U.S. stock markets are recovering from initial Brexit shocks, nearing pre-vote levels this week. But keep an eye on central banks moves for signs of where markets will go, says Oppenheimer Funds Chief Investment Officer Krishna Memani.
"What the markets are reacting to more than anything else is expectation that the central banks are going to be providing a high level of policy support," Memani told CNBC's "Squawk on the Street" Thursday.
Central banks have reacted to the possibility of lower global growth post-Brexit with more easing. The Bank of England for example, announced more stimulus following the U.K.'s vote to leave the EU. These programs will help keep markets liquid, Memani said, but haven't historically been a silver bullet.
"Central banks have been successful in supporting asset classes but perhaps not getting growth going to the level they want it to go," Memani said.
Global central banks are using the same strategies adopted in the years following the financial crisis to boost growth. As a result, Memani said investors have little choice when it comes to how to play the markets, other than "riding it out" the low-rate environment.
"That's what's been working for the last seven years and that's how it'll work for the next few, he said. "I think that's the choice you have to make from a valuation standpoint: Which is the most attractive part of different assets?"
Memami recommended moving towards credit instead of stocks, since "equity valuations may be somewhat high."
Investors have turned to U.S. sovereign debt as a safe haven in the aftermath of a Brexit, sending yields to record lows. The yield on the 10-year Treasury note hit 1.3868 percent. Thirty-year bond yields also hit a fresh low of 2.098 percent, before trading higher at 2.16 percent Wednesday. Yields move inversely with bond prices.