Money Life with Chuck Jaffe

Charlie Bobrinskoy, vice chairman of Ariel Investments and a noted value manager, says that he expects inflation to be more than 'transitory,' and that if prices start to rise, it could spell some trouble for growth stocks. Meanwhile, even with the markets around record-high levels, he believes there are still plenty of reasonably priced companies that should help value investors continue their re...

Rick Bookstaber, chief risk officer at Fabric RQ, talks about the changing face of risk in the current market environment, running from how rising inflation and interest rates play in to how the 'gamefying' of the market and the eruption of meme stocks that have defied traditional market forces has the potential to impact all investors, even the classic buy-and-hold types who avoid hot stock plays...

 David Goerz, chief investment officer at Strategic Frontier Management, sees trouble ahead for a market that is overvalued, with an economy that he believes is headed for trouble unless government spending is reduced and with a bond market that he finds troubling. Goerz expects the Federal Reserve to hike rates once this year, and says there will be four -- but as many as eight -- rate increases...

Marko Papic, chief strategist for the Clocktower Group, says that he expects an inflation surprise to the upside -- bigger than the market forecasts -- which is likely to upset the market, adding to volatility and limiting the forward potential for stocks. It has him looking to foreign markets to generate bigger returns for the remainder of the year and potentially beyond. Also on the show, Tom Ly...

Joe Terranova, chief market strategist at Virtus Investment Partners, says that the market's rebound from early-pandemic lows has investors tempted into concentrated portfolios, pursuing the hot sectors and big winners, but he says the remainder of the year will be about risk, and 'reintroducing diversification by asset class, geography, equity size class and strategy.' Terranova says he is optimi...

John Mousseau, chief executive officer and director of fixed income at Cumberland Advisors, says that worries about rising inflation are overblown given current conditions, and he says investors should expect higher inflation but only to the extent that it returns to pre-pandemic levels over the next year. Also on the show, Francesca Ortegren discusses a recent study done by Clever Real Estate sho...

Different analysts taking a fundamental and a technical view of the market both think that strong conditions will carry into the second half of 2021, but think returns may be muted compared to the last six months. Rusty Vanneman, chief investment strategist at Orion Portfolio Solutions, says that 'the growth rate of the growth rate' is slowing, which is likely to slow the market or at least make i...

Meb Faber, chief executive  and chief investment officer for Cambria Investments, says that the U.S. stock market's return to record high levels has given it little room to move forward from here -- with the exception of value stocks, which remain attractive despite a 'face-ripper' of a year -- but he believes that while investors can ride the current trends until they change, he notes that the bi...

Michael Falk of Focus Consulting Group -- who joins Chuck every three months to discuss the market, investing and his personal battle with Lou Gehrig's Disease -- responds to fears of rising inflation and interest rates, whether that changes his disdain for bonds, but also talks baseball, how the pandemic was a stroke of good fortune for him and much more. Also on the show,  Michael Dominguez, aut...

Wayne Wicker, chief investment officer for Vantagepoint Investment Advisors and ICMA Retirement Corp., says that despite concerns about inflation and interest rates creeping up  that have dampened market enthusiasm, he expects that 'the combined effects of better GDP and better margins are going to be good for equities over the next 12 months.'  He discusses the sectors and areas that he expects t...

Dave King, head of income and growth strategies for Columbia Threadneedle Investments, says that income-oriented investors should be revisiting a popular old strategy -- the Dogs of the Dow -- buying the highest-yielding stocks of the benchmark index. The strategy has fallen out of favor in recent years, while value investing has struggled, King says, but now is a good time to look for more yield...

John Kosar, chief market strategist for Asbury Research, says that the market is overextended as measured by a number of technical indicators, but breakouts visible this week in technology sectors suggest that there is meaningful ground to be made now, as much as 10 percent in tech stocks and sectors in short order. Also on the show, Rob Shaker of Shaker Financial Services discusses the state of c...

Jeffrey Kleintop, chief global market strategist for Charles Schwab and Co., says that the stock market is likely to have an inverse reaction to economic news, with bad news being greeted happily because it could prompt the Federal Reserve to unwind controls more slowly, whereas positive developments may be viewed as inflationary. These attitudes could lead to heightened volatility for the remaind...

More than nine in 10 retirees now agree that having a purpose -- and typically a purpose that revolves around family, but also on staying fit and active and possibly semi-employed -- is a key to a successful retirement, with the focus on purpose seemingly coming out of the slowdown and malaise of the pandemic. Scott Thoma from Edward Jones discusses those results from a recent survey, and how the...

Peter Chiappinelli, portfolio strategist at GMO Asset Management, says that the market is showing similarities to 1999, which proved to be a great market opportunity that ended in a bear market. Chiappinelli says that every bubble has expensive stocks, but also some wild speculators -- people he calls 'the crazies' -- who are wildly speculative and bullish. They arrived about a year ago, Chiappine...

Simeon Hyman, global investment strategist for ProShares, says that the ongoing spike in inflation will force bonds into a brief tailspin, but won't do much to damage equity markets, which he says are trending 'a little toward Goldilocks.' Also on the show, Catherine Yoshimoto of FTSE Russell talks about the upcoming, 33rd annual 'Russell Reconstitution,' and how it reflects broad changes in the m...

Eddy Vataru, portfolio manager for the Osterweis Total Return Fund, says that with the Federal Reserve acknowledging this week that higher rates are coming -- even if it's not for 18 months -- and working to manage inflation, it's clear that the central bank is starting to change its tune on stimulus and quantitative easing to avoid future problems. He notes that up to now, the Fed has been playin...

Doug Roberts, chief investment strategist for the Channel Capital Research Institute, says in the Big Interview that the Federal Reserve has made its plans clear, and that is that rates and inflation will rise in the next year or two, but they stopped short of any action that would make nervous investors leave the market now. He suggested that investors should stand pat with well-balanced, diversi...

Scott Wren, senior global market strategist at the Wells Fargo Investment Institute says that the big question dogging the market right now is whether the recent spike in inflation is transitory or longer lasting. He sees inflation staying high for most of the rest of 2021 before normalizing, meaning that the market's growth in 2022 is not likely to be curtailed by rising prices. Also on the show,...

Duane McAllister, portfolio manager for the Baird Funds, says that the Federal Reserve is likely to sustain its inflation projections but says that he doesn't expect interest rates to spike as inflation goes up, citing strong international demand and other factors as keeping rates in check. Also on the show, Jim Welsh of Smart Portfolios talks technical analysis, noting that he sees the market tak...

Peter Berezin, chief global strategist and director of research at BCA Research, discusses the "Crypto Impossibility Theorem' -- which states that cryptocurrencies will only be viable if they can offer a higher return than stocks, and why he believes that won't happen, and will lead to struggles that distract the market and slow appreciation. In the long run, he expects interest in cryptocurrencie...

Gargi Chaudhuri, head of investment strategy for iShares, Americas says that while the reopening is driving growth right now, she expects capital expenditure and infrastructure spending to keep the economy rolling into and through 2022. She also notes that while the pandemic shutdown was a global event, the reopening is happening in pockets which will mean that different regions -- and industries...

Talley Leger, senior investment strategist at Invesco, recognizes the various tunes the market is humming over inflation, interest rates and other concerns, but he looks at earnings growth and valuations and is singing a different tune, Frank Sinatra's 'The Best is Yet to Come.' He explains why in the Big Interview. Also on the show, Tom Lydon of ETFTrends.com makes a fund based on a famous invest...

Kathy Bostjancic, chief US financial economist, says the current recovery 'is what we've been waiting for' and is a story of spending and pent-up demand tempered by a global supply shortage that is generating inflation and symbolizes the bumps in the road that should temper  consumers' enthusiasm. Bostjancic notes that getting supply and demand rebalanced could take a year or more, with the meanti...

Lawrence Kotlikoff, an economist and the founder of Maxifi.com, says that the current increase in inflation is nothing compared to what he fears is coming, which he said could be several years of the high single digits all the way up to hyperinflation levels. Kotlikoff says that investors need to factor what inflation will do to the ability of their financial nest egg to maintain purchasing power...