By Madison Alworth
Charles Schwab's chief investment strategist Liz Ann Sonders doesn't think the "longest bull market" necessarily lives up to the hype.
"It's semantics," she told Cheddar in an interview Thursday. "Looking at market cycles, trying to figure out where you are, understanding what that represents in terms of market character and how investors should behave, I think is more important and the nuances around that, instead of just rounded percentage numbers or calendar period of time."
But with the market going almost straight up for the past nine-plus years may have lulled millennials into a false sense of security. Now, Sonders said, they might be unprepared for an inevitable market crash.
"My concern is that for investors who aren't disciplined around things like re-balancing, make sure you bring assets back to your strategic allocation. They're at risk when the inevitable correction, bear market comes. I don't know when but it will come," she said.
On top of that, fintech apps can make investing can feel like a game.
"They don't have the experience of dealing with the emotional side of the risk," Sonders said.
Sonders proposed an even, planned approach to the market, regardless of whether stocks are in a bull or bear run.
"The most important thing that investors of any generation should do is not wing it," she said.
Her suggestion: start with a defined asset allocation plan tied to your risk tolerance, rather than your time horizon. And more squeamish investors may want to look for more stable stocks for their portfolios.
"If you take a disciplined approach, you are able to weather the storm," Sonders said.
Charles Schwab’s chief investment strategist Liz Ann Sonders doesn’t think the "longest bull market" necessarily lives up to the hype.
"It’s semantics," she told Cheddar in an interview Thursday. "Looking at market cycles, trying to figure out where you are, understanding what that represents in terms of market character and how investors should behave, I think is […]
