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As market rallies, retail investors shouldn't make drastic moves, financial advisor says

Safe to move from bonds to stocks?

While retail investors may want to sell their soaring stocks to buy bonds, or sell their bonds to buy into the market rally, they shouldn't make any drastic moves, one financial advisor warned Wednesday.

"I still think it's very important that people stick to their asset allocation that is equal to what their risk tolerance is and their time in their life, and to not make drastic changes because of a rally like this," said Cathy Curtis, founder of Curtis Financial Planning and a member of the CNBC Digital Financial Advisor Council.

The market has been hitting new all-time highs since President-elect Donald Trump's victory Nov. 8, with the Dow Jones industrial average now hovering under 20,000.

A pedestrian passes the New York Stock Exchange.
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The bond market, meanwhile, has been selling off.

But Curtis said that bonds are still very important to a portfolio. Instead of changing their asset allocation, investors can adjust the type of bonds they have, like putting their money into shorter-term bonds that are not as risky as intermediate or long-term bonds, she told "Closing Bell."

"We don't know what's going to happen after the first of the year. So it's not to say that all bonds are going to crash after January 1," she said.

For those who may be nervous about the market highs, Peter Mallouk, president and chief investment officer of Creative Planning, noted that "an all-time high by itself is nothing to be scared about."

Mallouk, who is also a member of the CNBC Digital Financial Advisor Council, thinks investors should have enough bonds to meet their needs — and that is all, since returns are expected to be muted.

"Anything can happen in the stock market, a terrorism event, a war, a trade war. That's why an investor should have money in bonds, so that your short-term needs, your intermediate-term needs can be met from bonds," he told "Closing Bell."

Instead of looking at shifting from U.S. stocks into bonds, he suggests investors look at global stocks, which have been depressed for the last several years.

— CNBC's Laura Petti contributed to this report.