Liz Ann Sonders: This is how the AI bubble bursts

About this episode

Liz Ann Sonders discusses the implications of the AI earnings boom and the dynamics of inflation and deflation in the current market.

Liz Ann Sonders is the chief investment strategist at Charles Schwab, where she shapes the firm's market and economic outlook for millions of investors. A widely cited voice on Wall Street for decades, she joins Phil Rosen on Full Signal to discuss the AI earnings boom, the inflation-vs-deflation debate, bubble signals, and why AI supply constraints could matter more than demand. TIMESTAMPS: 0:00 - AI circular financing 2:36 - Tech stocks getting cheaper 4:21 - Inflation changing valuations 5:02 - Iran and rising inflation 7:12 - AI both inflationary & deflationary 7:44 - Expectations bubble 11:57 - Market leadership 14:43 - Compute and energy 19:05 - AI and labor market 23:13 - What makes a bubble? 25:46 - Complacency and gambling 31:36 - Sentiment vs. hard data 38:44 - How we'll be wrong on AI

People in this episode

Host: Phil Rosen

Guest: Liz Ann Sonders

Topics covered

• AI earnings boom
• inflation vs deflation
• market outlook
• bubble signals
• AI supply constraints
• tech stocks
• labor market

Keywords

• AI bubble
• inflation
• deflation
• market leadership
• tech stocks
• labor market
• bubble signals

Mentioned in this episode

Organizations: Charles Schwab

Places: Iran

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