The stock market has been hitting new record highs recently, with the lifting to another intraday high Wednesday. Yet low volume and low volatility have ruled the market recently and that has some investors wondering how to put their money to work.
"In this low volatility environment, investors should extend their time horizon, expect stocks to be higher a year from now, and buy on the dips," said Erik Ristuben, chief investment strategist at Russell Investors.
He thinks it will be a tough year for fixed income, but likes equities—particularly cyclical equities. Just be sure to have a balanced portfolio.
"We overweight cyclical sectors like consumer discretionary and financials," Ristuben told CNBC's "Power Lunch."
"We balance that with an overweight to health care, which is more of a defensive sector."
Be sure to keep an eye out for an opportunity to harvest the gains, he added.
Kevin Caron, portfolio manager at Washington Crossing Advisors, thinks this is a good time for investors to be rebalancing their portfolios because at some point volatility will return.
"You want to be fixing the roof in the portfolio when the sun is shining," he said in an interview on "Power Lunch."
He thinks the low volume and low volatility reflects the fact that investors are complacent.
"Investors are very confident," he said. "Investors are not seeing a lot of risk out there … You just want to be careful because prices can move a little bit further away from an intrinsic value."
Caron would look for buying opportunities in energy and eventually in emerging markets, like Latin America. However, he would stick to U.S. stocks until interest rates normalize and there is better news out of China.
—By CNBC's Michelle Fox. CNBC's Jennet Chin contributed to this report.