The rotation out of tech stocks on Wednesday isn't necessarily the start of a trend yet, but investors need to be cautious, two experts warned.
The Nasdaq dropped 1.3 percent on Wednesday, while the Dow Jones industrial average closed at an all-time high. Shares of Facebook, Netflix and Alphabet all fell. Financials, on the other hand, rallied.
"We have had really crowded trades with the fast money all piling into these high-PE, high-tech names and shorting the value stocks," said Charlie Bobrinskoy, vice chair and head of investment group at Ariel Investments.
"Momentum works and works and works until it doesn't. And when it doesn't, it gets ugly," he added.
Bobrinskoy told CNBC's "Closing Bell" that value stocks did well on Wednesday because they will benefit more from tax cuts. And he now sees the probability of a tax deal getting done at 75 percent or 80 percent.
On Tuesday, the Senate Budget Committee approved its tax plan, sending it to the chamber for a full vote.