The S&P 500 hits a new intraday high on Monday and the Nasdaq tops 5,000 again. With the market recovering from post-Brexit vote losses, Scott Clemons, chief investment strategist at Brown Brothers Harriman Private Banking, tells CNBC's "Power Lunch" this is not the time to chase markets.
"Fundamental supports for the equity market remain weak. Corporate earnings have declined year over year for 6 consecutive quarters, the market is expensive at 21x earnings, and market leadership is precariously thin," Clemons said.
He likes holding some cash in this environment. "Cash plays an important role in a portfolio because of its option value. Let volatility be your friend by putting cash to work in market downturns," Clemons said.
He sees more volatility this year and opportunities to buy selectively in companies with strong balance sheets, healthy free cash flow and decent dividends.
The Dow, Nasdaq and S&P 500 are all higher during trading.