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NOT THAT UNCERTAINTY @AHAc@Sx
MoUT DOWN THE ECONOMY.
IS GOING TO BE THERE, BUT I
THINK PEOPLE ARE GIVINGBITV IT 1
MUCH WEIGHT.
>> NICE TO HAVE OPTIMISM ON
THURSDAY.
JIM PAULSEN JOINING US FROM
WELLS CAPITAL MANAGEMENT.
TIME TO TURNdIOKGVLunch Money T.
JULIE,BITV WHAT WERE YOU WATCHI?
>> I AM LOOKING AT THE CORPORATE
COOL DOWN.
YOUILL TALK ABOUT WHERELunch My
SHOULD PERHAPSBITV BE PUTTING YR
MONEY.
@Ad@Z Lunch MoneyBITVLunch Money
>>BITV HEADLINES WE ARE TRACKING
THIS HOUR.
IN BONDS, LET'S START WITH THE
yeVERNMENT SIDE.
REPORTS THAT WASHINGTON ISBITV
DISCUSSING WAYS TO AVERT THE
FISCAL CLIFF HAVE SENT TREASU@A
INTOLunch TMoHEne NyARROWEST RL
YEAR.
TURNINGBITV TO CORPORATE, J.C.
PENNEY MAY NOT MAKE IT PAST
CHRISTMAS, 2014.
es IS USING UP CASH ON LuITncSho
s.
reTUhaRNt'ARs OUdrNDiv PinLAN Td
et
BIPRODUCE RESULTgIS.OK
ITS COST TO BORROW IS SURGING.
ne TyOP STORY FOR BONDS TBIODTV,
CORPORATE PULLDOWN.
BOND BUYERS LOVE AFFAIR WITH
CORPORATE DEBT HAS GENERATED THE
BIGGEST RETURN SINCE 2009.
IT IS NOW@Ag@x Lunch Money SHOWF
COOLING.
ET OF HOLDINGSLunch Money
TV FAVOR OF GOVERNMENT BONDS.
INTERESTINGIS AN
PHENOMENON.
FOR A WHILE NOW,Lunch Money WE D
INVESTORS SAY WEBITV ARE NOT GEG
THE YIELD ON THE GOVERNMENT
SIDE, SO WE ARE GOING TO TURN TO
THE CORPORATE SIDE.
WHY YOU THINK THAT MAY BE
STARTING@Ah@Z TO SHIFT?
Lunch Money>> MULTIPLE FACTORS.
úVTVYIELDS HAVE COME DOWN.
THEY ARE NOT WHAT THEY WERE A
YEAR AGO OR TWO YEARS AGO.
COMPANIESLunch Mone yARE REISSU,
BITVREFINANCING OF RECORD LEVELO
YOU'RE NOT GETTING THE YIELD
MoPORTUNITY THAT YOU WERE
ne
COMPARED TO STOCKS.
TVUPLE THOSE TOGETHER AND LOOK
FORWARD.
WHEN WE GET OVER THE FISCAL
x IFF AND THINGS ARE GETTING
BETTER, ALL OF A SUDDENLunch MoU
1IGHT ACTUALLY SEE BONDBITV PRIS
SELL-OFF EVEN MORE.
WHY NOT SELL IT NOW BEFORE THE
inAR AND, CAPTURE THE TAX GAINS'
g
maANrkD etA s LOatWE mR idRAdaT.
>> I HAD SOMEONE SAY TO ME
RECENTLY THAT STOCKS ARE THE NEW
BONDS.
ye OTHER WORDS, IF YOU'LuREnc
LOOKING FOR YIELDS, GOBITV INTO
DIVIDEND PAYING STOCKS.
>> I THINK A LOT OF IT IS JUST
ALLOCATION RIGHT NOW.
MoOPLE AREiIOKYV SAYING THE@Ai@E
OF MY PORTFOLIO HAS DONE REALLY
WELL, I NEED TO TAKEBITV SOME OE
TABLE.
SAYING, WE'RE NOT
GOING TO GET ALunch Money 7% REV
BONDS WHEN THE INTEREST RATE IS
1.4% FOR THE NEXT 10 YEARS.
GROWTH BACK IN THEGETBITV
STOCK MARKET, WHICH WE THINK WE
ARE GOING TO GET, THE DIVIDEND
@ASi@TOx CKS ARE NOT GOING TO DS
TVLuLLnch Money.
EáDP501>> WHERE DOES THE FISCALF
FIT INTO ALL OF THIS?
>> UNCERTAINTY.
BOND INVESTORS ARE ULuNCncERh Ty
THEY WANT TO CAPTUREBITV GAINS
RAINOUT.
IF THEY SEE UNCERTAINTY DOWN THE
, THEY TAKE THE GAME.
jI
THERE IS TOO MUCHBITV UNCERTAINN
THE BOND MARKET RIGHT NOW,
ESPECIALLY WITH CREDIT RATE RISK
AN@AD j@INZ TEREST-RATE RISK ONF
yHLuATnc.h
YOU DO NOT WANT TO GET CAUGHT.
>> WHAT ARE YOU DOINGBITV ON FI-
INCOME?
>> WE ARE STAYING SHORT IN
CREDITS THAT WE KNOW.
iv CANNOT FIND GOOD CREDITSLunca
l ANmaYMrkORetE.s
etYO. U'N'w'RE BETTER OFBIF TVSD
WAITING.
neTABILIZES AND WELu
SEE GDP GROWTH GO OF A COUPLE
PERCENTAGEBI PTVOINTS, BOND PRIS
WILL RISE.
>> HERE IS WHAT YOU NEED TO KNOW
j@ THE FIXED-INCOME SIDE.
x
IN CASH THAN WOULDBITV RATHER 1
LONGER-TERM BONDS.
KEEP IT SHORT DURATION.
IF YOU'RE GOING TO BE IN
CORPORATE BONDS, KEEP ITLunch MT
AND HIGH QUALITY.
TVTHAT THE THE FOUR BONDS.
DOMINICK, WHAT IS GOING ON WITH
KVOPTIONS?
ne BIG BOX BLUES.
y
BILMART DISAPPOINTED WITH ITS
TV
EARNINGS FORECAST, BUT DOES THE
MARKET SEA HOLIDAY CHEER FOR THE
STOCK?
@Ak@Z Lunch MoneyBITVLunch MoneV
>> WELCOMELunch Money BACK.
TRACKING TODAY'S BITVTOP
HEADLINES IN OPTIONS.
Z RST UP IS YAHOO!
ACTIVITY AND OPTIONS IS BULLISHy
AFTER THEBITV CEO'S TURNAROUND
STRATEGY WAS ANNOUNCED.
nIOKkVNEXT UP, DEL.
THE COMPANY SET TO REPORT
EARNINGS TODAYLunch AMoFTneERy.
THEREBITV IS INTERESTING ACTIOND
LONG-TERM DATA HERE.
CURRENTLYMoneyBITVEá DDPEL50L,1
TRADING RIGHT AROUND $10.
etNeTOwsRY/B, usA inBIesGs. All
BIBLTVUES.
WALMART POSTING LACKLUSTER
EARNINGS FORECAST TODAY.
DOES THE MARKET THINK THERE IS
POSSIBLY A GOOD HOLIDAY PLAY?
neT'S GO TO THE EXPERTS.
y
TBIIMTV TRAVIS OF TNT CAPITAL.
LET'S TALK ABOUT WALMART.
THE BIGGEST DECLINER IN@Ao@Z TF
Lunch MoneyPOINTS OFF THE DOW JV
INDUSTRIAL AVERAGE TODAY.
WHAT EXACTLY IS THE VIEW ON
WALMART AND WHY DOES IT HAVE
MoTROKADdVERS' ATTENTION TODAY?
ne
>> THE STOCKBITV PAYS A NICE
DIVIDEND, ABOUT TWO 0.2%.
h E COMPANY IS OPERATING WELL.
Mo
THEY'RE FOCUSING ON ABI
NEIGHBORHOOD CONCEPT --
NEIGHBORHOOD MARKET CONCEPT.
neWOULD NOT BE A@Ao@x HUGE FIRu
THESE LEVELS.
WALMART, THEIRATBITVEáDP501
EARNINGS FORECAST MISSED SOME
ANALYSTS ESTIMATES, BUT THERE IS
A TRADE TO BELunch Money MADE, N
OPPORTUNITY TO ENHANCEBITV RETUS
IF YOU ALREADY OWN THE STOCK.
TALK ABOUT YOUR STRATEGY THERE.
ye THIS STRATEGY WE WOULD USE Lc
STILL JANUARY 2BI0TTVH 14 $70 C.
WHAT THAT DOES IS GENERATE ABOUT
6%@Ap@Z Lunch Money OF INCOME OM
RISK.
PLUS, YOUpI'O']'RE SBITITVLL GEE
2.2% DIVIDEND.
BECAUSE WE'RE NOT THAT BULLISH
dr THE STOCK AT THESELunch Mones
iv
etEL THAg T thISe Ama GrkOOetDa
.
PEOPLEBITV THAT WANT TO PROTECT
THEIR POSITION THAT THEY CAN DO
SO.
ABOUT COVEREDING
CALLS.
IFLu YncOUh AMoLRneEAyDY OWN WU
ARBIETV SELLING SOMEBODY THE RIT
TO BUY THAT STOCK FROM YOU AT A
HIGHER PRICE IN THE FUTURE.
>> RIGHT.
h YOU'RE LOOKING@Ap@x IN JANUY
Mo
2014.e
TVAT IS A FULL YEAR PLUS OUT
EáOM WHERE WE ARE RIGHT NOW.
DP
ANY REASON YOU THINK WALMART CAN
I GO BEYOND 70 -- CANNOT GO
$70 BY 2014?YONDBITV
>> I THINK IT CAN, BUT NOT
MATERIALLY HIGHER.
STRATEGYeyYOUR IS GOOD DOING TV
OK YOU WOULD HAVE BEEN JUST
VV
BEING LONG ON THE STOCK.
I FEEL LIKE IT IS A SAFER WAY TO
PLAY IT.
I AM@Aq@Z NOT THAT BULLILuSHncy
CONSUMER GOING INTO 2013.
BITVI HAVE LEGITIMATE CONCERNS N
THAT AREA.
THAT IS WHY I AM PLAYING IT VERY
CONSERVATIVELY IF I WERE TO PLAY
yeLMART AT THESE LEVELS.
>> YOU ARE NOT AS BULLISH ONBITE
CONSUMERS AS SOME OF THE OTHER
ANALYSTS OUT THERE.
HOW ARE YOU ADVISING CLIENTS
ABOUT HOW TO PLAY THE DOWNSIDE
IF ANY GOILuNGnc Ih NTMoO neNEy?
>> I THINK YOU HAVBIETV TO BE AL
STOCK PICKER RIGHT NOW.
I AM STAYING AWAY FROM ANYTHING
THAT IS HIGHLY RELIANT ON GLOBAL
@AOWTH.
I'M A LOT MORE BELuARncISh H MoE
OVERALL ECONOMY AND CONSUMERBITV
SPENDING THAN EáMODPST501 PEOPLE
PROBABLY.
>> GOTCHA.
THANK YOU FOR THE HELP ON THAT.
inAT IS TIMLunch Mone yTRAVISNes
y PITAg L.th
on
VALUATION ISEw.ANWHILEBITV,
STRETCHED ArIT OKWAOVL-MART.
IF YOU ARE LOOKING TOLu GncETh y
THE STOCK, HE SAYS WEIGHT.
BIBUTVT IF YOU OWN IT, HE SUGGES
SELLING THE JANUARY 2014 COVERED
CALL OPTION.
TH@AATr@ DZ OES IT FOR THELu OnF
DATE.
>> WHEN WE COME BACK, OUR LUNCH
MONEY SNACK PACK.
WE WILL BREAK INTO IT, SO STAY
TUNED.