Liz Ann Sonders on The State of the Markets | #498

Today’s guest is Liz Ann Sonders, the Chief Investment Strategist of Charles Schwab.

In today’s episode, Liz Ann starts off by sharing some timeless lessons from her mentor, the great Marty Zweig! Then she shares her view of the economy and markets. She touches on earnings estimates, expectations for the Fed, market breadth, and where she sees opportunity going forward.

(1:08) - Welcome Liz Ann to the show

(1:28) - How Marty Zweig's sentiment indicators had a lasting impact on Liz Ann Sonders' approach

(5:26) - Marty Zweig’s Investing Rules

(5:42) - Reminiscences of a Stock Operator

(7:30) - Rukeyser's advice to Liz Ann: Explain finance so non-finance parents understand

(10:01) - Understanding rolling recessions: A pandemic-era phenomenon

(12:54) - Unprecedented weakness in leading indicators (LEI) hints at potential recession

(15:49) - Housing market varies between existing/new and single/multifamily homes

(19:27) - Fed's future path unclear

(24:39) - Market's unpredictability and rich multiples require earnings growth for justification

(39:30) - Emphasizing international diversification, especially in Japan

(42:30) - Investors are turning to treasuries for yield

(47:11) - Why this year feels like a "wall of worry" market

(48:11) - Why the "get in, get out" approach to investing is gambling, not disciplined strategy

(51:03) - What investment belief Liz Ann holds that most of her professional peers do not

Learn more about Liz Ann: Charles Schwab; Twitter;

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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 

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