Stocks (^DJI, ^IXIC, ^GSPC) are trading mixed ahead of the Consumer Price Index (CPI) data release scheduled for Thursday. This report is expected to provide investors with insights into potential Federal Reserve policy decisions. Winthrop Capital Management Chief Investment Officer Adam Coons joins Wealth! to discuss how investors should position themselves amid this market uncertainty.

Coons notes that current inflation data is "making it difficult" for investors to anticipate the Federal Reserve's next move. While the recent jobs report exceeded expectations, he points out that recent revisions have trended downward, creating "a tough place" for the Fed. Although Coons supported the Fed's initial 50-basis-point cut, he believes that moving forward, the central bank will "play it safe" and implement just one 25-basis-point cut for the remainder of the year.

Regarding investment strategy in the current climate, Coons advises investors to adopt a defensive stance. He cites ongoing uncertainties beyond Fed policy, including the upcoming US election and geopolitical tensions, with Middle Eastern conflicts posing the "biggest black swan potential."

"I think taking a more defensive tilt heading into year-end is a good bet," Coons tells Yahoo Finance. He recommends that individuals "go into a lower volatility, higher quality" position currently, rather than focusing on equities.

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This post was written by Angel Smith