Money Life with Chuck Jaffe

Andy Kapyrin, co-chief investment officer at CI RegentAtlantic Private Wealth, says that in past debt-ceiling debates -- notably heated times like 2011 and 2013 -- stock market investors made times volatile, creating an incentive for Washington to act, but with current volatility being muted, Kapyrin sees ratings agencies like Fitch applying pressure that should help politicians to resolve the issue. While Kapyrin notes that the Federal Reserve has always struggled to deliver a soft landing, there are signs that it can at least escape the current cycle with nothing worse than a mild recession. Also on the show, Duncan Farley of the BlueBay Destra International Event-Driven Credit Fund discusses how rising rates and inflation have created more and different opportunities in the public and private credit markets, delivering the potential for double-digit returns without correlation to the stock market, Jerremy Newsome of Real-Life Trading talks about how investors can make money playing both sides against the middle of the current range-bound market, and Tom Plumb of the Plumb Funds discusses innovative, disruptive companies in the Market Call.

Mike Foss, former partner at Brown Advisory and former manager of the Brown Advisory Equity Income fund, says he expects a slowdown, but high inflation and low unemployment leave us without the makings for a strong recession. Meanwhile, he believes interest rates will remain 'higher for longer than bond market investors actually think.' Also on the show, Tom Lydon of VettaFi makes his ETF of the Week pick an issue that builds its portfolio around stocks that are popular among hedge funds, Claire Martin-Tellis discusses a survey showing that people living in higher-income areas are much more likely to be targeted by scammers, plus we revisit a recent Market Call interview with absolute-value investor Brian Frank of the Frank Funds.

Scott Wren, senior global market strategist for the Wells Fargo Investment Institute, says that he is expecting economic contraction for the last half of the year and into 2024, but notes that the market looks ahead and tends to get optimistic about half way through a recession. He's not expecting the economic slowdown to bring a major market meltdown, but by the middle of the downturn he expects signals to turn to where opportunistic investors with multi-year time horizons will want to use the pullback as a chance to buy on the cheap. Also on the show, Greg McBride of Bankrate.com discusses research showing that about one-in -four investors has moved money this year out of stocks and to fixed income or savings accounts, Chuck answers a listener's question about the process for becoming an accredited investor -- the kind who can invest in hedge funds, private-equity deals and equity crowdfunding -- and Francisco Bido, senior portfolio manager at F/m Acceleration talks stocks in the Market Call.

Alan McKnight, chief investment officer at Regions Asset Management, says that the market is being buffeted by a lot of forces, but is mostly climbing the wall of worry, making it a time to be neutral between stocks and a recovering bond market, staying more domestic over international in both fixed income and equity due to international risks and despite good valuations overseas, while waiting for the market and economy to negotiate a soft landing and possible brief recession. Likewise, D.R. Barton Jr., chief investment strategist at Finiac, says that technical analysis supports the current range-bound market staying within its range for a while longer, thoug he notes that if the market can break out of the range to the upside -- which it is close to right now -- it could pick up 10 percent by year's end. Plus, Julie Ramhold of DealNews.com discusses what to shop for in Memorial Day sales and what to leave for later in the summer, and forensic accountant Tracy Coenen talks about proving your case and using the results to get money back in the latest episode of 'Find Me The Money.'

Pulitzer Prize-winning journalist Gretchen Morgensen, co-author of 'These Are the Plunderers: How Private Equity Runs—and Wrecks—America,' discusses the wide-ranging impacts that private equity firms are having in America, running a large percentage of nursing homes of private equity and hospital emergency departments, media companies and much more. She notes that leveraging companies in order to purchase them and re-sell them at a profit is detrimental to the business, while enriching the wheeler-dealers, leaving a 'circle of pain' after private equity takeovers. Also on the show, Laura Geritz of Rondure Global Advisors says that the entire world is dealing with the inflation problem, but that it impacts smaller companies less, meaning there are good buys among small firms around the globe. She notes that she particularly likes the Mexico market now, dislikes Korea and is working through the complexities of China. Plus, David Trainer of New Constructs revisits an old Danger Zone pick -- a zombie stock that he says is headed to zero -- after a recent earnings surprise made the market consider whether the troubled company remains viable.

Ed Moya, senior market analyst at OANDA, sees the stock market as being stuck in its current range for months, possibly testing October lows while it waits to get more clarity on the Federal Reserve's position on ending the rate-hike cycle and starting cuts. Declines and weakness are buying opportunities, Moya says, because 'this market is looking for a big move,' with money on the sidelines looking for a breakout that will happen only once investors are confident with where inflation and rates are heading. In The Big Interview, Barry Martin of the Shelton Equity Income Fund discusses defensive investing and covered-call strategies and how they are working in the current period of volatility without much direction. Also, in The NAVigator segment, Matt Freund, co-chief investment officer/head of fixed-income strategies at Calamos Investments, says he expects interest rates to settle in and remain stable for quite a while before trending down, though he expects heightened volatility in longer-term bonds; and in the Market Call, Brian Huckstep, chief investment officer at Advyzon Investment Management, talks the macro picture and the exchange-traded funds best suited for his current outlook.

George Bory, chief investment strategist for fixed income at Allspring Global Investments, says that investors should lean into the currently inverted yield curve and buy bonds for f longer maturities so that they can lock down. High current interest rates before the Federal Reserve decides to cut rates. Bory also notes that he expects the federal government to avoid a true default but explains that a downgrade from ratings agencies won’t be the big deal most authorities expect. Plus Tom Lydon, vice chairman at VettaFi turns to a small-cap co weed-call fund for his ‘ETFof the Week,’ and Raymond Bridges, portfolio manager of the recently opened Bridges Capital Tactical ETF talks stylized stock investing in the Market Call

John Porter, chief investment officer at Newton Investment Management, says the market has traded in a tight range for almost 10 months and he expects it to stay in that range while the economy sorts out its unknowns until a clear picture emerges, which he thinks will take another six to nine months. Meanwhile, to produce reasonable results in a choppy market, he says money managers will need to increase their turnover and trade more, taking advantage of the short, tight fluctuations even as the market has no bigger trend. Also on the show, Jill Gonzalez discusses the new study from WalletHub.com showing that U.S. households now have $17 trillion in household debt, more than $140,000 per household, Carter Malloy of AcreTrader.com discusses the benefits and expected returns to investing in farmland and timberlands, and Chuck celebrates what would have been the 70th birthday of his brother by talking about the delicate balance between making money and enjoying life.

John Blank, chief equity strategist/chief economist at Zacks Investment Research, says the range-bound market is going to stick around unchanged until the Federal Reserve changes its policies. Once inflation comes down, Blank says 'the market is going to rally like you've never seen.' But even now, Blank says the economy is having its soft landing -- and has been in one for some time -- no matter how much most economists protest that there hasn't been any landing yet. Also on the show, Scott Fulford, author of 'The Pandemic Paradox: How the COVID Crisis Made Americans More Financially Secure,' survey researcher Jenn Tracy on a study showing about how Americans are -- or aren't -- pampering themselves during tough economic times, and, in the 'Find Me The Money' segment, forensic accountant Tracy Coenen talks about the documents and paper trail that you need and how to follow them to find the proof of financial infidelity.

John Jennings, author of 'The Uncertainty Solution: How to Invest with Confidence in the Face of the Unknown,' says that investors have proven throughout times by their actions that less is more effective during times when every move looks sketchy. Getting over your compulsion to do something, he notes, will help your portfolio thrive in times when the market isn't doing so well. Also on the show, Megan Moncrief, chief executive officer at the travel-insurance platform Squaremouth, discusses the high prices travelers are facing, paying and insuring for their summer vacations, David Trainer of New Constructs puts a popular stock name back in 'The Danger Zone,' noting that popularity can't save it, and Chuck takes a listener's question on how to deal financially with adult children returning home to live.

Quincy Krosby, chief global strategist at LPL Financial, says that the market is suggesting the possibility of a rate cut coming from the Federal Reserve by September, and that won't happen if conditions are fine. With a solid labor market and low unemployment, Krosby says the market is still range-bound and struggling to sort things out, but the futures market is signalling that trouble must be afoot. Also on the show, Jim Baker, co-head of energy infrastructure at Kayne Anderson Capital Advisors, talks about the strong opportunity in the sector over the next few years, despite recession concerns, and Wade Pfau returns to the show to discuss the new edition of his 'Retirement Planning Guidebook.'

Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance, says the resilience of the economy has been surprising, staving off recession longer than he expected and allowing the market to fight off headwinds that still seem poised to create a recession, whether it comes late this year or into 2024. Zaccarelli does say the economy's strength will put the Federal Reserve in a tough spot, having to decide if it needs to increase rates again, and potentially pushing the eventual recession into a hard landing for the market. Also on the show, Tom Lydon of VettaFi makes his 'ETF of the Week' an agriculture strategy fund powered by artificial intelligence, Matt Brannon of Clever Real Estate discusses a survey of home renters who say at alarmingly high rates that they have been priced out of the American Dream of home ownership, and Peter Crane, president of Crane Data, discusses money-market funds and their suddenly competitive yields and how they will hold up in a world looking at banking crisis and possible government default.

Herb Greenberg, senior editor at Empire Financial Research, says that the overlooked story in the drop in bank stock prices is the role that exchange-traded funds likely played in making it happen. He discusses his recent article on the subject, which points to the way ETFs are traded as a significant contributing factor to the big drop in banking stocks, and notes that the same phenomenon could impact other market sectors that get hit with bad news in the future. Also on the show, Ed Carson, news editor at Investor's Business Daily, discusses the huge drop in investor sentiment during April and how it impacted all major components of the Economic Optimism Index, and portfolio manager Andrew Graham of Jackson Square Capital talks stocks in the Market Call.

John Kosar, chief market strategist at Asbury Research says the current range-bound market is 'building up energy' and if the market can break through 4,200 on the Standard and Poor's 500, it is feasible that the market can reach new, record highs by the end of the year. But there is no clarity on the direction of the market, and if there is continued small-cap weakness and other trouble spots and the SP500 drops below 3,800 it could fall as low as 3,400 before any rally can start. Kosar notes that until the market shows more signs of clarity, he'd avoid betting on the direction of the market. Also on the show, Find Me the Money with forensic accountant Tracy Coenen focuses on how 'fair and honest' disclosure can't be taken for granted in many divorce cases, Chuck discusses the NASDAQ Composite officially exiting bear-market territory, and author Rob Cross, discusses 'The Microstress Effect: How Little Things Pile Up and Create Big Problems--and What to Do About It.'

Absolute-value investor Brian Frank of the Frank Value Fund says that with cash now paying close to 5 percent, it's 'gotten a lot easier to go to cash,' but it also has raised the bar on stocks and for how investors should set their expectations. 'If you don't think you're going to be making more than 5 percent on a stock,' Frank says in the Market Call, 'why are you buying it if cash is paying you [5 percent] now?' Also on the show, Lewis Black, chief executive officer at Almonty Industries, talks about the market for tungsten and how the metal has the potential to be the cause of tough economic conditions and geopolitical football; David Trainer of New Constructs puts Kenvue -- the spin-off of Johnson and Johnson consumer brands -- in the Danger Zone in its first few days after going IPO, and Chuck answers a listener's question that goes to the heart of Brian Frank's discussion on going to cash, about whether cash returns are so good right now that a nervous investor might use bank accounts to ride out whatever the market dishes out next.

Alaina Anderson, co-portfolio manager of the William Blair International Leaders Fund, says investors should be looking abroad with their money right now because the market has reached an inflection point with international stocks being much more attractively valued than domestics, and having improved profitability and sustainable results now. Anderson warns that the global rate-hiking cycle may not be done, but says foreign stocks may be better positioned to ride out whatever central banks dish out next. Buck Klintworth, portfolio manager at Chase Investment Counsel, says it's a market of conflicting signals where the technicals can make a case for just about any outcome. He sees a bullish Standard and Poor's 500, but notes that much of the strength has been among the largest names, suggesting that the rally is not sustainable long-term. In The NAVigator segment, Christian Munafo, chief investment officer, in Liberty Street Advisors -- which runs the Private Shares Fund -- says there are two stories dominating the private equity markets, with high-performing well-financed private innovation companies being proverbial unicorns compared to less- differentiated, less-capitalized companies which are more prone than ever to failure due to conditions in the capital markets. In the Market Call, Daniel Dusina, director of investments at Blue Chip Partners, talks brand-name, large-cap stocks.

Kevin Mahn, president and chief investment officer, Hennion and Walsh Asset Management, says that while the Federal Reserve has been trying to kill or diminish demand, it hasn't done a great job bringing inflation closer to its target level of 2 percent. As a result, Mahn thinks that the Fed and investors will have to live with inflation around the 3 percent level into 2024, and says that the Fed may ultimately have to accept that higher inflation is here to stay and strongly resistant to the traditional methods for curtailing inflation. Also on the show, Tom Lydon, vice chairman at VettaFi, makes the Consumer Staples Select Sector SPDR his pick for 'ETF of the Week,' noting that while the sector is defensive in nature, the fund has been on a roll that has pushed it to all-time high levels; and Joe Boskovich Sr., chief investment officer and portfolio manager at Old West Investment Management makes his debut in the Money Life Market Call talking value stocks and concentrated portfolios.

Christopher Mizer, founder of Vivaris Capital, says that alternatives were in a hot spot a year ago -- when stocks were 'frightfully overvalued' -- and investors needed investments that had building cash flows and organic growth potential, but now with the market valued more reasonably, the role that alternatives are playing is to reduce long-term volatility and to offer a steadiness that the market doesn't seem to have right now. He discusses climate technology and other alternative investments that investors might consider now. Also on the show, James Nelson, author of 'The Insider's Edge to Real Estate Investing,' talks about investing in real estate at a time of high interest rates and wild fluctuations in property prices, Ted Rossman of Bankrate.com discusses the site's survey of how consumers are planning for summer vacations but altering their itineraries to deal with inflation, and Chuck answers a listener's question about whether there are any star mutual fund managers left and if investors should seek them out.

Willie Delwiche, investment strategist at Hi Mount Research, says that with the domestic stock market showing more stocks making new lows than highs, the U.S. market is increasingly challenged. Witht hat in mind, Delwiche says investors should be looking overseas because 'the rest of the world increasingly looks like it is in an uptrend and poised to continue making new highs.' Also on the show, in 'Find Me the Money,' forensic accountant Tracy Coenen discusses financial infidelity and how and when people cross the line and create relationship problems with their money behaviors, Chuck answers a listener's question about how any potential government default will hit home, and we revisit a recent Market Call conversation with Jeff Muhlenkamp of the Muhlenkamp Fund.

David Trainer, founder and president at New Constructs, makes pet-insurer Trulanuon the 33rd member of his firm’s list of ‘zombie stocks,’ nothing that the company still has a long runway — nearly two years before he expects it to be bankruptcy — but almost no hope. Chuck discusses real expertise and the importance of vetting experts at a time when most news and information sources are looking to fill space. Plus Craig Martin discusses the latest research from J.D. Power showing how unhappy self-determined investors are with their results, and Charles Rotblut of AAII Journal gives his take on last week’s Morningstar Investment Conference, as well as on the current sentiment of investors.