What Works for Your Wallet?

Steve Cortes makes bold money predictions for 2014.
3:00 | 12/11/13

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:



Skip to this video now

Now Playing:


Related Extras
Related Videos
Video Transcript
Transcript for What Works for Your Wallet?
The guy who I as soon drives one car the same one every day -- Cortez of air crews TJ -- with us now. And it's great to see -- -- what car do you drive. You -- her back absurd disappoint you but -- live in Chicago I'd take the all the -- -- my car is public transportation. It. We do have a family -- and I don't it's not a whole lot of my wife does which is a Lexus -- in love it. You know it's crazy I literally in my lifetime have never owned a car despite growing up in the midwest and -- my parents' car. And then I went to school in Chicago so there was never any need and -- here in New York. I want to ask you though about a big name in the car industry right now marry -- they -- CEO shall take the reins in January of next year. From Dan Akerson and she'll be the first female. To run one of Detroit's auto -- what do you make -- this. Yes you -- listen it was a big news day for GM on two fronts one front was at the Treasury Department. Us the people -- able finally sell our shares -- get out of the remaining stake holding GM stock on the taxpayers still took a major loss on that investment but at least the taxpayer the Treasury Department is now out of owning what was. Derided as government motors is back to being general waters back to being a truly private company and then of course the first woman CEO of any Detroit. Auto maker saw a very big day for GM GM shares have been trading terrifically as have. Anything auto related this entire year but I would say one note of caution you mention that piece about how long in the previous peace in the Lally -- along folks. Are holding their cars right it's not just that there's also such inventory on dealer lots so -- words the car companies are reporting very good sales but inventories city on car dealers' lots. Are an eight year -- and so we're seeing a lot of what's known as channel stopping. Where the auto makers are make it a whole lot of cars -- they're not necessarily selling but they're forcing them upon the -- so I do think that although autos about a great Ron. It's a little bit cautious having going into -- -- -- fourteen given that massive amount of inventory. I'm pretty bullish on on -- a purely because of her background I look at somebody 33 years with the same company. How many people can even say that nowadays and she worked her way up -- she started at the Pontiac line looking at the assembly line in the -- -- came off. And now has been an engineering manufacturing she's on new product development. But if you had to look and General Motors vs board. Which company would you pick. You know right here actually I'd prefer -- and that's not to in any way disparage. Ms. Barron you're right I think it's an incredible American success story General Motors. We should start working him as a teenager paid for her to go to college paper go to Stanford business school it's a wonderful almost -- back story of being a truly a career company person. But having said that General Motors stock has significantly outperformed for over the last few months I think the main reason. Is what you were asking mr. Mulally bodies too many worries that he is going to be leaving and he's headed back right northwest. To Microsoft so because that Ford is under -- I in my view. That's a temporary phenomena once we declared -- -- -- -- he leisure he doesn't. My guess is that Ford actually in stock price catches up to GM and has significantly under -- if you need to be involved there I'd rather be in for -- my favorite stock -- ball in the auto spaces actually AutoZone. Which made up being all time high yesterday and that -- replacement parts. For for do it yourself repair -- and because. People now have eleven year old cars. There's an age of sort of ought all austerity. -- folks are keeping their cars for long time they're fixing -- themselves and AutoZone is in exactly the sweet spot of that phenomena. Very interesting I also was wondering if you might say anything about Tesla it was something I asked Alamo Ali about Mike is he concerned about Elon -- -- -- see -- -- competition. In traditional Alan Mulally fashion and he essentially -- he was really excited about sports cars but. Obviously that's a big player -- if they come into the market and produce an electric car at that 30000 dollar level which is what Elon Musk has said they want to do that could be a game changer. I think it's a great point and listen I think Detroit is absolutely. Fearful of Tesla and they should be. Elon Musk is a winner he's an innovator he's a visionary now that doesn't mean that I missing -- by the stock right here the stock has had an incredible run I would always up near 200 all -- back to 100 so this is not. Stock for the timid but as far as the company of Tesla. They produce a car that one. The highest. Ever ratings. From consumer reports and sold -- that kind of a card to get those kind of act lays -- design talent and with the leadership of Elon -- I think this is a company to be reckoned with in the future I think they're gonna do incredibly well in Europe which they barely penetrated yet but -- Is much more friendly to the idea collector cars anyway shorter driving distances. Far higher gas prices so I think that they have a very robust future lot of dean overseas -- act -- what's your prediction for 2014. Well look you know this has been a phenomenal year I think if your a good party -- when the party gets the -- you start thinking about leaving you don't wanna be the last one to leave the party you don't wanna be to want to -- When things are getting broken when the parties getting sloppy so it's pretty fantastic year but I would urge caution. Into 2014 much of this rally has been about. Federal Reserve policy more so I think than real strength on main street main street is growing. But it's muddling along particularly in terms of wages -- regular folks out there are not seen are not see themselves get a lot wealthier unless they happen all a lot of stocks is primarily only the wealthiest among us so -- -- between fourteen my guess is it's going to be hard for that divergence to continue of an extremely strong stock market but a model through. Main street economy so I'm not -- dire predictions and -- get an all cash. Your run for the hills by MCI would not expect the kind of fireworks that we had. In 2013. Big -- this morning as far as time's person of the year goes it's the Pope. What's the reaction there. -- you know -- -- as a former altar boy it's somewhat educated by the Jesuits by his order. What an incredible honor for him for the Jesuits and for the Catholic church and -- I would say to that. Perhaps the picture of the year was that wonderful inspiring shot of the -- embracing that disfigured man. In the Vatican so this is clearly he's an inspiring character to many around the world not just Catholics. And clearly a leader that transcends. -- just the church -- -- incident again great honor for him and for the church on -- in terms of 2014 calls I'm certainly very bullish on the Catholic Church. I'm I'm glad to hear that Steve and it's it's definitely the kind of thing we need more and that this time of the year it's nice to hear. A positive story and somebody who does good things getting recognized for -- -- -- has as always great speaking with you.

This transcript has been automatically generated and may not be 100% accurate.

{"id":21178996,"title":"What Works for Your Wallet? ","duration":"3:00","description":"Steve Cortes makes bold money predictions for 2014.","url":"/Business/video/works-wallet-21178996","section":"Business","mediaType":"default"}