'If You're in the Market, Stay Where You're At,' Schwab's Fredrick Tells CNBC
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NEW YORK (TheStreet) --Randy Fredrick, managing director of trading and derivatives at Charles Schwab, joined CNBC''s Bill Griffeth from the floor of the NYSE Wednesday before the closing bell, to give advice to investors in light of the market's recent trends.
"We've been telling our clients to maintain their allocation, in other words, if your already in the market this is not a time be selling out, but stay where you're at. While we have seen rebound since the Brexit, the markets will find themselves a limited by a number of things," Fredrick said.
Among those limitations Fredrick cited higher price earnings ratios, the Fed meetings schedule for the upcoming months, and the U.S. Presidential election. Noting that the markets may see a slight uptick, however the upside is becoming a little more limited.
When asked to comment whether he advises dividend plays, or cyclical plays, Fredricks said to look to the interest rates.
"As long as interest rates stay relatively low, and even get above this year in either September or December, you're still going to have a much more attractive yield coming from the dividend stocks," Fredrick explained.
Fredrick also added that markets could potentially see a slight dip, however also stated that they could also continue to outperform. That is, until interest rates become normalized again, however "probably may not happen until next time next year," he concluded.