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Power Play: Biggest risk to global market outlook

Federal Reserve Board Chair Janet Yellen
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Federal Reserve Board Chair Janet Yellen

Stocks are higher on the first trading day in May and Krishna Memani, chief investment officer at Oppenheim Funds, tells CNBC's "Power Lunch" on Monday he's optimistic about global equities in both the short and long-terms.

"Modest growth in what may potentially be the longest business and credit cycles ever, low interest rates, low inflation, and ongoing global central bank monetary policy support are going to be the primary drivers of global equities' positive long-term performance," Memani said.

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But Memani warns there is a risk to his near-term outlook.

"If the Fed revives its hawkish rhetoric, the rosy outlook for equities may change quickly. The first evidence of that will not be in U.S. rates, which have been selling off despite equities doing well. Instead, it will show up in renewed strengthening of the dollar," Memani said.

For now, Memani expects the Fed to hold off on raising interest rates for the foreseeable future, including at its June meeting.

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