Santa Monica, CA - If you are confused about the reasons why stocks are back down after April’s “Liberation Day” rout, make sure the market has its reasons.

"I think there are two reasons (rally)[rally]," Nouwen Chief Investment Officer Saira Malik told Yahoo Finance at the Milken Academy Global Conference on Tuesday (video above). "First, when markets tend to fall rapidly, they actually recover quickly. So history does repeat. Second, I think 'liberation day' is the peak pain of tariffs, and since then we've seen a lot of negotiations and I think the market is starting to appreciate that."

Malik leads a business with more than $1 trillion in asset management. She has spent decades in the financial services industry at JPMorgan Asset Management in 1995.

Malik continued: "I will expect revenue season in the first quarter. We are looking for revenue growth of 6% for the quarter. We currently have about 12%. So it's a strong revenue season. Not a strong prospect season, but a strong revenue season."

As economists expect, if Trump starts biting in the second quarter, investors seem to be more inclined to earnings here and now than to make future earnings mistakes.

Read more: Latest news and latest news about Trump tariffs

In the past two weeks, first-quarter earnings reports from Meta (Meta), Alphabet (GOOGL) and Microsoft (MSFT) have brought technology heavy duty Nasdaq composites (^I tocie) to a 13.5% increase in the past month. Despite Apple's (AAPL) warning, Trump's tariffs will hit a cost base of $900 million.

On Monday, the S&P 500 snatched a nine-day winning streak. It marks the longest winning streak in stocks dating back to 2004. The Dow Jones Industrial Average (^DJI) also ended its nine-day winning streak, the best since 2023.

However, all three major indices were negative, with the Nasdaq dropping by 8.5%.

Malik said that despite the unknown policies of the Trump administration, now is not the time to hoard cash, as investors can get smart digital returns on fixed income and high-yield corporate bonds.

"As the Fed lowers interest rates, the cash gains will worsen. I think cash is obviously a great asset class and requires payments for the fees and emergencies. But you can enjoy cash in fixed income and stock spaces."