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Power Play: Global market risks

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

The Nasdaq is hitting new intraday highs again and the S&P is on track to post its biggest weekly gain in four months, but we're not out of the woods yet.

Katie Nixon, chief investment officer at Northern Trust Wealth Management, tells CNBC's "Power Lunch" on Friday investors have to consider the global risks.

Her firm recently adjusted their asset allocation, making a one percent cut in exposure to emerging market equities and also in natural resources.

Read MoreEurope closes flat as Greece gets short-term aid

"We expect growth over the next 12 months in China, Brazil and emerging markets more broadly, will fall short of consensus expectations for those regions. Additionally, emerging market equities and natural resources will be vulnerable as investors seek protection from continued strength in the U.S. dollar," Nixon said.

Jeff Kleintop, chief global investment strategist at Charles Schwab, believes economic and financial contagion in Europe has been avoided, but we still have to watch for political contagion.

"The left-wing, anti-austerity, and anti-establishment Podemos party in Spain has been rising in the polls again as the drama surrounding Greece rose to its recent peak. If Podemos were to win out in Spain's national election later this year the risk of European contagion would be reignited despite the near-term resolution in Greece," Kleintop said.