. but if you read a great blumberg column to talk about the index fund as opposed to the hedge fund you were not stock-picking you made a lot of money. i think the fallacy is there is the information in etfs to wall street. you should not play in that field. you are not a professional investor for you are the
average guy. invest in the mutual-fund. gerry: but i should be able to play and not worry. >> they are not made in to be equal. >> know they should not. gerry: it should be open to me as those in manhattan. >> what about the nba? it is the same thing. gerry: it is not the same all. >> smarter people do better in the markets. steve cohen. he is better at trading then you. don't compete. gerry: betty is in trouble right now. >> her and warren buffett has the same playing field but you are talking about
speculators that had a computer advantage over the rest of us. there is a nice laptop but those on the southern tip can do a faster. that is a problem. >> but that is for the long term advantage. >> to go against professionals is foolhardy. if you are a smart investor you put your money in places of the index fund. most cannot just beat the index if you put your money in the s&p 500, how much would you be up? >> talk about the lost decade you're up 213% with the vanguard index. gerri: let's move to a different topic that the sec will say hedge funds can
advertise to everybody and a lot of the people who'd do what i do those who are investors say it is terrible. isn't they are horrible at what they do. >> the story today in a bloomberg business week laid it out. 20 percent of the profit with steve cohen it is a 50% and they're not returning the market. that was a brilliant article because by eniwetok atoll billion today are but they are not. pat, by the index. gerri: but what was the better investment over the last year? i should be able to play in the market to not worry
civic i should be able to play in the nba. i should. but you should not be why are you? that is not the terminology. gerri: it should be open to everybody. >> it is open for you can buy stock. >> i'm sorry i am with the jerry. i think the markets should be regulated to the extent it is fair. >> is. >> the information ainge you are right and i would say don't go against the embattled think they should have the technological edge. >> if you are the average investor to go up against high-frequency trading been get your nba and go do it. gerri: deal -- the other point i am not sure what people have big name on this
but also how much you can put into the 401k. >> he is right about that. his strongest ground was taxes and government in position to block you from investing that is a the frustration is doing. race it that hurts capital formation. >> there is a problem with this proposal but we've about because it is not based on the three million-dollar cap. we figured out if interest rates were higher and you were 26 years old with 150 brandon they could cap you because of the annuity. it is troublesome that way but i don't have a philosophical problem. >> because we say eight you have a maximum amount to put in it per year.
>> we have been administration it tells you not to invest. >> let me bring up one other point. also the problem in the market the flash crash so even if you take charlie's advice but don't you lose confidence in the market? >> i think flash crash is the bad thing and the facebook idea was the abomination but why did you need to buy that if you were the average investor? widely watched fox business? because you get ideas about investing and you do it in a way that is cheap a and efficient. if you want to gamble, a gamble. gerri: is a you say jim
cramer is a stock-picking show is wrong? >> i don't agree with his approach to investing. i have known him for a long time i do thank you should take a long-term approach. what has made money? picking stocks or by the index? gerri: that is only the last three years. >> those are expensive you have to pay a brokerage fee or if you do the discount brokerage fee. you still have to pay then you don't get the benefit. >> and there was an enormous return when he sold when he said by. >> fet says of the for all your investment advice i think what jim says if you want to play the market this is a way. no problem to take somebody on the side to gamble
because that is what your doing. gerri: it is like going back to 1999 the market is totally different and i think it is more unfair for individual investors. >> i don't know. if you want to play against the big boys you will lose every time. gerri: bayou should play for the long term or have good returns with a llord buffet -- warren buffett. >> what is preventing you? a flash crash just affect you. gerri: that with all of these investors in the market it creates. >> wait a minute if you have long-term investment you believe facebook will be a $100 stock in three years.
those are the beds by the way i think he will -- warren buffett was very negative on facebook. gerri: but the long-term impact with the ipo is that makes for a market less predictable and less an understandable and individual investors have less confidence. >> do you know, what i think? i. c. qe2, three, four or five or six is more problematic to the long term investor than anything you presented because we are devaluing the currency. >> but that is what people say. >> is a destabilizing impact
to print money. gerri: also a loss of consumer confidence in the market. when i hear from the words that is what they complain about. >> long-term uncertainty am not saying it will cause inflation with the financial crisis but the long-term certainty is much more problematic than the flash crash. >> my father-in-law's says it is rigged against the little guy that is where he doesn't invest. >> myook inside trading talks about that but that is not what is keeping the matter the market but they are worried of the other issues. gerri: and ben bernanke. you are right. figgie for coming. >> great debate. gerri: sorry we were yelling jack and charlie. jack and charlie. we will be right back. you make a great team.
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with the futures. when does it hit the pomps? >> has already the national average hit $3.55 today that is up $0.6 over the past week and we're already seeing many markets across the country with a spike of $0.10 per gallon or higher. also with the rise of crude oil from 96 up at 106 yesterday when you see crude oil moving as much as that you will see retail gasoline prices go up $0.25 a gallon for every dollar of crude oil. gerri: what is causing this? we have some of the steepest supply drops looking at crude oil or gasoline. do you agree? >> i agree that is a part of the pitcher the department
of energy has recorded reductions of crude oil inventories at one negative inventory so that is contributing to the rise of what we see right now the. gerri: 2.7 million barrels per day. shouldn't this reduce our prices? >> if all the oil stayed within the u.s., i would agree. by a rauscher we see significant numbers of exports as well. on top of that we have the uncertainty of egypt did the suez canal that creates nervousness and that is what pushing the prices higher. gerri: some people say that we will see prices go up at $4 a gallon.
what are the breakouts regionally? they are different all over the country. >> i don't think we will see for dollar gasoline widespread but certainly california or maybe the great lakes. is reason -- known for its recent of volatility of fear and we saw a tremendous spikes because of the refinery problem. no with 10 or $0.20 a gallon , those states will see very high prices as well. now it is time to look at fox business., it was a bernanke boost and stock scott extra fuel after bernanke said he would keep supporting the economy and pat sent the market surging past all-time highs. rare surplus of $160 billion
in june the biggest surplus of five years keeping the nation on track for the lowest deficit since been due to a $66 million dividend payment from fading may and freddie mac also the senators voting to bring back last the goal is separated the primary paging function including senator elicits ward and john mccain to say it played a major role in the crisis. microsoft is focusing its business on devices and services after a tepid response to the latest operating system and declining pc demand hasn't helped either. those are some of the hot stories right now on fox business. how can you win a bidding war for your dream home? bacon lovers to be paying a
lot more for your food and pork products. i will tell you why. coming up. ♪ i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcerscottrade... ranked "hight in customer loyalty for brokerage i'm with scottrade. and investment companies."
we have the american college of the every medicine. thank you for coming on the show. what about the virus that is killing p.i.g.s. quickly? >> it is a very scary situation it is a diarrhea virus. originally only found in europe and asia but now we're finding it has become prevalent in the united states and has never been here before now is an over 14 states. gerri: how does it get here? >> nobody is sure but it is transmitted through feces and possibly through contaminated food but the virus can live off the animal for over 11 days. with the fact it was by some days prut's even. >> this is far different. kim in effect humans at?
phoenix no. thankfully it is not a threat at all to people which is such a relief. gerri: it an take out a whole litter like that? >> it is very scary to be and transmitted directly if the animal is exposed in their net to the three as affected but sometimes they will get the symptoms but the young piglets under 18 or 21 days 90 percent will die and under seven days all of them will likely die it is very scary. gerri: so what will happen to pork prices? i noticed that the purchase or my bacon is more expensive. >> it's true peace because of the threats the price of
pork will definitely go up there will be a lot more by a security in in general to keep the virus from spreading whether increasing by a security to make sure we don't bring that into you check every single truck and everything that will all contribute to the rising prices as well as mortality we will see a large number of p.i.g.s. later in the year. gerri: thank you for coming to eliminate as. we appreciate your time. coming up later the results of a study showing if parents are really saving for college. you might be surprised. how do do that? with a bidding war doesn't ever make sense to go into a bidding war on the house?
gerri: okay, it is game on for home buyers in the market. there are bidding wars erupted across the country and it is up to you to play your cards right. so how do you do that? welcome to the show. we were talking on the break, i was saying do you ever want to be in a bidding war? you say you might have to. >> you don't have a deal with that whole drama, make it. a lot of times because there is very little supply and properties that are good, more than one per. gerri: there is no inventory, you might be smart to wait until there is more because in some markets is astonishing how few
homes there are to choose from. >> you had to do your homework, you have to be prepared. if you don't on the market, you have to know the value of homes, very important, you really have to have your financing in tact. gerri: the lender should be on speed dial. >> absolutely. gerri: maybe you should be preapproved. >> absolutely. the only thing this relies on is an appraisal of your home. gerri: here is the point i thought was so interesting, know the seller's needs. this can be difficult to do, you don't always know the position the seller is in. how do you figure this out? >> the broker should know that,
but many times people focus on the price and if you ask, okay, the broker, if you're not using a broker, doing it yourself and you have flexibility, you have to talk about your terms and some people have to get out earlier, some later. the cash down is important. you then sell the best things first. and then you tell them a little bit about yourself. like my family would love to be in this home, my daughter would love this because many times, not always, somebody who lives in a home and love this home wants to see another couple who is going to take care of it. gerri: this sounds like 2005 all over again. people would write these elaborate letters of how their children could see themselves in the house, very emotional, but
it works. >> nothing works always, but you make yourself human. ggrri: let's talk about eliminating contingencies for just a moment. you want to have your loan in place before you go, but also having the house inspected, should you give that up? >> no, i would not say i will take it as is, i think that is very risky because you don't know what you are going to find. no contingencies, which is great to have as far as financing, he has to be in a position you know if you didn't get a mortgage, you could buy all-cash or else you lose your down payment. and engineers report limits the time, have it done within a day or two. the quicker you get your home and to contract, the better off
you are because until it is in contract, the seller can take somebody else. gerri: and it happens all the time. >> you need an attorney willing to act asap. gerri: great advice. cannot believe we're back in a situation. thank you. >> thank you, appreciate it. gerri: we want to know what you think. would you get into a bidding war for a house? vote on the right-hand side of the screen and we will show the results at the end of the show. now the latest developments to a story weehave been followed. a deal to lower interest rates on student loans. the rates doubled last week as you remember after congress failed to act. interest rates would be based on the 10-year treasury note plus an additional percentage meaning rates for students would be around 4%, that would mean a
much better deal than what it is now, but it could rise of the economy approves and treasury notes become more expensive however they would be capped at eight and a quarter percent. even if there is a deal, with parents have enough money to send their kids to college? the latest survey shows parents are saving more options the family trips than to send their kids to college, so people say vacation is more important. senior financial planner, this blew me away. to think parents would be saving for vacation before the kids education. what is going on here? >> my wife and i have three young kids, it is easy to get caught up in the immediate things he wants to take care of and not focus on the long-term. at the same time if you sit down and really think about what your priorities are, college rises to the top, so make sure your money
is going toward that as well, opening 529 plan. so you have money saved. gerri: compound tax-free, what can be better. parents saving for vacation before education, they don't have an emergency fund by and large, and not saving for retirement, so where is their money going? >> it is probably going to the immediate day-to-day kind of things. retirement needs to rise to the top. if you are traveling with a child, they tell you to put your mask on first. that means you may spend a little less on other things to make sure that priority is taken care of but you can feel confident you won't end up being a burden on your kids and you
can still be a lot of those other things, a shorter family vacation you have to balance between them. gerri: it is not just the lack of saving that is the problem, you are also a role model for your children and if they see you making those sorts of choices, that is what they are going to do. do you believe these people are handing down their bad practices to their kids? >> kids are always learning from parents and we have the opportunity to talk about what is going on and our thought process taking advantage of every day teachable moments. my six-year-old looked at me and said can i have my own credit card? i asked her why first and she said because when you go in the store you can get whatever you want if you have a credit card, so the kids are observing what we are doing. we need to make sure. gerri: give me a short piece of
advice for people raising children. it is expensive, a huge burden. if you try to find the extra $150 to stalk away, how do you do it? >> you decide that is more important than the other things you are spending your money on. maybe your family vacation is shorter or you don't go out as much or too less expensive restaurants, you decide for you what is important, make sure your money is going toward that anend you feel confident what yu are doing less of it is not really a sacrifice, it is supporting the things you want to make sure are taken care of. gerri: thank you for coming on. people saving more for vacations than education, thank you. find out why you may want to put down your diet coke or pepsi. and if you live in rural america you know deer ticks are everywhere this year, but how can you protect yourself?
trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t lels to normal in about 2 weeks in most men. axiron can restore t lels to normal axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregna and children should avoid contact where axiron is applied as unexpected signs of puberty in children or cngesn body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelng; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. comm side effects include
gerri: warm weather may be drawing outside but also closer to eight tick bite. this can spread lyme disease and other germs so how do you protect yourself and your family? doctor, this is the big thing that i fear every summer because it is so easy to get a tick bite and not even know it. what you at risk for a few contract lyme disease? >> lot of chronic problems, fatigue, i cannot think of getting through the day without concentrating, that is a big problem. it is a real chronic problem and people may not get address or
diagnosed on time may not get the proper treatment. oral antibiotic is in short supply and the fda wanted people to know they may not be immediately available. many patients do not even know they have been bitten by a tick. do a check when you come out of the high risk area. global climate change perhaps more deer population, more deer ticks. it is about using the right formula to prevent for you and your family this summer. gerri: 24,000 in 2011. it seems i know more and more people with lyme disease and i keep reading about cases where people don't get sick, they take the drugs, doesn't work, why is this disease so insidious? >> you may not see symptoms of 2:30 days. they don't get the familiar bull's-eye rash.
if it is in your area, you are a couple of days away from it we have to be aware when you are outdoors or in the woods or hiking, you want correct repellent such as heat o deet or products. it is about risk and benefit. it is important, it is real, it is affecting people. 80% over the past couple of decades. you may want to consider something like a natural repellent. they work for several hours however deet, the concentration will tell you how long it works for. if you're out in the woods walking in those areas and you know where they are, you need to protect yourself. gerri: am i wearing long pants? >> long pants, long sleeves,
light colors c can spot the tick. it is the size of the head of a pen. in your scalp, he may not look for it, be aware of your surroundings. you can enjoy mother nature this summer but take the time to do the check and see an allergist if you need treatment of a rash. get it checked out. gerri: thank you for coming on, lots of great information. we're going to get some deet. all next week "the willis report" is giving you a user's guide to health care since the system can sometimes seem more like a nightmare than anything else. we will get you the most from your doctor and insurer. it starts monday, don't want to miss it. still to come, my $0.02 more. and you diet sodas make you fat?
gerri: as we become more and more health conscious comedy, a consumption of diet sodas has skyrocketed over the last two decades but does that really help you lose weight? joining me now with surprising results. this is shocking to me a diet drink and some of these things say 0 calories can make you fat. how so? >> surprising me as well.
what they are thinking is even though it is 0 calories, that is not all there is to it. chocolates taps into the pleasure center to make you feel satisfied, unfortunately these sweeteners not only don't provide the pleasure and satisfaction, they actually blended. they're more likely to go for high calorie, high-fat comfort food. gerri: it makes you go for the mcdonald's instead of salads? >> the comfort food because you're not getting it from the drinks. gerri: here's what the association says. you may have a different view. low-calorie sweeteners are the most reviewed ingredients in the food supply today. a safe and effective tool in weight loss and weight management and you say? speak of a currently say it is a good substitute for diabetics but we don't know. we're coming with not easily
able to open up the box without looking at it more closely. i need to know what to tell my patients and how to counsel them. gerri: if i drink a soda, i drink a soda with sugar in it because i do it so infrequently. but are they bad for you? >> regular soda have 8 teaspoons of sugar compression of the 150 calories. i would drink six to 10 of those per day. my entire daily allowance of calories. hard to say between one or the other, but this is something we need to look at. >> to have a higher rate of diabetes, strokes as well as cardiovascular diseases. the top three killers we have.
gerri: if it takes a paragraph texplain what is in the product, i don't buy it. gerri: great job. amazing. how popular are these diet sodas? diet trends are growing in popularity. on the list of the most consumed sodas, there are four drinks in the top 10 compared to just two back i in 2000. dr pepper, this is a classic been introduced in 1885, i did not knnw that. the amount sold each year in texas alone can fill cowboy stadium. neon green drink of mountain dew in 1948 and is a favorite among college students mainly because of the caffeine. number three, pepsi. the number one most popular soda until 2011 when diet coke took
over. diet coke has turned 30 years old this year. number one most popular soda is good old-fashioned coca-cola. the soda 17% market share is higher than pepsi and mountain dew combined. the other diet so as you make the list, diet pepsi number seven, diet mountain dew number eight, diet dr pepper at number nine. we will be right back with my two cents more. would you get into a bidding war for a house? stay with us.
gerri: at the housing market recovers, bidding wars across the world are popping up all over the country. tips on how to win these wars. would you go to battle in the first place? no, you feel this is instigated and fueled either realtor. jack says yes as long as it is a smart buy. 11% said yes, 89% said no. i respect that 89%. here are some of your e-mails. bill from florida writes the sec trying to make money market funds more like banks because it on so investors are smart enough to know they are investing, not depositing their funds. the proponents continue to push these types of change long after the investment industry assisted the sec and drastically changing
regulations back in 2010. richard from utah says bureaucrats and many elected officials in washington are as addicted to their own power as a crackhead trying to score his next hit. i think you have your finger on something there. daniel from arkansas. no way do i trust most medical offices to keep records safe. i have medical clients who will e-mail patient statements to me unencrypted. most offices run wireless which bring up a whole different set of issues. i like the show and you, keep up the good work. i love hearing from you, send me an e-mail. finally tonight, charles schwab, yes, that's charles schwab, the ceo wrote it on burner of a column today. they call in regular readers to the problems that fix th l the . the two of them wrote it is
nearly impossible for individual investors to compete on a level playing field in a individual stocks. high-frequency traders dominate trading on the new york stock exchange and little wonder the superfast traders getting an early look at trades setting them up for easy profits. they recently got in trouble for these economic data early to their customers but the big exchanges have done similar things. regulators looking at the other way, looking the other way and the media is so cowed by the wall street firms they don't do anything either. believe me, nobody in my business seriously criticizes the new york stock exchange because it is an iconic symbol of american pride but it is one in need of reform and change, that should be serving our needs, not a handful of traders with super fast computers in lower manhattan. coming up tomorrow we have the
15-year-old creator, you want to see that for sure. thank you for joining us, don't forget to dvr the show if you cannot catch us live. have a great night. lou: good evening, everybody, thank you for being with us. a record-breaking day on wall street and the rally was underway from the opening bell. dow jones industrial average u up 170 points on the day closing at a new record of 15,461. the 24th record close of this year. five of the past six trading days now up 18% year to date. the s&p setting his own record at the close of more than 22 points closing at 1675. the broader index 18th record close of the year. up more than