Elliott Wave's Gilburt: Expect trouble when the current rally ends

12/22/23 • 62 min

Avi Gilburt, founder of the Elliott Wave Trader, expects the stock market to reach new highs, but thinks the current rally will carry to those record levels by no later than the second quarter of 2024, after which he says "a bear market is going to be in our future." Additionally, he says there will be a banking crisis that is part of the bear market, notig that systemic issues with the banking system will create trouble that "will likely be worse than what we saw in 2008," when troubles in the financials sector were cornerstone to the Great Financial Crisis. Brenda Langenfeld, portfolio manager for Nuveen, says that banking environment will actually create opportunities for investors in preferred securities, noting that heightened banking regulatory oversight will be favorable for credit investors, that positive fundamentals suggest stability and growth and that valuations are at levels "that present a capital appreciation opportunity over the next year." Also on the show: Charles Rotblut discusses the latest sentiment survey from the American Association of Individual Investors, which shows levels of bullishness at their highest levels in more than two and a half years, and portfolio manager Francisco Bido of F/m Acceleration brings his quant-active investment style to the Market Call.

Previous Episode

Bond fund legend Dan Fuss says this Fed has pulled off an all-time feat

Legendary bond fund manager Dan Fuss -- the vice chairman at Loomis Sayles & Co. -- says that while the Federal Reserve was "caught and delayed" in responding to inflation, he gives them "a whole lot of credit" for pulling the economy out of the doldrums while avoiding a crash, noting that this central bank's performance is among the most impressive for any central bank he has watched in his 60-plus year career. Fuss says the market is "fund, it is one of the most impressive accomplishments he has seen from the central bankers. Fuss expects the yield curve the return to normal, but he says long rates will not come down as much as investors might expect. He remains positive on U.S. markets, though he says stocks look pricy and the bond market is fundamentally solid, albeit thinner than it has been due to higher rates, a situation he expects to change once the Fed begins cutting rates in 2024. Also on the show, Chuck answers a listener's question on the state of 60-40 portfolios today; it's a follow-up question from an answer Chuck gave the same listener in April of 2021, at a point when investors were giving up on balanced portfolios ahead of changes int he rate cycle that have snice made the fixed-income portion of a mixed portfolio look much better. In the Market Call, Brian James, director of investments at Ullmann Wealth Partners, makes his debut talking funds and ETFs

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Baird's Stanek: Expect volatility as economy reverts to long-term trendlines

Mary Ellen Stanek, co-chief investment officer at Baird Advisors -- a firm known best for bond investing -- says the Federal Reserve has delivered better than expected results, and while there is plenty of expectation of a reasonably soft landing, buckle up and protect your portfolio because volatility won't be going away even as the economy and the market revert to their long-term historical trends for key indicators like growth, inflation and more. With just days left on the 2023 calendar, Kelly Lannan discusses Fidelity's annual resolution survey, which shows that struggles with inflation have more people looking at setting financial goals this year, although many may have lowered their sights in picking targets for the year ahead. Plus, hedge-fund manager Lukasz Tomicki of LRT Capital Management talks stocks in the Market Call.