Fox Business: Michael Landsberg Joins FBN’s ‘Making Money With Charles Payne’ to Discuss the Stock Market

February 19, 2025

Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, joined Making Money with Charles Payne to discuss earnings growth, inflation expectations, and investment strategies for 2025. “Earnings growth is the strongest story right now—corporate America is doing the right thing and making money,” he explained, highlighting the importance of focusing on fundamentals amid broader economic uncertainties. Landsberg also weighed in on large-cap positioning, inflation concerns, and investment themes that could benefit from market trends.

Key Takeaways:

  1. Earnings Growth Remains Strong – “The earnings growth story is intact. We’re seeing double-digit earnings increases across major indices, including a long-awaited improvement in smaller companies. There might be occasional hiccups, but the fundamental strength of corporate earnings should carry through 2025.” Corporate performance remains a driving force in the market, as companies continue to generate solid revenue and profitability despite economic headwinds. While there may be moments of volatility, strong earnings fundamentals suggest that investors should stay focused on businesses with sustainable growth.
  2. Inflation is Here to Stay – “Our models showed inflation rising from 2.4% in September toward 3.5% within a year, no matter who won the election. Tariffs might add some pressure, but inflation was already trending higher. Investors need to position accordingly.” Higher inflation means that companies with pricing power—those able to pass on costs to consumers—are likely to fare better. As inflation persists, investors should be cautious about sectors that rely heavily on fixed costs or those that struggle to adjust pricing.
  3. The Fed’s Stance on Rate Cuts – “The Fed minutes show they are taking a careful approach to cuts, citing risks from trade and immigration policies. We don’t think they’ll get to two cuts this year—they may end up making none at all.” Markets have been pricing in rate cuts, but if inflation remains stubbornly high, the Fed may not deliver what investors are expecting. A “higher-for-longer” rate environment could weigh on certain market segments, especially those that rely on cheaper borrowing costs.
  4. Large Caps as a Safe Haven – “For most investors, large caps should be the biggest weight in a portfolio. They provide predictability, strong management, and the ability to navigate economic challenges. While mega-cap stocks have been dominant, diversifying within large caps is key.” These companies tend to offer more stability during uncertain times and have the financial flexibility to weather economic shifts. Investors should look beyond just the biggest names and consider a broader mix of large-cap stocks to avoid concentration risk.
  5. Cybersecurity as a Long-Term Theme – “As AI becomes more integrated into business and daily life, cyber threats will only increase. Companies that specialize in cybersecurity remain an attractive investment, especially those that haven’t fully participated in the recent rally.” The rising use of AI and cloud computing has heightened security concerns, making cybersecurity a critical investment theme. As threats evolve, demand for cybersecurity solutions is expected to grow, benefiting companies that provide advanced protection for businesses and consumers.
  6. Energy Demand and Market Positioning – “We’re looking at energy-related investments, particularly those tied to the growing demand for data centers. The power needed for AI-driven infrastructure is a long-term investment theme, and nuclear energy has bipartisan support as part of that mix.” The expansion of AI and cloud computing is creating unprecedented energy demands. Companies that provide reliable energy solutions, including traditional and alternative sources, could benefit as the digital economy continues to grow.

Landsberg emphasized that while uncertainty around trade, inflation, and Fed policy remains, investors should stay focused on earnings strength and sector positioning. “Companies with pricing power and exposure to essential growth sectors will likely continue to perform well, despite the economic noise.” With inflation still a factor and interest rates likely to remain elevated, selecting the right stocks and sectors will be key to generating returns in 2025.

Landsberg Bennett is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. All information referenced herein is from sources believed to be reliable. Landsberg Bennett and Hightower Advisors, LLC have not independently verified the accuracy or completeness of the information contained in this document. Landsberg Bennett and Hightower Advisors, LLC or any of its affiliates make no representations or warranties, express or implied, as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. Landsberg Bennett and Hightower Advisors, LLC or any of its affiliates assume no liability for any action made or taken in reliance on or relating in any way to the information. This document and the materials contained herein were created for informational purposes only; the opinions expressed are solely those of the author(s), and do not represent those of Hightower Advisors, LLC or any of its affiliates. Landsberg Bennett and Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax or legal advice. Clients are urged to consult their tax and/or legal advisor for related questions.