It is really about buying and selling based on panic and fear, he added. "What we've had, really, in the last 12 months, is we've had a rally that may seem illogical given all the problems we have in the financial system."
Investors are now focusing on indicators showing that things are not going to be as bad as they thought, and that surmounts to positive sentiment, Yoshikami noted.
"There has been cutting of costs in corporate America, and certainly all around the world in terms of making companies more efficient, and that's what's 'rallied' the market."
"It's important to understand that the market and the economy are two separate things and often times, people have the perspective that the market and the economy should move together in a parallel manner, and they don't always. And that's what's happening right now."
Bearish on Financials
Yoshikami added that he continues to be fairly negative on the financial sector as he expects the real estate sector to unwind further, causing more problems on loans.
Add to that, the number of personal bankruptcies is still at significantly high levels, leading to a pretty negative outlook, he said.
"The banks are right now are very much in a transition period and we just have to see how they're going to manage through this. I know the Feds are looking at them very, very closely and making sure their capital requirements are fairly high, so we'll see how it plays out. I'm still, though, frankly, fairly negative on the financial sector. I just think there's still a lot of shoes to drop, still."