Sonders: Bull Market Can Keep Chugging Along
It might be a bumpy ride, but with the Fed poised for a slow increase in rates and valuations not radically out of line, U.S. stocks can keep moving higher.
Liz Ann Sonders, chief investment strategist at Charles Schwab, kicked off the 2016 Morningstar ETF Conference laying out her case for why she thinks the U.S. bull market can keep chugging along.
Fed Ready to Raise
Sonders thinks the Fed is poised to raise rates this year, even if the latest jobs numbers and ISM data means that September is becoming less likely. She pointed to a few factors behind the Fed's eagerness to continue to tighten again. One is that inflation is beginning to pick up somewhat, particularly in the core CPI index which includes a larger weight toward housing.