Monday’s Rally Won’t Last: Pro
Stocks may have staged a rally Monday, but investors should remain wary since there's no deal yet on the country's fiscal problems, Scott Freeze, president of Street One Financial, told CNBC's "Power Lunch."
"It's a rally based on the fact that 'oh we're going to get a fiscal cliff deal,'" he said. "We don't have a deal. It's just that no bad news has come out."
Freeze also warned that any deal may look like exactly what will happen if the country goes off the "fiscal cliff," when a combination of $600 billion in tax increases and spending cuts would kick in in January.
"So if you're not excited about that, how can you be excited about the market ," Freeze said.
Freeze expects volatility until Washington reaches a deal on the country's fiscal problems, and he suggests investors sell on up days to lock in profits.
The problems extend beyond the fiscal cliff in January as well, Freeze noted. There's the debt ceiling debate looming in February, and Europe is still trying to sort out its own debt crisis. (Read More: Are Dividend Stocks Dead?)
Freeze recommends looking to your high yields despite worries about dividend taxes.