Money Life With Chuck Jaffe Daily Podcast

Emidio Checcone, co-manager of the DoubleLine Equity Value Strategy, says that the recent value surge is just the start of what should be a long run where the value investment staples dramatically outperforms growth. Checcone notes that at the end of 2019, value was lagging growth by record margins, and that differential grew bigger by 35 percent in 2020 as the stock market took off. Now, Checcone sees value as bouncing back and notes that the recent outperformance by value -- which beat growth by 10 points in the first quarter and is up by about 7 points year to date -- seems 'pretty meager' compared to what he expects for months and years ahead. In the Market Call, Tucker Walsh of the Polen U.S. Small Company Growth Fund explains his firm's flywheel framework for finding stocks with outsized potential for gains. And Chuck starts the show by answering three questions from audience members.

Jeffrey Cleveland, chief economist for Payden and Rygel, says he expects the Federal Reserve to continue its aggressive and accommodative monetary policies through this year and potentially all the way to 2023, and he notes that whenever there is strong earnings growth with an accommodative Fed -- like we have right now -- tend to be good years for the market. Also on the show, Howard Gold of MarketWatch.com discusses his recent column suggesting that investors will mostly want to remain invested in domestic stocks, David Trainer makes AMC Entertainment the latest in his breakdown of meme stocks that he finds particularly dangerous, and Chuck answers an audience-member's question about allocating assets in a college-savings program.

Technical analyst Toni Turner of TrendStar Group says she is worried that the market has gotten back to record highs but that it has done it on low volume, noting 'when you get this quiet feeling' where everything seems perfect, almost any bad news could be a catalyst to drive the market back to support levels. In the Big Interview, John Johnson of Edgeworth Economics talks about how hard it is to size up the coming economic recovery and to determine which sectors and industry might lag behind as the economy lurches forward. In The NAVigator segment, Keith Ashton of Ares Dynamic Credit Allocation Fund talks about collateralized loan obligations and other alternative credit types that can improve yields while balancing risks, and in the Market Call, it's Mark Sebastian of Karman Line Capital and OptionPit.com talking stocks.

Frank Holmes, chief investment officer at U.S. Global Investors, says that inflation should be a key concern right now for investors and says that it is unavoidable given economic conditions, the massive government stimulus around the globe and more, but he doesn't think that inflation will derail the stock market because there will be strong economic growth for at least six months that will keep markets rolling. Also on the show, Tom Lydon of ETFTrends.com looks at net lease real estate investments with his 'ETF of the Week,' and Marketwatch columnist Brett Arends discusses how investors are living in a cycle where domestic stocks are popular because they are hot and hot because they are popular. In the Market Call, Simon Lack of SL Advisors talks energy and pipeline stocks.

Giorgio Caputo, head of multi-asset strategies for J.O. Hambro Capital Management, doesn't expect a huge jump in inflation, but he warns that anyone waiting for proof-positive of inflation, there's a good chance that their bonds will be underwater before they decide how to react. Thus, it is time today to create resilient portfolios that can manage through the risk, which he says means rotating to areas of the market that can benefit from a rising-rate and rising-inflation environment. Also on the show, Brian Dress of Left Brain investment Research discusses tax-collection/compliance firm Avalara and why he thinks it is a long-term builder of wealth, Ed Carson of Investor's Business Daily discusses another big jump in monthly investor optimism levels, and Jeff Auxier, manager of the Auxier Focus Fund talks value investing in the Market Call.

Jack Ablin, chief investment officer at Cresset Capital Management, says investors should expect big economic growth numbers in the second and third quarters -- fueled by the release of pent-up demand plus inflation pressures -- but notes that nominal GDP growth of roughly 10 percent in those quarters will be in the United States and not around the world, leading to what he called a 'lumpy recovery,' mostly driven by the domestic action. In the Market Call, Manny Weintraub of Spears Abacus talks about 'growth at a reasonable price,' or as he prefers to call it 'super great stocks that are not going to kill you.' And Chuck answers an audience question about the 60-40 portfolio and about changing asset allocations. 

Legendary stock market observer Roger Ibbotson -- whose landmark research is the basis for most people believing that large-cap stocks deliver 10 percent per year -- has said for years now that investors should not expect the future to stand up to the past. The chairman of Zebra Capital Management says in The Big Interview that low interest rates and other conditions will make it that the market is more likely to deliver about 8 percent on average over the next quarter century, still good but a significant drop off that must be planned for. Also on the show, Matt Schulz talks about a MagnifyMoney.com survey on how much Americans have been selling things out of their home -- and how much they have been making -- during the pandemic, David Trainer revisits GameStop -- which he liked prior to when it became a meme stock -- in the Danger Zone, and Mark Rank talks about his recent book, 'Poorly Understood: What America Gets Wrong About Poverty.'

Scott Kimball, portfolio manager of the BMO TCH Core Plus Bond Fund, says that there are some warning signs that the fixed-income market could be headed for trouble, including negative repurchase agreement rates between banks, which if they last long enough turn into 'an anvil  dangling over credit markets' heads' and could lead to severe consequences in a matter of months. Also on the show, Michael Naughton of Lord, Abbett discusses the benefits of taking liquidity risk as a means of increasing yield, and how interval funds can help in that effort, Charles Rotblut of the American Association of Individual Investors discusses the current wave of optimism among investors, showing up in both bullish sentiment and in the heavy percentage of their assets being put into stocks, and Bill Kornitzer of the Aperture International Equity Fund talks international stocks in the Market Call.

Jack Janasiewicz, portfolio strategist for Natixis Investment Managers, says that over the last three months you have seen a rolling correction in technology and growth stocks, which has also expanded into energy, and most recently into small-caps. All have had draw-downs of more than 10 percent, but he says that other sectors have held up the market and are a good sign that the market can keep pushing forward strongly from here. Also on the show, Tom Lydon of ETFTrends.com goes all the way to Egypt and the Suez Canal to find inspiration for his ETF of the Week, David Botset discusses the way that investors view and use exchange-traded funds as measured by the 10th edition of Charles Schwab's ETF Investor Study, and Han Smith of The Haverford Trust Co. talks large-cap stocks in the Market Call.

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 -- talks about how he would set up a portfolio that his family (and yours) could live with forever, discusses why the classic 60-40 portfolio will disappoint investors and much more in an extended Big Interview. Also on the show, Alan McKnight, chief investment officer at Regions Asset Management, gives his take on markets, interest rates, inflation and more and, in the Left Brain thinking segment, Freddy Garcia of Left Brain Wealth Management discusses how the firm's value statement is so essential to picking and managing portfolios of growth stocks.

Craig Callahan, chief executive officer at ICON Advisers, says that the broad market is trading roughly five percent below its fair value, which is a good target for returns over the rest of the year. Callahan is excited by the earnings forecasts for 2021 and 2022, citing 'outrageous year-over-year growth rates' as a reason to believe there will be good value stocks to be had. Also on the show, David Keller, chief market strategist at StockCharts.com, says that 3700 is a 'line in the sand' for the Standard and Poor's 500 Index, noting that if the market can remain above that level it should be able to avoid a significant downturn during the current rotation from a technology and large-cap  driven market to one led by small-caps and value stocks; Greg McBride of BankRate.com discusses the high percentage of investors who believe the stock market is rigged, and Mike Bailey of FBB Capital Partners talks stocks in the Market Call.

Robert Michaud, chief investment officer at New Frontier Advisors, says that reports on the death of the classic 60 percent stocks/40 percent bonds portfolio are greatly exaggerated, although he notes that the types of stocks and bonds that make up each part of the allocation are changing to keep pace with lower-for-longer interest rates and the changing stock market picture. Also on the show, David Trainer of NewConstructs.com takes on another company that has been getting a lot of pre-IPO buzz in the Danger Zone, Melanie Lieberman of ThePointsGuy.com discusses what many consumers want to see before they travel in a post-pandemic world, and Lamar Villere of the Villere Funds talks stocks in the Market Call.

Kevin Mahn, president and chief investment officer at Hennion and Walsh, says that valuations are stretched and growth could be hard to find, but a new period of economic expansion coupled with a shift in market leadership -- with small caps and more coming to the fore -- will create new investment leaders for investors to pursue. He sees the rebound from coronavirus leading into a multi-year economic expansion. continuing for several years. Also on the show, Adam Grimes of MarketLife Trading and Talon Advisors says that there are few troubling technical signals suggesting any reason to lose confidence in the current bull market, which he also expects to be a multi-year move. In The NAVigator segment, Craig Packer of Owl Rock Capital talks about business-development companies and how the BDC loan market has been impacted by the pandemic, and Ryan Jacob of the Jacob Funds talks technology stocks in the Market Call.

Two wide-ranging and very different Big Interviews both touch on bitcoin today with Giles Coghlan, chief currency analyst for HYCM, talking about how the skyrocketing price of bitcoin has impacted gold, how the cryptocurrency is increasingly viewed as a digital substitute for physical gold and the correlation between the two, especially with inflation on the horizon. Meanwhile, Scott Knapp, chief market strategist for CUNA Mutual Group, talks about how investors should be reacting to current market rotation, but also discusses where bitcoin can and should fit into the portfolio of working-class savers who are long-term investors rather than speculators. Also, Tom Lydon of ETFTrends.com heads to Japan for smaller companies and greater diversification with his 'ETF of the Week.'

Noted value manager Abhay Deshpande of Centerstone Investors actually compares value stocks to toilet paper, noting that you might not be thinking much about them when market growth is humming along, but at other times they become really precious. Right now, Deshpande says, there are plenty of good values to be found in the market, so long as you are mostly willing to avoid the technology stocks. Also on the show, Janice Quek of Left Brain Investment Research discusses Skillz Inc. as a high-growths tock that won't look quite right until it generates profits, Melissa Ridolfi of Fidelity Inc. talks about the firm's research on how retirement investors believe the pandemic has impacted their long-term savings, and Martin Leclerc of Barrack Yard Advisors talks stocks in the Market Call.

Andrew Chanin of the Procure Space ETF -- ticker symbol UFO -- discusses how NASA's Perseverance mission to Mars has stoked interest in space as the next frontier in investing, and talks about how investors can keep their head in the stars but their feet on the ground when listening to fantastic stories of future potential. Also on the show, Jerremy Newsome of RealLife Trading talks technical analysis and says that he is loading up on some tech stocks that have been beaten up in the latest NASDAQ setback, particularly on hot names like Tesla and Teledoc that have seen some of the biggest setbacks, Ilan Kolet of the National Association for Business Economics covers the group's latest survey on when inflation and interest rates are likely to increase, and Robert Zuccaro talks about his new book, 'How Wall Street Reshaped America's Destiny.' 

Martin Fridson, chief investment officer at Lehmann Livian Fridson Advisors says he expects the Federal Reserve will get inflation up to its target of 2 percent, but that investors shouldn't expect much more than that despite the inflationary impact of economic stimulus, because there isn't rising pressure on wages that would be necessary to take inflation to problematic levels. Fridson discussed where he is turning to for yield now. Also on the show, Matt Hougan of BitWise Investments answers audience questions on bitcoin investing, Kyle Guske of New Constructs discusses a mutual fund with a stylle problem and a penchant for dangerous stocks, and Chris Krumenacker of Bryn Mawr Trust talks stocks in the Market Call.

Markus Schomer, chief economist at Pinebridge Investments, agrees with the many observers who expect a booming economy as the coronavirus pandemic comes to an end, but he says that once the stimulus stops what will be left is an economy that is less productive with a lower long-term sustainable growth rate. While he doesn't expect runaway inflation or dramatically higher interest rates, digesting the growth will lead to weaker equity markets down the line. Also on the show, John Miller, head of municipals at Nuveen, discusses the surprisingly strong financial position that states and communities are in as the pandemic winds down, Ken Berman of Gorilla Trades gives his technical take on the market and John Barr of the Needham Growth and Needham Aggressive Growth funds talks stocks in the Market Call.

Robert Frick, corporate economist at Navy Federal Credit Union, says the economy will deliver stellar economic growth but that the deep hole it is coming out of will make progress slow, which is actually good news in that it means the pandemic recovery should last longer. Frick believes that inflation worries currently are overblown, saying that so long as unemployment is high and wage growth is low, significant inflation will have a tough time finding a foothold. Also on the show, Tom Lydon of ETFTrends.com says that pent-up demand should spark the retail industry, so he makes a retail specialty fund his ETF of the Week, Matthew Schultz discusses a LendingTree survey showing that many Americans save a few bucks by mooching their online services from the accounts of others, and Mike Larson of Weiss Ratings -- editor of Weiss' Safe Money Report -- talks stocks in the Market Call.

Jurrien Timmer, director of global macro at Fidelity Investments, says the 'reign of large-cap growth stocks may actually be ending,' with a weaker dollar and the first signs of rising inflation and the potential for higher interest rates triggering a market rotation that will favor small-cap, value and non-U.S. stocks. He also discusses the need for investors to start adjusting to inflation now, rather than waiting for its full-blown onset which he thinks will happen after a burst of economic growth and the 'return to normal.' Also on the show, Mark Hines of Left Brain Investment Research talks about real estate investment trusts and highlights New York Mortgage Trust is an income stock with growth prospects, and Ed Slott of IRAhelp.com, discusses his latest book 'The New Retirement Savings Time Bomb' and discusses how today's political climate should have investors more concerned than ever about how taxes will impact their lifetime savings precisely when they need the money most.