Crossmark Global Investments chief market strategist Victoria Fernandez sits down with Brad Smith and Seana Smith to discuss her expectations for a “bumpy landing” for the US economy and how investors can position their portfolios to weather the anticipated volatility.

“Everyone is anticipating we're going to have this soft landing. I think it's priced into the market. It's why we're seeing these high valuations on equities (^DJI, ^IXIC, ^GSPC), and we'll see if earnings support that or not. But really, when you look at the economy, there's so many conflicting elements that you have,” Fernandez tells Yahoo Finance.

She explains that whether investors are "looking at spending and you've got high-income consumers versus low and middle-income consumers; you look at earnings [in the] S&P 500 are doing okay; you look at small caps, they're not. And only about half of them are actually showing a profit at all."

Fernandez even points to the latest employment data: "You look at the last payrolls report which I don't want to take away from it being a great number. But a lot of those jobs were all from the non-cyclical element." She posits that due to all of these "conflicting elements, we think we will get a bumpy landing. We will have a slowdown..."

“With this volatility, we continue to want to be in the market because it is back to a momentum-driven market. You don't want to stand in the way of that. So be invested. But you've got to be a little bit guarded. And we do like those elements of the market that are showing new leadership,” Fernandez says, calling out sectors like industrials and financials.

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This post was written by Naomi Buchanan.