According to Bloomberg, Liz Ann Sonders, chief investment strategist at Charles Schwab, discussed the unique cycle of the current economy and market on her show this week. She pointed out that the reasons for the market turmoil include inflation data and productivity improvements from artificial intelligence.
Sonders stressed that the U.S. presidential election has a significant impact on the market. Despite strong pre-election markets and low volatility, the capital spending cycle has stalled, with companies taking a sideline approach during the uncertainty.
She warned that even with a new president in office, stock and industry performance remains unpredictable. Due to the polarization of the U.S. legislature, many campaign promises are difficult to achieve, and it is not wise to trade based on election results.