Sonders on Interest Rates, and Why Not to Fear Inflation

Add Charles Schwab’s Liz Ann Sonders to the list of top strategists who say that the Federal Reserve’s recent increase of the Discount Rate isn’t a sign that other key interest rates will be upped any time soon. In her latest commentary on Schwab’s site, Sonders says that while the Fed has started winding down some of the short-term, emergency measures it implemented to prevent a systemic collapse, the “paring back [of] broader-based support for… Read More

A Different Take on Valuations

Liz Ann Sonders, Charles Schwab’s chief investment strategist, says in her latest market commentary that the recent downturn helped temper some of the investor optimism that was becoming “troublesome”, and that — despite the big gains stocks have made in the past year — stock valuations continue to look attractive. Sonders’ favorite valuation gauge is the “normalized” price/earnings ratio, which uses four-and-a-half years of historical earnings and two quarters of projected earnings. She also uses… Read More

Sonders: Sentiment Tumble Could Be Good Thing

Liz Ann Sonders, Charles Schwab’s chief investment strategist, says the recent market pullback was needed to push back excessive optimism that had developed, and moving forward her firm is high on healthcare stocks. According to BusinessWeek, Sonders says that enormous sensitivity among investors doesn’t have to be a negative. “I don’t view that as necessarily bad,” she says. “If we were in an environment where you couldn’t do anything to pull back the optimism, that… Read More

Stocks Still Offer Opportunities, But Correction Likely, Sonders Says

In a wide ranging interview with The Motley Fool web site, Charles Schwab Chief Investment Strategist Liz Ann Sonders says she thinks a correction will hit the stock market in the near term. She’s optimistic on the economy, however, and says current equity valuations aren’t bad. “I’m actually probably a little more optimistic than the consensus about the economy, but I think the market has more things with which it’s going to have to contend… Read More

Sonders Optimistic on 2010 — Cautiously

Charles Schwab Chief Investment Strategist Liz Ann Sonders, one of the few to accurately call the start of the recent recession, says she’s expecting some nice surprises from the economy in 2010 and remains fairly bullish. But she also thinks the market is overdue for a correction — one she would welcome. “There are always impediments to growth coming out of every recession, but more often than not the capacity of markets, economies and individuals… Read More

Sonders vs. Whitney on Market’s Current Valuation

Banking analyst Meredith Whitney rattled the markets yesterday when she told CNBC that the U.S. is likely to fall back into recession next year, and said stocks are overvalued. “I haven’t been this bearish in a year,” said Whitney. “I look at the board and every single stock from Tiffany to Bank of America to Caterpillar is up. But there is no fundamental rooting as to why these names are up — particularly in the… Read More

Sonders, Hulbert: Inflation Fears May Be Overblown

One of the biggest fears in the investment world right now involves inflation. And, given the huge sums of money the government has pumped into the economy in the past year or so, the fears seem on the surface to be warranted. But two top strategists, Charles Schwab Chief Investment Officer Liz Ann Sonders and Mark Hulbert of MarketWatch and Hulbert Financial Digest, say a number of factors are conspiring against major inflation — for… Read More

Wien, Biggs, Leuthold, Sonders: Don’t Dismiss the Rally

While the stock market rebound has been met with great skepticism, several top strategists — including some not known for their bullishness — are beginning to think that the rally is indeed for real, reports Financial Advisor Magazine’s Evan Simonoff. “Normally sober, often vinegary sages ranging from Byron Wien to Barton Biggs to Steve Leuthold to Michael Price think that a market which stubbornly refuses to correct its deviant behavior by more than a few… Read More

The Square-Root Recovery?

Charles Schwab Chief Investment Strategist Liz Ann Sonders says it’s becoming less likely that we’ll get a “W” recovery, and more likely that we’ll see a “square-root” recovery — one in which growth will be strong for a while, but then level off or slow down significantly. Among the other interesting points from Sonders (who called the start of the recession back in late 2007 and may have hit the nail on the head again… Read More

Sonders Says We’re in “Coiled Spring” Recovery, Warns Against All or Nothing Bets

Charles Schwab Chief Investment Strategist Liz Ann Sonders tells Fox Business Network that she thinks we’re in the early stages of a “coiled spring” recovery, and says that too many investors are trying to make all-or-nothing calls as they ponder whether to get back into the market right now. Sonders, who correctly called the start of the recession, says there’s a risk that what we’re seeing now is a “sugar high”. But, she adds, “I… Read More