Nightly Business Report (PBS) - 2006-12-01

Channel: malgent

Transcript

Language: English (original, YouTube automatic captions)

[0:00] shares.

[0:04] A strong late-day rally brings the Dow

[0:06] back from a triple-digit deficit to

[0:08] close it down just 27 points. Investors

[0:11] had bailed out on news suggesting the

[0:13] economy [music] might be shakier than

[0:14] first thought.

[0:16] Ford Motor lost its spot as the nation's

[0:18] number two automaker last month. Ford

[0:20] sales slammed into reverse in November,

[0:22] letting a rival get ahead of it on the

[0:24] list of the largest. We'll tell you who

[0:25] it is.

[0:27] Shares of Home Depot go through the roof

[0:29] on rumors the home improvement company

[0:31] may be the target of a takeover by two

[0:33] private equity firms. But not everyone

[0:35] is convinced that Depot deal would be a

[0:37] good idea.

[0:39] Tonight's Market Monitor guest says

[0:41] there's no other way to put it, the

[0:43] dollar has collapsed and that's bad news

[0:45] for [music] the US economy. He's John

[0:46] Murphy, chief technical analyst at

[0:48] stockcharts.com.

[0:51] I'm Paul Kangas. This is Nightly

[0:52] Business Report for Friday, December

[0:54] 1st.

[0:56] Nightly Business Report is made possible

[0:59] by

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[1:59] >> [music]

[2:01] >> Good evening everyone. December's

[2:03] trading on Wall Street got off to a

[2:05] volatile start on investor concerns

[2:07] about the health of the economy. The Dow

[2:09] closed down just 27 points after losing

[2:12] as much as 131 points earlier in the

[2:14] day. The NASDAQ fell 18. Investors

[2:17] unloaded stocks after a report showed a

[2:19] dramatic drop in activity in the US

[2:22] factory sector. As Erica Miller reports,

[2:24] the data is stirring up debate on what

[2:27] the Federal Reserve will do next to

[2:29] boost economic growth.

[2:31] Today's weak manufacturing data is more

[2:33] evidence to the bond market the Fed's

[2:35] next move will be a rate cut. The

[2:37] Institute for Supply Management said its

[2:39] index of manufacturing activity fell to

[2:41] 49.5% last month. It's the first time

[2:45] the sector has contracted since April

[2:47] 2003. Historically, when the ISM has

[2:50] fallen below 50, the Fed has started

[2:52] cutting rates. Today's data reinforced a

[2:54] recent rally in the bond market, which

[2:56] has sent yields on the 10-year note to

[2:57] their lowest level since January.

[3:00] What's driving prices higher these days

[3:01] is the view that the economy will

[3:03] continue to get weaker. We've seen

[3:05] growth around 2 and 1/2% for two

[3:07] quarters now ending in September. It

[3:09] looks like in the fourth quarter growth

[3:11] in the economy will be somewhere around

[3:13] 2% again. Right now bond market futures

[3:15] are pricing in 70% odds of a quarter

[3:18] point rate cut by the end of the first

[3:19] quarter of next year and 100% odds of a

[3:23] cut by May. What's happening is and this

[3:25] is natural within the bond market, there

[3:27] are those who want to get in front of

[3:28] and be early to the trade. So there's

[3:30] extrapolating and maybe pushing a little

[3:32] bit more than they should over the near

[3:33] term about the magnitude of this US

[3:36] economic deceleration. There seems to be

[3:39] a disconnect between the bond market and

[3:40] the Federal Reserve. On Tuesday Fed

[3:43] Chairman Ben Bernanke said he was

[3:44] concerned about core inflation leading

[3:46] many to predict the Fed might start

[3:48] raising interest rates again. But in the

[3:50] eyes of some bond strategists, the Fed

[3:52] is merely posturing. The Federal Reserve

[3:54] is talking tough, but they're not likely

[3:56] to to do more on the interest rate front

[3:58] in terms of raising interest rates. The

[3:59] Fed wants to be sure that inflation

[4:01] stays down. They're raising their

[4:03] credibility in doing so. Crescenzi says

[4:05] holiday spending will be a main driver

[4:07] of the bond market in the coming weeks.

[4:10] If spending is soft, he says it would

[4:12] reinforce the notion of a slowing

[4:13] economy and help support the rally in

[4:16] bonds.

[4:17] Erica Miller, Nightly Business Report,

[4:19] New York.

[4:21] It broadly lower this morning as those

[4:23] reports of a weakening economy raise

[4:24] investor fears of a hard landing. After

[4:27] 90 minutes of trading, the Dow was off

[4:29] 75 points and the Nasdaq down 25.

[4:32] A midday rally attempt failed partly

[4:34] because of another drop in the dollar,

[4:36] so the Dow tumbled to a 110 point loss

[4:38] at 3:00 p.m. In the final hour though,

[4:41] bargain hunters cut the losses

[4:42] considerably. The Dow Industrial Average

[4:44] closed off only 27.80 at 12,194.13

[4:48] today.

[4:49] This week it rose twice, fell three

[4:51] times, had a net decline of 86.04

[4:54] points. The Nasdaq Composite fell 18.56

[4:57] to 2413.21

[4:59] today. It also rose twice and fell three

[5:02] times this week for an overall loss of

[5:03] 47.05 points. The Standard & Poor's 500

[5:07] was down 3.92 ending at 1396.71

[5:11] today.

[5:12] In the bond market, the 10-year note

[5:14] gained 7/32 to 101 and 16/32, pushing

[5:17] the yield down to an 11-month low of

[5:20] 4.44%.

[5:25] >> [music]

[5:30] [music]

[5:34] [music]

[5:38] >> Car and truck sales for the nation's big

[5:40] auto makers came in lower than expected

[5:42] for November. Particularly hard was hit

[5:44] was Ford, which saw its sales slump by

[5:46] 10%. Sales for Ford were so poor that it

[5:50] lost its rank as the nation's second

[5:52] largest auto company. As Daren Gersh

[5:54] reports, experts say the competition

[5:56] will only get tougher in 2007.

[6:00] November was a tough month to be selling

[6:02] cars unless you happen to be selling

[6:04] Toyotas.

[6:05] Toyota overall sales were up 16%

[6:07] compared to last November and it was the

[6:09] only big auto maker to show strong car

[6:12] sales, up 14.3%.

[6:15] Toyota sold 15,000 more cars and trucks

[6:17] than Ford last month. It's the second

[6:19] time Toyota has edged ahead of Ford into

[6:22] second place behind GM. It was a

[6:24] knockout month for Toyota. Um I mean

[6:26] their sales were up about 16% and they

[6:29] continue to uh take market share and um

[6:33] continue to do very well. They're right

[6:35] now they're well positioned across their

[6:37] entire model lineup. Most people

[6:39] expected DaimlerChrysler sales to

[6:41] decline, but it surprised to the upside

[6:43] increasing sales 3%. GM came in on

[6:46] track. Company sales were up 6% largely

[6:49] due to strength in truck sales up almost

[6:51] 16%.

[6:53] The company calls it a solid month in an

[6:55] underperforming industry. We were helped

[6:57] by the fact that unlike the spring when

[6:59] gas prices and interest rates were

[7:01] dampening truck demand, truck demand has

[7:03] come back to more normal levels and that

[7:06] helps us because we're the world's

[7:07] largest truck manufacturer. We're number

[7:09] one and we have a very strong lineup on

[7:11] the truck side of the business.

[7:13] Meanwhile, Ford's results give a new

[7:15] meaning to the phrase Ford tough. Total

[7:17] sales were off 10% and truck sales

[7:20] skidded 13%.

[7:22] Ford called it a disappointing

[7:23] performance adding it expects its market

[7:26] share will be lower in 2007.

[7:28] An analyst agreed saying Ford was hit

[7:30] hardest in its most profitable big truck

[7:33] and SUV segment. All of which may

[7:35] explain why Ford is buying out almost

[7:38] half of its hourly workers. They're

[7:39] really cut to the bone here I think as

[7:41] far as

[7:43] uh hourly workforce. And that tells me

[7:45] that they're really preparing for hard

[7:47] uh sledding in the future. Looking

[7:49] ahead, analysts are waving the yellow

[7:51] flag, warning sales will be flat or even

[7:53] down slightly just as the competition

[7:55] picks up. Toyota and GM are each

[7:58] preparing to roll out a new full-size

[8:00] pickup. It's the beginning of a new

[8:02] sales war in what has been a very

[8:04] profitable segment. Darren Gersh,

[8:06] Nightly Business Report, Washington.

[8:15] >> [music]

[8:21] [music]

[8:25] [music]

[8:31] [music]

[8:34] >> There's talk on Wall Street today that

[8:36] Home Depot may be the next company in

[8:38] line to be bought by a private equity

[8:40] firm. The rumor mill is speculating that

[8:42] Kohlberg Kravis Roberts and Texas

[8:44] Pacific Group may be eyeing the home

[8:46] improvement retailer, and that the price

[8:48] tag could be as high as $100 billion.

[8:51] That would make it the largest leveraged

[8:54] buyout in history. In a speech this

[8:56] morning, Home Depot's CEO acknowledged

[8:58] that someone is probably running the

[9:00] numbers on the company just as Home

[9:01] Depot runs numbers on other companies.

[9:04] But Paul, some analysts are rather

[9:05] skeptical about this uh and say the deal

[9:08] possibly could not happen, uh saying the

[9:10] management and board would most likely

[9:12] resist such an effort. Well, investors

[9:14] couldn't resist the stock today, Jeff.

[9:17] We'll see it uh as we look at our stocks

[9:19] in the news tonight.

[9:25] Topping the most active list on the big

[9:27] board, trading a hefty 64.9 million

[9:29] shares, was DirecTV, down a nickel. The

[9:32] high volume, no doubt, due to the fact

[9:33] that the stock was added to the Standard

[9:35] & Poor's 500 index today, replacing

[9:37] Freescale uh Semiconductor, which was

[9:40] taken over. Then, second in volume came

[9:42] Home Depot, closing up $1, but it traded

[9:45] as high as $39.95

[9:47] on speculation about being taken over by

[9:49] private equity firms. Pfizer was up 37

[9:52] cents. Yesterday, the company boosted

[9:54] its 2006 earnings estimate by a nickel a

[9:56] share up to $2.05.

[9:59] Exxon Mobil moved up 39 cents. Then Ford

[10:02] Motor down 9 cents on those dismal sales

[10:04] down 10% for November. That was fifth in

[10:07] volume. GE showed no change on the day.

[10:09] Walmart down 23 cents. EMC moved up 7

[10:12] cents. And then General Motors, a 46

[10:14] cent gain. Bank of America today

[10:16] confirmed it bought 28 million shares

[10:19] yesterday, but declined to name the

[10:20] seller. I think we have a fair idea who

[10:23] it might be.

[10:24] Advanced Micro Devices down 88 cents.

[10:27] The Department of Justice subpoenaed

[10:28] this company and Nvidia regarding a

[10:31] probe into potential antitrust

[10:33] violations related to graphic processors

[10:36] and cards. Nvidia stock on Nasdaq fell

[10:38] $1.45 to $35.54

[10:41] a share. Federated Department Stores

[10:43] losing $1.49. Citigroup downgraded it

[10:46] from buy to hold because of

[10:48] disappointment over the performance of

[10:50] some Macy's stores which were converted

[10:52] into Macy's stores.

[10:54] H&R Block down 25 cents. Second quarter,

[10:57] a 49 cent per share loss, almost double

[11:00] last year's loss of 25 cents a share.

[11:02] Revenues fell 6.9% in the period.

[11:05] And then Live Nation, this company's an

[11:07] event promoter, puts on concerts and

[11:09] things like that. Stock up $1.61. Credit

[11:12] Suisse began covering the stock with an

[11:14] outperform rating and a $28 a share

[11:17] target price.

[11:19] Then we see Claire's Stores rising

[11:20] $1.45. The company has retained Goldman

[11:23] Sachs to explore alternatives to enhance

[11:26] shareholder value, and that includes the

[11:28] possible sale of the company.

[11:30] Kellwood, a clothing marketer, up $1.82.

[11:34] Third quarter earnings, excluding

[11:35] one-time items, came in at 68 cents, up

[11:37] from 57 a year ago, and 5 cents per

[11:40] share above the street estimate.

[11:42] Finally, Hershey Foods losing $2.08.

[11:44] Prudential downgraded it from neutral to

[11:47] underweight.

[11:48] Volume leader on Nasdaq was Google, down

[11:51] $4.01.

[11:53] Apple Computer, after a series of highs

[11:54] earlier in the week, down 34 cents.

[11:57] Microsoft fell 24 cents. Then came Intel

[12:00] with a loss of 47 cents. And Research In

[12:03] Motion, which had a good gain yesterday,

[12:04] down $3.15 profit taking there. Cisco,

[12:08] 22 cent loss. Amgen off $1.66. Oracle

[12:11] was a 24 cent loser, and then Broadcom

[12:14] down 49 cents. And Dell, the only the

[12:17] only winner in the active list of 10,

[12:19] was up just 3 cents.

[12:22] OmniVision Technologies down $2.67.

[12:25] Second quarter earnings came in at 28

[12:27] cents, excluding one-time items. And

[12:30] that was 2 cents below the street

[12:31] estimate. The third quarter uh earnings

[12:33] estimate from the company no better than

[12:35] 12 cents a share, half of what they

[12:37] earned in this last quarter. Then End

[12:39] Point Technologies rising $2.68.

[12:42] This is an information technology firm.

[12:45] And a real

[12:46] turnaround in the fourth quarter,

[12:47] earnings of 21 cents versus a loss of 5

[12:50] cents in the same period a year ago.

[12:52] And finally, the Nasdaq stock market

[12:54] down $2.83. Prudential downgraded it

[12:57] from overweight to underweight and cut

[12:59] its price target from $40 down to $35 a

[13:03] share.

[13:04] Those are the stocks in the news

[13:05] tonight. Jeff. Thanks, Paul. Well,

[13:08] globalization has been slow in the

[13:09] retailing business. American and

[13:11] European companies have struggled to

[13:13] transplant their business models abroad,

[13:16] especially in Japan. But while many

[13:18] foreign companies have been brought to

[13:19] grief in the world's second largest

[13:20] economy, one retailer seems to have

[13:22] cracked the code. Lucy Craftlin window

[13:25] shopping and has this report from Tokyo.

[13:28] When furniture king IKEA first arrived

[13:31] in Japan in the 1970s, it bombed, big

[13:34] time.

[13:35] So, when the Swedish retailer decided to

[13:37] try again 5 years ago, it took its time.

[13:40] We really try here to to meet the soul

[13:44] of Japanese people. Privately held and

[13:47] free from pressure to deliver quick

[13:48] profits, IKEA ran an almost

[13:51] anthropological study, exhaustively

[13:54] documenting life in a Japanese

[13:55] household.

[13:57] And we have been to many many homes

[13:59] visiting, well

[14:00] well over 100 homes, and we know very

[14:03] well how now our Japanese people are

[14:05] behaving, what kind what things are

[14:07] important for people at home, how they

[14:10] cook their food, how they store their

[14:11] things, how they even take their bath,

[14:14] how how so say home life at home goes

[14:17] on.

[14:19] The result was unveiled last spring here

[14:21] in the Tokyo suburbs, perhaps the most

[14:23] costly outlet IKEA has ever built. So,

[14:26] would you have this kind of a setup in

[14:29] one of your American stores, for

[14:30] example? Yes, we would, but then this

[14:32] room would be much bigger.

[14:34] The kitchens and living rooms would be

[14:36] familiar to IKEA shoppers in Houston or

[14:38] Pittsburgh, except every detail is

[14:40] precisely calibrated to fit the cramped

[14:43] spaces where most Japanese live.

[14:45] With accessories that exploit every nook

[14:48] and cranny.

[14:49] If you go into the IKEA in Japan, it's

[14:52] basically the same as any IKEA around

[14:54] the world, but they've added the little

[14:57] twists and changes to fit with the

[14:59] Japanese consumer perception,

[15:00] particularly in terms of the size of the

[15:02] the rooms, the size of the products.

[15:06] Um

[15:07] and

[15:09] all all kinds of things that are just

[15:10] for Japan, and so few Western companies

[15:12] really do that.

[15:14] Other foreign retailers, such as

[15:15] Carrefour and Walmart, have tried a

[15:17] low-price strategy. The IKEA case,

[15:20] experts say, shows that strong branding

[15:22] is critical. It's not a case of just

[15:25] opening a store in the same way you'd

[15:28] open a store in the US or any other

[15:30] country. There has to be a certain

[15:31] understanding of the differences between

[15:33] Japanese consumers and and overseas. And

[15:36] you have to have, as I said before, this

[15:37] unique and different offer

[15:40] that sets yourself apart from the

[15:42] Japanese

[15:43] >> [snorts]

[15:44] >> competitor or Japanese alternative. IKEA

[15:46] doesn't release results but says it has

[15:48] beaten its sales targets and is on track

[15:50] to open a dozen more stores here over

[15:52] the next few years. That's

[15:54] one of our our big secrets is but with

[15:57] the distance between the lowest price

[16:00] and the high design and quality value

[16:03] that of course is very appealing to

[16:04] people.

[16:06] With its huge economy and enthusiastic

[16:08] shoppers, Japan should be a Mecca for

[16:10] the world's retailers. But if the IKEA

[16:12] experience is any guide, Japan's market

[16:15] is accessible only to those companies

[16:17] willing to painstakingly adapt to local

[16:19] needs. Lucy Craft, Nightly Business

[16:21] Report, Tokyo.

[16:24] Monday, find that calculator, sharpen

[16:26] those pencils. We start some last-minute

[16:28] tips to save money on your federal

[16:30] [music] income taxes.

[16:38] >> [music]

[16:58] [music]

[17:14] [music]

[17:24] [music]

[17:40] [music]

[17:47] [music]

[17:58] [music]

[18:03] [music]

[18:07] >> Well, here's a look at what's happening

[18:09] next week. Our Friday Market Monitor

[18:11] guest is Ernie Accrington, the chief

[18:12] investment strategist at Russell

[18:14] Investment Group. And on the economic

[18:17] calendar, Monday October pending home

[18:19] sales, Tuesday and third quarter reports

[18:21] on productivity and labor costs which

[18:23] come out along with October factory

[18:25] orders. Wednesday, the government

[18:27] reports its weekly report on crude oil

[18:29] and gasoline inventories. Thursday, it's

[18:31] weekly jobless claims and Friday, it's

[18:33] the November employment report.

[18:37] My guest Market Monitor this week is

[18:39] John Murphy, chief technical analyst at

[18:41] stockcharts.com. And welcome back to

[18:43] Nightly Business Report, John. Great to

[18:44] see you.

[18:45] Good. It's good to be back, Paul. Wall

[18:47] Street has had a tough time of it this

[18:49] week as you know. And what do you think

[18:51] is the main factor causing the sell-off

[18:53] in stocks?

[18:55] Well, I think one of the factors

[18:56] certainly has been the the plunge in the

[18:58] US dollar. It fell to a 20-month low

[19:00] against the euro,

[19:02] a 14-year low against the British pound.

[19:05] That kind of hints at economic weakness.

[19:08] That's been confirmed by a 10-month low

[19:10] in US bond yields. So, I think it's

[19:13] worrying the stock market a little bit

[19:14] that it suggests that the US economy

[19:16] could be softening a bit. In other

[19:18] words, it's softening a bit to the point

[19:20] where we might get a hard landing.

[19:22] Well, not only softening, but softening

[19:24] relative to foreign markets. I mean, in

[19:26] the sense that some of the foreign

[19:28] markets are holding up better than the

[19:30] US market. As a result, some money's

[19:32] coming out of the US market and flowing

[19:34] overseas. How does an investor profit

[19:37] from this weakness in the dollar?

[19:39] Well, there are a couple of ways. One

[19:41] way, of course, is precious metals.

[19:43] Generally speaking, when the dollar

[19:45] drops, precious metal assets go up.

[19:48] That's one way to do it. Commodities in

[19:49] general. And also, as I mentioned,

[19:51] foreign stocks usually tend to do a

[19:53] little bit better than the US market

[19:55] when the dollar is weakening. Well,

[19:57] speaking of the US market, what is its

[19:59] technical condition right now? You're an

[20:00] expert. You're a chartist. Tell us.

[20:03] Well, I just think it's overextended,

[20:05] Paul. I mean, it still looks okay

[20:07] basically technically, but we've run up

[20:08] 15%

[20:10] in 3 months with hardly a pause. So,

[20:13] it's overextended at this point. I think

[20:15] the best thing the market could do would

[20:17] just be to stall for a little bit, maybe

[20:19] pull back a little bit, or even trade

[20:20] sideways for a couple of weeks, work off

[20:23] this overbought condition, and then I

[20:25] think we'd be in a healthier position.

[20:27] What's pulling back a little bit in

[20:28] terms of percentages on the major

[20:30] averages?

[20:31] Well,

[20:32] something like bank stocks have been

[20:34] pulling back, for example. They're being

[20:37] hurt by the yield curve. We're seeing

[20:39] some selling in retail stocks, for

[20:40] example.

[20:42] >> Now, on your last visit with us in June

[20:43] of 2005, too long ago, but you did

[20:46] recommend buying six securities. Let's

[20:48] see how they've done since then. We see

[20:50] Oil Service Holders Trust up 43%. Baker

[20:53] Hughes up almost 45%.

[20:55] Those were two great recommendations.

[20:57] And then you

[20:58] like the gold ETF, StreetTracks Gold.

[21:01] That's up a mere 46%. Barrick Gold up 25

[21:05] and a quarter percent. And you had two

[21:06] others, healthcare select, well, that's

[21:09] almost a loss for you, up only 7% and

[21:13] iShares NASDAQ Biotech up 18%. Great

[21:16] picks and I compliment you. Excellent.

[21:19] >> Thank you.

[21:20] Now, do you have some new

[21:21] recommendations?

[21:23] Well, coincidentally, when I was on

[21:26] 18 months ago, we were just beginning to

[21:28] get really bullish on the precious

[21:30] metals and we are doing that again. So,

[21:33] we still do like the precious metals.

[21:35] >> Okay, now, how about some individually?

[21:37] You talked about ways to profit from the

[21:39] falling dollar. Is there a specific

[21:41] issue?

[21:42] Well, yes, in fact, I don't know how

[21:44] many investors are aware of this, but

[21:45] there is an inverse dollar fund. It's

[21:47] called the ProFund Falling Dollar Fund

[21:50] and it trades in the opposite direction

[21:52] of the US dollar. So, obviously, it's

[21:54] been going up recently. In fact, it hit

[21:57] a 20-month high this week. So,

[21:58] >> And you think it'll go higher?

[22:00] Well, I think it's a little it's a

[22:01] little overextended on the short term.

[22:03] There's no question about it, but I

[22:05] think that it's it's probably the best

[22:06] way to play a falling dollar. And the

[22:09] And the symbol quickly?

[22:10] FDPIX

[22:12] >> Okay, and number two choice?

[22:15] Well,

[22:16] sticking with the precious metals,

[22:18] we're going to recommend the silver

[22:20] trust this time, the silver iShares SLV,

[22:23] only because it's been acting a little

[22:25] bit better than gold at this particular

[22:27] point. I like the whole group, but I

[22:28] kind of lean towards silver.

[22:30] >> And we have a quickly chance for one

[22:32] more.

[22:33] And that's Japan. I like the foreign

[22:35] markets. I think Japan is just very

[22:36] undervalued at that point. The EWJ,

[22:39] which is the the Japan iShares, would be

[22:42] my pick. John, do you personally own any

[22:44] of these securities? No, I don't. Okay,

[22:47] I want to thank you very much for being

[22:49] with us once again and I hope your

[22:50] choices are successful as they were last

[22:52] time.

[22:53] We'll hope so.

[22:54] >> [laughter]

[22:55] >> My guest, John Murphy, chief technical

[22:57] analyst at stockcharts.com.

[23:00] And now today's market action, a

[23:01] late-day rally brings the Dow back from

[23:04] a triple-digit deficit. The blue chips

[23:06] close off just 27 points, and the NASDAQ

[23:09] loses 18. To learn more about the

[23:11] stories in tonight's broadcast, go to

[23:13] nightlybusinessreport.pbs.org.

[23:17] In the Money File tonight, the key

[23:18] question you should be asking before you

[23:20] buy a mutual fund. Here's Bill Barnhart,

[23:23] financial markets columnist for the

[23:24] Chicago Tribune.

[23:27] A new word is emerging in the investment

[23:29] world, Bogleized. You'll remember a few

[23:32] years ago when Google was officially

[23:35] declared a verb by the Oxford English

[23:37] Dictionary. Well, I'm rooting for

[23:39] Bogleized to achieve similar acclaim as

[23:42] more people realize the power of

[23:44] low-cost investing.

[23:46] Bogleized is derived from the name of

[23:48] the founder of mutual fund giant

[23:50] Vanguard Group. He's Jack Bogle, and at

[23:53] age 77, he's still going strong as an

[23:56] outspoken advocate for simple, low-cost

[23:59] investing. Bogle's message is that the

[24:02] best way for most individuals to save

[24:05] for their retirement income is to own a

[24:07] piece of American business. And the best

[24:10] way to own a piece of American business

[24:12] is through broad-based and low-cost

[24:14] index funds. As Bogle puts it, owning

[24:18] American business for the long term is a

[24:20] winning game. Beating the market after

[24:23] investment costs is a losing [snorts]

[24:25] game.

[24:26] Many investors ignored the fees and

[24:28] expenses they were paying as they

[24:30] accumulated their investment portfolios,

[24:33] but as we age and begin to tap those

[24:35] portfolios for income, the drag of these

[24:38] fees will become even more apparent and

[24:41] harmful.

[24:42] That's why investment experts who have

[24:44] no stake in the fees are beginning to

[24:46] ask, has this mutual fund or this

[24:49] annuity been Bogleized? That is, has it

[24:52] been stripped of needless expenses? It's

[24:55] a question you should be asking too. I'm

[24:58] Bill Birnhart.

[25:00] And that's Nightly Business Report for

[25:01] Friday, December 1st. I'm Jeff Yastine.

[25:04] Have a good weekend, everyone. Paul, you

[25:05] have a good weekend as well.

[25:06] >> same to you, Jeff. I'm Paul Kangas,

[25:08] wishing all of you the best of goodbye.

[25:12] Nightly Business Report is made possible

[25:15] by

[25:16] Franklin Templeton Investments.

[25:18] Our unique [music] perspective helps us

[25:20] see domestic and international markets

[25:22] in a different light.

[25:25] Franklin [music]

[25:26] Templeton Investments.

[25:28] Gain from our perspective.

[25:31] And by A.G. Edwards.

[25:35] This program was made possible by

[25:37] contributions to your PBS station from

[25:40] viewers [music] like you. Thank you.

[25:51] >> [music]

[25:59] [music]

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[26:23] [music]

[26:26] >> For more information about investing,

[26:28] you may order the NBR Video Library of

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[26:35] This program is available in either the

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