It's been a volatile week for the major US indexes (^DJI,^GSPC, ^IXIC) after July's jobs report stoked investors' recession fears. Pointwealth Capital Management founder and CEO Sandra Cho joins Wealth! to break down how you can best manage your portfolio and navigate the market in periods of volatility.

"We've been used to very low volatility. And all of a sudden, when those the unemployment numbers came out and jumped from 4.1 to 4.3%, the markets definitely reacted. That said, we haven't even really had a correction. Market is down about 6.5% from the high... One of the best things to just know in your heart is that there is going to be volatility in the markets and to accept it, and then just lean on that diversification. So it's a good time to rebalance," Cho explains.

She points out that most investors are slightly overweight stocks since they had an explosive run-up this year.

She expects the market rotation away from the Magnificent Seven to continue at least over the next few months as the Russell 2000 small-cap index (^RUT) picks up steam. She also expects the utilities (XLU), real estate (XLRE), and healthcare sectors (XLV) to outperform after a year of weakness.

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

This post was written by Melanie Riehl