In this episode, Liz Ann Sonders and Collin Martin discuss recent market volatility, highlighting a sharp equity rally following news of a temporary ceasefire abroad. Liz Ann cautions that the dramatic, short‑term swings across asset classes reflect an increasingly “casino‑like” mentality in markets, where trading and speculation often blur with long‑term investing.
Turning to fixed income, Collin reviews heightened volatility in Treasury yields and shifting expectations for Federal Reserve policy. While markets have begun to price in the possibility of a rate cut later this year, Collin notes that Schwab’s outlook remains largely unchanged: The Fed is likely to stay on hold for some time, and long‑term Treasury yields may remain in a relatively stable range. He underscores that for long‑term investors, modest daily moves in yields should not drive portfolio decisions, reinforcing the role bonds play as part of a broader investment strategy rather than a tactical trade.
Then, Liz Ann is joined by Nela Richardson, chief economist at ADP, who offers a nuanced view of the U.S. labor market using high‑frequency payroll data. Richardson describes today’s labor market as solid but lacking dynamism, with job growth highly concentrated in health care due to aging demographics. She also explores how artificial intelligence is reshaping work—not by eliminating entire jobs, but by transforming individual tasks—often augmenting higher‑skill roles while automating simpler ones.
Finally, Collin and Liz Ann discuss which key economic data to watch in the coming weeks.
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Important Disclosures
This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The securities, investment products and investment strategies mentioned are not suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.
All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Past performance is no guarantee of future results.
Investing involves risk, including loss of principal.
Diversification, asset allocation, and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.
Rebalancing may cause investors to incur transaction costs and, when a non-retirement account is rebalanced, taxable events may be created that may affect your tax liability.
Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.
Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options: prior to trading futures products.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications,0 and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.
The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.
International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate this risk.
Money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the fund….
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