Money Life with Chuck Jaffe

Joe Kalish, chief global macro strategist at Ned Davis Research, says that longer-term inflation will be what determines whether the economy can continue to avoid a recession and the market can sidestep a protracted downturn. With that in mind, Kalish expects the Federal Reserve to raise rates repeatedly until it can be confident that inflation has peaked, is passing through temporary troubles and...

Hank Smith, head of investment strategy for The Haverford Trust Co., says that rising volatility and heightened uncertainty shouldn't push investors out of the market, because times like these prove the value of being fully invested in all conditions, and having money in the market whenever a bottom is reached. In the Market Call, Smith talks about how owning great companies with long histories of...

Jeffrey Cleveland, chief economist at Payden and Rygel, says that he expects inflation to settle down and for the economy to reach full-employment levels by the end of the year, creating earnings and economic growth that sidesteps any potential recession. Cleveland expects the market to recover its early-year losses and show modest profits by the end of the year. Also on  the show, Shelly-Ann Ewek...

Jeffrey Kleintop, chief global market strategist at Charles Schwab & Co., says that earnings will continue to power the stock market which he expects to overcome current concerns about high inflation and rising interest rates to finish the year with the kind of high single-digit gains he was expecting several months ago when he posted his annual outlook. Kleintop says he expects inflation to calm...

Terri Spath, founder and chief investment officer at Zuma Wealth, says that stock market and economic conditions have her lightening up on technology stocks but adding to commodities, going up to her traditional limits on commodities because that's where managers can deliver a better return in markets currently affected by the war in Ukraine and more. Spath notes that she is moving away from bonds...

Matt Harris, chief investment officer at The Hausberg Group, says that it has been a market year of extremes, a polarizing year where the stock and bond markets have been oversold, gold has been overbought and investors and their emotions have been whipsawed by the moves. Yet he sees many of the factors creating those conditions as mitigating and calming down now, and as those factors stabilize he...

Craig Callahan, founder of ICON Advisers and author of a new book, 'Unloved Bull Markets,' says that investors who have relied heavily on price-earnings ratios to evaluate stocks have been fooled. He says that p/e ratios are 'totally worthless in predicting future returns, and notes that stocks were never overvalued in the long bull market run after the 2008 financial crisis, nor are they overvalu...

Michael Power, strategist at NinetyOne, says that investors might be tempted to run away from the market, but there is no real place to hide with high inflation and low yields making it that the traditional safe-havens are losing  purchasing power. Power says that there is a possibility of recession arriving late last year or early in 2024, which makes diversification across asset types and around...

Meb Faber, co-founder and chief investment officer at Cambria Investments, says that investors aren't just dealing with headline issues of war, inflation and rising interest rates, but he notes that the market has turned to what he called an 'expensive downtrend,' which is historically a time when returns tend to be zero or negative. Faber says he worries that this could be a moment where investor...

George Kinder, president of The Kinder Institute of Life Planning -- generally recognized as the biggest moving force behind the life-planning approach to personal financial management -- says that investors need to look at where they can minimize risks in current conditions, but do that without blowing up financial plans because they are better off holding to their plans than changing them just b...

Joe Terranova, chief market strategist at Virtus Investment Partners, says 'the enemy right now for investors in the market is time,' and understanding how to be patient, because the market's current troubles are masking economic strength and the likelihood of a U-shaped recovery. He expects that a record year for corporate buybacks and an investing public that is flush with cash should buffer the...

Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Co., says that war, inflation and more are changing the narrative for the market, but mostly for the short term. He still believes the domestic stock market is positioned to outperform later this year and into 2023 as the strong economy is able to flex its muscle and have influence that overcomes the headlines. He...

Ed Carson, news editor at Investor's Business Daily says that current conditions are worrisome enough that investors may not be able to adjust their attitudes quickly, as they do in more normal times. Discussing the IBD/TIPP Economic Optimism Index, Carson discusses how the big decline this month was caused by gas prices as much or more than by war in Ukraine, but he notes that given how fast pric...

Stephen Dover, chief market strategist at Franklin Templeton Investments, says that the experts have been off the mark in forecasting how the market would respond to the war in Ukraine, to rising inflation and more, which has him focusing on individual stocks and their fundamentals rather than letting the macro-economic outlook determine investment positions. Turning to the market's technicals, Mi...

Jeff Weniger, head of equity strategy at WisdomTree Asset Management, says he expects unemployment to drop potentially below the 3 percent level -- which is better than so-called 'full employment' -- which takes 'the stag' out of stagflation possibilities. With the jobs market not being stagnant, Weniger says the economy can power through rising inflation and interest-rate concerns to keep moving...

Katie Stockton, founder at Fairlead Strategies, says the market appears to be in a long-term trading range for 2022, not because of the geopolitical concerns over war in Ukraine or the worrisome inflation numbers or pressure on interest rates at home, but instead based on technical reasons which show that the major indexes have lost upside momentum and will struggle to get it back. In the Big Inte...

Greg Valliere, chief U.S. policy strategist at AGF Investments, says that several interest rate hikes will not sour the economy now, so that if the Federal Reserve doesn't go too far on tightening, there's no reason for a recession. Valliere says that he does expect more recession concerns at the start of 2023, as the economy digests the protracted impact of not just rate hikes but inflation, wani...

Mark Luschini, chief investment strategist for Janney Montgomery Scott, says that the market is working its way through a correction -- troubles exacerbated by the war in Ukraine -- but that hasn't dampened the economic underpinnings or deflated the spending desires of consumers, which should help growth in corporate earnings pick up and push the market higher later this year, leading to 'pretty f...

Marty Fridson, chief investment officer at Lehmann Livian Fridson Advisors, says that the war in Ukraine has become integrated along with other concerns -- most notably heightened inflation -- which may not stop the Federal Reserve from going ahead with planned interest rate hikes this month, but make it likely that any rate moves will be smaller and more controlled. Mish Schneider, director of tr...

David Trainer, president at New Constructs -- a data firm that analyzes funds and stocks -- says that the hugely popular ARK Innovation Fund is fooling investors into believing that innovation itself is an investment strategy or asset class, and he notes that many of the holdings are simply early entrants to an industry with little or no competitive edge. That's why a number of the fund's biggest...

Bill Nygren, co-manager of the Oakmark Fund -- whose three-decade track record has made him an investment legend -- says that while the video from the Ukraine is distressing and the headlines about interest rates and inflations are worrisome, investors need to stay focused on the long run. Nygren says that he doesn't think 'any of the events we are seeing in the world today will meaningfully affec...

Eddy Vataru, portfolio manager for the Osterweis Total Return Fund, says that inflation will remain a hot-button topic for investors for several years because the Federal Reserve 'is going to have a really hard time getting 6 or 7 percent inflation down to 2, which is their longer-term target.' Vataru says that how the Fed accomplishes that and the tools they use to reduce inflation will go a long...

Author James Fok discusses his new book 'Financial Cold War,' about economic relations between the United States and China, noting that the longer current tensions linger, the worse the situation gets for both the countries and their citizens. Making the situation worse, Fok says, are that people in both countries are finding it harder to get by, and with politicians glossing over domestic issues...

Both JJ Kinahan and David Trainer gave takes on the Federal Reserve and its influence over the current stock market on today's show. Kinahan, the chief market strategist at TD Ameritrade, says that while he isn't expecting any real surprises from the central bank, the market is craving clarity and guidance before it will settle down and be less volatile and more predictable. Trainer, the founder a...

Technical analyst Michael Sincere says that the 13-year bear market has set the stage for a bear market on the horizon, though he doesn't know whether the next big decline will be steep and fast or a long, slow, two-bad-days, one-good-day pattern that maximizes the pain. Sincere says he is watching the 50-day moving average and will stay constructive on the market so long as the indexes are above...