Bloomberg Talks Schwab's Liz Ann Sonders Talks Earnings, Macro Environment
Dec 12, 2025
Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, shares her insights on navigating the complex macro landscape. She discusses how earnings might lift equities, even amid uncertainty. Liz explores the Fed's hawkish stance and how underlying economic data could shape interest rates through 2026. With a keen eye on market positioning, she identifies hidden value opportunities and emphasizes the importance of selecting high-quality growth stocks over lower quality options for future success.
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Hawkish Cut Signals Committee Dynamics
- The Fed's rate cut was expected and felt hawkish because it offered no clear future glide path.
- Liz Ann Sonders stresses that dissents and diverse Fed voices support independence and remind markets the FOMC is a committee.
Watch Labor Data For Fed Moves
- Monitor incoming labor market data closely because the Fed remains data dependent and labor is the main driver.
- Be prepared for scenarios where more cuts occur if labor conditions deteriorate, which may not be universally positive.
Earnings Breadth Is Driving Broadening
- Earnings breadth is improving as more non-mega-cap stocks start to outpace the index.
- Convergence stems from decelerating mega-cap tech growth and accelerating earnings for the rest of the market, which should support 2026.