Declared. Live in manila for that. First to my partner ty in washington at the major investors summit. Ty . Thats exactly right, sue. Thank you very much. Were here at the schwab Impact Conference. 2,000 registered Investment Advisors, many of whom manage your money, 1100 exhibiters here in my beautiful if often reviled hometown of washington, d. C. Well talk to some of those Investment Advisors and find out what theyre doing with their money, their views of the marketplace, later on this hour. A busy hour from the schwab Impact Conference, one of the largest convocations of its kind every year. Back to you. All right. Ty, thank you very much. Appreciate it. Well get back to ty in a few minutes. The dow and s p 500 trading about above the record closing high levels that we saw. Were up 1573 on the dow, the nasdaq is up 130 and the s p up. 72. The three majors averages up more than 20 this year. How much further can stocks go . Up, up, says seema moody, down down down says dominic chu. Ladies first. Seema, youre looking at the fund mnls for us. Thats right. You know some of the experts that track the fundamentals say its all about the data. The upbeat jobs report, stronger than expected ims services number, signal to investors the economy is turning around. Analyst says the encouraging Economic Data seems to be one of the reasons behind the resurgence in the ek question itty market as well as the ipo market. According to ipo market an lytics, 81 ipos since the beginning of august and the forecast does look strong, 16 ipos expected between now and november 21st. Another reason the bulls say the market will push higher, upbeat earnings. The companies that have reported, 70 have beat consensus and according to thompson reuters, the highest since the Fourth Quarter of 2012. The last reason, europe, getting its mojo back. John at oppenheimer says this has not only helped boost and broaden Investor Confidence but also considered a boon for Multinational Companies that do business in europe. Some of those companies include mcdonalds, alex yan pharmaceuticals and auto disk, all three have exposure to europe. Sue . Into thank you very much. All right. Dom, you get to throw a little water on the party and you disagree. Now, i may or may not disagree but i will say for any trade to work you need a buyer and seller. You do. Say seema is the buyer. Im going to be the seller hypothetically speaking and some of the reasons why. If you look at the charts im taking the technical side of things. Its important to look at Something Like the s p 500 because you can see here at the end of our chart the s p 500 is currently about 3. 5 above its 50 day moving average, the shorer term trend line, the batting average for the market. It doesnt happen often but when it does it signals a shortterm pull back. Thats why some traders are waiting to buy on the dip, if there is one. Another one to look at is a warning sign in the marketplace and this has to do with Investor Sentiment because the Investors Intelligence bullish Sentiment Survey has hit 55 . It doesnt happen very often. The last time it happened, the s p 500 dropped 5 . That was back in may of 2013. And finally, if youre looking for some leadership, look towards the small cap stocks, the russell 2,000 because that line, again, this is the one were talking about, the blue one, typically moves alongside the s p. Here, look at that, the green line is the s p. Its way above the blue line. That means maybe the s p 500 has to fall to catch up with where the russell 2,000 or small caps are. Thats the reason why its important to take a look at some of these warning signs. Absolutely. Maybe buyers but signs for caution as well there. Thank you so much. Appreciate it. Were going to turn now for more signs that the Retail Investors is back in at this record high territory. Were seeing more money go into stock mutual funds this year. Is a tidal wave of money coming . Joining us at the nyse, bob pisani and jeff kilburg at the cme in chicago. Im going to start with you if i could. One of the signs that i always watch for, is margin debt. And margin debt is hitting record highs in many cases and that to me is a warning sign, but what are you seeing from your perspective . Well, sue, that is a great warning sign. We are seeing in chicago massive influence. The Retail Investor is coming back, but i think theyre coming back in a different manner, more intellige intelligent, smarter way, and seeing big in flows in a tactical etf. Its essentially a nonmarket cap weighted strategy allows clients invested to profit from downturns as well as upturns. These inflows nearly 50 billion this year, to 20 bump in the space which only makes up about 14 of all the etfs. Were seeing people come in due to the fact that they get inundated, sue, every day a new market alltime high. You want to be tactical, smarter but you are seeing a little bit of paranoia underneath the surface. Bob pisani, you penned a note on this topic earlier this morning. Give me your perspective. The good news is money is definitely going into stock mutual funds in a way that hasnt gone for many, many years. You can put up the screen, ill show you that there are some very clear trends this year. Weve seen outflows generally for five years in the stock mutual funds. This year theres inflows. Thats good news. Corporate bond funds are still seeing inflows. High yield where everybody put a lot of money is flat to slight outflows where were seeing some outflows is in treasury bond funds and muni bond funds. I would like to see more of that, more money coming out of bonds and into stocks. I think the trend is good. And i agree with what was said earlier, sue, the sentiment indicators, put call ratios, your investor surveys, the vix, those are flashing a little bit of caution right now. Thats the only concern i have. A lot of investors tend to put money in as the market has risen rather dramatically. Absolutely. That brings me to you, a quick question, how would you recommend or what vehicle, perhaps, better said, would you recommend if people are getting into the market right now at these record highs for them to protect their portfolio on the downside . Give me one easy to understand strategy they can utilize . Bob hit the nail on the head. The vix, the complacency is indicative, under 13. To break it down when the vix is at 16 the implied volatility means theres a 1 daily move in the market. Lets rewind to last thursday and friday, a 2 pop and drop on friday. The vix should be at about 32. That is a warning sign. I like to buy out of the money puts or utilize proprietary vix strategy to protect the portfolio. Get into the vix, its cheap here at 13. All right. Thats a great strategy. I want to switch gears a little bit. Bob pisani theres a lot of talk that traders will no longer be able to utilize chat rooms to get information. Whats been the reaction of the guys on the floor . Thats not good. Bloomberg, for example, has essentially what is an instant messenger type of thing where traders communicate. This isnt just bank traders. This is done across the entire trading industry. And its a quick way for traders to stay in tuch with each other, get opinions on what they think. This would be very bad if bank traders couldnt interact with each other. Being on the phone takes too long, sue. This is the efficient way to do it. As long as its logged, messages are logged legally for three years, i dont see what the problem is. Weigh in on this, if you would, jeff, do you use the chat rooms at all . We do. Its a critical tool in our communication as well as other portfolio managers. Its unfortunate sue to put it into chicago terms, a few scumbags in the business are taking away a great tool. Its not going to eliminate people. Cheaters will always be cheaters, find another platform, another media to front run orders. This is a critical tool we need as portfolio managers, talking to our clients and it being taken away causes a problem. Bob hit the head on the nail. Its cumbersome to call someone. You need that five to ten second text and you have your information disseminated. Thanks so much. Appreciate it very much. Lets go to dominic chu. Hes flashed over to the market flash desk and hes got a market flash for us. Apple coming off its lows of the session so far after Cnbc Scott Wapner was told by carl icahn he had another good conversation with apples ceo tim cook about the companys stock buyback situation. He said they both believe the company was under valued. So again, apple shares reacting perhaps to that report, sue. Back over to you. Looks like they are. Thanks, dom. See you in a minute. Back to tyler at the investors summit in washington. What do you got ahead for us. Thank you very much. Here with 2,000 registered Investment Advisors, among the many attending the 22nd annual squawk box impact c schwab Impact Conference. You dont know them, but they know your money. What theyre doing with it after this short break. Well be right back. Here we are, me and you on the road and we know that it goes on and on [ female announcer ] youre the boss of your life. In charge of making memories and keeping promises. Ask your financial professional how lincoln financial can help you take charge of your future. Oh, oh, all the way oh, oh a to to a still developing story and the trail of destruction left by the deadly typhoon in the philippines. Typhoon haiyan may have killed as many as 10,000 people. Authorities say at least 2 Million People in some 41 provinces were affected by haiyan. Ian williams is live in manila, a massive storm, ian. It certainly was, and the relief effort is now getting under way, but slowly. The logistical challenges are enormous. The head of the Philippine Red Cross described the situation down there as a as absolute bedlam. They are beginning to get aid in, the u. S. And Philippine Military are bringing supplies into the airport in tack low ban. The ngos, aid agencies talking about bringing stuff in by boat. The u. S. Military, the marines, are concentrating on things d desperately needed such as water, shelter, Water Purification tablets and stuff they can help children who have been particularly affected by this. But one of the problems is that many areas have still not been reached. The rescue efforts have still to get to some of the outlying areas, some areas particularly hard hit where power is still down, communications are out, and the roads are blocked. So yes, the aid effort is getting under way, but it is slow and theres an enormous amount that needs to be done there. Ian, thank you very much. Ian williams with nbc news in manila for us. Lets check out shares of tesla. The stock rebounding as concerns over recent car fires has died down. Over the weekend the owner of the latest model s to erupt in flames said he would buy another one in a heart beet. Given the severity of the accident he thinks the car save the his life. Tesla up almost 5 on t trading session. Back to dominic chu. How about go go shares doing just that, going up and up. The inflight Wireless Communications and Networking Company reporting a smaller than expected loss on better revenues. The results showed 24 more airplanes are using the Companys Services and the average sale per user was up 21 . It raised its full year profits and sales guidance. A little behind that pop in trading today. Back off to Tyler Mathisen at schwab impact. Thank you very much. How do you throw a party for 2,000 Investment Advisors . 1100 exhibiters . This guys know, bernie clark, executive Vice President at schwab and head of schwab adviser services. Youve done this a long time. How is this event different from lets say five years ago . Whats the difference . I have done it a long while. Although theres commonalties weve seen such a growth momentum and advisors are keeping their clients, winning in the marketplace, got them on a longterm track and theyre celebrating. Its a good time. You did a survey in which 70 of the advisors said that they thought their businesses were poised for growth. What do they see as the future of their business . The population is aging, thats one part of the clientele, but there is a new population behind them. Absolutely. Theyve enjoyed double digit growth over the past five years, hard markets to be part of. And so when they sit back and they look and see the next generation, theyre preparing themselves. Theyre starting to engage more aggressively in the social media. Technology, trying to bring more to bear. One of the things that stood out in the survey to me was the finding that more than half thought that their clients were not demanding, thats probably too strong a word, but were inclined towards low cost etfs and index funds. What does that tell you about what we would think of as traditional stock trading, the purchasing of individual securities by individual investors . No question the world has become a slightly more passive and cost is a big part of that component. 42 acknowledge that they dont know the investment vehicles their clients might want in the future and may not have been invented yet. Probably not. The older clientele, i am a part, they want reliable income. Yes. How is that being provided to these customers today . Its critical. I join you in the older set as well, and we have to make sure that begins to satisfy the need for guaranteed Income Investment and something thats going to be out there for them in the future. Something they can add no their portfolio with the bonds and stocks. Congratulations on the event. Always good to see you. Thank you very much. Nothing you said but im going to leave you now. Thank you. Im going to talk to three individuals managing individuals money. Andrewberg of homrickburg in atlanta and elaine beetle of beetle financial and david. Ill be your server. A little parfait to make the interview go down a little bit better. There you go. Thank you, tyler. A little feedback but thats all right. We got spoons for you. Elaine, ladies first. You know, the question i want to know is what are your clients asking you and what are you telling them . Are they nervous . Content . Conplacement . I think theyre a little in the middle. The way we do our work with our clients as advisors were setting an Asset Allocation that makes sense for them and makes their money do what it needs to do for them. That may mean theyre in the stock market for that growth side of it if they have time to leave their money there and grow but if weve got requirements on the portfolio to distribute money to them on a regular basis, our rule of thumb is that five years worth of fixed income has or five years worth of distributions has to be on the fixed income side. Educate our clients well, they understand that and so even though they dont like when the market gets really volatile, of course they love it now that its been going up for a while volatile up is okay. Volatile down is not so good. But, of course, theyre not real happy with what were getting on fixed income. Weve managed that fairly well. If i had to guess, david, theyre not real happy about what has been happening in washington, d. C. Not at all. The volatility is so paramount in their minds it creates a fear and almost a disgust at the lack of cooperation that theyre receiving from d. C. What would you like to see . What would they like to see out of washington . Some sense of get a deal, make things stick . No matter whose deal it is or what . They would like to see a sense of responsibility back toward the investor, toward the voter, instead of personal, political careers. Especially at the leadership level within congress and within the administration. So how does that affect what you do with their money, andy . How does washington affect what you do . Well, you know, whats going on in the economy and the government, of course, is separate from whats happening in the stock market. And they dont coincide, unfortunately. So the logic the stock market is not the economy. The stock market is not the economy. We have, you know, the economy hasnt grown fast, still a jobs problem and we have the political mess. With the accommodative policy that fed has we think that stock market could keep going from where it is, although its pretty lofty. Are you worried that people have been sucked in and that they may get whacked yet again . Yeah. A bit. How do you protect them . Well, like the other advisors, we allocate assets and protect our assets as best we can but were not market timers. Were in the stock market, but were also trying to protect their money and our clients seem content. Its been a fiveyear bull market basically, four years from 2009 to now. Right. Whats next . Well, i mean i think we need to be cautious and with our clients we dont want to put them in the market if we cant leave the money there five years. Heing for them. Theres going to be pullback. The way the market works its so much influenced by psychology. If we get a little bad news we see a little bit of a retraction. As we did when the fed decided theres concern the fed might stop their easing. You heard bernie talk about the prefb lens of index funds and etfs and portfolios. What kind of products are you putting in your clients portfolios . What personally is saying is the relationship is becoming much more important than product. Products can be used to generate results, but those results are only important if theyre achieved against the clients goals. What advisors within the ria industry, registered Investment Adviser industry match those up. What products are they leaning towards . Low cost index . Certainly that is a trend where you can get the performance without the cost, yes. You also finding that . Weve, for example, on the u. S. Equity side weve got passive. Were big believers in etfs, big believers that paying managers will not produce excess return. Are investors, your clients smarter today than five years ago . I think they are. I mean i think they pay more attention with the 24 7 news that they get feeding to them, so i think theyre a little smarter bu