Where should investors be looking amid ‘market carnage’? Schwab Chief Investment Strategist Liz Ann Sonders shares how investors should be approaching the market after a massive hit over President Donald Trump’s tariff announcement on ‘Barron’s Roundtable.’

Where Should Investors Be Looking Amid ‘Market Carnage’?

Schwab Chief Investment Strategist Liz Ann Sonders Shares How Investors Should Be Approaching the Market After a Massive Hit Following President Donald Trump’s Tariff Announcement on ‘Barron’s Roundtable’

In the wake of a turbulent market downturn triggered by President Donald Trump’s surprise tariff announcement, investors are scrambling to make sense of what comes next. The sudden escalation in trade tensions sent shockwaves through equities, sparking what many analysts have dubbed a period of "market carnage." But amidst the volatility, seasoned voices like Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, are urging calm—and strategic action.

Appearing on Barron’s Roundtable, Sonders offered a grounded perspective on how investors should navigate the choppy waters ahead. “Volatility is not new,” she reminded viewers. “This is a natural part of the market cycle, and in many ways, the correction we’re seeing is a repricing of risk after a prolonged period of low volatility.”

A Shift from Growth to Quality

According to Sonders, one of the most important shifts investors should be considering right now is a move away from pure growth plays and toward higher-quality, more resilient stocks. “This isn’t a time to chase momentum or speculative names,” she said. “Instead, focus on companies with strong balance sheets, consistent earnings, and solid free cash flow.”

She noted that the tariffs—and the broader geopolitical uncertainty they introduce—create headwinds particularly for multinational companies and cyclical sectors like industrials and semiconductors. Meanwhile, defensive sectors such as healthcare, utilities, and consumer staples may offer a safer harbor for investors during periods of heightened uncertainty.

Keep an Eye on the Consumer

While headlines focus on trade wars and corporate earnings, Sonders emphasized that the strength of the U.S. consumer remains a critical component of the broader economic outlook. “If consumer confidence starts to erode, that’s when we’ll really have to worry about recession risk,” she warned. So far, however, data shows that consumer spending remains resilient, bolstered by a strong labor market and low interest rates.

That said, Sonders acknowledged that tariffs could eventually impact consumers directly, particularly if companies begin to pass on increased costs. “We’re watching inflation data closely. If price pressures start to rise in a meaningful way, the Fed may have less room to maneuver.”

The Role of the Federal Reserve

The Fed’s response to the market downturn will be a key factor in shaping investor sentiment. With rate cuts already on the table before the tariff announcement, Sonders believes the central bank will remain accommodative—but she urged investors not to become overly reliant on Fed policy to rescue the market.

“The Fed can’t solve a trade war,” she stated bluntly. “Monetary policy is a powerful tool, but it’s not a panacea. Investors should be positioning for a world where geopolitical risks play a bigger role in market movements.”

Opportunities Abroad—With Caution

Emerging markets and international equities have been among the hardest hit by the tariff news, but Sonders sees potential opportunities for longer-term investors. “Valuations in some international markets are quite attractive right now,” she said. “But you have to be selective. Look for countries with strong internal demand, stable political environments, and manageable debt levels.”

She also suggested that investors who are underweight international stocks may want to start dollar-cost averaging into diversified global funds—particularly those with a focus on quality and dividend-paying companies.

Final Takeaway: Discipline Over Drama

Sonders closed her appearance with a reminder that emotional decision-making is the enemy of long-term investing. “During times like this, it’s easy to get caught up in the noise. But the best investors stay disciplined, diversified, and focused on their long-term goals.”

While the market may remain volatile in the weeks to come, Sonders’ message is clear: keep perspective, stay diversified, and don’t let fear drive your financial decisions.

As the dust settles from the latest round of tariff turmoil, investors would do well to heed her advice—and remember that even in the face of market carnage, opportunity can still be found.