Sonders On The Manufacturing & Energy Renaissance

Charles Schwab Chief Investment Strategist Liz Ann Sonders says pessimism is still dominating the market — and that has her feeling bullish.

“It is shocking that four years into a bull market we still have massive outflows out of equity. I’m amazed at how much skepticism I’m still met with after four years,” Sonders said in her keynote address at the Financial Planning Association’s New York chapter in early May, Advisor One reports. “I’m not a perma-bull, but I’m optimistic. At conferences, almost all the questions are bearish. I love that because I’m a contrarian.”

Sonders also says that the U.S. is going through a manufacturing and energy renaissance. Her favorite “emerging market”, she said, is now “Middle America”, where that renaissance is based. Sonders said that, on a recent trip to China, several representatives of the American Chamber of Commerce in China told her that they planned on bringing their businesses back to the U.S. over the next decade amid the shift.

Advisor One also highlighted some other bullish advisors, including Bob Doll, Chief Equity Strategist at Nuveen. Doll recently told onlookers at the Tiburon CEO Summit that those investors who are waiting for things to get better before putting money into stocks are missing the boat. “People can’t wait for the pullback to put some money in the market,” he said. “There’s a lot of cash sloshing around and looking for an entry point.”

Doll expects payout ratios and dividends to rise. He likes large-cap stocks over small caps, and industrial and tech sector cyclicals over defensive stocks.