Excess Returns Beyond the Magnificent Seven: Liz Ann Sonders on Markets, Cycles & Investing
Jan 9, 2025
Joining the discussion is Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, known for her data-driven insights. She delves into the shift from the 'Great Moderation' to a 'Temperamental Era,' marked by increased volatility. Liz Ann emphasizes the need to look beyond headline indices, the importance of behavioral sentiment in investing, and lessons from legendary investor Marty Zweig. She advocates focusing on sound investment decisions amidst uncertainties rather than future predictions, offering enduring wisdom for all investors.
AI Snips
Chapters
Books
Transcript
Episode notes
End of Great Moderation
- The "Great Moderation" era (low inflation, benign interest rates) has ended.
- A "Temperamental Era" (volatile inflation, growth, and shorter cycles) has begun.
Multi-Asset Diversification
- Diversify beyond stocks and bonds in this volatile market.
- Consider alternatives like hedge funds, private equity, and private real estate.
Recessions in Pockets
- Recessions still occur, but manifest in unique sector-specific ways.
- The pandemic triggered rolling recessions in manufacturing and housing, offset by services strength.
