×

This summer is going to be ugly: Financial planner

Investors need to brace themselves in the coming months because things are going to get rocky for the stock market, financial planner Rene Nourse said Friday

"This summer is going to be ugly," the CEO and founder of Urban Wealth Management said in an interview with CNBC's "Closing Bell."

"I've never been in the corner of 'sell in May and go away' but I've had to change my tune this year."

While stocks rallied Friday, the major averages took a hit this week amid renewed concerns about a Federal Reserve rate hike sooner rather than later. The Dow Jones industrial average posted its first four-week losing streak since 2014.

Minutes from the Fed's April meeting show it will likely raise rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment.

Jack Bouroudjian, co-founder and director of UCX, told "Closing Bell" the Street doesn't think the central bank will move and it certainly hasn't priced in two or three rate hikes.

In fact, when the markets and gold moved lower, the dollar strengthened and all yields along the Treasury curve went up on the news of the Fed minutes, it was a warning signal that the market is not prepared, said Bouroudjian, also a CNBC contributor.

"We are preparing, unfortunately, for a shock," he said.

"This market is not ready. We could see a move lower in stocks and it could be a vicious move."

Keith Bliss, senior vice president at Cuttone & Co., is also bracing for a rough summer.

"Equity markets hate two things: decelerating earnings inside of their issuers and a rising interest rate environment. We're getting both right now so I'd be very cautious as we step to the summer," he told "Closing Bell."

He thinks there will better indication in July when second-quarter earnings are released. If they are weak and the Fed did hike rates in June, "that's a recipe for a very bad market through July," said Bliss.

For Bouroudjian, the repricing of assets is absolutely necessary.

"Once that happens ... you are going to find some great bargains in equities and over the course of the next few years, you're going to want to make sure that you bought this dip," he said.

Nourse agrees. She wants to use the summer slump to buy some of the "great disruptors." She specifically will look at some of the highfliers in the tech space, some consumer discretionary stocks that have been beaten up and financials.

— CNBC's Evelyn Cheng and Reuters contributed to this report.