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 this year,” Sonders said. “We’re seeing the market faced with not only pre-existing problems, but also some new problems. I think we’ll see more corrective phases like the one we seem to have gotten a signal of last week.”

But Sonders says that while they’re not undervalued like they were last year at this time, stocks aren’t overvalued. “At best, we’re reasonably valued,” she said. “So now you need the denominator — the E [in P/E] — to do the lifting. I think it probably will — again, not without bouts of corrective phases, but I think earnings will be a pleasant surprise this year.”

Sonders also says that large caps are poised to outperform, and that she doesn’t see any major bubbles on the horizon, according to the Fool.