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The bull market is still intact, strategist says

While volatility is back in the market and some are predicting danger, Charles Schwab's chief investment strategist believes the bull run is still intact.

However, it's in a mature phase and therefore there will be more frequent bouts of volatility and pullbacks, Liz Ann Sonders told CNBC's "Power Lunch" on Friday.

After a quiet summer, volatility returned to the stock market. The S&P 500 is down almost 2 percent in the past month. A lot of that volatility has been blamed on uncertainty surrounding the Federal Reserve and whether it will raise interest rates next week.

Festival-goers run past a bull during the Toro de la Pena festival in the central Spanish town of Tordesillas, on September 13, 2016.
Pedro Armestre | AFP | Getty Images
Festival-goers run past a bull during the Toro de la Pena festival in the central Spanish town of Tordesillas, on September 13, 2016.

However, Sonders said in addition to that uncertainty, there is also the realization that we're losing the efficacy of quantitative easing.

"Just digesting the fact that central banks are not omnipotent and that we may have to move to other sources of opportunity for both the market and the economy I think is something the market has to digest, but I don't think it kills the bull market."

And despite the fact some warned of a bond bubble, Sonders said she doesn't think this is the beginning of a major move higher in yield.

"Neither in the U.S. nor in the global economy do we see the kind of growth and/or inflation risk that would suggest that is the beginning of a significant move higher, but I think we are coming up off those extreme lows and probably will see a bit more to go on the upside in yields," she said.

That means her firm is being more cautious and suggesting shorter duration bonds.

And when the bull market in bonds eventually does come to an end, it "doesn't have to end with a bang, with a huge surge in yields," Sonders pointed out.

"It can end because you don't go back to the lows that we saw, the historic lows on the 10-year," she said. "I think there are two different types of finales to a long bull market."

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