What Lies Beneath (your stock or bond index) with Liz Ann Sonders

This PIMCO Accrued Interest episode features host Greg Hall speaking with Charles Schwab Chief Investment Strategist Liz Ann Sonders about how AI has become a dominant force in equity and bond indices, creating concentrations and distortions. They discuss how AI exposure can permeate portfolios beyond a handful of technology stocks and examine hidden risks, active management in equities, the AI capex boom and restoring balance in portfolios.

1. AI has become one of the dominant forces shaping both equity and bond indices, creating concentrations and distortions.
2. Index performance is increasingly driven by a small group of companies, and investors may not fully appreciate how much AI exposure they own.
3. The discussion covers where hidden risks reside and whether those are risks investors actually want to take.
4. The episode examines active management in equities, the AI capex boom, fundamentals, diversifying sources of return and restoring balance in portfolios.