Schwab Is Neutral on Equities, Favorable on Commodities, Sonders Says
Liz Ann Sonders, Charles Schwab chief investment strategist, says there is no one asset allocation that makes sense for every investor. She says the firm is neutral on equities, less favorable on fixed income, and more favorable on commodities. (Source: Bloomberg)
Charles Schwab's chief investment strategist, Liz Ann Sonders, is favoring commodities over equities and bonds. In an interview, Sonders expressed her preference for commodities, pushing back against generic portfolio advice that fails to consider individual investors' circumstances. She noted that there is no one-size-fits-all asset allocation, emphasizing that Schwab's approach is neutral on equities but more favorable on commodities.
This stance aligns with a broader trend moving away from the traditional 60/40 portfolio mix, which is comprised of 60% stocks and 40% bonds. Other strategists have suggested increasing the commodity allocation, with some proposing a 60/20/20 split. Sonders declined to endorse a specific ratio, stating that the right percentages depend on each investor's goals, time horizon, risk tolerance, need for income, and overall objectives.
She also highlighted that age and investor profile play a significant role in determining the appropriate asset allocation. The discussion around stock-bond diversification remains ongoing, and whether Schwab's preference for commodities proves accurate may depend on the future trajectory of gold and other real assets.
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