The Federal Reserve's 50-basis-point rate cut that came Wednesday is giving investors a perfect opportunity to look over their portfolios and re-assess their allocations. CFRA Research Chief Investment Strategist Sam Stovall joins Wealth! to discuss the opportunities and risks presented after the Fed initiated its cutting cycle. Stovall points out that traditionally the market does not react too much for the first month after the initial interest rate cut.

Stovall also says that September and October tend to be the worst months for markets during election years but "traditionally, we get that end of year pop after the uncertainty around the election itself has run its course."

Stovall reminds investors that the market has been anticipating this latest rate cut for some time, so Wall Street has already been piling into large-cap stocks, tech in particular. He says there are opportunities now to get discounts on small and mid cap stocks.

Watch the video above to hear Stovall explain that despite Thursday's record close for the S&P 500, there is still room for the index to go higher.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Jeremy Moses