Money Life with Chuck Jaffe

Darrell Cronk, chief investment officer for Wells Fargo Wealth and Investment Management, says that investors are wondering whether to add risk exposure to portfolios or remove it given a range of worrisome trends like inflation, interest rates, unemployment and much more, yet he expects the economy and stock market to do better than most observers are forecasting for 2022, because the economy is humming along at a pace that should stave off the concerns for a while longer. Also on teh show, Ted Rossman of CreditCards.com talks about the Consumer Financial Protection Bureau's new probe into buy-now/pay-later financing, Bob Powell of Retirement Daily discusses proposed changes to Roth IRA rules and how some of them might make investors want to do conversions before the year ends, and David Trainer of New Constructs opens the cup on Chobani -- the yogurt maker with the upcoming IPO -- and says he thinks the deal has already soured.

Liz Ann Sonders, chief investment strategist at Charles Schwab & Co., says that strong market performance in 2020 and '21 has masked downturns in most sectors and industries, meaning that there isn't so much pressure for upward trends to reverse in the year ahead. While she does see more volatility and changing leadership -- creating a good time for investors to rebalance portfolios -- she thinks that there remains room for market growth ahead. Also on the show, Nathan Briggs of Ropes and Gray discusses the new trend of 'follow-on offerings' for closed-end funds and how these capital-raising efforts have a mostly positive impact for shareholders, and Laura Adams talks about a survey from Finder.com showing that Americans are wasting billions of dollars on unwanted holiday gifts and what the recipients actually do with the less-than-ideal presents they get.

Two different market observers -- Patrick O'Hare, chief market analyst at Briefing.cmo and Andy Kapyrin, co-chief investment officer at RegentAtlantic -- say that while the Federal Reserve telegraphed its strategy for tapering bond purchases and raising interest rates, how it follows through will determine just how volatile and troublesome the stock market will be in 2022. Both say they expect more volatility and lower returns, but they note that if the Fed must get more aggressive with rate increases and other strategies, it could change the outlook for earnings growth, which would mute the market's ability to keep moving. Also on the show, Tom Lydon of ETFTrends.com picks an esoteric new fund from a hot fund company as his 'ETF of the Week,' and Dean Brauer of GoHenry.com -- a site dedicated to making children financially capable -- discusses the money lessons that can be distributed along with the gifts this holiday season.

Steve Sosnick, chief strategist at Interactive Brokers, says investors should expect market conditions to be more uncomfortable next year than they have been in 2021, calling for a return to volatility that will include air pockets that can drop the market suddenly, and for more than a few days. That said, Sosnick does not expect the current news cycle from the Federal Reserve to dramatically change the market for the remainder of this year. Also on the show, Ted Rossman from Bankrate.com discusses a survey showing the perils of lending money to friends and family, Chuck takes an audience member's portfolio question, and Stephen McKee of the No-Load Fund Mutual Fund Selections & Timing newsletter talks funds and ETFs in the Market Call.

Jason Browne of Alexis Investment Partners talks in the Market Call about the importance of changing asset allocations to overcome the low-yield environment, and maintaining the delicate balance between wanting to own funds that are the best in their category against the danger of moving in and out of funds too rapidly, Jill Gonzalez of WalletHub.com discusses the site's recent survey showing that consumers don't fully understand how deferred-interest programs work -- leading them to fall into classic financial traps -- and Vivian Tsai of the College Savings Foundation talks about how easy it has become for people to give a gift of college savings. Plus, we revisit a recent chat about the markets with Jack Ablin from Cresset Capital Management.

Rodney Brooks, personal finance columnist at U.S. News and World Report -- author of "Fixing the Racial Wealth Gap" -- says that for all of the causes behind racial and ethnic wealth divides in America, the biggest, best solution is not government programs but basic financial education, literacy combined with opportunities so that, in time, minorities will not hold a nickel's worth of generational wealth compared to every dollar held by white people. Also on the show, Charles Rotblut, editor of AAII Journal, discusses the current rise in neutral sentiment among investors, David Trainer of New Constructs offers up a holiday gift -- an attractive stock instead of the usual troublesome ones -- in The Danger Zone, and Ben Johnson, director of global ETF research at Morningstar, talks exchange-traded funds in the Market Call.

Doug Ramsey, chief investment officer at The Leuthold Group, says that stock market valuations are at levels last seen at the peak of the Internet bubble, but that the number of stocks trading at highs is broader than it was back then. With that in mind, he expects a "return towards sobriety' for the market ahead, with high-priced growth and technology stocks likely to get market down significantly in 2022, while financials, energy and traditional value stocks have much better prospects ahead. Also on the show, Zach Jonson of Stack Financial Management talks about the high-risk environment that he sees based on key technical indicators, Harin DeSilva of 361 Capital discusses the changing volatility picture and how it should make investors think about getting defensive, and potentially balancing their long positions with short ones, and fund attorney Thomas DeCapo of Skadden Arps covers the changing backdrop for activism in closed-end funds in The NAVigator.

Alan McKnight, chief investment officer at Regions Asset Management, says that with cash generating nothing, bond yields being paltry and interest rates and inflation on the rise, "it's not an easy market for allocators." McKnight says that his response for about the last six months -- despite heightened volatility and prospects for slower growth -- has been to overweight equities, tilted heavily towards domestic stocks, though he also sees developed international looking like more of an opportunity than emerging markets moving forward. Also on the show, Tom Lydon makes a top-rated municipal-bond fund his ETF of the Week pick, and, in the Market Call, Brent Wilsey of Wilsey Asset Management explains why he'd sell Apple shares -- despite liking the company and its products -- and the importance of properly valuing the businesses you are buying.

Neil Hennessy, president of Hennessy Advisors and the Hennessy Funds, says that despite legitimate worries over inflation, interest rates, the continuing pandemic and more, the economic underpinnings and stock market fundamentals are so strong that he believes the current rally has legs that will last well into 2022. He does expect pullbacks and corrections ahead, "but it's not going to be the end of the bull market." Also on the show, Freddy Garcia, of Left Brain Wealth Management discusses year-end moves investors should be evaluating before the timing gets tight, Matt Zajechowski or Northstar Inbound talks about a survey done for HomeAdvisor.com looking at the surprising amount that homebuyers spend correcting "mistakes" made by their home's prior owner, and Chuck talks about stocks for the Christmas stockings this year, and which companies might be appropriate gifts for the young-uns in your life.

John Waggoner, financial editor at AARP.org, says that the return of volatility has investors on the edge, expecting a downturn that feels overdue, but he notes that economic conditions and the market are strong enough that people should just calm down, look at diversifying and keep on plowing ahead. Waggoner also gives his take on crypto investing, emerging markets and much more in a wide-ranging Big Interview. Also on the show, Yelena Shulyatyeva, senior U.S. economist at Bloomberg Economics discusses the National Association for Business Economics December outlook survey, which forecasts full-employment for the country by the end of 2022, though the status is not likely to be achieved by conventional methods; in the Market Call, Jerry Parker of Chesapeake Capital -- one of the original Turtle Traders -- talks about riding trends and which stocks he likes in current market conditions.