Schwab's Sonders Warns on 9-Week Stock Rally as Investors Chase Casino-Like Bets

3 articles · Updated · Business Insider · May 30

Nine straight weeks of S&P 500 gains prompted Charles Schwab strategist Liz Ann Sonders to urge investors to take some profits and rebalance portfolios rather than chase the rally.
Blowout earnings have powered the surge, with Dell jumping 35% and Snowflake nearly 40% after results that beat expectations and, in Snowflake's case, an expanded Amazon partnership.
Sonders said speculative trading is blurring into gambling, with short-term money treating stocks like lottery tickets and raising concentration risk as parabolic moves build.
The warning comes even as the market shrugs off the Iran war, an oil shock, rising bond yields, inflation worries and the risk of further rate hikes.

With record earnings fueling a market frenzy, what hidden weaknesses could trigger a sudden and severe correction?

Stocks are hitting new highs while bond yields are spiking. Which market is telling the truth about the economy?