Barry James: Be defensive, because 'the market isn't functioning properly'

Barry James, chief investment officer at the James Advantage Funds, said the market is not functioning properly because companies with no earnings have been up by 20 percent this year, while, by comparison, companies with real earnings are down, a situation that creates the potential for a big downturn when the broad market wakes up to what is happening. James has been slowly raising cash and becoming more defensive in response. Also on the show, Kelley Knutson of Netspend on Americans' fluctuating incomes, Steve Lipper of the small-cap team at the Royce Funds talks the market, and David Trainer says a soon-to-launch IPO belongs in the 'Danger Zone.'