Money Life with Chuck Jaffe

David Lundgren, chief market strategist at Little Harbor Advisors, says he thinks the market could rally in the short-term but that it is showing signs of material weakness and is headed for bubble trouble. Lundgren, portfolio manager for the LHA Market State Shares ETFs, says that the market is building a bubble now, but it's not sending him to the sidelines because investors can make big profits during the expansion period. However, he says that unless economic rules are somehow suspended, "We have a very large decline on our hands coming down the road." Lundgren says no one can know when the bull market will end or what the bubble's burst will look like, but he expects at least a 20 percent decline. Meanwhile, however, he emphasized that a tactical investor should be trying to maximize gains now while "not getting too far away from the exits."
In the Book Interview, Peter Lazaroff discusses "The Perfect Portfolio:  A Proven Guide to Smart Investing for Long-Term Success," which is not about following one "right way" to have the ideal portfolio, but rather looks at how investors can find the right mix of investments — a mix that does not have to be extensive and complicated — to provide for the rest of their lives.
Plus, John Cabell, managing director of payments intelligence at J.D. Power, discusses the firm's  2026 U.S. Credit Card Satisfaction Study, which showed that the financial health among U.S. credit-card customers is getting worse. The study found that the average total credit card monthly spend across all cardholders in the study has gone up to $1,167, an increase of $109 from last year, although that may highlight an economic divide, as financially healthy customers spend up because they see increasing value from rewards and benefits while financially vulnerable consumers are feeling greater pressure from debt and rising fees.

Kristy Akullian, head of iShares Investment Strategy for the Americas at BlackRock — who says her job is to look at the economy and translate macro to markets and markets to investments — says that economic growth is strong, with numbers surprising to the upside in spite of firmer inflation, and while that has allowed the stock market to return to record highs, it should make investors nervous enough to want to diversify properly. "Higher rates that are the result of stronger growth are better for your portfolio overall," Akullian says, noting that it's why "we still have that optimism on the equity side of the portfolio" while adding that the higher yields are creating new opportunities in fixed income. Akullian says that she is "looking outside of traditional asset classes" to build in income and diversification in an era when "A.I. touches every part of your portfolio."
In "The Week That Is," Vijay Marolia, chief investment officer at Regal Point Capital, discusses the prospects for a Tesla-SpaceX merger — and whether it would be good for shareholders — after seeing Tesla unveil a rocket-powered roadster that got prediction markets buzzing on the prospect of a deal. Marolia also discusses how he is playing artificial intelligence amid sell-offs that have heightened market volatility and unnerved investors, and discusses the investment that he views as insurance against the volatile nature of the new technology. Plus, at a time when everyone is looking for ways to make their money go farther in the battle against inflation, Vijay says investors may be able to save themselves thousands by doing a simple re-evaluation on some of thir portfolio holdings.
David Trainer, founder and president at New Constructs, has been warning for a while now that some of the largest A.I. companies have so much hidden debt that they are less profitable than they seem. He thinks that trouble is coming to roost soon, in the form of lower earnings and more trouble for the Standard & Poor's 500, which is why he put the index in the Danger Zone this week. Trainer says the risk to earnings results puts valuations into question, and could be the trigger for a market correction or worse.

Ryan Dykmans, president and chief investment officer at Dunham & Associates Investment Counsel, is expecting a market downturn that comes "in large chunks," and while he is not sure of what will trigger it, he does think it won't be excessively far off. With that in mind, he discusses the importance of preparing for it today to avoid the potential to respond emotionally. Moreover, in "a much more meaningful and material drawdown," he says investors will "wish they had some dry powder." Dykmans also discusses what he expects on interest rates, the Federal Reserve and why he thinks a defensive, diversified portfolio posture makes sense even as the market continues running now.
Michael Kahn, senior market analyst at Lowry Research Corp., a CFRA company, says the market is already having a correction, with every index other than the major ones being down, and the big boys being held up by only a few large stocks. "This is a correction," Kahn says, "the question we have to answer is when it's going to end." If the market weakens from here, Kahn says it will be the largest stocks that don't hold up, but if things get better, smaller companies and broader participation will be what boosts returns. Kahn sees enough positives that he's not expecting a bear market, but instead is looking for indicators that the sliding has ended and the next leg higher is starting.
John Cole Scott, president of CEF Advisors, discusses third-quarter results in closed-end funds, noting that income held up at a time when prices were falling. Those price declines widened discounts in taxable bond funds to "the 99th percentile of cheapness," a level seen previously only during times of extreme market stress. Following those times previously, taxable bonds rebounded sharply, meaning the discount should be seen as a buying opportunity. Scott also discusses using hybrids like convertibles and preferreds, and which type of hybrid he prefers for current market conditions.

Lynette Zang, chief executive officer at Zang International, says that between inflation and other concerns, investors need to be more heavily invested into gold to protect their savings and the value of the time they put in to build their financial nestegg. Zang says there is enough uncertainty in the global economy and the international banking system to make real assets an appropriate store of value for hedging risks, thoguh she also cautions against investing in precious metals in any way other than holding the physical metal itself.
Author Jobert Abueva discusses "The Janus Plan: A No-Resolutions Path to Begin Your Year with Intention" Janus, the ancient Roman god of beginnings, gates, transitions, time, and endings is always depicted with two opposite faces, one looking forward to the future and the other looking back at the past. Abueva says that kind of multi-directional approach is central to achieving goals and changing the course of your life for the better. While the new year creates a good time for that kind of planning, Abueva says it can be successful at any time of the year, provided there is follow-through on the plan. 
 Jennifer White, senior director, banking and payments intelligence at J.D. Power discusses the firm's latest research showing that Americans' financial health may not be sustainable. The overall share of consumers who say monthly expenses feel less affordable than they did six months ago is steady at 43% but people who classify themselves as vulnerable and stressed are the most likely to say their usual monthly expenses are less affordable.

Michael Kelly, portfolio manager and global head of multi-asset at MetLife Investment Management, says the artificial-intelligence evolution has broad implications but has to this point been narrow in terms of how many companies it has impacted. That's a sign of how early into this cycle the economy is, and as the impact of A.I. starts to broaden, it will spill over into nearly everything else and will power the market higher through concerns and doubts. His advice is to buckle up and ride through the concerns and troughs, recognizing that shifts will occur but they will only slow progress, not stop it.
Deana Healy, vice president of financial planning and advice at Ameriprise Financial, discusses the latest results from the firm's "Flying Solo: Navigating Financial Autonomy" study, which found that while 89 percent of widowed Americans feel financially confident, 58 percent still wish they had someone to share financial decisions with. Well over 80 percent of respondents said they expect to remain financially solo, and that they would keep their finances separate even if they entered another relationship, but also said they have financial concerns about aging alone.
Plus, Chuck answers a listener's question about President Trump's proposal to give all Americans $5,000 if Republicans hold control of Congress in the midterm elections, but focuses his answer on how $5,000 is an achievable short- to mid-term savings goal for anyone who believes a check would be helpful but who doesn't think they wil be getting the money from the government.