Headlines Take a Backseat to Fundamentals in Rally
WashingtonWise | EP139
Headlines Take a Backseat to Fundamentals in Rally
After a rough first quarter of 2026, April saw the best monthly gain in major indexes in more than five years. Is it a sign that investors are refocusing on fundamentals and not overreacting to every geopolitical headline? On the latest episode of WashingtonWise, Liz Ann Sonders, Schwab's chief investment strategist, joins host Mike Townsend for an engaging discussion about the market, the economy, and whether the latest rally can be sustainable. Liz Ann shares her perspective on the strong corporate earnings season, the implications of tariff refunds for companies, how to think about the evolving "AI trade," and what the change in leadership at the Federal Reserve could mean for interest rates and the markets. They also discuss sector performance and how the historic axiom that the markets perform more poorly in summer months than in winter months doesn't fit today's markets. And Liz Ann offers a strong viewpoint on the important distinction between investing and gambling. Mike also provides updates from Washington on several key issues, including the timeline for confirming the new Fed chair, the president's executive order on retirement savings, and the latest round of the gerrymandering wars as states vie to redraw their Congressional district lines.
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