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Power Play: Why volatility is not going away

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.

Stocks may be staging a rally in October, but any moves higher won't be a smooth one. USAA Investments Head of Global Multi-Assets Wasif Latif tells CNBC's "Power Lunch" on Thursday the volatility trend that started earlier this year will likely remain as we close out 2015.

"Global risk continues to be prevalent including uncertainty regarding the Fed's timing of future interest-rate hikes, emerging market debt burdens and rising deflationary pressures," Latif said.

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He doesn't see a recession, but believes the economy won't be picking up significantly. As a result, interest rates will continue to remain low.

"We are standing by view that interest rates will stay lower for longer, which is supported by a flattening in the Fed's expected path for rate hikes in 2016 and 2017," Latif said.

The Dow, S&P 500 and Nasdaq are all higher during trading.