Markets tend to price in presidential candidates by September in an election year, but a divided GOP could create volatility, according to Jason Trennert, chief investment strategist at Strategas Research Partners.
"As a Republican, I'm more worried about a fractured Republican Party and [its] impact on the markets than I am about who" the candidate is, he told "Squawk Box" on Friday.
Whether Donald Trump, Sen. Ted Cruz, Gov. John Kasich or someone else gets the nomination, the market will create winners or losers, Trennert said. Once the field is narrowed to the Democratic and Republican contenders, the market has historically been able to suss out who will win by September, he said.
But if a third party emerges, investors will find themselves in a different world, particularly if the schism persists for a long time as the GOP mends its wounds, he said.