Money Life with Chuck Jaffe

Famed value investor Joel Greenblatt, co-chief investment officer at Gotham Asset Management, explains how the market's changes haven't affected what he looks at in stocks, but stresses that value investors who insist on traditional measures like price-to-earnings or price-to-book ratios will not see the real bargains available now, even as the market returns to record-high levels. He explains how Amazon.com is a value stock now despite a massive 4-digit price tag, noting he thinks it could nearly double from here. Also on the show, David Trainer of New Constructs puts Carvana in the Danger Zone, saying the stock has all the earmarks of an imminent disaster, and Nancy Tengler of Laffer Tengler Wealth Management discusses stocks and her definition of value now in the Market Call.

JJ Kinahan, chief market strategist at TD Ameritrade, says that the virus and the election will dominate the market action for the remainder of the year and until they are settled, but he says that the election results may not shake things up much on the whole, instead hitting specific sectors hard. He notes that what happens in the House and Senate -- particularly if control of the latter shifts -- will have particular impact on the health-care and energy sectors. Also on the show, Bryan McGannon of US SIF discusses a controversial rules proposal that could limit or reduce investors' access to social investment funds in their retirement plans, Ted Rossman of CreditCards.com talks about the financial impacts -- and pitfalls -- from event cancellations, and Brian Bollinger of Simply Safe Dividends discusses the impact of dividend freezes cuts and suspensions on dividend-investing strategies in the current environment.

Jack Ablin, chief investment officer, says while market conditions are positive, investors need to be choosy because the current rally is not broad. To that end, he suggests that investors 'are better served by some individual selection,' both in stocks and bonds; he notes that the pandemic has highlighted the need for critical thinking, with stocks like Netflix and Disney that once were considered competitors on mostly equal footing now showing their big differences as the economy struggles to reopen. Also on the show, Tom Lydon of ETFTrends.com looks at the Standard & Poor's 500 in two ways as he picks two similar-but-different funds as 'ETF of the Week,' Laura Adams of Coverage.com talks about the stunningly high cost of adding teenagers to family auto insurance policies, and Eric Boughton of Matisse Capital says in the Market Call that most closed-end funds remain compelling values, allowing investors to buy valuable assets on the cheap..

Willie Delwiche, investment analyst at Baird, says that the market's technicals are sending a clear message that the market is in an uptrend that is likely to keep rolling, so that 'Getting really negative about the market right now doesn't make any sense.' In the Big Interview, Steve Rick, chief economist at CUNA Mutual group, notes that while he expected a recession in 2020, it was not for pandemic reasons, but the struggling economy actually addressed his concerns and so the weakness he anticipated won't stand in the way of a recovery from here.Also, Ismat Mangla of MagnifyMoney.com discusses their research into the dividend history -- freeze, cut, hold or increase -- of companies that furloughed workers or reduced payrolls during the coronavirus pandemic, and Noland Langford of Left Brain Investment Research talks stocks in the Market Call.

Avi Gilburt, founder of the Elliott Wave Trader, says he expects the Standard and Poor's 500 Index to hit 5,000 by 2022, and while he believes there will be a pullback before that rally starts, he believes there will be a 'global melt-up' that will dramatically lift global markets in 2021, allowing them to reach his long-term target the following year. Also on the show, Marc Chaikin: of Chaikin Analytics says that the market is only disconnected from the economy 'if you go by the old rules,' noting that unique times call for different guidelines and benchmarks. Chaikin says he will not fight either the Fed or the trend, notig that both are pushing the market higher and likely will keep it going that way into 2021 and beyond. Kasara Barto of Squaremouth.com joins Chuck to discuss about how travel insurance is working during the pandemic and who is actually using it now, and Jane Edmondson of EQM Indexes talks rules-based stock investing in the Market Call.

Dec Mullarkey, head of investment strategy at SLC Investments, says that the market's recovery has been largely bifurcated, with the FANG stocks benefitting from and fueling the run back to record highs while the rest of the Standard and Poor's 500 and the rest of the Standard and Poor's 500 has been struggling to recapture pre-pandemic prosperity. Mullarkey says that the market has reached the point where technology stocks have maximized their values and he expects a handoff from growth to value; the key for investors will be getting the transition right, thereby avoiding value traps. Mullarkey says that any market stalls or pullbacks could create buying opportunities. Also on the show, Greg Daco of Oxford Economics US discusses the latest National Association for Business Economics Outlook Survey -- out today -- which shows economists thinking the recovery will be long and slow and likely unfinished for at least two more years, Kyle Guske of New Constructs says that one of the stock market's biggest darlings belongs in The Danger Zone, and Chris Krumenacker of Bryn Mawr Trust discusses stocks in the Market Call.

The stock market may be back to record high levels, but Jeff Auxier of the Auxier Focus Fund notes that the rally has been narrow with just 6 percent of stocks at or near their peaks. Auxier believes the coronavirus pandemic has left many stocks in buying territory because it amounts to a 'fixable temporary problem,' the kind of thing that knocks down a stock price without impairing it permanently. Also on the show, Lawrence Holzenthaler of Symphony Nuveen discusses high-yield investing in a low-rate environment, and the disconnect between the how the equity and credit markets are thinking right now, Scott Kimball of BMO TCH Core Plus Bond Fund talks the broad fixed-income picture and Ted Rossman of Bankrate.com talks about the site's latest survey on how schooling decisions being made now are having a financial impact on the families dealing with them.

Eddy Augusten, investment committee chair at Concurrent Advisors, says that while the market looks stretched and risky -- with stocks and bonds both being expensive by some conventional metrics -- the economy is strong and showing signs that it can push the market higher. Augusten stressed the importance of looking beyond the standard numbers during times when numbers are uncertain and confusing. Also on the show, Tom Lydon of ETFTrends.com makes a new small-cap biotechnology fund his 'ETF of the Week,' Scott Thoma of Edward Jones discusses the changing ways Americans are viewing retirement, and Chuck answers three questions submitted by audience members.

Talley Leger, senior investment strategist at Invesco, says that while the stock market has been gaining speed and heading to new highs, it also has building headwinds that must be overcome -- but that can be conquered -- before the market can continue its recent rally. Leger suggested that investors will need to move away from defensive sectors and be ready to be more aggressive if the market can overcome its current obstacles. Also on the show, William Quinn, co-author of '"Boom and Bust: A Global History of Financial Bubbles' compares the current economic situation to historic market bubbles, and Stephen Dodson, manager of the Bretton Fund, talks about value investing in current market conditions and the need to stay focused on the long run in the Market Call.

Gene Peroni of Peroni Portfolio Advisors says that the market is signalling now that the worst of the coronavirus has played out and that there is something significantly more optimistic ahead of us. 'Indicators we are looking at see the market at substantially higher levels,' Peroni says, ultimately noting that the Dow Jones Industrial Average is likely to hit 36,000 before the end of the current market cycle, which he notes could last a few years. Hitting a contrasting note to that technical outlook is Markus Schomer, chief economist at Pinebridge Investments, who says that interpretation of current economic numbers is upside down. He notes that countries that had the worst second-quarter GDP numbers were those that shut down against Covid-19 most comprehensively, which means they can reopen with greater confidence, as opposed to countries -- like the United States -- that struggled to keep GDP numbers up but that did poorly against the virus meaning that its effects will linger on. Also on the show, Chuck answers some audience questions and Amy Arnott of Morningstar discusses gold and why investors flocking to it now should know its historical long-term impacts on a portfolio.