In a recent CNBC interview, Charles Schwab chief strategist Liz Ann Sonders warns investors to expect more headwinds given that the economy and the markets are in the late stages of the cycle—and cites increases in both capital spending and productivity as indicators.

“That doesn’t mean we’re at an imminent end,” Sonders explains, “but it’s later-cycle-type behavior.” She adds that tighter monetary policy and the Fed’s “unprecedented” shrinking of its balance sheet as factors that pave the way for a tougher stock market environment in 2018. “I would expect to see some bouts of pullbacks,” Sonders said