Investment Committee: Here's how to navigate the market volatility

Watch on YouTube ↗  |  January 14, 2026 at 18:31  |  9:13  |  CNBC
Speakers
Joe Terranova — Senior Managing Director, Virtus Investment Partners
Karen Firestone — Investor
Shannon Saccocia — Investment Committee Member
Steve Weiss — Chief Investment Officer, Short Hills Capital Partners
Frank Holland — Reporter, CNBC

Summary

CNBC's Investment Committee debates elevated market volatility and a broadening rotation. Joe Terranova sees momentum shifting toward bitcoin, energy, materials and small caps while avoiding extended gold and silver. Shannon Saccocia favors global diversification and emerging markets, Kari Firestone expects policy fears to fade, and Steve Weiss stays cautious and thinks about raising cash. Joe also discloses buying Merck and oil.

  • Market volatility is elevated as leadership broadens beyond megacap tech.
  • Joe Terranova says bitcoin and crypto are developing into the next momentum trend.
  • He also sees momentum in energy, materials, small caps and semis, but calls gold and silver extended.
  • Shannon Saccocia recommends global diversification and emerging-market cyclical exposure.
  • Kari Firestone argues policy fears and tariff concerns may prove temporary.
  • Steve Weiss is defensive, holding cash and avoiding new equity exposure.
  • Joe Terranova discloses personal buys in Merck and oil.
  • The committee discusses bank earnings volatility and Washington policy uncertainty.
Ideas
Joe Terranova Senior Managing Director, Virtus Investment Partners 0:31
Bitcoin and crypto are next trend.
Joe says momentum is searching for the next trend and that bitcoin and cryptocurrencies are where that next trend ultimately is going; later he calls bitcoin the strongest near-term trend as capital reallocates within markets. He is not actively trading it, but the signal is positive.
BTC Cryptocurrencies MED
Joe Terranova Senior Managing Director, Virtus Investment Partners 0:40
Gold, silver extended; avoid chasing.
Joe says momentum remains entrenched in precious metals like gold and silver, but he has sold out of GLD and views them as extended, explicitly saying it is not a recommendation to buy them. That makes the current setup one to avoid chasing.
GLD SILVER MED
Joe Terranova Senior Managing Director, Virtus Investment Partners 0:46
Capital rotates into energy, materials, small caps.
Joe argues capital is moving out of 2025 winners and into underowned or less familiar areas. He cites positive momentum in small caps, some semiconductors, energy and materials, notes energy and materials were underallocated last year, and says he personally bought oil to express the energy preference.
IWM SMH XLE XLB WTI MED
Karen Firestone Investor 1:51
Market recovery likely after policy fears.
Kari thinks the current fear and concern over Washington policy and tariffs resembles a small panic that can fade. She notes the market rose 18% last year after working through tariffs, earnings were up 14%, and earnings could be good again, potentially putting the market back on a recovery path.
SPY MED
Shannon Saccocia Investment Committee Member 4:50
Emerging markets offer broadening cyclical exposure.
Shannon says the broadening trade is extending beyond U.S. small/mid caps and underperformed sectors into global and emerging markets. She wants exposure to more cyclical areas outside the U.S. before accelerating second-half earnings growth is priced in.
EEM XLY HIGH
Steve Weiss Chief Investment Officer, Short Hills Capital Partners 7:25
Hold cash, avoid adding equities.
Steve is cautious because Washington is attacking capitalism through mandates and interventions, geopolitical conflicts could push oil around, and Fed leadership uncertainty clouds the inflation outlook. His bottom line is not putting new money into the market, keeping current positioning, and considering raising more cash.
CASH MED
Steve Weiss Chief Investment Officer, Short Hills Capital Partners 7:25
Hold cash, avoid adding equities.
Steve is cautious because Washington is attacking capitalism through mandates and interventions, geopolitical conflicts could push oil around, and Fed leadership uncertainty clouds the inflation outlook. His bottom line is not putting new money into the market, keeping current positioning, and considering raising more cash.
SPY MED
Joe Terranova Senior Managing Director, Virtus Investment Partners 8:52
Bought Merck, favoring health care.
Joe did some selling and personally bought Merck, saying his focus is on health care as a tactical opportunity amid elevated volatility. The purchase is an explicit expression of a health-care preference, though he gives no company-specific rationale in the transcript.
MRK XLV LOW
Up Next
2:53
Chart of the Day: Oil's big bounce
CNBC · Jan 14
4:13
Trade Tracker: Karen Firestone buys Linde PLC
CNBC · Jan 14
0:55
Final Trades: GLD, CNX, RJF and the IYM
CNBC · Jan 14
6:37
OLVIDA a los POLÍTICOS: BEZOS, MUSK y ZUCKERBERG DECIDEN tu FUTURO
Pablo Gil · Jan 14
2:06
Bitcoin Above $95K as Spot BTC ETFs Score Largest Inflow Since October
CoinDesk · Jan 14

This CNBC video, published January 14, 2026, features Joe Terranova, Karen Firestone, Shannon Saccocia, Steve Weiss discussing BTC, Cryptocurrencies, GLD, SILVER, IWM, SMH, XLE, XLB, WTI, SPY, EEM, XLY, CASH, MRK, XLV. 8 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Joe Terranova, Karen Firestone, Shannon Saccocia, Steve Weiss  · Tickers: BTC, Cryptocurrencies, GLD, SILVER, IWM, SMH, XLE, XLB, WTI, SPY, EEM, XLY, CASH, MRK, XLV