Money Life With Chuck Jaffe Daily Podcast

Warren Pierson, co-chief investment officer at the Baird Funds, says that after a long period where bond payouts were so low that investors had no choice and no alternative but to invest in stocks, things have now moved to where investors should be looking at bond yields because that's where they can find good values now.  Pierson says that odds of a recession have risen, and while he does not expect a particularly long or difficult economic downturn, he believes investors should focus on investment-grade, quality bonds to ride it out. Also on the show, Duncan Farley, portfolio manager for the BlueBay Destra International Event-Driven Credit Fund, talks about alternative fixed-income opportunities, Zach Gildehaus of Edward Jones discusses charitable giving and making donations go farther and do more, and Nancy Prial, co-chief executive officer at Essex Investment Management, makes her debut in the Market Call talking about small-cap stocks.  

Nick Sargen, senior economic advisor at Fort Washington Investment Advisors, says that investors didn't expect the Federal Reserve to let troubling times linger, but now the central bank can't make a change on a dime, so investors should  now be waiting for the Fed to pivot on its strategy, a change he does not think will happen soon.  Sargen expects a recession that is "not that long and not that deep," though he acknowledges there is enough uncertainty to make it last longer before those weak spots can be shored up. Also on the show, Tom Lydon of VettaFi looks to an international fund that hedges currency risk -- a hot topic in today's markets -- for his ETF of the Week, Maria Feller of SurePayroll talks about a survey showing that nearly 40 percent of Americans find that subscription services -- managing them and getting the most out of their money -- is adding to their financial stress, and in the Market Call, Justin Carbonneau, vice president at Validea.com discusses the ways in which legendary investors

Anwiti Bahuguna, head of multi-asset strategy at Columbia Threadneedle Investments -- senior portfolio manager of the Columbia Thermostat Fund -- says that the sell-off in stocks has not been the result of bad earnings reports, but rather has been driven by multiple compression, and until investors are willing to pay more for earnings, the stock and bond markets will be muted at best. Investors won't likely come around until the Federal Reserve signals its intentions on whether it will continue or halt its program of interest rates hikes; until that is clear, Bahuguna says there's too much uncertainty to be anything more than neutral about current conditions. Also on the show, Dave Sekera,  chief U.S. market strategist at Morningstar, says in the Market Call segment that the market's woes have pushed a lot of stock valuations attractively below fair-value estimates, making stocks like Meta Platforms, Google, the communications industry and much more into attractive buying ranges, noting that while investors m

Dan Wiener, co-editor of The Independent Vanguard Adviser -- his new effort at tracking the world's largest fund company after his long-running newsletter was shuttered by its publisher -- discusses the value and success of touts, tipsters, newsletters and online services as he shares his plans for how he will continue to independently cover and follow Vanguard. Chuck also goes "Off the News" with Brett Arends, retirement columnist for MarketWatch, discussing his recent piece on how much retirement an individual can purchase for $100,000 and the value of annuities as a tool for retirement planning and living, especially in times when savers are more nervous than ever about conditions that could imperil their future comfort levels. Plus, author Bruce Carruthers discusses "The Economy of Promises: Trust, Power and Credit in America" and the evolution of the lending and credit industries and how the dynamics have shifted from personal judgments of who to trust to quantitative, algorithmic impersonal assessments

Kevin Mahn, president and chief investment officer at Hennion & Walsh, says investors should be deciding their current course based mostly on their reactions to current conditions. He believes that the worst is behind us in terms of the pullback in stocks, record-setting inflation and the hawkishness of the Federal Reserve, which has him expecting better days ahead and positioning to take advantage of them, but he notes that investors who disagree  and who are still uncomfortable and losing sleep at night should own up to their risk tolerance and be building in more downside protection to their portfolio now. One group that does not necessarily agree with Mahn's optimism is the National Association for Business Economics, which today released its October 2022 Economic Outlook Survey; Ken Simonson starts today's interviews talking about just how pessimistic the economists are and how bad they foresee conditions getting in the recession that most of them foresee for the end of the year and the start of 2023

Meb Faber, chief investment officer at Cambria Investments, says that with traditional safe havens not working/protecting against the current downturn, many investors are reaching the point where they can't take it any more, becoming more "emotional and crazy," and that it will get exponentially worse with every additional 10 percent decline -- which he believes might happen before the market can turn around. That kind of panicky behavior, Faber says, is that it keeps them from investing in the solid long-term values that he sees currently around the world. That said, investors might want to head for the cliff after hearing Avi Gilburt, founder of ElliottWave Trader, talking technicals on this show, as he expects the market to have a pop back to record high levels before it embarks on a bear market cycle that he expects to last at least seven years, but which he says could be the predominant trend for two decades. Gilburt says that if the market can't squeeze one more rally out of the long-running bullish cyc

Chris Brightman, chief executive officer at Research Affiliates, explains how he believes the British financial system was threatened during a recent pension crisis that forced central bankers there to step in to overcome a liquidity crisis. Brightman says he expects to see similar issues popping up in markets around the globe, noting that "it's really hard to engineer the sort-of global tightening cycle that we're in and not break anything in the financial system." Those troubles, coupled with the strength of the dollar, create buying opportunities for domestic investors, Brightman says, noting that long-term investors "are likely to do much better investing in the U.K. stock market than the U.S. stock market." Also on the show, Tom Lydon of VettaFi.com says that current market conditions call for buying stocks in companies with competitive advantages that will help them weather the storm, which is why he made VanEck Vectors Morningstar Wide Moat his pick as "ETF of the Week," and Mark Yusko, chief investmen

Kristina Hooper, chief global market strategist at Invesco, says she anticipates stock market and economic problems late this year -- "especially if the Fed doesn't take it's foot off the accelerator" -- but she says the current environment will settle down so that investors can get their bearings and stay focused on the long-term, noting that there are reasons to be optimistic about the market for 2024 and beyond. Hooper says that the Federal Reserve will be the biggest determinant of how and when the market recovers, but said she feels that investors who get too short-sighted about what is happening now are likely to be more damaged by the actions of central bankers than those who ride it out. Also on the show, Matt Brannon, data analyst with Clever Real Estate, discusses their recent study of Americans' credit-card habits, which show that most of the personal finance gains reported and experienced around the pandemic have faded as Americans returned not only to their offices but to their bad pre-pandemic f

JJ Kinahan, chief executive officer, IG North America -- parent company of tastyworks -- says that the stock market is showing signs that current high levels of volatility are likely to stick around into early next year; considering this abnormal market activity, Kinahan says there is nothing wrong with average investors regrouping and taking a breather while waiting for more clear direction from the market. Kinahan notes that he has seen over the last five months more investors moving from individual stocks towards exchange-traded funds, because they believe in the market but worry about being burned by individual stocks blowing up. Also on the show, Jim Royal of Bankrate.com discusses a new survey showing that the current "crypto winter" has a lot of investors reconsidering their comfort level with cryptocurrencies, noting that he thinks the negative feelings go beyond the 60 percent decline that the biggest cryptos have experienced this year, and Martin Tarlie, portfolio manager and research analyst at GMO

Jeff Weniger, head of equity strategy at WisdomTree Asset Management, says that the strong dollar is dramatically changing business conditions for U.S. companies, even as they deal with recessionary conditions. The dollar has gotten so strong, Weniger says, that it's an expensive country for companies and consumers, all of whom will have to deal with the headwinds created by the dollar. Weniger says that he expects the next six months to  be characterized by significant volatility, which will give technology stocks a tough ride, which has him turning to utilities and consumer staples while waiting to see how the Federal Reserve's plans to deal with inflation play out. Also on the show, Hugh Tallents, senior partner at cg42.com discusses his recent research into "buy now, pay later" plans and says that consumer behaviors are inflation a debt bubble that could lead to real trouble for the industry as interest rates rise and the economy continues to falter in 2023; Kyle Guske, investment analyst at New Construc

Jim Welsh of Smart Portfolios -- author of the "Macro Tides" newsletter -- says the Federal Reserve will not be able to raise interest rates, calm the economy and bring rates right back down, noting that current conditions are reminiscent of a 15-year period from the mid-1960s to the early 1980s when the market was largely flat as the central bank struggled to keep inflation in check. If the market repeats that kind of long-term doldrums, Welsh says that buy-and-hold investors will be disappointed in the long run. That's doubly scary when considering the comments of Chris Maxey, chief market strategist at Wealthspire, who says in The Big Interview that investors need to take a longer-term approach to deal with current volatility and Fed policy-making and the recession he sees ahead for 2023. In The NAVigator segment, John Cole Scott of Closed-End Fund Advisors discusses and compares floating-rate and senior loan funds to preferred-securities funds, noting that floating-rate funds are a tool for combating high

Long-time investment writer John Waggoner, the financial editor for AARP.org, says that investors aren't seeing the proverbial "blood running in the streets" despite the stock market's recent downturn, so it's not a simple "buy the dips, ride it out" market. Instead, it's a balance of holding more cash and deploying it selectively, while also considering ways to reduce the long-term impact that current conditions can have on a retirement portfolio. Also on the show, Tom Lydon of VettaFi makes a short-duration bond fund -- an ideal and popular parking place for cash given current market conditions -- his ETF of the Week, Ted Rossman of Bankrate.com discusses a survey showing that it's already beginning to look a lot like Christmas as holiday shoppers get busy early in an attempt to stave off inflation this year, and, in the Market Call, Chris Armbruster, portfolio manager and senior research analyst at Kayne Anderson Rudnick talks about building concentrated portfolios and investing in mid-cap stocks

Jason Thomas, chief executive officer at Portfolio Design Labs, says that the toughest challenge facing investors right now is that safe assets -- which had done their job reasonably well during downdrafts over the last 30 years -- aren't delivering now, forcing investors to change their plans to better ride through inflationary and recessionary times. Thomas says that with the dividend portion of high-dividend stocks being undervalued, a mix of those steady payers plus short-duration bonds will help investors get through the next few years to the next phase of both the market and their investment life cycle. Also on the show, Chuck talks about The Vanguard Group's announcement this week that it was shutting down a U.S. ETF for the first time ever, and what that action says about the company and the industry -- and what it means for you -- and Andrew Graham, founder and portfolio manager at Jackson Square Capital talks in the Market Call about pursuing a growth investment strategy during a time when growth is

Willie Delwiche, investment strategist at All Star Charts, says that he does not believe investors will be rewarded for "being early to buy the dip," warning that changing market conditions make it that waiting in cash to see more discernible trends will avoid losses and sidestep volatility while still allowing for upside potential once it becomes clear that the tide is turning. "The more cash you have on the sidelines" Delwiche says, "the better you're feeling about your position." Today's show also features the return of Wade Pfau, professor of retirement income at The American College of Financial Services, who is back to answer listener questions about the use of reverse mortgages, especially given current interest rate and market conditions, plus Maria Szatkowski of MyVision.org discusses the site's recent survey on medical procrastination caused by inflation plus the acceptance of telehealth and whether it helps to break the logjam, and we revisit a recent wide-ranging conversation with Christine Benz,

James St. Aubin, chief investment officer for the Sierra Mutual Funds, says that investors can win right now by not losing, and while holding cash won't keep pace with high inflation, he says being on the sidelines waiting for the market "to show some productive trends" is a sound strategy for current conditions. St. Aubin says that while the Federal Reserve's clear mission is to tame inflation even if it means triggering a recession, the stock market will continue to respond badly until it has a more clear direction. Also on the show, Mike Dowdall, chief investment officer at Alternative Fund Advisors, discusses the private credit market as an alternative to ordinary stocks and bonds in this market, David Botset of Schwab Asset Management discusses the firm's 11th annual study of ETF investors and their changing habits, and David Trainer of New Constructs puts a popular pandemic stock in "The Danger Zone," marking it as his latest "zombie stock," walking dead as it burns through cash with no sign of profits

Abhay Deshpande, founder and chief investment officer at Centerstone Investors, says that international stocks are already looking like good values but are likely to be priced even better with another drop from here, but it is creating "a dream scenario for anyone who has a three- to five-year time horizon," so while he sees the proverbial blood running in the streets globally, he thinks investors are "in that zone" where they should allocate more internationally to get the best prices now. Investors generally are feeling like the blood is running in the streets, which is why investor optimism is at its lowest levels since March 2009; Charles Rotblut of the American Association of Individual Investors gives the high level of pessimism some context, and Toni Turner of Trendstar reflects on the market's technicals and ponders what might happen if June's lows don't hold up from here. Plus, Mark Scalzo of the newly listed Destra Multi-Alternative Fund discusses alternative investing and his fund's massive discoun

Wade Pfau, professor of retirement income at The American College of Financial Services and the nation's preeminent expert on reverse mortgages, says that retirees are facing a delicate balancing act right now, worrying about sequence-of-return risk -- which is heightened during times of bear markets and high volatility -- but also how to fund retirement. Reverse mortgages can be a key tool in times like this, but Pfau says they become less effective as interest rates rise; coupled with wildly fluctuating housing values, it makes it crucial that retirement savers understand the math they are facing. Also on the show, Tom Lydon of VettaFi looks to oil and gas exploration for his "ETF of the Week," Mark Hamrick, senior economic analyst at Bankrate.com, weighs in on the Federal Reserve's interest rate hike on Wednesday and what its statements about the future portend for the market, and Ken Willner of TextNow.com discusses their recent survey on how consumers are dealing with inflation and what they are sacrific

Crit Thomas, global market strategist at Touchstone Investments, acknowledges that he is giving potentially controversial advice in suggesting that with interest rates still rising investors might look to buy longer-duration bonds, but he thinks that rates will peak soon and that investors who stay completely focused on short-term bonds will find themselves with significant re-investment risk -- the chance that they will be looking at lesser returns when bonds mature -- in a year or two. While he is not going way up the maturity scale, Thomas is looking to position both fixed-income and equity portfolios for a recovering and changed market and economy in the next two years. Also on the show, Chuck discusses the relative success -- or lack thereof -- that active managers have had in beating their passive benchmarks this year with Tim Edwards, managing director of index investment strategy, S&P Dow Jones Indices, discusses the rising percentage of Americans with long-term credit-card debt -- at just the wro

Simeon Hyman, global investment strategist at ProShares, says that the dividend aristocrats have grown their payouts beyond even the current levels of inflation, which makes them — along with companies that benefit from rising rate environments- the sweet spot for tilting a portfolio now. In The Big Interview, he also discusses how to tilt a fixed income portfolio for today's challenging conditions. Also on the show, Ken Tumin, founder and editor at DepositAccounts.com, talks about what rising interest rates have already done to consumers and savers and says that the next, upcoming rate hike is not going to reward savers looking for a safe place to keep pace with inflation. And in the Market Call, Brad Lamensdorf of the The Lamensdorf Market Timing Report and chief executive officer at Active Alts, discusses the need to be selective about shorting stocks, because the ebbing tide right now is not taking all companies out with it.

Thomas Samuelson, chief investment officer at Vineyard Global Advisors in Denver says that last week's inflation news and other current conditions have increased the potential for recession, and he notes that the historical decline for a bear market with a recession is 35 percent, which will have the market testing June lows and likely going deeper, potentially dropping the Standard & Poor's 500 to the 3,000 to 3,200 range. In The Danger Zone, David Trainer of New Constructs singles out Affirm Holdings, a buy now, pay later shop that has seen its stock price fall from roughly $175 to under $25 in the last year as a zombie stock with real potential to go to zero. And we revisit a recent conversation with billionaire David Rubenstein, co-founder of The Carlyle Group, one of the world's most successful investors and philanthropists.