Last two years. There you go. And speaking of a historic first, will the newlyapproved volcker rule hurt the large banks, or will it propel them forward . Lets go to Nicole Petallides on the floor of the New York Stock Exchange to see how financials are reacting. We knew that the rule was coming. Banks expecting it, but still, the question now is now what for these big names. Reporter now what. Thats absolutely right. And were seeing dow component today Goldman Sachs, for example, hitting a new 52week high. We watched jpmorgan at one point today, also a leader on the Dow Jones Industrials, you can see goldman and jpmorgan continue to hold on to the gains, up to 170 and change. Citigroup,back of america pull bank of america pulling back, but bank of america, for example, said they prepared for the volcker rule, and thats exactly what this is about on wall street. Wall street doesnt like surprises. Wall street wants to know what to expect much like when you get the fed calls, when the federal Market Committee meets, right before that you see the uncertainty. Thats the wildcard. So at this point now they are well aware of the fact that the proprietary trading may be squeeze squeezed if the rule makes it illegal money to make speculative bets. So it basically is tougher restrictions on these big banks overall. Morgan stanley up 1. 5 right now, the banking index is just fractionally to the downside. The Dow Jones Industrial average just slightly lower, down about 30 points, so thats not even twotenths of 1 . So it shows you that while this has been a big rule and it was unanimously approved by the fdic and the Federal Reserve board, the sec approved it by a vote of 32, thats worth noting as well. But overall, its done, its what they expected to a certain extent, and thats why youre seeing these banks just hovering around that unchanged line and not really reacting too dramatically at this time. Cheryl still, the sector had a great year, 2012 a greet year for the Financial Sector, so no disappointments there. Nicole, thank you very much. Well see you in just a little bit. Another big story were following today that, of course, is general motors, the stock slight i have lower after the automaker announced mary berra will be the first female ceo of a a major auto company. Here to tell us what this means for the future of gm, jeff flock. I know you spoke with him about all of this, jeff, what was his reaction, and how is he feeling about the transition . Reporter hes been pushing mary for a long time. He really likes her. Shes a real change agent from within the company, somebody that has come up through the ranks at gm. She was running hr when he took over he gave her a whole new portfolio and ill tell you a little bit about her, first of all. Just some fun facts that maybe you havent heard about her yet. She is married, she has two sons a son and a daughter, theyre both in their teens, i think 15 and 16 if im not mistaken. As i said, 51. Her father was a pontiac tool and dye maker. She started herself as an electrical engineer at gm, so shes an engineer. Shes a car gal. In fact, i just listened to what dan akerson had to say about her to troops today. He called her a car gal. Shes also a stanford mba, so shes also a smart gal as well. Look at the rest of the Management Team of gm. Some of them are people that were in line for this job and didnt get it. But first of all, a guy who is highly respected in the new nonexecutive chairman of gm is a guy named, they call him tim, his name is theodore, hes the former chairman and ceo of cummins engine. He was named one of the top five ceos of the past decade along with the likes of steve jobs and jeff beltway sos. Dan aman is the new president of gm. This is a job that didnt exist before. He has been the chief Financial Officer for the company, former investment banker with Morgan Stanley, and mark royce who was also in line, he has now got mary barras new job which is to develop product that he loves. Whos on the occupants . Really only one on the outs . Thats only one person, close confidant of jeff ackersons. And i would add today the stock has not even taken a burp, cheryl. As you pointed out, down just a little bit. But this is in some ways earthshattering news, and wall street does not mind at all even though this is coming sooner than anyone thought because of dan akersons wifes illness. She has cancer, and hes going to devote his time to that. He was probably going to step down, he said, second half of this coming year. Now hes gone as of january 15th. Cheryl but certainly i know, jeff, you did speak with him, and the timing of this announcement not related to treasurys sale of their stake in general motors, because the timing was just kind of spot on. But just a coincidence . Reporter well, you know, i think he learned about his wifes cancer, and i think he did want to get past the sale. I mean, he really that really puts a bow on his whole term as ceo, so that kind of works out well. You could tell today, and next hour well have some tape of him at his employee meeting today, and youll see the gravity in his voice. You know, his wifes illness is a huge deal for him. Very Strong Family guy. And so well see that next hour. Cheryl all right. Well see you next hour for after the bell, david asman will be here with me. Jeff of flock be, thank you very much. Stocks taking a small dive today as the impending taper of the feds bondbuying Program Draws closer. Traders standing by at the New York Stock Exchange, the cme group and the nymex. Teddy weisberg standing by on the floor of the New York Stock Exchange. Teddy, what we seem to be seeing is a change in language for many of the analysts, investors saying basically the taper is a good thing. Are you in that camp that the taper, were ready for it, a good thing . You mean bad is good and good is bad. Well, you know, perhaps its a good thing because weve been talking about it for almost 18 months, and, you know, l until it happens, quite frankly, i wont believe the timing of it. But i think at this point perhaps its just been factored into the market. You know, its kind of like kicking a dead horse. And im not sure if its a good or a bad thing. I would simply say that the prospect of tapering or higher Interest Rates because the u. S. Economy is doing better not for some mechanical reason or political reason would be a good thing. I mean, short term it might hurt the market, but long term its good for companies and, therefore, good for stocks. A lot of talk about the volcker rule, were going to get to that later in the show, but the impact on the Financial Sector, are we past, in your opinion, worries about the Financial Sector and the big wangs, or is it hard to gauge the impact of the rule on people like Goldman Sachs and Morgan Stanley . I think its very hard to gauge it now, but i would simply say this, ive been doing this a long time, ive seen a lot of changes. We lived with glasssteigel, perhaps they shouldnt have taken it away, but they did. Its basically a way to put some handcuffs on the banks in terms of their risk exposure. But the fact is, the banks are smarter than you and i. Theyll figure it out, and they will make a lot of money. Cheryl companies will change how theyre banking and investing as well. Ira epstein at the cme, what are you watching today . Im interesting how the dollars breaking. Foreign currencies rallying, and the stock market staying basically stable. I think were seeing a prereaction already to the fomc meeting, and my guess is the markets comfortable and nothings going to come out other than talking about tapering, but not necessarily enacting it. We may even get a rotation even after the fomc to kick stocks back to the upside. Right now just rotations, but very mild. Dollar down, interesting. And gold and silver came alive today. Theyre getting a real nice pop. Cheryl nice to see you. Jeffrey grossman over at the nymex, i was looking at the oil contract earlier sitting above 98. The activity weve had in that contract over the last week or so has been really the jump that we have not seen for weeks. Does this continue . We going above 100 . Whats going on . Everybody wants to talk about 100. Im not there yet. I will say this, though, when we broke out last week, that was above the 95. 60 area, the market switched over to a market that has been able to be bought on dips on a continual basis for the last half a dozen sessions here. The market is certainly looking healthy. In fact, the only thing that tempers my judgment and wants to say that i dont know if were going to see 100 without any new information coming in, the gas and the heating oil relative to crude oil has shown a little weakness in the last few days. Those crack values, which had blown out, have really calmed down a bit and now have come in a bit. So, again, were going to have to wait for tonights numbers in the api and tomorrows eia numbers to at least give us an idea of overall direction. Cheryl i think the noreaster coming this weekend is going of to have a little bit of effect. Have you seen the forecast . Im sure you have. Thats going to be the clincher, im sure, for that contract. Guys, thank you very much. Good to see all of you for the floor show. Closing bell, just 50 minutes away right now, here we go on this tuesday. North america enjoying a boom in oil and gas production. So how should you, the investor, ride the wave . Coming up next, we have a fox business exclusive with the ceo whose company is rapidly growing player in the Domestic Energy business as well as, get this, the wireless industry. And the Federal Reserve and other regulators throw their weight behind the volcker rule, but how much impact will the new regulation really have on wall street . Will they hurt profitability . Stay with us, were going to cover that coming up. So i can reach ally bank 24 7, but there are no branches . 24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Yep. Got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. So i kn tilt was full. Youd be crazy not to. Is tt nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ engine revs ] [ male announcer ] the mercedesbenz winter event s back, with the perfe vehicle thats just right for you, no matter which list youre on [ santa ] ho, ho, ho, ho [ male announcer ] ge the allnew 2014 cla250 starting at just 29,900. And this pa is the inside of your body. See the special psyllium fiber in metamucil actually gels. And that gelling helps to lower some cholesterol. Metamucil. 3 amazing benefits in 1 super fiber. Cheryl the u. S. Economy is rebounding helped by explosive growth in the energy and wireless industries. Behind this growth is a massive grid of pipelines and wire lines across and that is the business of jose [inaudible] his companys stock has surged more than 260 . Yes, i said that, 260 over the past five years, and he is with me now in a fox business exclusive. Very interesting, these sectors that you operate in. Lets start with telecom. Theres been explosive growth in telecom, especially to rural areas. That has been a big thing that the president has pushed through. Are we there yet . Have we reached the furthest part of the rural areas, or do you think theres still more to grow . I think weve made great strides, but we still have a long way to go. As a company, we specialize in wireless deployment, so we build a lot of the networks for the wireless carriers. Its a very exciting field because if youve seen the changes that have happened with handheld technologies and what you can do with your devices, were kind of the company that builds the infrastructure and the backbone to make that work. Obviously, when you think about rural markets, its a lot easier to get rural markets up and running via wireless, so i think weve made great inroads. Cheryl okay. So the rural areas till strong for you, what about the Energy Sector . Because there has been a bit of a, i guess, a change of direction whether its wind, solar, nat gas, coal production, what do you see happening in that sector, and is that the most important sector for you right now with energy . We build wind farms, solar farms, our biggest Business Today is we build oil and Gas Pipelines, but were seeing an energy boom in america. Were seeing a country that is using its own Natural Resources, and i think were finally at a place where our own Natural Resources can fuel our growth in our future. Our biggest business is we build oil and Gas Pipelines from those shales, from those production plays to homes and businesses. So we ultimately get that cheryl but are you concerned about, for example,keystone pipeline, are you concerned about the Regulatory Environment . Theres a lot of concerns about Fracking Technology in the company. Does that worry you as the ceo of a company that that is your Main Business right now . I think its a very active market, and keystone specifically is very important i think not just for the u. S. , but our relationships with canada, its very important to the canadian market. We think its an important project, a project the president should approve. But, obviously, theres environmental risks and concerns, and i think they need to be taken seriously and addressed. Cheryl the president s also calling for more domestic, more must money to be put into ports, railways, things like that. How much work is out there for you if youre a player in this space right now . Well, its a huge opportunity and one that if you think about states and municipalities, theyve really struggled through the down turn, they dont have a lot of money to invest in local infrastructure projects. I think we need to double down on that, thats where the growth comes from. Thats where we get great middle class jobs that we can build on. I think Infrastructure Development is incredibly important. Cheryl jose, you were one of the starts of Undercover Boss and honored, im sure, to be featured on that show. What did you learn from Something Like that. Did it surprise you as a ceo, your experience on the show and what you found with the employees that did not know you were their boss . You know, the big takeaway i had was every individual i worked with, their most important issue was understanding how what they did every day affected the success of the company. And it was different than mm expectation, but ultimately how as a company do we communicate the selfworth of every individual . What do they do, how does it matter each and every day . And i think communicating that as a business is incredibly important to keep up morale at the company. Cheryl again, im sure it was a fascinating journey. Youre in new york, youve been speaking at the conference here in new york. Big theme coming out of the conference . You know, i think people are excited about 2014 especially as it relates to infrastructure. I think the markets really turning, and were excited about the next few years. Cheryl the market turning for Energy Production hopefully for you. Yes. [laughter] cheryl astounding Stock Performance and excited to see where the company goes next. Jose, thank you very much for being here. Thank you for having me. Cheryl closing bell going to ring, 41 minutes to go. Goldman sachs in the crosshairs, should investors be concerned about the impact of the volcker rule . Charlie gasparinos got exclusive new details on that exact story in just a moment. And you might be wondering how all this wintry weather, so much fun, right . Has been disrupting travel across the country. Another belt of snow hitting the mid Atlantic Region and the northeast today. As we go to break, the latest numbers on Flight Cancellations so far for this week. Get ready, folks, look at that. Every day were working to be an Even Better Company and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we in fact, weve invested than anyover 55 billion hereorld. In the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. Cheryl the power mover of the hour, starbucks. Take a look at the stock right now, its actually trending to the downside, its down as you can see on your screen almost 3 . This is one of the biggest s p losers today suffering its steepest oneday loss in more than a year. Heres whats going on. Itt research putting out a report today, analyst steve west saying that after two very strong quarters, their data suggests the chains momentum may have slowed this quarter. Remember, starbucks, you know, just recently said they might consider franchising out in europe, so the company is looking for new opportunities. They are moving to get into the tea market, but the Analyst Report today saying you need to watch out for this stock, there might be some pressure there. Well, now that the final details of the volcker rule have emerged and all five be federal regulators have voted to implett it, which firms employees are complaining about smaller bonuses . Charlie gasparino is here with the exclusive details. I bet youve gotten a lot of emails. Well, you know, what were hearing from and we want to be careful about because we dont want to blame this purely on regulations, although the ban on proprietary trading, the restrictions on even, you know, making markets and trading off of customer orders, the one firm that gets hit the hardest seems to be Goldman Sachs, the premier trading firm, and what were hearing anecdotally at least is that goldman is getting, is cutting back on its bonuses. It is not paying the people in the middle. Now, heres what were also hearing, that a lot of people are blaming that on some sort of a reengineering inside goldman. Lloyd blankfein would say theres no reengineering in goldman, we are doing everything the same way, but i can tell you particularly the you listen to a very good analyst over at sanford bernstein, brad will say that there is a massive undertaking at Goldman Sachs to sort of adapt more than sort of, adapt their Business Model to the new regulations. And that means smaller bonuses across the board. The people in the middle generally that used to get bonuses that were decent get i screwed the most because you want to pay your producer. So thats whats going on inside Goldman Sachs right now. You know, covering goldman is like reporting on china preopening up to the west back in the 60s and the 70s. Used to be china watchers cheryl theyre secretive. They are. Even as a public company, its a very secretive firm. They dont really level with analysts very well. You know, if Lloyd Blankfeins going to do interview, hell do puff piece, softball interviews. They dont liking being asked te tough questions. But talking to people anecdotally, there is something going on here where the firm is adapting to these rules, and the impact right now is being felt in the middle of the firm where people are complaining about not being paid. And if they could, they will be leaving the firm. You know, this may last a couple weeks, or it may last excuse me, a couple years, or it may last for, you know, ten years. I cant tell you. I do know this, theres a lot of talk about whether goldman can they need some of the restrictions of doddfrank, the volcker rule by giving up its status as a bank holding company. Remember, its considered a bank. Cheryl under the fdic, yeah, financial crisis. I still think that is a very difficult thing to do. I think, you know, even if it was no longer a bank holding company, goldman has a small bank, and what the federal government did postfinancial crisis, put goldman in with banks so they have access i really think the Capital Requirements that would allow them to do prop trading would be so onerous that it wouldnt make a difference. Cheryl it doesnt make sense for them to actually give up the bank title. I think their cost of capital would go up dramatically, not only would they lose access to the bank to the fed window that investors who lend them money, their creditors would demand more for capital because they wouldnt have that backstop, and not only that, i think the Capital Requirements are too onerous. Thats where we are right now. Its an interesting time to see Goldman Sachs. This is clearly listen, the stock is up today, okay . Maybe investors on first glance like this. They think goldmans going to figure out ways around it. I would say this is a stock you have to be careful about. Cheryl smartest guys in the room. Allegedly. [laughter] cheryl charlie, thank you very much. Closing bell going to ring, 33 minutes to go right now. As wall street braces for the impact of whats happening with the volcker rule, were going to get some reaction from our panel. Theyre going to tell us what they think the likely scenarios are for the entire banking industry. Also, too big to fail. Our panel coming up. And forget about snow angels, victorias secret angels going to be strutting their stuff for a huge tv audience tonight. Charlie, going to watch . Victorias secret . Of course. Cheryl were going to find out what their show could mean for one of the Biggest Media Companies and, of course, shareholders of the company. But just look at the video. She loves a lot of the same this you do. Its what you love about her. But your erectile dysfunction that could be a question of blood flow. 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Unitedhealthcare. Cheryl twitter is flying to new highs after the company unveiled new ways to monetize the business. Good news. The social media stocks have fallen. Lets go to Nicole Petallides and the floor of the New York Stock Exchange for more. Reporter we are standing at the post where twitter trades. This is where the big ipo was in early november. Let me show you right now. Right now at 5231, 5258 was the height of the day. Hit an alltime high today, which is a big deal because on november 7th this was a 26 ipo. It actually moved up about 50 then sold off below 40. Everyone started to get worried. Taking a look as of the other social media stocks such as facebook and linkedin, most of those seem to have seen some up arrows including groupon. There have been new rules where a new feature, tailored audiences designed to help advertisers find messages for potential customers on the twitter network. And that ultimately is good news for twitter and as a result investors. Youre seeing it move to new highs. Cheryl thank you very much. Well, after three years in the making, three years, regulators today approved the final draft of the volker rule. It is part of the doddfrank perform a net preventing another financial crisis. Naturally there are two very different points of view. Reformers say the rule will make the Financial System safer and protect bank deposits. Critics say that proprietary trading did not cause a financial crisis and believe new rules could actually hurt the broader economy. So right here lets bring in our panel to weigh in on this school of business professor and economics to the chair and heads director of financial research. First to you. The final version came in, but you are pretty negative on it. Thats right. It is and not very good solution to a non problem. Proprietary trading did not cause the financial crisis of 2008. It was fundamentally bad investments in mortgagerelated securities with not enough capital by very large Financial Institutions that were also short funded so hat the short term liability holders when they got nervous could run. Cheryl i have heard this five times today carried less still could not have saved it. Absolutely not. Not a chance. Cheryl the rule bans prop trading. There are two definitions. Marketmaking buying, selling securities to fill client needs to keep markets liquid and entering trades to reduce the risk of lawsuits and other assets held by the bank. These are not very concise definitions. Give me your take. Will banks find loopholes in this . Lawyers are pretty smart. They are pretty smart. There has been a lot of leeway. Know about this since 2010 demand the implementation is until mid 2015. The banks are slowly working on this. It is a little problematic, plan inventory. So the extent that the volker rule actually makes client trading more restrictive it disallows them from providing capital to these client trades. If you restrict client trading you are restricting plan flow and potentially making markets cheryl define the client, a u. S. Company, im thinking to myself, im going to a japanese, european bank. Is that kind of your prediction . And regulatory arbitrage to the extent that you restrict u. S. Banks from client trading. There could be flow of Trading Volume to asian and european banks as a byproduct of what could happen. Cheryl that has been the concern all along. It is going to actually limit access to credit. The cost will go higher and it will hurt the overall liquidity in the banking system. Is that still a fair concern . The address is not getting to grow in the streets of america, but at the same time this is not a good rule. It makes these activities either more expensive or just impossible. And it drives them by their offshore coming into the shadows somewhere, you know, it is just not a sensible way to proceed. Regulators did not have a lot of choice because this is what the legislation in 2010 said they needed to do, but it took them three years, a lot of uncertainty. Its very difficult to figure out what is really hedging, what is really market making. Cheryl youre saying that the jury is out. Timeline, do you think. Not that just on with Charlie Gasparino saying goldman, we dont really know what theyre doing behind closed doors. They will figure it out to make modifications. It is not a good thing for them. It is going to make their operations more costly, but it is not going to drive them to the wall. Cheryl obviously with the big banks you have concerns that there will be issues for the bigger banks, but there are some winners in maybe. I think the stay straight venues to my system and nasdaq, cme, as you make client trading more restrictive they will push it on to the technology venues, i. E. The put through exchange menus. Nasdaq is a big bond trading system. If you cant trade derivatives and bonds in the overthecounter market it will push them on to the exchanges themselves. You will see market share gains, and largely the New York Stock Exchange menu of gains in share, and the nasdaq will do well. Cheryl a very interesting take. A broader question. You know, overall the you think that the government at the end of the day encouraged all the rest that we had back in 2008, the same government that is now writing this regulation and approving this . I think the story of encouragement, yes, we have general policy of encouraging housing and housing finance, for sure, but i think the specifics of the crisis of 2008 really took government regulators by surprise. I think in late 2007 they suddenly realized a mile, my gosh, there are very large, trillion dollar Asset Finance substitutions. They are very thinly capitalized and very heavily invested. In they are short funded, so theyre easy to run on. This was, i think, a surprise. Cheryl marketmaking marketmaking is a legitimate business. I understand that prop trading has become this evil word in new york especially, but at the end of the day does a black rock benefit from this . Over time if they find a way to internalize plant treading they could because essentially some of the client treading been used by goldman and Morgan Stanley become more restrictive. I cannot wait added to the market. Maybe i will try and transact directly. So it could be a byproduct of more restrictive trading, less capital. The big institutions of the world start trading amongst themselves. Cheryl and we will know the economic effect of this the middle of next year. Thank you very much. Thank you. Great to have you. Wonderful discussion. Appreciate your being here. It may be cold outside, but you could have a chance to warm up tonight. The victorious secret fashion show will air tonight on cbs. 10 00 p. M. Eastern time. It will feature your favorite victorias secret angels including lilly aldridge, country on a limb as well as musical acts fallout boy into a sweat. We are also going to get a look at a 10 million diamond encrusted brought which will be on display, and a pair of 3d printed angel wings. Cvs is upping star ratings bump, expecting as many as 15 million viewers. Last year over 10 Million People tune in for the annual show, and it was one of the top 19 television for women to be between 18 and 34. Michele has aired each year since 2001 and cost upwards of 12 million to produce. We will see. Closing bell will ring. Nineteen minutes. Stocks slipping a bit. Ninetyone during how to protect your portfolio from any market turbulence. Coming up next we will talk to a money manager who says you should be thinking of the box. We will explore what that means. Remember the scandal over the to sheer yoga pants at luminous . Neither is a huge shakeup. We will tell you who is n and who is out in just a moment. Tn cheryl well, just months after the scandal over to syria go pence, the company is announcing a huge shakeups. Jo ling kent has our report. This has been somewhat of a saga. What is the latest . Reporter a downward slide. With the old and then with the new. Today after a tough year for the of the apparel maker, stepping down as chairman of the board effective june 2014. He will continue to hold a seat on the board and will be replaced by michael casey. This is seen as an attempt to move on to a new after the misplaced comments responding to complaints about the famous dance. Tell the reporter that some womens bodies just dont work. They dont work for womens bodies. Also announcing a new ceo. He replaces kristine day in january. She announced in june she would depart when a replacement was found. President of shoe company and former ceo of burton snowboards, regarded by analysts to be a promising figure to turn around the broken image. This is badly needed despite the fact that wilson attempted to apologize in a short video after public outcry after what was described as basically fat shaming and if investors are hoping noon leaders would take some of the weight off of the stock, they were right, but only momentarily. Now the stock is down almost 2 . Cheryl when i say sauger, it is because initially there were reports of manufacturing issues overseas. Then you have these comments from him. Also you had a second report, recently in the last three or four weeks about it being a problem. It seems to me it is the manufacturing, maybe not and i think that with new leaders coming in they will have to reassess and look at exactly what their strategy is, sourcing these materials, especially given that many women and men pay so much money just to get there hands on his brand. Cheryl biggest fine ever had with the tv producer. I sit with it. Im on the fence. Cheryl theyre great. Jo ling kent up in the newsroom. Thank you very much. Fourteen years in tv, that was the big five with the producer. With all of the taper talk in fiscal uncertainty, where should you be investing your money . Our next guest has over 11 billion in assets under advisement and says it may not be where you think. We are talking about the emerging markets and other overlooked areas of the economy the baby missing out on. Lets bring in conversion of advisers ceo. Want to start out with the emerging markets because year 2012, 2011, there was some pressure. Seems like their is a bullish tone for these investments, more so than u. S. Based. Sure. We do a lot of work on valuation and momentum. Evaluation is certainly in place because they are very, very cheap. Emerging markets usually traded 15 times earnings. And then the momentum peas, they just started the up trend. When you combine those to our shows a you end up with an average return of or 15 . We have cheap assets that are just turning the up trend. Cheryl lets get more pacific. Where would an undervalued emergingmarket b . Probably the most of the value right now is brazil. China and india are very attractive, but brazil is the most undervalued. It is the one that people are staying away from the most. That is really where the opportunity is. A lot of chatter about Subsaharan Africa as well. Those are some of the frontier markets. Those have a lot of room to move. We prefer is stay with kind of a bigger emerging markets, india, china, brazil. Cheryl and youre right. It is more of a risky opportunity. You are looking for a market pullback. Is that taper baster do you think that maybe a runup we have had, which has been incredible, double digits for 2013, maybe this story is kind of falling short . Well, i think the markets clearly are long overdue for a pullback. Although i dont think we will see it in the next month or so. You still have the fed pumping 85 billion a month in the market. December is one of the strongest months in the market during the year. When the market is up more than 10 to the end of october, december finishes posit a super some of the time. January is also strong. Of the coup will see it in the next couple of months, but the market is getting a little overextended which is why i suggest your viewers look outside t, emerging markets, international stocks, commodities because those areas that have not really moved as much as the u. S. Market. Cheryl lets get specific because utley of our viewers are watching their looking for ideas. The vanguard etf, you are recommending etf, a nice way to spread the risk in target a group called other energy or in the emerging market. What is your favorite . If i had to pick one up with stay with the emerging markets. E. W. Know is a nice etf to participate, but there are others that focus on baskets of emergingmarket stocks which is where i would encourage your viewers to look. Cheryl i want to hear about your best and worst calls for 2013. Where did your score and ready to lose . This is the moment of truth. Sure. The best pick was probably u. S. Smallcap stocks. There were up 36 plus . The worst fate would have been broad based commodities which were probably down about seven or 8 . I would encourage your viewers not to chase returns and go after those two Asset Classes are not likely to be the best and worst performers. It might be the opposite. Commodities of the best in small cap is not. Cheryl i was just going to ask, what do you think about the small caps base for 2014 . Because large camps has had a heck of a run for this year. Expecting that there could be some opportunity. I think small caps still have room to run. We do a lot of work on a valuation momentum they have bus started the downtrend. If theyre getting closer to the end of the run. Not that they could not run for much longer, but smallcap is probably the most expensive part of the market right now. Cheryl really quick to want to ask you, Energy Sector. 2014. We really like the Natural Resource base. Has done well faugh. There is still a lot of room left to move. The Natural Resource base is definitely an area you want to look at it. Cheryl some great ideas for our viewers. I kind of hope youre right that emerging markets take off next year. It would be nice to see those returns. Fingers crossed. Convergent Wealth Advisers ceo. Id. Closing bell in six minutes. That means six minutes to david asman. Coming up in the next hour, david will talk to children of the cftc. Always so animated and great to talk about regulatory issues. Guess what, you will be talking about the volker rule. All be right back. Stay with fox business. [ male announcer ] what if a Small Company becameig business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future withhe future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Cheryl okay were just now two minutes away from the closing bell. Want to take a look at some sectors moving today. In the s p 500 the sectors actually moving to the upside, materials, Consumer Discretionary doing well. That is it. If you look at consumer staples, utility that is group is down as well as telecom. Kind of a sector day. Were ending the day into negative but obviously we had such a nice day last friday. Yesterday we actually eked out, david asman, eked out a little bit of a gain. It has been back and forth. The market is very solid today. Not big moves. David it is surprising and shows you the strength of this bull market that even financials which you would be thought would be crushed today with what is happening with the volcker rule and all the extra expenses that will impose, nevertheless financials are doing well. Lets go to Nicole Petallides on the floor of the New York Stock Exchange. The vix is up and up over 14 or at least it was, lets see, still up over 14 but there is no sense of panic here, is there . No and you know what is interesting about the vix . I sense traders are anticipating that fed will cut back bond buying. Whether it is by 10 billion or 20. But the volcker rule today didnt stop those financials. David it did not. Goldman sachs at new highs. Jpmorgan holding on to gains, right. Cheryl were boosting a lot of Energy Stocks. We saw oil move in higher and took the Energy Stocks up along with it. Names Like Northern oil and gas to name a few. David gold way up too. Internet stocks, facebook, netflix, yelp. Theyre all up, why . Theyre all looking great and twitter hit a new high. The whole group did well. Twitter with a new tool that allows for precise ad targeting. [closing bell ringing] david theyre cheering on wall street regardless. It is in middle of some bull market. Charlie rose and some other folks pushing the button. Cheryl nasdaq, david. Technology chairman ceo will be joining us. David he is. So is the ceo of toll brothers. Well hear what is the latest from the stock market. What im looking forward to, he is from the cftc he will talk specifically, been quite critical of the way the volcker rule has been rolled out but voted for it as member of the cftc as one of the commissioners. Cheryl always great to talk to bart. We have a lot of great guests coming up in the next hour. But we want to bring you the front page headlines. General motors promoted mary barra as first woman ceo of the automaker. Dan akerson is leaving to take care of unfortunately his sick wife. David regulators