A lot of performance to be found in market outside of 'Mag 7', says Charles Schwab's Liz Ann Sonders

Market Risks & Opportunities - Concerns exist regarding potential risks, including "gray swans" or "black swans," that could disrupt the market's upward trend since April 8th [3] - Earnings season may bring earnings-related risks at the aggregate or individual stock level [3] - Dispersion is occurring within the AI theme, with only four of the "magnificent seven" stocks outperforming the S&P 500 [4] - While Nvidia is the top contributor to S&P gains year-to-date due to its market capitalization, its price performance ranks lower within the S&P 500 and NASDAQ [4] - Opportunities exist beyond concentrated investments in cap-weighted indexes [5] - AI's influence is broadening into power generation, data centers, and adopters [6] Retail Trader Behavior & Recommendations - Retail traders are chasing lower-quality, smaller-sized stocks [8] - Charles Schwab advises clients to "fade" these trends and focus on higher-quality market segments [8] Market Breadth & Underlying Performance - Cap-weighted indexes may be dragged down by leading stocks, but opportunities can still arise [9] - Stronger underlying performance can be observed even when leading stocks are underperforming [10][12] - The performance of "soldiers" catching up while "generals" retreat can indicate better underlying breadth [11]