In this episode, Liz Ann Sonders and Kathy Jones analyze the state of the markets and discuss the current expectations around the Fed's potential rate cuts.

Then, Liz Ann speaks with Kevin Gordon about sector trends and changes in the overall market. They discuss the notable shifts in sector performance, particularly in energy and technology. The energy sector has taken the leadership baton from the tech sector, which has been a significant change. The top heaviness of certain sectors, such as communication services and energy, is highlighted. The conversation also touches on Schwab Sector Views and the current outperform and underperform ratings for different sectors, as well as Liz Ann and Kevin's recent article "Family Affair: A Look at Sector Trends." The discussion expands to factor-based investing and the performance of different factors, with an emphasis on profitability and quality. The conversation concludes with a discussion on the implications of the Fed's likely slower cutting cycle on different sectors.

Next, Kathy and Collin Martin discuss corporate bonds and the reasons behind tight spreads. They explore the attractiveness of investment-grade corporate bonds, changing credit quality, and their cautious approach to high-yield bonds. They also touch on the topic of callable bonds and the different types of calls.

Finally, Kathy and Liz Ann offer their outlook on the coming week's economic data.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting.

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What's New in Stock Sectors & Corporate Bonds? 39:57 Share

On Investing

Shownotes Transcript

What's New in Stock Sectors & Corporate Bonds?