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Trump's 'first date' with the markets went well, now it's time for the second, says Wells Fargo's John Silvia

President-elect Donald Trump will have to start developing his policies once he steps into office to keep the markets rallying at postelection levels, Wells Fargo's chief economist, John Silvia, told CNBC on Friday.

"Since the election, I think Trump has had his first date with the American public and the markets. Now the first date's over, everybody's happy. Now we're on to the second date," Silvia told "Squawk on the Street."

"And the second date really starts to tell what [you can] actually produce in terms of tax cuts and infrastructure spending," he said.

Silvia said some of the biggest hindrances that may arise include a strong dollar, which could hurt U.S. exporters and impact the trade deficit, which some on Trump's team have vowed to reduce.

That could put a drag on economic growth despite good consumer and business sentiment, he said.

Populism could also tarnish some of the benefits on the corporate side, Silvia said.

"Mergers and acquisitions, infrastructure spending, tax cuts, they're all going to face this populist framework for making a limit, perhaps, on how extensive[ly] any of these changes" can be implemented, the economist said.

Appearing in the same interview, JPMorgan strategist Samantha Azzarello said the year-end rally is effectively giving Trump the benefit of the doubt as investors look ahead to the new year, despite the potential risks.

"I think the market's pricing in the best-case scenario with respect to a Trump presidency. And geopolitical risk is back on the table, we know this, and I think the market has great expectations for 2017 and I'm not sure if they're going to come through," she said.

Azzarello said if investors are banking on the United States remaining strong as Trump steps into office and possibly seeing inflation, they would be well-served to go after sectors and areas in the market that have done well over the course of the postelection rally.

"I think you have to come back to the fact that the U.S. expansion is going to continue, and if you think it's going to continue, you have a bias to cyclicals over defensives. We have a bias to equity over fixed income, if we are in this reflation scenario," the strategist said.

"I would just add that the Trump trade is really just a hyperactive, accelerated version of the reflation trade ... we're just getting the extra boost" from prospects for business deregulation, Azzarello said.

New investment strategies for 2017 could also include adding international exposure, she said.

"We actually have a bias to emerging markets," Azzarello said. "We think they're coming out of the bottom of their recessions and their earnings are starting to recover. Now, there's headwinds, obviously, from the dollar and if the Fed starts to move quicker, but the domestic story in EM is really there."