Closing Bell Closing Bell 10/7/25
Oct 7, 2025
Liz Thomas, Head of Investment Strategy at SoFi, shares insights on market valuation, sector rotation, and the exhilarating rise of AI's impact on portfolios. She contemplates whether the current AI enthusiasm echoes past bubbles, highlighting the need for broader market drivers beyond tech giants. Anne Walsh, Chief Investment Officer at Guggenheim, discusses a macroeconomic outlook, predicting Fed cuts and unveiling attractive credit opportunities despite recent bankruptcies in private credit. Their dialogue dives deep into market dynamics and investment strategies.
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Euphoria Can Persist With Strong Fundamentals
- Markets feel euphoric but can run further because fundamentals and policy differ from the 1990s.
- Strong balance sheets and real earnings in big tech may extend the rally despite froth.
Rebalance Into Lagging Sectors
- Do not abandon winners but rebalance into sectors that lag, such as healthcare and small caps.
- Diversify within growth by adding biotech and pharma exposure to reduce concentration risk.
Gold Rally Signals Reallocation, Not Panic
- Gold's rally reflects central bank demand and renewed retail interest amid currency volatility.
- The move isn't purely a dollar-rejection signal but a reallocation into a long-neglected asset class.