Investors simply need to adjust to the current environment rather than ditch their equity portfolios amid geopolitical concerns and fears of a market correction, a U.S. asset manager told CNBC Wednesday.
With the S&P 500 up nearly 10 percent year-to-date at a time when geopolitics is worrying investors, some money managers have begun considering a market correction. However, Carol Pepper, chief executive officer at Pepper International, believes that stocks have plenty of room to run.
"I think we are mid-way through the game, I don't think we are at the end of the game, and I'll tell you why, because we've had 10 years of a flat market and 10 years is a long time … You could say we have 5, 6 years to run," Pepper told CNBC Wednesday morning.
She projects a small sell-off followed by a quick snapback. "People have been talking about fatigue in the rally since the rally started," she said. "I think stay the course through the end of the year. Yes, we will have a few more dips of course, this North Korea thing is very disturbing, but assuming we don't go to war, somebody doesn't go to war with North Korea, I believe by the end of the year, will be at least this level if not higher," Pepper explained.