Tier1 Alpha's Green: Retirement dynamics are setting the market up for a fall

Michael Green, chief investment officer at Tier1 Alpha Asset Management, says that the domination of index funds and passive investing has changed market kinetics, systematically pushing money to the largest names, contributing to the current phenomenon where a few mega-cap stocks have carried the market to record highs while most smaller index constituents have struggled. Over time, the continued shift toward passive investing has created a situation that can lead to extremes, in both directions. As a result, he says investors need to be prepared to navigate heightened market volatility, even as they ride market trends to record highs.

With gold having been on a rocky path this year — having peaked early and struggled since — Dana Samuelson, founder and president of American Gold Exchange, returns to Money Life to discuss how market and economic forces have shaken precious metals. Samuelson -- who said in an April interview that he expected gold to recover from the initial shock of the Iran War to return to hit a new record of $6,000 per ounce within 18 months -- says the rebound is still plausible but the timeline has changed. He discusses how inflation, interest rates and demand for the more-industrial white metals — silver, platinum and palladium — are impacting markets now, and what he believes needs to happen for precious metals to rebound.

Plus, Chuck answers a question from a listener about whether election integrity in the mid-terms could become a concern for the market, and perhaps have more influence on the economy moving forward than which party wins control of the House and Senate.