Sonders on Stocks, Gold, and The Machines

Charles Schwab Chief Investment Strategist Liz Ann Sonders says the current market environment “smacks of a buying opportunity,” and says she’s highest on healthcare and technology stocks. “I’m not a market timer, so I’m not telling clients to back up the truck and load up,” Sonders tells Kiplinger magazine. “But to me, this smacks of a buying opportunity. I think we can have an up year, but there could be a decent amount of pain… Read More

Hussman: Don’t Believe That Stocks Are Cheap

While Liz Ann Sonders says stocks are undervalued using her computation of “normalized” earnings, fund manager John Hussman has a far different view. In his latest market commentary, Hussman says the S&P 500 is trading for about 40% above historical norms based on his own normalized earnings calculation. One apparent difference between Sonders’ and Hussman’s calculations is that Sonders uses a blend of as-reported and operating earnings. Hussman appears to be more focused on as-reported… Read More

Sonders Says Stocks on Cheap Side

With stock valuations on the cheap side and hordes of retail investors still sitting on the sidelines, Charles Schwab Chief Investment Strategist Liz Ann Sonders says it’s more likely that we’ll see a “melt-up” in the market than a “melt-down”. Sonders tells Yahoo! TechTicker that she thinks earnings estimates are still “marginally low” for the second quarter, and talks about the method she uses to assess the market’s valuation.

Sonders: Opportunities in a “Gray” Market

Charles Schwab Chief Investment Strategist Liz Ann Sonders says that she sees a range-bound market for the short term, but that opportunities exist — particularly for investors who are willing to rebalance their portfolios. “We do feel the market is likely somewhat range-bound for now until a catalyst knocks it out in one direction or another,” Sonders writes in her latest market commentary on Schwab’s web site. “However, that’s an environment ripe for investors who… Read More

Sonders Says Deflation a Concern, but Double-Dip Unlikely

While saying that the market correction “may have legs”, Charles Schwab Chief Investment Strategist Liz Ann Sonders doesn’t expect a double-dip recession, and thinks a couple bullish signs have emerged for stocks. “I believe we’ll see growth estimates pared back for the second half of this year and next year,” Sonders writes in her latest market commentary on Schwab’s site. “And the market’s correction may have legs. But the economy is now moving from recovery… Read More

Sonders Not Panicking

Liz Ann Sonders, chief investment strategist at Charles Schwab, says the Greek debt crisis is much different in nature than the subprime mortgage crisis that pummeled U.S. markets in 2008, and says investors who’ve been sitting on the sidelines should use the recent market dip as a buying opportunity — if they have the stomach for it. “The key is the investor’s current allocation relative to plan and risk tolerance,” Sonders writes in a piece… Read More

Sonders: Recovery Is More than “Sugar High”

Charles Schwab’s Liz Ann Sonders — who made what appear to have been very accurate calls on the start and end of the recent recession — says the U.S. economic recovery is now entering self-sustaining mode. “It’s more than just a ‘sugar high’,” Sonders tells Harlan Levy in an interview on Seeking Alpha. “This is a legitimate recovery, in many ways as a result of a lot of the traditional forces that kick in in… Read More

Sonders “Relatively Optimistic”

Another top strategist who is discussing the perils of market timing is Charles Schwab Chief Investment Strategist Liz Ann Sonders. In her latest market commentary, written with Schwab’s Brad Sorensen, Sonders says that investors who remained on the sidelines waiting for the market to turn downward missed out on some strong first-quarter gains. “This again helps illustrate the dangers of trying to ‘time’ the market,” she and Sorensen say. “Investors who were waiting for a… Read More

Sonders: Wall of Worry Intact, Valuations Modest

Charles Schwab Chief Investment Strategist Liz Ann Sonders thinks we’ll see increased volatility in the stock market, but expects stocks to continue to grind higher from here. Sonders tells Yahoo! TechTicker that the “wall of worry” is still intact, and says a bear market in the bond markets could trigger a “melt-up” in the stock market. And, she says valuations remain modest for a low-inflation-rate period.

Sonders Remains Optimistic

While some have been concerned about the low volume and lessened volatility in the market of late, Charles Schwab’s Liz Ann Sonders remains upbeat on stocks. “The grinding-higher [market] action that has resulted is certainly no disappointment,” Sonders says in her latest market commentary, written with Brad Sorensen. “The market has moved through important resistance levels while setting new 52-week highs.” She says a near-term pullback is a possibility given recent increases in sentiment, but… Read More