Although Schwab doesn’t see a recession, they also don’t see much growth, which is part of the reason for their market call.
“We have some long-term secular problems,” Sonders said, noting that the high debt load in the U.S. is restraining growth.
As far as the election goes, it’s too early to say what the impact of a Hillary Clinton or Donald Trump presidency would be on the market. What will matter more, she said, is the makeup of Congress.
There likely will be volatility in the markets ahead of the election, but Sonders doesn’t think that will change the current trend in equities.
“Barring some significant exogenous shock or monetary policy mistake, I think we could have a ways to go,” Sonders said.