Still, Auth said, the market will end the year higher, with the S&P 500 hitting 2,350.
"We think this is one of these years in the U.S. that is going to be pretty back-half loaded," he said.
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Jeff Hussey, global chief investment officer at Russell Investments, also wouldn't be surprised by a pullback of more than 5 percent.
He said because of the strong dollar, record-high profit margins and oil prices, which he thinks will start to drag on the corporate sector, Russell Investments has been underweight U.S. equities within its global portfolio since December.
He's emphasizing Europe.
"The sentiment there is pretty bad, the valuations are cheaper and the ECB continues to stimulate. I think you don't want to fight the central bankers anymore," Hussey said.
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Within the U.S., he would stick with a more defensive portfolio and sectors like banks and technology. He'd stay away from yield-oriented sectors like utilities and REITs.
"We are positioning portfolios for a rate rise," Hussey said.
Auth still thinks the U.S. is the place to be.
He likes names like Dominion Resources, Procter & Gamble and Alaska Air.
"Those are all … domestic companies with interest rate sensitivity to them because we do think yields are heading considerably lower from here," he said. "We like the defensives here and we think they've even got some legs beyond that."
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If the market does pullback, Auth said, he'd get more aggressive on cyclical names because that's where the real value is in the market longer term. However, he added, those stocks are now overextended.
DISCLOSURES: Auth oversees the Federated equity team, which has Dominion Resources, Procter & Gamble and Alaska Air in various portfolios.