Money Life with Chuck Jaffe

Alan Gayle of Via Nova Investment Management says that while investors should be pleased with pleased with the market's rally from March lows, he expects trouble ahead, noting that the rally may be early given the prospects for real economic growth as the economy reopens from the coronavirus shutdown. 'We need to fell better,' he says in explaining why his cash holdings are up, 'but I don't think we can feel great at this stage.' Also on the show, Todd Rosenbluth of CFRA Research talks ETFs in the Market Call, Leo Leydon of Financial Focus Advisory Services says why he does not like the look of the market's technicals and is expecting a pullback, and Phillip Goldstein of Bulldog Investors discusses why a recent Securities and Exchange Commission decision could be a death knell for activist investing in closed-end funds.

Ken McAtamney, portfolio manager for the William Blair Global Leaders Fund, says that the resumption of activity and the unlocking of businesses means that, sequentially, the economy will pick up speed quarter after quarter. While the economy will resume a low-growth trajectory, the market can move forward and he says he expects it to do that while avoiding a major meltdown over the next few years. Also on the show, Tom Lydon of ETFTrends.com makes a new momentum-oriented fund his 'ETF of the Week,' Chuck answers an unusual question about using credit cards, and Craig Hodges of the Hodges Funds says in the Market Call that value and small-cap stocks have started a comeback.

Chris Huemmer, senior investment strategist at Flexshares, and the FlexShares Quality Dividend Index, says that dividend income streams may become disconnected with stock prices, and that investors shouldn't chase yield but also need to evaluate dividend cuts and suspensions to see if the moves are temporary or caused by real financial difficulties. Also on the show, author Chip Munn talks 'The Retirement Remix,' and Giorgio Caputo, senior fund manager and head of multi-asset value for J.O. Hambro Capital Management talks fixed-income investments and warns about the potential pitfalls of using business-development companies to increase yield now.

Jeffrey Bierman, chief market technician at TheoTrade.com, says that the stock market is completing a cycle and working its way toward a top, but that investors should be prepared for what happens next, which could be a 'garden-variety' pullback of about 20 percent, an extreme decline that re-tests recent lows or a move toward a 'zombie economy' and protracted, extended market trouble. While nothing in the market's charts and technicals suggests the doomsday scenario, Bierman notes that the magnitude of the worst downturns often catch experienced analysts by surprise. Also on the show, Jeff James of Driehaus Capital talks small-cap stocks, Rob Spivey of Valens Research makes his debut talking stocks in the Market Call, and Chuck answers a question about pet insurance.

Jason Browne, president of Alexis Investment Partners, says that investors should be tactical given current market conditions, which means having more exposure to stocks now -- at a point when economic woes will be revealed as the business world reopens -- than they did as the market was going through troubles at the start of pandemic conditions. Also on the show, Ken Tumin of DepositAccounts.com talks about short- and long-term savings rates, author Christopher Robertson discusses the nation's health-insurance system and its inadequacies, and David Trainer of New Constructs puts a mutual fund that he says isn't all it's cracked up to be into the 'Danger Zone.'

Bill Stone of Stone Investment Partners says that as the economy starts to crank up again, the market is likely to respond positively, even as investors know that the growth numbers will look good only because they're being compared against economic stoppage. Eventually, however, Stone says the market will want to see good numbers; because those numbers could be elusive, he says investors will want to maintain a balanced, diversified strategy while they see how any recovery unfolds. Also on the show, Trip Miller of Gullane Capital Partners talks value investing in the Market Call, John Kosar of Asbury Research gives his technical outlook, and Andrew Kerai of RiverNorth Capital Management discusses why he thinks the credit market offers a uniquely good opportunity now.

Tony Tanner, portfolio manager with the Aquila Group of Funds, says that the troubled economy and lower interest rates will hit the bond market and should convince investors to diversify their fixed-income holdings; unlike many bond-industry watchers, Tanner notes that he is not expecting a big wave of defaults, though he said credit-quality will be challenged. Also on the show, Tom Lydon of ETFTrends.com talks about hot pet-health companies with his pick for the ETF oft he Week, Ryan Breslow of Bolt.com discusses his firm's most recent survey on consumer behavior, and Tim Fortier of Drawbridge Strategies discusses what his Market Demand Indicator currently shows about where the market is headed.

Joe Quinlan, head of CIO market strategy for Merrill Lynch and Bank of America Private Bank, says that global public spending on health care has been stagnant for the last two decades, and the pandemic has highlighted infrastructures and governments that were not prepared to protect their people and deal with a crisis. While Wall Street has largely ignored the issues, he says there is a clear link between countries that have sufficient health care to maintain hope and the markets with the best returns, which is why he suggests focusing on developed markets, including the United States. Also on the show, Chuck tackles an audience member's question on rebalancing, Catherine Collinson of the Transamerica Center for Retirement Studies discusses how the pandemic is affecting long-term savings, and Peter Tuz of Chase Investment Counsel talks growth stocks int he Market Call.

Laura Geritz, chief executive officer at Rondure Global Advisors, says that the U.S. and China are holding up the world economy with their spending during the coronavirus pandemic, but she cautions that if those economies falter -- and they have little room to expand spending -- it will be hard to find stocks to buy there. She prefers countries with no reserve currency now, nations where she finds that the consumer has controlled their 'animal spirits' and there is room to grow spending, noting that most emerging markets but China qualify as having growth potential even amid slowing growth worldwide. Also on the show, Sarah Berger, writer at MagnifyMoney.com discusses how many consumers are already tapping retirement accounts to get through the viral economy, author Zachary D. Carter discusses 'The Price of Peace: Money, Democracy, and the Life of John Maynard Keynes,' and Chuck answers a question from an audience member on how to prioritize withdrawals from savings.

Jason Thomas, chief economist at AssetMark, says that the structural and societal changes and advancements that have allowed the economy to not be in more-significant trouble thanks to the coronavirus pandemic are also laying the base for an economy that ultimately will emerge strong, with stocks providing the best chance to come out ahead several years down the line. He notes that the United States -- despite the issues it faces -- is positioned 'to come out of this as one of the winners.' Also on the show, Matt Hougan of Bitwise Investments talks cryptocurrencies and how bitcoin is proving its value as an alternative to gold and a portfolio diversifier, Chris Vermeulen of The Technical Traders says the technicals show the market to be 'in a no-man's land between a bull and bear market' and while he expects a dip back to March lows, he believes there are good opportunities for traders. Also, Kelly Thompson of Direct Lending Deals talks about how the economic slowdown has affected the middle-market financing of business-development companies and how she expects BDCs to restructure and bounce back.