Sonders: Market to Meander; Stay Calm

Charles Schwab Chief Investment Strategist Liz Ann Sonders says the U.S. economy has a lot going for it, and thinks investors should remain calm.

“I happen to be a pretty big optimist long-term on our economy,” Sonders tells Bloomberg BusinessWeek. “I’m by no means a perma-bull, but I think there are so many things that the U.S. economy has going for it that much of the rest of the world doesn’t, including labor flexibility and incredible innovation. So I still believe in that. I still think you want to bank on that. Whether it’s 2020, or maybe even in a shorter time span, we’re going to look back at this, I think, and say, ‘Well, what do you know? We’ve pulled ourselves out of this thing again.'”

Sonders says she doesn’t think the Federal Reserve should engage in another round of quantitative easing. “The problem in our economy is not that rates are too high,” she says. Sonders also says the U.S. fiscal cliff and China’s slowdown mean the economy and markets are likely to meander. But she says the worst thing investors can do is panic or speculate, and her best advice is to “remain calm”.