Why this star stock-picker now loves bonds, hates Tesla and foreign stocks

David Giroux, chief investment officer at T. Rowe Price — named Morningstar's Outstanding Portfolio Manager for 2025 for his work at T. Rowe Price Capital Appreciation — says his allocation fund is holding near its highest levels ever of bonds, specifically intermediate fixed-income, largely because he thinks stocks are overvalued and real growth will remain hard to find. Giroux — who has beaten the average peer in his Morningstar asset class for 17 consecutive years, the longest streak in the entire fund industry — has long disdained investing in foreign stocks and says the rally that 2025 has produced overseas is an anomaly and that no one "should ever feel a need to own an inferior index just for diversification purposes." In the wide-ranging interview, Giroux says that the Magnificent Seven stocks have actually been the Mag 6, plus Tesla, saying that the car maker has no business being in the portfolio of leading securities.

David Trainer, president of New Constructs, put Klarna in The Danger Zone in April, when the buy-now, pay-later financial firm was attempting to go public but put off the process in the face of the market's drop after "Liberation Day." Now the company is back attempting an initial public offering, and that brings them back under Trainer's scrutiny again, before they ever get launched as a stock.

Natalia Brown, chief consumer affairs and creditor relations officer for National Debt Relief, discusses the firm's survey showing that six in 10 American parents are going into debt for their children. She talks about what parents are foregoing for their own lives to help the kids, and what they are paying for that puts them into debt.