Key Signals from the Fed & How to Manage Risk

January 19, 2024 Liz Ann SondersKathy Jones
Liz Ann Sonders and Kathy Jones analyze new developments in the Fed's balance sheet and debate the role of risk in portfolio construction.
Transcript Open new window

After you listen

Get up-to-the-minute market data and analysis from Schwab experts on social media.

Get up-to-the-minute market data and analysis from Schwab experts on social media.

@LizAnnSonders
  • @KathyJones
  • " role="dialog" aria-label="

    Get up-to-the-minute market data and analysis from Schwab experts on social media.

    " id="body_disclosure--media_disclosure--154061" >

    Get up-to-the-minute market data and analysis from Schwab experts on social media.

    In this episode, Kathy and Liz Ann dive into a review of Fed policy, including the new developments with the Fed's balance sheet. In addition to likely cutting rates later this year, the Fed is preparing to slow down the pace of quantitative tightening. They also discuss inflation expectations and the impact of geopolitical risks on inflation. 

    The conversation then shifts to the importance of managing risk in a portfolio, both in terms of asset allocation and emotional risk tolerance. They also touch on risk considerations in fixed income investments. Finally, they share their reading, listening, and watching recommendations. 

    If you enjoy the show, please leave a rating or review on Apple Podcasts.

    Get Schwab's view on markets and economy.

    Stocks Climb to Fresh All-Time Highs to Close Week

    The S&P 500 and Nasdaq Composite posted record highs for second day in a row amid technology strength and easing inflation concern.

    Opening Market Update

    In addition to any insight from Fed officials on the PCE data, the latest Michigan sentiment survey should give a peak into consumers' views on inflation and jobs.

    Today's Options Market Update

    In addition to any insight from Fed officials on the PCE data, the latest Michigan sentiment survey should give a peak into consumers' views on inflation and jobs.

    The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. 

    Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

    All expressions of opinion are subject to change without notice in reaction to shifting market 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. 

    Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

    All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. 

    Investing involves risk, including loss of principal.

    The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

    Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

    Indexes are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly. For additional information, please see schwab.com/indexdefinitions.

    Rebalancing does not protect against losses or guarantee that an investor’s goal will be met. 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.

    The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.

    Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

    Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.

    Google Podcasts and the Google Podcasts logo are trademarks of Google LLC. 

    Spotify and the Spotify logo are registered trademarks of Spotify AB.

    0124-40UF