A big shuffle has happened in the stock market and "all the Trump trades are coming off," according to Stephen Guilfoyle, founder and president of Sarge986 and a daily contributor and columnist at TheStreet.com.
"It's real easy right now to justify taking a profit; I am doing it myself," Guilfoyle said on CNBC's "Closing Bell" on Wednesday. "It's a lot harder to justify putting new capital to work in some of the areas you have done well in over the last four, five months."
Guilfoyle said investors are protecting themselves against uncertainty with trump policies by investing in things like gold, the U.S. 10-year bond, and utilities, because "it's where traders [and] investors go when they get a little bit nervous."
Financial and industrial stocks are among the areas that were stuffed with cash following the election of President Donald Trump on the hopes of tax reform, health-care reform, and deregulation.
"If earnings don't help us fill out that that double XL shirt, well we are going to have to take some money off the table," Guilfoyle said. "I don't think any trader in the game doesn't see that already"