Charles Schwab Chief Investment Strategist Liz Ann Sonders thinks we are still in the middle of a secular bull market that began in 2009. Sonders tells FOX Business Network that in the very short-term, sentiment levels may be a bit stretched, but overall valuations are reasonable and the market looks pretty good. Sonders says she would actually be glad to see a bit of a pullback in the short term to shake out some optimistic sentiment, however, noting that that is often what is needed for the market to move even higher. Heading into 2014, she’s high on industrials, tech stocks, and consumer discretionary plays, along with other cyclical areas of the market. She thinks the commodities supercycle has ended, however, which has her much less keen on basic materials stocks. She also is not enamored with utilities and consumer staples, noting that the most recent leg of the stock market’s rally has been led by more defensive type names. Sonders also talks about how correlations have fallen across the world, making diversification an important piece of strategy for investors
For more on Sonders’ take on the markets, you can also check out a recent piece she wrote for Barron’s.