Name: How volatility returned to markets
Uploaded: 2026-01-13T18:17:38+00:00
Duration: 596 s

Speakers

Rick Rieder — CIO of Global Fixed Income at BlackRock

Josh Brown — CEO, Ritholtz Wealth Management

Jim Lebenthal — Partner, Cetera Investment Management

Stephanie Link — Chief Investment Strategist, Hightower

Scott Wapner — Host, CNBC

Summary

The Investment Committee debates whether markets can keep rising amid record highs and renewed volatility. Rick Rieder remains bullish on the investment environment and advises buying dips, while Josh Brown and Jim Lebenthal also cite a positive economic and earnings backdrop. The panel discusses Fed independence, the case for or against rate cuts, rotation away from tech, and opportunities in international, emerging markets, and small caps.

Rick Rieder says the investment environment remains the best he has seen but expects more volatility.
Rieder recommends using volatility to buy dips and favors rotation away from expensive technology.
Josh Brown cites deregulation, M&A, IPOs, resilient consumers, and strong profit margins as supportive.
Jim Lebenthal argues the market can rise without rate cuts because the economy is strong.
The panel debates Fed independence concerns and whether the market is ignoring them.
Stephanie Link sees a paradigm shift favoring developed international, emerging markets, EM debt, and small caps.
Link also flags housing and autos as rate-sensitive sectors needing lower rates to recover.

Ideas

Rick Rieder CIO of Global Fixed Income at BlackRock 0:21

Buy S&P dips despite higher volatility.

Despite rich valuations and expected higher volatility, Rieder maintains this is the greatest investment environment he has seen: the economy is gaining steam (Atlanta Fed GDP tracker at 5%), consumers are resilient and consuming AI, AI momentum is not going away through 2025/2026, productivity gains are massive (4.9% recent quarter, unit labor costs down 1.9%), and double-digit earnings continue. He advises using volatility to buy on dips.

Rick Rieder CIO of Global Fixed Income at BlackRock 1:17

AI momentum remains strong and durable.

AI demand remains strong: consumers are consuming AI, the momentum is still there, and it will not go away in 2025 or 2026, supporting the broader economic and earnings backdrop.

Rick Rieder CIO of Global Fixed Income at BlackRock 1:47

Tech earnings growth is fading.

Earnings growth is rotating away from technology, which he says is where the expensive stocks are. He is adding to the rotation beneficiaries and has conviction in the underlying strength of the economy, implying technology is less attractive.

Josh Brown CEO, Ritholtz Wealth Management 2:21

Positive backdrop supports broad market investing.

Brown sees a positive overall backdrop for investments: deregulation and risk-taking are powerful, M&A has had a great 12 months, IPOs are back, consumers and small businesses remain resilient, spending is strong despite weak sentiment, revenues are rising, S&P profit margins are strong, and rates are flat or lower. He acknowledges the debate over whether good news is already priced in but says it is a good environment for investing.

Jim Lebenthal Partner, Cetera Investment Management 5:40

Market can rise without rate cuts.

Lebenthal argues the market can fly without rate cuts because no cuts would be for the right reasons: the economy is growing. He cites Atlanta Fed Q4 GDP tracking 5%, Q3 at 4%, unemployment at 4.4%, benign CPI, massive fiscal stimulus from the budget bill, and the potential for the Supreme Court to overturn tariffs and force $200 billion of refunds that would flood money into the economy and goose the market higher.

Stephanie Link Chief Investment Strategist, Hightower 9:03

Housing and autos need lower rates.

Link argues the economy lacks a housing cycle and therefore an auto cycle. Housing and autos need to recover, and lower rates are the only thing that will help those two big components, making them rate-sensitive sectors to watch.

Stephanie Link Chief Investment Strategist, Hightower 9:30

Buy international, EM, and small caps.

Link says global monetary policy is getting easier and 2025 marks a paradigm shift: investors have an opportunity in underappreciated and non-appealing assets, including developed international equities, emerging markets, emerging market debt, and US small caps. This broadening creates a healthier environment for volatility.

How volatility returned to markets

Summary

Ideas

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