Buy If A Correction Hits, Sonders Says

Charles Schwab Chief Investment Strategist Liz Ann Sonders says she remains optimistic on the United States, and thinks that stocks look attractive for long-term investors.

“Stock market resiliency continues to impress, although the possibility of a near-term correction exists and we would view such an event as a buying opportunity,” Sonders writes in recent commentary on Schwab’s web site, along with Brad Sorensen and Michelle Gibley. “The day-to-day noise can distract investors but there are bright spots on the horizon for the U.S. economy that we believe bode well for future growth and longer-term investors.”

Sonders cites a “renaissance” in U.S. manufacturing that involves companies returning their operations to U.S. soil, as well as a sharp decline in the U.S.’s need for foreign oil, as reasons for her optimism on the U.S. economy.

Sonders also says new labor reforms in Europe and efforts to stimulate spending in the Japan “could develop into longer-term positives.” But, she adds, “it’s a bit too early to say as history tends to argue against both movements. And China is looking better in the near term, but longer term concerns are growing and a day of reckoning may be coming.”

While bullish short-term sentiment has Sonders concerned about a near-term correction, she says investors shouldn’t try to time the market. “If your portfolios have become out of whack in any asset class, you should not try to time the market in the short term in an attempt to find the best entry/exit points,” she says. “A better strategy would be dollar-cost averaging over time. Investing should never be about moments in time; but should be a process over time.”

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