Busy. Bank of japan is scheduled to change everything. Ill get you that in a bit. Private joke. Also on todays program weve not learned our lesson yet you say. Are americans really using their homes as atm machines once again . With housing prices on the rise, are so many home equity line numbers starting to move higher again . I mean, we have some startling figures on how many people are starting to open those equity lines of credit again and what they are doing with it. Brings us back to the danger days of the crisis, and when you have 20 billion in the bank do you really care about dropping 2 billion to buy a new toy . Cash. Whats behind former microsoft Steve Ballmers stunning 2 billion deal for the l. A. Clippers. Everyone is talking about it. Why billionaires with money to burn are changing everything when it comes to valuing sports franchises. You have a different take on it. I do. I think these franchises are going up in value. Ill fight it out with robert frank, but, first, the markets on this final trading day of may. Pretty flattishch the Dow Jones Industrial average, not moving a whole lot. Still close to alltime high. Down 15 points, and the nasdaq, the outperformer for the month of may, up almost 3 and under a little selling pressure and the s p is positive and flipping around all day long, bill. Remember, any positive close for the s p will be another new alltime high. Fifth in the last six trading sessions if memory serves. Lets talk about in the Closing Bell Exchange for this friday. Dine jaffe from galileo dividend. Focus fund is with us today. People all over the place on the floor. Hank smith, as we talk ad nauseum about the low yields on the tenyear these days, who is buying the tenyear right now. You say thats the ultimate fear trade that they dont have enough, what, faith in the growth in the u. S. Economy right now. Is that the idea . Well, thats right, bill. Almost by definition. If youre buying a bond today, youre not exhibiting confidence. Youre not exhibiting exuberance. Not exhibiting greed. Youre exhibiting anxiety, fear, skepticism and those arent hallmarks of a bull market top so from a sentiment standpoint i think the market is set up very, very well. Theres still a ton of anxiety, a ton of skepticism, a ton of fear, and that is good for bull markets. Bruce, i want to ask you about that. I mean, are you getting mixed signals from the bond market and from the stock market . Im looking at the dow transports, for instance. Right. Certainly outperforming. Thats signalling a very positive view of u. S. Positive growth. How do you explain whats happening with the dow and the tenyear yields . Thats a very interesting sector because of the need for the movement of goods and materials and as Commodity Prices have come down over the past 18 months, you know, the volumes have kicked up, so thats been really positive for that sector. I think that overall i agree with the previous speakers assessment of uncertainty. I think theres a lot of kind of risk out there which people are simply unaware of and are taking unintended risks in their portfolios, and we believe that we really need to understand other types of risks that are inherit in these businesses such as Environmental Impact risk, labor costs and stakeholder options, and thats very prevalent in the transport sector where you really need to have boots on the ground where your relationships are really strong in order to get contractor transports. Im looking at the list of ten sectors in the s p 500. Nine of them are positive for the month of month of may. Utility is the only one that was downch the best performer was telecon. Diane, you Like Health Care and industrials. Health care this month, up 2. 5 and industrials up 1. 5 . Theres still juice in those lemons, you say . Absolutely. I think that industrials have showed real organic growth, even a very dismal First Quarter. 2 plus, and i think theres more to come, and in terms of health care. Even though theres a lot of give and take and whats going to be successful in the long run, theres no denying more and more people are signed on for the Affordable Care act and obamacare. Now do you say in the notes here that the u. S. Is looking increasingly expensive . Are you talking about the stock market or the bond market . I think the bond market. Matt, go ahead. The stock market. Most americans have way too much in u. S. Stocks. We recommend that they have at least 50 of their equity portfolio in foreign stocks, but specifically the cheapest marks like russia, brazil, almost all of europe. Our new global value etf goes further and buys the cheapest stocks within those countries by valuation but also returning cash to shareholders through dividends. So youre not afraid of risk right now, is that the idea . We are. Were always afraid of risk but we think the risk is overpaying and a lot of these countries are what we consider to be generational secular lows in valuations, many of them trading at single digit pe ratios. Rick santelli, the show stopper of the month had to be the bond market. Treasuries on track for their best month since back in january. This caught a lot of people by surprise. Yeah. I dont really know why they are surprised. I think, you know, the treasury market is the hedge that keeps on giving. Just imagine if in january you would have bought stocks and thought to yourself, what if stocks go down as they did in the beginning of the year . What can i buy that would offset those losses . How about treasuries . Well, if you would have bought both, out actually be up now. The weak link, the equity markets, are finally catching up to the strong 2014 trade in treasuries, but i think thats a dynamic that investors should stick with. It seems very odd to me that most who talk think that they are mutually exclusive. You can only be long one or the oh, and ill tell you what, pay very close attention thursday to the ecb meeting. I think it will trump friday and wednesdays Employment Data because when a central bank is giving so much attention to the fact that we need new stimulus, after a crisis, after 2013 was all about european stabilization, i think theres a bit of worry beads that need to come out at this point. I was going to ask you about that. What do you think how do you think the markets will respond . Everybody is talking about the fact that they expect mario draghi to cut rates on thursday. Is that already in our bond market . If not, what do you think they will do once the announcement comes out . I personally dont think a lot is built into the market . Its very hard to decide what a bunch of technocrats and bureaucrats and central bakers are going to do. Theres no way to predict, but i will tell you this. I think if they do something. Boy oh, boy, i would watch out. I would think the message that that would sent at this point would be an equity negative and a fixed income positive. Thats my own opinion. It will be the ecb and the jobs report looking for a soiled 200,000 around level when it comes to jobs, what is your read on the economy right now. Weve had a bunch of mixed data. I mean, just saying today we did see a decline in personal spending coming off of a negative 1 quarter in gdp . I think were going to get a bounce in the Second Quarter off of an obviously poor First Quarter that was mostly weather related, but for the year it is stubbornly slow as usual. This economy is stuck in a below average world of call it 2, 2. 25 , and theres good news there. Thats not enough growth to create any traditional excesses in the labor market or inventories, but the sad news is its not enough growth to do a big dent in the labor markets and the participation rate, so but i think we can have several years of this 2 , 2. 25 growth, and that in the equity markets can perform in this environment. Im curious, youre looking at the outlying European Countries for value right now, but if the ecb cuts rates next week, what does that do to value . Great question. I wish i knew, but part of the margin of safety of buying countries that are this cheap, some of these companies are trading at 2, 3, 5, 8, 10, pe ratios, you have that built in margin of safety. Most of the bad news is priced in already. We think theres a lot of upside in these foreign countries. All right. We will see. Everybody, thank you. Appreciate your thoughts. Have a good weekend. Thank you. See you later. Same to you. We head towards the month of june right now. Weve got 41 minutes. You do the math. 14 minutes left in the trading session for the month of may right now. A mixed picture today. The dow is down ten points but the s p is still fractionally higher right now. Well be watching the major indices to see how it all shakes out. Main Street Investors make of what weve seen during the month, how are they setting up and where are they putting their money in the month of june in our end of month investor retail round table coming up. Always enjoy talking to them. Apple surging ever since it unveiled earnings. A stock buy back increase and its 7 for 1 stock split, by the way, that was announced next month and announced next month. Were asking the pros if that move stems more from Financial Engineering versus cool new products. We have a debate on apple coming up. And a cool new acquisition. And also up next, remember the days when tapping Home Equity Loans was as easy as getting money out of atms. An industry newsletter says it may be happening all over again. They had a big uhoh. Stay tuned for that conversation. Okay, listen up im reworkin the menu. Mayo . Corn dogs . You are so outta here aah [ female announcer ] the complete balanced nutrition of greattasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®. Nutrition in charge™. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Mayo . Corn dogs . You are so outta here aah [ female announcer ] the complete balanced nutrition of greattasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®. Nutrition in charge™. So instead of putting their money to work, homeowners are actually putting their houses to work. Again. Yeah, again. Use of home equity lines of credit jumping 8 in the First Quarter. It is hitting the highest level since, you said it, 2009. Lets talk about it. Of course, its happening when the Housing Market came crashing do down. Should we be worried about this, snebz cnbc contributors dolly lenz and herb greenberg. Have we learned nothing . Is this the way its supposed to be, as value goes up people should tap that value had. It all depends on what we do with the money. Home is biggie bank. The piggy bank effect is fine if we do the proper things with money, do things to improve the value of the home, so in fact its just a double plus for our house and if we take the money and going on vacation an taking the money and buying a new car, if were taking the money and buying something that depreciates its very problematic. I wonder, herb, from your perspective how healthy all of this is and what level you can borrow and how you use it . I think the banks have clamped down what level you can borrow at. I dont think you can go 100 or over 100 anymore. Which is what we were seeing. Right. And what dolly said. Putting roof on the house, a good use of money, and i was on air debating someone about it and you worry when you see it go up like that that people are taking money and buying stocks and that, of course, the worst thing you can do with a Home Equity Loan for the average guy, i suspect, or almost anybody, but i think its a sign, look, its a sign people in many markets prices have gone high, and do they have that equity margin in their homes . Thats what we want to find out exactly. Coming in just today. I heard a commercial on the radio, i thought what year is this . It was for a seminar on how to flip houses. Right. At 3 00 a. M. Theres a show going on. Were back to 2007 all over again. Guess they are going to buy them from blackstone and flip them. Im not sure who the sellers are at this point. And they said flip it with somebody elses money. And it was all the buzzwords used years ago. With rewe repoeting history ag . Its possible and we have to be careful. The banks are obviously bullish on real estate that they are making the loans. If they didnt think the trajectory of the markets was up they wouldnt get burned again the way they did last time so thats really good news and the other good news is i think the borrowers are also bullish and that credit is loosening so all these things are positive, and i really want to look at the positive but be cautious. You know, everybody really has to act responsibly. They have to act responsibly when they drink, act responsibly. Borrowing against the home. And i wonder, dolly, whether prices are going up fast enough. They are in new york city, right . They are in new york city. For the rest of the country. And they are only permitting 80 financing so its not the 100, 110, 120, 130 that it was before and even though 80 say lot, it still keeps some cap on the story and gives you some cushion. I want to say one other thing. Southern california, thats another belle weather in real estate. How are you guys doing out there right now . Southern california, theres theres less inventory than anyone would want to see so thats kept prices elevated, and its also led to a slower start throughout this year to the Housing Market, but there are plenty of people, including guys like mark hanson who is out there, and hes one of the housing gadflies of sorts who believes youre going to still see a fall here. Look, you cant get complacent, and you cant use this as saying were back to where we were and its only going to get better. Every market is different, but one thing dolly said, at least the banks are making money. The other question is are they starting to securitize them . Are they holding the loans . You know, you see you see dick garvosivic from wells fargo saying the lenders need the rules lesbianed a little bit of the start hearing that stuff. You start to get a little bit. Dodd frank does mandate that they need more skin in the game, the housing lenders, than they used to. Right. They couldnt completely bundle them up and sell them off. They have to keep some of them on their Balance Sheets right now. I think were so much better off than we were last time but i hope we did learn some of the lessons. In other words, were human. The other question is are they really are they accessible . Dont you need much better credit to qualify . Yes. Much better credit, the market, really look at the appraisals very carefully so i think were in a much better position than we were ever before, but i also think that the American Consumer can never be undervalued, okay . The American Consumer is going to find a way to spend that money, okay . And were going to find whether its a michael kors bag or a brand new mercedes, somehow that will be spent. Borrow responsibly is the message from dolly lenz. Thanks for joining us. Well have to see whats happening. Herb greenberg. Here we are, bill. 40 minutes. Close enough. And if you look at the major indices the dow is pretty much flat, down 11 points. S p, still in positive . A little bit. Just barely in positive territory so the calm end to an up month. It has been an up month. All the major averages have been higher this month. Up next, apple kicks off its closely watched Developers Conference next week. Well be watching that carefully. Is the tech giants rally over the past month being driven more by the coming 7 for 1 stock split or the anticipation of hot new products to be introduced next week . A couple of apple pros will talk with us about that coming up next. And later, is the Los Angeles Clippers really worth 2 billion . Does it even matter with billionaires with money to burn are bidding for the same team . That debate and much more later on on closing bell. If you have moderate to severe rheumatoid arthritis, like me, and youre talking to your rheumatologist about a biologic. This is humira. This is humira helping to relieve my pain. This is humira helping me lay the groundwork. This is humira helping to protect my joints from further damage. Doctors have been prescribing humira for ten years. Humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. Humira is proven to help relieve pain and stop further joint damage in many adults. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Take the next step. Talk to your doctor. This is humira at work. Keeping on eye on these markets. Watching the s p 500 watch these levels very carefully because were at a new record high. The close record is 1920. 03 and were going on Something Like 13 or 14 for the year of 2014. Five out of six days. And a 2 gain so far, it looks like, for the month of may for the s p 500. Courtney reagan, whats moving the markets today as we head into the weekend . Got a lot of movers today, bill. We begin with allergen on news that valiant has incre