Charles Schwab’s Sonders on her outlook for 2026
December 22, 2025 • 4m 9s
? (Correspondent)
00:00.110
joining
us
now
is
charles
schwab
's
chief
investment
strategist
liz
ann
saunders
liz
ann
great
to
see
you
we're
finishing
up
a
third
straight
you
know
very
rewarding
year
for
US
equity
investors
what's
your
kind
of
headline
message
to
them
in
terms
of
what
ought
to
be
expected
? (Correspondent)
00:15.710
in
twenty
twenty
six
and
what
are
the
key
themes
they
should
focus
on
Liz Ann Sonders (Chief Investment Strategist)
00:19.430
well
well
not
that
history
ever
serves
as
a
as
a
perfect
guide
i
love
warren
buffett
's
quote
about
if
if
it
market
you
know
predicting
market
returns
was
just
about
history
then
librarians
would
be
the
the
richest
people
in
the
in
the
world
but
there
if
you
do
look
back
at
Liz Ann Sonders (Chief Investment Strategist)
00:36.270
three
strong
or
up
years
in
a
row
more
often
than
not
they're
followed
by
another
decent
year
i
think
it's
going
to
be
a
choppier
pattern
though
but
what
i
think
will
characterize
twenty
twenty
six
more
than
just
maybe
up
or
down
is
pretty
swift
rotations
under
the
surface
and
Liz Ann Sonders (Chief Investment Strategist)
00:54.430
that's
something
that
really
started
to
bubble
up
over
the
past
couple
of
months
and
you've
seen
leadership
shifts
are
pretty
remarkable
and
i
think
that's
likely
to
continue
i
think
it's
it
sets
the
stage
for
a
more
level
playing
field
for
active
relative
to
passive
and
for
Liz Ann Sonders (Chief Investment Strategist)
01:10.950
equal
weight
relative
to
cap
weight
and
for
opportunities
down
the
cap
spectrum
but
not
in
a
linear
fashion
i
think
in
fits
and
starts
? (Correspondent)
01:19.510
yeah
i
guess
the
sort
of
leadership
shifts
you
refer
to
in
the
last
couple
of
months
is
probably
you
know
somewhat
away
from
the
mega
cap
secular
growth
names
and
toward
more
cyclicals
right
so
financials
and
and
other
parts
of
consumer
cyclicals
and
things
like
that
is
that
a
? (Correspondent)
01:33.470
trend
that
we
should
extrapolate
into
next
year
or
do
you
think
it's
just
going
to
be
kind
of
continually
passing
the
baton
Liz Ann Sonders (Chief Investment Strategist)
01:40.670
i
do
think
that
there
are
probably
legs
to
some
of
the
recent
leadership
areas
like
healthcare
maybe
in
financials
but
what's
also
interesting
is
that
even
within
the
broader
technology
space
and
i'm
not
just
speaking
specifically
about
the
tech
sector
but
the
broader
tech
space
Liz Ann Sonders (Chief Investment Strategist)
01:57.910
sometimes
our
stocks
fall
into
communication
services
you're
seeing
a
broadening
out
there
too
and
not
necessarily
to
the
kind
of
newbies
on
the
block
you
know
you've
got
the
western
digital
sandisk
and
seagate
in
the
top
five
best
performers
year
to
date
so
you're
you're
seeing
Liz Ann Sonders (Chief Investment Strategist)
02:14.950
more
dispersion
within
sectors
and
even
within
cohorts
within
AI
related
cohorts
you
know
nvidia
is
still
the
number
one
contributor
to
S
and
P
returns
but
that's
a
function
of
the
multiplier
of
its
size
it's
actually
ranked
i
think
eighty
third
in
terms
of
price
performance
on
Liz Ann Sonders (Chief Investment Strategist)
02:35.790
a
year
to
date
basis
so
i
think
that's
another
thing
that's
really
important
for
investors
to
understand
is
not
to
conflate
contribution
to
cap
weighted
returns
versus
price
performance
i
think
from
a
price
performance
standpoint
there's
a
growing
kind
of
pool
of
opportunities
? (Correspondent)
02:55.030
lizanne
talking
about
health
care
it
was
hard
not
to
notice
the
president
call
insurance
companies
fat
cats
on
friday
night
and
i
wonder
in
these
spaces
where
margins
have
been
robust
or
at
least
pricing
has
been
robust
going
into
midterms
is
there
a
reason
to
be
cautious
about
? (Correspondent)
03:11.830
some
of
the
sectors
going
in
at
least
the
first
half
of
next
year
well
Liz Ann Sonders (Chief Investment Strategist)
03:15.790
i
i
think
that
there
is
the
political
angle
to
thinking
about
the
market
from
a
sector
from
an
industry
standpoint
whether
it's
just
rhetoric
coming
from
the
frustration
or
actually
proposed
policy
changes
i
think
that
is
one
of
the
factors
that
will
be
a
volatility
driver
i
Liz Ann Sonders (Chief Investment Strategist)
03:32.590
don't
expect
to
see
a
significantly
volatile
year
in
the
aggregate
and
in
a
linear
fashion
but
i
think
we're
going
to
have
bouts
of
volatility
some
driven
by
the
traditional
fundamentals
of
earnings
season
and
you
you
know
beat
or
miss
on
top
line
or
bottom
line
i
think
there's
Liz Ann Sonders (Chief Investment Strategist)
03:48.550
going
to
be
a
lot
of
focus
on
profit
margins
and
and
actual
productivity
statistics
but
that
political
angle
they're
taking
stakes
in
companies
which
seems
to
be
part
of
the
mission
continued
mission
here
or
sort
of
bashing
companies
or
industries
you
can't
not
have
that
as
a
Liz Ann Sonders (Chief Investment Strategist)
04:05.990
component
of
the
volatility
driver
equation
Autoscroll