Stack's Jonson: 'It's going to be tough for the S&P 500 to make progress'

Zach Jonson, chief investment officer at Stack Financial Management, says that the top-heavy nature of the stock market -- with so few stocks driving the bulk of returns in 2023 -- is going to make it hard for the standard & Poor's 500 index to gain much ground this year, though he notes that as investors have been chasing the same small group of stocks in a few sectors, other "high quality parts of the market have become notably more attractive." He compared it to the tech bubble of the late 1990s -- "the last time you had concentration anywhere close to what you have now" -- where certain sectors that lagged while the bubble was inflating became bargains. As a result, Jonson suggested investors invest in the defensive areas that the market has left behind over the last year. Also on the show, Cheryl Pate, manager of the Angel Oak Financial Strategies Income Term Trust, gives her outlook for the banking sector this year and talks about the importance of focusing on credit quality as the rate cycle progresses, veteran financial journalist Allan Sloan discusses the lasting investment lessons from Charlie Munger -- Warren Buffett's right-hand man -- and Paul Daneshrad talks about his new book, "Money & Morons: How To Build Wealth And Protect Yourself From The Great Conflux."