Money Life with Chuck Jaffe

Meb Faber, chief executive and chief investment officer for Cambria Investments, says that the U.S. stock market's return to record high levels has given it little room to move forward from here -- with the exception of value stocks, which remain attractive despite a 'face-ripper' of a year -- but he believes that while investors can ride the current trends until they change, he notes that the biggest opportunities are around the world right now. He notes that most people are too focused on America in their asset allocations, but they now are looking at cheaper names and bigger growth potential abroad. Also on the show, Tom Lydon of ETFTrends.com makes an actively managed financial-sector fund his 'ETF of the Week,' and Chuck Carlson of Horizon Investment Services and The DRIP Investor, talks about the art and science of selecting stocks using his firm's Quadrix system 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 -- responds to fears of rising inflation and interest rates, whether that changes his disdain for bonds, but also talks baseball, how the pandemic was a stroke of good fortune for him and much more. Also on the show, Michael Dominguez, author of 'Armchair Real Estate Millionaire' discusses how the pandemic and the hot housing market have changed things for income-oriented property buyers, and Marina Gross of Natixis' Portfolio Research and Consulting Group talks about how financial advisers are bridging the gap between their own realistic market expectations and the wild hopes of clients/individual investors.

Wayne Wicker, chief investment officer for Vantagepoint Investment Advisors and ICMA Retirement Corp., says that despite concerns about inflation and interest rates creeping up that have dampened market enthusiasm, he expects that 'the combined effects of better GDP and better margins are going to be good for equities over the next 12 months.' He discusses the sectors and areas that he expects to lead the way higher and those he wants to avoid in The Big Interview. Also on the show, Chuck discusses his feelings about cost-to-yield on dividend-paying stocks, Ted Rossman talk about a Bankrate.com study on how much investors saved from remote work during the pandemic and how much they could suffer financially from the return to normal, and Gary Bradshaw, co-manager of Hodges Blue Chip Equity Income, covers stocks that he believes will be consistent performers in the Market Call.

Dave King, head of income and growth strategies for Columbia Threadneedle Investments, says that income-oriented investors should be revisiting a popular old strategy -- the Dogs of the Dow -- buying the highest-yielding stocks of the benchmark index. The strategy has fallen out of favor in recent years, while value investing has struggled, King says, but now is a good time to look for more yield out of large-cap stocks. Also on the show, David Goodsell of the Natixis Investment Managers' Center for Investor Insight discusses survey data showing that average American investors are expecting historically high returns from stocks -- above 17 percent before inflation -- for the year ahead, David Trainer of New Constructs talks about an accounting problem that misstates the financial condition of many companies and, in the Market Call, Brian Frank of the Frank Value Fund talks 'absolute value' and whether the current market leaves any stocks that meet his tough valuation standards.

John Kosar, chief market strategist for Asbury Research, says that the market is overextended as measured by a number of technical indicators, but breakouts visible this week in technology sectors suggest that there is meaningful ground to be made now, as much as 10 percent in tech stocks and sectors in short order. Also on the show, Rob Shaker of Shaker Financial Services discusses the state of closed-end fund discounts, and how current conditions appear to be a repeat of what the industry saw after the financial crisis of 2008, Byron Reese discusses his new book, 'Wasted: How We Squander Time, Money, and Natural Resources-and What We Can Do About It,' and Daniel Kern, chief investment officer at TFC Financial Management, talks funds and ETFs in the Market Call.

Jeffrey Kleintop, chief global market strategist for Charles Schwab and Co., says that the stock market is likely to have an inverse reaction to economic news, with bad news being greeted happily because it could prompt the Federal Reserve to unwind controls more slowly, whereas positive developments may be viewed as inflationary. These attitudes could lead to heightened volatility for the remainder of the year. Also on the show, Tom Lydon of ETFTrends.com makes a real-asset play his ETF of the Week, Greg McBride of Bankrate.com discusses how investors currently and implausibly favor real estate and cash over stocks as a long-term investment, and Sam Hendel of Easterly Investment Partners talks about value investing in the Market Call.

More than nine in 10 retirees now agree that having a purpose -- and typically a purpose that revolves around family, but also on staying fit and active and possibly semi-employed -- is a key to a successful retirement, with the focus on purpose seemingly coming out of the slowdown and malaise of the pandemic. Scott Thoma from Edward Jones discusses those results from a recent survey, and how the pandemic has made people reset, reconsider and reprioritize their retirement plans. Also on the show, Brian Dress of Left Brain Investment Research examines Revolve Group, an online retailer with growth prospects beyond the reopening that make it an ideal recovery play, Ray Kennedy of Hotchkis and Wiley talks high yield investing specifically and fixed-income more broadly, and Randy Warren of Warren Financial mixes fundamentals, with top-down analysis and some technicals to select stocks in the Market Call.

Peter Chiappinelli, portfolio strategist at GMO Asset Management, says that the market is showing similarities to 1999, which proved to be a great market opportunity that ended in a bear market. Chiappinelli says that every bubble has expensive stocks, but also some wild speculators -- people he calls 'the crazies' -- who are wildly speculative and bullish. They arrived about a year ago, Chiappinelli says, and it's a sign that the market rally has reached its final stages. Also on the show, Gene Peroni of Peroni Portfolio Advisors talks about why technicals show signs of a sideways, range-bound market for the summer, Josh Cohen, head of institutional defined contribution for PGIM, discusses the current status and future of retirement savings programs, and Chuck answers a question about short squeezes and whether investors should jump into them.

Simeon Hyman, global investment strategist for ProShares, says that the ongoing spike in inflation will force bonds into a brief tailspin, but won't do much to damage equity markets, which he says are trending 'a little toward Goldilocks.' Also on the show, Catherine Yoshimoto of FTSE Russell talks about the upcoming, 33rd annual 'Russell Reconstitution,' and how it reflects broad changes in the market, Kyle Guske of New Constructs puts a Chinese IPO in 'The Danger Zone,' and Mark Yusko, chief investment officer at Morgan Creek Asset Management, talks about current investment themes and exchange-traded funds in the Market Call.

Eddy Vataru, portfolio manager for the Osterweis Total Return Fund, says that with the Federal Reserve acknowledging this week that higher rates are coming -- even if it's not for 18 months -- and working to manage inflation, it's clear that the central bank is starting to change its tune on stimulus and quantitative easing to avoid future problems. He notes that up to now, the Fed has been playing with 'the same playbook' it has used in past downturns and crises, but that the current situation involves a faster snap-back and recovery period, and that the Fed's playbook has been amped up by aggressive stimulus, which he says needs to change to avoid future market problems. Also on the show, Howard Dvorkin, chairman of Debt.com, talks about how people can make the most of Amazon Prime Days next week without letting the urge to splurge get the best of them, Daniel Ashcraft of Gateway Investment Advisers talks about using covered-call strategies to get more consistent results during times of heightened volatility, and Lauren Hill, research analyst and portfolio manager at Westwood Investment Management talks large-cap stocks in the Market Call.