Investors are showing “casino-like behavior” as stocks reach record highs, according to CNBC. Liz Ann Sonders, chief investment strategist at Charles Schwab, advised investors to take profits and rebalance portfolios on May 28, 2026.
What happened
Stocks have recently been on a winning streak, with the S&P 500 recording its ninth consecutive week of gains. This surge has raised concerns about potential risks associated with high market valuations. “I have been very focused on the blurring of the lines between gambling and investing,” Sonders stated during a CNBC interview.[2]
Despite ongoing geopolitical tensions, including the war in Iran and a historic oil shock, the market has continued its rally. “There’s speculative juices flowing here,” Sonders added, emphasizing the importance of maintaining a balanced investment approach amid rising volatility.[3]
Why it matters
The current market trends raise alarms about concentration risk, where investors heavily favor certain stocks. This could expose them to significant losses if the market experiences a downturn. “No one ever went broke taking profits,” Sonders warned, advocating for a disciplined investment strategy.
Background
On May 20, 2026, major corporate earnings reports showed robust growth, contributing to the market’s upward trajectory. Companies like Dell and Snowflake reported stellar results, with Dell’s stock rising by 35% and Snowflake’s by nearly 40% after exceeding analyst expectations.[1]
What’s next
Looking ahead, investors should remain cautious as potential rate hikes and increasing bond yields could impact market stability. Sonders recommends a rebalancing strategy to mitigate risks and protect against potential speculative excess in portfolios.
