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Brace yourself for more volatility: Trader

Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial founder and CEO Jeff Kilburg told CNBC on Monday.

He believes there will be continued movements in the CBOE volatility index (VIX) up and down 1 percent.

"This should be a little bit of a slap in the face to the retail investors to say look at your portfolio, where are you susceptible and get ready for continued volatility," Kilburg said in an interview with "Closing Bell."

He likened it to the euro's recent dramatic volatility after a slow, steady step up last year.

"The same thing is going to be coming to the U.S. equity market. This volatility can't be contained in one asset class—from oil to euro currency. It's going to spill into every asset class," Kilburg warned.

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Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

On top of that, corporate buybacks should be scaring investors, he added. Last week, $80 billion in stock buybacks where announced, the largest in history.

"When you see folks buying back their own stocks, they can't put money anywhere to work," Kilburg said.

"There's a lot of confusion in the market. I think that's going to continue to twist and turn the market," he added. "These corporations are just as confused as the Fed is."

After U.S. stocks mostly sold off last week, they closed more than 1 percent higher Monday. Investors cheered the pause in the dollar's rally and weakness in oil prices ahead of the Federal Reserve's two-day meeting, which ends Wednesday.

Read MoreDow adds triple digits amid dollar, oil slide; transports up 1.5%

Investors are watching to see if the central bank will remove the word "patient" when referring to when it will begin to raise interest rates.

Bruno Del Ama, CEO of Global X Funds, told "Closing Bell" investors should use the volatility to rebalance portfolios.

"We think it is a good time to go from large caps in the U.S. to small caps," he said. "[It is] also a good opportunity to start allocating away from the U.S. markets."

However, while there is a lot of opportunity in international markets, Del Ama said investors should be selective.

—CNBC's Evelyn Cheng contributed to this report.

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