Charles Schwab’s Liz Ann Sonders thinks that the economy is improving following a weak first quarter, and thinks the bull market isn’t done.

“We don’t believe low yields are sending a dire economic warning given that leading indicators are showing a healthy rebound from the weak first quarter,” Sonders writes, along with Michelle Gibley and Brad Sorensen, on Schwab’s website. “And we believe this improvement can build on itself and become reinforcing as we head into the second half of the year.  For example, corporate confidence — even among smaller companies — is improving, while other leading indicators of capital spending have moved higher.”

The trio says merger and acquisition activity is booming, which they say may well lead to capital spending and increased hiring. “Although the stock market remains sluggish, with the potential for a correction elevated, the U.S. economy appears to be improving,” they say. “There is probably no great rush to get into the stock market at this point, but maintaining a steady investing discipline in the face of what we think is a continuing secular bull market is key.  Investors frustrated with the low yield environment should be careful about adding too much risk to a portfolio in search of higher yields.”

Sonders, Gibley, and Sorensen also talk about European equities and the Chinese property market. They think the latter is a concern but that extreme worries are overblown.