Lori stocks are up again five weeks in a row what a week it was one of the biggest Money Managers stephen suffer a spectacular fa his hedge fund hit with criminal Insider Trading charges am pleading not guilty today. But will the case hurt Investor Confidence . It is cheating the only way to make big bucks . Lets bring in the man that millionaires invest their money with. Good to see you, ed. I thank you for having me lori what is your take on the message sent tsec capital . What about the perctage returns outpacing the broad market averages to push the rules a little bit or a lot . You said the word allegedly because nothing has been proven there are allegations out the i guarantee there will be a vigorous defense coming in there is a lot in the indictment and people assume it is correct but absolutely not. There are great Hedge Fund Managers and i in the business 27 years and it is not easy to get great returns because it is in but if you just compound your money then history says he wi earn tders will in the stock market over a period of time. Lori but the tally on case and he is behind case right now behind bars right now but to his case innocent until Proven Guilty but overall has the me 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 maners even though ere are uniqu 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 . How much should be comprised . Hee funds, priva equity . I will make it simple there was a study done what is the best mix to have . Of the publiy traded investments with the best return was the least amount of risk. 87 went into henchmans if you ask for the best us or how much money we typically put 20 or 25 percent of our money i those rtfolios withnvestment with the non correlation and did you will find the hedge Fund Managed Futures th 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 stock saugh a couple years of the other alternative investments. My hair is gray for a reasonhese are only some investments based on the positive economic condition the moment that changes everything goes down together. So i alway have things that are not doing well. So you say whewill that switch . You should always have many in alternates are in the equity markets as we because you just never know. Lori the grey hair is very distinguished loing for you. 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 clients . No question. Everybodis out to tarnish every betty and even with our side of the business 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 alletions e true there will be some tth to this and then you know, the bad it will happen in bet indivials dont want to be around bad 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. From the university of maryland. What was yr ta . People look at it as a lagging indicator how we were feeling a couple months ago but that 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 tere 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 nine months they have been cut in half next week we will find out the economy over the last three quarters and that is not very good at all. Lori s do you think there is any potential under that growth rate . Is thi the new normal . No. Most economists do see things picki up in the second half. U. S. Economy has enormous potential. Looked at the rate of productivity growth in manufacturing. Do need to deal the currcy proems 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 cment that was quite critical. His record is a very good and his policies are about dividing up the pie as opposed to making a bigger this administration is flat out of ideas a 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. Of a bike to see us get very aggressive with cna on the currency. In to bring down the value of the market is a great idea. But then look at that and that is the incentive to cheat even more. You 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 mexico we should hold regulations with the efficacy test. Lori a also byur treasuries. It is such a tense retionship and i am glad it went in that direction. Thank you. A t still to come including adve on awkward many moments to splitting the check at a restaurant and di yo know you are probably spending hundreds of dollars a year on nothing . Take aook at a new rash of grave charges hit to your wallet. The boys used double miles from their capital one venture card to fly home for the big family reunion. You must be garths father . Hello. Mother. Mother traveling is easy with the venture card because you can fly any airline anytime. Two words. Double miles this guy can act. Wanna play dodgrock . Oh, you guys and with doub mes you can actuay use, you never miss the fu beard growing contest and go win whats in your wallet . Lori new report says americans lose billions of dollars every year to their credit card 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 you put together a list of the most common 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 you have signed up for a trial membership if you dont cancel it within a few weeks 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 have achieved cancellation . Exactly. That is the problem with 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 finallyy we want you have to say no thanks and those things to cross sell and at south bend you may have thought this collect along the wa theye the something on your credit card you did not want to bubuy. Also of a renewal. This is if you purchased the domain name and on the rester for one yearhen after that i ddnt what it but then you will sta to see that hits the credit card again. Lori is any of this illegal . The milliondollar question. It is arguably unethical in some thinking is illegal but some to the companies were nailed with se hefty fines but underscores the importance of you ian me to become more engaged with our credit card statements to understand what 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 . Xactly right. Ere is a strategy behind the amount to between 10 and 20 it is large enough 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 lookingat your statement and there are services 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 mo to make sure you are not speing more. These are freeeservices it is a second and tear of defense. Lori what about t 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 th fines will be impressive so they want to keep it lowkey theyre very willing to credit you back if you fin someone who will answethe phone to listen of your challenges but remember youllave objections from the creditcard issuer to say i dont authorize that charge you dont always have to argue with the merchandiser data wod to be involved either. Lori news that you can use. 14 billion each year. One of the side effects of the recovering Housing Market is the return of t house a slap. We have details. How you get through those awkward many moments . Next. This man is about to be the millionth customer. Would you mind if i go ahead of you . Instead we had someone go ahead of him and win fiy thousand dollars. Congratulations you are our one millionth customer nobody likes to miss out. Thats why ally treats al their customers the sa. Whether youre the first or the millionth. If your bank doesnt think youre special anymore, you need an ally. Ally ban your money needs an ally. Its delicious. So now weve turned her toffee into a business. My goal was to take andea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. Never really thought iou make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. Lori we have all experienced those uncomforble many moments whether splitting the bill at dinner are having a close frnd asked for many favors it is hard to about gracefully but it can be done you will never feel it again. Th the director of consumerducation at credit. Com what do you say is the biggest money embarrassment . I informally polled people certainly having a friend or familyember asking for loan, getting hit up r 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 of all, if you are not willing to make it a gift do not 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 ha been burnedn the past was just put it in writingo were on the same page if theyre no 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 . He 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 you have to hand. You have faith sister or brother constantly asking you for 20 not a big amount of money but if that is getting on your nerves . It can happen with the of coworker who forgets their wallets every time at the lunch counter sought 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 charit you are involved to be asked a lot a and we cannot donate to every cause that we care about. You may wa 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 b somebody says i am walking 60 miles for Breast Cancer you will support them but also select wonder to charities you can say these of the charities i supporting this year she had a personal story period there really made me respect why she was supporting that charity that year instead of others. Lori great advice. Thank you. Though it is a time for the stories you are looking at fox business. Keeping the markets incheck the last minute turn helped to but traders are looking ahead to a packed schedule including the monthly jobs report the Federal Reserve meeting and you should not expected to name soon the president will not name ben bnanke 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 prices 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 research to lois level since 2019 years after the launch of te first by phone. Those are the hot stories on fox 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. The pursuit of a better life for our childrens something we all share. But who can help prepare them for the opportunities ahead . Who can show them how to build on yousuccess, but not rely on it. Wwho can focus on making yourd onlegacy last, for generations to come . That someone is a Morgan Stanley financial advisor. 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 at your authorized mercedesbenz dealer. But hurry, offers end july 31st. 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 market i showing siggs and eerts say flipping a home could boost your bottom line. I will bring in our real estate expert, and race to see you is it really back . It is. Everyone aund me is clipping 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 institutional buyers to buy hureds of homes we see the low interest environment up until recently they have staaed low. Lori will that change . That is the one variable in looks like it is here to ay that a lot 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 wer doing to get in that busiss. But a lot of people do get hurt. Lori so lets talk about the pitfalls a into the red flags. If you buy the home from the big remember the previous homeowner could not make his mortgage payments so too does are the houses and not 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 inspeion to make sure you understand what is wrong with of home understand we can sell it because you could buy it it for cash which is keeping also make sure by ears need the appraisal to make sure that you can sell it if we hear flippe earning 20 grand . It is possie t if you get into theusiness 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 Price that may not include profit depending on how much to put into the home. Lori how long should you expect . Most that do it with the hard money lenders that are set my pfessional 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 becau 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 50,000er year moving to this daynd this 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 a 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 list. 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 ye so where are the worst places to retire . Tennesseand louisiana. When we come back a florida teacher fired for putti on a fire. Find out why parents you are paying more for School Supplies this year. How much . And next. Lori at time of year as we refuse to an acknowledged backtoschool season but moms and dads are dishing out hundred of dollars of School Supplies and ifhis seems like you were spending more than usual, you are. Welcome. Estimates are putting backtohool 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 those members. Lori are we including technogy . My kids are a little like crayons and pencils not computers or ipads. The new books is not going up but it is the technology in theegadgets that all the kids are wanting more and more. So 1200 and another is 600. Lori ut it is still the backpackg index that you put tother that is far outpacing inflation and 7. 3 podium inflation rate is below 2 . The backpackndex was put together by someone ese but most driven by technology allow the school distris are hurting and teachers are passing the burden for supplies back to the kids a the parents that the school traditionally provided. Lori doesnt matter where you shop . 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 could add up. Lori you putit of list of ideal credit cards can you give me some examples . Absolutely. In there at the highest point. So the parents can bring do 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 Department Stores from american express. And for the parents better Small Business owners they can use the american expxpress card or the car 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 is hard to swallow. Forget the cost. Figure for having me. Lori a day ca teacher is fired for putting out a fire. The school said she left the kids alone it is not the hacke who wa your reformation but the fed is going after your password. [ villain ] well mr. Baldwin. It appears our journey has come to a delightful end. Then i better use the capital one purcse eraser to redeem my ventureiles for this trip. Purchase eraser . Its the easy way to era any recent travel expense. I just pick a charge, like my flight with a few taps, its taken care of. Impressive baldwin. Does it work for hotels . Absolutely thank goodness. Mrs. Villain and i are planning our. You scare me. And i like it. Lets go ats in your wallet . Help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energyompany. I can tell you safety is at the hearof everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activitywentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our mmitment has never been stronger. Me. Lori u. S. Government has reportedly demanded Major Internet Companies direful to the ur 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 Companies like microsoft a and googles and facebook for passwords according to one websites that quotes to sources cnet gives an even worse scenario from Edward Snowden that said he is disclosing information that gives feral government access to googles and facebook and other major providers. The companies have strenuously devout deny they have given this access but theyre not saying if the government has actually asked for that password informion and now if it is able to determine a persons password that is normally in corrected that could be used to lo sought log onto the account or set up the correspondence or impersonate the user some details are not clear including when and at th request bbn and if it is targeted at individuals or is the entire database dumped . Palace section to do 15 does allow themo get private information that is what these two data mind of those calls and senators 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 attacked 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 w abiding citizens is essentially limitless under the law. Know if that comny has been accessing your password is set to the Internet Company to fight to win your belf 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 . Privacy is so in question in. One day care teacr is claiming she was fired for putting out a nearby fire to save their lives by her boss said she broke a safety rule 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 les discriminatory should have to bring the case 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 this 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 sleepin 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 at will situation but you need to have these in place you cannot have anyby doing vigilante work you are a teacher. Get the kids out. Lori but it is a panic situation. But if children were burned to think she would be held accountable for that. This is why the standards in the workplace dont always match with what needto happen and there should be a breach of Public Policy or the exception someone like this would be quened in no matter what either way but to say those who are caring for our childre and doing a good job should not be penalized to step outo protect them. Lori i do thin this is regina . Tting. Data know why she would want to go back to begin with but the person who burns the Chicken Nuggets should have been fired tt is what caused the problem. Government overlooking the actual cause been going to someone else. This could be set by someone who ied to kidnap a child. You just dont know it will be interesting how this will play out in court. Lori you haveo trust the teacher there put in the classroom and in charge of the studentsso with her staff judgmen 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 ultimately is should she be penalized for sticking her neek out . Will ultimately the legislature or the judge ruling to have the fortitude to rcognize the cause of action could correct that but this is a shame. And also the department of education is doing instigions may be something can be done. Lori it is not over. My mother made the best toffee in the world. 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 thugh legalzoom. Never really thought i would make money doing what i love. [ robert ] we created legalzoom help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. Are you flo . Yes. Is this the thing you gave my husband . Well, yeah, yes. The name your price tool. You tell us the price you want to pay, and we give you a range of options to choose from. Careful, though that kind of power can go to your head. That explains a lot. Yo, buddy i got this. Gimme one, gimme one, gimme one the power of the name your price tool. Only from progressive. Prosecutors a large volume of evidence including emails, wiretaps, and other reporting just act against sac visors. The fund pled not guilty to you care if your money manager is bending thrules to give y a higher return . We ask this on gerriwillis. Com. 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 prer for their own biness. 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 before he or she is 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 inhe fantastic weekend. Good evening everybody. Thank you for being with us. President obama today talked about job creation and the economy for the 12th time since he took office back in 2009. Leaving many to ask the question, why now . The president himself answered the question in a candid and frank manner in a speech designed to change the conversation. President obama took a clear shot at republicans who continue to pursue the truth regarding the numerous scandals currently engulfing his administration. But with this dless pprade of distractionsnddpolitical postur