Dan Niles named cash as a top pick for the first time since 2022, when the start of the Federal Reserve's aggressive rate hiking campaign spurred a market drop. This time, however, with inflation running at 2.5% to 3%, he expects cash could be a good place to hide out. "The last time I picked cash was in 2022 and the market ended up going down 19%," Niles told CNBC's " Squawk Box " on Monday. "So, we'll see how this year turns out.
"That's why this year, it's like one of the widest range of outcomes I can think of — and I think it really hinges on the path of inflation in terms of whether that multiple can hold or it contracts by 20% to 30%." Despite a December slide, the S & P 500 posted its second consecutive year with a gain of more than 20% for 2024. The broad market index also reached record highs, breaking above 6,000 for the first time.