Appreciate means you want to be more cautious about buying Multinational Companies whose profits weaken when the dollar goes up. Reporter so far the tugofwar playing out hasnt been enough to derail this rally. But experts on wall street caution that even the strongest markets face headwinds. It would be completely irresponsible not to expect some sort of volatility, you know, within the first half of this year. But theres a soft floor for equities, and any discount like that presents a buying opportunity. Reporter for nightly Business Report, im jackie deangelis. Lets delve deeper into the rally and get a pulse of the individual investor. Brian belski and john sweeney, heads up Retirement Services for fidelity. Welcome to both of you. Mr. Sweeney, let me begin with you. I know you have a survey that youll give us a sneak peek look at tonight. It doesnt really come out till tomorrow, in which you look at what you call High Net Worth investors, people with more than 50,000 5 250,000 in investable assets. The survey indicates that those individuals are getting more bullish and specifically more bullish on u. S. Stocks. Tell me. Thats right, tyler. So were pleased to see that weve been trying to get into the market for about 14 months now, its really resonating with invest investors. Youve seen this in the flows over this period of time. Certainly the recent euphoria in the market has been something that attracts a lot of media attention. What we try and remind investors is not ten days but ten years is what you want to be focusing on when it comes to equities. Let me ask you about the strength of this rally. Is this just a market rally or something bigger . Is this the beginning of a bull market cycle . Well, we take a look at major bull markets. Typically they start when doubt is very high and what i like to call the bunker bull market. Most investors are still in the bunker and not believing. From a longerterm perspective, we think were on the cusp of the next great equity bull market that could be 15 years in length. That doesnt mean we cant have some periods of excess volatility and even down years. Case in point, if you take a look at the 1982 to 2000 bull market in 1987, was a volatile year, if you remember, 1994 was a flat year. So we could have periods like that. But the bottom line is we believe individual investors are very under weighted equities. And Institutional Investors around the world are extremely underweight u. S. Stocks. And we think from a fundamental perspective, u. S. Companies are the best and most attractive asset in the world. Well, that certainly seems to be, brian. What do folks who responded to John Sweeneys survey indicates. They indicated twothirds of them were going to put money into u. S. Stocks. Mr. Sweeney, let me ask you, do you see what brian sees in your complex there at fidelity, namely that people are still underweight u. S. Stocks compared with what they ought to be, and is that behavior changing . Is the flow of funds more into equities so far this year or not . It is, tyler. Were seeing more flows into equities this year which is a good trend. Obviously, weve seen a cycle over the last four years, and thats really rocking the boat. And what we need to do is get people back to the middle. Think about a diversifiy eied portfolio, well see people continue to buy as the population ages. We need to keep inflation in mind. Equities are the only place that is really going to outpace inflation over long periods of time. And people investing in whether its for accumulation or even income distribution, you need to be thinking about inflation when they think about their allocation to equities. Brian, i want to ask you about were all waiting for the s p to hit its closing highs, just a few points away, for investors. And i guess for a market strategist, which is more important for you to see the strength of this rally . Is it these new highs on 30 dow components or is it the s p 500 . Its really the s p 500. For instance, we do not forecast 30 stocks. We forecast a target both in terms of price and earnings for the s p 500. I remind investors that our target last year was 1425, and the market closed at 1426. This years target is 1575. Clearly were within reach of that, and it has an upward trend especially given the fundamental construct we think can improve over the second half of the year. But the 500 stocks of the s p clearly much more diversified way to look at the u. S. Market. And frankly, u. S. Investors u. S. Portfolio managers benchmark themselves against the s p 500, not the dow. So thats really the clear component that most investors should focus on, and it would be a really key element with respect to the longerterm strength of the u. S. Market. You said that bull markets go up and down and along the way. What could jolt this market . We think from a macro perspective, its employment. Employments the great circle of life. Thats why housings come back. Thats why the stock markets come back. Thats why the economys come back. If we see some sort of bump in the road with respect to employment, i think that could really surprise people. Now, from an historical perspective, the job gains that were seeing relative to history are very slow. Thats why we like to talk about the construct of the u. S. Market in a bit of nursery rhymetype situation where its the little engine that could. We continue to kind of climb higher and trudge higher, slow job growth, slow gdp growth, slow Earnings Growth and low Interest Rates is a great, great time to be invested in equities. Bear in mind, investing is not a binary event. You have to own fixed income, commodities, real estate and own some equities. Its not an either or type of event. But overall from a longerterm perspective, we still believe that people are you understand exposed equities because of the ills of the last 20 years. John, i really want to ask brian, he said 1425 close on the s p. It close the at 1426. I dont know how he got it so wrong there. At any rate, i ask you this. When baby boomers start to retire and pull money out of their accounts to pay for expenses, what do you thinks going to happen to equities . You know, tyler, the important thing, as brian mentioned, you want to keep exposure to equities within your diversified portfolio, equities will be the place that outpaces inflation. When theyre planning for a 30year time frame in retirement, really have a significant allocation to equities. For a 65yearold, that means almost 50 of their portfolio. Over the past five years thats been a difficult market to weather through. As the equities have had a significant pullback over the last five years. But really when they keep a perspective of how long theyre going to need their money to last, 30year time frame, equities provide a really good perspective. I take it if investors do what you think they ought to do, they would have little effect on equity values. Over a long period of time, youll have people continue to pull money out. The populations going to continue to grow, whether its manufacturing, the u. S. Economy is well poised to capitalize on that from our perspective. Gentlemen, thank you very much. Brian belski, john sweeney, appreciate your being with us. Treasury secretary jack lew visited a siemens plant highlighting the importance of infrastructure and manufacturing and creating new jobs. Steve liesman spoke with lew about his role at treasury, the budget negotiations in washington and the challenges the u. S. Economy still faces. Reporter treasury secretary jack lew in some of his comments in the new position, talking about the value of the dollar, the budget deficit and the economy. I began my interview with him by asking whether or not equities which have seen new highs are in what he would consider to be a bubble. The analysis ive seen doesnt give me reason to be worried right now. I think one of the lessons we learned from 2008 2009 is that even when things are not a problem, we always have to ask those questions. We need to make sure that we have the transparency to see whats going on. In firms and markets. We need to have the regulatory tools to deal with problems as they develop. That doesnt mean we should jump in when we dont see a problem. Every treasury secretary serves at the pleasure of the president. You have no way of knowing how long youll be in the office or how much time youll have to do it. At the end of your tenure in the secretarys position, what is the shape of fannie freddie, fannie mae and freddie mac . Have they changed . Well have more to say about it in the future. While we have Interest Rates in the attractive place they are right now, as the president said over and over again, American Families can save 3,000 if they refinance. Its good to be the economy. It creates jobs. Reporter he said he supported the position of his predecessors in favor of a strong dollar policy on the issue of the budget, theres a big battle over sequestration. Secretary lew said he thought he heard cooler heads prevailing and seemed somewhat optimistic that a deal could be reached that would end the automatic sequestration cuts. Steve liesman in alpharetta, georgia. Meanwhile, Timothy Geithner will write a behind the scenes book on the financial crisis and how he and other officials debated and worked together. Crown publishers commissioned the book and made the announcement today. The book is due out next year. No word on what crown is paying mr. Geithner. The second report card on the health of u. S. Banks came out late today with mixed results. The Federal Reserve rejected the capital plans from bb t bank and allied financial which was the only bank to fail the original test that came out last week. Goldman sachs and jpmorgan got only conditional approvals and were told to revise their plans by the third quarter. The fed approved the plans from the nations other 14 banks for dividends and their share repurchases, but American Express will have to submit an adjusted capital plan after the feds said its proposal would have eroded its Capital Position too much. Now, the central bank said the socalled stress tests show that overall american banks have sufficient reserves to withstand another severe economic downturn. Tyler . Analysts sent two major to come stecks in opposite direction today. That tops our market focus. Amazon dropping as jpmorgan lowers it because of gross margin profit returns. And amazon closed off more than 3 at 265 and change. Meanwhile, apple was up on the day. Its competitor, samsung, reveals a new smartphone. Btig analyst says there are significant Revenue Opportunities still for apple. And that brought apple up almost 1 to 432. 50. Well have more on that new Samsung Phone a bit later tonight. Legendary investor Kirk Kerkorian says he wants to raise his stake in mgm to as much as 25 . That made mgm a big winner today, up almost 7 . Mens wearhouse surging after it said it was considering Strategic Alternatives for k g unit. Shares jumped 19 to 34 and change. Teen retailer aeropostale reported better than expected earnings after the bell today, but the company sees a First Quarter loss ahead. Analysts were expecting a small gain. Shares dropped more than 5 in afterhours trading. And suzy, etrades largest shareholder, citadel, is dumping its entire stake in the online broker. The hedge fund had been pushing for etrade to sell itself. Shares of etrade off 8. 2 . Intuitive surgical got a negative recommendation from the American College of gynecologists, and that sent its shares down. The groups president said there is no good data proving that robotic surgery for hysterectomies is as good as other techniques. The stock lost almost 4 closing at 489. 89. And coming up, the change in tsa policy that could make for shorter lines at Airport Security. But does it come with a price . First, though, 126 s p 500 Companies Traded at new 52week highs during todays session. Thats about 25 of the index. 57 of those names hit new alltime highs. Heres a look at some of them. A lawyer who represent eed chrysler has been chosen by michigans governor to be the emergency manager of detroit. Kevin orr will try to fix the citys finances and try to avoid a bankruptcy. Detroit is now the largest American City ever to have its finances placed under state control. Theres also trouble in many of the nations counties. New figures from the Census Bureau show a Record Number of u. S. Counties more than one in three are dying off as aging populations and weak economies force young adults to look elsewhere for jobs. Airport safety Officials Say they are allowing small knives and items like golf clubs on aircraft again to conform with International Standards and make Airport Security checkpoints move more freely. The decision by the tsa particularly about the knives has been met with a storm of protests from a broad range of groups. Hampton pearson has more. Reporter today the growing backlash against the tsas decision to allow passengers to carry small knives on planes starting next month made its way to capitol hill. A coalition of flied attendants, pilots and air marshals joined massachusetts congressman ed r markey who has blocked the tsa move. We will not rest until americas flight attendants, pilots, air marshals and passengers are protected. Any way you slice it, a knife like this is a weapon, and it doesnt belong on an airplane. Reporter opposition also includes the union that represents some 45,000 tsa screeners as well as at least 3 major airlines. Usair, american and delta. But reaction among passengers is surprisingly mixed. I dont think it would endanger anyone. Its such a small thing. I just think its totally wrong and unacceptable. I fly all the time. I do not like the idea of having knives on a plane. Reporter embattled tsa chief john pistole is not budging, telling lawmakers at a House Committee hearing this afternoon the agency focus is on terrorists using explosives to blow up planes, not knives. It is the judgment of many Security Experts worldwide, which i agree with, that a small pocketknife is simply not going to result in a catastrophic failure of an aircraft. And an improvised explosive device will. While it has bipartisan support, the question is can it get through both houses of congress before the april 25th tsa policy change . For nightly Business Report, im Hampton Pearson in washington. And tomorrow on nightly Business Report, well be looking at the impact of Higher Energy costs on the Consumer Price index. Well learn how confident consumers are right now with the Michigan Survey out. And well get Alan Greenspans views on the economy right now. First heres a look at the International Markets and how they did today. A big night in the big apple for samsung tonight. Its expected to launch its newest smartphone, the galaxy s4. The company rented radio city music hall for the unveiling. Samsung hopes it will help it gain share over apples popular iphone. Apple is still number one with 34 share. Samsung has 19 . Joining us with more, Dennis Berman from the wall street journal. Dennis, a lot of hype for this new Samsung Phone. Whats new . What are the bells and whistles . Of course, the hype its supposed to be unveiled at radio city music hall. They chose a pretty cool venue for it. Theyre not saying precisely, but there have been some things that leaked out their business speculation. One of the possibilities is perhaps that the phone follows your eye. So as you look at your phone or looking down at an imaginary phone, it knows as your eye moves, and it perhaps adjust its web browser or do a number of other functions as it monitors your own eye. So pretty crazy Science Fiction stuff if it happens to be true. One of the things ive noticed about samsungs devices, dennis, is that they tend to be slightly larger, particularly the screen size. Yes. Tends to be larger than many of the competitors. Is this one of the things that they think differentiates them from the rest of the class and gives them an edge . Well, tyler, ive got to tell you, you go to asia, and it is not a taboo thing to have a large phone that perhaps almost even looks like you know, a big piece of bread youre holding up to your ear. It just culturally is different. Whats interesting is that were really seeing that change. Peoples attitudes and behaviors change here in the u. S. As well. The bigger phone, you know, of course they now call it a phone tablet. Theyre calling it a fablet. Terrible name. It really is changing how people use their phones. They can look at a bigger screen, do more with it, they can read books more easily. And that, in fact, is killing Barnes Nobles own reading product, the nook. Dennis, where does this leave apple . Its not going to have a new launch of its iphone months away. What kind of damage could samsung do in the meantime . Weve really seen a change in perception. The fact that were talking about a Samsung Phone launch is in itself sort of an important moment in time. Apple, you know, the stock has come down, but it still has a majority the leading share of smartphones in the united states. It still makes an incredible sum of money every quarter. Its still an incredibly impressive company. But again, the perceptions are changing. And on the margins, people are more willing to consider a samsung smartphone. And weve seen it remarkably apple, when apple executives talked to t