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Economic Recovery 'Sharper Than People Think': Sonders
CNBC.com Writer
The market looks healthy, the economy is going to continue to outpace expectations in the near term and this is a favorable environment for equity investing, Liz Ann Sonders, chief investment strategist at Charles Schwab told CNBC in an interview.
“It’s amazing that there are still so many disbeliveers when the math is right there in front of you,” said Sonders at the Schwab Impact Conference. “That’s because people think the market has become disconnected from the economy. The economy’s recovery is not only sharper than a lot people think, but will continue to be at least in the near term. It’s a coiled-spring pop that I don’t think is getting a lot of respect.”
Sonders said investors who are looking to put their money in the market should consider their individual circumstances before investing.
“Look at your overall asset allocation,” she said. “The market looks pretty healthy, but that doesn’t mean go and buy for every investor.”
Additionally, Sonders said she expects earnings to help support the market in the P/E equation.
“We’ve got multiple expansion by virtue of low and falling inflation and the natural movement of the market to reflect the prospects for a better economy,” she said. “It’s easy to say that a lot of easy money has been made, but from an investor putting money to work, I don’t think we’ve had that capitulation fully yet.”
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Disclosure:
No immediate information was available for Sonders or her firm.
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