John Buckingham is Chief Investment Officer with AFAM Capital. Buckingham is braced for additional volatility, which he says, "is a normal part of the investment process."
As we enter a two day FOMC meeting and get closer to the speculative September rate hike, Buckingham is somewhat focused on when we could see the fed "liftoff" and what it will mean for the markets.
"We continue to believe that the stronger economy that is likely needed to compel the Fed to finally hike interest rates will provide a nice tailwind for corporate profits." Buckingham told CNBC's Power Lunch.
"Further, while so many market pundits seem to be convinced otherwise, we like what the historical evidence shows in regard to what has happened to stock prices six months prior to and six months after the Fed has initiated a tightening sequence."
Buckingham goes on to say, "even if the Fed engages in a couple of rate hikes, we think that the extraordinarily low overall interest rate environment is likely to remain intact for a long while, with equity investments continuing to compare very favorably to fixed income offerings."