As volatile market trading whipsaws investors, sometimes it’s just better to sit on the sidelines and collect yields, said Karl Berger, senior wealth consultant and director at Cidel Asset Management.

“I don't feel like there's anything that a money manager can necessarily do at this point,” Berger said in a television interview Wednesday.

But he said staying on the sidelines isn’t necessarily a bad thing, when there’s money to be made with cash-like instruments offering yield.

“I will say the one thing that is nicer now than it was a year ago, if anybody was thinking about this sort of situation, is that there is a not insignificant yield available through cash and cash-alternatives or cash-equivalents,” Berger said.

“It's a little less painful sitting out or not doing anything, I think it's totally appropriate at this stage.”

Markets are gaining today after U.S. indices plunged on Tuesday, marking one of the biggest slides for the S&P 500 and Nasdaq since the early stages of the pandemic.

The S&P 500 finished 4.32 per cent lower on Tuesday, while the tech-heavy Nasdaq fell 5.16 per cent, which were both the largest declines since June 11, 2020.

Despite market swings, Berger said there are too many macro variables right now to take on a larger cash position and it’s too early to shift between equities and bonds.

“It's not a market where there's an obvious trade or there's an obvious thing to do and sometimes that just happens, and it's best to sit on the sidelines,” Berger said.