Market volatility is the new normal and there are many ways to make money off it, said Christopher Harvey, head of equity strategy at Wells Fargo.
“Now you can start putting your money to work,” Harvey said Wednesday on CNBC’s “Fast Money.” “Now you have more ability to be tactical. You have more ability to trade around positions.”
Investors can also expand their portfolios and be more selective about where they choose to put their money, he said.
The market continued on a wild roller coaster ride today following the worst two-day decline since 2016. Stocks were up Wednesday more than 150 points before reversing into the negative, only to climb more than 72 points by the closing bell.
TheFederal Reserve raised interest rates three times last year. But Harvey called the Fed a “non-event” in 2017.
“They were sucking volatility and risk out of the marketplace,” Harvey said of the Fed.
Still, with more possible interest rate hikes on the horizon in 2018, “we’ll have more spikes in volatility,” Harvey said. “But we’re not going to go to this elevated period. It’s just going to normalize.”
