Stocks have been roiled in recent weeks, with markets around the world seeing an extended sell-off to start the year. In the U.S., major indexes have already given up all fourth-quarter gains in the first trading days of the year.

Because of the increased volatility, portfolio manager Chad Morganlander said his firm, Washington Crossing Advisors of Stifel Nicolaus, has been increasing cash exposure over the last three months.

"It is an asset class and you should utilize it in an environment like this, where global growth is decelerating at a rapid pace as well as commodities markets across the board are also hitting lower lows," Morganlander said Monday on CNBC's "Trading Nation."

In one of his 2016 predictions, Blackstone investor Byron Wien also noted that investors will resort to cash amid global market turmoil.

Allocation to U.S. equities has fallen to an eight-year low, with investors underweight the asset class for 10-straight months, according to the most recent Bank of America Merrill Lynch Global Fund Manager Survey. The survey also found that global average cash balance increased to 5.2 percent from 4.9 percent in December.