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Market higher in 2017, but uncertainties are on the horizon, strategist says

The market will continue its move up in 2017, but the recent rally has provided a good opportunity to take some profits, Mike Ryan, chief investment strategist at UBS, told CNBC on Wednesday.

The bank is anticipating that earnings revenue for stocks will grow 8 percent next year.

"We think 2017 will be a constructive year. However, there are still some uncertainties on the horizon. While we certainly will see a different policy prescription by the Trump administration, we still have to see what they'll be able to deliver on in terms of legislative solutions," Ryan said in an interview with "Power Lunch."

Specifically, he's watching to see what happens with President-elect Donald Trump's tax reform and infrastructure plans, as well as how much regulatory relief there will be. That will be balanced with whether there is an impulse toward increased protectionism and immigration pushback, he added.

Because of that uncertainty, Ryan said he took some risk off the table by trimming some small-cap stocks, which have had a big runup since the election.

However, he is still positive on financials, which he said will benefit from higher interest rates, better lending activity in an improved business environment and less regulation.

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