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Power Play: Is volatility here to stay?

Traders wear caps reading "DOW 18,000" as they work on the floor of the New York Stock Exchange, Dec. 23, 2014.
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Traders wear caps reading "DOW 18,000" as they work on the floor of the New York Stock Exchange, Dec. 23, 2014.

It's been non-stop up, down, up, down all week. The Dow and S&P 500 briefly rose to positive territory before retreating back into the red.

We're inching towards the highs of the day but the stocks are not out of the woods yet, said Scott Clemons, managing director and chief investment strategist at Brown Brothers Harriman.

"Market volatility is here to stay. The combination of waning earnings growth, lofty profit margins and full valuations imply that the market will react and even overreact to short term developments," he told CNBC's "Power Lunch."

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In addition to domestic concerns, volatility is rising due to more macro factors, said Joe Tanious, principal investment strategist at Bessemer Trust.

"Geopolitical risks have picked up along with inflation expectations economic data more broadly has been mixed. Coupled with a Fed preparing for liftoff sometime this year—something we haven't seen in a very long time—– volatility is rising as markets digest what this means for the overall macro environment," Tanious told "Power Lunch."

US Economic data has been somewhat mixed over the past few weeks, Tanious said. While it does appear the economy has lost some momentum (likely due to a harsh winter and a strengthening dollar), Tanious said he continues to believe corporate profits will beat expectations in the coming year. The labor market is still on a solid footing and manufacturing surveys are still in expansionary territory.

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Volatility is not bad for active, value-driven investors, as it creates opportunities to sell into strength and buy into weakness, Clemons said.

"Right now we're seeing opportunities emerge in the energy sector, as stocks have sold off indiscriminately due to the collapse in oil prices since last summer," Clemons said. "Going forward, it's all about the earnings. The market should be able to rise in line with earnings in 2015, but we're not expecting any multiple expansion."