BofA's Savita Subramanian predicts that the year ahead will be marked by unexpected market fluctuations.

Investors should proceed with caution, according to BofA Securities’ Savita Subramanian.

Despite a promising start to February, she predicted on CNBC's "Fast Money" that a messy sideways market is imminent.

The U.S. head of equity and quantitative research at the firm stated on Tuesday that this year will be characterized by volatility, and that cash yields, currently at zero, are expected to increase to around 2% by the end of the year.

Wall Street is currently experiencing a three-day winning streak, following a challenging January.

Subramanian stated that he believes it is not the right time to purchase the S&P 500 in bulk, as he predicts that the index will not generate impressive returns this year.

According to a CNBC market strategist survey, Subramanian has the second lowest S&P 500 price target on the Street. Her target is 4,600, which implies a 1% loss from Tuesday's close and about a 5% drop from the index's all-time high.

She stated that by the end of the year, they would achieve their target several times and experience a significant market shift.

And, Subramanian believes the Fed won’t come to the rescue.

Real inflation is now on the horizon, and we must accept that asset inflation may have passed its peak, she remarked.

Subramanian predicts that the Federal Reserve's rate hikes will cause significant pain for popular market areas, as per BofA's economic team's forecast of seven rate increases this year.

Subramanian stated that he believes the market is not accurately valuing certain stocks, particularly those with longer growth durations, in the context of rising discount rates. He believes this could lead to problems for the S&P 500 index, as these stocks make up a significant portion of its weight.

Subramanian advised investors to steer clear of large-cap technology and growth stocks that performed well during the period of abundant capital and no earnings. Instead, he recommended seeking out high-quality stocks that are trading at lower prices.

According to Subramanian, corporations and consumers are currently holding more cash than they did in 2008 and 2009. This could create a better environment for cash-rich corporates.

On Tuesday, the S&P 500 group that performed the best was Subramanian's.

It still provides more free cash flow than other inflation protection proxies, as she stated.

She also likes and groups including and .

Subramanian stated that his mantra for the year is to utilize volatility as a chance to purchase high-quality, free cash flow yielders.