Liz Ann Sonders: There's No Such Thing As A Typical Interest Rate Cutting Cycle

Finally, you can easily access Bitcoin in a low-cost ETF with the VanEck Bitcoin Trust (HODL). Visit https://vaneck.com/HODLFG to learn more. VanEck Bitcoin Trust (HODL) Prospectus: https://vaneck.com/hodlprospectus/ __ Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, returns to Forward Guidance to share her investment outlook on U.S. equities. Sonders notes that a handful of large cap stocks have been leading the S&P 500 index higher, while the majority of stocks have been underperforming the index. While this so-called “breadth weakness” occurred at or near stock market peaks of 1999 and 2000, Sonders notes that breadth is strengthening. The phrase “Magnificent 7” is near-meaningless since, as of mid-March, the Mag7 includes both the best performing stock in the S&P 500 (Nvidia) and the worst performing stock (Tesla). Sonders argues that there is no such thing as a “typical” Fed interest rate cutting cycle, and that slower cutting cycles have tended to coincide alongside more bullish stock market action than fast cutting cycles. Filmed on March 4, 2024. __ Follow Liz Ann Sonders on Twitter https://twitter.com/LizAnnSonders Follow VanEck on Twitter https://twitter.com/vaneck_us Follow Jack Farley on Twitter https://twitter.com/JackFarley96 Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance Follow Blockworks on Twitter https://twitter.com/Blockworks_ __ Use code FG10 to get 10% off Blockworks’ Digital Asset Summit in March: https://blockworks.co/event/digital-asset-summit-2024-londonTimestamps: (00:00) Introduction (00:24) The Rally In S&P 500 Has Been Ferocious, The Rally In Average Stocks Has Not (04:22) Large Cap Stocks Are Leading The S&P 500 Higher... Smaller Names Have Performed Less Well (09:31) Earnings Growth Is Very Strong (Unlike In 2000) (12:16) Companies' Earnings Guidance Is Less Specific Than Pre-2020 (16:47) Economic Outlook In U.S.: Rolling Re-acceleration (20:13) Labor Market Situation Has Been "Mirror Image" Of What Normally Happens (22:05) This Economic Cycle Has Been An "Orange" Compared To History's "Apples" (22:29) VanEck Ad (24:53) There Is No Such Thing As A "Typical" Fed Rate Cutting Cycle (30:57) Slower Cutting Cycles Have Been Somewhat More Bullish Than Rapid Cutting Cycles (36:27) Artificial Intelligence (AI) (43:17) Quality As A Factor (45:39) Momentum Has Been "Best Performing Factor Year-To-Date" (49:37) Size and Value As Factors __ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.