With investors expecting another tough quarter for earnings, investors are faced with a question: hold cash and wait to see how corporate reports pan out or stay fully invested?
Corporate reports are expected to show a 6.9 percent decline in S&P 500 earnings per share in the first quarter of this year, according to Thomson Reuters I/B/E/S data. EPS for S&P 500-listed companies fell 2.9 percent in the final quarter of 2015.
Richard Steinberg said Monday his Steinberg Global Asset management is keeping "higher-than-normal cash levels."
Steinberg noted that earnings estimates have been falling while stock prices have been rising in the last six weeks. He said that gap needs to close.
"With a 2,100 target on the S&P, we need a little bit of a break and a rest before we can start to move back up," he told CNBC's "Squawk Box."
The market typically begins to focus on the next year's earnings around June, Steinberg said. But he cautioned there is still three months to go before investors start looking to 2017, when companies are set to face easier comparisons with the previous year.