Chuck Jaffe Interviews Bob Bacarella

The Big Interview

by Chuck Jaffe | Current Stock Market Dynamics

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Monetta Financial Services Chuck Jaffe interview

Current Stock Market Dynamics

Podcast: Monetta’s Bob Bacarella discusses current stock market dynamics with Money Life host Chuck Jaffe

June 7, 2018

In a recent interview with Chuck Jaffe on Money Life, Bob Bacarella, Founder and President of Monetta Financial Services talked about what’s happening in this secular bull market’s ninth year.

Bob said this long bull market has been “driven by low interest rates and rising corporate earnings—that’s the definition of a secular bull market. That trend continues. What happened was the current administration came into power and in effect gave an extra boost—extra time to go down this path.”

Bob explained we haven’t seen a pullback because corporate earnings are just beginning to reflect the impact of tax reforms and reduced regulations, which are spurring the economy to a new level. Stocks have continued to rise to the point valuations look extended. But on the other hand, he explained, there aren’t any clear disrupters right now.

Bob identified a mid-cycle cyclical expansion as likely to favor a narrow group of momentum-driven stocks—which is exactly what we’re seeing. Of the FAANG stocks, Bob said, “If you don’t own a handful of these stocks you’re lagging. Period. You have to stay there till the band stops playing, and right now it’s in the middle of the show.”

Bob said, “We are at a point where the market seems to be at a crossroads,”—and stressed later in the interview that “you have to have a strategy” for when a sharp correction comes. “It’s going to be scary,” he explained, so you “have to have a plan in place, ready to move in and take the appropriate investment action that you need so when stocks do recover you’re there in the best stocks that you currently follow.”

To listen to the full 17-minute audio recording, click here

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Monetta Core Growth Fund Holdings

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FAANG is an acronym for the market’s five most popular and best-performing tech stocks, namely Facebook, Apple, Amazon, Netflix and Alphabet’s Google.

Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.

Within the Chuck Jaffe audio transcript, Bob Bacarella expresses his belief that the educational component is second to none.

Portfolio holdings and composition are subject to change at any time and are not a recommendation to buy or sell any securities.

Mutual fund investing involves risk. Principal loss is possible. The Funds may make short-term investments, without limitation, for defensive purposes, which investments may provide lower returns than other types of investments. The portion of the Monetta Core Growth Fund that invests in underlying ETF’s that track the Index will be subject to certain risks which are unique to tracking the Index. By investing in ETF’s, you will indirectly bear your share of any fees and expenses charged by the underlying funds, in addition to indirectly bearing the principal risks of the funds. Growth-oriented funds may under-perform when growth stocks are out of favor. Please refer to the prospectus for further details. While the funds are no-load, management and other expenses still apply.

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Price-to-Earnings (P/E) is calculated by dividing the current price of a stock by the company’s trailing 12 months’ earnings per share.

Lynch, Peter, and John Rothchild. Beating the Street: a Special Edition for Worth Subscribers. Simon & Schuster, 1994.

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