Protecting your portfolio from risks associated with President-elect Trump's tariff plan.

John Davi, a money manager, is preparing for difficulties related to President-elect Donald Trump's tariff plan.

Davi expressed concern that the new administration's policies might lead to inflation, so he believes it is crucial to make wise investment choices.

This week, the CEO of Astoria Portfolio Advisors stated on CNBC's "ETF Edge" that small-cap industrials are a better investment than large-cap industrials.

As the firm's chief investment officer, Davi anticipates that the red sweep will propel a pro-growth, pro-domestic policy agenda, which will advantage small caps.

The small-cap stock index has risen by approximately 4% since the presidential election, as agreed upon by Wall Street.

Despite the tariff risks, Davi, whose firm manages $1.9 billion in assets, prefers to remain domestic.

""Davi believes that we should focus on being more weighted in the U.S. until the midterms, as we have two years where Trump can control a lot of the narrative," he added."

Due to the challenges tied to the growing budget deficit, Davi plans to avoid fixed income.

"Be careful if you own bonds for sure," said Davi.

The stock market has increased by 3% since the election, as of Friday's closing.