Money Life with Chuck Jaffe

Adam Peck, co-founder of Riverwater Partners, says it's a buyer's market right now, especially in the small-cap space with stock prices having fallen to where there are more compelling values and real long-term opportunities. At the same time, he says in the Market Call interview that those conditions put a premium on sifting through the many potential buys to hone in on the right ones. Also on the show, Jim Cullen, founder of Schaefer Cullen Capital Management makes "The Case for Long-Term Value Investing'' -- which is the title of his new book, Kyle Guske from New Constructs talks about three zombie stocks with cash-flow issues so bad that their stocks could be headed to $0, and Megan Sanctorum discusses a recent study showing that people would need a surprisingly large win in the lottery before they would call it quits on their jobs.

Jeffrey Bierman, chief market technician for TheoTrade and founder of TheQuantGuy.com, says that "much of the dirty work is behind us," with the market now reaching a point "where the values are the most compelling I have seen in 25 years." Bierman last appeared on Money Life in December of 2021, and was extremely cautious, expecting the market to hit a low of between 3,600 and 3,800 on the Standard & Poor's 500 within six months. Bierman's model projects the S&P to drop to the 3,300-3,400 range, before building a base for recovery. "If interest rates can peak at some point and if money managers can get beyond staring at charts and start looking at value ... they are going to find that this is where millionaires are made, in these kinds of markets," Bierman says. Also on the show, John Cole Scott, chief investment officer at Closed-End Fund Advisors answers questions from listeners, Catherine Yoshimoto of FTSE Russell discusses the "Russell Reconstitution" that changes the firm's benchmark indexes at the close of business today, and Peter Tuz of Chase Investment Counsel talks growth investing in today's no-growth environment in the Market Call.

Jack Janasiewicz, portfolio strategist for Natixis Investment Managers, says that the market's drawdown and valuations have performed in line with expectations for a typical recession, and while the third key component of a slowdown -- a big decline in earnings -- hasn't happened yet, he says the market is closer to having fully discounted current events, meaning that "We are closer to the end" of the downturn than the beginning. Also on the show, Tom Lydon, vice chairman at VettaFi, makes a China ETF that has broken above its 50-day moving average -- but is still below longer-term measures -- his pick for ETF of the Week, Danetha Doe of Clever Real Estate discusses a survey looking at how ready homeowners are to accept and work with iBuyers, and Roger Conrad of Conrad's Utility Investor talks stocks in the Market Call.

Noted value investor Vitaliy Katsenelson, chief investment officer of Investment Management Associates -- who was on Tuesday's show discussing his new book, "Soul in the Game: The Art of a Meaningful Life" -- returns to the show for a discussion of current market conditions and notes that investors in bull markets see their time horizons lengthen, but that time becomes shorter when investors are facing a downturn and see their assets shrinking. He warns against allowing the current market troubles and the market's short-term gyrations to influence long-term plans. Also on the show, Ted Rossman discusses the latest CreditCards.com survey showing some surprising trends in how consumers are tipping in the post-pandemic environment, Ed Slott of IRAhelp.com is back to help Chuck answer a listener's question about setting up a tax-advantaged savings account for a newborn grandchild, and Jordan Kahn, chief investment officer of the ACM Funds -- manager of the ACM Dynamic Opportunity Fund -- makes his debut talking stocks in the Market Call.

Ben Hunt, chief investment officer at Second Foundation Partners and the publisher of Epsilon Theory, says investors need to reduce their debts and balance sheet and to "reconnect with the real economy wherever you can" in order to ride out the coming storm that he sees playing out while the stock market digests interest-rate hikes and measures designed to curtail inflation. While Hunt says he is rooting for the scenario where there's a quick recovery after "a nasty recession," he says investors need to prepare for something that's longer-lasting and worse. Also on the show, money-manager Vitaliy Katsenelson discusses his new book "Soul in the Game: The Art of a Meaningful Life", and Jason Browne of Alexis Investment Partners discusses ETF investing in the Market Call.

Veteran market observer Ralph Acampora, who helped develop market analytics and who is recognized as a pioneer in technical analysis, says the stock market had been setting up major tops for a while, with the charts implying that the downturn would be roughly 30 percent from top to bottom. With that in mind, Acampora foresees "at least another 10, 12, 15 percent for the Dow and the S&P 500 on the down side," before any real recovery can start. Also on the show, Larry Holzenthaler, investment strategist and analyst for Nuveen, says that senior loans have been one of the few places to avoid the pain in the fixed-income markets, and they feel like a safer haven and a surprisingly good value right now compared to most parts of the credit market, and portfolio manager Gary Bradshaw of the Hodges Funds talks blue-chip stocks and dividend-payers in the Market Call.

Michael Gayed, portfolio manager for the tactically managed ATAC Funds says the Federal Reserve should have raised rates even more than it did Wednesday -- when the central bank made its biggest rate hike in almost 30 years -- because market and economic pain is inevitable and could be long-lasting, but there is growth potential once the market passes the troubles and starts a new recovery. This show also features Tom Lydon, vice chairman at VettaFi.com, making a brand new fund his ETF of the Week, Jill Gonzalez of WalletHub.com discussing the site's latest survey which shows that consumers are looking at rewards cards as a way to deal with inflation, and Rob Lutts, president of Cabot Wealth Management, talks growth investing in the Market Call.

Victoria Greene, chief investment officer at G Squared Private Wealth, says that investors should look at where they can be best off given current global economic conditions, and says that will bring investors to large-cap domestic value stocks, and she notes that investors may not want to pursue broad diversification because the strategy tends to struggle during times of stress. "It only works when the market is working," she says, "and right now the market isn't working." She expects a recession in short order, though she believes most investors should stick with their plans rather than making moves in response to market conditions and headlines driven by volatility. Also on the show, Ed Carson, news editor at Investor's Business Daily, discusses the latest IBD/TIPP Economic Optimism Index, which showed that economic optimism is at its lowest point in over a decade, and the personal financial outlook has never been lower since the index was created in 2001. Mike Hunstad, global head of equity and quantitative strategies for Northern Trust Asset Management, discusses how proposed regulatory changes to ESG investing will help consumers know what they are buying, and why environmental, social and governance oversight -- particularly combined with factors like investing in "quality" -- should lead to superior returns over time, and author Hal Weitzman discusses his book, "What's the Matter with Delaware: How the First State Has Favored the Rich, Powerful and Criminal – and How it Costs Us All."

Dan Zanger, founder of Chartpattern.com, says "The 1970s are here again," bringing the dangers of persistent inflation back into play, creating long-term financial pain and putting the stock market in jeopardy of falling "50 to 65 percent before this is over." Zanger expects a protracted downturn, with no quick snap-back because the Federal Reserve can't prime the pump by lowering interest rates. "The sooner you get out and stay in cash," he says, "the better off you are going to be." Also on the show, author Eric Balchunas, discusses his recent book "The Bogle Effect: How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions," and Scott Bennett, founder of Invest With Rules -- a service that tracks and reacts to the actions of big-time mutual fund managers -- talks stocks in the Market Call.

Victoria Fernandez, chief market strategist at Crossmark Global Investments, says that a recession is coming, but it's not imminent due to the economy's underlying strengths, including active consumers, corporate balance sheets and the labor market. While waiting for a recession to arrive late next year, Fernandez says investors should be taking advantage of down days in the market to buy up names that are on sale and better balance a portfolio to get through trouble. Also on the show, Ed Slott of IRAhelp.com talks about whether the market's slow start to the year has made 2022 a particularly good time to consider converting traditional retirement accounts into Roth IRAs, Sara Foster of Bankrate.com discusses the site's recent survey on the emotions and financial stresses that consumers are living with now, and Kyle Guske of New Constructs puts a mutual fund that gets a good rating from Morningstar into the Danger Zone, noting that the fund's holdings have it headed for trouble.