The stock market rally may be short-lived as financials may still have some skeletons in the closet, and commodities have not fizzled out yet, despite the recent falls in prices for oil and precious metals, Charles McKinnon, CIO of Thurleigh Investment Management told "Squawk Box Europe" Thursday.
Financials are 80 percent cheaper than they were at the beginning of 2008, but the sector should be approached with caution, according to McKinnon.
"Financials, as a bet, it's possible, but not as an investment," he said.
Instead of investing in financials, he recommended buying index-linked bonds and said commodities are still a good place to park cash.
"There's a great deal of value to be had in the commodities cycle, I do not believe that that cycle is over yet," McKinnon told CNBC.
He suggested buying the FTSE-100 index as a cheap way to invest in the cycle as it has a lot of oil and gas- related companies listed on it.
McKinnon pointed out that stocks are 20 percent cheaper than they were six months ago.
However, he warned that just because something has fallen in price, that does not make it "good value."