city
yellow

DoubleLine Podcasts

S9 E6 Schwab’s Liz Ann Sonders Talks Sentiment, Momentum and Smart “Dumb Money”

DoubleLine Capital’s Jeffrey Sherman and Samuel Lau welcome Charles Schwab Senior Vice President and Chief Investment Strategist Liz Ann Sonders to “The Sherman Show,” recorded on Dec. 10, 2020. Messrs. Sherman and Lau speak to Ms. Sonders about market momentum and investor sentiment, and the impact of new, often younger retail investors on each; growth-value rotation; and how her optimism has been buoyed by human ingenuity in the face of COVID-19, among other topics. Mr. Sherman says there is no difference between retail and institutional investors when in the latter case it is still individuals making decisions influenced by sentiment. Ms. Sonders agrees, noting that retail investors are often classified as contrarian or so-called dumb money indicators, but dumb money has been optimistically positioned since March and for the most part has been right. Mr. Lau brings up the traditional 60-40 portfolio allocation between stocks and bonds, respectively, and wonders if a move to an 80-20 or even higher split might be warranted for retail investors in today’s environment and how often they should be reviewing their allocations. Ms. Sonders is doubtful that there is an “average retail investor” to be coached since there are so many factors that should be guiding portfolio composition including an investor’s age and emotional risk tolerance. In regard to rebalancing portfolios, she sees many investors rebalancing based on the calendar and would prefer it to be driven more by portfolio, volatility or rotation. This would force investors to do what they are supposed to do, which is not so much “Buy low, sell high,” but “Add low, trim high.”

Guest Speaker Bio

The views and opinions expressed herein are as of the date recorded and should not be construed as an offer to buy or sell any securities. Such views/opinions may differ from those of DoubleLine Capital or other of its affiliates and are subject to change without notice. DoubleLine has no obligation to provide any updates or changes. The following audio presentations represent DoubleLine’s intellectual property. No portion of these presentations may be published, reproduced, transmitted or rebroadcast in any media in any form without the express written permission of DoubleLine. DoubleLine has no obligation to provide any updates or changes. To receive permission from DoubleLine please contact [email protected].

Neither DoubleLine nor any of its affiliates makes any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.

DoubleLine is not providing any financial, economic, legal, accounting or tax advice in these podcasts. The receipt of these podcasts by any listener is not to be taken as constituting the giving of investment advice by any DoubleLine entity or individual to that listener, nor to constitute such person a client of any DoubleLine entity. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

logo

DoubleLine

333 S. Grand Ave.
18th Floor
Los Angeles
CA 90071

213.633.8200

 

This is a Test!

DoubleLine is testing our emergency back-up plan. If this were a real emergency, DoubleLine would be posting news, updates, contact information, webcast or conference call information here to keep our clients updated on the situation. To contact DoubleLine, please click here.

×
 

Thank you for your request(s). You will receive slides after the webcast has started. Replay and Recap notifications will take several days following the compliance review.

×
 

    Please fill in your information below in order to open this article in your browser.

    I am an Institutional Investor

    [recaptcha]