Bridgewater Associates co-chief investment officer Karen Karniol-Tambour joined Yahoo Finance Senior Reporter Jennifer Schonberger at Yahoo Finance Invest to analyze market dynamics ahead of President-elect Trump's White House return.

"I think the stock market is a good thing to hold right now," Karniol-Tambour told Yahoo Finance. However, she notes that some market segments currently have stretched valuations and emphasizes the importance of portfolio diversification.

"I both think the stock market's attractive and on the margin, the next trade people need to make is usually to something else for more diversification," she explains.

To see every interview from Yahoo Finance Invest, click here. Watch the full interview with Karen Karniol-Tambour here.

This post was written by Angel Smith