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 keep a keen eye on rebalancing. We feel the rally under way has legs, but if you find your equity allocation creeping up beyond your strategic asset allocation goal, be mindful of using strength to pare back some holdings. In turn, there are many investors who are woefully underexposed to the higher-return/high-risk asset classes, including stocks, who should be looking at period of weakness to add back some holdings. A range-bound market can be frustrating, but it can also provide opportunity.”

Sonders says that she has rarely seen such varied opinions on where the market and economy are headed as she’s now seeing. There are a number of good arguments for bears and bulls alike, she says, but she adds that the market is rarely black and white, and that she sees shades of gray.

In the shorter term, Sonders says, recent plunges in sentiment bode well for the market. But, she adds that for an economic recovery to occur, confidence is crucial — and right now there is a lot of uncertainty. Looking further out, she says she continues to believe that a “square root” recovery is likely, with an initial “V”-shaped recovery giving way to flatter period of growth.