Johnson's Ceci: Hard landing potential rises until rates start falling
Release Date: 04/29/2024
Midas' Winmill: Gold miners poised for a pop when the Fed cuts rates
Money Life with Chuck Jaffe
Thomas Winmill, manager of the , says that gold historically has a quick bounce after the first cut in a rate-cutting cycle, and he expects to see that gain in gold stocks — a fast uptick and then strong results lasting at least a year — whenever the Federal Reserve moves next. Winmill says that the market can keep climbing the wall of worry for a little while, but he expects struggles once current momentum fades. Leo Leydon, president of , says the technical indicators are suggesting that the Standard and Poor's 500 can hit 5,600 by the mid-fall, though he warns that there may be a...
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Touchstone's Thomas: The Fed needs a soft landing to hit inflation target
Money Life with Chuck Jaffe
Crit Thomas, global market strategist at , says that a no-landing situation for the economy will create problems for the Federal Reserve when it comes to hitting inflation targets, and for consumers who are renting, buying cars and more. Thomas noted that the current two-speed economy features a large group of consumers and businesses that have been less interest-rate sensitive and who have benefitted from current conditions, while a smaller group is struggling with high rates, as shown by higher delinquency rates and trouble signs. Thomas says that if the Fed can't get inflation down, the...
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Whitney Tilson on letting winners run as market hits new highs
Money Life with Chuck Jaffe
, editor at , says the current market conditions have made him "much more prone to let my winners run," and that investors should not take a market pushing to all-time highs as some sort of sell signal because in most times -- including today -- new highs are a positive, even if they inspire some nervousness and fear of new heights. Tilson says that investors should focus less on headlines and more on what drives markets, namely a strong economy and growing corporate profits. Ted Rossman discusses a new study -- done in honor of Mental Health Awareness Month -- which found that . In the Money...
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Ritholtz: 'What on earth is more bullish than all-time highs and record profits'
Money Life with Chuck Jaffe
Barry Ritholtz, chairman and chief investment officer at , says talk of stagflation and other potential economic woes is overblown, and that the economic data suggests that the economy will overcome the short-term headline distractions to perform reasonably well, even if consumers and investors feel dissatisfied living through periods of higher inflation and lower investment returns. He says the profitability and performance of companies are broadening, and that's happening right now, which should make investors bullish. Also looking at recent market highs as a good sign is Tom McClellan,...
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Allspring's VanCronkhite: Fed has 'missed the window' to goose market with cuts
Money Life with Chuck Jaffe
Bryant VanCronkhite, senior portfolio manager at , says investors have pushed the Federal Reserve into a box, to where central bankers will now be cutting rates into an environment of rising unemployment and slowing gross domestic product growth. Historically, he notes, the stock market fears those conditions rather than rewarding it, which means the market will be sorting out that problem through higher volatility while it waits for more certainty from the economy. VanCronkhite says investors should build protection into their portfolios by owning businesses with great balance sheets, moving...
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Argent's Stringfellow: 'Maalox Moment' should make investors more active
Money Life with Chuck Jaffe
Tom Stringfellow, chief investment strategist at , says that the market has reached a "Maalox Moment," where investors want to be invested but are nervous about the potential for a big drop, and they have to be willing to ride out their choices or they should be taking the safe alternatives of higher yields in fixed income. Stringfellow says that classic buy-and-hold investors need to be more active to feel comfortable today, noting "Just sit back and relax doesn't count." Buck Klintworth, senior portfolio manager at , says the market's technical indicators are not showing "the major shift...
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Franklin Templeton's Dover: 'We're driving our car hitting the gas and the brakes'
Money Life with Chuck Jaffe
Steven Dover, chief market strategist at — the — says that America's fiscal and monetary policies are sending mixed signals, "driving our car hitting the gas and the brakes at the same time." Fiscally, it's the gas, as shown by economic numbers, but the Federal Reserve is hitting the brakes, which makes it hard to figure out what's next, contributing to recent market whipsaw moves. Dover says current conditions suggest that investors should get out of cash and into assets that will do well when the market declines, because he expects a mild downturn and soft market at least until...
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Little Harbor's Thompson: 'Right now, the market is in a good place'
Money Life with Chuck Jaffe
Mike Thompson, portfolio manager at , sees heightened volatility ahead for the market, but says that recent concerns on big-picture items have seemed to ebb, giving the stock market room to run here. In the Big Interview, Thompson explains his firm's "risk-responsive investing" approach and the tactics it is drawn to in current economic and market conditions. Aniket Ullal, head of ETF data and analytics at , brings his firm's forward-looking, short-term ratings system to the Market Call, and Chuck takes on the latest statements from best-selling author and perma-bear Robert Kiyosaki, who over...
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Crossmark's Fernandez: Volatility will pick up as rate cuts are delayed
Money Life with Chuck Jaffe
Victoria Fernandez, chief market strategist at , says that she sees the stock market grinding higher through heightened volatility for the rest of the year as the Federal Reserve pushes rate cuts out to December or into 2025. Still, she expects "another shoe to fall" with the economy and the market, though that trouble likely is coming next year or beyond. By comparison, , president of , sees the market retesting record high levels in fairly short order, but he worries that the longer-term technical indicators suggest "a rocky two, three, four years" ahead, though he remains positive that...
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Edward Jones' Kourkafas prefers strong economy to market-boosting rate cuts
Money Life with Chuck Jaffe
Angelo Kourkafas, senior investment strategist at , says we are seeing a tug of war between the forces lifting the economy -- powered by excitement over artificial intelligence -- facing the stubbornness of inflation and the likelihood that the Federal Reserve will postpone rate cuts as long as possible, weakening the market. Kourkafas says he prefers the strong economy over rate cuts because it builds a strong foundation for corporate profits, which ultimately will drive markets higher, overcoming the short-term impact inflation and higher-for-longer interest rates are having on the...
info_outlineDominic Ceci, chief investment officer at Johnson Financial Group, says that while a soft landing has been priced into the stock market, sticky inflation is what could make things take a turn for the worse, noting that the longer inflation hangs around, interest rates won't be cut and that will lead to a rougher downturn. Ceci says interest rates are a driving force for stock markets, with an inverse relation where rates staying high would be bad for equities, while rate cuts would be a big plus. Also on the show: Lester Jones, chief economist for the National Wholesale Beer Association, discusses the Beer Purchasers' Index reaching its highest levels since 2021, portending a strong summer not only for beer drinkers but for the economy; David Trainer of New Constructs puts a Fidelity sector fund into the Danger Zone, and Mac Sykes, portfolio manager for Gabelli, talks financial stocks in the Market Call.