Investors will want to exit some of their high-yield bond positions despite the market's recent rally, Peter Tchir, managing director at Brean Capital, said Monday.
"You're definitely seeing slowdowns in parts of the economy, some good things happening, so I'd be taking advantage of this and selling some high yield into the rally," Tchir told CNBC's "Squawk on the Street." "We've liked them for the past couple of months, it's been a trade that's worked for us very well."
"I'd be ... prepared for a little bit of a pullback."
The high-yield bond market has staged a rally that has mirrored the 's.
Since Feb 11., the SPDR Barclays High Yield Bond ETF (JNK), has jumped 8.4 percent, while the benchmark U.S. stock index has gained 13 percent.
"I'm much more comfortable, in this lack of liquidity, to sell into strength so that we can buy on weakness," Tchir said.
If the U.S. were to enter a recession, it would be a rather shallow one, Tchir said.
"We're seeing this globally coordinated policy from central banks. Whether it can get us out of recession and into liftoff, I highly doubt that, but I think they will act much more aggressively," he said. "You see it already. Even in the [European Central Bank], they're acting to help out the banks sooner than we would have during the prior recession."
Tchir made his remarks two days after Republican front-runner Donald Trump said the U.S. is on course for a "very massive recession," adding that "we're sitting on an economic bubble. A financial bubble."