Cathie Wood, Mario Gabelli, and 5 Other Pros on the Market Turmoil—and What Comes Next
Cathie Wood, Mario Gabelli, and 5 Other Pros on the Market Turmoil—and What Comes Next
By Steven Orlowski, CFP, CNPR
The markets are lurching, investors are reeling, and the economic outlook seems mired in uncertainty. Inflation refuses to fade quietly, interest rates remain sticky, and geopolitical risks—from conflict in Eastern Europe to tension in the South China Sea—continue to unsettle investors. Against this backdrop, we turned to some of the most prominent names in investing to get their read on the current market turbulence—and where they see opportunity ahead.
Here’s what seven of the industry's most influential voices—Cathie Wood, Mario Gabelli, Liz Ann Sonders, Jeffrey Gundlach, Rob Arnott, Nancy Tengler, and Jim Bianco—have to say about what’s happening now and what comes next.
Cathie Wood: Innovation Stocks Are Set to Rebound
The founder and CEO of ARK Invest remains unapologetically bullish on innovation, even as many of her flagship fund's holdings have been hammered in the past year.
“Disruption has never been more discounted,” Wood tells us. “Markets are pricing innovation like it’s 1999 all over again, only in reverse. We think this is an historic opportunity.”
Wood points to advancements in AI, robotics, and genomic sequencing as areas where valuations have become “absurdly cheap.” She believes that as inflation cools and the Federal Reserve eventually pivots, high-growth tech will roar back.
Mario Gabelli: It’s All About Stock Picking Now
Value investing legend Mario Gabelli, chairman and CEO of GAMCO Investors, sees the current environment as fertile ground for disciplined stock pickers.
“This is not a market for the faint of heart—or for index huggers,” Gabelli says. “But it's a great one for those who know how to value cash flows and identify franchises with pricing power.”
Gabelli is focusing on companies with strong balance sheets, pricing power, and exposure to essential industries like energy, defense, and infrastructure. “Volatility is the friend of the long-term investor,” he adds.
Liz Ann Sonders: Don’t Fight the Fed—or the Tape
Charles Schwab’s Chief Investment Strategist, Liz Ann Sonders, is preaching caution. She sees the market caught in a transition from policy-driven euphoria to earnings-driven realism.
“This is a regime change—financial conditions are no longer easing, and the Fed is no longer a tailwind,” Sonders notes. “Markets are still adjusting to that.”
Sonders advises investors to stay diversified and avoid chasing rallies. She favors high-quality equities, dividend payers, and sectors like health care and industrials.
Jeffrey Gundlach: The Bond Market Is Sending a Warning
DoubleLine CEO Jeffrey Gundlach, often dubbed the “Bond King,” believes the fixed income market is flashing warning signs that equities have yet to fully heed.
“The yield curve is still inverted. That doesn’t happen in healthy economies,” Gundlach says. “The equity market is living in denial.”
He predicts recession risk is underappreciated and expects long-term interest rates to move lower as growth slows. Gundlach favors long-duration Treasurys and investment-grade credit.
Rob Arnott: AI Is Real—But So Is the Hype
The founder of Research Affiliates, Rob Arnott, is well known for his contrarian takes. He sees long-term potential in AI, but warns that market expectations may be running too hot.
“There’s a big difference between transformational technology and speculative fervor,” Arnott says. “We saw it with the internet in the late '90s—and again with crypto more recently.”
Arnott advises investors to be selective in their exposure to AI and to not abandon value-oriented strategies. He’s seeing compelling opportunities in emerging markets and in small-cap value stocks.
Nancy Tengler: Dividend Stocks Offer Stability in Uncertain Times
As Chief Investment Officer of Laffer Tengler Investments, Nancy Tengler is leaning into what she calls “dividend growth and income resiliency.”
“In a high-volatility, low-visibility environment, dividends matter more than ever,” Tengler says. “They provide both income and a signal of quality.”
She’s bullish on companies with a long track record of dividend increases, particularly in sectors like consumer staples, financials, and utilities.
Jim Bianco: The Fed Is Not Done Yet
Market strategist Jim Bianco, founder of Bianco Research, thinks many investors are misreading the Federal Reserve’s resolve.
“The market wants to believe the Fed is finished. But Powell keeps saying: we’re not done,” Bianco says. “Take him at his word.”
He warns that sticky inflation and strong labor markets could prompt another round of tightening. As for strategy, Bianco favors inflation-sensitive assets like commodities and TIPS.
Bottom Line: Expect More Chop—and Stay Nimble
With so many cross-currents—tightening monetary policy, geopolitical uncertainty, and stretched valuations in parts of the market—there’s no single roadmap for investors. But one theme rings true across these diverse voices: this is a time for active thinking, selectivity, and humility.
“Markets are humbling teachers,” says Gabelli. “But they reward patience, discipline, and courage.”
In short: buckle up. The next chapter is still being written.
Disclosure: The author does not hold positions in any of the funds or stocks mentioned above. Opinions expressed are those of the experts quoted and do not constitute investment advice.
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