Johnson's Andrew sees 'more negative outcomes than positive ones'

10/13/23 • 60 min

Brian Andrew, chief investment officer at Johnson Financial Group, sees more potential negative economic outcomes than positive ones, ranging from a likely recession to possible stagflation, which should keep investors cautious but looking for opportunities in the year ahead. While he worries about the troubles ahead -- particularly with two wars in the world right now -- Andrew says he does not expect a deep global recession, but something more isolated and affecting some pockets of the market -- like interest-rate sensitive businesses -- harder than the rest. Also on the showm, harder than others. Roxanna Islam of VettaFi discusses how ETFs that buy closed-end funds have held up in a year when closed-end funds have delivered high yields but low total returns and seen widening discounts. Dan Passarelli, founder/chief executive, Market Taker Mentoring says the market is currently stuck between its 50 and 200 day moving averages, which makes movement hard to determine but which is creating short-term volatility conditions that are favorable for traders. Plus Rob Thummel, senior portfolio manager at TortoiseEcofin, talks about hwo dividend-hungry investors are going to find what they want moving forward in the energy sector.

Previous Episode

Manulife's Thooft: Underweight U.S. stocks until you see 'value destruction'

Nate Thooft, chief investment officer at Manulife Investment Management, says that the strength of domestic stocks has been such that they are overpriced relative to international issues, which is why he has been light on U.S. equities of late. Thooft expects equity conditions to change at some point in the next year as a recession sets in, bringing with it "value destruction" that . Once that happens and there's been some "value destruction," it will be time to be more excited about stocks, but particularly the domestic issues. Also on the show, Tom Lydon, vice chairman at VettaFi, makes an active-income strategy his ETF of the Week, Matt Brannon discusses research from Clever Real Estate showing that one in four Americans is falling deeper into credit-card debt each month, and Clark Kendall, president of Kendall Capital Management, talks stocks in the Market Call.

Next Episode

ICON's Callahan: 'We're in a new market now'

Craig Callahan, founder and chief executive officer at ICON Advisers and the ICON Funds, says that he's not seeing the overpricing you'd expect at a market peak or the bargains visible in typical market bottoms, so he expects the market to "drift higher" over the next six to nine months. But those gains will be led by different stocks and sectors than what drove the market to gains earlier this year. Callahan says the market has turned since May 31, with energy leading, and economically sensitive areas like financials have been strong too; "that really narrow market that we didn't think made sense, it ended May 31st" he said. "We're in a new market now." Also on the show, Kyle Guske, investment analyst at New Constructs revisits a stock that has been in the Danger Zone for years, but that has rebounded well this year to set up the next round of troubles, John Cabble of J.D. Power discusses the firm's latest look into payment patterns and looks at the deteriorating credit situation for most Americans, and Bob Olstein, founder and chief investment officer at Olstein Capital Management discusses stock investing in the Market Call.