Charles Schwab’s Liz Ann Sonders says a strong Corporate America and green shoots of economic improvement have her optimistic on stocks.

“The economy is actually creating stuff and not just paper wealth,” Sonders said at the Morningstar ETF Invest 2012 conference, Advisor One reports. She says that while global government debt is a big problem, U.S. consumers’ situations have been improving, with home prices starting to rise and mortgage rates very low. She also says the U.S. manufacturing sector is undergoing a “renaissance” driven by the energy and auto industries.

“The biggest rallies come when economies stink,” Sonders noted, adding that diversification remains a crucial tool for investors in volatile macro times.