Stocks fell across the board today, this is not taking long heading into this holiday weekend. Especially not with the uncertainty in syria. One of the worst months for stock since last may. Utilities and financials led the market lower. The dow lost four and. 5 , the s p 500 lost over 3 . Still the market up easily double digits so far this year so lets get to our panel. I will ner mess that up again. And this one, our friend. Guys, lets talk a little bit about this month, the worst month since may of last year. Although i never sensed any panic, that is the odd thing about it. It is the summer, it is august. We ha had a lot of external shock. Syria being one of them. Charles we were already week before this happened. We were, but itdded fuel to the fire. Charles that fire was the federal rerve. Probably more than anything else. You are right about it all day long. It seems like that is the darkest cloud over the market right now. I think i like miley cyrus more than i like ben bernanke at this point. The market is correct. It is not the end of the world. 10 corrections happen. We are in the midst of one. Syria did light a little fire. Earnings and sales growth not very good. We are up there 16 times earning. The market is tired. I would suggest it is normal at this juncture. Charles do you think the fact it felt like this month good news was good news, but that news was bad news. We started acting in a way that tells me maybe we can live in a postfed world in this market. I think what is going to happen next is the job number will tell the market whether the fed will taper five, 10, 20. Charles isnt it the fact you are going to taper, for me tapering at this point a sign of surrender by the fed. They are acknowledging our policies dont work so no need to take on more risk because we are not nowhere near the targets they put out for us. Ben bernankenows the jobless rate. If everybody quits the b mart soon we will have a 1 rate. I think the market is used to 85 billion per month. When the fed stops printing money the market dumps 15, 20 . That is my big worry. Back in 10, 11 they were not printing at all and they lifted up again. My point i what happens when we normalize . Were already seeing the rates normalize. No longer listening to what the fed does. That is my issue going forward, i am worried the fed knows they have to be really careful of how they go about this. Charles right now i want to bring in the managing director. Were talking about this week, the normal pullback despite the fact it was the worst month of the year. There is a lot of confusion over what the fed will do. Walk us through what you are saying. I think we will have a normal pullback because of earnings. I hear this talk about the fed, you and i have talked abt this, where is the dotted line behind pending bonds and earnings and having the stock market go up or the stock market go down. I dont understand how people in our business continue to support e idea printing of money is pushing stocks higher. Stocks will go lower. I dont get it. I watched the market and i watch what the market has done. How does it connect to earnings, gary . It doesnt. But go back to 09 when the fed announces it and printing, the market goes up, the stock market corrected. The jury will be out when they slow down again. That was 09 at the most sensitiveime our market. They were hypersensitive to anything and supporting it, that was the idea. I dont understand why in the World Everybody is saying when will the fed quit printing because nobody can prove to me there is an impact the fed has printed money and that pushed stocks higher. I wish people would stop saying that. Charles what do you say . Earnings have been pretty good. The bottom line numbers have been relatively strong. What is more responsible, more credible with respect to the market rallying . I think there is a bit of a story with my supply metal in the Financial Market but also real assets as well. What you have seen is not only Financial Assets going up im a but also real assets. Charles but that is supposed to go up the most, gold has been a major disaster. Many who have bought gold think thinking it would create a bubble looking at 1000 points below where they thought it would be. One of the things i love about this year has been redemption. I have to tell you something. We write off companies and industries pretty quickly. You look at the winners this year, best buy, amazon is going to eat their lunch. Game stop. Netflix, they shot themselves in the foot a couple of times, so i want to ask is it possible for other companies to emulate what i have seen. I have radioshack, blackberry and jcpenn. These are stocks that are down, in the news, people know them. Could they have a shot . When you look at individual stocks and individual market, lot of rern as well. Look at stocks, part of it is yet to look at the fundamentals. The other side of it is supply and demand for that security and what it has done technically. Charles radioshack, this article came out in business week talking about it being 2 of what it was 14 years ago. Another new strategy called less play. Should anybody play the stock . I wouldnt. Anybody on their bacack can get better. Netflix came up with new stuff. Apple was dead in the water. They came out with new products everybody loved and what best buy did, the earnings are better because they streamlined the company, companies can come back at any time. Charles jcpenney, there is a big tugofwar. He believes in the company, blackberry a lot of people buying back stock. The show was about investors who have gotten burned in the market. Sometimes a market comes back, sometimes individual names come back, but these are three that i worry about. The three stocks you are talking about, jcpenney is funny because i went to high school with accident. I believe they can come back because it is so badbased and can make money in so many different ways. Blackberry has just got the life kicked out of it in terms of the shortening of it. When these stocks get punished, they get punished ferociously by computer programs and when they hit the different support levels and they go down lower and lor, eventually nobody looks at them and determines it is time to buy them again. Charles jcpenney has a shot, radioshack yes or no . Not a chance. Charles jcpenney, what does it stand for . Cash. Charles imagine that. Coming up we all suffer from the end of the summer blues. How it is reflected in the stock market and september is shaping up to be a critical month for the stock market from syria and the fed and everything in between. What you should do with your money. Those answers are coming up. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Charles we are making your market today with a look ahead to the critical month of september. Feels like it will be doordie for the market. Historically september is the worst month of the year for stocks. We have the political and economic clouds in the horizon. It could be a stormy month indeed. Here with me now, chief equity strategist and senior portfolio manager. Looking at your piece from august 26, the title is looking beyond the fed to Earnings Growth, im glad you said that. Are these investors, professional investors putting too much time looking at the wrong thing . If this market goes up or when it goes up, i think it will be because revenues will accelerate. I dont think it is tomorrow or the next day, but that is what drives the market. Charles i tend agree with you. The transition, they go from the asset purchases down to eventually zero, and what happens in between that time . We know what happens when they raise rates, but i dont think we have been here before. That would create a huge buying opportunity if the market overreacts. I am hoping unsuspecting they know the fed will start tapering probably sooner rather than later, that they will do it in a measured pace, eventually the rates will still be zero. Charles lets point that out. It has been discussed before, the distinction, huge difference between the fed slowing down and eventually axing wishing its bond assets purchasing to hiking rates. When do you think that will actually happen . I think that is at least a year, probably more like two years away. I hope am wrong, sooner than that. It means the economy is grabbing hold and doing better. It could be a couple of years before the fed raises rates. Charles i think it will be muddled through because of policy. The other is Earnings Growth we had a lot of people questioning earnings, especially the numbers that have come out this earnings season are abysmal on the top line. Almost every day virtually every company missed the top line. Corporate america crafty, they find a way to make the bottom line. Does not take away the legitimacy of these earnings . To some degree we would like to see the bottom line improvement with topline growth and eventually you will have to go there. As you well know, corporate earnings are at an alltime high, revenues are at an alltime high, are we disappointed with the growth rate . Yeah, a little bit. We need a little bit of time to go up from here. It will take continued help from the consumer, capital out of corporate america, continue less bad news out of europe and some combing in the emerging market especially china. We will get a mix of that to get some better revenue growth. It will not set any records, but we will get a little better. Charles we saw some answers to your china part there. I think that is getting better. A lot has that europe is going pretty good at a lot of diverse sectors. I think the question, bob, the u. S. Consumer has not taken the bait. They have learned a very powerful lesson, putting off debt and they are not eager to take it back on. They will spend their debit card and every penny they make but they are not using the credit card and not willing to go into debt we had is that critical to really getting some speed behind the numbers . We need the consumers to do better, charles. I dont think we are going get that. The consumer will participate but will not lead the way. You point out they are spending, using their paychecks, not a lot of debt. Charles have a fantastic threeday weekend and come back ready to go because next week will be pretty exciting. We will see you soon. Our next guest is 40 years old anand a lazy hazy crazy days of summer unfortunately coming to an end. What that means for your money coming. Nascar is about excitement. But tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. That why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. Charles do you have a sense of melancholy today especially if you have to work . Charles melancholy, a feeling of sadness often times with no obvious cause. Synonym sadness, sorrow, unhappiness, dejection, dependency, gloom and misery. This mornings commute was the epitome of bittersweet as each friday before labor day the commute was easy as pie, like driving down the Pacific Coast highway without any other cars on the road, doobie brothers blaring and putting the jaguar to the test. Yet i knew this was the last time this year i would have it is easy. Traffic would be back on tuesday and it is supposed to rain on the east coast. I get a sense of melancholy every time this year. This matched by the mood of the nation. It manifests itself in a range of emotion of anger to indifference and it weighs in the economy and it weighs on personal decisionmaking. Our kneejerk reaction is always defensive with a narrative of shifting brain and assigning punishment. Yestery we had the founder of london liquidators on the show because i have been singing the praises as another Great American success story. Tom sullivan started as a natural progression of life when he saw an opportunity selling lumber in a way that wasnt being done. People invested in the Company Including our subscribers making a lot of money. So one of my biggest goals was to get people to see behind the numbers and make sure the numbers are not just numbers and stock symbols, they are people. They start the business and establish a culture. Tom was a great guest. Lively, excited and inspirational but then he did it. He talked about the fundraiser he recently had for president obama. Naturally we were shocked somebody who could contain so much of the system the president is trying to dismantle. He says he likes the president and things he means well. In my mind if dismantling america and peace it back together as a nation that scores success is wellmeaning, then so be it. On the interview was over somebody wrote to me he would never buy from london liquidators again. I get where he is coming from but i have to say it is a slippery slope. A woman emailed me earlier in the year with a lt of companies she had her husband shop at and it is shorter than the list they are boycotting because of management. I did not make her day when i told her cost to probably to be struck off considering the money the ceo race for president obama and the speech he gave at the dnc. I wonder how old she and her husband were. Maybe they should watch duct honesty and learn to hunt to make sure a penny of her might does not end up with the wrong organizations. I undstand it, i still have a copy of milk. I have not opened it. This has stopped some great people from investing in the stock market. Conservative have missed one of the greatest stock market rallies in a lifetime because they had the notion of defense against success helping the enemy. It is a pity because we all have to be very careful our disdain for a Political Party or the ideology running america doesnt cloud our appreciation or our love for america we had onto it tonights city quiz, it is something we have done all week to show the importance of looking at other countries. It is a world and a big market out there. Last night i told you about in the report said the First Time Ever the worlds developing countries have greater purchasing power than the socalled rich nations. Taking out the u. S. And china, that is an amazing statistic. Here is tonights city. Impressive, look at that skyline, this country is a veryy important geographic location, tourism is a big pa of it. Not a huge population, but it is growing rapidly and if you think you know where it is, email me or tweet me right now. Still ahead on making your market. Taking apart when the worst worst mistakes investors make and it is a mistake they are encouraged to make eye the pros. And if you are not ready to plunge into owning individual stocks, i am not excusing you to sit on the sidelines. There are still ways to be invested. If youre ready to own a Great American companies i have stock American Companies i have stock buying opportunities. Any last requests mr. Baldwin . Do you mind grabbing my phone and opening the capital one purchase eraser . I need to redeem some venture miles before my demise. Okay. Its easy to erase any recentravel expense i want. Just pick that flight right there. Mmm hmmm. Give it a few taps, and. Its taken care of. This is pretty easy, and i see it works on hotels too. You bet. Now if you like that, press the red button on top. How did he not see that coming . Whats in your wallet . Like carpools. Polly wants to know if we can pick her up. Yeah, we can me room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male aouncer ] the best thing to share . A data plan. At t mobile share for business. One bucket of data for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. Charles is your money sitting on the sidelines under the mattress . If so, listen up. I brought all kind of the viewers to the show to convince them to get into the game. All of them are just starting out their careers and wanted to learn more about the market and an edging their money. Approaching retirement and working on a patent in his retirement but all these guys have an eagerness to live lfe but they are all unsure of themselves with respect to the stock market and their ability to unleash their moneys potential. I will try one more time to convince a 40yearold to jump the freelance sportswriter in new york city. You are a little bit intimidated by the market. A little skeptical. Charles you write a sports blog for the Boston Red Sox and you live in new york and you are afraid of the stock market . I am skeptical. Charles why are you skeptical . I he lived long enough to see the ups and downs. It seems like people who really experience success in the market tends to be people on the inside of the market. A limited amount of very wealthy people in this country and that number is shrinking. A vast number of people kind of struggling. Charles dont you find it ironic to a people who have made money during the Great Recession are the top 1 , dont you know most of them have their money in the stocks that you can buy the same stocks that they own . But there is very little mobility within the classes of the country right now. I think it is because people who buy stock and make the big money are already having money to begin with. Charles most of the people it depends on the study, i have studied this a lot, anywhere from 70 as much as 90 of all millionaires in this country are selfmade. We have had people all the time in this network think ey made the money themselves and what they did was a lot of times they will go public and make it so anybody can invest and share in the wealth with them. There are ups and downs, a lot of times the stock market reflects life. Those are some of the major miconceptions out there that people have that it is an exclusive club, theres no way i can win at this, and yet we are the people who drive it up. Have you ever seen black friday, the day after thanksgiving . I have seen people tried to give away their money. On thanksgiving people eat pounds and pounds of food and they still go to the mall at midnight and give way every nickel they have made for two months. Sell them goods, you got something, you have a nice chop. There is a way you can become part owner with the rich and get in that game. You look at historical speaking i am a little skeptical. Talk to the ownership society, that did not work out very well for the whole country. The myth buying stocks, not technically gives you a very small portion of the company you buy into, but i dont think it gives you an ownership stake the same way, you are not a decisionmaker in that. Charles you are a part ner. If someone, i remember i had my knees, she wanted to buy the first iphone. By a 30 cell phone and the rest you can buy an apple stock. She would have had so much mey and still had a cell phone. History is what we wanted to be. You remember all the negatives but is a doll closer to being an alltime high or an alltime low . An alltime high, and so is the income gap. Yesterday we had fast food workers all over the country going on strike. Now they are going on strike for higher wages buthe companies who employ the minimum wage employees if they give them raises that will cut into their profit and lower the stock prices. The mket works against low income people in a lot of ways. Charles the problem you have is you are so clouded by politics that you are hurting yourself. Have you looked at a mcdonalds income statement . Have you looked at yums income statement . They are growing because of china and india. If this on a of food in china i dont owe anybody in ameri and nickel. You have you shed the anger. You seem like you dont like this country. You are missing out on an amazing opportunity. I like the country, i like living here, but i think it has problems. Charles is it the best country in the world . Have not lived in enough countries. Charles you have not read enough. Now the other novice this week, they actually did very well. My favorite of course, mike had a huge week. Remember they had a good earnings number up 9. 3 for the week, i am no fashion expert, did not think anybody was buying them. Joanne had ds w, designer shoe warehouse. Phenomenal earnings report. Her numbers were absolutely phenomenal as well. It is just amazing to me people will go out, spend their money and have so much resentment for the country, i have been all over the world and i appreciate every aspect of america. I know it is the best and i want a piece of the action. When we come back we will bring the panel back and look at next week and next month tring. Just unforgivable especially when it comes to your money. We will look at some pet peeves d whatnot to do next. You have time to shop for Car Insurance today . Yeah. I heard about progressives name your price tool . I guess you n tell them how much you want to pay and it gives you a range of options to choose from. Huh . Im looking at it right now. Oh, yeah . Yeah. Whats the. Guest room situation . The name your price tool, making the world a little more progressive. Charles i have said all week you know more about the market then you give yourself credit for. They have firsthand knowledge of where companies are going. It is not the ivory towers. There is some realworld advice for you. They are encouraging you to make one of the worst mistakes with your money. I have my pet peeves on investing and at you need to know about. Here to break it down, author of worth it, not worth it, simple blend probable answers to financial questions. Welcome to the sho thank you very much. Charles there is some a Different Things that bother me about the market. The idea of a cheap stock to how much people put in a stock. In other words i 100 shares of everything we ha. So many common mistakes but one of the biest ones are the idea to diversify the it you d i have talked about diversify because it on 16 mutual funds but they are all largecap growth funds. When the p goes down, they get hammered. They bought last years products, but in fact in my book i write the nobrainer portfolio. You can on three or four funds and you can have access to all of the stock market of the world and most of the bond market and soou are truly diversified. One country will do well, one country will do badly, you own it all. Charles i was a broker. My marching orders were getting money under management. It did not matter if somebody on a stock you call them, mr. Jones, the stock is up, send more money. We are not trying to diss the entire industry, but you have a family of funds, they are not that much different. Absolutely, theyre in the business of asset gathering. You go to a feeonly advisor who does not make a commission because one of the few things an investor can control is his cost. Morningstar has done a study and found only correlation for Fund Performance nothing to do with past performance but if you break them down by cost, the cheapest funds do the best, the cheapest to the worst. With the fund it is the opposite, pay less, get a better fund. Charles they can control behavior. We are hardwired to make mistakes. There is this whole are of Behavioral Finance that i find fascinating. If you think about this, we feel the pain of a loss much more strongly than the joy of a game. What people do is they dont sell the stocks that go down because they dont want to acknowledge it is a loser. The terrible tax planning, paying tax on the gains you are making, not getting deductions for the losses and you should be writing it longer and dumping the loser. Charles to be fair it is hard to grapple with the it we call pride and ego in the industry. Before i let you go, i just had an interview before you, a person had bias against the market begins a certain system, there are so many stopping from optimizing the amazing system called the stock market. I love my iphone, but do i buy the iphone at 500 . No. That is number one. Number two is if youre really wored about all of these things, insiders, this and that, on the whole market. If somebody is insider trading, who cares, you own the stock. Charles you were fantastic, great to see you. Still to come, a look at nnxt weeks market and what you need to keep an eye on because we are making your market after the break are nascar is about excitement. But tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. Charles next, a blueprints to get ready for the star charles next, a blueprints to charles traders are settling into a long weekend even though the market is closed on monday, it is a week chockfull of greeters. Our panel is back again with your marching orders area di. I know i nailed it. We want to bring in dan shafer. Since im giving you a hard time, lets talk about next we week, what are some of the important, critical things were oking at . Usually the day after labor day is one of the better ones. The money coming in. I think it will be the short lived. Charlebout this felt normal, no sense of panic at all area did you are absolutely right. The market starts to decline. I dont think itll be like 2008, 2009. It will be lower in the middle 2015. Charles a part of me is contrarian. People should know the term was created as a derogatory term. The conventional wisdom says fed tapering, the market down, i start to think maybe the experts are wrong. Speak a lot of it has to do with expectations. More of a shock or supply probably wouldve had a bigger effect on the market. It is so saturated now that maybe the reason why. September has too much for us to predict where it is going to go. There is syria, other economic data. Six of one, half a dozen of another. It is hard to tell. Charles and we judge from the reaction of the street when all the stuff happens. Since we are, if you invest in september 1, every single year since 1930 and sold out september 30, 1 would have dropped. September stinks three out of four years it was okay. I expect continued slow deterioration. I believe everything he said was spot on. I do believe we will see a slowdown in the market, we saw ernie revisions down 3 last week, Investor Sentiment is down, lot of negative things we will see a crafty september. Charles the rest of the year. We have had a lot of crafty septembers. A whole lot of great november and december. Could we be set up for Something Like that scenario . If we see any kinds of positive stuff on the revenue numbers i think so. I dont see that forecasted so we will model along and maybe a little higher from here. Charles muddling along is one thing. When do we get nervous . Yes and pete gets under a certain number, is there a point a flag goes off in your operation . We look at a lot of data that goes into the art folios and i think it depends on the market you are looking at and a lot of different variables. Charles do you have a ranking like what is most important part of this component . We have a multilayered Risk Management process looking at shortterm and longerterm volatility measures of the market. It is a little bit complicated, i say i am the dumb one in the operations, but it basically looks at shortterm three to six month measures and longerterm measures to see if we go into or out of a position entirely. Charles here is the thing, have you seen it . Dan can take you back to 1708 when George Washington tripped over a roc and said two days later the market was down your chart and pretty right now. No, they are not. Charles have to give you some props up front. You said august would be really tough, you were right. How do we look now . We do not look good at all. Especially if you look at the close. Charles this is the island of misfit toys, this is us. My strategy is a look at stocks within 5 of the 52week highs. All of those stocks went through their 52week highs and cap going. We look for the momentum. Dollar tree is one. We look at them near the 52 week we screen them to see the earnings. Charles chasing stocks this year has been a marvelous strategy. Almost every morning you see the stock with great news opening 3 higher. At the end of the day it is up 6 points more. Do you have a stock we can look at next week . I have a stock i owwith clients as well. It uses leverage on gold. If you buy it, you will make some money. Charles i looked at that nugget going across. If you areright this bad boy, you will make an absolute fortune. Where should a stop level be that the rally starts to fade . I dont know exactly because they just did a reverse. It will drive you crazy. Charles something could be extremely risky, right . It is extremely risky every moment of every day. Charles you live dangerously, that is why we love and and deal in debt in here is hes the seen preaching to the greedy he said . Wait for the jury see what happens. Wait just changed fierce that it is revolutionary ising tall to do not believe screen. Daily problem dash the only problem that sony try something they have a big lead the department with the samsung but it issconsistent execution but the last time they beat it exploded. Insiders are buying. Four to thousand shares they are putting their money where their mouth this. They will do very well 25 annual growth every year for the next five years. The answer to the quiz from the house cool is this city it is strategically located at pentagon city. Epicenter of the pitcher is the trump ocean hotel and condos the first to open outside of america when of the largest in latin america and of course, it epitomizes strategically located. Have you ever heard of the panama canal . A major upgrade and expansion could be completed next year and will be on the front page of every newspaper. A lot as business psychos to lay amigos through panama city. Although standard to email me the answer this morning. I will go after my stocks from this week taser, Goodyear Tire of a you know, the market. Believe in yourself. Have a grea. The willis report returns on tuesday. Lori good evening. I am Lorre Rothman in for lou dobbs. The administration seriously selling its best case for selling military force against syria as it seems more likely that any action will be unilateral. The president speaks out telling a lot war fatigue American Public he has not made a final decision but the president says he is considering limiting a narrow intervention in response to what is clear evidence of syrias demand carried out a deadly chemical weapons attack last week