“The pain trade is still to the upside.” Liz Ann Sonders thinks momentum in the market has shifted as major indices reach for all-time highs. Her overarching concern is “complacency,” which creates vulnerability to a market drop. She sees “cyclical leadership” in the equity market, pointing to the strong performance of the industrials sector this year. For 2Q earnings, she thinks the bar is set “sufficiently low” to allow for beats. She explains economic impacts from the latest tariff announcements and how she thinks investors should handle them.