A Playbook for Managing Money in Turbulent Times

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Oct. 14 (Bloomberg) –- “Money Map Report” Chief Investment Strategist Keith Fitz-Gerald discusses where to focus on investing when the market gets rough and taking the sting out of volatility. He speaks with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

This is "taking stock." let's go to bottom line anchor mark crumpton.

Edward snowden is shown speaking publicly for the first time since playing hong kong in june.

He was in russia receiving an award for exposing the nsa surveillance program.

He said that these efforts are not helping us and are hurting the economy.

After the cyclone in indonesia, 17 people were killed and more than one billion were evacuated.

The cost may be $400 million.

Robert schiller, known for the schiller index was one of three winners of the nobel prize in economics.

I am certainly honored by this.

I wonder how i will live up to the expectations that people have of may.

He was awarded the prize for his earlier, groundbreaking work on the stock market.

Bloomberg political matt dowd will join us.

We will talk about the political ramifications of the decisions made on capitol hill.

That is tonight on "bottom line." we hope to see you then.

The u.s. government shutdowns 14th day has been hitting communities across the country.

Phil mattingly has more details.

Tell us what is going on.

The emphasis -- over the last few weeks of government gridlock has been on the market impact of failing to raise the debt ceiling.

The shutdown has a laminated anything not deemed exempt.

For the safety purposes throughout the federal government.

The impact has been felt all over.

There are 550 american indian tribes that have been without crucial resources for more than two weeks.

The bureau of indian affairs, responsible for the management of 56 million acres of land was forced to furlough 2500 employees.

They now maintain the minimum number of staff levels for oversight.

Funding and grant programs have ground to a halt, as have basic services in some areas.

There are real-world implications of the gridlock in washington and this is one of them.

Do the lawmakers grasp that their own employees are the ones who are suffering?

That is what is interesting.

The debt ceiling, that seems to be where they are looking.

We thought they'd be getting so many calls that the shutdown would be incredibly painful.

Their employees are not happy and their constituents are not either.

Lawmakers are coming together and thinking about making a deal.

The blowback is starting to have an impact.

Is there some headway made in the senate today?

We are close to ending this.

According to congressional sources, lawmakers and the senate majority leader, and mitch mcconnell have the outline of a deal and they will be presenting that to the members tomorrow morning.

It goes to john boehner to see with a republican-led house will do with what the senate is about to hand over to them.

Phil mattingly, reporting for bloomberg news.

Managing your money during turbulent times is never easy, but my next guest has a three- point approach.

Keith fitzgerald, the chief investment strategist for an online investment advisor -- he says that investors should raise cash with what are described as failing stocks and specialize their funds.

It is good to have you here.

Thank you for having me back.

Let's talk about raising cash and making profit.

One thing you don't want to do is try to second-guess the market.

The markets are made up of millions of participants that can change at a whim.

You can draw a line in the sand that says i am making profits or on the sidelines.

Many people think of that as controlling the losses that these can be used to pay profits.

A lot of investors have a lot of money on the table right now and if they are nervous about the debt ceiling i would submit that this is a wise thing to do.

Do you meet a lot of investors who have a particular number?

And if my number comes up i will sell the stock.

And then it reaches that number and they say, i want a little bit more.

If it's this, it may hit that.

They continue to ratchet it up.

One of the hardest lessons i had to learn was that it is ok to make rockets.

You want to do that.

You never go broke taking profits.

Raise some cash and make some profits.

What about the idea that you can only buy stocks, and belong in the market?

There is almost something wrong, psychologically wrong with shorting the market.

These are called the inverse funds.

Having 3-5% in that asset, they can take the sting out of the volatility and allows you to weather the storm.

But more importantly if you are income investor, you can hedge the income stream so you are never in the position to have to sell a stock that is producing income.

Let's talk about a stock that is producing income.

Let's talk about kkr, the private equity fund.

They have an eight percent yield with a huge cash payment, and this business is in the business of identifying undervalued companies, and harvesting value.

They do this in all kinds of sectors.

They have lately been doing this in medical.

If you look at the aging population -- this is something that not even washington can screw up.

The kind of investment where you're getting professional guidance from buying the whole company.

You could make the decision as the individual investor to look at something, but do you have the entire kkr at your disposal?

I think in today's age you want to have managers with all of that staff on hand.

Engineering, abb is another one you are looking at.

Ask the global player and what i want right now, is a trend that washington can screw up no matter how hard they tried.

If you look at the $9 million they had an electrical infrastructure, we have to keep the lights on.

This goes between the transition and the electric box.

Everyone knows we are going into a mobile world.

There will be millions of interconnected devices, and cyber crime is on the rise.

We have to protect ourselves.

They have a built-in model.

You sign up for free and you get a service.

You pay for this because it is predisposed, and the service is performing well.

This is a profitable business model.

Thank you for sharing your insights with us.

I will introduce you to a new blue jeans company that is looking to get a slice of the 13 billions dollar -- $13 billion denim industry.

And october 13, 19 50, bill mazeroski had a walkoff home run.

Later, how to own the jersey that he wore on that fateful day in baseball history.

? first, what wall street has on their agenda for tomorrow.

Let's go the carol massar for our bloomberg brief report.

Happening in europe, the european finance ministers meeting to discuss an initiative for small and medium-size businesses.

Proposals for strengthening economic policies and plans for a banking union.

Judge stephen rose will decide whether detroit needs -- meets the legal requirements to be under corporate protection from creditors.

Finally, keep in mind a lot of earnings, including those in citigroup, lots of numbers coming our way.

For more, go to bloomberg.com.

The next guests are working to cut into the $14 billion annual denim industry.

They have a brand called 20 genes.

They are proving popular.

I sat down with the creators.

This is a funny story.

When we first met on a flight back to los angeles, we had not seen each other in several years.

We are sitting there talking about this idea, and we code- named the business, denim 2.0. our first supplier got this confused with denim 20. what was the idea.

Is this what people talk about?

You don't like the genes that are available?

What was the issue with the genes that were already for sale?

I think we realized -- we saw the opportunity for the first direct denim bland amah -- the number and at a price that guys -- that people had not seen before.

Selling directly to the customers -- we're able to offer high-quality genes at a fraction of the price that people are used to.

Tell us -- how much can you spend on about -- pair of blue jeans in the world?

Give us some price points.

Coming from los angeles, the standard in the premium world is 150 plus.

There are thousand dollar custom blue jeans.

You could spend 500 dollars -- the start at $25 and this is something the market has not seen before.

How did you make this at such a low cost?

X working directly with customers.

We don't sell to the large department stores.

We take our costs and sell directly to the customers.

This is using the internet.

20 genes.com.

I seated with enough money to get us in office, and out of the bedroom, and since then we have done a small, venture background including people like caa and the other small-cap funds.

What makes the fit of these genes different or better than what is out there now?

We actually have a lot of insight into big data, because we see our customers orders in real-time so we don't have to go through the traditional model, where they think they have the fit down.

And they have to wait for a year to see what is actually selling.

And by being direct and allows us to look at all of the top fits out there and constantly refine.

This is not just people coming online for new measurements?

We have some of the best designers, and the best talent, from the denim industry.

Who have a working in the space for several years.

What kinds of things are popular right now?

The dark washes.

Arc colors.

Since the beginning we have done color denim.

Burgundy is doing very well.

Skinny jeans are popular, we see the slim jeans and we think this is the top seller because those who wear straight legged jeans -- we certainly support.

Where do you make these things?

A combination of los angeles and shanghai as well.

We have some of the best fabric makers and shanghai.

What kind of reception do you have from the stores and other retailers.

How many pairs have you made so far?

You have sold 50,000 pairs of blue jeans.

There has been explosive growth and we are excited about where the business is going.

We denim -- and basic tees.

My thanks to cory epstein, of 20 genes.

-- jeans.

Thanks to david ortiz, they have john even with the tigers at the american link divisional series.

Find out how you can own a piece of history from red sox nation.

And if you have been listening to "taking stock" in boston on am-1200 and 95 fm hd-2. this season, the world series will conclude in st.

Louis, boston, los angeles, or detroit.

My next guest will be auctioning off prized memorabilia, in louisville, kentucky.

Joining me is david hunt, the president of hunt auctionsara.

How big of a world is baseball memorabilia?

We have done this for 21 years.

I remember when 15,000 was notable.

But now you talk about multiple six figures for these items and i think that the way that the game is ingrained into the country, people invest in this because not only does this become worth a lot more -- let's talk about some of the pieces you brought with you here today, and maybe we can get someone to enjoy them or maybe they will fit.

Let's talk about this pirates jersey, -- a great name if you are a pirates fan, not so much if you are a yankees fan.

History dictated in 1960 the pirates could not win that world series.

He came up in the ninth inning of game seven, connecting on the pitch and the rest is history.

This is the actual jersey.

The pants and the sox as well, that he wore that day.

We were fortunate enough to partner with him to offer some of these things the public and it should be exciting to see what it brings.

There is not any kind of price model to gauge.

This was in a trunk that he had.

He would check this once every couple of years to make sure that the moths had not gotten to it.

As he said in his interview, the memories are what the players hold onto.

This is just their work equipment.

This is a great story.

After the whole world series, the whole town was a rough thing and they went to fenway park and they fed the squirrels.

It is time to market in another month or so, and it could bring several hundred dollars and it could bring well in excess of that.

And it comes with champagne as well.

If you look at the certain characteristics, not that bill has any doubt about what it is or what it is not, -- let's talk about the other things you brought along.

Here is the cardboard stand of stand usual -- stan musual.

These things are not very exciting, these are just fun.

This would be worth several hundred dollars, great visual appeal but not a lot of money.

Plex do you have to go there to dissipate?

These are up online -- they will be there until august 9. dependence are very popular.

-- the pennants are very popular.

From 1960, koufax -- the dodgers are not doing that well.

But i am sure they will.

This is a few hundred dollars -- and the 19 15, the red sox and the phillies.

They had a good young pitcher, babe ruth.

Not a name that you would associate with aging.

It was very tough because the paper did not survive a lot of times.

You don't have to spend huge amounts of money to be part of baseball history?

What we try to do is enjoy what you are buying.

Don't do this because you think it will be worth more money.

Things that are iconic and related to important players and moments that end up becoming worth more, you have to love it.

Say that the red sox make it and they become the world series champions.

Will this affect the price?

On some of the more moderate level pricing pieces -- something like this mazeroski jersey, not so much.

But if someone wants to take something home -- he remembers watching sandy koufax pitch and now he sees clayton kershaw.

They will want to have each one.

Is there a piece of memorabilia you always wanted to own?

This is right between us.

This is one of the top three most desirable pieces we have ever sold in 20 years.

The odds of all of those world series, and one time that happened, very special.

That was david hunt, president of hunt's options.

The average is higher, the s&p 500 gained 37 and the nasdaq is higher by 23. thank you for taking stock, i am pimm fox.

? . .

This text has been automatically generated. It may not be 100% accurate.


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