US markets are facing pressure with the Dow (^DJI), S&P 500 (^GSPC), and Nasdaq (^IXIC) taking a dip following persistent inflation and a 2.4% year-over-year increase in producer prices.

Northwestern Mutual Wealth Management Company CIO ​​Brent Schutte and WisdomTree head of fixed income strategy Kevin Flanagan join Catalyst Anchors Seana Smith and Madison Mills to discuss how market uncertainty should shape investment strategy moving forward.

This is a point in the economic cycle where “investors are tempted to concentrate in one particular asset class,” Schutte explains. His advice is to stay diversified and “understand that while large-cap stocks are expensive, there are opportunities in small and mid-cap stocks."

Flanagan also raised concerns about rising Treasury yields for the broader economic outlook.

“Could the bond market send a signal, a shot across the bow that, ‘hey, you guys need to calm down a little bit here?’” Flanagan said. “That’s what I’d be watching for.”

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Cindy Mizaku.