Markets Overheated by 'Bernanke's Totally Misguided Policy': Strategist

The CBOE Market Volatility Index (VIX) edged upward Monday. With a new year, rising tensions on the Korean peninsula and global debt fears, should you shift your portfolio allocations? Julian Pendock, partner at Senhouse Capital, says to hold firm.

"Everyone talks about the 'Santa rally,' and things go up and down" typically this time of the year, Pendock told CNBC.

But he believes the fast trades are misguided, as the volatility is essentially illusory, driven by the season's "very small amounts of volume."

Therefore, "I don't believe that people should be shifting their views of the world based on a few thin days trading as you lead up to Christmas," he declared.

Pendock also believes investors are misreading the global macro picture:

"The emerging markets are worried about the capital inflows, the hot money, part of which is due to [Federal Reserve Chairman Ben] Bernanke's totally misguided policy of quantitative easing, which creates no jobs at home, but just hot flows into the kind of asset classes which actually have a negative impact at home, like...the price of gas, etc."

Pendock advised investors to prep for "the big story next year." Watch the video for Pendock's outlook.

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Disclosure information was not available for Pendock or his company.