However, the downside scenarios for the market's two biggest walls of worry — the path of the coronavirus and the path of the Fed — are starting to get priced in, Mahajan told CNBC's"There is more of a chance for an upside surprise versus downside surprise," said Mahajan, Edward Jones's senior investment strategist. "There is still a chance that we get the year-end rally, especially as investors start to look towards 2022.
"We still think markets can move forward, can move higher, perhaps not as high as we saw in the last three years, but in line with earnings growth and perhaps [with] a little bit more volatility," she said.As for the Fed, Mahajan expected it to officially accelerate itsat the upcoming December meeting, finish the effort by March of 2022, then pause and reassess inflation and labor trends before proceeding to interest rate hikes.
In the meantime, long-term investors shouldn't let market volatility derail their strategies, but should still take account of their portfolio diversification, Mahajan said. Defensive trades such as consumer staples, health care and utilities stocks could also play catch-up over time because of the underlying companies' ability to pass prices onto consumers, she said.
TradingNation Typical when we are headed South.😎
TradingNation Propaganda
TradingNation LOL says the “strategist” who is personally long and has put every customer fully long. Ridiculous that CNBC keeps on interviewing all these bulls. What else do you expect them to say CNBC has been biggest stock market cheerleader as we all know.
TradingNation Everyone has mastered lying, even Dr. Fauci, that they misrepresent the facts and people see them as the opposite of what they say 😂
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