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Prepare for global volatility ahead, 'you can't go broke taking a profit,' expert says

  • There's going to be volatility ahead for global economies as central banks begin to scale back their easing, expert Jack Bouroudjian told CNBC.
  • With the market up 20 percent, you can't go broke taking a profit, he said.
  • Trader Keith Bliss doesn't see the Federal Reserve as a headwind for the stock market right now.

There's going to be volatility ahead for global economies as central banks begin to scale back their easing, expert Jack Bouroudjian told CNBC on Friday.

"They're taking the syringe away. We've been pumping the patient with steroid injections now for years. When you start to take the medicine away what happens is that patient goes through withdrawals," the chief economist at UCX and a CNBC contributor said in an interview with "Closing Bell."

His comments followed those by Ray Dalio, founder and chief investment officer of the world's biggest hedge fund, Bridgewater Associates. In a commentary posted to LinkedIn on Thursday, Dalio said central bankers have "clearly and understandably" signaled that the end of the era of monetary easing is coming.

"Recognizing that, our responsibility now is to keep dancing but closer to the exit and with a sharp eye on the tea leaves," Dalio wrote.

Bouroudjian pointed out that one-third of sovereign debt is controlled by the central banks.

"This Fed is now draining the system. The central banks around the world are ready to drain and if that's taking place, then we have to be prepared for it," he said. "This market has gone up 20 percent. You can't go broke taking a profit. It's probably a good time to start monetizing some of those gains into this rally."

Trader Keith Bliss, senior vice president at Cuttone & Co., doesn't see the Federal Reserve's actions as a headwind for the stock market right now.

"They have raised interest rates three times since December and financial conditions have done nothing but ease," he told "Closing Bell."

He expects another rate hike in December and believes "the equity market will take it."

The Fed has also outlined a plan to start reducing its $4.5 trillion balance sheet, although it hasn't given a timetable on when it would begin.

— CNBC's Liz Moyer contributed to this report.