Here are 3 ways to re-engineer portfolios as 'the old era of investing' returns, says JPMorgan Asset Management strategist

• Investors should prepare their portfolios for "the end of free money," JPMorgan's Gabriela Santos says.
• She told CNBC on Thursday that the Fed is unlikely to downshift to zero-percent interest rates again.

Investors should make three moves to adapt their portfolios to "the end of free money," according to JPMorgan Asset Management strategist Gabriela Santos.

She told CNBC on Thursday that the central bank will likely not return to zero-percent interest rates and warned that markets are returning to the "old era of investing."

Santos suggested investors should shift focus toward earnings and ensure that investments are based on how profitable a company or its path to profits over the long term.

She added that valuations are also key, with a keen focus on what price investors are ultimately paying for profitability.

Finally, Santos said, investors need to keep an eye on risk and reward with investments. "Are we being paid to take risk?"

She added that investors will need time to be "re-conditioned" to new market conditions.

"It's no longer the reality where it's buy on any dip. It's no longer the reality where we can just focus on a handful of companies or styles or sectors as the opportunity," Santos said. "It's really much more about alpha. It's much more about active management, not just beta."

Santos also separately listed her investor resolutions for 2023, which include shifting back to bonds, stepping up investments in international companies and emerging markets, and digging through the "wreckage" of growth stocks to find underlying value.