US Equities (^GSPC, ^DJI, ^IXIC) have begun to edge lower ahead of incoming inflation data in the form of Consumer Price Index (CPI) data. Previously, markets were on a run with the "Magnificent Seven" and bitcoin (BTC-USD) leading the charge.

BMO Capital Markets Chief Investment Strategist Brian Belski joins Yahoo Finance to give investors insight into how they should best position themselves ahead of a potential pullback.

While Belski views a pullback as "normal and healthy," he flags opportunities for investors to trim their tech shares: "You still want to maintain positions, but you want to trim here a bit. In this world of yes/no, right/left, green/red, it doesn't mean sell the stock it just means trim a little bit...So I think the tech stocks are kind of the consumer staples so use the pullback in Apple to add more. Apple (AAPL) and Microsoft (MSFT) are the kind of the consumer staple side of things, where really the growth is gonna be from Nvidia (NVDA) and AMD (AMD). But we do think that Google (GOOG, GOOGL) and Netflix (NFLX), too, from a communication services standpoint remain very, very strong in terms of their growth trajectories, but I think the pullback and weakness in Google is a longer-term buying opportunity as well."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

[AUDIO LOGO]

BRAD SMITH: Well, good morning. The S&P 500 and the NASDAQ both recently setting new record highs to kick off the month of March. But after choppy trading in recent months and sessions here, I should say, correction concerns are emerging to break down how investors might want to position themselves ahead of a potential pullback.

We have Brian Belski, BMO Capital Markets chief investment strategist. Brian, great to have you here with us this morning. Always looking swagged out as always.

[LAUGHS]

Brian, first and foremost, when we think about what this setup looks like going into the economic data this week, and then, of course, yeah, I guess I'll say it, next earnings season, as we're kind of rounding out this first quarter of the year with just a few weeks left.

BRIAN BELSKI: Thank you so much for having us. Humbled as always. And good morning Yahoo! You know, I think people are so focused on this term momentum. And if I hear momentum one more time-- this little momentum, market momentum-- the thing that we have I think the most concern about is there's so many people have been late to the party in terms of being bullish, becoming bullish.

And whenever the market is chasing, whenever most market participants, meaning portfolio managers or strategists, or economists all of a sudden turn bullish, that has us worried.

And then the icing on the cake is the big bull on the cover of Barron's over the weekend. That typically historically is not a good sign that everyone is kind of chasing things now.

So given the fact that earnings were good, and earnings from our perspective are holding the market where they are actually in terms of where the market is, we do think that prices are a little bit ahead of themselves. People probably are not customary to hear that from us, meaning that we're basically labeled as perma bulls all the time.

But we really believe that the market could see a bit of a pullback, which would be very normal and very healthy. And then we kind of reset for the end of the year. And we do think we'll see continued new highs the second half of the year.

SEANA SMITH: Brian, it's good to see you. So then what do investors do if they have exposure to the Mag Seven? Is it just a wait and see type of scenario? Or should they be looking to reduce some of their positions?

BRIAN BELSKI: Well, we've had-- Seana, nice to see you and hear from you. We have the very good fortune of running portfolios for BMO Wealth Management both in Canada and the United States. And we've taken some off the table in terms of some of those positions. And we published about this 10 days ago.

For instance, we're going to take a little-- we did take a little bit off of NVIDIA just because we've owned the stock for seven years. And the stock has had a heck of a run. And we were a little bit more overweight than we wanted to be. And this is kind of classic portfolio management, where you still want to maintain positions.

But you want to trim here a little bit. This is in this world of yes, no, right, left, green, red, it doesn't mean sell the stock. It just means trim a little bit. And I think that's the kind of posture that most investors should be from a longer term perspective, to answer your question.

I think the tech stocks are the consumer staples now. So use the pullback in Apple to add more. Apple and Microsoft are kind of the consumer staples side of things, where really the growth is going to be from NVIDIA. Let's call it for lack of-- and AMD.

But we do think that Google and Netflix too from a communication services standpoint remain very, very strong in terms of their growth trajectories. And I think the pullback in weakness in Google is a longer term buying opportunity as well.