Market on Prozac, investors should brace for volatility ahead: Expert

  • The market has become a bit complacent due to heightened political uncertainty, Larry Glazer told CNBC.
  • While the market is priced for perfection, he would be selective and brace for volatility ahead.
  • Trader Kenny Polcari agrees political uncertainty will be a catalyst for the market to "back up."

The market has become a bit complacent in the face of heightened political uncertainty surrounding President Donald Trump's agenda, investment expert Larry Glazer told CNBC on Tuesday.

"This market is really on Prozac," the portfolio manager at Mayflower Advisors said in an interview with "Closing Bell."

U.S. equities surged on Tuesday, with the Nasdaq rising over 6,000 for the first time and the Dow industrial average closing about 230 points higher.

For those who believe the market is priced for perfection, that "everything is going to be great" and "we're going to get all of the policies that we need to drive earnings materially higher," they should buy the market wholesale, Glazer said.

However, he's not in that camp.

"If, like me, you believe that there is a heightened level of political uncertainty that brings into question what earnings might really look like, then you want to be a lot more selective and brace yourself for volatility," Glazer warned.

While investors have been chasing large-cap growth, he thinks there is an opportunity to invest in energy stocks, which have been left behind.

Trader Kenny Polcari, director at O'Neil Securities, also doesn't think the market is going to get the "complete perfection" it is pricing in.

"It's going to be the political uncertainty that is going to be the catalyst to cause the market to back up," Polcari told "Closing Bell."

However, "I'm not by any sense talking about the market crashing," he said.

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