Financial markets appear vulnerable to what could be an extreme move in either direction, according to Paul Gambles, co-founder of investment advisory firm MBMG Group.
As a result, Gambles said investors should consider sitting on the sidelines and build up their cash positions significantly.
His comments come as market participants remain cautious given a flurry of risks on the horizon. These include fears of rising inflation, persistent concerns about the economic outlook amid the ongoing coronavirus pandemic, supply shortages and valuation concerns.
Some investors are also wary of the possible implications of China’s indebted property firm Evergrande, which is on the brink of default.
“Our advice is just be a little bit cautious. We think that the market is very finely poised waiting for what potentially could be a very, very big move,” Gambles told CNBC’s “Squawk Box Europe” on Friday.
“We’ve got no idea which direction that could be;…