Investors' enthusiasm for President Donald Trump's promises of tax cuts, deregulation and fiscal stimulus has left the market in a "fragile spot," expert Ernesto Ramos warned Tuesday.
That's because they aren't necessarily taking into account the overall picture, he told CNBC.
"One hundred percent of the potential positives that have been announced … by the Trump administration have been priced in by the markets and as far as we can tell very little of the potential negatives relating to trade wars ... immigration and perhaps even geopolitical risks have been priced in," the head of equities at BMO Global Asset Management said in an interview with CNBC's "Power Lunch."
Stocks soared after Trump's election as investors cheered his pro-growth message. The major indexes have recently held around all-time highs as investors wait for more details on the administration's policies.
While he sees near-term risks in the market, Ramos said he still wants to own equities. He's just not going with the consensus of investing in pro-growth, cyclical stocks.
"We want to be exposed to equities because we see the potential positives coming through. However we want to do it a defensive low-risk way," he said. "We are looking actively for underpriced, low-risk stocks to put our money, with stable operating earnings models."
—CNBC's Jennet Chin and Fred Imbert contributed to this report.
Disclosures: Ramos owns Verizon, American Express and CVS in the BMO Low Volatility Equity Fund.