As one of the most volatile months for equities in recent memory comes to a close, investors need to understand that the days of double-digit returns on low volatility are over, strategist David Lebovitz said Monday.
"The first thing clients need to do is recognize that the environment we've been in over the past five years has not been normal," JPMorgan Asset Management's global market strategist said in a CNBC "Squawk on the Street" interview.
"Double-digit returns and single-digit volatility are not normal. So what we're doing is encouraging clients to look for single-digit returns on double-digit volatility ad a backdrop of diversification they can use to protect themselves against these wild swings," Lebovitz added.
The CBOE Volatility index (VIX), also known as the fear gauge for markets, has risen more than 120 percent in August amid growing global growth concerns.
VIX in August
Lebovitz also said, however, that investors should remain invested in the equities space.
"We're now trading at the long-term valuation for the S&P 500; stocks still look cheap relative to bonds, and we do think the returns coming from equity markets will be better than the majority of returns coming from debt markets," he said.
The recent rise in volatility has brought up another round of speculation about whether or not the Federal Reserve will raise rates.