Investment firm CIO riding Trump rally with 'healthy skepticism'

Investors can only ride the bull rally on hopes of pro-growth policies from Washington for so long, investment expert Richard Steinberg told CNBC on Thursday.

With stocks routinely seeing new highs despite a lack of details on new Trump administration policies, the president and chief investment officer of Steinberg Global Asset Management said the market will eventually need clarity to keep pushing higher.

"I'm not negative, but I'm just looking at this rally with a sense of healthy skepticism," Steinberg told "Squawk Box."

"Until we get some clarity that we are going to move a lot higher, I don't think it hurts to have some risk management controls."

Steinberg said his firm has a hedge in place that allows clients to safely capture about 70 percent of the market.

"As this market ripped, would I have preferred to have no cash and no hedge in place? Absolutely," Steinberg said. "But ... risk can happen quickly on the way up, and it can happen quickly on the way down."

The investment expert admitted he was playing it safer than others on behalf of his clients, who mainly invest for their families or endowments and may need steadier cash flow.

"I don't think the market is going to have a huge crash or anything like that. I just think we need a big breather until we get clarity from Washington on policy," he said.

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