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Investors face a blurred line between gambling and investing

Charles Schwab chief investment strategist Liz Ann Sonders says the Federal Reserve is unlikely to cut interest rates anytime soon.

Reported · Written up by our desk · Fund Industry

MarketWatch highlights concerns from Charles Schwab chief investment strategist Liz Ann Sonders about how many retail investors view the gap between gambling and investing. In an interview, she said the line has become dangerously blurred, and that this misunderstanding is the single biggest mistake retail investors are making today.

Sonders also pointed to studies suggesting younger investors see gambling as a reasonable route to wealth creation, rather than treating it as fundamentally different from investing. She said she is deeply concerned by that belief and its implications for how people approach markets.

In the same discussion, she discussed what valuation metrics can tell investors and what they cannot, emphasizing that popular measures may not capture all the information needed to judge investment outcomes. She also said the Federal Reserve is unlikely to cut interest rates anytime soon.

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