Sonders on Stocks, Gold, and The Machines

Charles Schwab Chief Investment Strategist Liz Ann Sonders says the current market environment “smacks of a buying opportunity,” and says she’s highest on healthcare and technology stocks.

“I’m not a market timer, so I’m not telling clients to back up the truck and load up,” Sonders tells Kiplinger magazine. “But to me, this smacks of a buying opportunity. I think we can have an up year, but there could be a decent amount of pain between now and then.”

Sonders also sounds skeptical of gold in terms of fundamentals. “When an exchange-traded fund is the fifth-largest holder of gold — it owns more gold than most countries — that tells me there’s a lot more performance-chasing demand than there are fundamental underpinnings for gold at current prices,” she says. And she adds that she finds the abundance of “machine-to-machine” trading in the market to be troubling, and causing “a lot of funky things happening that go beyond fundamentals”. She says she thinks machines will cause more “mini-dramas” going forward.

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