‘Take those profits’: Strategist says extreme market moves are the horizon

‘Take those profits’: Strategist says extreme market moves are the horizon

Financial markets appear vulnerable to what could be an extreme move in either direction, according to Paul Gambles, co-founder of investment advisory firm MBMG Group. As a result, Gambles said investors should consider sitting on the sidelines and build up their cash positions significantly. His comments come as market participants remain cautious . These include fears of rising inflation, persistent concerns about the economic outlook amid the ongoing coronavirus pandemic, supply shortages and valuation concerns. Some investors are also wary of the possible implications of China's indebted property firm Evergrande, . "Our advice is just be a little bit cautious. We think that the market is very finely poised waiting for what potentially could be a very, very big move," Gambles told CNBC's "Squawk Box Europe" on Friday. "We've got no idea which direction that could be; I realize that doesn't sound helpful, but frankly there are just so many unanswered questions out there right now," he continued. "Until we start to get answers to those, our advice is actually unless you can really afford to take what could be a pretty big hit, and possibly even a permanent hit, then it is better to just sit on the sidelines."