tv Bulls Bears FOX Business January 3, 2016 6:00am-6:31am EST
benefits. >> happy new year everyone. >> see you tomorrow. >> in the red, the dow suffering the worst financial loss since 2008 and the economy not doing all that much in 2015. is that because terrorists are doing a lot? hi, everybody. i'm in for brenda butner. this is bulls and bears. happy new year everybody. bulls and bears this week. welcome to everybody. are terror fears taking the toll on the market? on the economy? >> there is no doubt in my mind that terror is putting a discount in the economy and the market. when you see paris and the
threats every day but for me, look at the markets. some of the strongest stocks are defense stocks and gun stocks. some of the weakest stocks are retail and travel stocks. >> we do see evidence americans are hunkering down. it's running near a 3 year high. >> that's more economics i think than terrorist fears. i think more to gary's point it's a shifting of behavior. it changes how people spend their money. i don't think there's enough terror attacks globally even to screw up the entire economy. it's more like travel but i don't think the us. and whole economy, you're not going to see it in the gdp, shifting, doing less things in public. but they're not going to not spend money and cause a recession yet. it's just not that big of a
threat, frankly. >> but gary, you do see a weaker economy. you had the economic growth from the second to the 3rd quarter even before the terror attacks almost cut in half and how fast this economy was growing. don't tell me that the terror over there and now here at home does not impact how we behave. >> i would never not tell you that. because first of all, gary made great points but in his defense i think he kind of sums it up when he said, terrorism is putting the discount on the economy. is it effecting it to your point? absolutely. and i think he makes the same point. is it really? is it more than a 1 or 2% hurt on the economy? i don't think so. i hate to do a sidebar here but i think the real terrorists, quote, unquote, out there is our government. that's hurting us as much as the terrorists will.
with the encroaching entitlements, increasing government regulation, increasing taxes, that's a one-two punch and people go out and i go oh my gosh i have the russian plane bombing and the attacks in paris. i don't think it's a good scenario for any kind of growth in 2016. >> but if you have consumers retreat because of concerns about terror because they're worried about their lives and their money, that can actually cause a recession. >> well, i think we are certainly far from a recession. it's not just because it is the first day of the new year. i'm feeling a lot more optimistic. look at the year in totality. from an economic standpoint. the longest streak of private sector job growth in history. we've got unemployment down to 5%. wages are now growing at the fastest rate since the start of the recession. there are some good things here and at the end of the year, the government, gary, both republicans and democrats are
bipartisan deals to actually stop the government from shutting down. that's not a bad thing: i'm feeling optimistic. >> but john, you do have a market, a dow and s&p 500 that could not hang on to gains as we were rounding out 2015. don't tell me that didn't have some impact. that the terror attacks didn't have at least some impact on how investors were feeling and acting. >> yeah. i think it had some but imagine the audacity. the only thing you can say is they didn't shutdown. really? so they showed up to work and they should be applauded for that. no, they should be fired. send these bums home. there are good things in the economy but under president obama for every job that's been created two people have slid into food stamp usage. so the middle class has disappeared. gdp growth is over 3% and under president obama the highest is 2.5. we're seeing this and it's going downward because we have such a
vacuum of leadership in d.c. and we've had that for a very long time so without anything done with immigration, with taxes. >> what if the country and the government doesn't step up and do more about terror? then what? then what is your economic reaction? then what is your market reaction? >> well, i can tell you that after san bernardino if we have another one or another one after that, god forbid, it's going to even effect people more. i have to tell you when i have a national radio show, i speak to people. they are scared and they are afraid and while disneyworld this week was packed and you couldn't get in after 12:00 i must tell you they're checking people out. they have the radars in there. a lot more police out there. people see that and it effects their psyche so we get hit again if there are more threats.
it will effect an economy and by the way, if we're saying we have a good economy after having 0% interest rates and negative interest rates as well as printing trillions of dollars around the globe and this is all we get, it's not that good. >> but is it the point that disneyworld is packed to the brim and they're still there. so we're resilient and that's how we should enter this year. >> it's also because, you know, it's so so but it's not compared to other countries. we're doing much better relative to them and you can say the same thing about terrorism. they have worst attacks in other countries. everyone would probably be safer in new york than in paris right now even though they're both pretty safe. that relative advantage can keep your economy on top. it's working with our stock market, with our bond market. this is right now the best place even though just looking at itself it's lousy. we had attacks and housing but overall, it's better. >> but gary -- go ahead. >> i can promise you if we really go after the bad guys and
really start taking them out, we will see a lot more smiles on people's faces and a lot more money coming out of their wallets and we'll really get the economy going and markets will start reflecting it. as i said from the outset the worst stocks in the market are the retail stocks. that's where people spend their money. there's a reason for that. >> well, look, i think gary k is right. this is an administration that has let, quite frankly, terrorism get out of control. it let the government get out of control. at best, i think obama can be classified as a care taker president. he discounted russia. he called isis the jv team. look where we are now compared to where we are under george bush. we are -- i think everyone feels a lot less safer and to your point -- excuse me, does that impact the economy? absolutely. when people don't feel safe, they don't want to spend, they don't want to go out.
they certainly don't want to travel to europe in the middle east. all of that is going to drag down the economy. he paints this rosey picture. oh my gosh. we're just so wonderful. quite frankly, i don't see it and i don't think that most of america sees it. donald trump is leading in the polls. >> ask any american if they want to go back to a george w. bush economy or obama economy? republican or democrat. >> it's better than half of america saying they would like to go back to that economy. >> wishful thinking about a george w. bush economy in 2007. come on. >> 63%. we have a labor force participation rate. that's the lowest it's been in about 50 years. >> and crazy monetary policy and wages that are barely growing. john, final word to you. >> look, the point on this is george bush was bad. they never tell you president obama is good. they never come out and say this is great. we haven't had leadership in washington d.c. for over 20 years and we -- there is a peace dividend. but we're not leading. we're letting the world happen.
that's not what we need to do to take care of our own interests. >> thank you john and thank you all. caputo on business starts 20 minutes from now. what have you got? >> believe it or not the state department is saying it helped make it happen last year. how about sending all the refugees back this year? and we haven't seen the market do this in, well, fdr was in the white house and it could very well decide which party wins the white house this go around. we'll see you soon. >> thank you, neil. we can't wait. but up here first, letting the government snoop on what you're oing online without a warrant
months. now back to bulls and bears. >> sacrificing freedom to fight terror. it is okay for the government to analyze their internet activity without a warrant if it means catching terrorists. is this the new normal we live in and the right thing to do? >> it is and it's the society we live in now. back years ago when people went to shopping malls and went downtown to party and everything there was security cameras all over the place. no one ever questioned whether you needed a warrant to record everyone's activities. now the new mall is the internet. that's where everyone hangs. that's where cyber security is obviously the biggest threat. i say i'm all for it. >> john if a majority of americans are for this, why is
it going the other direction in terms of what the government and nsa is allowed to do in terms of collecting data in this country? >> well, the opposing view is a view that can get a lot of people killed. anonymous had a couple of different isis attacks by going online and i think americans want to say if you want to give up some of our internet security and the fact that we are at war here, that's a big difference. this isn't just snooping on people that you're concerned about because isis has gone to a more al qaeda-type model and you need this stuff. >> look. conceptually i can get on board with anonymous screening of data as long as the government doesn't do improper things. why stop at terrorism. if you're going to go through all the internet traffic think of all the other lives you could save. why not screen for child pornography. >> they do, actually. facebook and all the social
media sites. >> you can stake out every bar and who is texting somebody. there's a lot of crime and death. >> cop dos that. they hang out at pars to keep people drunk from getting behind the wheel. >> i don't think our level of doom is so high we have to wholesale our privacy. i don't think the government can do it right without our personal data being exposed. so you actually do it, to it anonymously maybe. >> that's the argument of the tech companies that don't want to open their devices and systems and make them excessable by law enforcement agencies even when they have court orders and warrants. >> do you know who does it right? it's corporations. i'm fine. you can come and look in my closets. you can look under my bed. if it's going to stop a terrorist attack, our founding fathers did not have any sort of clue about the internet and the threats that an isis would put forth. i am perfectly okay with the
loss of privacy. and this is the new normal and i think it's okay. >> and i want to point this out, we are handing over our private lives to all of these companies and they're using them for financial benefit and then when law enforcement wants to get into their system then they fight back. >> well, look over the last few years government has conditioned the masses to believe that we need them to be in every nook and cranny and even to make sure that there's no terrorists. i can't argue the point. but we anl knonly know what the us to do. i can only imagine how much snooping is going on and how much they do know and what they're saying. if they're saying it's going to fight terrorism and help things out, terrific. the problem is we never know how far it's going to be. >> but like i said we're going in the other direction. do you think that changes with
what you're hearing from america in terms of they're comfortable with this? >> san bernardino and you're going to see it change very quickly. >> final word there. >> thanks to all of you. cashing in is just over an hour from now. what have you got coming up? >> a new push for a new tax to take on isis. should americans have to fork on more money to win the war? plus even some lawmakers supported it. hands up don't shoot one of the biggest of 2015, justified or not, we debate, you decide. cashin in will see you at 11:30. >> how these raging waters could impact you no matter where you live. we'll explain.
to discover the best shows friends together and movies with xfinity's winter watchlist. later on, we'll conspire ♪ ♪ as we dream by the fire ♪ a beautiful sight, we're happy tonight ♪ ♪ watching in a winter watchlist land, ♪ ♪ watching in a winter watchlist land! ♪ xfinity's winter watchlist. watch now with xfinity on demand- your home for the best entertainment this holiday season. a billion dollars in damage from the deadly tornadoes in texas. now as flooding in the midwest hits john says the impact will be felt nationwide. explain. >> it's a terrible tragedy that we all hated to see but when you talk about the oil rigs that had
to shutdown you'll feel that nationwide but when you talk about the people in tornado alley in a floodplain, homes and businesses should have mandated codes but when you talk about a random act of nature or god the government has to step in. >> the facts say that one, this is a terrible tragedy but we've had many terrible tragedies. i defy anyone to name any natural disaster that we haven't bounced back from and bounced back stronger. whether it was the chicago fire. san francisco earthquakes. hurricane camille in the late 60s. sandy a few years ago. we always come back. it's harmful. it hurts particularly for those that live there but the country will come back. >> we come back because the government stepped in and provide resources and insurance companies have stepped in as they should. i totally agree with you from
the res that standpoint but this is an important role for governments to play. >> in terms of the damage, the last el nino there was about $45 billion in damage just done during that period. >> you mention insurance companies, they're raising rates because this is on the increase and you have to raise your premiums. this is going up year after year, more or less, for whatever reason we have to start paying for it. >> final word to you. >> we'll come back but this is the worst time for it. every indicator i follow in the economy is heading south. so this will certainly not help. >> thanks to you. thank you for joining us. speaking of the new year, do you ever wonder how good these guys are at picking stocks? we have their best and worst calls of 2015 including the name that could have doubled your money. tucson.
. >> the best and worst calls of 2015 and how you can profit from them. saving the best for the last. starting with the best of the worst. you're up first. you said buy up overstock. since may it's down 43%. do you want to return this pick? >> no, because it did not help this company and neither did the bitcoin initiative.
you're not going to have low down side anymore on this one. >> on to number two, you said tweet profits for twitter. well, #fail. it's down 52% since february. does it still have a chance to retweet profits? >> it does. we use twitter every single day. still trying to scratch my head as to how they're going to make a lot of money but i think it's a good one for the long haul. >> now for the worst call in 2015. capturing that adventure may have been epic but gopro as a stock was an epic fail. it's down 73% since you said to buy it last january. buy, sell, or hold here. >> this thing has been an absolute disaster. since the conference call they had right after i made this prediction, that's when you should have sold it. this thing has been terrible. if you own it, i would hold on to it here and it's probably an acquisition target for apple. >> now on to the best calls and john you're going to kick things off here. back in february you said google for profit and you were right.
since then google is up 38%. are you still searching for more gains? >> yeah, i love google. i don't know if i'd be a buyer here. you might wait for a dip. but what they're doing is phenomenal. especially when they get in the car business. >> on to number two. you said amazon was going to deliver and did it ever. since then, up 60%. still a prime investment? >> no, because the problem is the super tech stocks are too expensive for 2016. you have to leave. >> now for the number one call in 2015. last january you said play it safe in 2015. well, if our viewers listened to you they more than doubled their money going into 2016. do you cash out or buy more? >> well, i would hold it. we're in an increasing age of terrorism. stocks like smith and wesson are good to have. >> quickly guys, your prediction. >> i don't like the market for 2016. buy dog which shorts the dow up
15%. >> under armour up 30%. i own it. kevin plank is one of the best ceos in america. >> 15% in 2016. >> happy new year to everybody. neil is now. >> hi, everyone, glad to have you. i guess i could say i already lost those 30 pounds or so. i now you're thinking. 30, enough with you. because the state department is bragging it's already bringing peace and security to syria. labeling it early on as a 2015 win. also here this week we have ben stein, charlie is still hung over. so when he sobers up we'll have him back and welcome him back happily in a differ studio. so, peace and security in syria, done. >> let's