Risky assets have risen too much, too soon and too fast, but investors won't get an obvious sign that a correction is starting and will have to gauge fundamentals, Yogi Dewan, founder of Hassium Asset Management, said Thursday.
"Towards year-end, people look at valuations and they think it's too high. We've rallied some 60 percent from the lows and (a correction) is about to happen," Dewan said.
"If you look at valuations in the equity markets, they are way too high," he told CNBC. "On a price–to-trailing-earnings basis, we're up in the 20- to 25 (percent) region. You really need to be down around the 15 percent level."
"I don't think you should be looking for a catalyst (to kick-start a reality-driven correction). I think you should be focusing on fundamental analysis and investing in a really sensitive, cautious manner," he said.