Stocks are staging a comeback after the Dow Jones Industrial Average (^DJI) closed at a fresh record. Kristy Akullian, BlackRock Head of iShares Investment Strategy, Americas, joins Market Domination Overtime to discuss the market movement and its outlook.

"I think that the big picture of what we're seeing right now is that the US economy is stronger than we expected... We are constructive on risk assets. We are still constructive on US equities," Akullian tells Yahoo Finance.

She encourages investors to get ahead of some of the market rotation during this time, as she expects the broadening out of the equity market to continue next year. She also advises "staying invested during volatility," especially with the 2024 election just less than a month away.

Akullian adds, "It's not necessarily just going to be last year's and the first half of this year's winners that are going to win going forward. We see more opportunity outside of kind of the mega-cap names and maybe out of the technology and the growth sphere as well." She continues, "We've been talking about this as a moment to rotate out of mega caps and into large caps, not a moment to move from large caps into small caps."

She highlights large-cap value names like BLCV (BLCV) as good investment opportunities, especially as investors are overweight on growth stocks. She is cautious about the durability of the small-cap rally, noting that even as the Federal Reserve cuts interest rates, they still remain relatively high. She also points to slowing economic growth as a cause for concern when it comes to small caps.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Melanie Riehl