Finance
Liz Ann Sonders on the K Shaped Economy, Market Uncertainty, and Rate Cuts
Date: 2026-01-20 14:40:45
Is 2026 really “uncertain” – or is it something worse?
From the 2025 MoneyShow Masters Symposium Sarasota, Liz Ann Sonders joins Kim Githler for a rapid-fire macro conversation on what could actually move markets in 2026.
They dig into the K-shaped economy and why “unstable” may be a better descriptive market term than “uncertain.” They also discuss how AI-driven investment is changing the growth mix, what investors misunderstand about Fed cuts and mortgage rates, where tariffs are showing up in prices, and why international diversification is finally getting rewarded again.
Sonders also breaks down the Mag 7 narrative with a simple point most investors miss — contribution isn’t the same thing as performance.
About the guests
Liz Ann Sonders is Managing Director and Chief Investment Strategist at the Schwab Center for Financial Research. She leads Charles Schwab’s market and economic outlook work and is known for translating macro shifts into practical investing context.
Kim Githler is Chair and CEO of MoneyShow, which produces MoneyShow and TradersEXPO events and investor education programming nationwide.
CHAPTERS
00:00 – Intro and why macro matters
01:08 – Growth outlook for 2026 and the K-shaped economy
03:15 – Why “unstable” beats “uncertain”
04:45 – If AI capex slows, what picks up the slack
06:28 – Fed cuts expectations and what a hawkish cut means
09:43 – Why Fed cuts don’t automatically lower mortgage rates
11:01 – How tariffs actually work and why it matters
14:19 – International markets outperforming and why diversification is back
17:21 – The Mag 7 narrative vs what the data actually shows
19:39 – Sector calls, factor investing, and what to watch in 2026
22:32 – Audience Q&A on insider selling, housing, and gambling vs investing
📅 Join us February 23-25 at the 2026 MoneyShow/TradersEXPO Las Vegas!
Register here: https://www.lasvegasmoneyshow.com/registration/?scode=061246
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