The recent rally in equities cannot be sustained as the markets are "really schizophrenic" right now, said Kirby Daley, senior strategist at Newedge Group on CNBC Monday.
"Long-term investing in equities, as people have been used to doing, I think is coming to an end for a while," he said.
Investors should take a step back, let the U.S. elections play out, and see how far growth will fall off going into 2011, Daley continued
"There is no way that risk-on is coming on forever. But it's going to be back and forth. It's a very difficult market to trade," he added.
Instead, Karsten Schroeder, CEO of hedge fund Amplitude Capital, advised investors to look at alternative investments amid a slow-growth environment.
"It's going to be a little more difficult to find interesting opportunities, but I guess you have to go strong on alternatives," he noted, highlighting the need for un-correlated return streams.
"Volatility is not really that high...(and) we see range-bound markets. I don't see any reason for a change in particular on the equities side because the major economies won't quickly recover, " Schroeder explained.
"Stronger alternatives, especially CTA (commodity trading advisor), macro, FX, commodity-type uncorrelated strategies...not the typical equity long-short (ones)...will be the strategies that will outperform going forward," Daley concluded.