Schwab Network
4,326 episodes - English - Latest episode: 13 days ago - ★★★★★ - 23 ratingsSchwab Network is brought to you by Charles Schwab Media Productions Company (CSMPC), a subsidiary of The Charles Schwab Corporation and not a financial advisor, registered investment advisor, broker, or futures commission merchant. THE SCHWAB NETWORK SITE, CONTENT, APPS, and RELATED SERVICES, ARE ON AN “AS IS” AND “AS AVAILABLE” BASIS, WITHOUT WARRANTIES. Not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction. ©2024 CSMPC. All rights reserved.
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Episodes
Crude Oil Price Climbs Back Above $70
March 28, 2023 16:27 - 8 minutes - 104 MBThe crude oil price climbed back to $70 and is a 38% retracement. Are markets calming down after the 2-year move and regional bank crisis? Chris Robinson weighs on the waiting for information and fear-driven market. Selling has ceased a bit as crude oil is off the $65 lows. Are traders getting caught up in 1 minute charts?
Will Tightened Lending Standards Bring Inflation Down?
March 26, 2023 20:04 - 8 minutes - 76.6 MB"I think banks will focus on liquidity and their balance sheets, which will tighten lending standards. The Federal Reserve understands this dynamic as it could bring inflation lower. Also, the Fed is close to the point of pausing their interest rate hiking cycle," says Daniel Eye, CFA. Then he provides his stock picks: AVGO, DVN, and WEN.
57% Chance Of A Recession In The Next Year
March 26, 2023 18:17 - 8 minutes - 90.8 MB"The New York Fed publishes an implied probability of a recession that is based on the interest rate curve. As of today, that chance is 57% in the next 12 months, and this is higher to any point prior to 2008. Another indicator is an inverted yield curve. However, I am encouraged that global leaders are stepping up to manage the situation," says Matthew Peterson.
Long-Duration Bonds Are The Way To Go
March 26, 2023 15:29 - 9 minutes - 96.5 MBDeutsche Bank's credit default swaps surged overnight as European banking issues persist. Should investors buy growth stocks, the Nasdaq, and long-term bonds? "I have been advocating long-duration bonds. I realize that the yield curve is inverted and there are better interest rates on short-duration bonds, but that could create reinvestment risk," says Tim Davis.
On Holding (ONON) Stock On A Path Higher
March 26, 2023 15:09 - 5 minutes - 76 MB"Apparel and consumer discretionary stocks have seen an upward trend lately. On Holding (ONON) is a footwear company that released their earnings report recently. The ONON stock has performed exceptionally well afterwards. The revenue beat estimates with $380.85M for the quarter and sales were up 44%," says George Tsilis.
Monetary Tightening & Banking System Impact On Markets
March 25, 2023 18:46 - 6 minutes - 77.2 MB"The Federal Reserve acknowledged that the financial turmoil is likely to depress, and inflation guidance was softened in their statement. Jerome Powell and Janet Yellen's comments impacted the markets and equities were not excited from a valuation standpoint. The American taxpayer will not be responsible for everything as FDIC insurance will handle some," says Timothy Chubb.
Too Early To Be Sure Central Banks Are Done
March 25, 2023 18:13 - 8 minutes - 72.9 MB"The Federal Reserve is still in a position with inflation being too high despite the banking situation. The U.K.'s February inflation reading was 1.1% for the month and it was also 1% in France. It is too early to be sure that global central banks are done. The Swiss National Bank raised interest rates by 50BPS just days after Credit Suisse engulfed Europe into financial turmoil," says Jeffrey Kleintop.
Standard Or Itemized Tax Deduction?
March 25, 2023 17:54 - 5 minutes - 55.6 MB"With tax withholdings, typically spread across pay periods to avoid a large lump sum in April. Under withholding can trigger penalties. Self-employer or contractors may not have taxes withheld. Be sure to account for all income sources. Deductions reduce the amount of income subject to tax. For some filers, itemizing deductions may make sense. Itemized deductions can include mortgage interest, property taxes, state income taxes, and student loan interest," says Carrie Schwab-Pomerantz.
Market & Federal Reserve At Odds
March 25, 2023 16:43 - 5 minutes - 55.7 MB"I am seeing that the market and the Fed are at odds with each other. The Fed Dot Plot indicates higher for longer and the market disagrees. The inflation breakeven rate suggests that the market's views might make sense. How does the recent banking situation impacting the every day investor? Is there a threat to the economy and the markets? The Fed needs to handle current issues with the financial system," says Katie Binns.
One More 25BPS Rate Hike and Done?
March 25, 2023 15:08 - 7 minutes - 82.9 MB"Since March 2022, the Federal Reserve focus has been the inflation fight. They said that they were going to continue raising interest rates until something broke. The impact is on housing, banking, and the consumer, which will lead on slower economic growth. I think they will raise rates by 25BPS again and then will be done," says Kevin Mahn.
Economic Tightening: U.S. Vs Europe
March 24, 2023 20:36 - 8 minutes - 92 MB"There is volatility due to the banking crisis globally. The FOMC meeting was as expected. The ECB delivered on their 50BPS interest rate hike. What is the difference between the United States and Europe? The Federal Reserve is not done hiking rates, but we are much closer to the terminal rate. Europe still needs to tighten," says Eric Theoret.
Fed Needs To Overhaul Economic Model
March 23, 2023 19:16 - 11 minutes - 120 MBThe Fed should be on pause, argues Judy Shelton, because its methods of fighting inflation aren't working. The Fed needs to overhaul its model, even if that means questioning the long-held ideas about the relationship between unemployment, inflation growth, and inflation. She says the Fed should be more hands-off, and not be so quick to raise or lower rates. She also discusses the recent bank troubles and how the government has reacted.
Surprising Unanimity Of Fed Decision
March 23, 2023 16:12 - 9 minutes - 103 MBIt has been the Fed's M.O. not to go against expectations, says Liz Ann Sonders. She doesn't see rate cuts in the near-term future, especially without contagion in the banking system's woes. She says there is typically an 8 month period between the final rate hike and the first rate cut. For now, she thinks the Fed is focusing on not repeating the mistakes of the 1970s.
Opportunities In A Volatile, High Rate Environment
March 22, 2023 20:56 - 6 minutes - 74.7 MBIt's very difficult to predict what will happen next in the markets, says Joanna Gallegos, without a clear trend from week to week and high volatility. She discusses the SVB collapse and how it has changed rate hike expectations in the market. She expects unemployment to rise but to stay historically low, and thinks there is a lot of resiliency in the consumer and the economy. She says investors should reallocate into bonds.
Bearish If The Fed Does Not Raise Interest Rates
March 21, 2023 21:40 - 7 minutes - 86.4 MB"Best case scenario is that the Federal Reserve raises interest rates by 25BPS because if they do not, it will show that they are scared. With volatility coming down, I am starting to look for cheap protection back to the downside. Option premium is collapsing a bit. Crude oil price fell to November 2021 lows. It does not seem that the China reopening story at the end of 2022 is really taking hold. They lowered the GDP estimates for their economy moving forward. Crude oil demand seems robu...
Traders Will Adjust Positions Based On Crude Oil Price
March 21, 2023 19:09 - 5 minutes - 67.1 MB"Crude oil price hit $64 and we are back to where we were 15 months ago. There has been a tremendous sell-off. The whole world is betting that there will be a recession. Investors thought that China reopening would be more vigorous for commodities and this has betrayed cotton and corn. The corn price hit 8 month lows. Crude oil has been the canary in the coal mine," says Chris Robinson.
New & Used Car Prices Near All-Time Highs
March 21, 2023 18:03 - 5 minutes - 58 MB"There was a supply chain shortage with new vehicles coming out of the pandemic, and now there is a tighter supply for used vehicles. There is an increase in used car prices for the first time in eight months. Also, new car prices continue to be at all-time highs, but more new vehicles are being released, so that could mean a decrease. As EV prices come down, there will be more interest in those cars," says Kevin Roberts.
PFXF ETF: Taking Financials Out Of The Equation
March 21, 2023 17:36 - 6 minutes - 378 MBThe VanEck Preferred Securities Ex Financials ETF (PFXF) has been in the market for over 10 years and was born out of the global financial crisis. The PFXF ETF is up 2% in 2023. "There was demand for access to the preferred securities market, while leaving banking, insurance, and other financials out of the mix," says Brandon Rakszawski.
If Fed Pauses, That Could Create Panic & Stock Picks: BAC, MSFT, ARE
March 21, 2023 17:19 - 7 minutes - 75.2 MB"Volatility has been a constant in this market. There are declines in credit due to the regional banking crisis, which might do some of the Federal Reserve's job. I believe that they will raise interest rates by 25BPS during the FOMC. We do not want a stop and go policy like in the 1970s. The job market remains strong and should keep the U.S. out of a recession during the first half," says Burns McKinney. Then McKinney provides his stock picks: BAC, MSFT, and ARE.
Treasury Volatility Is Driving Other Market Volatility
March 21, 2023 17:18 - 5 minutes - 149 MB"The most volatility is in rates currently. The options market is indicating that the 2-year will be moving by 12 basis points per day and every day for the next few months. The yield curve is pricing a return to a disinflationary goldilocks scenario. Right now, megacap technology stocks are where to be as quality balance sheets have a chance to work again," says Scott Ladner.
UBS & Credit Suisse Deal Had To Be Done
March 21, 2023 15:19 - 5 minutes - 339 MBThe UBS/Credit Suisse deal had to be done, says Matt Maley, because if Credit Suisse went under a lot of financial firms would be exposed. He calls the deal a "forced marriage" with UBS saying no to a deal until authorities got involved. He thinks that a lot of banks still have losses on the books as rates rise, and that credit conditions are going to get tighter, so investors should get more defensive.
Fed In An Impossible Position
March 21, 2023 15:09 - 7 minutes - 173 MBThe Fed is in an almost impossible position between balancing financial stability and inflation, says Kevin Gordon. The key is how many ripple effects there will continue to be from the SVB collapse. He says the Fed could follow the BOE and ECB and keep one foot on the gas and one on the brake. Powell is unlikely to take a stop-and-go approach because he doesn't want to follow the mistakes of the 60's and 70's.
Gold Price Hits $2,000 For First Time In A Year
March 20, 2023 19:41 - 8 minutes - 93.5 MBGold price is holding above $2,000 with the financial system concerns. "Gold will play a safe haven in a portfolio amidst the banking crisis. Volumes are reaching 170B on a daily basis. Everything is interlinked with interest rates, U.S. Dollar, and the Federal Reserve. Gold performs extremely well as a financial instrument as a safe haven and a savings tool for economic growth," says Joe Cavatoni.
LivePerson (LPSN) As Overlooked A.I.
March 17, 2023 22:07 - 5 minutes - 64 MBLivePerson (LPSN) stock price was down significantly post their earnings report release. "Artificial intelligence has been in recent talks. LivePerson (LPSN) is a customer connectivity and conversation-based platform. It is best know for the Conversational Cloud platform. LivePerson (LPSN) competes against Microsoft's (MSFT) Nuance and Five9 (FIVN)," says George Tsilis.
25BPS Interest Rate Hike Is Dovish
March 17, 2023 21:16 - 3 minutes - 233 MB"It has been a historic week for bonds trading. There is an 80 basis point range in 2-year treasuries as investors are questioning the credibility of the Federal Reserve and the interest rate decision. I think they will take a page from the ECB playbook by following through. If they raise by 25BPS, that is almost a concession and a dovish stance," says Larry Shover.
Netflix (NFLX) Has Advantages Over Peers On Its Global Tech Platform
March 17, 2023 20:55 - 7 minutes - 199 MBCFRA upgraded Netflix (NFLX) to strong buy from buy this week. Kenneth Leon discusses NFLX as CFRA says that the company is somewhat resistant to recession. He talks about new revenue drivers that could benefit NFLX. he also notes that NFLX has many advantages versus its peers on its global technology platform. Tune in to find out more about the Netflix and the stock market today.
The Fed Did Not Stay On Top Of The Banking Situation
March 17, 2023 20:25 - 8 minutes - 80.7 MB"The Federal Reserve could have taken a look months ago at the Silicon Valley Bank issue as financials are highly regulated. I am concerned that this could be the case for other banks as well. Disruption equals demand destruction with crude oil. The crude oil price dropped as traders feared the financial crisis. The global risk markets have sold off on he news as well," says David Williams.
The "Night Effect" In Trading Performance
March 17, 2023 18:59 - 4 minutes - 43.8 MBThe past week demonstrated the power of the "Night effect," says Bruce Lavine. He examines the "Night Effect" in trading performance. He notes that overnight markets have outperformed daytime trading on a risk-adjusted basis. He discusses NightShares ETFs which include NSPL, NSPY, and NIWN. He then goes over finding areas of opportunity in a turbulent market. He talks about how markets slide on renewed concerns in regional banks. Tune in to find out more about the stock market today.
Inflation Is Slowing, Economy Should Not Fall Apart
March 16, 2023 22:19 - 7 minutes - 73.8 MB"The jobs market should loosen up a bit, but it will take time. Do we want to see the U.S. economy fall apart? As long as inflation is slowing, this does not need to happen. Wages should hold but we still want to see strong labor conditions. The Federal Reserve's work is starting to show. There is a chance of 70% that they will raise interest rates by 25BPS," says Bill Baruch.
Sportradar (SRAD) CEO On Global Sports Betting
March 16, 2023 21:13 - 5 minutes - 57.7 MBSportradar (SRAD) provides B2B solutions to the global sports betting industry. CEO Carsten Koerl discusses SRAD as the company provides services to national and international sports leagues, media companies, and bookmakers. He talks about how SRAD's 4Q revenue came in at $220.7M, which is up 35% year-over-year. He notes that the company's 4Q U.S. segment adjusted EBITDA positive for the second straight quarter. He then goes over how FY22 U.S. betting growth came in at 78%. Finally, he men...
Big Banks To Bolster First Republic (FRC)
March 16, 2023 21:10 - 8 minutes - 105 MBMarkets are higher as weakness resumes in regional banks. Peter Tuchman discusses the market reaction to SVB and Credit Suisse (CS). He mentions that the WSJ says that JPMorgan, Morgan Stanley and other big banks are to bolster First Republic (FRC). He talks about investing strategies to consider to for a turbulent market. He also goes over what the ECB 50 BPS rate hike means for the Fed. Tune in to find out more about the stock market today.
How The Fed Will React To SVB & Credit Suisse (CS) Fallout
March 16, 2023 20:43 - 9 minutes - 95.7 MBEuropean Central bank raises rates 50 BPS. Liz Ann Sonders discusses this, and what this means for the Fed. She previews the FOMC meeting which begins Tuesday, and the decision announcement is Wednesday. She talks about how the Fed will respond to the SVB and Credit Suisse (CS) fallout. She also goes over implied Fed funds rate for the June meeting, and the housing starts and permits for February 2023. Tune in to find out more about the stock market today.
PPI Numbers As Good News For Markets & The Fed
March 15, 2023 22:24 - 9 minutes - 108 MBRetail Sales numbers came in lower than expected. The PPI or Producer Price Index data came in line with slowing economic conditions. Could this feed into a bull market? "The PPI number is good for the market, as well as the Federal Reserve's position. The effect that these numbers would have had prior to the Silicon Valley Bank collapse and Credit Suisse problems is different. The PPI data feeds into the PCE. Regarding retail sales, inflation was lower," says Bob Iaccino.
Recession More Likely After Bank Collapse
March 15, 2023 21:52 - 9 minutes - 114 MBEquity markets have taken the recent bond market repricing in stride, says Huw Roberts. He discusses the stock sell-off reversing Tuesday's gains. He notes that the recession has become more likely given the new banking landscape. He talks about how increased insurance contributions, competition for deposits, stricter lending standards all point to marginal tightening in credit conditions. He mentions what recent market weakness means for the Fed. He then goes over potential defensive equi...
Hashdex CEO On Getting Crypto Exposure In Your Portfolio
March 15, 2023 21:18 - 8 minutes - 94.4 MBRecent challenges facing the banking industry reiterate bitcoin's (/BTC) use case, says Marcelo Sampio, CEO of Hashdex. Hashdex is a crypto asset management company. He talks about getting exposure to crypto in your portfolio. He notes that he continues to see investors looking beyond short-term volatility. He also believes that the ETF structure is the most beneficial to the greatest number of investors. He then goes over movement in the Teucrium Commodity Trust Hashdex Bitcoin Futures ET...
Wild Ride In March For Central Banks & High Quality Stocks
March 14, 2023 20:54 - 10 minutes - 87.3 MBAlthough inflation may be receding, intermittent waves of price increases may cause investor uncertainty about the direction of economic growth and central banks' policy response, says Jeffrey Kleintop. He talks about how SVB’s failure may have little impact on central banks outside the US and markets may soon return to worrying about inflation and rate hikes. He then goes over if there is there a financial crisis brewing. He also notes that high quality stocks continue to outperform. Low ...
Markets Are Only Calm For The Moment
March 14, 2023 19:46 - 9 minutes - 250 MBHas the Federal Reserve lost control of the treasury market? "The markets are only calm for the moment. The risk is that the Fed is crowding out its own banking system by raising rates to fight inflation. A good chunk of banks has a risk of their funding costs moving up above earning asset yields. There is a banking system where there are low cost deposits, which have begun moving into higher yielding products like treasuries and money market funds. That puts banks in a bind," says Luke Gr...
SVB Collapse: The Dangers Of Doing Business With Bad Companies
March 13, 2023 23:08 - 7 minutes - 90.8 MBThis struggle shows the dangers of doing business with bad companies, says David Trainer. He discusses how stocks are volatile as the SVB Financial fallout continues. He talks about how issues show that companies, including banks, need to be much more discerning about whom they do business with. He notes that the deposit base from the major banks is much more diversified than SVB. He then goes over finding stock opportunities in a volatile market, highlighting Tesla (TSLA). Tune in to find...
Liquidity Crisis, Not A Credit Crisis
March 13, 2023 22:59 - 7 minutes - 87.4 MB"This is a liquidity crisis and not a credit crisis. The U.S. Dollar is to be watched, as well as treasury yields coming down. I am trying to be optimistic, but also practical in where to put investors' money now. The takeaway from the banks is that there is a precarious scenario between driving the economy into a recession for the sake of avoiding higher inflation or vice versa. This will be a bubble for the Federal Reserve moving forward. When you have inflation rates of over 6%, it can ...
Financial Sector Needs To Be Trusted For Economic Stability
March 13, 2023 22:17 - 6 minutes - 79 MB"It is scary to see banks collapse and an uncertainty in the financial sector. On the positive side, regulators are acting fast versus the previous recession when major averages dropped 50%. Recent employment reports were putting more pressure on the Federal Reserve to be more aggressive. That came into question recently as they have a mandate to protect financial stability. We cannot have a functioning economy if the financial sector is not trusted," says Kayla Bruun.
Major Indices Pointing To Short-Term Low
March 13, 2023 20:54 - 6 minutes - 44.1 MB"I am watching the relationship between the indices. The Dow Jones has a different composition than the NDX, but since last week, the markets have conviction and are moving together in the same direction. All major indices are below any objective level that you would identify as potential support. I would not be surprised to see a short-term low mid-week, which dovetails with CPI and PPI data," says Tom Alexander.
Improper Risk Management
March 13, 2023 20:21 - 7 minutes - 131 MB"The U.S. Dollar price is falling even though it was poised to trade higher. Looks like people that are supposed to be risk managers slept through the bond duration part of their notes. Will President Biden hold them responsible? Treasuries are indicating that the Federal Reserve will be hands tied in the upcoming meeting. I cannot believe that there are people that could not hedge their duration risk," says Chris Robinson.
Peloton (PTON) Allegedly Infringes On Patents For Dish & Sling TV
March 13, 2023 19:42 - 5 minutes - 56.2 MBFor the last year and a half Peloton (PTON) has been importing devices and so the import ban may or may not have an impact, says Paul Golding. He gives an overview of PTON as USITC says PTON infringed on patents for Dish & Sling TV. He also goes over how Macquarie has an outperform rating for PTON with a $20 price target. He notes that PTON's 52-week high came in at $32.14. Tune in to find out more about PTON and the stock market today.
Former FDIC Chair Weighs In On SVB Collapse
March 13, 2023 19:33 - 10 minutes - 123 MBGlobal government bonds rally as investors search for havens. Former FDIC Chairman William Isaac joins Oliver Renick to discusses the fallout from the SVB collapse. He talks about how the S&P 500 coming off of worst week since September. He notes that N.Y. state regulators closed Signature bank of New York on Sunday. He then goes over how HSBC buys U.K. arm of Silicon Valley bank and what the fallout from Silicon Valley Bank means for future Fed rate hikes. He mentions that regulators back...
Increased Yield Conversion Meaning & BUG, BOTZ Cybersecurity/ Robotics ETFs
March 13, 2023 19:03 - 5 minutes - 69.5 MBThere has been a sharp decline in the 10-year treasury yields and increased yield curve inversion, says Michelle Cluver. She talks about what investors should focus on with the Fed. She then goes over what to watch in cybersecurity and robotics spaces, highlighting ETFs BUG and BOTZ. She also notes the outlook for the economy in 2023. Tune in to find out more about the stock market today.
Sustainability, Justice, & Diversity: A Recipe For Successful Business
March 13, 2023 18:47 - 9 minutes - 108 MBCompanies with diverse management teams tend to outperform their peers, says Jason Ray. He discusses how the SVB Finacial (SIVB) has been closed by a California regulator. He talks about how bank stocks are dropping including First Republic Bank (FRC), Signature Bank (SBNY), and Zions Bancorp (ZION), as SIVB shares have been halted all day. He notes that sustainability and justice business models may be well positioned for long-term growth. He goes over how hawkish rate policy may create o...
Healthcare Is Lagging, But Defense Is Leading
March 13, 2023 18:39 - 6 minutes - 74.4 MBHealthcare is the second worst performing sectors behind utilities, says Brian Jankowski. He discusses finding opportunities in the lagging healthcare sector. He gauges the market response to the hotter-than-expected February jobs report. He also goes over what the SVB Financial (SIVB) collapse means for markets. He then goes over how the defense sector is well positioned. Tune in to find out more about the stock market today.
AAPL, MSFT, NVDA: Mega-Cap Could Be A Safe Space To Invest In
March 13, 2023 18:29 - 6 minutes - 64 MBMega-cap tech has been hanging in there better than most anticipated, says Quint Tatro. He and Jeremy Bryan discuss mega-cap tech investing. Jeremy notes that mega-cap tech may act as a safe space to invest in 2023. He says that Apple (APPL), Microsoft (MSFT), and Nvidia (NVDA) are companies represent "durable growth" that Gradient Investments finds attractive. They note that AAPL was downgraded to sell from neutral by Lightshed Partners. They then go over the outlook for semiconductor sto...
Employment Market Is Red Hot
March 10, 2023 22:49 - 5 minutes - 57 MBWith the jobs reports, more jobs have been created than anticipated. "We are in an economy that is overheated as the employment market is red hot. This reflects an overheated economy and policy needs to be adjusted to that fact. My sense is that the Federal Reserve will be at a 50BPS interest rate hike. This is despite the sell-off we are seeing in financial markets around the potential unrealized losses in the banking sector. The markets are functioning with balance sheet analytics, price...
Inflation: Real Issue Is Money Supply
March 10, 2023 19:39 - 8 minutes - 76.7 MB"JOLTS are headed in the right direction versus last month's report. Paying attention to wages could suggest the Federal Reserve's tightening. Employers are giving employees raises that already exist in the system. Private employers cannot print money to create supply, which is the real issue with inflation. Wages are the symptom of inflation and not the cause," says Jake Hanley.