Take Profits Now, Consolidation Is Upon Us

It is time to take some profits if one has built their portfolio up, advised Odd Haavik, managing director & CEO of Charles Monat Associates, as the recent market rally is not founded on fundamentals.

"It has been a lovely rally," Haavik said on CNBC Asia Pacific's Protect Your Wealth. "I think right now is a beautiful time to take some money off the table and to really try to protect it rather than to go for broke by expecting a super recovery back up to '07 highs."

Time to Take Some Money Off the Table
Time to Take Some Money Off the Table   

Haavik said investors need to take stock of the situation, as the rally is momentum-driven amid "irrational exuberance". He expects consolidation in equities to be the theme for the rest of the year.

"The S&P has pretty much gotten up to about a 50 percent retracement of the big drop from the highs back in '07. There is an awful lot of cheap or free money out there with the stimulus packages. I reckon we will see a pull back some where along these levels, if not, a renewed crash," he said.

"I think there's a good chance things have gone about as far as they are going in the short-term."

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Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."