US Markets

One strategist warns against a massive strengthening of the US dollar

Moore: US valuations and sentiment making us more neutral

A huge increase in the value of the U.S. dollar this year would pose a risk to the market and create a roadblock for investment abroad, BlackRock chief equity strategist Kate Moore told CNBC on Friday.

Moore said she expects a push and pull on the U.S. currency in the new year, and she called for a gradual appreciation of the dollar. But she was anxious about what would happen if the dollar were to experience a massive appreciation.

"It's not just a one-way bet at this point. I think if we had a huge appreciation in the dollar in 2017, it would make me nervous. It's bad for large caps and also bad for small and mid-caps. I think it would be a real challenge for foreign investment," Moore said on "Fast Money Halftime Report."

The dollar gained broadly against major currencies on Friday after the U.S. nonfarm payrolls report showed a slowing in hiring in December but an increase in wages. The currency has surged to record levels since the Nov. 8 election victory of Donald Trump.

Moore also said BlackRock is positive on the macro front and fundamentals, and neutral on valuations and sentiment. She also expects more favorable earnings numbers from businesses.

"The valuations, while not too expensive, are at the upper end of the range — especially relative to some other regions," Moore said.

Moore said because business confidence is positive, she expects higher earnings.