The Great Moderation Is Over | Liz Ann Sonders on What Replaces It

Excess Returns · Jan 14, 2026 · 59m

In this episode of Excess Returns, we welcome back Liz Ann Sonders to discuss the evolving market and economic landscape heading into 2026. The conversation focuses on why this cycle feels fundamentally different, how instability rather than uncertainty is shaping investor behavior, and what that means for inflation, the labor market, Federal Reserve policy, and equity markets. Liz Ann breaks down the growing bifurcation across the economy and markets, the shift away from the Great Moderation era, and how investors should think about diversification, earnings, valuations, and AI-driven…