Wayne Wicker Joins Money Life with Chuck Jaffe to Talk Markets, Mid-Caps, and Staying the Course

Our President, Wayne Wicker, recently sat down with Chuck Jaffe on the April 8th edition of Money Life with Chuck Jaffeto talk about what's happening in markets right now, and more importantly, what we're doing about it. Wayne covered a lot of ground, from where the team is finding opportunity to how retirees should think about risk in a volatile environment.

Here are some of the highlights.

Markets Have Seen This Before

Wayne kicked things off with some historical perspective. Big news events tend to rattle investors in the moment, but the data tells a different story. Six months after major selloffs, markets have historically bounced back an average of 13 to 14 percent. His take:

"Things that look pretty bleak in the first few days and the headlines, over longer periods of time, seem to work out just fine," as long as you don't panic in the short run.

We're Finding Better Value in Mid-Caps

The S&P 500 is down roughly 3 to 3.5 percent this year, but we're not adding exposure there. Instead, the team has been looking at mid-cap companies where valuations are more attractive and the quality is strong. These are the kind of businesses with solid balance sheets, healthy yields, and growing dividends.

What about small caps? Wayne shared a stat that surprised even the host: the Russell 2000 is actually up about 25 percent over the past 12 months. But look under the hood and a large chunk of those companies are losing money. That doesn't fit how we invest.

International Is Interesting, But So Is Right Here

International developed markets are trading at a forward P/E of roughly 15.5 versus 19 for the S&P 500, a meaningful discount. And a weakening dollar gave international returns a nice tailwind last year. But Wayne made the point that there's no shortage of quality domestically either. He mentioned names like Chevron, Verizon, Philip Morris International, and NextEra Energy alongside international holdings like Orange, BNP Paribas, Petrobras, and Taiwan Semiconductor. The common thread across all of them: companies that compete well, generate durable cash flows, and can sustain their dividends.

Tuning Out the Noise

One of the best exchanges in the conversation was around geopolitics. Wayne's take was straightforward. With a 3-to-5-year time horizon, most headlines just don't move the needle.

"One of the critical components that we emphasize every day is acknowledging what's going on, really taking an in-depth analysis as to whether or not it has a longer-term impact... and most of the time, you have to look through the noise."

Retirement Doesn't Mean Retreating

Wayne spent time on a topic that hits close to home for a lot of investors: sequence-of-return risk and what it means if you're approaching or already in retirement. His key point was that retirement can last 20 to 30 years, so you still need your portfolio working for you, not parked on the sidelines.

The long-term numbers back that up. Since 1926, calendar-year returns have averaged about 10.3 percent, and markets have been positive 74 percent of the time. That's not a reason to ignore risk, but it is a reason not to overreact to it.

Inflation: It's About Consistency, Not the Number

Wayne drew a useful distinction on inflation. A gradual move from 2 to 3 percent? Manageable. Sharp spikes to 8 or 9 percent like we saw during the pandemic? That's what throws things off. As long as inflation stays relatively stable, he expects earnings growth to hold up.

Recession? Build a Portfolio That Doesn't Need the Forecast

When Chuck asked about recession risk, Wayne kept it practical. If the Fed can't predict recessions, why should portfolio construction depend on it? Instead, the focus is on building portfolios that can perform across cycles. Preparation over prediction.

How This Connects to What We Do at Opal

The themes Wayne touched on in this conversation reflect the same principles that guide our investment process every day. We build portfolios around companies with strong balance sheets, durable earnings power, and the ability to sustain and grow their dividends over time. We don't chase momentum or try to time headlines. We focus on quality, income, and a long-term time horizon.

That approach shows up in how we're positioned right now, finding better value in mid-caps instead of following the crowd into large-cap names, looking globally for the best dividend-paying businesses rather than making a macro bet on one region, and staying disciplined when markets get noisy.

If any of the topics Wayne covered resonated with you, we'd love to continue the conversation.

Want to hear the full conversation? Listen to Wayne on Money Life with Chuck Jaffe

Frequently Asked Questions

What is Opal Capital's investment philosophy? Opal Capital focuses on institutional-grade investment management built around companies with strong balance sheets, healthy dividend yields, and long-term growth potential. The team includes professionals with backgrounds at Goldman Sachs, PIMCO, JP Morgan Asset Management, and Polen Capital.

Why are mid-cap stocks attractive right now? Mid-cap companies currently offer more attractive valuations than large caps and a higher quality profile than many small-cap names. For dividend-focused investors, mid-caps provide a balance of reasonable yield, balance sheet strength, and growth potential.

How should retirees manage investment risk? Retirement doesn't mean eliminating equity exposure entirely. With retirements lasting 20 to 30 years, investors still need portfolio growth to outpace inflation. The key is reducing risk gradually while maintaining enough market participation to sustain long-term purchasing power.

Should investors change their portfolio because of tariff news or geopolitical events? Short-term headlines rarely warrant major portfolio changes for long-term investors. Historically, markets have recovered strongly within six months of major news events. The greater risk is often reacting emotionally rather than staying disciplined.

Are international stocks a good investment right now? International developed markets currently trade at a lower valuation than the S&P 500, with a forward P/E of roughly 15.5 versus 19 domestically. Currency movements also play a role. A weakening dollar can provide a meaningful tailwind for U.S.-based investors holding international equities.