Bloomberg Talks Liz Ann Sonders, Chief Investment Strategist at Charles Schwab Talks Markets
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May 1, 2025 Liz Ann Sonders tackles the current market landscape influenced by shifting economic data. The conversation highlights recent volatility, especially concerning the S&P 500 amidst global tensions. Sonders discusses how retail and institutional investors are reacting differently in today's uncertain climate. With GDP and inflation metrics in focus, she examines the implications for future rate cuts and the broader economic outlook. Together, they break down the intricacies of market dynamics and the challenges ahead.
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Market Split Between Retail and Institutions
- The market is showing a mixed signal with the S&P 500 down 10% from its high but up 10% from its low this year.
- Retail traders remain optimistic and active, contrasting with institutions moving towards risk-off strategies.
Growth Hit Likely Before Inflation Pop
- The impact of trade war dynamics appears to be showing growth slowing before inflation spikes.
- This suggests the economic growth hit is preceding any inflationary pressure in the market.
Earnings Guidance Turning Cautious
- Companies are increasingly pulling guidance or providing wide scenarios amid uncertainty.
- This reflects caution reminiscent of early pandemic stages when firms halted forward predictions.