tv Street Smart Bloomberg December 31, 2013 3:00pm-5:01pm EST
world. how they look at gold -- and they are such a big buyer in this space -- it will be interesting to see if they take over in gold next year. they are the world's biggest buyer and it could him price -- impact the price next year. >> inc. you very much. -- thank you very much. thank you very much. 30are "on the markets" in minutes time. in the meantime, "treat smart" stars now. -- street smart starts now. >> welcome to the most important hour of the session. we are scouring every market for your last trade of the day. one of those is due by where they are celebrating new year's eve right now with world records. >> they are trying to set the world record for fireworks. is to set off 400,000
firework which would handily beat the previous record of 77,000. this is just a few of those many many fireworks. >> i love that it is in a display of extravagance and decadence it is kuwait against dubai. >> it makes sense. you have oil money, you need something to spend it on. >> if i had that money, i would spend it on fireworks and other things. we will kick it off with the big three index. are filling in obviously for adam and trish. rising just a tiny bit today but really capping off what has been a phenomenal year, over 29% thate game for 2014 and does not include reinvested dividends. >> let's take a look at the 10 year here. also a great year if you were
shorting bonds. the yield was up over three percent today. it is interesting if you look across the spectrum, i find the 40 year to be more interesting. the ten-year is what is directly linked to mortgages or driving that which is what most people find interesting about bond yields. take a look at at the gold futures here. also a good place to be short and gold down just a quarter of -- rcent to down today. when looking at gold, not the year to date chart at the best thing is to look at the last 13 or 14 years in a row. the only loss in well over a decade. it is just a year of superlatives. at one point it surged upwards and then it came down. bugs will telld you that gold is manipulated. it is not clear of whether it is by governments or illuminati
but the people that invest in these markets say that they are manipulated the most. stay away if you think it is manipulated. they cannot. like flies to a fire. month to a flame. >> i think that is the analogy you're searching for. into the close today, let's start with phillips 66. berkshire hathaway will swap about $1.4 billion worth of shares of phillips 66 for full ownership of their pipeline services business. warren buffett expanding his bets on oil transportation. hurts local holdings, that stock is up better than nine percent. it adopted a poison pill after it saw "unusual and substantial activity in their stock." and there are questions about who might have been pushing for some changes.
they are trying to defend themselves. speaking of big ownership in the stock, look at marble technology. the chip maker rising after kkr said it had taken a 6.8% stake in that company. those shares are gaining. now, to our big story. netflix has had a huge year. speaking of more superlatives. quadrupling this year making it the best performing stock in the s&p 500. the streaming service is shaking things up. the company announced that it is setting a new pricing structure and an attempt to provide access on as many as four screens. they will let household members watched it for shows at the same time but it could customers to pay more for official family members. >> it was cheap enough to begin with. two -- range from 699
6.99 to 11.99. can they keep this up? something tells me they will not be able to. for us, whatt up exactly is going on here, what is behind this move and what effect will that have on netflix. the bingeoks like matt.g chart for it has been one of the biggest stories in hollywood's year. with netflix rolling of these original shows same, we will put money into the originals like "house of cards," and "orange is the new black." a lot of companies saying, good luck to you and then you will come back to us into the old saying of buying shows. it works out pretty well for
netflix. to your question about the stock, who knows. the stock has had a wild ride but i think that this is a company that has been hungry to continue to grow the subscriber base which is about 40 billion right now. when you look at the pricing, one of the reasons why netflix got big in a hurry was its willingness to sort of turn the other way, knowing that a lot of people are sharing these different netflix accounts. it was encouraging people to use it, making it easy to use. there are a lot more users than subscribers. i think there is this goal of continuing to boost the number of subscribers, boost the revenue so you can pay for this content. it also feeds into the same story and from a business perspective that is where they will continue to go in 2014. >> let's go back to the stock. you said, we had it wrong on netflix and you actually withdrew your coverage of the stock. >> it was kind of.
somebody in my position should not apologize because when i am wrong, that is not a misery that is shared by me, that is shared by the investors by the investors. for me to apologize is worthless. >> your withdrawing coverage. >> you say the fundamentals are not there for now question mark >> it is horrible. >> i don't understand why. nothingy produce is short of phenomenal. incredible. less than the price of one movie ticket, you can watch as many movies as you want for months. i just want to cancel hbo, showtime, and cinemax just because i have netflix on there and it takes care of everything i want to watch. a hbo is allowed to sell you carte, they would do that all
day and all night. the cable companies do not want them to do that. >> it'll have the same collection. >> they have access to four out of the top five movie catalogs in the world. some of the most popular shows ever that have been on cable have been hbo shows. not only that, they produce a lot of content for others. >> they are not allowed to use the netflix model? >> as of this moment, they're currently in negotiations with all of the cable companies and i would not be surprised if at some point this year you would coupled with a broadband subscription. >> people have been talking about come petition for netflix for a while. there are other folks in the market. you already have some of the players in the market. you have hulu, you have some of the other online streaming players. you have amazon in the market. a lot of people that have amazon prime don't really use
the streaming service. they use it for the free stripping -- the free shipping. second, they have 30 million u.s. domestic am a those are the ones they make margin on and they have 10 million foreign subscribers that they lose money on. they have 30 million subscribers and they also have a that isness technologically obsolescent and generates roughly half of their ebitda. you are losing a business that is producing as much earnings as three or four domestic streaming subscribers and maybe five or 10 international. >> you are out there working on "bloomberg west" and you do a better job of covering the media than anyone i've seen. i'm looking at a p/e ratio of which is insane.
>> does not make sense when you get to that point. what did the bulls say? >> i think you have seen over the past couple of years the stories of platforms. whether it is amazon or netflix or pandora, three examples of companies that have incredibly hot stocks over the longer term. with financials that don't make as much sense. people are looking at the long game and saying that people will choose specific platforms and maybe one is based on music and one is based on entertainment. the strongest will survive. they will have more leverage ultimately even if the financials don't make sense in the short term. when it comes to here in hollywood what is actually being spent on these original shows. gettingwhat is outspent on the traditional tv players, it is more of an amazon and netflix story. as much pert spend
show as amazon and netflix are willing to spend. the biggest challenge it could be amazon if they were to choose to really turn this into something more than just sort of an add-on feature to amazon prime. that could be something. that could be something. don't bet against the folks, the home of the drone, if you will. two points about amazon. just this last week, their servers crashed because they had so many sign-ups to amazon prime accounts that it crashed amazon. that is pretty impressive. the last we knew about amazon prime, it had about 16 million subscribers. i would not be surprised if we are well over 20. >> i was i subscriber over christmas and i did not know there before. incremental on a five for 10 million subscribers, you can use that money to buy a lot
of tv content. >> we will have to leave it there. i will believe it when it happens down >> the platform point that he makes is interesting as well. hbo go might come out with a broadband subscription. everyone is looking to give you the whole platform. >> yes, they are. they so much, guys. -- thanks so much. it is the new year means new market? there correction coming. it is a place where secrecy and discretion our way of life. we will take you inside of the vault of a swiss bank.
there were a few that were close to the target. julie, one of my favorite strategists. >> i love that you have favorite strategists. >> we are in a peaceful motorcycle gang together. >> you are kidding. >> no. >> i need a picture of that. >> 29% something happen as the gain we have seen. he was off by more than 200 points because none of the strategists on wall street or anywhere that i know of thought we would have as big again as we had. his target is 1650. right now we have 18 43. this is a miss we were by about 18%. gina had a target last december of 1394 year and. if you look at going into this
year where these people stand, the median now is 1950. 5% orould be a gain of 6%. very bannister had 1750 which is the lowest. was to 1975.et like his headshot. >> why? >> i just like it. it is adorable. >> be sure to tell him that. that is where people are looking for moderating gains. she does see correction coming in the near-term. she is the president and chief chief investment officer at ang capital and the editor of "game changers."
hilary kramer, welcome back to "street smart." you say we have been living on borrowed time since june, why is that? ? it is due for a correction just from technical and values. the s&p 500 has had a phenomenal year but in the next 18 months, we are going to see the s&p 500 hit 2000 but we will have to reach race first. it is inevitable. whether it is a downgrade, whether it is weakness in europe. the reasons we had a great year is because of the european union doing a great job in stabilizing some significant risk in greece, italy, portugal, spain. it is coming back to haunt us again. the debt needs to be refinanced and renegotiated. >> one of the themes has been continued multiple expansion. those are companies that set into the rally. going into the year there were some bears like adam parker, for
example, although he changed his mind, he said that we would see contraction this year, is that in the cards yet? >> we could see contraction but it will be sector by sector. the theme of 2014 should be a stock picker's market, not about etf's anymore. you need to find the stocks that are going to do well because they fit into a specific area where there is growth and opportunity. these two divergent themes going on. i do see the industrials having a strong year because even though industrials, even though i have some that are fairly valued. a nice place to hide any kind of market correction. we will see the industrials do well to cause the economy stronger. i travel all over the world. i spent a lot of time in asia and in the caucuses. i can tell you that the growth
and infrastructure development stronger than ever. you want to own companies like ge or abb, the big swiss infrastructure development, engineering, electrical company. that is where you want to be. and these smaller growth plays. ssx injured kaman. he said to look at companies, to start following companies like them. electronic dance music. >> cristina alesci went down and to get a firsthand look. >> what some people will do for money. >> the market, the same few weeks that we saw. they were a double of what its ipo. they came out of the gate at $13 and then went down into the single digits. right now, we are pushing up to
$12 a share. those of the companies where you will have a double. it is not going to happen with the usual suspects. that is over right now. you want to make the point, everyone needs to understand that apple is a place where we go to hide when the market looks risky. do expect apple to break out against the other tech stocks which may start to fall. >> he will keep you with us. is the kind of things that people's ears perk up when they hear about apple. we will take you inside a place reserved for the wealthiest people in the world. it is a fault with a swiss bank. 2013 might have been the year of the ceo shuffle. we will look at who left, who got tapped, and what the big jobs are still open. get your resumes ready. we will be right back.
>> if you are hiding assets in switzerland, you might want to get them out of those banks as soon as possible. today is the deadline for swiss banks to cut deals with the u.s. government to avoid prosecution for giving shelter to u.s. tax invaders. there is a look and maybe you should not get used to it. , it is 80 in zürich feet below. this fault has 3500 safes. we have it in 10 different sizes.
looks like a closet. 200 swissst is francs. the large ones, they are 1000. what you need is to have a bank account with us. as soon as you have a bank account with us, you are capable to open the safe. if you want to come to your safe, you have the two options, either you have the key with you or you leave it over here but you don't have to make an appointment. like to keep documents or jewelry inside. they can stay over here for several minutes, the longest was three days in a row. whatever their business is inside, they can stay however long they want. >> coming up, the ceo shuffle. we will take a long look back at those big corner office
>> dozens of tax breaks will expire. beumber of businesses will facing another without tax certainty. i'm not as word about the companies really as i am about you.n self and will we get tax breaks still? >> if you take the train to work or if your employer, maybe bloomberg is financing how you park, yes, you get hit too. the biggest thing about this tax break is that it hits .verything
it hits the research and development tax credit. that is about 7 billion. that is intel, that is bristol- myers squibb. you have energy-efficient construction. those that could tax rates for hiring veterans. a lot of service groups. it is also individuals. this drops at midnight to 130 dollars. chuck schumer said that this will account for about hundred thousand new yorkers. individuals asr well as corporations. a big deal. >> i think that mine is at least 200 and change. there are the tax breaks. what are the odd balls.
>> they are called tax extenders. tax breaks for the depreciation of racehorses. ofre is from a state kentucky. maybe mitch mcconnell might care about this. also hollywood gets in on the act. there are studios that make television or movies. there is a break for them as well. on the more practical side. for teachers, this matters. for out-of-pocket expenses, they get a write off. that goes away at midnight. you have them across the board. you have those that are very practical, those that matter for individuals. >> we will see these kick and at some point and they grow retroactive when they do that, right? >> the reason why you don't get a lot of people super worried about this is because we are used to do this. much every year we do this where the expires and somebody
figures out a way to retroactively in activities same extenders. there is no move to do it yet at all. as part of this, it cost about $54.2 billion to enact all of these for about of year. that is money that congress is having a hard time finding. find 54 point $2 billion, i'm not sure how this moves. a lot to play out. some analysts i have talked to have said you how have to wait until the end of 2014 for this to be addressed. , philnk you very much mattingly from washington on what we can expect or not next year. >> one of the things that has been a theme, a lot of see sweet shakeups we have seen, also company turnarounds as well. john mcardle became the latest to join a list of executives that plan to hit the road.
matt was so inspired by his coverage of this story that he went out and got some. long overdue. >> is a very interesting story. >> by the way, i got the little geo-bits. it was a huge fad for a while and i think that kids are still going to always be wearing crocs. they are so simple and clean. i did not like them then. then they became widely hated across social media and obviously they are a total fashion faux pas and now i am a fan and i went out and bought my first pair because of the story and they are super comfy. >> they make a lot of sense. you can have a delorean's and you can have toyotas. what would you rather be investing in? i would say toyota. as much as i love tesla, the
same thing, you want to go into an area where the masses love that product. >> i would rather have the delorean. >> was shares would you want? you would want them into yoda, in crocs. >> is there any growth of their? , we aren mcardle said not able to sell the product will notthe cause grow. we are not selling anything else. what should i do? i will open a hundred new stores. thatat is the shadows she tells americans, we would do better looking off at distribution. >> they said, let's give them $200 million. a lot of stories about the sea suite shuffles. it is interesting to me is when it is not finished.
>> steve ballmer loves alan mulally. he is already actively advising microsoft. is one microsoft plan taking dearborn's plan. the most interesting thing is that he is neither denied it or confirmed it. very cagey about it. i have asked him about 50 million times. he has the biggest brand, i would call it with a grin. he says he will stay through 2014. you have mary berra which is one of the most interesting ceo's stories although there is nothing sort of weird about it. dan ackerson has done a great job, although he is almost completely absent from the
media and a great job of running this company. they have one every quality award you could think of. incredibleone an job with their products. this guy is not a car guy. this is behind the development of the new silverado sierra. he is been a huge fan of mary for a long time. she went to stanford business school, she becomes the first woman. >> do you have a favorite carmaker in terms of investment shouted g? do you have shares of any of these guys? >> tesla is one that i've done a lot of trading around. i do think over the long term that tesla could be up player because i'm a huge believer. is that this will be the year of huge exciting
surprises. we will have a lot more stories like we did. jcpenney, a big shakeup. ivan seen this much activism in at least 15 years. they were able to get far in the past year. normal demographics. do you think that tim cook is going to stay at apple. i think that he was a transition. he even looks like steve jobs. so clearly wouldn't be for them to get get to that that next level. a lot to do.' has -- marissa mayer has a lot to do but there are people that will try to subdue her. >> do you look at investments based on these? look for companies
first and foremost. we will see some activism. thisve been looking at activism. we will see some shakeups. we will start with that. >> i hope you are long crocs. the shoes are incredibly comfortable and good looking. >> i think we all need to as christmas presents. the home price index has spoken, values of the most in seven years. we will be right back.
stocks, ipo, the fear of rising asset prices nearly everywhere. nouriel roubini was on that bandwagon. >> we have outside in markets because they are interesting all over the world. >> now the home price index shows that they posted their highest gain since 2006. they say the boom could beginning to fade. we saw this game but you think perhaps that they are going to be gained -- began to moderate. the magnitudee of the deceleration in the housing prices, correct? >> that is correct. everyone goes around saying bubble, bubble, bubble. suppose someone suspects the worst, 2014 for housing prices
comes out looking a little bit like 2008 or something like that. there is a huge difference the way the economy looks now and the way it looks in 2006 2006- 2007. back then, there were all of these people that bought their houses with no money down. in fact, they bought them at inflated vices. 100 really bought them at 20% of value. all of those folks got washed out. if you go to buy mortgage yesterday or today or next year, if you get 80% loan-to-value, that is the most you will get. get. in fact, they will probably give you a hard time without qualifying. if the worst happens in a bubble, we are not sitting on this huge mountain of debt which means that everybody's mortgage won't be underwater. >> let me ask you, it is a great point. rates watching interest
creep up. do we see people rush out and try to get outages? is this one of the reasons why people are looking to lock in these prices as they worry about them spiraling up? >> i am sure there are many people looking to lock in and a lot of people worried about it but go back to may when the fed sort of spooked us all with quantitative .asing and mortgage rates since then, mortgages for purchase, the applications are down. applications for but fore performed purchase came down somewhat. clearly people are nervous about it but some of them are getting squeezed out of the market. as they watch mortgage rates go up and home prices are probably squeezing a few people out. >> we have a 13% increase in home prices in 2013, how much of
and realprivate equity estate consortiums coming in and buying? i do a lot of investing in real estate. we buy condos and three family homes in the tri-state. i don't bother to even ask about a mortgage. it is impossible to get a mortgage even if you have 100 times, literally. to know.d love >> how much of it as investors and how much of it is people buying residential houses in which to live? >> the numbers vary hugely from city to city. atlanta has seen by most more than any other city. the rent, byis by institutional investors which usually means they are buying more than 10 houses the year.
the rest of it is individuals that decide they don't like the stock market for whatever reason and they think a much better investment is to buy a house six blocks away so that they can keep an eye on it. that is what i would call minimum diversification by people like it as investment nevertheless but there is a lot of that. my guess is if you go to some place like san francisco which has prices sharply rising you will not find too much of it. the houses are expensive and the numbers don't work. >> we will keep talking about homes. houses and cars i could talk about all day. >> next year. taper never little hurt anybody. our closer explains in today's chart attack.
when we show you a chart that will make you smarter and hopefully a little bit of money. don't worry about a taper. treasurythe five year yield, why? >> to show that this was the of convergence. --asuries have for firms have performed. you can see how we have one small blip. the market came right back. they are getting overstretched at this point. that is really where we stand right now. historically at lowe's on terms of the yield.
it should not slow down, certain sectors will do just fine. >> you are a point are going forward that it is not really about the s&p 500 so much but about the individual names. that is a bold call. >> 12 months to the day to show you what will happen. >> there are the companies that go bankrupt. they're the big institutions being able to invest. they have only been out of bankruptcy since may 1. this insures bonds, insurance municipals, for example, the concern about the exposure has really been overstated and over concerned. if you look at the chart, you will see that there is strength building. they are going higher. >> we will check it out during the break. we will be back in two minutes.
missed everything that happened during today's session, don't worry because we are getting you caught up on the only stocks you need to know about. it is time for the top 10. urban outfitters is down about one percent. teen retailer extending their losses as the worst performer among consumer discretionary companies in the s&p 500. i guess no one is buying stuff there. >> a lot are suffering, american eagle, abercrombie. thisany will be unscathed holiday season.
kurds hitting a 52-week high. the shares jumping after they adopted what they called a poison pill when they noticed unusual activity in the stock in recent weeks. they expect more than one activist investor is using options to take positions in their shares. that helps to keep the investors from massing too much at stake in the company. >> number eight, marcel technologies. the stock climbed $15 a share after kkr reportedly had a 77% share in the chipmaker. it has been over a year-and-a- half says the stock traded at these levels. >> dry ship that is almost eight percent and is leading the gains in transport stocks. iron ore moneys like and coal. >> number six, a back express shares closed up one percent. they led the gainers on the dow jones industrial average. withtock scott a boost
the latest report. much higher than had been estimated. >> k-rod shares are pulling back one percent. they made a big gain yesterday. blackstone announced an investment in the company. they are going through a sea suite shakeup as well. we cannot get enough. and mock them today. one of the few people buying crocs in the winter pointed out. >> do you know that these shoes, they are not rubber, they are not plastic, but they are made proprietary material. >> it is petroleum-based. >> it actually makes your foot stop sweating. >> you have had them for one day, i have those that do not make your feet sweat. very sweaty have
feet. >> ok, the independent refiners up over 3%. energy stocks led the gainers. , phillips 66 up over three percent. they are getting a boost from warren buffett spent on oil transportation. it can stop about a billion dollars and shares. this is for full ownership of the pipeline services business. >> number to his first solar which is down more than two percent. they are among the biggest losers in the s&p 500 for the 76%.am a they are down >> it is very volatile. the number one stalk of the day, of the year if netflix. it is up just a quarter of a percent after it announced it icl be testing a new structure. it is the best performing stock of the year which has pretty
much quadrupled in trading this year. everybody has been loving on netflix. not loves -- "oranges the new black black" and "house of what is the guy was to mark the guy from bruce springsteen. yeah. and larry leibowitz. up at the podium. think the guest on with erik schatzker on earlier. on -- as been >> we're the only show not having champagne. was talking, pimm champagne wears. tom keene was talking on surveillance about champagne.
>> a travesty. >> i do not drink champagne. do you? >> i do drink champagne. >> i prefer beers. >> let's talk about the close. gain is up -- this 30% where we are settling out for the year for the s&p 500. our record for the s&p. a record for the dow. a 138% gain for the nasdaq year to date. and we have special guests today. rachel crane is with us. , a frequent guest on our programs. and our closer, hillary clinton cramer, stillary with us. >> 2013, asia's weakest market only slightly worse than
thailand. 6.7% down from last year. despite the weak stock performance, the ipo market is gaining traction. the commodities regulator just approved the plan for five companies to sell shares. the market had been frozen while regulators worked to clean up fraud and misconduct. in the offering process, fit the wereny's -- 50 companies deemed ready to sell shares in january. i do not ever get the stories, right? amanda economy. they will put you in jail or shoot you if you do not do what you want -- what they want to do. >> of easley china is a closed market. we cannot go in there and buy shares area -- obviously, china is a closed market area -- a closed market. ,hey are turning to the well
debt management securitized products. ?> so to pure lending the old-fashioned way? >> right. they do not want to deal with the stock market. >> one of the interesting things about the shanghai index, it is very heavily rated -- as it moves to a consumer society, you would expect the growth to be in the consumer index. those overall numbers are not really surprising. >> and maybe not reflective of what is going on in the economy. >> right. >> it is hard to find anything that is overall reflective of what is going on the economy. >> more sophisticated investors are looking at hedge funds on the ground in china. those guys know what is going on and that may be the smartest way to play it. tebow i think the chinese ruled that has now been lit did -- >> i think the chinese ruled that has now been lifted, one
child per family, will change the consumer state and china and will counteract any fears over slowing growth in china. you wait and see what will happen when there is two or three children per family. they are creating their own future consumers. you dowill have to -- not have to convince the russians to produce more. you think the chinese are just shopping at the bit? [laughter] >> it may be too late. the demographics -- they will go through the equivalent of an elevator shaft if does not happen. >> this is not about trying to help the people. this new -- this have as many children as you want is about creating a consumer base in china. >> and love. there is a of love, great index we track very closely in new york city, and that is the love of real estate.
it will cost you $98 million for foot apartment.e- that is a discount from the $115 million originally asking. steve cohen having difficulty to sell. by the way, that graphic -- >> from team america. >> how creepy would it be if you got up to get a midnight snack? i was looking at the address for this thing. 1 lincoln court. pool ourbe we should salaries together? >> nice. >> what about the staging? real estate, they always talk about the staging of things. a rowboat in the living room? >> and the art is not included with that apartment.
probably be much more expensive. >> i think that art would really get him in trouble. >> the art got him into trouble? millions topending get the feds off your tail, and then, by the way, i am buying a $16 million man it -- mansion. i think the feds do not like that when people do bad stuff. it reminds me of "the wolf of wall street." but we will not talk about that today. >> again. >> lavender put and said "hey, you are embezzling money -- vladimir putin said "hey, you are embezzling money. myself and taxes for our country." when he was imprisoned, his lawyers put billions of dollars in offshore vehicles outside russia.
the money is now under control of dutch foundations and it is unclear if he will get access to it. there could be as much as 920 million dollars (the sale of his company in overseas assets. i feel like he will -- >> he said that. he has a lot of bills to pay. finding a fortune is an afterthought at this point. he has been imprisoned for 10 years. stabbed in the face. >> in the gulags. to be out.ppy we have heard that from him. he is certainly a changed man. >> and he has learned a lesson. the next time he takes a stake in an oil company, he will plan better. >> i would say that he looks good. were you not shocked by how good he looks? he looks healthy. >> maybe you fatten them up before you let him out.
pr wise, it would not look good if you let him out and he looks on the edge of death. let's talk about social media. forget about tweeting. ofew study found that 20% u.s. adults are using the photo website pinterest. >> really? i do not believe that. >> twitter has higher rates of engagement with 46% of users going to twitter daily. that is 13% for linkedin. facebook,ponders use up from 67% last year. i do not think the twitter relative use thing is really surprising. twitter is not a mass product. it is really an niche roddick. >> but pinterest? do you use pinterest? hillary, do you?
>> i do not. but twitter is going higher. the technical traders, they will bring that to $85. they are just fooling with everybody's head. i want to tell you, there are more buyers than sellers. the next two to three weeks -- we have been playing it all the way up. >> all the way down? >> they used back for christmas, and now we are -- >> did it set a record for the number of bear markets achieved within the time of its ipo? think it is grotesquely overvalued. >> pinterest or twitter? >> twitter. actually, both. >> never get confused between overvalued and stocks that are going higher. it is going -- >> i don't. [laughter] >> we are talking about netflix. pe of 75. what is your take on netflix? what you think of "house of
cards?" technology that can leapfrog. that is the problem inherent there, whereas twitter certainly also can become antiquated, but it just has to do with what stocks major players want to bring up, and there are billions of dollars all on the margins, just ready -- >> couldn't any stocks become antiquated at this point? >> even crocs? that brand loyalty. there is something to be said about the first entrants advantage, right? at a certain point in time, everything becomes obsolete. >> that is 1000% correct. the question is can you make the money off of it before it becomes obsolete and i think in most of these cases the answer is no. >> even with netflix? has doneux -- netflix
a fantastic job. and remember how they started off, competing with blockbuster. all those physical stores. >> remember blockbuster. >> yeah, remember that? those.me go to zap what you call these? -- let me go to zappos. the are thinking outside box. the shoebox. the ceo is going outside the traditional structure. zappos will operate without any job titles. >> [laughter] >> employees can have a number of different roles in the circles. tony has been known to make radical changes in corporate culture and has invested his own money to transform downtown las vegas where zappos is headquartered. i will tell you as someone who
has worked for a company with no hierarchy and no bosses, they still exist and you can still get fired. people who think there are no bosses do not understand human nature. >> and you imagine when the first public company introduces this structure? >> is amazon next? >> i do not think mr. b's those will require -- i do not think will do that. >> will be ceo say i will make the same as the guy next to me? >> true. . wonder if he uses zappos do you? it is an incredible service. >> i do not because the shoes have to fit. there is too much returning. >> or must be a lot of people who order and do not return them. i wonder how much of the earnings revenue comes from that. >> like people who get groupons
and do not use it. >> it is almost like a hobby. hey, i ordered them. they do not fit. ice in the back. >> i want to know that it molds to my foot well. i am not a crocs wearer. >> that you can walk in it? >> right. >> do you have any crocs? >> no, not my style. >> do you know what? i will buy you a pair. >> [indiscernible] >> you just said you did not have a pair. >> denver has a problem to deal with tomorrow? >> problem. >> and there may not be enough. >> not enough weed. edward snowden is a headache the obama administration cannot shake. ♪
>> it is new year's eve and almost 4:20, so we are going to talk about pot shops that will open their doors tomorrow. 50% are in denver. if the supply runs out on the first day, well, there are going to be a lot of unhappy marijuana enthusiast. michael elliott is the executive director of the medical marijuana industry group and he can tell us how colorado is bracing for demand. it is not just people who want to use it for fun, michael. some people insist they need it, right? >> that is absolutely right. we have an excellent medical marijuana program here in colorado. we have 1000 cancer patients, any number of people who say they are able to be alive
because of using marijuana as a medicine. >> michael, is it going to run out? do you have enough apply to meet the demand that may come with recreational use? >> it is hard to know. my feeling is we will run out. all of the marijuana sold through the retail businesses have to be grown by the same businesses. our closed loop system in colorado to block out the black market. what that means in the short- term, it probably will be closer to 30 or 40 businesses opening across the state. it is a very limited supply. as time goes on, more businesses will be opening up and that supply will grow. but on january 1 here, i think we are probably going to have probably a lot more demand than supply. >> it sounds like despite the legalization that the black market for marijuana probably is alive and well, at least as long
as you have the supply issue and colorado? >> there are steal you -- there are still dealers? >> yes, of course. of course the black market is still there. but we have a lot of evidence showing we have taken a pretty big bite out of the black market here. it is frustrating that in the short term here there probably will be a supply shortage. but really i think it is a testament to how good our program is, because we have state and local licensing and checks,t comes a ground requirements. in denver specifically every business has to go through a public hearing with the neighbors. and then five inspections from the fire department, the building department, zoning, and many regulations on packaging, labeling, tracking. >> michael, it is supply will be supply willby -- if be outstripped by demand, surely the legal outlets will be
raising the price. if you are sitting on barrels, or you will move that along for a lower price, no? >> i think that is a likely problem. consumers will be willing to pay a higher price, one for availability, and also for the safety aspect we are bringing to the table. here we have averaging and labeling. there are certain pesticides. we have very strict regulations on what can be used to grow the molds, mildew's, issues that have been rampant in the market where people do not know what they are consuming, these are issues we are in the process of solving to guarantee consumer safety. is there no price control where it is being sold legally? know of any price control. but, you know, i think the rice i imagine the--
prices will go up in the short term. for medical marijuana, the prices have been as low for medical marijuana as i think they can get. a decade ago it was probably $50 for an eight here, where it has been $20 to $25. we will just have to see. >> there is one thing that we have not mentioned. the poll in colorado can grow their own marijuana at home if they what. is there any data on how many people are taking advantage of that? >> that's a tough one. that aspect of it -- people can do that, but there is an awful lot of safety concerns that come with that as well. it is not as easy as distilling your own beer. -- it is about as easy as distilling your own beer. in other words, it is not very easy at all.
there's a public education aspect. you can come to one of these businesses and purchase -- one of the licensed businesses, which there is only a few. it remains illegal to drive impaired, to take it out of state found -- to take it out of state, to consume it publicly, to sell it to anyone. >> no college kids or high schoolers can smoke lot in colorado. michael, thank you for joining us. we are going to take a quick break. >> we are. we will have more "street smart" with matt and i filling in for trish and adam. ♪
security agency contractor on vacation.y his vacation home is about a half-hour drive from the nsa's regional operations center, better known as the location where snowden lifted tens of thousands of highly classified documents. if the location were not enough to remind him of the spectacle old,e-year-old, -- 30-year- the recommendations certainly will. that report that together in the wake of snowden's disclosures recommendations from the mundane to large scale, like phone records from the government and back to the phone companies that collect the data. set to be announced in january, changes that are likely never to have been possible without edward snowden.
>> breaking news on my clogs -- crocs. reported a passive state -- five percent passive state. it looks like he has raised his stake to five percent. to sum it up, steve schwarzman saw an opportunity there. yesterday. today i went to the upper west side, bought a pair of camouflage crocs and now steve cohen reporting five percent passive state in crocs. >> what is the implication here?
>> as my father always said, genius minds run along the same track. >> i bought crocs along time ago. -- a long time ago. >> you were early to the party. it is all about timing on wall street, jules. >> speaking of timing -- >> nice segue. i like that. you want me -- ok. watching the ball drop. the ball is 3000 pounds. an year.signed by the man behind the design, waterford crystal's master sculptor. wow. first of all, congratulations. >> thank you very much. >> that must be an incredible feat you can be proud up until your kids and grandkids about. >> yes, well, it is not done by one person.
>> that is very humble love you. but we know you did it. you have one of the triangles in your hands. i have one of the triangles. it has been involved in the celebration for over 100 20 years. plus the international celebration. this is the first in the series gifts.different this is the gift of imagination. this is the design. on both sides of the crystal -- you get a really full, maximum refraction from the light that goes inside and from outside. >> is this one of the triangles exactly like the ones on the ball? >> this is exactly. >> weakened by them as individual consumers? >> no, you cannot buy these pieces. -- we can buy them as individual consumers? cannot buy these
pieces. >> can i have that one? >> no. museumll be donated to a and let down at ground zero. the proceeds will go to charity. with apartnered children's research hospital. one of their patients designed one of the panels, which was a rose. it made her feel better. it made her feel better even for just a short while. i took the design back to ireland's. is on the ball now? >> it was installed on the ball. >> that is the only one that is different. >> you have a snow globe that looks like it never stops spinning there. >> that is the miniature of the ball, right? >> that is the miniature. that qubes the snow kind of forming. kind ofkeeps the snow
forming. this is a replica of the ball again. a giftthese -- this is for imagination design. >> these are laser cut? >> no, they are hand cut. >> i am curious as a designer -- what is your goal when you are designing? >> everything is different. from the solids blocks of crystal. if you are making a bird or something, it is from the solid rock. it is similar to stone felting. but we do not use a hammer and chisel. -- it is similar to stone sculpting. >> it is very impressive. we should have had you on as pimm fox's mystery guest. we will have to book you. we will not sell -- tell pimm. much, ted curtis.
>> jewelry may be timeless. one other trend has stood the test of time. that is preppy clothing. the preppy look is here to stay and growing. here are some of today's preppy is brands and why the trend has so much staying power. >> hello. i am shep. >> and i am ian. >>, on in. >> this look has been around for decades. >> preppy and has the reputation of being very, very exclusive. >> we have a couple products that we are iconic we known for. one is the shep shirt. our signature prints on the thais, our women's tote bag. one of the things that makes -- our signature prints on the
ties, our women's tote bag. one of the things that makes our design so niche. >> this is the ranger book. it is more of a company lifestyle. you like to be outdoors. fish, walk the dogs. just feel that you are part of something more relaxing. >> hi, i am peter. >> and i am austin. >> welcome to our first ever boutique. come on in. >> this has been online since the very beginning. >> we primarily sell men's products. there is a lot of traditional style.
women's clothes is more trend driven, so it is hard to stay on top of. >> we never thought we would see ourselves going overseas. >> and one person getting in on the preppy trend, or one character, is james joss. the jacket that daniel craig war in "skyfall" is sold out everywhere. than 50ng list is more people long. are you on that list? >> i have one. i got one for lucky spanish lady for christmas this year. >> maybe she is watching right now. congratulations. >> yes. happy new year. >> i was congratulating her. >> yes. people did not get enough of this video in 2013, but will be miley cyrus -- but will miley next year?erking
we have the vice president of programming at music choice. we have to talk about what happened this year. we were chatting about miley cyrus. she did some insane things that none of us want to see again, but her music -- still huge hits. a huge song,l" is undeniable. 80's powergreat ballad. i get my hair thing going when i hear that song. i give her credit for the way she has reinvented herself. media jumping, tv ratings going. if you look at her last album, which was not so successful, she had to do something to move the needle in the other direction. >> and she licks a sledgehammer. thend her performance on
vma -- ama's. >> were they teddy bears? i don't know. >> you do not think of hannah montana anymore. a lot of people think of her a lot differently after that. justin bieber is kind of trying to do the same thing, it looks like he is having a tougher time. figure, justin is try to it out. he has announced he is going to retire. he is trying to draw interest in his persona. i think we will see a major reinvention of just then in 2004 in. he has hit that point where he has to send a message to his fancy has grown up and changed in a different way. >> how will he do that? >> i think the bad boy thing is not working. >> i think we call it puberty. bit old forittle puberty. >> is he? >> yes. what is he? 18?
21? i don't even know. latecomer. >> producers have become so important. pharrell was one of the big ones. nes" was one of those songs. is there a producer you will be watching out for? >> i think mike willis, who produced a lot of miley cyrus's songs will do well. will be one to watch. foras announced an album 2014. he has established himself as a vocalist. remember "a lucky -- "get lucky." i am very interested to see where he goes vocally. also his interpretation of "get incredibleanother
vocal performance. he is a guy who doesn't incredible job of creating pop melodies. >> he blurred the lines literally between properties are -- you see a lot of musicians become producers, but not a lot guys crossing over into performer. i wonder what else we will see as far as people crossing over into different acts in 2014. >> i was invited to an exclusive premiere for what beyoncé did with her visual album. i think one of the things she touched on was how she will be becoming a business person. >> she has a good mentor. >> obviously, developing your craft, your fan base, establishing a bigger business profile. i think you will see beyoncé move into artist development, probably artist management, her own label. >> is there any chance that beyoncé will get a little overexposed? she has the new album. she is at walmart. everywhere
you turn, there she is. >> she lives upstairs. >> she is upstairs? >> i think she has a pad upstairs. too. cohen, >> i think the onset has shown she can reinvent herself, but also reinvent the music came. at a think the idea of releasing all the content at one time was great for her fan base. i would watch out for her to work. -- her tour. >> cool. us, damonfor joining williams. we could talk about this all day long. although trish and adam, as well, pop culture all day long on the show. >> still coming up -- trying to figure out where to go for new year's eve was to mark better get on it. what about the applebee's artie? ont has matt miller's name
>> love them or hate them, there is no escaping the selfie. >> what is the problem with the selfie? it is the natural human instinct to cap yourself the way that you would like to be remembered for history. this is the way that artist used to survive. rockwellll -- norman painted a selfie of him painting a selfie. the camera in your pocket has taken a human instinct and turned it into unbearable
narcissism. we have to remember the role of the selfie industry. twitter makes you post a selfie when you sign up. if you do not have a selfie on facebook tom might it will remind you until you have selfied yourself on the page. these are not social clubs. they are companies. a need you you toie -- they need selfie so they can make money. my facebook profile picture is me walking away from the camera with a child on my soldiers. these are ways to imply that i am too cool for selfies. -- my facebook rockwell picture is me walking away from the camera with a child on my soldiers. get oute is no way to alive. silicon valley -- they cannot every day.fieing when i get finished with this
video, i will definitely put it on facebook. our narcissism is the currency. i do not think the rise of the selfie has anything to do with the declining utility. it is a business strategy. and it is working. >> and now it is time for a special selfie edition of weird wall street where the bazaar is business as usual. arre is business as usual. have you had your cell phone stolen? >> yes. >> you have? i bet you did not have what happened to this woman. every time the thief would take slp, she would rarity these shots on her tumblr blog. would you try to get him arrested? >> oh, why? he's role in old iphone. -- he stole an old iphone.
>> it is approaching 56 past the hour. that means bloomberg television is on the markets, with the final edition of 2013. let's look at where stocks ended the year here in the united states. the s&p 500 ended the day up .4%. up gal finishing the year about 29%. the dow up about 26%. the nasdaq the winner, 38% on the year, closing at a 13-year high. there you have the year to date figures and the percentage
increases i was referring to for each of the major averages. and also, beating bonds i the most -- by the most since they started keeping records. not of good year for gold. there you see the year to date movement in the yield. what is notable today is the 10- above fivewent percent and stay there. the two-year at four percent. that is one to watch as well. predict did analysts for the end of the year? the one that was the most right on, the chief u.s. equity strategist at citigroup. however he was still off by more than 200 points. other analysts were optimistic, but not as optimistic. the median forecast was 1550 five for the s&p 500, which was about to a point of 18%
above that figure. tina martin adams remained there throughout that year -- gina martin adams remained of their throughout the year and hit her forecast. the highest projection we got from the strategist that we surveyed is michael service over at lehman's. s. michael purve levkovich raised his target to 1975, which is more in line with the median. so, the consensus seems to be we will see continued gains, but they will be much smaller than we had previously. we heard from hilary kramer earlier on and "street smart," and she is anticipating a
correction early in the year. she is not alone. vich is also calling for a correction, saying that it has been quite sometime since we have had a pullback of any magnitude and the u.s. stock markets. other winners and losers on the year -- the best developed markets in terms of stocks -- markets.ese helped by stimulus from the bank of japan, the decline of the yen versus the dollar, a boom for the japanese market. some of the worst markets in the emerging market world, you saw a in particular, the south american markets, brazil, underperformers. brazil, a very commodity dependent economy. those are the highlights from this year. hope everyone has a wonderful new year and i will see you in 2014. for on the markets, i'm julie hyman. ♪
>> happy new year. jakarta and indonesia. welcome to a special edition of "lunch money. congress and action. what you should not look or were two in 2014. 2013 the best of aykroyd, buffett, and why you should not take on the selfie. in switzerland, the kind of security you get with a swiss bank account, not just tax-free money.