Lori stocks are up again five weeks in a w what a week it was one of the biggest Money Managers stephen suffers a spectacular fall his hedge fund hit with criminal Insider Trading charges am pleading not guilty today. T will the case hu Investor Confidence . It is cheating the only way to make big bucks . Lets bring in the man that millionaires invest their money with. So good to see you, ed. I thank you for having me lori what is your take on the message sento sec capital . What about the percentage returns outpacing the broad market averages to push the rules a little bit or a lot . You said the word allegedl because nothing has been proven there are allegations out there i guarantee there will be a vigorous defense comingn there is a lot the indictment and people assume it is correct but absolutely not. There are great Hedge Fund Managers and i have been in the business 27 yea and it is not easy to get great returns because it is in but if you just compound your money then history ss he will earn tenders will inin the stock market over a period of time. Lori but the tally on case and he is behind cas right now behin barsight now but to his case innocent until Proven Guilty but overall has the same performance lately. You bring up a great point because it is definitely a tarnishing going on of the hedge front hedge fund energy. A lot of people turn to hedge funds for their portfolio and that s p 500 has outpaced most managers even though there are unique styles they have outpaced that but we never evaluate a portfolio over a threeyear period normally fiver tenures it anybody else there that has pulled money away from the hedge fund rethink that because you will need to have alternatives. Lori what sort of allocations . Howuch should be comprised . Hedge funds, private equity . Will make it simple there was a study done what is the best mix to have . Of the publicly traded investments with the best return was the least amount of risk. 87 went into henchmans if you ask for the best use or homuch meye typically put 20 or 25 percent of our money in those portfolios with investment with the non correlation and did you will find the hedge Fund Managed Futures than so 25 percent in alternatives. If they are underperforming right now, can you pinpoint the time when that will reverse . It has been a long expansion the point looking at that growth cycle so if you are investing in this cyclical stockaugh a couple yearsf f the other alternative investments. My hair is gray for a reason these are only some investments based on the positive economic condition the moment that changes everything goes down together. So i always have things that are not doing well. So you say when will that switch . You should always have many in alternatives are in the equity markets as well because you just never know. Lori the grey hair is very distinguished looking for u. A deal think they care if they push the rules . How important is it to have a solid reputation for playing by the rules with your clientnts . No question. Everybody is out to tarnish every tty and even with our side of the busines not hedge fund but the Broker Market i dont think clients appreciate anyone who is cheating and people are disgusted by those people and i am that way as well. So i absolutely lookit this if the allegations are true there will be some truth to this and then you know, the bad it will happen in bet individuals dont want to be around b people and i dont want to either. Lori we will leave it there. Thank you so much. Do you care if youre a money manager and the rules to give you a higher return . Log on gerri willis. Com and we will share the answers tonight. Stocks making americans feeling a little richer battle sounds like good news but what is the real state of the u. S. Economy . Lets bring in Peter Maurice c. From the university of maryland. What was your take . People look at it as a lagging indicator how we were feeling a couple months ago but that is the best levels we have seen in many years is it a think a sign of things to come . That index was highly correlated with automobile sales and there were selling even more cars with good prices it relates more to of the stock market than it does the broader economy and over the last ne months they have beenut in half next week we will find out the economy over the last three quarters and that not very good at all. Lori so do you think there is any potentialnder that growth rate . Is this the new normal . No. Most economistsoo see things picking up in te second half. U. S. Economy has enormous potential. Looked at the rate of productivity growth in manufacturing. We need to deal the currency problems trying to grow at our expense of so we could get this economy going on all eight cylinders so we need to right Public Policy. The economy was criticized for lack of specifics. I had a comment that was quite critical. His record is a very good and his policies are abo dividing up the pie as oppoposed to making a bigger this administration is flat out of ideas and then to come up with the growth agenda. Lori what else you want to see done . Is there a simple solution . We have another jobs report and a lot of talk but little action in. Oa bike to see us get very aggressive with cna on the currency. In to bring down the value of the market is a gre idea. But then look at that and that is the inceive to cheat evevenore. Ou have done everything but short of currency manipulator actually we have just called the names and have not and we have done a good job at that but with the Exchange Rate that would work quite nicely but with regard to other policies with oil and gas of the to coast and the gulf of mexi we should hold relations with the efficacy tes. Lori a also by our treasuries. It is such a tense relationship and i am glad it went in that direction. Thank you. A lot still to come including advice o awkward many moments to splitting the check at a restaurant and did you know you are probably spending hundreds of dollars a year on nothing . Take a look at a new rash of grave charges hit to your wallet. The pursuit of a better tomorw something we all she. But who can help you find your own path . Who n build you a plan, not just a pie chart . Who can lp keep your investments on course, whatever lies ahead . That someone is a Morgan Stanley financial advisor. And were ready to work for you. But with advair, im breathing better. So now i can help make this a great block party. [ male announce ] advair is clinically proven to help significantly improve lung function. Unlike most copd medications, advair contains botan antiinflammatory and a longacting bronchodilator working together to help improve your lung function all day. Advair wont replace fastacting inhalers for sudden symptoms and should not bused more than twice a day. People with copd taking advair may have a higher chance of pneumonia. Advair may incrse your risk of osteoporosis some eye prlems. Tell your doctor if you have a heart condition or high Blood Pressure before taking advair. Ask your doctor if including advair could help improve your lung function. [ male announr ] vair diskus fluticasone propionate and salmeterol inhalation powder. Get your first prescription free and save on refills at advaircopd. Com. Its delicious. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. Never real thought i would make money doing what i love. [ robert ] we cread legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dam a reality. At legalzoom. Com we put the law on your side. Lori new report says americans lose billions of dollars every year to their credit cd and they dont realize it they are called grey charges filling all sorts of unwanted charges with memberships to zombie charges and the fees that wont die. Here to help us get rid of them from smart credit. Com, john y put together a list of the most mmon charges. Free to pay that is when you go to the web site in exchange for the credit scored you are required to give a method of payment normally a credit card if youhave signed up for a trial membership if you dont cancel it within a feweeks or a few days then they will start his tea in your credit card for a modest charges between 10 and 15 every month. Lori it is confident you havechieved cancellation . Exactly. That is the problem wit grey charges you can cancel the subscription but few months later here it is again. Lori you list of the renewals, give me some examples of these other grey charges. The unintended purchase is one with every by something on the web site website tickets to the point u finally by we want you have to say no thanks and thosthings to cross sell and at south bd you may have thought this collect along the way they use the somethingon your cret card you did not want to buy. Also of a renewal. This is if you purchased the domain name and on the register for one year then after that i ddnt what it but then you will start to see that hits the credit card again. Lori is any of this legal . The milliondollar question. It is arguably unethical in some thinking is illegal but some to th companies were nailed with some hefty fines but underscores the importance of you ian me to become more enged with our credit card statements to understand wha every one of those line items means to correlate with what we intended to purchase. Lori if you cv 2 charge that is what the bank on you will not waste the time to go to the hassle to track that down or sit on the phone to go through the difficult computer web site how you canceled. Day you have advice . Exactly right. There is a strategy behind the amount to between 10 and 20 it is large enough t to justify i would have used my card for thats but it is also not popping out you need to start using, if you are not going to do a better job at looking at your statement and there are serves that will help deal. Mint. Com they will tell you this is out of the norm do you really intend to make this charge . I am not advocating to spend more to make sure you arnot spending more. These are freeeservices it is a second and tear of defense. Lori what about the Consumer Protection ready until bureau . Should it be involved . It is the Sleeping Giant of these perpetrators that they do not want to wake up because i will tell you if they get involved the fines will be impressive so they want to keep it lowkey theyre very willing to credit you back if you find someone who will answer the phone to listen of your challenges but remember youll have objections from the creditcard issuer to say i dont authorize that charge you dont always have to argue with the merchandiser data would to be involved eithe. Lori news that you can use. 14 billion each year. One of the side effects of the recovering Housing Market is the return of the house a slap. Have detail how you get through those awkwar many moments . Next. [ male announr ] if y can stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry offers enduly 31st. Lori we have all experienced those uncomfortable many moments whether splitting the bill at dinner are having a close friend asked for many favors it is hard to about gracefully but it can be done you will never feel it again. With the director of Consumer Education at credit. Com what do you s is the biggest money embarrassmen . I informally polled ople certainly having a friend or Family Member asking for a loan, gettin hit up for many you dont know what to do real encounter this as some time. Lori what is the proper protocol when you are approached by a Family Member . This is common. First ofll, if you are not willing to make it a gift do no load them into their asking you because they cannot get the loan to somewhere else so they may not be able to repay you so you cant say i have been burned in the past was just put it in writing so were on the same page if theyre not willing to do that then you say i am sorry. Lori what about assigning the interestrate . Is below market but they have to continue to make a pate made it to set up the terms but to put the low Interest Rates on it . The irs wants you to do that you can get the rate off the web site so if you do not feel comfortable tell them by law u have to hand. You have faithister or brother constantly asking you for 20 not a big amount of money but if tha is getting on your nerves . It can happenith the of coworker who forgets their walletsvery time at the lunch counter ught some point you have to say i will say no if i am not willing to give them the money that i will say no and they will get the point. Lori chity . You are involved to be asked a lot a and we cant donate to every cause that we care about. You may want to set some boundaries. Letsay you have a charitable budget i will support people that i knew were doing good things not a lot of money but somebody says i amalking 60 miles for breast caer you will support themut also select wonder to charities you can say these of the charities i am supporting this year she had a personal story period there really made me respec why she was suppoing that charity that year instead of others. Lori great advice. Thank you. Though it is aime for the stories you are looking at fobusiness. Keeping the markets in chk the last minute turn helped to but traders are looking ahead to a packed schedule including the nthly jobs report in the Federal Reserve meeting and you should not expected to name soon the president will not name ben bernanke successor until the fall his current term expires early next year. The oil market cools off this week oil fell to 105 a barrel marquis the first weekly decline even gas pric were falling with 0. 2 and apple shares of the global smart phone market fell to lowest level in five years. According kirk to the abm researcho lois level since 2019 years after the launch of the first by phone. Those are the hot stories on fofox business. Com. A warning before going back to School Shopping it will cost you more. House flipping is back to find out how to get the most bang for your buck when you are flipping a home. Are flipping a home. Im a careful investor. Are flipping a home. When you do what i do, you think about risk. I dont like t ups and downs of the market, but i cant just sit on my cash. I want to be prepared for the long haul. Ishares minimum latility es. Investments designed for a smoother ride. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives,risks,. Read and consider it carefully before investing risk includes possible loss of principal. I took my son fishing every year. We had a great spot, not easy to find, but worth it. But with copd making it hard to breathe, i thought those days might be over. So my doctor prescribed symbicort. It helps significantly improve my lung fction starting within five minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. With symbicort, today im breathing betr. And that means. Fish on symbicort is for copd including chronic bronchiti and emphysema. It should not be taken more than twice a day. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. Tell your doctor if you have a heart condition or high Blood Pressurebefo. With copd, ihought id miss our family tradion. Now symbicort significantly mproves my lungnction, starting within 5 minutes. And that makes a difference in my breathing. Today, were ready for whaver swims ourway. Ask your doctorut symcort. I got my first prescription free. Call or cck to learn momore. [ male announcer ] if you nt afrd your medication, astrazeneca may be able to help. Lori flipping a house seems so 2007 and buying a home and selling it for profit played a Critical Role of the housing meltdown that catapulted the nation into the worst crisis of 80 years but the markets showing siggs and experts say flipping a hom cld boost your bottom line. I will bring in our real estate expert, and race to see you is it really back . It is. Everyone around me is ipping a home today to me and a and prices are very strong and one of the real reasons it is back because you see a tremendous buying from institional buyers to buy hundreds of homes we see the lownterest environment up until recently they have staaed low. Lori will that change . That is the one variable in looks like it is here to stay that a l of places have hit rock bottom and are coming back so it is a good time if you are a professional you do know we were doing to get in that business. But a lot of people do get hurt. Lori so lets talk about the pitfalls a into the red flags. If y buy the home from the big remember the previous homeowner could not make his mortgage payments so too does are the houses and not a good repair look for red flags like stains may be that is a problem with the plumbing or a leaky roof had a professional appraisal in the inspection make sure you understand what is wrong with of home understand we can sell it because you could buy it it for ca wch is keeping also make sure by ears need the appraisalto make sure that you can sell it if we hear flippers earning 20 grand . It is possible but if you get into the business you have to be prepared to lose money on the first few deals you have to have the right team and a dusty and time frames and wait longer if you cannot sell immediately. There are so many variables in you can get hurt. Normally that 20,000 is the average that people set the house from the purchase pre that may not include profit depending on how much to put into the home. Lori how long should you expect . Most thato it with the hard money lenders that are set my profeional are trying to buy a home in the flip it within six months. Lori they say most of those markets are in florida . What is special . Florida is the best day in the country but it has always enjoyed a stronger Real Estate Market bid is a bellwether because it is a fastgrowing state over the past seven decades is the fastestgrowing state in the country so it continues to see investment and dont forget we have too good to 50,000 per year moving to this day andhis year we will have more than 200,000 that is more than 2008, 2008, 2009, 2010 combined so that means more americans are moving as are those who want to live here from other parts of the country. Lori thank you so much. Interesting peck. Some parts of the country are better than others but the same holds true with the unemployed in some states it is better to be without a job. That list is the top five minnesota. The states low Unemployment Rate of 5 is why it is on the li. Number four, iowa. Fourpoint 5 in the Unemployment Insurance is 43 percent of the average weekly wage. Number three is north dakota the average benefit is 400 and only 800 people received it just about 3 . Number two, hawaii this seems like the best date the average Unemployment Benefits makes up 53 of the weekly wages and the number one stage is montana benefits cover more than 40 percent of what you are earning in employment has grown by 2 this year so where are the worst places to retire . Tennessee and louisiana. When we come back a florida teacher fired for putting on a fi. Find out why parents you are paying more for School Supplies this year. How much . And next. [ villain ] well mr. Baldwin. It appears our journey has comeo a delightful end. Then i better use the capital one purchase eraser to redeem my venture miles for this trip. Purchase eraser . Its the easy way to erase y recent travel expense. I just pick a charge, like my flight with a few taps, its taken care of. Impressive baldwin. Does it wo for hotels . Absolutely thank goodness. Mrs. Villain and i are planning our. You scare me. D i like it. Lets go whats in your wallet . [ whirring ] [ dog bas ] i want to treat mo dogs. Ourusiness needs more cases. [ malennouncer ] where do you want to take your buness . I need help selling art. [ male announcer ] from broadband to web hosting to mobile app Small Business solutions from at t have the security you need to get you there. Call us. We can show you how at t solutions can help you do what you do. Even better. Lori at time of year as we refuse to an acknowledged backtoschool season but moms and dads are dishing out hundreds of dollars of school suppls and if this seems like you were spending more than usual, you are. Welcome. Estimates are putting backtoschool cost of over 600 . July buy School Supplies at the drugstore no way i would spend that amount. How do they come up at this figure in white are prices going up dramatically . As the kids become older more of them want the latest gadgets and that is driving ose members. Lori are we including technology . My kids are a little like crayons and pencils not computers or ids. The new books is not going up but it is the technology in theegadgets that all the ki are wanting more and more. So 1200 and another is 600. Lori but it is still the backpacking index that you put together that is far outpacing inflation and 7. 3 podium inflation rate is below 2 . The backpack index was put together by someone else but mostly driven by technology allow the School Districts are hurting and teachers are passing the burden for supplies back to the kids and the parents that the school traditionay provided. Lori doesnt matter where you sho . All the big retailers try to convince you they have the best prices but actually it pays to shop around starting next week a lot of states have the sales taught sales tax holiiays to shop the weekend for free so that cou add up. Lori you put it of list of ideal credit cards can you give me some examples . Absolutely. In there at the highest point. So the parents can bring down the budget significantly some king give the 400 statement credit for spending 3,000 or depending on the shopping you could get 6 cash back dead even like myself that have small kids. The chase card also has the bonus category. And then this supermarkets and departme stores fm american express. And for the parents better Small Business owners they can use the amican expre card or the c from chase to get 5 cash back on Office Supplies to go and have backtoSchool Shopping there. Lori it is not even in august. That ihard to swallow. Forg the cost. Fire for having me. Lori a day care teachers fired for putting out a fire. E school said she left the kids alone. It is not the hackers who want your refor the fed is going after your password. Next. Me. Lori u. S. Government has reportedly demanded Major Internet Companies direful to the user passwordsit could have an escalation of government surveillance techniques that have not been disclosed and Elizabeth Macdonald joins us with the latest. U. S. Government has been asking Major Internet Companiesike microsoft a and googles and facebook for passwords according to one websites that quotes to sources cnet gives an ev worse scenario from Edward Snowden that said he is disclosing information that gives federal government access to googles and facebook d other major providers. The companies have strenuously devout deny th have given this access but theyre not saying if the government has actually asked for th password information and now if it is able to determine a persons password that is normally in corrected that could be used to long sought log onto the account oret up the corrpondence or impersonate the user some details are not clear including when and at the request bbn and if it is targeted at individuals or is the entire database dumped . Palace section to do 15 does allow them to get private information that is what ese two data mind of those calls and nators are crying foul will. When the American People find out how their government has interpreted the page redact, they will be stunned and they will be angry. From my position of the Senate Intelligence committee i have seen government activity conducted under the umbrella of the pager attacke that i knew would astonish most of our people. Lori the oregon democrat asserts on the Senate IntelligenceCommittee Also said this week at any event the Governments Authority to collect information on law abiding tizens is essentially limitless under the law. Know if that company has been accessing your password is set to the Internet Company to fight to win your behalf of the remains to be seen to be oblited the information theyre getting your password information and it is a developing story we will follow it closely. Internet passwords . Privacis so in question in. One day care teacher is claiming she was fired for putting out a nearby fire to save their lives by her boss said she broke a safety le should she have been fired . Here to duke and out is our panel. Does the teacher deserved to lose her job . No question she did not deserve to lose her job but when you get into law that is not the same way but the at will employee does not have a contractual rights and who did be terminated for any reason and less discriminatory should have to bring the cse as a whistleblower she did try to protect their children in the workplace than allegedly fired for that. Know whether the law covers that is debatable but unfortunately tis is the case she could pursue this to see if legislation could be brought to find a cause of action. The reason there are safety procedures in place when she went to see what was going on she could have been injured. There is a class of sleeping kids and if that happened under somebody was injured we would say why didnt she followed this procedure . I aid to agree that this is the will situationut you need to have these in place you cannot have anybody doing vigilante work you are a teacher. Get the kids out. Lori but it is a panic siation. Bu if children were burned to think she would be held accountable for that. This iwhy the standards in the workplace dont always match with what needs to happen and there should be a breach of Public Policy or the exception someone like this would be questioned in no matter what either way but to say those who are caring for our children and doing a good job should not be penalized to step out to protect them. Lori i do think this is regina . Tting. Data know why she wou want to go back to begin with but theerson who burns the Chicken Nuggets should have been fired tha is what caused the problem. Government overlooking the actual cause been ing to someone else. This could be set by someone who tried to kidnap a child. You ju dont know it will be interesting how this will play out in cou. Lori you have to trust the teacher there put in the classroom and in charge of the students so with her staff judgment decision her and her thought was that she could take care of that than you have to trust that is our judgment. But she is not a fire fighter she is not qualified but the fire people said after words she did the right thing she did save people from being burned but the real question ultimatel is should she be penalized for sticking her neek out . Will ultimately the legislature or the judge ruling to have the fortitude to recognize the cause of action could correct that but this is a shame. And also the department of education is doing investigations may be something can beone. Something can beone. Lori it is not over. There is a pursuit we all share. A better life for your family, a better opportunity for your business, a better legacy to leave the world. We have always believed in this pursuit, striving to bring insight to every investmen and integrity to every plan. We are Morgan Stanley. And were ready to work for you. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now atour authorized mercedesbenz dealer. But hurry, offers end july 31st going on now atour authorized mercedesbenz dealer. Thats a good thing, but it doesnt cover everything. Ly about 80 of your part b medical expenses. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardizeMedicare Supplement plans, they pick up some of what medicare doesnt pay. And save you up to thousands of dollars in outofpocket costs. Call today to request a free decision guide to help you better understand what medicare is all about and which aarp Medicare Supplement plan works best for you. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. 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This easytounderstand guide will answer some of your questions, and help you find the aarp Medicare Supplement plan thats right for you. Rosecutors a large volume of evidence including emails, wiretaps, and other repting justct against sac visors. The fund pled not guilty to you care if your money manager is bending the rus to give you a higher return . We ask this on gerririwillis. Co. 78 percent of you said yes. 22 percent said no. And here are some of your emails. Id from maryland rights, its interesting how the irs expects selfemployed Business People to know what are and are not proper businesses sections. They cant figure out what is proper for their own business. Roberts says, congress should pass a rule that members must submit a letter to Congress Reached bill written that he or she has read the complete bill and understand everything in it befo he or shes allowed to vote on it. We sure love hearing from you. Send us your email. Go to gerriwillis. Com. That is it for tonight on the willis report. Thank you so much for joining us. It has been a pleasure. She will return on monday. Have a great night in the fantastic weekd. Lou ood evening, everybody. Thank you for being with us. America creating new enemies in the middle east. Key congressional committees have green light of the Obama Administrations efforts to arm Syrian Rebels fighting the regime. The Obama Administration has been widely criticized for its lead from behind policies in libya, egypt, afghanistan. Now providing small arms and ammunition to some of the 1200 different rebel groups that have been identified in syria. We dont know which groups the United States will arm, but we do know excuse me, we do know