Johnson's Ceci sees normalized earnings leading to a sideways market

Money Life with Chuck Jaffe

Dominic Ceci, chief investment officer at Johnson Financial Group, says that investors can't expect the stock market — after 20-plus percent gains in 2023 and this year — to roll along at that pace indefinitely, noting that record highs have stocks trading well above their normal range relative to earnings. If earnings normalize and growth slows a little bit, the economy can stay strong while the market goes through a long sideways or slightly down period, likely lasting for much of next year. He says in The Big Interview that kind of benign scenario is more likely than a hard landing or big market declines. Matt Kaufman, head of ETFs at Calamos Investments, discusses the firm's latest structured products, which are tied to the stock market, but which use options to virtually ensure that losses are impossible; he explains how they work and where they might fit into investment portfolios. Plus, with big Powerball and MegaMillions jackpots on the line this week, Matt Zajechowski discusses research he did for Lucky.me showing which states have produced the most big jackpot winners — and the states where no one has ever claimed the biggest prize — as well as which numbers have proven to be luckiest — and the least lucky — when it comes to grand prizes in the past.