Kristina Hooper, chief global market strategist with Invesco, joined Cheddar News to discuss a new week in trading as stocks closed near session highs, as the S&P and Nasdaq traded at their highest since April last year.

<div class="block">Kristina Hooper, chief global market strategist with Invesco, joined Cheddar News to discuss a new week in trading as stocks closed near session highs, as the S&amp;P and Nasdaq traded at their highest since April last year.</div>

Closing Bell

Analyst Discusses What Lies Ahead as Markets Close at Near Session Highs

Joining me now is Christina Hooper, chief Global Market strategist at Inco Christina. Thank you so much for coming on the show. Decent day for stocks. Is it a good time for investors to maybe dip their toe back into this market if they have been on the sidelines? Well, I certainly think that investors should have a long term exposure to equities. Now, the stock market is up a lot. It's always very hard to time markets, but I do believe it's time to start adding to one's equity position. If they've been sitting on the sidelines in cash, you can dollar cost average in over the course of months and don't forget that it's just not a US stock market out there. There are international markets that look very attractive. Valuations are more attractive and and there's a lot of good things going on outside the US. So Christina, let's talk about some of the opportunities perhaps that you do see in the market, whether it's US or abroad or both as you think it is a good time for investors to start dollar cost averaging their way back into stocks. Well, for one thing, we have the debt ceiling behind us. And I think that's important because that created a significant amount of uncertainty. Number two, we're getting to the end of the fed rate hike cycle. Um I'm probably in the minority and thinking this, but I, I'm fairly certain the fed won't hike rates again, that this conditional pause will ultimately turn into no more rate hikes. But I could be wrong. There could be one or two more rate hikes, but we are very close to the end. And what we know is that typically in the one year and three year periods after the end of fed tightening, um that tends to be a time when stocks perform well. Um So that's one just, just a few arguments for getting into domestic stocks um internationally, for example, if we look at Asia, um there is still opportunity created by China's reopening. Uh And I think that's going to be a catalyst for some time to come in terms of increased economic growth, especially driving tourism to other Asian countries. So I think what all of Vegas Christina have said the October lows are behind us, obviously, you think it's a good time for investors to dip back in, in certain scenarios that we see here. But just to kind of keep it in perspective, are there risks that our viewers should know if they do put money to work in stock? Oh, absolutely. I think that the next few months are going to be bumpy because we don't know what the fed is going to do. The fed could very well do a full volker, uh, and get very aggressive and hike rates several more times. That could be really problematic. That could of course delay the time in which we could see a stock market rally. Um, so we have to recognize that we could also see that the accumulated aggressive rate hikes that have already occurred, um will have a very significant impact on the economy and send it into a significant recession. I don't think that's likely, but it could certainly happen and that could also uh put a damper on the stock market. Um So there are factors that could create volatility and in particular downside volatility in the near term is A I and technology names Christina, a place that you think does look attractive at these levels, amazing that the NASDAQ continues to outperform even though some people have said the valuations are starting to look pretty rich. So A I is, is a fascinating phenomenon and I think it has significant growth potential in so many different ways. However, we have to recognize and differentiate between the short term and the longer term. Um It has gotten frothy in the shorter term. So depending upon one's time horizon, it might make sense to start to dollar cost average in if one hasn't already. But recognizing that we could see some dips uh along the way, um before we see, uh, you know, before we realize capital appreciation potential over the longer term, think of it as somewhat similar to what we saw with the internet stock phenomenon in the early two thousands. Um, late nineties and early two thousands, there were some significant hiccups along the way. Although many who invested in those names in the late nineties, um, were very happy, um, uh, longer term. There, there certainly was what were some significant headwinds during the during the journey, obviously, rates we know have a direct impact on stocks. The market is pricing in a rate pause from the fed on Wednesday. But of course, we know European central bankers, they are still grappling with inflation and how they handle that same as the case really in other markets, developed markets around the world as well. So when it comes to specific international markets, Christina, are there any in particular that you think might be keen to outperform others? I do think the Japanese stock market which has already outperformed and and has a had a really nice rally has legs. Um We're seeing better than expected economic growth and of course, Japan is benefiting from a still very accommodative central bank. Uh So, so that rally has legs, in my opinion, also valuations still look attractive for Japanese stocks. All right, Christina Hooper, chief Global Market strategist at invest Christina. Thank you.