Closing Bell Closing Bell: 1/13/26
Jan 13, 2026
Lizanne Saunders, Chief Investment Strategist at Charles Schwab, dives into market volatility, sector rotation, and why small caps may shine amid broader earnings growth. Mark Okada, Co-founder of Sycamore Tree Capital Partners, raises alarms about risks in below-investment-grade lending and the impending credit cycle. Megan Hsu from Wilmington Trust shares insights on the labor market's impact on earnings expectations and the importance of quality equities. Together, they explore the intricate dance between geopolitical risks and market dynamics.
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Broader Market Enables Stock Picking
- Lizanne Saunders notes renewed volatility may be a pause after long rotations, not systemic alarm.
- She sees a broadening market with lower correlations giving stock pickers more opportunity.
Favor Quality Within Small Caps
- Saunders advises staying in quality within small caps and favoring profitable names over unprofitable ones.
- She recommends a factor-based, not monolithic, approach to cohorts and sectors.
Strong Market, More Volatility Ahead
- Rick Reeder and Lizanne forecast more volatility even in a strong investing environment due to inflation and Fed dynamics.
- Market likely to be a churn-and-rotation regime favoring active management over passive bets.