Liz Ann Sonders Says Markets Ignore FX Volatility

The video discusses the recent spike in FX volatility, noting that while it is at a yearly high, it remains below long-term averages. The impact on asset classes like the S&P 500 is minimal, with historical data showing limited correlation between FX volatility spikes and significant equity market losses. The discussion shifts to current market dynamics, highlighting the stronger dollar, flat yield curve, and ongoing Fed rate hikes. Investors are advised to consider defensive strategies as market risks increase, with a focus on value over growth stocks. The video concludes with a cautious outlook, acknowledging potential volatility and risks but not signaling the end of the secular bull market.

What factors are contributing to the current defensive outlook in the market?

What are the potential risks for investors in the current market environment?