Chuck to advisers: Don’t sweat the fiscal cliff
Schwab founder says money can be made in the toughest of markets
Forget the bad news, and listen to Chuck.
Charles Schwab, founder of the firm that bears his name delivered a positive message about the market and the economy to advisers Wednesday afternoon at the Schwab Impact conference in Chicago.
“I’m totally empathetic” with what advisers are going through in advising their clients, Mr. Schwab said.
He told the firm’s affiliated advisers to “go back and look at the charts, and look at the points of maximum uncertainty, and we’re probably near one today,” he said.
“I’ve made money in the [past] 50 years, in all environments,” he said. “We’ve had some very high capital gains rates” over that period. “Returns may have been slightly less, but you always have an opportunity to make money.”
Mr. Schwab, a prominent Republican, made it clear he was disappointed with the election.
“We need to see some comprehensive accommodation by the president” in reaching a budget deal, he said.
In the spring, there may be a resolution to the fiscal cliff, Mr. Schwab said, but until then, look for volatility and an opportunity to buy stocks, and “ignore the noise,” he said.
He got the big laugh reaction from the audience when he then turned to moderator and CNBC host Maria Bartiromo and lightheartedly chided her for creating the market noise.
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