Money Life with Chuck Jaffe

Anthony Caruso, head of ETFs and product strategy at Nomura Asset Management, says that while artificial intelligence is driving the market, it is also creating opportunities through its struggles, whether that is by punishing companies in industries like software, or forcing capital expenditures and more. He notes that there are strategies in playing the tight supply chains, particularly if investors are willing to consider emerging markets investments. Atthe same time, Caruso — who does not have recession in his outlook for the next year — says that with interest rates higher for longer, investors should take advantage of fixed-income to balance out a portfolio and help them ride out the volatility story.
Paula Fleming, chief marketing officer for the Better Business Bureau of Eastern Massachusetts, Maine, Rhode Island and Vermont, discusses savings strategies and the importance of knowing the rules for special days, weeks and weekends when states rescind their sales tax. There's one of those this coming weekend in Massachusetts — but Fleming notes that about half of all states have had some sort of tax-relief day in the last few years and 20 are holding them in 2026 — and Chuck discusses his shopping strategy and planned purchase to capture the discount on a big expense.
In the Market Call, Daniel Dusina, chief investment officer at Blue Chip Partners discusses "unappreciated quality stocks" and how even some big names that have run up still qualify.

Dean Christians, lead market strategist at Turning Point Market Research, sees a market that stays in a range-bound no-man's land — the way it has been for a few months now — until late in the year, when there's a strong chance of a year-end rally. Christians says there is a lot of sector rotation happening beneath the surface, with new areas picking up momentum while others, like technology, are losing steam. As a result, he says, "the best course of action is really not to do a whole lot," while waiting for the Federal Reserve to decide its course, which will have the biggest influence on what the market does entering the new year.
Meredith Mangan, managing editor at Credible, discusses the site's survey which found that nearly two-thirds of American homeowners underestimated the true cost of homeownership, and the result, on average, amounts to nearly $5,000 per year in unexpected ownership costs.
In the Market Call, David Snowball, publisher and chief analyst at MutualFundObserver.com, discusses the future of traditional mutual funds, the evolution of ETFs and how new funds today are different from classic offerings before getting down to some funds he likes and dislikes.

Jeff Klingelhofer, portfolio manager at Aristotle Pacific Capital, says that new Federal Reserve chairman Kevin Warsh is learning on the job, but he appears unafraid to tackle the inflation problem and take the tough medicine of raising interest rates, which is likely to create a recession. The good news out of that trouble, however, is that any downturn is likely to be short-lived, with a rip-snorting bull market emerging from a corrected economy and market. 
David Trainer, president at New Constructs, revisits Netflix, a long-time Danger Zone pick that he says has moved out of trouble. While it hasn't gone all the way to the "attractive" level, Trainer says there is a much stronger path toward bigger profits and a better balance sheet.
In "The Week That Is," Vijay Marolia,  chief investment officer at Regal Point Capital, discusses a little-known hedge fund that collapsed last week, and nearly took the stock market with it. While the fund was bailed out by another hedge fund, Marolia worries that there are other potential market-shockers out there, far more than even savvy investors recognize, and that there may not be any buffers to step in and save the day the next time it happens. In addition, he discusses how earnings expectations have gotten so high that long-term investors need to grit their teeth and ride out extra volatility, and he talks about how artificial intelligence is teaching investors to want everything now, shortening time horizons, promoting excessive risk-taking and creating unrealistic ideas of what real investing can deliver.

Christian Chan, chief investment officer at AssetMark, says that the overall macroeconomic environment is okay — growing above trend but not at exciting levels — but inflation is worrisome, which should have investors looking elsewhere for diversification and protection. The protection side is because he feels fixed-income investments are not as effective at diversifying risk in an inflationary environment. As a result, he is looking at adding precious metals to portfolios, but he also says increasing international exposure and moving from technology and moving toward energy and consumer-driven sectors should smooth out the ride in a volatile market.
In the Talking Technicals segment, Jason Brown of The Brown Report, says he remains bullish in the long-term, but he is bearish for the short term because he wonders "What remains that can take us higher?" Brown, who hosts the "Money, Markets and Mindset" podcast says while there are some positive signs keeping the market stable, "We might be due for a re-set." Factoring in inflation, oil prices, a divided Fed on rate policy and other economic danger signs, he expects the stock market to be trapped in a range, and potentially rolling over.
Scott Caraher, head of senior loans at Nuveen, says that the higher-for-longer interest rate environment has created "one of the most interesting and dynamic times" he has seen for senior loans in his 25-year career. Caraher, who manages Nuveen Floating Rate Income in both its closed-end and open-end forms, says that because senior loans don't face interest-rate risk, they are a powerful play in a market where Federal Reserve policy on rate direction is uncertain, noting that it's possible to create strong portfolios yielding about 7 percent, which he called "incredibly attractive ... on both an absolute and relative basis."

Economist Rebecca Homkes, a lecturer at Duke University and London Business School whose consulting practice focuses on the things that influence the thinking of chief executives, says that the valuations of A.I. companies are sky high because investors believe in the transformational technology, but that when that transformation shows up — and investors worry that an industry like software could get pinched in the transformation — investors tend to panic. She sees concerns that the A.I. funding cycle has become so circular that any troubles could unwind the market quickly, so while she is not expecting a recession or a bubble quickly, she does suggest danger signs are visible now.
Carter Braxton Worth, chief executive officer at Worth Charting — known by many as "the Chart Master" on CNBC — brings technical analysis to the Market Call, noting that he doesn't study companies, he studies shares. Worth notes that he currently favors small-cap financials, utilities and energy companies, and he warns of the "bifurcation of technology," where one area of the sector does very well while another one does very poorly, which he considers a sign of potential trouble ahead. This bifurcation is similar -- but with a technical analysis bent -- to Homkes' explanation of the wild market responses to AI stocks.
Todd Rosenbluth, head of research at VettaFi, brings the proverbial hammer of THOR to the ETF of the Week, bestowing the weekly title to a new income-focused stock fund  from Thornburg that carries that mythic ticker symbol.