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CNBC PRO Talks

Charles Schwab's chief strategist Liz Ann Sonders sees 'slow melt-up' in 2017

Liz Ann Sonders, who sets the tone for $2.7 trillion of investors' assets as chief investment strategist at Charles Schwab, shares her investment outlook for 2017 during an extensive strategy session with CNBC's Mike Santoli.

"I don't put all the credit on the results of the election for the rally in the stock market," said Sonders, who thinks a solid foundation for stocks was already in place given the positive trend in economic data and a bottom in corporate earnings.

"If you look at the improvement in the economic data, it predated the election. So that the bottom in, say, the Economic Surprise Index put out by Citigroup, occurred in mid-October. So I think some of this move reflects the economic data and earnings data having already approved at this point," she said.

She said just as in 2016, there could be a "slow melt-up" for stocks this year, and investors can profit from it by seeking value strategies.

"Fundamentally, I think value makes sense, just don't put blinders on in terms of where you find that value," Sonders said.

Other topics they discussed include:

  • Her favorite sectors and asset allocations for 2017
  • The investment strategies that make most sense for investors
  • Investor sentiment measures and what those metrics show
  • Market valuations, her outlook for earnings, yields and fixed income

PRO members can also read the entire transcript of the exclusive interview below.