Even if President Donald Trump doesn't get his agenda enacted, the market can still rise — but what investors should focus on will probably shift, expert David Waddell told CNBC on Monday.
"There isn't any reason for this market to tip into recession, so there's no reason for it to fall apart," the CEO of Waddell & Associates said in an interview with "Closing Bell."
Investors eager about Trump's promises of tax reform, deregulation and infrastructure spending helped push the market higher after the election, although equities have recently traded in a narrow range.
On Monday, stocks closed down, but well off their lows of the day.
"We really need the tax reform if we really want to do anything about unlocking more earnings and unlocking more economic growth," he noted.
If nothing happens, Waddell sees more of a shift to emerging markets, which would benefit from a neutral to weak dollar and the disparity in stock valuations.
He also thinks things like FANG stocks, technology, large-cap growth stocks, and utilities and high-dividend payers are also poised to do well in that environment.
That said, he's still invested as if the Trump agenda is happening, and that means value, small cap and financials.