S&P 500 hits records as under 48% of stocks top 200-day average
The segment features Schwab Chief Investment Strategist Liz Ann Sonders discussing the upcoming week of major earnings, CPI, and PPI releases and their potential impact on October Fed decisions. Sonders highlights "bad breadth" or "halitosis" in the market, with the cap-weighted S&P 500 performing well on mega-cap AI/tech leadership while most stocks lag, including fewer than half above their 200-day moving average and a record share with negative beta. The conversation shifts to diverging stock-bond correlations, labeling the current environment a return to the volatile "Temperamental Era" of the late 1960s-1990s driven by inflation swings, contrasting it with the stable "Great Moderation." Sonders advises favoring high-quality equities with strong balance sheets and investment-grade bonds over high-yield in the current rising-yield setting. Sourcing relies on Sonders' real-time analysis and referenced charts (e.g., data center construction up sharply while total construction declines), with no anonymous sources or external guests. The throughline emphasizes separating signal from noise amid concentrated leadership and the need for creative asset allocation beyond the traditional 60/40 portfolio.
Source: Fox Business