Sonders: Market Outlook Is Better than You Think

Charles Schwab Chief Investment Strategist Liz Ann Sonders says she doesn’t think a double-dip recession is in the cards, and thinks the outlook for the market is good — even if growth is slow. Schwab tells Yahoo! Daily Ticker that valuations look good based on 2011 and 2012 earnings estimates. She also says she’s examined years when the economy has grown at less than 2% or so, and years when growth has been below 3% or so. In both cases, she says, stocks have averaged returns of 13%-14%, with few negative years. One caveat: She says inflation must stay in check. But she adds that the recent economic soft patch has been helping on that front by keeping commodity prices down.