Stock market: 'Rotational corrections' are creating opportunities, Liz Ann Sonders says

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  • Опубліковано 8 лип 2024
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    As the S&P 500 (^GSPC) marks its 35th record close, market concentration remains a concern among investors. Charles Schwab's chief investment strategist Liz Ann Sonders joins Morning Brief to provide her market outlook. Sonders characterizes current market dynamics as "a tale of two markets." While the major indexes continue to reach all-time highs, she notes that "under the surface, there's a much different picture." This underlying landscape is marked by significant churn, rotation, weakness, and "turmoil to some degree," particularly within the Nasdaq (^IXIC) index. However, Sonders sees a silver lining, observing that "opportunities have been created" by these "rotational corrections." Addressing the challenge of timing market shifts, Sonders advises caution: "I think it's a fool's errand... if you hold a lot of the big winners to try to figure out at some point there will be consolidation, when does that start?" Instead, she advocates for another approach to investing. "It's why we always point to the really beautiful discipline that is rebalancing," Sonders told Yahoo Finance. "It forces investors to do a version of what we know we're supposed to, which is buy low, sell high, but in this case add low, trim high." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith
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