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.

This is not an offer to buy or sell securities, nor should anything contained herein be construed as a recommendation or advice of any kind. Consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. No investment process is free of risk, and there is no guarantee that any investment process or investment opportunities will be profitable or suitable for all investors. Past performance is neither indicative nor a guarantee of future results. You cannot invest directly in an index.

These materials were created for informational purposes only; the opinions and positions stated are those of the author(s) and are not necessarily the official opinion or position of Hightower Advisors, LLC or its affiliates (“Hightower”). Any examples used are for illustrative purposes only and based on generic assumptions. All data or other information referenced is from sources believed to be reliable but not independently verified. Information provided is as of the date referenced and is subject to change without notice. Hightower assumes no liability for any action made or taken in reliance on or relating in any way to this information. Hightower makes no representations or warranties, express or implied, as to the accuracy or completeness of the information, for statements or errors or omissions, or results obtained from the use of this information. References to any person, organization, or the inclusion of external hyperlinks does not constitute endorsement (or guarantee of accuracy or safety) by Hightower of any such person, organization or linked website or the information, products or services contained therein.

Click here for definitions of and disclosures specific to commonly used terms.