liz ann: it probably will take a little bit of time. i look at a myriad of sentiment indicators that span attitudinal weeklys, a poll on a basis, other daily indicators we can track, such as behavioral things like the call ratio. i think it is a little too soon to judge whether we are going to highlye of that optimistic sentiment last week get ratcheted down. i think some of the more speculative money is already starting to reposition, but whether we truly see enough of a pullback to bring sentiment down to reasonable , i think it is a little bit too soon to tell. but when you have stretched sentiment, when you have overt levels of optimism, in and of itself it doesn't just risk for the market, but it suggests vulnerability to the extent there is a catalyst. as of now, we can point to coronavirus as a catalyst, but again, we are two days into this in terms of market impacts, so i think it is too soon to make a long-term judgment. vonnie: we have more to talk to you about, so stay with us. liz ann sonders, charles schwab chief investment

liz ann sonders, charles schwab chief investment strategist. nice to see you today. >> hi, guys. thanks. >> when it's comfortable, it's time to be uncomfortable. >> sentiment has clearly gotten stretched here you've spent a lot of time talking about valuation. first it's a description of what metrec you use if you look at equity versus premiums, relative to corporates, or the fed model, the market still looks pretty cheap. on more traditional metrics, it looks much more expensive. the reality or more important factor is that we think of valuation as this fundamental factor because the component parts of most metrics are quantifiable the reality is that valuation is as much as sentiment indicator as anything else i think that's what we're seeing a melding of right now you also talked a lot about the so-called trimming to early. the reality is if your only measure of success is to get out of the top and get in at the bottom, neither get in or get out is an investment strategy. that's gambling on two moments in time and none of us will be consistent doing that. the whole notion arou

liz ann, hugh johnson, thank you. we'll go to washington now and the senate chamber john roberts beginning the swearing in of the impeachment trial. chief justice will be sworn in >> senator, i attend the senate in con formity with your notice for the purpose of joining with you for the trial of the president of united states i'm now prepared to take the oath >> will you place your left hand on the bible and raise your right hand do you solemnly swear that in all things pertaining to the trial of the impeachment op pref the united states now pending you will do impartial justice according to the constitution and the laws so help you god >> i do. >> god bless you. >> thank you >> and there john roberts sworn in, the chief justice to preside over the trial he will now as i understand it swear in the members of the senate who will then pledge to do impartial justice as he just pledged do under oath. ylan mui is standing by. >> reporter: that's right. chief justice roberts will swear in all of the senator, he will ask the

let's bring liz ann sonders. she's at charles schwab.you what's your take on whether this will park whatever the cause of it, spark a more brought and pronounced, prolonged pullback, having had such a great run for markets? >> the honest answer is i don't know what i wrote about in my note was heading into this on pretty much, attitudinal measures which in and of itself doesn't suggest you're ripe for a pullback, but does suggest mods more vulnerability. whether it's long-lasting i think it's too soon to tell. but for now anywhere, i think it represented a park, in an, for instance, energy and technology today getting battered a lot harder than most of the rest of the market we've seen airline stocks, semiconductors, what advice would you give to investors as to which sectors to buy and which ones to avoid right now? >> we wouldn't make any tact dalles shifts in trading recommendations around a one-day event. we're not making any trading recommendations specific to the coronavirus, but clearly when you start to see a pullback, it hits th

would expect them -- >> buying other company with his their shares >> very good context, for sure liz anneyour report recently, and that -- >> well, we've had an overweight large caps, which in our case uses the s&p 500 as a benchmark for over 2 1/2 years right now one of the things that small caps have going for them right now is that benchmark is a pretty significant valuation the problem is almost no other fundamental supports a breakup, if you look at profit margins, small caps, much higher costs of goods sold, if you think will larger companies that have actually had interesting rates many of these of and they could be a nimble as other companies and a much higher percentage of so-called zombie companies, so you add the fundamentals, it's still in a large-cap bites >> for all of us and the records we continue to get, the russell is 12i8 it's not that typical tism we're talking about the things we are concerned about, and things like that, that's smaller companies are less able to absort that. thank you both for joining us. >>> back in october iac charm defended mark zuckerberg's posit

sondersweig and liz ann , and yet you want to break forward.. i want to preserve the essence of that, having some really smart people around the table, a conversation about two or three issues that affect economy and finance. i want to go to "balance of power," fareed dzhokhar area dry drivingd zakaria forward the conversation. the president does not have a foreign policy, has a series of isolationism, unilateral ration is him, ellicott city -- some of them contradictory. one might surge at any particular moment, triggered by usually trump's sense that he might look weak or foolish. david: it is clearly the position of the foreign establishment policy. president trump might read that piece and say, so what? it didn't work the other way. nice articleave a on this yesterday, a huge body of americans support this president. david: he is not the only world leader you could say that about. people say president street -- president putin is a strategist. he is not the only one that does not embrace a long-term strategy when it comes to foreign policy.

market value, joining us right now charles schwab sr., vice president chief investment will strategist liz annrize the earnings season so far what kind of a backdrop are you expecting in 2020? >> well any season still essential obviously, but beat rate near 80% running above long term average, you do tend to bias toward beginning of reporting season, those companies that are out performing consensus estimates i would expect that to come down, i know. the question is less about fourth quarter earnings rightfully so sort of writing off 2019 as flat orientation year given tough kofrpdz against 2018, 2020 looks a little bit better own consensus numbers are edging down for 2020, i think it is too soon to tell he will whether the double-digit growth will come to fruition the market is largely being driven by momentum tried we've got very loose financial conditions fed on sidelines good macrobookdrop, professional o money managers somewhat bearishly positioned agency we owneded the year so i think a lot of performance chasing as well as short covering as welcome as firms funds can be on short side so