Steve Forbes Interviews Liz Ann Sonders, Charles Schwab chief investment strategist
(Click above to open video in new window)
My Notes on the Interview:
2:20 – Establishes her investing philosophy of long time guidance over market timing
3:15 – Explains emotion and time as two components of risk
4:40 – Over time proper asset allocation drives 90% of returns (selling into strength and buying into weakness). It’s also automatic
8:00 – Pockets of recovery throughout the economy
9:45 – Bloomberg financial conditions index as a snapshot for the credit market
12:00 – Fed has a tough balancing job between stimulating economy and limiting inflation. Sonders gives them a good mark
18:30 – Greatest financial lesson: Finance needs to be more accessible (Hope I’m helping!)
19:50 – Not bad a time to go to graduate school, then come back out during boom
20:50 – Agreed, most models are BS. A lot of models are really complicated but depend strongly on a few variables, which can be tweeked by bankers. There’s also the real life problem of “garbage in garbage out” meaning if what you use as inputs isn’t accurate, you’re output will be significantly off.
