Money Life with Chuck Jaffe

Larry McDonald, publisher of The Bear Traps Report, said that he is expecting a bear market in the next six months, with the market falling by 15 to 25 percent during a downturn, noting that he does believe the decline could end with a recovery occurring during the election season next year. Mike Larson of Weiss Ratings -- editor of that firm's Safe Money Report -- said in the Market Call that he, too, sees trouble ahead, noting that the market 'is telling you to be defensive right now' and that he is roughly 40 percent in cash currently. Also on the show, Tom Lydon of ETFTrends.com made a fund that pays investors to own it -- thanks to a negative expense ratio -- his ETF of the Week, and Rob Scheinerman of AIG Retirement Services discusses how the student-loan debt burden is affecting new graduates.

Charles Biderman, founder of Trim Tabs Investment Research, said that many of the conditions that have kept the market happy and frothy during the latter stages of the bull run are now mostly mirages, creating the potential for a major correction that he could see happening despite 2020 being an election year. Also on the show, it's May 29 -- the day to celebrate 529 college-savings plans -- and Chuck discusses thos plans and how few people understand and use them with Deborah Goodkin of First National Bank of Omaha, he talks alternative investments in a rebroadcast of a Collective Wisdom from HighTower Advisors segment, and he covers funds and ETFs in the Market Call with Kevin Miller of the E-Valuator Funds.

In a wide-ranging show, Chuck chats with Dawn Gilbertson of USA Today about discount airlines and whether they are worth flying, chats with Robert Frick of Navy Federal Credit Union about the potential for recession before the presidential election, answers an audience question about couponing, and discusses brand-name stocks with Eric Clark of the Rational Brands fund.

J.J. Kinahan, chief market strategist at TD Ameritrade, said investors need to be worried about trade and tariff wars, should not forget about Brexit fallout and should be wary of the domestic market, but he still believes the current bull market has some room to run and that it remains the best place to search for strong returns. Kinahan appeared after Zach jonson of Stack Financial Management, who was less optimistic about the domestic market, warning that some of the market's technical indicators -- especially some that he believes most people overlook -- show the potential for a significant drop-off. Also on the show, Paula Fleming of the Better Business Bureaus talks about scams tied to veterans and Memorial Day, and Tom Plumb of the Plumb Funds talks growth stocks in the Market Call.

Craig Callahan, president of the ICON Funds, said that his measures show the current domestic stock market as standing roughly 9 percent below fair value, which translates into the market having that much room to grow roughly over the next year. Callahan said that financial stocks are the best bargains now, along with industrials and consumer discretionary issues. Also on the show, Tom Lydon of ETFTrends.com makes his pick for the ETF of the Week, Margaret Raymond of T. Rowe Price discusses new retirement-savings legislation proposed in Washington, and Justin Carbonneau of Validea discusses 'guru investors' in the Market Call.

Crit Thomas, global market strategist for Touchstone Investments, said that record profit margins for many companies here in the United States -- plus declining GDP growth -- raise questions on what kind of upside the domestic stock market has, so while he expects it to continue moving up modestly, he noted that investors seeking higher returns should look to emerging markets. Also on the show, the HighTower gang discusses a key, often-overlooked aspect of financial planning, Chuck answers a question appropriate for celebrating bitcoin Pizza Day, and Louis Navellier of the Navellier Funds talks growth investing in the Market Call.

Jack Ablin of Cresset Capital Management said that the market's daily ups and downs wind up looking like a straight line when investors back away and look at them through a long lens, rather than focusing on the daily news. With that in mind, he suggested tuning out the daily headlines on China and tariff wars, focusing on big-picture factors like economic growth and anticipating a market that can keep moving in a positive direction, although he did note that he believes there are better money-making opportunities in Europe and emerging markets than in the United States right now. Also on the show, Lawrence McMillan of McMillan Analysis gave his technical take on why the market may be due for a short-term decline, Ted Rossman of CreditCards.com discussed the perks that card shoppers are going for these days, and Harvard Business School professor Victoria Ivashina discussed her new book 'Patient Capital,' covering the benefits of very long-term thinking to solve the public's greatest challenges.

David Trainer of New Constructs said that investors might want to consider rotating away from small-cap growth stocks and funds because the space is over-run with unattractive stocks. In the 'Danger Zone' segment, Trainer noted that less than 10 small-cap growth funds -- and very few individual stocks too -- are earning his firm's very attractive rating, with the entire space of the market overpriced and do for an adjustment. Also on the 'National Be a Millionaire Day' show, Richard Carter of Fidelity Investments discusses ignorant ways that savers are leaving yield on the table when certain investments roll over, Tom Gandolfo of Three Bridges Financial Group talks markets, tariffs and trade, and Bill Smead of the Smead Value fund has the Market Call.

Two technical analysts -- Jim Welsh of Smart Portfolios and Avi Gilburt of Elliott Wave Trader -- said they expect the market to have a corrective rally from here, only to then fall to where the Standard and Poor's 500 is in the 2,600 range. Both suggested selling into rallies and becoming more defensive, and said it looks like gold is bottoming out and could be worth buying soon, though Gilburt ultimately expects the decline to be deeper and last longer. Also on the show, Matt Dreith of the Wasatch funds talks India, China and emerging markets, and Chuck discusses lasting lessons taught by the passing of his brother Rob, who would have turned 66 today.

James Abate, chief investment officer at the Centre Funds, said that conditions exist right now which could justify a correction of as much as 30 percent, but he noted that because market valuations are a big part of those dangerous conditions, any big decline is likely to be a long-term buying opportunity, as the strong underlying economy should ultimately keep the market buoyant. Moreover, while Abate can see a potential decline, he is not sure there is a current catalyst to spark it. Also on the show, Tom Lydon of ETFTrends.com talks about IPOs, Nalika Nanayakkara of EY Americas discusses how many financial-planning clients want to change their advisers, and Jean Young of the Vanguard Center for Investor Research discusses why so many people are moving into ETFs.