Globalization and China's entry into the world trading organization have shifted the economic landscape towards disinflation but also increased the likelihood of inflation volatility. The current secular period is expected to resemble the mid-60s to the mid-90s, termed as the temperamental era, with an inverse correlation between bond yields and stock prices. Unlike the Great Moderation era, characterized by a positive correlation between bond yields and stock prices, the current environment points towards a negative correlation, suggesting a persistent trend.
Liz Ann Sonders is a Managing Director and Chief Investment Strategist at Charles Schwab. The Motley Fool’s Bill Mann interviewed Sonders for our member event FoolFest. This show is a cut of that conversation. They discuss:
- How a deluge of economic information has changed investing.
- What’s happening beneath the surface of broad market indexes.
- The Magnificent Seven and the best performers in the S&P 500.
Companies mentioned: SCHW, GE, NVDA
Host: Bill Mann
Guest: Liz Ann Sonders
Producer: Ricky Mulvey
Engineers: Desiree Jones, Kyle Carruthers
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