Schwab's Sonders Answers 7 Market Questions for Investors

Given her position as Charles Schwab’s chief investment strategist, Liz Ann Sonders is constantly asked about the direction of the markets and what is happening in the underlying economy, both here in the U.S. and from a global perspective.

This is true during tranquil moments, Sonders explains, and even more so when there is widespread uncertainty about the potential for a recession and a resurgent bear market. During such times, she says, it becomes even more important to ask the right questions — and to answer them with a sufficient measure of modesty.

Simply put, nobody can predict with certainty what will come next for stocks or bonds, but that doesn’t mean achieving positive investment outcomes in the long term is unattainable if one keeps the right focus. Rather, investors must remain disciplined during challenging times and ensure they are doing all they can to take advantage of the durable powers of diversification and compounding.

Sonders made this case during a webinar hosted Thursday by YCharts, a firm that operates a web-based financial research and analysis platform for asset managers and advisors. During a wide-ranging discussion with Sean Brown, president and CEO of YCharts, Sonders said moments like the present show just how easy it is for investors to become overwhelmed by seemingly conflicting indicators and a cacophony of noise coming from unqualified commentators.

While it is impossible to take all the uncertainty out of investing, Sonders says, it is possible to reduce the noise and fear by asking and answering the right questions.

See the slideshow for a review of the biggest market questions Sonders is tracking today. Though she doesn’t necessarily have concrete answers to all these important inquires, she argues that keeping these issues in mind will help investors navigate the potentially volatile times ahead.