|Jeffrey Kleintop, Chief Global Investment Strategist
Brad Sorensen, Managing Director of Market and Sector Analysis
Liz Ann Sonders, Chief Investment Strategist
Things are Looking Good… But are They Too Good?
Summary: Earnings have been strong enough to support new highs in the equity markets but the risk of a “melt-up” is rising. Investor optimism has risen to levels which indicate that a pullback would be healthy. On a positive note, US companies are finally starting to spend more on investments and capital expenditures rather than issuing debt and buying back shares. Geopolitical concerns should not be forgotten while the markets climb to new highs, but the Schwab team expects the bull market to continue over the near term.