Money Life With Chuck Jaffe Daily Podcast

Marc Lichtenfeld, chief income strategist at The Oxford Club, says that lower-for-longer interest rates and bond yields that have had investors turning to dividend-paying stocks have helped push valuations to where investors are having a tough time getting good payouts, and that they might want to cast a jaundiced eye to investments where the yield is out of line with the market right now because companies that are unblemished are trading at premium levels, so the only bargains have some warts to worry about. Also on the show, Roxanna Islam of Alerian and S-Network Global Indexes discusses why closed-end fund distribution rates have been so high, even as most yields in investing are down, Kamaron McNair of MagnifyMoney.com talks about a survey in which a surprising number of respondents admit regrets over impulsive behavior -- including trading while intoxicated -- and Rob Lutts of Cabot Wealth Management talks about stocks and building a sound portfolio in the Market Call.

Thomas Winmill, manager of the Midas Fund, says that gold is where investors go to preserve capital when they think inflation is coming, and the underperformance of gold would suggest that investors think that rising consumer prices are temporary. Winmill notes that there has been inflation in housing and health care and in other key areas, as well as in commodities like aluminum, copper and cobalt - but not in precious metals. Still, he says that gold miners are attractive now as they are appreciating faster than equities and beyond inflation right now. Also on the show, Tom Lydon of ETFTrends.com makes a small-cap fund his 'ETF of the Week,' Mike Brown of Breeze discusses trends in voluntary insurance coverage and which groups are not protecting themselves against catastrophe, particularly in healthcare. And in the Market Call, Jordan Waldrep of Truemark Investment management talks low-volatility dividend investing.

Michael Power, strategist at NinetyOne, says that stock market valuations are stretched and bond yields are unsatisfying, but investors have no place else to go but the domestic markets. He expects a sell-off and downturn, but to end quickly. Ultimately, he believes investors will like the progress made over the next year, even though they will have to suffer through heightened volatility to reach that good news. Also on the show, Freddy Garcia of Left Brain Wealth Management discusses financial advisers who don't or won't put individual stocks into client portfolios, and Doug Cartwright, portfolio manager of the Buffalo Early Stage Growth (BUFOX ) talks small- and mid-cap investing in the Market Call.

Economist William Silber says that when investors have downside protection and the potential for limited losses against big possible gains, it is time to be a gambler and to be a little reckless. Silber whose new book out this week is 'The Power of Nothing to Lose: The Hail Mary Effect in Politics, War, and Business,' discusses the times when gambles and risk-taking make sense, though he notes that most of those speculations are more for entertainment than for building wealth. Also on the show, Rita Assaf of Fidelity Investments, discusses the firm's latest survey of parents on students on changing college-savings and planning, Chuck answers a question about the appropriateness of default choices in retirement plans, and Ivana Delevska, founder of SPEAR Invest, talks industrials and industrial-technology stocks in the Market Call.

John Blank, chief equity strategist and chief economist for Zacks Investment Research, says that valuations are high, but that the Standard and Poor's 500 is buttressed against a downturn by its biggest members -- the famed FAANG stocks plus Microsoft and one or two others -- that have price/earnings ratios of higher than 25, higher than the index p/e of 20. 'We have never had seven companies make up a quarter of [the index],' Blank says, 'and we have never had those seven companies driving 25 or 30 percent annual earnings increases.' Also on the show, Ted Rossman of CreditCards.com talks about back-to-school spending this year, and how more than one-third of all parents are feeling pressured to overspend this year, David Trainer of research firm New Constructs takes a bite of Beyond Meat and chews on the hot stock in the Danger Zone, and Tony Minopoli, president/chief investment officer at Knights of Columbus Asset Advisors makes his debut in the Market Call, talking stocks and stock-picking. 

Technical analyst Adam Grimes, president of Talon Advisors, says that he is generally bullish about the market right now, and that it 'would take a lot' to make him move to the short side and bet against the market. Instead, he anticipates a strong market move to the upside and says investors should be moving money aggressively to take advantage of buying opportunities. Also on the show, Mike Taggart of Taggart Fund Intelligence discusses the current state of closed-end fund consolidations and how two ongoing deals aren't particularly good for shareholders, and yet those individual owners have mostly allowed the deals to continue. And in the Market Call, Sandy Villere III of the Villere Funds talks about how he is maintaining balance -- and holding a little more cash than normal -- given current market conditions.

Zvi Schreiber, author of 'Money, Going Out of Style: The story of money and the mystery of its demise,' says that people are getting more money than ever but aren't moving it along and pushing it through the economy, opting instead to use money in speculative ways through investing, cryptocurrency and more, all of which has the potential to be economically destabilizing. He explains how dubious uses of money aren't providing economic value. Also on the show, Tom Lydon of ETFTrends.com makes a dividend-oriented issue that converted from a traditional fund into an exchange-traded fund his 'ETF of the Week,' Chuck explains what a dead-cat bounce is, and Pouya David Yadegar, founder of Prime Opportunities Investment Group talks stocks in the Market Call.

Anu Gaggar, global investment strategist for Commonwealth Financial Network, says that bank stocks -- mostly out of favor since the financial crisis of 2008 and hit hard by the coronavirus pandemic -- are showing signs that their strong recent recovery has legs despite the threats posed by potential hikes in inflation and interest rates. Gaggar notes that since the market bottomed in March 2020, banks have outperformed the Standard and Poor's 500 by over 25 percent, adding that the risk controls put in place during the pandemic should pay off now as balance sheets across the industry have improved. Also on the show, Catherine Collinson of the Transamerica Center for Retirement Studies discusses how the pandemic has affected workers' savings and habits, Chuck takes a question about managing required minimum distributions from an IRA, and Peter Tuz, chief executive officer at Chase Investment Counsel, says in the Market Call that while he sees the potential for choppy/down markets for the rest of the year, ther

Giorgio Caputo, senior fund manager at J.O. Hambro Capital Management, says that investors aren't being paid enough for duration or credit risk in their bond holdings, which is why the firm is leaning more toward equities to generate income and protect against the possibility of rising rates. Caputo says the equity allocation needs both companies that play defense against the current economic cycle, the potential for inflation and the spectre of rising rates. In the first interview today, Kerry Pechter, editor and publisher of Retirement Income Journal, discusses a crisis he sees brewing in the life insurance and annuity industry based on the 'Bermuda Triangle Strategy' being used by some companies to shift/reduce risk while goosing returns and/or buying back shares. Andf in the 'Book Interview,' venture capitalist Steven Hoffman talks about 'The Five Forces That Change Everything.'

David Trainer, president and founder of New Constructs, put Pinterest and Zendesk back in the 'Danger Zone,' noting that recent earnings misses for the companies could be what triggers the decline he has been expecting. Trainer says Pinterest has a downside of more than 50 percent, and that Zendesk is even worse at over 80 percent, though he notes the companies have survived previous troubles to remain at lofty valuations. Also on the show, Ram Subramanian of Discover discusses a survey showing how the pandemic made Americans realize how badly they are undersaved, Angel Williams, author of 'Finding Your Treasure,' talks about how to turn garbage into profits, and we rebroadcast a recent interview with Robert Frick, corporate economist at Navy Federal Credit Union.

Rick Schmidt, portfolio manager for Harding Loevner, says that investors may have a lot of macro worries -- from rising inflation and interest rates to coronavirus, the economy and more --  but he describes the big picture as being like the weather: 'We don't think we can predict it beyond a couple of days, but it's not silly to look out the window before you go outside. If it's raining, put up an umbrella ... But I'm not going to predict what's going to happen a week from now and try to invest on it.' Schmidt says that if you look beyond the headlines, there are plenty of promising investments with solid fundamentals available at reasonable prices. Also on the show, energy fund manager Brian Kessens of Tortoise Ecofin discusses the sharp rebound and future prospects for the energy space, Mark Hamrick, senior economic analyst for BankRate.com, discusses the unemployment/jobs picture and its bigger meaning for the rest of the year, and Todd Rosenbluth, director of ETF and mutual fund research for CFRA, talks e

Markus Schomer, chief economist at Pinebridge Investments, says in the Big Interview that worries over rising inflation and interest rates are significantly overblown, noting that the shortages behind price hikes should mostly be resolved by the year's end, and adding that there are no rate hikes in the Federal Reserves 'foreseeable future,' because the central bankers can't achieve their jobs/employment targets in a rising rate environment. Also on the show, Tom Lydon of ETFTrends.com highlights a new exchange-traded fund that is a pure play on companies mining and developing uses for cryptocurrencies, and Andy Braun of the Pax Large Cap fund talks stocks in the Market Call.

Ed Carson, news editor at Investor's Business Daily, says the latest IBD/TIPP Economic Optimism Index -- which overall was down again in the facing of concerns about rising inflation -- highlights the difference between investors and non-investors. He noted that the confidence measure showed a record 'optimism gap,' a difference of more than 15 percentage points between the number of positive investors compared to non-investors. Investors haven't just seen their stocks rise, but held more stable jobs and are pleased with the recovery, Carson said, while non-investors remain fearful. Also on the show, Brian Dress of Left Brain Investment Research highlights Crocs, a retail stock he might have ignored if not for the quantitative analysis discipline in the firm's process, author Katrina Dudley discusses 'Undiversified: The Big Gender Short in Investment Management' and how and why an influx of women money managers would be good for the industry and for investors, and Patrick Healy of Caliber Financial Partners t

Josef Schuster, president of IPOX Schuster -- a firm that tracks and evaluates initial public offerings -- says that the hot names like Robinhood that have been making headlines in IPOs have been the lesser opportunities right now, noting that lesser-known small- and mid-cap new companies have a greater probability of upside and are a better value. Schuster talks about the current IPO market, but also covers special-purpose acquisition companies (SPACs) and how they are changing the landscape for companies looking to go public, along with how both types of opportunity can fit into an individual investor's portfolio. Also on the show, Ron Surz, author of  'Baby Boomer Investing in the Perilous Decade of the 2020s,' covering the dangers he sees in target-date and life-cycle funds, and Chuck answers audience questions about moving averages, paying off mortgages, and combining funds, ETFs and closed-end funds in a portfolio.

Adam Abbas, portfolio manager and the co-head of fixed income for the Oakmark Funds, says that investors are seeing -- and must react to -- different types of inflation, starting with the quantifiable shortages creating 'bottleneck inflation' that is transitory, then 'easy money inflation' created by central bank policies and unprecedented economic stimulus, and that investors will still find fixed income useful in these times for consistent returns and protection of capital, even if rates are not particularly attractive. Also on the show, Kyle Guske of New Constructs discusses some popular stocks -- all of which have been highlighted previously in 'The Danger Zone' -- that look even more precarious after reporting their most-recent quarterly earnings, author Erika Benson discusses 'Land Investing Mistakes,' and Chuck answers two questions from audience members.

Zach Jonson, chief investment officer at Stack Financial Management, says that the market is reaching all-time highs with 'weaker and weaker breadth and more narrow selectivity,' and that this dichotomy indicates that the risk of a correction is rising. Jonson says that investors who are significantly overweight in equities due to the market's hot run over the last year might want to pull back now to avoid a potential crunch as they watch this skirmish between the market's fundamentals and technicals play out. Also on the show, Nicholas Marshi, editor at BDCReporter.com, discusses the current earnings season and why he sees a 'golden age' ahead for business development companies, Odeta Kushi, deputy chief economist at First American Financial Corp. talks about the changing dynamics of the housing and real estate market, and Michael Robinson, chief technology strategist for Money Map Press, talks tech stocks in the Market Call.

Lindsey Bell, chief investment strategist at Ally Invest, says that while the market has seen great numbers thus far this year, there is room to go higher -- potentially by double digits -- once the market has clarity on how the Federal Reserve will respond to inflationary pressures. Bell notes that there will be 'rockier days ahead,' but she is optimistic not only for the rest of 2021 but for next year as well, noting that most of the red flags are worrisome but not real triggers for  potential protracted downturn. Also on the show, Tom Lydon of ETFTrends.com makes a new fund from a big-name fund company that only just entered the exchange-traded fund space his pick as 'ETF of the Week,' and legendary financial talk-show host Moe Ansari of Compak Asset Management, lets Chuck turn the mic around on him as he talks stocks in the Market Call.

Veteran market observer Marc Chaikin, the founder of Chaikin Analytics, says that the market has been consistently making higher highs and higher lows since November of 2020, and that upward grind is likely to continue for at rest of the year -- Chaikin thinks the market will gain another 10 percent by year's end -- so investors who are worrying about problems and second-guessing the market's moves are hurting themselves and their portfolios. Also on the show, Ted Rossman discusses the latest Bankrate.com, which shows that the average consumer has more than a hundred dollars of unused (and potentially lost) gift cards at home, author Scott Jarred talks about his new book on how consumers can 'Future Hack' their financial lives, and Chuck answers a question from a listener who is unhappy with how former employers have been running his old retirement-savings plans.

Robert Frick, corporate economist at Navy Federal Credit Union, says that nervous investors are worried about numbers that are much more solid than they appear in headlines. Frick notes that retail sales, for example, could come down 5 percent from current levels and they'd still be booming. He sees strong economic growth even as the headline numbers start to reflect the movement from recovery mode to pre-pandemic normals. Also on the show, Adam Rozencwagj of Goehring and Rozencwajg  says that a decade-long bear market in commodities has ended and that there are strong signs for a bull market ahead, helped along by the localized supply shortages arising from the pandemic. And Jeffrey Hirsch, editor-in-chief of Stock Traders’ Almanac, says that the stock market is likely to see heightened volatility but mostly sideways movement through the fall. 

David Trainer, president and founder of New Constructs puts technology giants Amazon, Alphabet and PayPal in the Danger Zone this week, noting that the companies are among the companies in the Standard and Poor's 500 that are most likely to miss earnings estimates for the upcoming reporting season, thanks to investments in other companies that ultimately distort their financial picture. Also on the show, Chad Moutry discusses the findings of the July Economic Outlook survey released today by the National Association for Business Economics, author Christopher Cox talks about his book 'The Deadline Effect' and offers suggestions for how procrastinators -- like Chuck -- can get things done before the last minute, fixed-income manager Jerry Paul of ICON Advisers stops by for a bonus NAVigator talking opportunities for yield in closed-end funds, and Chuck answers an audience-member's question on federal account protections.