The government faces a potential shutdown if funding agreements aren't reached by Saturday at midnight. Crossmark Global Investments chief market strategist Victoria Fernandez joins Morning Brief to analyze the market decline and its broader implications.

"I really think this is not as much about a government shutdown as it is the market kind of recalibrating their thoughts about how easy it's going to be for their new administration coming in to get their policies put through," Fernandez explains. She notes that recent market "excitement" has been driven by hopes for deregulation, reduced deficit spending, and tax cuts, but "now we're seeing already ... that's not going to be as easy as we thought."

Regarding investment strategies, Fernandez observes that investors face "a real push and pull" as they weigh fiscal policy, Fed outlooks, and volatility.

"There's elements that look inflationary ... but then you have things that are disinflationary," she notes, adding that "it makes it hard to make a long-term outlook." As a result, she advocates for investors to remain "very diversified."

For specific sector recommendations, Fernandez highlights opportunities in financials, industrials, and fixed income.

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